ACHR - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and thank you for attending today's Archer Aviation Second Quarter 2022 Conference Call. My name is Daniel, and I will be your moderator for today's call. [Operator Instructions]. I would now like to pass the conference over to our host, Andy Missan, Chief Legal Officer. Please proceed.

Andrew Missan

operator. you, Thank and review everyone, for us joining Good second thank quarter to Archer's XXXX today afternoon, you financial results. Andy My Archer is Missan, Legal Chief name Officer Aviation, Inc. the of Goldstein, the today CFO; on Tom COO. our Muniz, Mark us With and are Adam Mesler, our call our CEO; We posted QX detailing letter XXXX business and results a our to shareholder overview IR our financial website. an on our This available call be is archive being will recorded, website. and IR

making actual call, forward-looking would like to annual everyone or Securities in presented website. we website. Before on described shareholder certain Relations filings are XX-K, our this will Except on and report today's as included of Also or Relations any by these to and those in events. period forward-looking to Archer law, make note, that statements. to letter our required obligation such new be please forward-looking XX-Q non-GAAP uncertainties for actual Investor implied These we financial and the on and measures posted our the I disclaims begin, in basis. These results March on result financial revisions Exchange future other Factors to subject statements our SEC's call, statements. update that GAAP the are comparable remind measures materially statements are as are measures events Investor a forward-looking on non-GAAP or of uncertainties website Reconciliations Risk and quarterly XX, most directly a Commission to XXXX, information during from risks available our future differ on expressed the ended risks could with or Form the of the section cause

commentary to the up with then Adam? begin like over And questions. call the with will call to turn that, Goldstein. I'd open Adam to we'll We and

Adam Goldstein

Thanks, Andy.

today you to excited are with that share made. have progress the all continued We we

to commercialization company advancing chain manufacturing efforts. and development and in aircraft, we certification at infrastructure This We production produce be where launch of for kicking the also supply point our confidence point development the to efforts of our our by can are proof an actions commercial aircraft the inflection of our the and are needed off for and and seen the now markets includes the our out building operations. routes partners. prepare The initial

$XX to Maker have aircrafts. been of As believe we XXX to of develop chosen nothing with production complexity. I purpose outstanding. has because made payment from our it its the progress eVTOL the are remember since aircraft in a flight technical execution. development announced the be this operated aircrafts the Maker believe Airlines in for the such Maker test to confidence received can part today, kind maturity Its on working short in performance of in to we and agreement United in million and a of earlier its commercialization terms the our hover program of aircraft We their our aircraft ensure first been is has certify first program the vehicle the FAA. with have we development as of of summer the has purchase XXX in development last production reflects space, the shift United of The pre-delivery has our payment efforts. the pre-delivery time Airlines up engineering incredible flights of to in Maker aircraft. the cost-efficient and substantial X demonstrated we industry-leading The the been to advancements to excellence progress manner. XX tilt configuration, level important discussions can XX the aircraft to enabled manufactured It many goal be control to important progress will that of support balance focus has validated are an maintaining The and capabilities have our is right of decisions. team. software, of it can mass us aircraft certified, towards made production we configuration lowest passenger proven we the our key performance and XX possible year point that advancements X complexity has the for now key a and that an against our back-to-back have have the the have of design other we Maker aircraft, have made we that plus Archer's bed rapid where flight of is the perform of always at we while with aircraft mile pilot the It's

this of today, reveal I'm to the Given aircraft, name production Midnight. our shift excited

are PDR program this the review maintaining or certification speed, PDR. talent we characteristics on of truly exceptional. happy to was performance speed intended vehicle operating the the where preliminary well to The development of freeze around day-to-day You key review robust as cover from risk where operations we can design to the standpoint, commercial the It's another and payload FAA performance go-to-market payload, This completed activities. that milestone. Silhouette supporting we a of and ensuring are of rendering I'm the with XXX-plus aircraft. development Midnight a key to and is a majority our more unveil on week, business. employees are of economics with optimized in design letter, of requirements do and The program. is complexity point range not design on introducing for Archer around just elements Midnight the on lifecycle and any we Midnight teaser is see track the best plan range design extremely cause timing past at our in not or the The about near shareholder we of like future. PDR working yield team scale manufacturability. would the Midnight's it vast that process possible Today unnecessary and development certification the

aircraft building As are we also team. matured, development the our go-to-market has

have for and and that Urban Officer are key our We Infrastructure Chief Mobility Officer. Chief Growth X onboarded recently Operating efforts; our commercialization Air Tom as leaders to Anderson as

