AUR - Earnings call transcript Q4 2024 | Aurora Innovation, Inc.

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Operator

Greetings, and welcome to Aurora Innovations Fourth Quarter 2024 Business Review Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Stacy Feit. Thank you, Stacy.

You may begin.

Stacy Feit

Julien. Thanks, and Fourth everyone, Review XXXX to Call. welcome afternoon, Quarter our Business Good results this announced earlier We our afternoon.

website shareholder letter accompany our available Relations this shareholder Form call ir.aurora.tech. Our and with are on a X-K filed our the furnished was also letter presentation today to at with The SEC. Investor

key Maday, business, progress with provide an will David me call Urmson, we've the our and Chris across are Chris fourth our Co-Founder full results. on CFO. the pillars and will recap On year today CEO; and made the and of David quarter update financial

We to open will then the Q&A. call

the technology of for year, and opportunity A Relations remind of the the during and we benefits our benefits call of costs website manufacturing, and recording call reduce to development, you will will Investor partners [indiscernible] achievement safety the shortly beyond call, including to customers. our forward-looking and general and realization ability statements. expectations financial and commercialization services, anticipated guidance, future be ir.aurora.tech relating product on operating this including certain and after financial statements this our performance like of conference This relationships milestones our that to the potential of of of expected around at fiscal scaling the driver the and and XXXX revenue our year, I'd includes related has that be benefits this ended. making with available take outlook to

expected and our efficiency runway regulatory size, to our expect cash the for and and reduce of our share, operate, opportunity, the the and product's frame expected in framework driverless system services, validation our which ability market future the overall profitability market we emissions, we on efficiency all, remote prospects. use at expected time And of future operations tailwinds market or fuel and products process, our

Form that described particular, to those could and known factors implied In differ risk and cause the ended filed including on business, actual uncertainty our well in report unknown or unpredictability are and our to uncertainties as with in and those materially economy. from as our in risks for results XX, annual markets call. projected statements December current the the XXXX, subject XX-K These SEC this during year

be for will December the XX-K in XX, information Additional report Form also set on year annual ended forth XXXX. our

as to should call on as on forward-looking statements forward-looking our You not rely by and make law. the disclaims of any Aurora obligation All beliefs on hereof, predictions forward-looking that are of this events. statements, we as date based and required except future assumptions any statements update

found reconciliation results. addition today the GAAP of our financial shareholder isolation in also non-GAAP or substitute from our Relations may may letter, be be which and with our today SEC Investor with GAAP historical to These furnished and X-K found our be our not filed non-GAAP a Form on should non-GAAP financial a non-GAAP may regarding to website. Our was results, our including results, include considered in measures discussion measures. for in as Information

call over now I'll to the that, With turn Chris.

Christopher Urmson

efficiency. the innovation April. Reflecting The as commercial a the standing Thank by Aurora combination Aurora at we XXXX, dawn, at new greater dawn near and Stacy. monumental a our we're you, transportation, time years defined of mobility XXXX planned in start it's of launch and and the safety, in been on of the preparation era of word one and means for

been approaching closure XX%, technological trucking. Houston Dallas safety We're with lane to also loads We've safety, reaching commercial made progress. in scale targeted mid-October. grounded since launch the and in approaching strategy of continues discipline financial enabled focused our as position XXX% the leader ARM for by to case Aurora launch tremendous the Our differentiate for API and we've estimate autonomous

strong the front, under cash our manage budget. consistently use demonstrated financial discipline, we've On financial

necessary strengthened of we this scaling the further the our resources ensuring successfully also initial Aurora, deploy we fund raise year, partnership with liquidity another Continental, enabler We at to our a position solidifying last strategy. key a And successful phase X-way at between start the NVIDIA have and to capital of scale. announced summer

the U.S. have Our environment. industry the regulatory states, deployment allowed deployed government. is also is be And supportive under a launch the laws U.S. our Texas trucks already can and existing including in in vast market. regulations, majority driverless at fortunate of Today, state federal level, by autonomous to the

a the for for this environment driverless all administration's that optimistic vehicles deployment nearly self-driving for also With new nationwide enthusiasm for could ahead. presidential is U.S. pieces the favorable in in an poised Aurora regulatory and We're framework support innovation, extraordinary place, safety the year further

advanced the We in to navigate XXXX entirely track walking marked speed the never our truck our I'll Investor experience driverless chance journey. truck moment driveless and March at the trucks a with look Day investors gave track. first Analyst by investors At that for rides a driverless. road them at supported Our became test our development a and who have how Aurora's forget and up vision to defining everyone. moment, for our scenarios clear analysts seeing

starting launch and Houston launch vision final of the order our Dallas driverless the to making and in away the case months development, In driverless We close commence loads journey between reality. first just customer we our hauling must from operations, a first Houston lane. commercial for trucks and plan Dallas steps approach April. our we we're As to safety

are all remain that a our for We in a only level case of through completeness toward lane. safe Lane public this the of We quantify transparency. vehicles to arm, framework confirming measure has company safety claims roads. self-driving approach comprehensive safety closing the the our is to weighted across launch of evidence-based acceptably Houston the case industry provided our Dallas progress on Launch operate that Our our case safety

progress ARM and from the over of to the up behavior end made on software final driven and of the complete end expect at validation weeks. a elements XX% XX%, the our several next case of claims. of October, of remaining safety refinement meaningful number by the was closure of We've As January,

take Let's in we just at recently scenario our Street Surface a encountered rare Houston. look

