Aurora Q2 2022 Earnings Report
Key Takeaways
Aurora Innovation reported a strong second quarter, marked by technological advancements including the launch of their Fault Management System and the Beta 3.0 release of the Aurora Driver. The company also expanded commercial operations with FedEx, Werner, and Schneider, and progressed with OEM partners on driverless platforms. Collaboration revenue from Toyota was $21 million. The company ended the quarter with $1.4 billion in cash and short-term investments.
Launched and demonstrated the Fault Management System ahead of schedule.
Released Aurora Driver Beta 3.0 with improved driving capabilities.
Expanded commercial operations with FedEx and launched new pilots with Werner and Schneider.
Progressed with OEM partners on their respective driverless platforms.
Aurora
Aurora
Forward Guidance
Aurora expects to focus on releasing remaining capabilities for the Aurora Driver on launch lanes for the balance of 2022 and the first quarter of 2023, with the Aurora Driver expected to be feature complete by the end of the first quarter of 2023. They also anticipate the delivery of scalable, autonomy-enabled truck platforms in the first half of 2024 and aim for a scalable trucking product by the end of 2024.
Positive Outlook
- Aurora Driver expected to be feature complete by the end of Q1 2023.
- Focus on validation and compilation of evidence for commercial launch safety case.
- Plan to begin sharing a quantified measure of the Aurora Driver’s autonomy performance quarterly.
- Delivery of scalable, autonomy-enabled truck platforms expected in the first half of 2024.
- Aiming for a scalable trucking product by the end of 2024.
Challenges Ahead
- Delivery of scalable, autonomy-enabled truck platforms is later than originally expected due to supply chain constraints.
- Market capitalization declined below the carrying value of net assets, triggering a $1 billion non-cash reduction in the carrying value of goodwill.
- Focusing capital on the commercialization of Aurora Horizon may delay Aurora Connect.
- Expected cash runway extends to mid-2024, indicating a need for further funding.
- Uncertainties around achieving milestones and potential opportunities with partners and pilot customers.