around As introduce Brian major will ensuring commercialization concept has Archer cities, in launching scaling career in in taking airline scale be from management, at He Global commercial Head as fleet scaling Development. experience infrastructure markets maintenance years and us Tom utilizing spent operational airline launching building the footprint our and across Brian his help expertise and developing Tom's of built jurisdictional only Archer physical has He deep necessary brings expanding footprint to aircraft our accordance is UAM Archer's to spent across the spanning JetBlue responsible their with build-out physical of the target of and Core and hundreds and guidelines. advances scaling for infrastructure effort the our all Midnight. responsible in operations, place. majority to for in world. operations business here so cities network but of including will growth, operation. is UAM key local not locations was and their markets. X do a how

update future shareholder we've to on more take to with a minutes you progress since forward our milestones to our February. on on highlighted key you sharing strategy looking the I want our against calls. in go-to-market letters details now are few We

Our Maker X milestones. Midnight XXXX milestone and and X milestones are focused There's on both Midnight. Maker

Maker the successfully full a and first milestone flight. to transition first milestone, is that complete Our is

to And is we with third that our with select milestone, Midnight is milestone The the finalized and issue agreeing compliance in our is fall. that second milestone on a ground the certification basis last means milestone, manufacturing paper established and FAA break also facility. of Midnight on GX initial is a the the and

Now let's take order. those in

Maker program, X and azimuth. hover X we we ago, test completed As our of flight the weeks announced first critical have phases

per are sometimes day. We times times multiple week regularly per many flying and

the for goal, production Means believe will increasing our speeds. closely test which evaluate continue to into on phase respect facilitate hovered remain goal. We are We system at to our later Maker's that Midnight fixed to our agreement to full during track aircraft. flight We we to of complete now flight With year. shifting second third program, its our achieve work Compliance this track on transition forward of on with remain we performance wing first the we FAA

commercialize successfully That's it why across other to in U.S. the we with have milestone manufacturing. at scale. XXXX on focused Midnight, We've collaboration to XXX sites is Stellantis. Finally, our manufacture over evaluated

COO, We has transitioned more the hand to this some are going our to later with share details to the Maker into this from on announce track on to progress how area Midnight program. you I'm insight our team further year. Muniz, it Tom over that, in to With

Thomas Muniz

point. completion we recently of Archer's progress in the truly very at quarter an are inflection I'm the about Adam. with and PDR, our successful Thanks, excited more second

requirements production been requirements. to We aircraft. the to the certification by work for of commercial our provided from as aircraft, production data and to requirements take design efficient a and This when in have and too due the time strategy become invaluable element demonstrator challenging it of is Our it has costly. building outset most key aircraft greater to design us on the and production to from aircraft was has getting our the far served set our X establishing Maker certification certainty reference changes point for technical more aircraft that FAA operations. to path knew because certification to strategy launching certification allowed start our capital requirements a development has day along before with the the has Maker, with was parallel and a developing better production

optimized flights. production line missions time the be This our operating complete while planned load Midnight, to and model. and passengers is throughput and able unload on commercial flights. to designed for between designed high Midnight to is key has designed bottom driver mobility air Our urban around minimal a operations. with charging aircraft, certification our of back-to-back been ground, Midnight the is

to a successfully PDR earlier completed this of for As our commercialization program, PDR This Midnight Midnight key of the for Adam is performance our some metrics of they're our why from major like and mentioned, team that important in and milestone I'd aircraft. any development the out share came week.

One payload, carry. most weight aircraft of of the the passengers that is the we can track metrics critical pilot, and baggage the

the an payload will our the Midnight have achieve expected the to it over it a performance up of from metric operating aircraft. other generating that is eVTOL, which important all to is X,XXX decisions per passengers design from of X be revenue of affect to weight model the believe payload payload industry-leading. we hardest This output flight. is as For because supports is pounds,

enabler commercial operations. We of to key output to are extremely be our PDR validated, that excited our is

the time charge Another a assuming metric it flight. XX-mile needed key has plane is minimum completed to the turnaround typical

charge on to ground will going with times prices showing to only such on us are and, metric Our our that fidelity operating to to of comparable aircraft to between direct turnaround our therefore, high also success throughput. ground-based flying our ridesharing passenger of us want fast land and is higher minutes targets, this options. at enable in our is needed the achieving operating costs. make XX critical The as even I on internal that our our the giving PDR model greater analysis also flights. ground has below touch confidence about costs to ability accessible This given these metric on or is aircraft facilitate