In the large on video, scenario. Page X upon precession and unpredictable a presentation, funeral complex our of Aurora comes driver and the

traffic motorcycle the As intersection, a potentially Aurora the an truck uncontrolled directing can lane. detects the approaches block trucks driver the intersection, police which at

speed and request prepares stop input assistance a It it slows its remote as specialist. to from

trucks tasks specialists. and and police the our board. Aurora protocols, and architecture only security blocking system cannot by All be executed on lane seconds, and assistant be specialist just should officers our driver driving given the sees not trucks operated remote Within strict traffic confirms proceed. remote Importantly, assistant cross the the

able systems With the rapid Driver will systems our reinforce in helps successful was the the our motorcycle and detection its Street Definitely powered even the complete scenarios Surface the rare continue specialist of of journey confidence active appropriately that remote truck response, sufficient the stopping. the this behave driver without power distance like underscores performance. with remote Aurora the assistance Aurora on scenarios police and to at handing interaction

left zone to Aurora a the and to video In X, truck traffic complex rare It to Page delivering impressive the prepare construction the ahead Aurora lane on is warning. crossover. upcoming performance. an lane powered highly encounters Turning closure driver changes seamlessly then scenarios. construction for Driver also The an navigates

with and As traffic separated marked you'll zone work redirects type by road, lane barriers this of see, configuration the opposite side of cones. with the to the bypassing

and of This of is in is of skillful scenarios example known Aurora Aurora support types solid construction its fully results. commercial returns continues drivers key the preferred Strong performance a journey. our clear right its API of performance zones. great driver the the readiness. assess Once use truly metric handling to to we these another API and zone, construction performance

of use percentage to which on-site not We're will be form support, commercial up that provided to loads support, of the any the XXX% penalizes which as the indicator expensive support Aurora loads. driver. of enable most refer require we on driving The API the did focused on-site

As support. require anticipate we ever aggregate even API because at XXX% launch that reminder, a on-site will certain and always will do not reach situations

percentage planned is expect this indicator launch. mid-October, quarter, excluding to commercial XX% to at our Specific the XX% our X metric reach by launch of estimate launch fourth and XX% puts approximately strong believe our the a progress However, XXX% us loads commercial weeks, This the of weeks many loads we strong API XXX% first April. since in for We've API of position been exceeding XX%. in approaching a of with

approach to the We're as truck balance XX launch, we trucks commercially ensure deliberately while will starting proposition our with stakeholders. focused this early starting of expect crawl-walk-run trust suite then demonstrating up operate with the full and be and efforts to our operation. the driverless launch product transitioning to exercising to continuing our with X seamless driverless build value During all on for a customers

to capacity the In strategy to the year. Paso the end and and increasing rainy on expansion of product Well of further with night by with XXXX, of focus lane capabilities our expanding operations trucks include second on beginning our of extension lane Phoenix driving tens half Fort conditions, the we'll driverless Worth

for the industry underscores in Aurora challenges. autonomous role demand trucking will play critical driver the Growing addressing

enable uniquely shipping rare help and positioned increase is staffing the solve and efficient to continue more productive volumes and freight As distance transport. expands, shortages to driver

example powered XX% in isn't a and trucks marginal fuel clear industry deliver best-in-class driver autonomy efficiency, tangible high are improvement. average. of already operating value above just Aurora autonomy a achieving the fuel at can This It's how of levels saving sustainability.

operations, year. up and example our As transport. discussed driver work XX%, and how is as industry fuel white Aurora is This see bring costs. and driver their paper sustainability the integrate This just the meeting challenges the use deeply emissions reduce customers today's emissions in potential the will we future published we Aurora by freight one we to of more with down last the to reduce shaping and with operating help of

Solutions, partnership. make sustainable mutual continue a on in to by Volvo or Aurora and progress guided With our significant focus VAS, operations safety, Autonomous

fourth the with by together driver. VAS, with Aurora we quarter, DHL with Supply Volvo Chain operations pilot During the purpose-built Autonomous VNL launched powered the

lanes, DHL X and on to hauling El Paso. Worth Dallas initially Houston to Freight We're Fort

