Joby Aviation, Inc. (NYSE: JOBY), a California-based company developing all-electric aircraft for commercial passenger service, announced its financial results for the fourth quarter and full year 2022 on February 22nd 2pm Pacific Time. Below are a few excerpts from the 15 page shareholder letter. Please visit the Joby investor relations website https://ir.jobyaviation.com/ to view the entire fourth quarter 2022 shareholder letter.

Strong Financial Foundation

At the end of the fourth quarter of 2022, we had $1.1 billion in cash and short-term investments, including Delta’s upfront equity investment of $60 million received in the quarter.  Net cash used in operating activities and purchases of property and equipment totaled $291 million in 2022, with $84 million spent in the fourth quarter.  In the quarter, we acquired land and facilities in Santa Cruz for $25.5 million to support Joby’s long-term growth.

Net Loss

Our net loss of $66.9 million reflected operating expenses of $101.4 million partially offset by other income of $34.5 million.  Operating expenses reflected primarily our continued progress certifying the aircraft and early manufacturing operations and included stock-based compensation expenses of $17.2 million. Other income included a favorable revaluation of derivative liabilities worth $25.9 million and interest income on our investments.

Adjusted EBITDA

Adjusted EBITDA loss of $77.6 million largely reflected our operating expenses excluding depreciation, amortization and stock-based compensation.

Fourth Quarter 2022 Financial Summary

In the fourth quarter of 2022, our net loss of $66.9 million reflected operating expenses to support continued growth, totaling $101.4 million, partly offset by other income of $34.5 million. The net loss in the fourth quarter of 2022 was $72.0 million lower when compared with our income in the fourth quarter of 2021 and $12.3 million lower than in the prior quarter. The reduction in net income compared with 2021 primarily reflected higher operating expenses of $24.2 million, lower other income of $37.2 million, and the non-recurrence of one-time tax-related adjustments of $10.6 million. The reduction in other income primarily reflected a lower favorable revaluation of derivative liabilities partly offset by higher interest income on our short-term investments. Compared with the third quarter, our net loss was $12.3 million lower, reflecting higher operating expense of $4.2 million offset by higher other income of $16.6 million.  Increased operating expenses primarily reflected higher personnel-related expenses, including stockbased compensation. Other income was higher than in the prior quarter, largely reflecting a higher favorable revaluation of derivative liabilities. Our operating expenses primarily reflect personnel and material spending to support our development and certification activities, early manufacturing operations, initial investments in commercialization, and administrative costs. Operating expenses for the quarter also included stock-based compensation of $17.2 million, including performance-based incentives introduced in 2022, and depreciation and amortization.

Research and development costs of $76.1 million reflected continued certification activities and early manufacturing operations. Selling, general & administrative expenses were $25.2 million for the quarter. Other income of $34.5 million reflected primarily a gain from the change in the fair market valuation of derivative liabilities of $25.9 million and net interest and other income of $8.1 million.

Adjusted EBITDA in the fourth quarter of 2022 was a loss of $77.6 million, primarily reflecting employee costs associated with the development, certification and manufacturing of the aircraft. Adjusted EBITDA loss was $12.4 million higher than in the fourth quarter of 2021 and $0.1 million lower than the prior quarter. Adjusted EBITDA is a non-GAAP metric that excludes the gain from the revaluation of our derivative liabilities, stockbased compensation expense, depreciation and amortization, interest income and expense, income from equity-method investments, and other non-operating costs. Please see the section titled “Non-GAAP Financial Measures” for a reconciliation of Net Income to Adjusted EBITDA.

Our balance sheet provides a strong financial foundation to support our long-term goals. We ended the fourth quarter of 2022 with $1.1 billion in cash, cash equivalents, restricted cash, and investments in marketable securities. Net cash used in operating activities and purchases of property and equipment totaled $290.8 million in 2022, with $83.6 million spent in the fourth quarter.  Capital expenditure of $30.5 million in the fourth quarter included the acquisition of land and facilities in Santa Cruz, California, which will support Joby’s long-term growth, totaling $25.5 million. Our cash balance includes cash from Delta’s equity investment totaling $60 million which was received in the fourth quarter. 2023 Outlook In 2023, our primary focus will remain on certification, manufacturing and our support for Department of Defense contract obligations. We will continue to grow our team as required, reflecting certification efforts and manufacturing. Building more aircraft and test articles also will require increased spending on material. Overall capital expenditure is expected to be below 2022, primarily reflecting the non-recurrence of acquiring our Santa Cruz facility. Total 2023 net cash used in operating activities and purchases of property and equipment is expected to range from $360 to $380 million.

About Joby Aviation

Joby Aviation, Inc. (NYSE:JOBY) is a California-based transportation company developing an all-electric vertical take-off and landing aircraft which it intends to operate as part of a fast, quiet, and convenient service in cities around the world. To learn more, visit www.jobyaviation.com.