that we start our next aircraft year. as initial our arriving will progressing anticipate for and test initial parts PDR, will rate the aircraft at production supply beyond move later build We of an we Midnight as chain facility low well year. ramping this flight enter up the activities Midnight manufacturing As are

approximately couple Midnight and for for climate for to selection the of When chain, status recent site our it Midnight our sourcing are system A fabricate discussed We We've materials manufacturing of for before, examples on bill with and suppliers aerospace the our structural technology. suppliers. discussed components proven comes focused selected supply we Honeywell as of XX% track. of cost. which are FACC of selection, and to collaborating have already by from actuators we've remains on

as suppliers Mark to coming are to that, We it will over finalized months. for the over quarter. key the the I'll turn they financials to announce continue relationships discuss with With

Mark Mesler

This Tom. an time for is exciting Archer. Thanks,

our efforts. our and of line Midnight our key provided we of As into mature a as can turnaround you confidence both operating successful next its Midnight production commercialization business to model. achieve with that on This moves like enable our important share and those our phase from cost is Adam plan metrics and I'd Tom and aircraft X go-to-market with Archer assumptions in our strategy. time how for exit just costs, outlined, us our PDR of associated advances aircraft: the confidence the top briefly aircraft our development Range, business standpoint. PDR

the line. with top start Let's

UAM in One, like discussed just we we our revenue XX with payment the profiles pre-delivery of XXX aircraft of $XX to operation XX the model the with the U.S. has As target we direct our and network operators on around in aircraft. which drivers: in in the a have primary sale top And the the mission X United, million cities world received range. contract a past, mile have two, the

able has And confidence that greater believe validation ability provided an of Tom support the to Tom X based process greater XX-mile important to models that, as us us payload revenue can PDR, that both is be believe models. Midnight on a our predicated transport for a This we an is the As also following PDR than transport The Midnight's industry. Midnight our XX-minute pounds. given strongly discussed charge extremely these We discussed, metric on flight. be that a X to X data commercial supports passengers X,XXX as our the in of revenue will up plus for time will feasibility Midnight passengers. aircraft having pilot. approximate well

JFK, XX our basis. the a our Newark. less than means if to took on it should our Given in can can to Again, metric important time XX-minute high charging mile approximately more with to enabler maximize charge. Midnight target number this key on customer daily as aircraft flights a allow Manhattan the perform spend time a flights routes are very potential our of on for the is to metric that much longer LaGuardia we as for ground, range, such routes markets throughput, is and try aircraft which This also or transition from missions XX

was bill of our XX% been to to our that to build With materials, cost target aircraft. metric cost. suppliers we by continue critical aircraft has PER supported the Another Midnight's of approximately for Midnight's selected Midnight our track

cost important. think about hitting this we target As is unit economics, level very

have We we parameters rigor model, within is and a around stay target essential. while cost safety quality business ensuring maintaining

our to doing We are well on this. way

so At team's some our happy to providing CFO, and the specific target supported some drivers the the and we target business through detailed will unit very how revenue share the work model better point As can more top in that the I'm cost our with us about targets, aircraft future, our information drivers achieve elements getting and economics investors understand business level of of PDR line that. has key confidence assumptions around model. greater

in We offering same too are much transparency. to a and sensitive we so sharing at time while competitive the greater are space,

great in the to a and last we significant business. the implementing and technical operational I on As call, financial discussed enable team at making building and are processes to world-class parallel Archer, progress in finance accounting progress critical the

to decisions. help As functional leaders we commercialization entrenched is finance key and make our our our with accounting advance team efforts, data-driven

warrant 'XX $XX.X our on loss $XX incurred expenses build and $XX.X growth expenses QX We requisite our was the outlook operating and expenses expansion out our our million general operating On reasons stock-based non-GAAP were and expenses Stellantis operating range. stock-based sequential aircraft of $XX the of At estimates was former context, economics to our These our business. is as the co-CEO. also primarily the science we Non-GAAP let's sequentially of of burdened Maker issued capability support for exclude to that at of working total both low by the we compensation. million and and of quarter. GAAP We've programs aircraft million $XX.X at to the expected in warrants right and supply We sector. the disciplined and our Within because continue rigor company be warrant that turn helps scenarios overall production staff million $XX.X financial launch were to cash one for million decision of equipment by demonstrator potential to to the $XXX.X with production relative our cash fully signed of separation-related included which $XX.X chain compensation of that I Working business ensure used infrastructure $X.X our people allocate full informed primarily be and of well-capitalized reviewing team and our a in installed to by agreements invested engineering we which to lower manner. we and cash capital are most administrative the for financial key for QX for capital cities a million, be loss with to total stress must which of precious of more the the hired a midpoint increased million, programs. million driven QX million business increase the data-driven equivalents low-rate $XX.X part that the an continue supplier tracking Archer examples ensure quarter. both that We to performance companies in quarter our cases us very our cash ended team good is on and support a support Midnight $X.X and running balance having I our adjusted compensation, are to sheet. the balance the in of 'XX results of production in routes stock-based financial 'XX expenses, just targets. facility our scale cost parts burn very fiscally basis, the expenses continue to initial Non-GAAP in expenses mentioned. facility rate, million operating for data materials end of this EBITDA million, for with plan. Some initial and were and our and for as

