Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aurora Innovation Inc (AUR, Financial) has completed a successful capital raise, adding nearly $0.5 billion to its balance sheet, extending its runway well into 2026.
- The company has made significant progress in its safety case for the Dallas to Houston launch lane, with the Autonomy Readiness Measure (ARM) reaching 97%.
- Aurora Innovation Inc (AUR) has signed another launch customer, fully contracting its expected launch capacity.
- The Aurora Driver's perception system is nearly complete, with over 400 modes validated, showcasing its ability to handle complex and dangerous scenarios.
- Aurora Innovation Inc (AUR) has strong partnerships with major carriers and OEMs, including Volvo and PACCAR, and is making progress on its vehicle programs.
Negative Points
- The commercial launch has been delayed to April 2025, which is modestly later than initially intended.
- There are still remaining validation tasks related to surface street driving and construction zones that need to be completed before the commercial launch.
- The market for autonomous trucking is currently down, affecting pricing, although Aurora Innovation Inc (AUR) aligns its pricing with market rates.
- The company is still in the pilot phase, with commercial operations not yet generating standard revenue.
- Aurora Innovation Inc (AUR) faces challenges in ensuring the Aurora Driver can handle the variability of construction sites, which has delayed some validation work.
Q & A Highlights
Q: Can you provide more detail on the remaining validation required for the commercial launch in April 2025, and how confident are you that this timeline won't change again?
A: Chris Urmson, Co-Founder, CEO & Chairman: We are excited about our progress and confident in our ability to launch. The delay is modest and consistent with our previous estimates. The remaining work involves surface street driving and construction elements. Our system handles these scenarios well, but we want to ensure high confidence before launch.
Q: Is the delay related to any issues with OEM partners or other external factors?
A: Chris Urmson, Co-Founder, CEO & Chairman: No, the delay is due to our internal execution. We have strong relationships with our OEM partners, and the work is focused on validating redundant systems in the vehicles.
Q: How does the technology adapt to new lanes, like the extension to Phoenix, and what is the expected timeline for scaling to new lanes?
A: Chris Urmson, Co-Founder, CEO & Chairman: Driving on freeways is similar across locations, so we expect rapid scaling. The second lane will require more work than subsequent lanes, but over time, the Aurora Driver will handle new lanes with minimal additional validation.
Q: Can you update us on the operational readiness of the supply chain, including sensors, compute, and OEM partners?
A: Chris Urmson, Co-Founder, CEO & Chairman: We have no parts constraints for the commercial launch. We have pre-purchased necessary components and continue to build relationships for future scaling. Our partnerships with Continental and Fibernet are progressing well.
Q: How is the pricing for 2025 bookings compared to market rates, and has it met your expectations?
A: David Maday, CFO: Pricing is generally in line with market rates, which are down slightly this year. We focus on building a strong business base and establishing footholds with partners, and we expect to benefit from more robust pricing as the market improves.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