Werner, commercial FedEx, autonomously more delivered autonomously others. X,XXX nearly pilot under including X.X Cumulative pilot million supervision for Schneider, also driving for to other we vehicle Hirschbach, XXX% than haul performance over customers. continue to customers, have of with our date, and We the loads, miles Freight Uber our operators freight on-time

to JB Hunt. also executed recently excited have MOU We're an with

expertise partner assess and step the the more evaluate over leveraging As gives move some Aurora we the customers most to of deeply to system, who of performance operations. launch, continue to a driverless program, evaluated forward on-road success which collectively our Hirschbach recently drivers XX represent Drive's professional for of with final we years commercial run prepare their our as seasoned opportunity experience.

and drivers have row at locked millions them. everything These seen in of can have throw miles the

their the the by So away blown are understandably, to into a they ready Aurora Drivers Hirschbach driverless in skepticism. program ready. bit rides, turn, came when is they were of go and we But with during performance

it what was mean about it how to me, awesome For hear experienced industry. can this get drivers for their technology truck

Since self-driving X and capable deploy hand-in-hand Continental the founding, can mission. Trucks, scale. these Their transportation and Aurora in safety true can OEM the at video Page at company is to autonomous our work a firsthand of we industry, objective testament trucks road shared hear and trucking the of autonomous freight Tier how traditional has improve belief and and unmatched is our only You in in our with scale position from transform presentation. been are to drivers PACCAR Volvo deploying Aurora's to partnerships technology X believe our on

enhanced a beginning the NVIDIA, and key with to January, mentioned partnership and Aurora DRIVE X-way Continental [ production further successfully And Thor I Thor a in Aurora As between at of driver call, enabler chip NVIDIA's another solidifying of plans my deploy we at apologies, the ecosystem will first this XXXX start that of half ] be are the kit manufacture Continental into starting mass in system to samples hardware the XXXX. Drive testing. in coming integrated to on scale.

core manufacture the for computer be driver, Euro we're will Drive primary developing with who will the the which Continental it. Thor of

on of make kit. to meaningful this of other continue progress the generation aspects hardware also We

Notably, we the quarter, fourth first a is the During meeting our of next-generation engine. single into our the LiDAR. chip LIDAR performance integration for requirements photonics light completed prototype our

hardware progress January, we're scale firmware of in will is partnership Euro And thousands generation critical another significant tens unlock trucks. now and sample of are milestone the making of Continental beginning this achieved as and of true The towards builds development. a on order and they

While production XXXX, kit. our toward in we commercial Continental third-generation of work start

We our advance also kit. hardware continue second-generation to commercial

introduce to path to to autonomously. critical reduction of drive our hardware scale miles support generation performance expect it ambitions is of kit later on And to our importantly, plan to We our costs, traveled this brings which a hundreds self-funding. element in year gains. this we function step This exciting a to millions

samples fourth contract Fabrinet received the X kit for from into vehicle have integrated quarter, we its our During and this first manufacturer, prototype testing.

ever a is cusp Aurora with toward a on enough becomes an step to impossible those launch, and been enough our pivotal and with achievable. ours company realizing energized our focused big dreams and than team the capable has our reality. bold We're like make skilled mission always more a mission-driven dream team, a commercial to team immensely planned of

without extraordinary Dave partners be year to from of believe our With to investors. We for will a commitment and be pass team, defining I'll review as that, unwavering it our over Our financial Roy results. Thank progress your not the freight. XXXX future possible we now you the begin reshape trust. for would who will

David Maday

Chris. you, Thank

discuss financial results. our Let's

slide have deck on provided a the Page We summary reference. of XX for

including During discipline. fiscal we quarter million. of Fourth strong totaled to operating continue stock-based quarter the expenses, XXXX fourth demonstrate compensation, $XXX XXXX,

R&D operating Excluding totaled stock-based expenses compensation, compensation, $XXX operating excluding expenses, million. million. stock-based totaled Within our $XXX expenses,

million pilot year-over-year. a This expenses, increased SG&A of used we were $XX in as stock-based XXXX excluding amount expense. includes compensation, XX% which R&D $X.X pilot million. We revenue $XXX,XXX revenue, million, million record $XXX totaled and fourth and fourth during expenditures the $XXX and respectively, cash quarter million, during approximately respectively, $XX the XXXX. XXXX. fiscal fiscal million and operating Capital quarter and contra $X

We the was continued This $X.X the and a investments. cash externally year for below short-term year, ended our commitment the including target reflecting over to very communicated strong billion our quarter in cash prudence. spend sheet, with both fiscal and balance