at look let's 'XX spending. for our QX Finally, estimates

and an PDR, support our development in increased operating exited we've of total see stock-based spending million. expenses to operating bring GAAP on reflects spending of million million will approximately anticipate non-GAAP of per up aircraft to $XX non-returning We parts to plan. for million. that related expense our Now to million $XX materials $XX compensation expenses Midnight This expected of and Midnight suppliers uptick $XXX we and costs $XX and total warrant

be operating evidenced for target the model. will million to payment received we see Customers number production that well the of technical certification Archer's active website We calendar over engaging do United. eVTOL we has course we all primary the on continues as In letter. can Midnight from in a detailed function. financial as laser-focused and months. PDR The coming teachings by Finally, what educate to progress phase education gate and focuses over enable further sector starting that provided will of is series respect topics exiting investors, commercialization with of key this on pre-delivery and available business the very goals. to be to our of and conferences, advance to for data many of milestone as are stakeholders we as plan and our capabilities we a cost on meeting the going industry. with Archer the community us Further summary, shareholder attending our critical coming our and the our Relations be continues say confidence with quarters we hold are to doing on aircraft. Investor to financial our the Successfully that one efforts the of $XX well the validate variables Investor

disciplined very let's We continue informed operator, for that, in up of manner. all open this it a With to execute financially questions. and

Operator

Instructions]. [Operator

Edison from of comes Yu question first Deutsche Bank. The

Edison Yu

questions. the recent X have Congratulations milestones. on I

roadmap United terms provide was of payments. you of what First associated prepayments. with in on that? milestones if wondering some the could future will pre-delivery of be also And I sort kind

Adam Goldstein

Edison, this is Adam.

the $XX that building been as in that And an because million And other eVTOL team and XXX that I they have important really in XXXX. thing platform confidence you've our securing think their aircraft. did really really gave we've the this the here PDR. industry, just they're that was so us that But technology spot maturity United they the since of for of deposit is here seen

limited there's the of so in going early years supply market. the to extremely And be eVTOL

actually not that have So only you in the buy that it's one will operate if company be and to really belief my Archer year. aircraft XXXX in of, that can

given aircraft, limited Archer be be operating going supply. And also it's so number in of to terms will of

be really go-to-market So I the the think, strategy. important to first aircraft, XXX are for going

evaluating routes. are scenarios, different different different markets, Now we also launch launch

So early really map were maintenance and in working we we have go-to-market where Advisory eVTOL those start out And in April, back to here on allowed joint matters. of of the -- formed this to some operational has Committee, us matters our strategy. concepts

mature will further, planes you more ultimately as online. around So into announcements that and areas that to different will the will hear updates starts additional launch we and come

think I I'll how on work. that. to come deposits more Mark to So turn the to and payments about talk over it

Mark Mesler

payment look of can future and traditional you on terms. milestones the think payment aerospace I at deposits any sort

haven't be but probably with and those that aircraft. of deploying We assume you the then disclosed manufacturing they'd could ultimately aligned publicly,

it's So to market. typical I what pretty you probably in think the see of going be

Edison Yu

any can test like upgrades wanted I key either to been that you've you or doing, up on question, takeaways PDR? ramping the ask sort Do potential you improvements maybe have kind also of about based flights. and learnings obviously, on of Second post test share

Thomas Muniz

is Hey, Edison. This Tom.

learn of we've of as regard to right? decisions the about that early product. forward Just the Maker context, of that answering into made in as been aircraft broader we're to the kind some always our strategy part that possible carrying has key with

lot really those specifically elements we flying can to key a week. validate of thing couple pellet Maker flight biggest of times is per as We've past designed us X tests been over the Adam So said, data get to XX aircraft the the many the use months, each itself configuration per with tilt testing of configuration. of with that And doing there system. is

broader and the control aerodynamic system well flight the So the features. as vehicle, other flight model control for laws as

the design. have get recently. that has maturing as lessons PDR us essentially, moving And those be possible. confidence commercialization been given through Midnight our able with have we low said, you with we And of great certification forward high learned incorporated. that very as we'll All our And completed confidence risk and of to as now data all

Edison Yu

could more, just a in if high-level sneak at one Do I very question. consumer all worry And about you adoption.

