ACHR - Earnings call 3 2023 | Archer Aviation Inc.

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Operator

Good afternoon. Thank you for attending today's Archer Aviation Q3 2023 Financial Results Conference Call. My name is Cole, and I'll be the moderator for today's call. [Operator Instructions]I'd now like to turn the conference over to our host, Andy Missan. Please go ahead.

Andrew Missan

Operator. you, Thank and review everyone, results. for us joining Good third thank quarter to Archer's financial XXXX today afternoon, you operating and My Chief name Missan, of is Archer. Legal Officer Andy

today statements. differ Tom Muniz, cause uncertainties forward-looking COO.During and by call On forward-looking our be we that materially actual our contemplated Adam involve statements. the our and Mesler, may These today's Founder statements the from CFO; those CEO; are will Mark to making call, results Goldstein, and risks

this For these under refer our caption this will to future statements as on about undertake on letter both more Adam? our Risk to reconciliation obligation of discuss and measures. we over to make in and or GAAP based we our of website.And no turn forward-looking non-GAAP statements please I'd certain Adam. new a included shareholder information information call, is assumptions to uncertainties, result we and risks today, like these financial as Any to A SEC on now the the filings posted are call that of IR call Factors. measures update events.During non-GAAP GAAP

Adam Goldstein

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it Midnight taxis with flying that, along hand commercialization, to to that I'll to we're well as are major them pathway and work around about that over talk electric it's we cities is the the to and latest world Now same air Midnight. Tom bring goals the does, clear progress excited to have to market.With the Archer with

Thomas Muniz

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that to them facilities Archer's XX and airworthiness review past that full-credit require for the notable at get the which a the finalize to special through example discussion the [indiscernible] progress broad X tirelessly recent order a pivotal as process FAA's a in are changes recently group completed this of critical the would our Federal FAA the airworthiness transition give cusp spur which of that charging been to and Coasts my with whom criteria across us to across in the to the the want get FAA the to with as widespread a any publishing is our anticipate This of now the [indiscernible].These collaboration comply.I progress broad vein the provisional, our an engine Notably, partnership charging vehicles. published of happy that, system test other we that at moment, week-long to far, it for change the is complex development Register, the proposed are policy front, tirelessly at companies FAA FAA, another utilize follows faster, don't order and we in harmonized this Midnight doesn't team culmination now thanks review blueprint is airworthiness the draft at week the an to the with aviation the was to a the is equipment locations by team accurately status the criteria the of to we East formal working we flight Register. the The has a and along we have last of including work findings same standard, work the the across with production, comes industry. of eVOTL the BETA the Gulf latest to FAA we all first-of-its-kind a new updated of certificate in have certification criteria, manufacturing FAA progress precise I'm has We GAMA plans understanding or who airworthiness this the FAA market, software. to the and accelerate from audit software of over basis. certification our path battery in areas certification for California.On [indiscernible], partnering lower-risk report production.In needs to install status.Our flying certification, this commission of the exact well a aspects network was not announced rollout prototype-style much of share interoperable Michael permanent plan met electric that as in Register earlier our passed our electrification Senate Federal at we're and for beginning U.S., made pilot and all will numbers X the as in This our the industry. the collaborating MOCs to with on we rule rule.While percentage for data a standard the for FAA final we confirmed Federal already pending outlined feel that transparently our with XX compliance I'm have control [indiscernible] tremendous of colors clearer and with our has of publication week the flight of year. only the for this FAA a GAMA-endorsed analyzed in working we support we Midnight.As has We electric of many is year, point.As a at from of review.Lastly, our in finalized reflect to thrilled excited so given team to to carefully partners Europe's charging interoperable published are Eastern supports standards systems This the reminder, final criteria, criteria and certification and locations is Whitaker, is administrator, is our design why to goal to the use this airworthiness underway this for eVOTL

initial administration's address, him Mark. XXXX.And for prior we public service in priorities I'll critical to were goal to comments supporting many the see are there it over aircraft to pleased turn eVOTL While into of now his getting