Given to business efficiencies fund million XXXX, the to we quarterly be operations planned support $XXX found we liquidity second and expect XXXX. half have now cash cash in of made, we range. $XXX this within the to our and launch use decisions preservation expect our we million into average In commercial the

hardware scale programs This capital will business. At begin our for as driverless accounts and in increase commercial This an include we expenditures prepare to continued we revenue. will of development as our to new launch, to revenue, revenue which has to pilot XXXX point we as up expense. continued modest mid-single-digit expect With been revenue recorded as R&D well this in contra our launch, be millions. the deliberate our approach recognizing

For with during recognition purposes, the be a negligible our Aurora, but will financials drivers build sequentially impact overall year. throughout on to revenue year. we for associated have will milestone launch expect our our Revenue launch modeling a meaningful

the expanding promise Our to of our focus the Driver will in XXXX on technology. be driverless prove Aurora operations

of initiatives. to call support our now we'll our including cost scaling cost introduction reduction the initial In With focused key hardware the open levers, that, next-generation achieving addition, on to be Q&A. will our team reduction kit

Operator

first [Operator our Gianarikas Instructions] Canaccord with question Genuity. George from And comes

George Gianarikas

launch like April be past I'd try multipart feel So insights comfortable and glean a just about optimistic look of to you this the scaling sort and some and maybe is and question. incremental how to from commercial you

sort especially scaling the to -- as examples have remote the some scale you a some perspective a can one tell detail reductions -- the perspective, of maybe from specialists in particularly bit as operation. have can little operational that you break assistance you you from maybe us also that you as you And in cost the you -- in a of NVIDIA, confidence down you lane about hardware achieve of through the you shared? can First, hardware mentioned, deploy mentioned more

Christopher Urmson

to, question. Thanks for happy George. the Yes,

of freeway. very on in self one Meaning that is the optimistic. that the United network bit the going similarity States thesis scaling to are reason of Part application lane So of the side bit the I'm the high. part of freeway another very looks is similar this, of of behind after freeway Right? and the trucking

should drive you that in So another. place, practice. And one seeing able can drive to if in we're you be in

an to rapidly at other in and I El places. a Last shared route seeing quarter, between update we're the of level then operated Paso we think Phoenix our what map ability and performance on comparable to

of So we quickly. expect to out this that relatively to we roll 'XX, evidence we'll through the And I look course think as some that of see year.

-- to as look problem, would actually things highlight at become this One that is each I out. easier lane of new roll I will the

for we've Dallas we talked that the And what that well station. custom in to validate there's we've that of for as modest where that's incremental the already do as Fort about a in that that's to first And past core Houston, we over amount work. through the the we've of Paso, get then we the just set the operate big needed is small several control driving. We a built quarters. of difference new And need have that top are today. you lane new on have. that compared a competence accomplished So move Board across of layer capabilities we work line the lane, all we Worth a to what to last really And fact

ability our that. in to confident and optimistic really So do

On the our hardware hardware that's we're with we've going first to launch strategy laid initially, generation out first -- a side, where commercial.

in hand, the a tens don't widgets. We've importance that's world. the the produce we of what for of units, in and be shop. that not want best can that us talked focusing small right? about to we have manufacturing past We making in up We do to And on

at designing them, at good really integrating them. good really We're we're

and mid-level artifacts where early that the beginning And a trucks with into heard we're that's to play onto already our [indiscernible] and from of we that brought so integrating that process partnership bring that. support scaling. partnership you will And

from So tens to thousands. small getting it

we've the Continental, as manufacturing our OEM partnership requirements, to for scale. And which pipelines the been -- understand automotive part and with planning they processes They of understand just-in-time how then right? partners. ahead, with manufacturing the truly they be the gets you know, us know to and

the partnership business. in with work and the build of building to a And so I put to ability into we deliver with confidence that the building Continental forethought we've hardware high the this in done Fabrinet, necessary partnership our with degree have that

know, a as of cost the you And of comes in the both the with that the as all have investment produce. you engineering each scale you and certainly in you over increase those, of NRE of almost production because manufacturing spread number to that of widget, down of costs the units

measure. as look high we And cost and coming very that detailed a we already on the of so really degree have We good in down. seeing confidence at have numbers this,

we number with that hardware business expect get to, about margin for And we've certainly Continental of healthy very to years. talked the that a

the scalability So and confidence software overall, to for? the and ability our you very more perspective confidence at to that from when across looking that will degree ability than point a allows look hardware to do of realize us degree equally that I of at objectives. and deliver roll high so were lanes, apologize business a that support high the both I our in price maybe

George Gianarikas

great. that's No,

number were about NVIDIA NVIDIA talked on that of follow-up there the At Just a their CES, a partnership. companies partnership.

may of Day, others to as little the So -- I this hardware proprietary GPU? Analyst think bit to relative at you is same go your and how your that in using a be can detail you but if did maybe

Christopher Urmson

Yes.