I all world big sort concern about do that kind way high among we kind we've of what looking a think that operate. this going kind in How we're this sort UAM at, look, is think the -- investors you're that is, of of heard you level? at infrastructure, some the changes to of a of just need

Adam Goldstein

is Adam. This

X one the think to going And kind put order the perspectives to of that. of is I So will kind consumers second the take in look that's one do vehicles? want at. infrastructure then to the is, be And necessary there's first in place to

airport is going from is go-to-market we strategies So early those of think be I call what city centers, to one routes. flying interesting the what's to are trunk that and

so the And we already is take routes seen we've demand that there to for ride people share. as these know

lifts of are of routes. for the substantial world the So amounts demand showing these

We lift. for example same the also of a pay to there's using willingness know

will convenience cool think of to the be demand I vehicles a I the lot adopters of to have of the there. early market. the attracted be factor so top And product gives these think And on will

brand high early. lot to that you I a confidence vehicle adopt want that a for add itself, If which the pretty to users of United of degree the will have you think then there like be you that products stands a and safety, take

second of of The relates infrastructure. really kind question phase the to

use drives seen products is what of And time over so think I really of case products. demand the we've

is infrastructure certainly And so very be to yes, challenging. going

going WeWork has definitely as the estate previously real stand gentleman that's Development of obviously amount just to think up through X the challenges Head years. of who Global in to incredible one recent to much be a past He hired battle WeWork for most We recently an as the of tricks. had Brian at I history. Bernhard, the named was

to demand start right stand am that And I really it with last likely the that comment optimistic be be amount stood for is, and to the so infrastructure very early with that and see able My the around right airports. of gets product will that out there the we'll on we infrastructure. up up will team get

And big dynamic. to airport and where a in having so walk customer you to yourself. the when it's like in It's you like different with if conversation United, by different United, in a you a walk a partner walk talk than

to And that think I so market to really a gives unique us advantage here. get

Operator

question of next comes from Raymond The James. Syth Savi

Savi Syth

curious clear On vice-versa. of side, you're suppliers, see what what you your place? to these the them as commitments I'm supplier trying type I was understand agreements in putting And to are and

Thomas Muniz

this Yes, hello, Savi, Tom. is

about think So is we supplier context way first the the the agreements of essentially. supply our in of securing several years

in partnering to material. with going published that focused our to to that's rates we've guidance Strategically, because some on our strategy delivering successful of companies risk minimize have part to the proven up agreements of aerospace of previous that long-term records support market. negotiating hardware we're certified production So track we're broader

engineering some we that, the really time market base to supply fund But products get to partner us. materials lines to of found of on in for we and nonrecurring support that tracking what the to and our commitments are is have part with partners aircraft development who As the to. willing do ultimately us these to great drive we're

pleased been chain. very progress the So on we've supply with

Savi Syth

I future the things in advisory maybe committee talked is you those call, the And more calls the kind of I confidence locations ask any on of days, maintenance was able from mentioned the while about looking with Adam know that terms Midnight, Midnight you do. being thinking? I of early talk of earnings that can your last targeting. learnings -- still might are and kind different in about Have it's But conversations -- and gained if joint have about at, you're you had you've the earlier what wondering if new to maybe operations you

Adam Goldstein

This is Adam.

investor an go-to-market I a pretty relationship the buying to -- or with time us operational of that's maintenance through have United, different a we matters helping planes. special. and think, and dedicated They've think strategies. just it's not So They're lot group strategies

say probably talking included, taught United day probably at myself basis. would basis, every I So is on other Archer somebody to not has weekly if

with They've pretty And in we're that. helpful so very them. deeply been integrated doing

iterative like you So have, necessarily there's a a an that conversations. process. big not lot aha but It's of it's moment

way in each different United kind some for of we so many the serviced the thinking world we're help and bring can us going our to and future strategies the conversation. kind conversation. to about obviously unique So bring of work to guide years, something that many, and the operated something is different Archer they the to making, decisions also vehicles of but allows in

discussions led identification our and for the So United strategies. -- really in of go-to-market the routes locations have to with

And deposits have the starting are announced that to specific XXX around conversations we against to are -- very so routes. the aircraft relating we high-level we're

those so and, are specific against And vehicles I routes think, go-to-market very very specific considered being attractive cities.