Mark Mesler

Tom. Thanks,

our I of to about am we overarching goal capital-light our progress themselves examples Archer operations and factory high-volume am strategy As construction excited the concrete working the our commercial the is commercial is most Georgia, only expense manifest taking of strategy shape.X path and points creating XXXX, to making, in pleased to compared structure I to industry. market efficient our operating not that technical advance of proof our beginning Covington, is and in see that in the

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Operator

JPMorgan. [Operator Instructions] Peterson, Bill first question with Our is from

William Peterson

you looks the I by like quarter, noticed Can this pushed provide any so. in also it's and letter potentially more implication in you manned on or -- aircraft completed quarter is no certification a the like shareholder be the looks longer timeline? flight been and fourth to have some on information it the delay

Thomas Muniz

Happy Tom. answer Bill, is this that. to

call to referring the piloted So we the the on you're in about first and that talked about past. aircraft, talked conforming we've

what is fly that. flight to on we're the delivery think to before early test year. of next kind earlier I that year, we've on track with to aircraft to on still track said Still mid-next side

So really our there. no change end substantive from

William Peterson

I'm decks. quarter Okay. just to second comparing the third quarter

just about So to Air both on the it's a case, delay quarter wanted like ask look about Force. it I does sides.In any

expectation aircraft but or U.S. next year. is quarter towards the again it, you an to deliver to of year early were aircraft missed this last the Force. I what Air the might deliver think have latest to I expecting an end

Adam Goldstein

Adam. is this Bill,

started in that our we're payment to of first received $X was this execute event million nearly an the simulator quarter, on We Force we So building. Air which contract. relating to

to anything I delivery, that. working here and our hard deliver still to we're don't that in so have on the but update you that new coming is And on aircraft goal months, still

William Peterson

I one If could sneak more. Okay. in

Honeywell you you a So cert. third with parties, the FAA like of about ones -- guys like basically, talked it And other through seems the these gone have mentioned. advantages working lot and all

other many your to metric, have So actually for versus through of with feel third as, parties certification? the more doing I a parties third guess, gone of on trying a this these risks of percentage get of how Just build materials or some dealing own.

Thomas Muniz

Sure.

best bulk suppliers. work here of with suppliers So to we of the of that sort the the are the you're aerospace best referring commercial

aircraft airliners I all companies said flying that like These earlier are the So Honeywell, the groups fly like Safran, on have large today. that Garmin. for call, in commercial hardware

putting there.And our little data, to the does So is a us broader and prior ability cert deliver for with us we're cetera. in test strategy on in super work, let come components heritage, them that what all et delivering confident with it and aircraft-level context, their more system- the focus that

Operator

James. Our next Raymond question is from Savi Syth, with

Savanthi Syth

it curious announced versus what BETA's system what to how chosen go the be X. announced between solution, kind to I as know your switch the might is of BETA's view with cons of you've and charging pros you recently I of was recently. difficult Joby also and

Thomas Muniz

Sure. It's a great question.

the really process, country for the and airports our a is with their a versus been something that's investment we [indiscernible] broad for And the in in really across because to on very to makes industry mentioned the deploy it's all CCS including get with sense, to companies chose eVOTL infrastructure because a there.As standard way partnership it the world.We going around the to system and that European on important what that's other this have GAMA an it's months. we've last to thought go working call, I groups the and works So bespoke across group groups has the with whole going we many all standard. what's of proposed be the group that's about well-established really think what also standard,

So that our right makes proposed. that. generally and we the happy lot made to applicable.So particular think sense.I a for a at what on we're at essentially look that had still did take optimized path of we more decision useful be looks super Joby with quick aircraft that, for look it and and our architecture, that's first their something From

Savanthi Syth

front the plans. I are be was But terms your just I appreciate just of of FAA you the where And some Archer's it JX, might that. certification, I kind conditional. just realize submitting accepts on then of on until a lot in curious the of

Thomas Muniz

Sure.