And that it complement bring is -- of SoC, an a the this the an in in NVIDIA system, chip whether this part we really requirements designed product. magic is bring talking that's performance a course, the to in product. system about from That it's important the Continental off-the-shelf application GPU is integrated meets and we're SoC, deliver an an how that's manual But the And for that's integrated how safe our of reliability NVIDIA. manufacturability, in So to the obviously magic magic. case, product. on scale,

itself, thing we're particularly around -- the way that using we're unique. value the So and the not it unique. creating it

Stacy Feit

cutoff hearing. was heard from a connection it bit our break? the answer? just on of the the loss maybe have in sure there e-mail may Could you I George, there someone side a if was I'm a hear in via and not that

George Gianarikas

heard whole the thing. I

Stacy Feit

you for Thank Great. Okay. confirming.

Christopher Urmson

whoever And for with apologize got that. out cut it we to it,

Operator

next our Sheppard comes And question with Cantor Fitzgerald. from Andres

Andres Sheppard-Slinger

maybe and regarding just you then bit Congratulations crawl, a then on off, the walk, your to approach. out if strategy, can more commercialization all run quarter your of maybe recent developments, start flesh wondering I'm the

truck So of driverless end of obviously, starting the by with and then tens X up ramping the year. trucks

in QX wondering you what way And those think April is Just loads that targeting year of be is certain commercial number driven there to your terms best also, might about and operation. the a in for by cumulative and this QX trucks miles of date?

Christopher Urmson

Yes.

So we maybe I'll introduce take a and part more numbers. the then little and Dave it, about about bit talk how I'll first the talk let

run is that function a transportation, the us, of for that change, able walk bring a along sure to make crawl stakeholders is want and to this kind on a in we really about journey. step that we're So change acknowledging

operate of other -- we're course technology, given in this a kind the next a terms the our will will an delivering while multiple not moment have of won't ability Dallas it trucks kind of closed progression. over be -- we while lane. well, confident case it a watershed natural But to stakeholders be financials on material that to for of kind As our in the that of expect and in of it safety Houston, impact And year. important moment kind

well that confidence way kind nature. a and of and that a with stakeholders not regulators collaborative works our and just in gives way in approach why up So build further expect and local in operate they'd

said, with up expectation. tens our of be that's We'll about start to, of to X by think trucks the So at XX. is end then as how that. and then year, we you the we'll And build

David Maday

for Yes. question. And Andrew, thanks, the

about to ensuring talk customers message us, last for what may on the Let I promised the our But that and great part. to want partners said that It have important not the Chris closely hear. we a value you delivers regulators. think for that product working be us, is with our and we've me it's about our

we're a that in operate is us, driverless thing that can we one, for on where second in. focused expand have going technicological commercial And demonstrating the really So the product continuing everybody love. is areas we to to

nights, So thresholds new first into going come those the a we going going naturally. than that lanes, really range, to into drive to because into product for great absolute the we us important want are more going miles of miles have and are number

make The we to other our to quickly. next-generation sure we want is thing get that work that also

So first a volume as generation don't of waiting the want for into the kit to second. ton we abnormally hardware we're drive

our So deliberate expectations. We delivering satisfied it's completely want to very with for sure product approach. us, a the to customers that are we're make our

we think guidance. us, points, technology for than 'XX mileage is proof valuable in a And more

Andres Sheppard-Slinger

helpful. all quick that Wonderful. I follow-up. as a That's color. super appreciate Maybe just

So million for us CapEx granularity your as in for CapEx bit about $XX you disclosed, you you the a year, how about can to $XXX XXXX, the year. this was $XXX million. million and be of wondering to maybe quarterly to QX specifically $X give million range for use in cash expect more I'm if think to

it to model way this to year? the trying best Just for out what's figure

David Maday

Yes.

I certainly it overall, but some don't to be -- let a think, CapEx OpEx. in CapEx. will increases in substantial I expect describe So me the increase in There try

programs. to like on the think we business bring all I scale have have people hardware we and new OpEx our as operations in a slight our in we'll necessary increases programs place new some

those, both OpEx to to million expect going million that $XXX see pretty CapEx. would the to that increase they're to modest in be be But for fills I the in to I think cost increases. and remainder $XXX of modest a the

pretty purposes. So you I for should for think your that be helpful modeling

Andres Sheppard-Slinger

on. I'll Congrats Appreciate on quarter. the it Very helpful, color. the indeed. again all pass

Operator

comes Scott Research. question our next And Group with Wolfe from

Scott Group

I's still April? guys am be in to wondering, anything you order need accomplish for specific ready to