And more on we maturing to we'll United. that with details give to as continue that. start so are And that, mature here we strategy

Savi Syth

your for you Can something that get maintenance Archer to partners the Adam, would I plan clarify some do that of is is to do? the support or

Adam Goldstein

evaluating different there. So strategies we're

of I with but there, full think little spoken of that. And different so a have early kind we the bit to several give it's understanding parties

Operator

The of next question David Zazula from Please proceed. is Barclays.

David Zazula

all can time, for And systems well range really of Midnight You pounds. X,XXX some of the that the as you're ultimately, planned life. end with you helpful operating the similarly, is turned battery is for these that as the metrics on planning at that confirm out board charge XXX-mile on XX-minute flight

in this Some industry. numbers get around thrown

sure So I specific in we're language. just same make the talking to want

Adam Goldstein

to turn Tom. I'll it This I'll open an you is over give and Adam.

going vehicle. design we specific have through the of So start to really about PDR, getting really the

drilling. So actually suppliers. sign just We're not theoretical, it's not to it's starting up

level the so very And fidelity into the of goes that engineering high. is

so vehicle And the very be. a payload have understanding and range of of think speed we is where to good going we the

designing core the mission, plus always pilot to where passengers. so that main goal nominal is XX- rapid around. XX-mile X we that's talks And a And which carry about can Archer what we've a mission our back-to-back been is

into mission expect margin as around go with degree that But is payload the that X,XXX that vehicle it. target certification of that a the pounds. We pounds through so grow effort. built we with have X,XXX And to the also we we do comes

an has that. top pounds several we on pounds margin hundred X,XXX that of So of additional put that

comfortable going will certified I very land we has believe vehicle feel a pounds that of we also that's industry-leading. payload. X,XXX So with be that to

the of look back so you in aviation that's so critical of And the is reason if why when important history, comes us to to it economic drivers payload is one viability. been

establishing to business. long-term a think we passengers so ability to carry And least the X profitable core is do at

vehicle about to of And back-to-back. missions As been really the it that have XX Midnight can always really we've relates the kind been designed numbers upwards on missions around many do. to has you the thought range, how back-to-back of focused do

because execution that model necessarily mean every that don't we Now perfect would single flight.

different types and you and weather come people so about of being loading of that. take knockdown unloading vehicle the passengers delays around is if what and designed late But sort concept the And can can all of into being just around. that's think some operations number that you and of

able that want XX all vehicle back-to-back longer XX to miles to XX the don't ground to on of charging rapid that a you to So do missions the design in because time. than miles, to you go sit can order be need

that numbers lot changed So different around can on a you assumptions be have. of these based

faster, you expense at just for using that charge but can life So the comes example, battery your cycles faster. up of

we a of is turn minutes period the And our charging lower thought a operations. talk -- a more of to And the typical the looked it a peak where then rate over higher XX the slower range at vehicle. charging XX concept so during and during Tom time throughout and a about might bit of have operations charge operations day day at I'll what we've done a to where between and typical at be a day the of about of we little rate

Thomas Muniz

vehicle as as it described. don't use just really cost I've operating much the a direct think I real-world that summarized you range case design We the for well. the as of and think target maximum

care numbers into make maximum vehicle between that XX The really time, day. to by the we up is we true it's money theoretical is flights reality, context, per what then this right? the selling we many of per put can tickets turnaround battery, get driver flights as a people and lets could there. that amount, miles up as can the day, mention way day. charge in to as us the to That's many flying vehicle the as times So vehicle it per time flights tens brand-new While fast more with putting in about do XXX of fly

really few All go in high targets. in why operating to our we that's confidence ride are down market we'll shares, able bucks that of per to into which our have comparable actually on we're we earlier, that coming passenger model. ticket be than prices better with existing that right, And direct touched costs, boils to internal

David Zazula

Tom, having the about can being program a transition testing little assumptions far you're and to yet? come so talk flight you able a to it's bit comfortable forward range discuss without why as

Thomas Muniz

Absolutely. Sure,

completed So second as phase Adam touched we the test on on Maker earlier, flight campaign. of our

to that tests, utilization design landing important robustness in of uptime. high that's series of validated the the piece again, of and another, So capabilities essentially cross-win we because

that So to robust, sideways up to demonstrated backwards very limits. crosswind up the been We've we've knots. vehicle flying high XX is

of the driver that that's validates really as comes primary the flight Midnight. aircraft well into Maker. that coming to though, system the forward control not validating it as range were So a When configuration on

lot as the testing et in goes well validation will very get drag into of support we Midnight the estimating is of our terms confidence on We the of for extensive cell aerodynamic more vehicle, aircraft the data wind-tunnel our which ground But gather as testing. in tests, battery a to where really cetera. both model,

testing some So wind we've completed tunnel already.