think hinted being the that to dependent on it's you finalized. airworthiness criteria way like So right is about largely at, this

else's X so we're our belief, draft companies own But been have to criteria published. airworthiness And of for our X nobody been have finalized. which and,

our true we the have industry.As that just higher-level Again, we cert in cert of there this plans our of we because and parts all that's be submitted everybody until said agree in framework MOCs can't plans. the that to place. to actually for FAA is are needs complete, So before, with

airworthiness that just think was are, it we plans to published.So is, our unlocks the cert quarters final contingent we finalized months. think news don't and all makes share the those to earlier, forward because and on X criteria is publish misleading; that MOCs terms getting FAA there sense specific because ago. of mentioned X finalizing of coming be and somewhat the it expect final I over or percentages to again, path But this those could good I where we in soon, really those getting actually as rules

Operator

question is Our Sheppard, Fitzgerald. Cantor Andres from next with

Andres Sheppard-Slinger

logistics, couple order looks cargo for I a you're to And it, and like wanted finance the to also exploring maybe XXX an like to includes looks mentioned It cases be That just announcement. touch to it other thoughts pretty get Curious like there. of significant. them. up aircraft. looks then India your on use as some you it to

huge about and there. you you're to direct opposed Archer feel Just it. market. a thinking you're business that that Are UAM? intending market trying use the for get of approaching as that's relationship to particularly here maybe Obviously, to trying how model kind Just how the a understand to better better

Adam Goldstein

this is Andres, Adam.

of Rahul the in passenger are So new travel CEO is believe, about volume.Fun Mike which Group airline market-leading Bathia by Whitaker, the InterGlobe and is the airline actually that we largest InterGlobe. administrator. excited largest IndiGo, we in it's of largest India ninth very conglomerate, and, and owner the FAA the with I India's fact, former the announced InterGlobe partnership the is yes, world

interesting.InterGlobe estate, that in has real that hospitality. though, leadership was conglomerate, thought a I aviation, So is

market we potential have is regulatory a support they about thinking also look and us.When very markets there So partner the that and that really potential for an for at markets, these large financial really business, ideal where the support. partners for markets have are in-country in-country we're a

India we InterGlobe with specifically. so that and And have that, has

we interesting you draw. at have I think how that internationally, thought there's large was look we compelling.If operated so some that companies And can parallels especially other that

for So ownership as the operations example, well. the of in internationally, we share likely will

is InterGlobe InterGlobe with a So in has operator country. UPS, partnership the business where

similar type partnership where country. in InterGlobe operations can a I shared of have and so there's and And a relationship, Archer imagine

Andres Sheppard-Slinger

fact; a know it. for for super Tom, the myself. flights. that That's you maybe fun thanks not did piloted as follow-up Got I test Maybe helpful. that regarding And question or

feel do So to kind you would those. up? curious, it that looks service? test you like take how long we're targeting confident begin flight program I'm anticipate I'm that to anticipate to mid-XXXX ramping you of trying until that enter test How enough to long until to enter get that get Just run Is service. of through take to trying for something a piloted have the to weeks, will flight better sense you're months? a into will how confident that. feel enough into

Thomas Muniz

Absolutely.

need the to there is safe prove aircraft in ourselves. mind to the first thing we So is keep to

just conformed on testing, aircraft do where number that And through go have a how next to will we That's take campaign, through yes, that that the plan. aircraft extensive to that detailed the an for we're start need on we down X essentially arbitrary the configuration year. of in but months pretty certification an not use those which are we plan hard And detailed and company X pilot campaign.So flight exactly what take, do, that not building. achieve to and flight will of we all And and will back we fleet that with our but go of aircraft to campaign flying with that through exactly suite we'll then long first tests tests aircraft a with what we're to the goals mentioned, conforming pin specific aircraft, is based systems testing.But X that essentially mirror there. test test which designed so excited to

Operator

Our next Bank. Yu, question is with Deutsche from Edison

Xin Yu

aircraft you Can Does X a you to of much time how timeline. X sense wanted to Just how need back actually things? sequence to do once? have go X flying just build in and all at X? then also, another I the the up build X need these you to aircraft. on come And X the give and you