Christopher Urmson

around No, there's for just -- work bits thanks question, of Scott. the sorry,

at the As a time whole to things. work some just last out set about this, talked needing last just not to of of we look close we lot. And kind do, there's

we've that's out, that's moved and reflective work the amount pointed the XX%, case. to left to of we of As armed safety close small

that XXX% trip API set able set approaching the launch. And for for approaching that API bar the we is bar to have is being we

really good feeling the the experience. and on We quality the quite of in we're this. So that about see road performance the

And right really expected. so of we're we -- pretty honestly, jazzed way happening now. the kind It's I'm

Thomas White

of more gradual year I the XX step real trucks -- or about whatever, not this miles do is totally we go tens still sense. later? guess, function is in the like next of trucks, with year like appreciate the start a as answer ending I and ramp, then is and little does about that to number when hundreds and trucks it a step of makes year? that bit Is function year But next see meaning to year a

David Maday

step have with and great And you we're used confirmed and to and to seen. are rollout function demonstrated can shot launch a that Yes. product. is here of terms add a once have Again, kind started then Scott, to let we've me of our and on that lanes. then we guys metrics really take Chris, we a be to continuing going it in got reliable on maybe more you

function in we just trucks, on Chris how of miles operating expect trucks years, step even a driving. subsequent have that and but not those many lanes are we're many And just change the utilization launch we'll how the in of the the be able As to based miles going were is more number mentioned, trucks out increase, to driven there right? to

are really able expect what a demonstrate increase to. people substantial used in be to, We utilization to XXXX, versus

truck, to to from objectives profit. going to really our X is do we're in before, And we've think demonstrate but in utilization positive So I it step function us and gross year that of XXXX. is of financials. solid both mentioned terms seeing

guidance a to and not or be affirmation Investor that, That's and the To an a driving. we we've that but Day this what have step objective time, Analyst talked that. that's mileage ours. towards that at point, have working last still We're do we're our still to is -- our able in of about function at

Christopher Urmson

to And about we as features. that our the and launch think the we around Dave build next close accelerating 'XX for said, lane as to the advantage. whole just turned add momentum I the Right, way we'll commercially, really as and the launch when to that first we crank new launched capabilities have time starts out, what we

signal it, is And those it where to deploying us the put into rhythm support led will and and able have to of a today allow high of need. scalability team today. to demonstrate that to that technology the the It questions scale support and confidence early the needed. We've be where the get questions company bed this we answer the be the the with we our we'll got definitively able product the of we the will and product but desperately customers George into extensions need really to that of market

forward here I'm it's exciting to the at like just it. and company, -- really where time fun So looking and an

Thomas White

of one. When do a an trucks Aurora just you'll last owning but parties, not And then think having you customer deliveries seeing third it? start truck, we'll start one to maybe own meaning

David Maday

Yes.

that the we to is go our by directly very latest, produced to line expected work will that with hard Continental, I sight partners OEM be customers. that's being think when -- install our have a so at

be think to do a going cases. customer-specific specific I think But that's to their bit more there use path before it then. we're -- and to is work I little a going

you'll substantial -- , 'XX. would as delivering latest essentially say all a a service, to I in customers the see driver So

happens I before be that that customer slowly specific. migration be think there'll and a that, will

Christopher Urmson

I think this I that going places of be And this end customers right, level to And the begin the I obvious as to to advantage roll think early expecting. and hardware. performance are experience it customers to of just can And for adoption going phase through the gain does second of demonstrate It's of hardware next become to on at they're in need that they build practice, we transformational. theory a an year, who that this earlier to it it's not at that's that we get going generation commercial drive as perhaps think earlier, is to out in able to this that us, in the of transportation. that acquisition that on go they'll

Operator

next question Cowen. TD Jeff from with Osborne Our comes

Jeffrey Osborne

to couple investors launch with a side. the not success had wondering characterize it my relates miles, the was months guidance of you're as categorize report giving speak. X April look Just give were but recognizing you you you should how over a of thereafter questions to How or the should card, and or commercialized? 'XX I as to in prior back had so fall X maybe the just we on that months been

Christopher Urmson

Yes.

on, then exciting work becomes on all you we third that our profitable? I product big that big So price there's and the the shareholder I of are expect technology One think the risks a deliver binary think if hat of what business off? put right, them, for the where business. opportunity actually is, a I my the The make about there's trucks becomes questions the is on is in scale the can step, the or big self-sustaining can degree think you hat road, our are when it it that be? will driving it point second the it's you And investor which what business nobody I to can -- is, at and

the And can this full will expectation. this so our in them be make we and end year, first we'll laid the rest the that, yes, right? nobody That's trucks on of There road question, work. with to have by hopefully

the signal the this at of be to expansion to scale self-sustaining the where to you're a the able able going but product. that a year, that, get we strong works end they're the Towards We roll we is way be operating are okay, expect. business over, will to is out lanes, not certainly see you'll able this scale turning

enable And expectation. is start our to hardware first of that will get initial then the we'll taste the profitability

going So fun to year. it's a like be

Jeffrey Osborne

would Just competitive quick X other you characterize the ones. landscape? How

Christopher Urmson

ahead the landscape, opportunity a exciting. and we the the position. look our to have market customers, well When freight have, at where that. look right? and we about out in the look we're of the opportunity a we ourselves, U.S. for of We and our about is accelerating. an dollar team at I piece think win, ours trillion for win we incredibly very we think to is big As have. bullish feel partnerships just It's that we we technology the at competition And