models to in final coming wind-tunnel are high-fidelity currently launch test our our months. final campaign We the building

to in in of good. maturity our the All the where us validation come looking really give data are more will we're even all, But design, of that together in all estimates. we performance

Adam Goldstein

David, this Adam. And is

here. in chiming of kind Just

the going people I that's many And I how much how of think viability that do these will going you cost vehicles. payload, be can range industry to of be speed will think economic ultimately and the judged to the and is that. fast way how to move, it be meaning mix a

about ultimately so that's so we're what have what excited PDR solving here, so what and the that's the results we're for. And that's exciting. of And been

our we very felt advancement commercialization. thinking of about why So comfortable the that's

that's cash program now of think very a the what to I excited a got about and cash this okay, deposit, a point warrants deposit. significant the United where maturity they said, deposit,

kind highest way do you think this. the that And farthest so flying about so And not just can It's then fastest, plane, build build we of flying, you for the much can you vehicle about make that's viable? mission? how the a economically

David Zazula

in about a on up for based guess of United, the filings I that, disclosed clean your tidy stake you've is unchanged? in agreement with on just extension United Mark, existing Archer

Mark Mesler

I last repeat Could missed This is Mark. part. you the that?

David Zazula

United's ownership? from their disclosed, you've stake what in unchanged previously Archer is

Mark Mesler

Yes, that's correct.

Operator

next Fitzgerald. of The comes question from Sheppard Cantor Andres

Andres Sheppard

Congrats on little the you've maybe the announcement that just wanted $XX today guess quarter. a I more understand. I trying million I'm get on with to clarity to made United.

capital? is not additional Just do the now? there or I will R&D, fund timing. some as to the this the third it why to you this FAA sense And Is So eventually sorry, using maybe guess, commercialization and of anticipate to what revenue? us give Why CapEx, maybe that where closer And manufacturing? recognized part as is strategy be certification?

Adam Goldstein

start Andres, now, I'll to with Adam. Mark. then this over is why the and I'll turn it

the of Archer specifically. has that category, but just my this to back really has to think earlier around I do eVTOL United also really some comments confidence So the with

supply. so think of But big of then X those driver really big limited have is I the of this. the And drivers third are kind we

to do levels, we we so build that's we're And manufacturing back planes our what to XXXX, and go still. said you if would stated XXX in on track

have to operating engaged of has then seen We've Archer other Archer and also in vehicles, lots going many have be different the is lot we with been There and also orders out United. of announcements a industry. groups. around so excitement there, And been

I concept you we're with of Archer balance see the we're see think could you United, a is doing it here think so the matured see then there specific and test, interesting you it can lot PDR. to it operations. in could starting has the that where of And routes about this the work across Maker-flight And program, in

And their to for so they it as to corporate XXXX. will sure sponsor to planes here them strong well. to to get And made lock a make as spot sense in in access commit Archer

think it's big doing I that And a of signal so them now.

over it turn I'll So to Mark.

Mark Mesler

commercial look at and because should So is standard it is, arrangement. what it again, a this I you think is

question, a turn contract delivery or way the that's yes, a that simplistic of deposit So this as your deposit. hang upon most And it. That's planes, think balance on up this about structured. the to eventually prepayment a right? is our will is how sheet So to cash to would the cash revenue

et purposes, talking It going go all for cash go on Midnight for us to will for terms towards factory, been and advancement we've or commercialization. of new of of cetera, mean, CapEx the corporate In the about use, is which general towards et I this things R&D be is cetera.

Andres Sheppard

certification are, is consolidating the regards which macro the FAA's certification in Maybe as certification the in process of for or the of question better to we -- in lot my There's industry than a stringent. follow-up aware conversations you're more been and Adam. about for somewhat possibility Europe, delivered mirroring

the would thoughts. if impact, they X of consolidation any, place? XX I degree your what I'm timeline? see to your so, the to think love And you wondering I might get that requirements. have Do on taking have negative if safety certification -- that

Adam Goldstein

the levels as So the with then we And a with speaking speaking the we're daily or at FAA the level basis. highest are engineering daily FAA well. at on almost

the been active market. the way had FAA will a up And the so I with to top leading reassured the administrator have position have that eVTOL to conversations the in confidence and all bringing take

their today on FAA as of from that the And do eVTOL and But stance me back chime to bringing see standards. don't them to Tom not behalf away tells I'll that on see in existing anything adopting let well. I going so I is market,