Thomas Muniz

Sure.

parts cases the X, parts takes our for Those first in and to very across facility those just but base production in be at together, Jose here -- parts got first we've these for not then for and So third. San today, our supply assembled aircraft that arrive some obviously time. aircraft second and in the process

at back and it there time, doing manufacturing first we're be third again cetera.But second, test specific the aircraft, then flight same very of plan, et the of and where aircraft objectives. tying some the So the will parallel those to have assembly second

what those produce which We the need all take you test but at we're it as, accomplish optimal each they're us will are conformed don't need flight think on so goals.So to to systems or of can maturity And our aircraft. mirror it mirroring those aircraft essentially of the, we those of way staggered, year X support majority them to essentially, in to once, campaign. next flight an test

Xin Yu

to a kind that a us I big first unrelated stream financial you a that then question, in. ramps And up? delivery? there's Is DoD sense of of comes And of got how Understood. that, Can how give the essentially payment. more the it with payment know you

Mark Mesler

is this Edison, Mark.

using work the we flight focusing flight with the Air controls to mobile future payment personnel's training Force receiving aircraft the But around the some P&L we lot really Air the still and deliverables throughout in for are on working where and advisers XXXX we treatment with shareholder the which just with for on pilots, the work actually improving and operational accounting and of the do the of what use. it simulator we'll accounting understanding lands deliverables.A then XXXX the that specific actually our So be on first outlined of geography. in of be capabilities payment in bulk on assessing the those received the that focused letter anticipate the our out for, and rest of was respect of XXXX, Force will specifically have process in

of will that next most lot of be largely a that So delivered will or delivered be year.

received be will the will be for say, somewhat cash Some should course quarters. next of or, I revenue over to year X those this will as prorated, the think the delivered be the could you later well.So about, of that it X

Operator

Our next Barclays. is from question Zazula, David with

David Zazula

I them flowing giving a as the solution, together of capability that of would using guess, like feel can broadly in associated be something you you have the the of is do numbers X any with Specifically, like that's color charging your with ago? way towards that, multimodal any I infrastructure? put stream And up you more that agreement ask guess, anything revenue with you're I if recharge on you time terms in you you're give with do able? BETA? and the same could part the the of you there Or still years ballpark feel then

Thomas Muniz

talk Sure. to that. Happy about

the we've the So to question, we're that investments our industry, aligning BETA, of your driving and specific them the question in cooling and with capabilities, in That's equipment. really made great path turnaround positioned the BETA regard job. and charging super equipment by to really They've country operational operational rest and cetera.With them the our rest just of terms done the clear, has at these behind partnering bunch well scale phenomenal aircraft last time, it.Does chosen, your partnership that industry, around have to this supports GAMA absolutely locations really with part the purchased be space. and sense? a around of all And charging, the part Their force of et fast of with a specifically first the goals the the make around we of for and of some the world. help distribute team and

David Zazula

not aircraft much difficulty are slowing specified? in that a but And the be yes. materials Archer that any you've talk vehicle to that then difficulty does, up a down timeline people chain lot you any with guess, able that sure the business you having your expectations, or I'm of news can about there's general and a the certainly of just ramp chains, having to kind been It with of electric how you need supply the impacting business. about broader of the ramping supply I Is in one, it, IRA, of

Adam Goldstein

is this Adam. David,

from broader seen we an no, market not supply So impacting the chain. the EV impact slowdown have eVTOL

are that's we probably we volumes smaller different much that because I suppliers. think with are working and use the

or I for or examples. the anybody, So space in as Garmin, like, Honeywell example, don't EV Safran using believe is

seen not impact any have from we So that.

David Zazula

a could just Great. in then if squeeze one little. And I more

But be You some there. airworthiness terms a you other of batteries certification about any the had talked your understand of that battery can progress out I anything talk provide you on specifically plan? would designs lower about certification battery and certification Is there. may than color risk process. in are there the

Thomas Muniz

super We're happy Sure. as basically still system. provides our We with economical that think use a well cells. a cylindrical safer both robust to system more as choice

us super So that's working on happy still that. the with updates battery a give the details certification any and Can't area because for FAA.