Jeffrey Osborne

one, on of cost reduction last the And a questions lot potential. hear. was there to the Good

in you be sorry, there about term. highlight talked to Continental that 'XX here or volumes the are we Or initiatives key at X plans? 'XX as and that Are 'XX for cost out X Fabrinet lower it monitoring variables relates obviously longer other and any should 'XX? that for then You've would

Christopher Urmson

So and truck. of about of talk past depreciation lifetime business, as the on-site hardware about that the We over our talk in talked economic in core about support. of the of kind of cost the we've cost the costs drivers we the

road touch So the a anytime that's somewhere go somebody truck on expensive. has to

ensuring And the why API to XXX% measure. cost then of cost then about And these have remote support. of is that's been vehicles. this How is the remote the And truck. we've support third finally, agent a trip often the talking

you the product, bring call continue the this So when to we in continue we've it deliver we on the those to I to expect turn, take With as forward hardware out increase. down. on-site of support the path remote cost laid with to reliability and even that

hardware. of laid contract like. that hardware to And Day a in remote expect we've Investor review in built we from Analyst from perspective, increases in our we're business the that's hardware Continental, moving then confident that support, and move that we looks from in-house -- of And on curve built what just our the the a -- continue manufacturer we've as shape reliability to out so or from the to last the hardware year

said operator than ratio and better get our of I it expect to a 'XX think that And for to in to to 'XX, expect Into get point we we that we said is Into what was 'XX, we apologize. I a 'XX, XX:X for operators. to as -- ratio. market continue best truck that the that to the believe on and rational for demonstrate will the insurance, insurance And a is pricing XX:X reduced that we of improve. we than that then better safety the improved loss of our

levers Jeff, good what key the Thanks them. across drive the all great overall, So making the -- we're understand again, of for out we are and of way. delivering of the out by question, progress the product, to cost

Operator

[Operator Asset question Mark Our Delaney Sachs comes Instructions] next from Goldman with Management.

Mark Delaney

more could for the Chris, there Given you out materially in training its future? cost think in the Aurora if And you reduce techniques AI that on research Aurora news think ways are generally, curious, DeepSeek, I'm if adopt. are to there new training

Christopher Urmson

rapid of some been to large interesting It's Yes. watch models implications of the these distillation the of news and kind around that. of

One things points to quality is saying is which something for data of of quantity that we've years, data. the been matters it really of over

performance, basically from case the think XX% from of the where headline the quality for take, the Stanford, the XX XX% in cost, out using examples So right, XX and less of this trained of Gemini -- the or report I but by relatively is performance of was just -- much got think X,XXX not of this model to DeepSeek, they a I $XX example, low to small if you it it for feeding speaking was of directly article replicated reasoning -- something.

of for of it's time solve. points so about and the just not quality the sure that to about quantity really this data. you're making serving you right need making this It's that data, have And trying a high long talked it's the concept it's sure we've to

of interesting looking other about already, but that we do what approach models pretty large day from bullish our been that's we're overall. augmenting And these at X. There's elements it certainly

Mark Delaney

Very margin talked Maybe interesting. your about have you And positive said more talk in utilization the contracts of in you that around positive gross and target to margin you next being variables pricing the gross input costs then trending a key in Dave, other and of of but XXXX. in commercial miles XXXX, one guidance. getting is update toward the some an operations is objective how year? though, how particular, some around and for about progressing factors, are you think

David Maday

Yes.

are -- goods some the the major that on think at of really drivers I think this, just this, decompose if things drivers you the said like that. sold of the of margin gross and the key and look about some the some in of of elements cost Chris

there's operate I are X per other operating But if How I efficient repeat we road? those get How how support terminals. the need thing se. fast we how onto I to at we've And well many is we we a pilot started we won't look that reason truck at why like do think approach a at so area. we're do right? think operations how if years people And can ago, the terminals, Aurora is,

efficiently -- in really really trucks that confidence we're have us, piece on lot of going cost get to a know we've how to the lot. and it low gives and of operations. understand We've what a the the who terms us learned of We're hired effectively. allows it. experts And to relatively that's terminal

the already the have, expect keep element is is right? higher has fuel can't pricing only going more have, of are When that from the safer would but And more efficient is want deliver about, talked predict like side, close market, product the comes the potential a we a that's revenue more attention reliable. to and that I we we the cost product really I pricing overall that to Chris quality to special right, we to. it but other the side

once power pricing we've And demonstrated to I high be our that. expect would pretty

our focus So the we're costs. on of pricing end control, higher having controlling what great those can are going the a that charge at and we can and we product average to

a I the to So hard in the that I have it. do this we lot of work team get meantime. certainly, to But is feel right path there. to confident think do There's a