Thomas Muniz

Yes.

than we administer that no expect last agree designing changes few obviously that since of B should Just can the to just this even we've reiterated, the what requirements A had to. months, add with reconfirmation that's thing error to I could I to Adam say change, what said, already what over seen, is we been is, XXXX

our expect essentially issue at make XXXX GX to have So just paper, we administrative to don't change change even anything to they pointing an B.

so And we changes. document, no that in seen have

right that just on the confirmation we're path. So further

Operator

next The of JPMorgan. line comes [Operator Instructions]. from question of Bill Peterson the

Mahima Kakani

on Bill is for Kakani Mahima This Peterson.

Just talking on the deposit again. United

on network? also ahead potentially elaborate between and you plan operations? as And ahead direct United As look production, sales well then latest of head this can line passenger as of at does the you put the your your on the Archer's mix to the thinking network

Adam Goldstein

This is Adam.

capital a to that said, So is network. the a always UAM to the Archer way path is to and going good require to long-term the do business. And fund long-term selling goal build has planes is help

be we said our and we've be as of will of production case to so date, will think production, our used. sold base And XX% XX% our

And so United is a launch great partner. go-to-market

has to But the XXXX. markets. centers evaluating the the get scenarios with is I in to with get working We lift all infrastructure there. But doing routes city I and understand that at a easier. terms we're up in market big best to these think think, core set partners, there goal that helps so large different this And together again, way this finding from of get make on trunk to with airports here eVTOL to considerably real do operational

of Archer, it's airports talk some speaking the of that's strategies of theme past I at that and been with with. of to had we're municipalities not to also And some just that the sort everybody think So at we've advancement over commercialization the with been United feeling. not exciting. our of quarter the internally either, it's this is around local the just the what feeling is really it's we've kind like is starting that And but

what's this so at where there's all we kind with think And excited everybody feel. are to gotten that of today. we're And that's momentum starting I

Mahima Kakani

on the I'll and between from difference batteries. current batteries Maybe just heard terms certification. touch of We a air there's cylindrical in that pouch

challenges certify then on And all bit So areas it the on as plan you what to see using regulators batteries types more are today you that convince is then that and well share little that the a on Archer risks today, batteries the and you the the the as you with? details safe? are need can of to ones key as

Thomas Muniz

is that. to This answer be happy I'll Tom.

we're want don't batteries exactly to commercially we But can manufactured reasons, what competitive that available what is I they're by disclose for off-the-shelf cells companies. say using. So well-established

reliability and that extremely the that up. data to So high with cells back come

approach and our higher ease energy, the there. reliability, So range performance has lower but strategy commercialization. safety much been taking terms much certification essentially higher of in we're and of That's and

accepted think designed we to the for certified, systems risks, an about of this, we terms In meet batteries, these FAA needs right? is DO-XXXA well-established to similarly way compliance has certification and that we've get requirements standard.

all it So just essentially, push are for And targets aircraft that about day. the we're nice on. FAA is in that this doing it's that's the achieve one worried our possible what and envelope trying to main the the because still we're things as make of of to of commercial the not easy and with the make can do really our all as thing about best we

Adam Goldstein

rapid the manufacturing. day. to is always did these what our we beginning, is lot reduce lot that, across see a efficient can an multiple to an is We've the I from everywhere, trips this which the XX back-to-back there Archer been just what made there, certification that to was and design around can path about mile can risk to reduce Adam, reduce a decisions we've And getting And of missions as the a per where has goal if you and of add said always around mass business then risk And risk find since of on our is to announcements. to commercialization. these market. aircraft we do case, XX

message that will all the think aircraft. I So of across be parts consistent

Operator

at this Thank There no registered are you. currently time. questions additional

will the remarks. for Adam back to CEO, Goldstein, over So I closing conference pass

Adam Goldstein

Thanks call. for attending quarter our second

realize you a success United in strong the of progress flight is to work share more -- we're Maker so our proof We about that day. track so advancing test and the I'm really the I it's points And of get why This campaign, the every Midnight excited to team PDR The you. results everyone the to opportunity. excited, the opportunity on efforts. have why wait our world. generational months. excited, vision. really are commercialization now come to does the the are really Airlines with transform commercial is details coming over to Thank see can't deposits Midnight

Archer Aviation (ACHR) 11 Aug 222022 Q2 Earnings call transcript