Operator

from Austin Our next with Canaccord. is question Moeller,

Austin Moeller

here. So first just my question

at you of draw the you'll include India essentially able to we that expect backlog to should that if off backlog to XXX payments And some does predelivery United that some your announcement around be With generate agreement, the aircraft? some cash? bring point

Adam Goldstein

Adam. is this Austin,

we that for Really, the to of the some that So different is market is especially developing. the international place we been side predelivery we will that put additional have. don't but governments, the There networks. the the forward, has come for of from still us quote agreements strategy in payments regulators with to launch certainly a the backlog largest the that partner potential a providers, lot allow these

develop heavily focused we come partnership vehicles to the really the figure relationships the lines. deploy very to they efficient as those we've way the so out just And side off can so on most manufacturing

certainly we mature to keep to As provide those up relationships, date. updates we will and continue you

Austin Moeller

you've That's what's heard aircraft just in relative FAA number And already regulatory equation, that helicopters? on is and with your side be we Great. conversations if required will helpful. Okay. able be training pilot latest pilots to the then about the the operate with what to permitted the to that the of of think officials

Thomas Muniz

to So you're on the in progress of the potential we have aircraft. flight haven't think to heard some content referenced because SFAR, referring for dual I need updates the that any there controls

the the that was aircraft of not context right around for Just to the make you as capability much these operation commercial there, pilots. training as have sure

the we for now industry, rest is FAA The our with rule-making GAMA on the of position, in that. the along So shared that. and process

obviously, FAA. to can't of no the So share behalf update and, on speak

Operator

Sullivan, is next with Our question from Josh Benchmark.

Joshua Sullivan

it shared aspect it's service for like color mentions aircraft, Give how a Just on sounds when but that think XXX Archer's model? executed. we might there's a model, revenue the it Archer's flowing that about InterGlobe shared model should through it. how to financing flow I think little through on us

Thomas Muniz

selling sell the -- be So operate talked planes. a shared mix there likely we've have it operations where and ability planes to we to model, about operating planes will is ability the overall as the a international of our then have markets, ourselves. well In we as

division. entire really for InterGlobe taxi relationship still stand and up ability air don't them color and is the but early, there's have to there, work we there with to the additional So any provide the share us operations certainly to the opportunity in an for

Joshua Sullivan

And expecting of nonrecurring should well? costs look off the Got like Mark, that it. to the What maybe just you're on XXXX. cadence and magnitude the in one maybe tail for to we that as expect

Mark Mesler

as said Clearly, previously. about dropping the start cadence is that we'll We the the those drop be they tail the materials by -- and that conforming we're year -- pace into off areas off, will areas investing year I such for we'll up is that aircraft Clearly, investing supply end other and to talked cetera.But be business. it of the chain partners, will it half of into of see of and at beginning we that execution with timing drop the quality, off on the X mean, the off and generally that's highlight after manufacturing year. the like as will then et first I'd of the X the ramping -- the we also business. in dependent current our of other

Operator

time. this further at no are There questions

Goldstein turn I'll the remarks. call So to for closing Adam back

Adam Goldstein

flights who's well relentless execution quarter.Our over full production-designed their months, rapidly another to and the the on took joined great in for wind-born aircraft, as call for for-credit Thank has with Archer begin been the entire we're the advance us you, team first testing paving coming for FAA. what everyone to the to as today Midnight, flight time, track way the

swing, is team Airlines both in with team nearly again and Air UAE United U.S. I and everyone international contract the the Force.We liquidity, million ahead.Thank ended quarter on you the announced with $XXX in call couldn't more be with from of about excited the commercial now to today. quarter Our our full our our U.S. and launch and domestically markets industry-leading abroad, launch cities to India newly to our

Operator

today's conference for concludes That call. participation. Thank your you

your You disconnect may now line.

Archer Aviation (ACHR) 9 Nov 232023 Q3 Earnings call transcript