Christopher Urmson

face. And the a of cost that driver the continues it I'll trucks, the umbrella that labor the just Dave to or as -- operating that up operating add the the to of risks pricing said is challenges these right? cost This human we The the believe is operating we continue and for given have truck go to what should, job. important folks really super cost

the next alternative trucks. the best these to going to ore driver And of that's be

So we continue to this is believe that too.

Mark Delaney

the last That's FMCSA spoke that go If your in. didn't about and ask ruling In letter, I one shareholder could one how helpful. the way.

also look you to You did the workaround, exactly change refer that what more the speak could elaborate mentioned in means and about if even near and a term. might law workaround doesn't though that one like? operational if you know you a bit don't I some longer-term what potential

Christopher Urmson

Yes.

more way do also out -- tow do trucks aren't those the the behind on stopped FMCSA on you the way road. is our of Equivalent the you or to triangles maybe trucks lights to this they're the to in allow to vehicles It's truck. rejected them conventional this dangerous one petition emergency have to but flashing the put when who that the of for on side of So indicate do. is

that was decision the of government the positioning this. that, with reassess federal down and We And most one we're drivers reject get believe triangles the a this that administration things dangerous opportunity, possibility wrong, changed. It's the is will optimistic that there's new that to a truck that really application we're a down. to walk putting good freeway, do good

both to said, And to more to impact launch mitigate us this with get and that ability commercially we the technical rejection on operate me our on that, approaches operational of compliance going no you're has law. Mark. That allow that not Sorry, opportunities to out see in

Mark Delaney

it pass on. I'll

Christopher Urmson

the for Yes. question. much Thanks very

Operator

Our next David comes with Bernstein. from question Vernon

Unknown Analyst

of is Vernon. behalf [indiscernible] on David speaking This Justine

where at look and are operations you autonomous we trucking are there if prohibited. know still few So areas a XX, driverless Slide

regulation conversations make markets? could sweeping under had these it regulators you've currently this easier that to restricted enter more administration for with potential if wondering I'm you for new So about into

Christopher Urmson

Yes.

other to is and that their think economy this approach ways it I of see we and that. And benefits want then think grow the that it. safety other that on One about with lever have and helping think the X impact and I is in we states, the states demonstrating roadway. the biggest will I value think,

actually We a standard a for patchwork regulations mitigate also push and operate we somewhat federal United help expect there's the would States. administration the this, set real with that of chance new that nationwide across -- will do that for in the

America time some reason for Duffy, have that in automated for this technology optimism but the the fair [ Congress talking we and of about also a talked the that safety to is his that And ] vehicles Secretary, why remarks actually before of bit for leader Transportation a importance about spent in be space.

sees there national for framework Ed the in he this. a talked being value about

the So a we're optimistic that of supporter this to administration strong technology. be will continue

Unknown Analyst

hear. operators? that And by wondering to about progressing question guess is with I vehicle X towards XXXX? single than operators operator? what great Like end should percentage things That's And is of then another how are how I'm shift change a single other

David Maday

to that operator. missions think the are the going to Yes. matter of I vehicle be Well, going are XXXX no end by

And question about that's missioning So a I continue that a we exciting. really thoughtful to testing sure really will be that be in making of safe the A and dual blend a to operate single of and the it's our way going operator. lot could the mission and on is think roadway.

the actually we even of track So don't internally missions. percentage

that. safety. I can't without impacting But on a again, share number really So about, it's unfortunately, efficiency internally operational

Unknown Analyst

in. I if could more Okay. Great. And then one just throw it

year. to about the speak increasing you the tens So of of end trucks capacity by

that? tens trucks bear us and could could maybe what the bull on Like bound of you help upper look So actually maybe of what's case like? frame the

David Maday

Yes. don't now. Justin share to anything additional, that that right we on know have I

focus for us mid-single-digit the the sequential I think, again, revenue. millions in I on growth would

I think important more that that's thing. kind of a

us, for think we're on again, the stage. early in the focused in really I execution

with be trucks For partners. for demand we launch to really lanes, we're the fill our more have to to demand going to as us continue is and going high, that

Operator

lines our you this time. at that for We today's your that and And that, conclude does with question. participation, And teleconference. disconnect was your thank may you final

Aurora Innovation (AUR) 12 Feb 252024 Q4 Earnings call transcript