Aurora Innovation, Inc. Q2 FY2025 earnings call

• Second quarter marked launch of first driverless commercial trucking operations in U.S., with over 20,000 safe driverless miles from end of April to end of June, and validation of night driverless operation. • Now has 3 driverless trucks operating between Dallas and Houston, with nearly 100% on-time performance. • Lane expansion plan on track, expecting to validate driverless operations between Fort Worth and El Paso, El Paso to Phoenix, and Fort Worth to Phoenix by end of year. • Terminal in Phoenix represents infrastructure-light approach. • Qualified leads surge for scaling ambitions in 2026 and 2027. • Partnerships with organizations like On The Road Garage for workforce development. • Working on second and third generation commercial hardware kits; second-gen kit expected to reduce hardware costs, with first vehicle build completed. • Progress with Continental on third-generation hardware kit, with finalization of integrated sensor pods and compute module design. • U.S. Representative introduced AMERICA DRIVES Act for self-driving trucks.

During the second quarter, Aurora began recognizing revenue from driverless and vehicle operator supervised commercial loads, totaling $1 million. The Aurora Driver achieved a record number of commercial miles driven. Operating loss including stock-based compensation was $230 million, excluding stock-based comp was $55 million. R&D totaled $146 million, SG&A was $25 million, and cost of revenue was $5 million.

• Expect quarterly cash use of $175 million to $185 million on average for remainder of 2025. • Liquidity of $1.3 billion in cash and short-term investments is expected to fund operations into second quarter of 2027. • Focus on expanding driverless operations and key cost reduction levers to support scaling and profitability ambitions.

• Uncertainties in business, markets, and economy. • Risks described in annual report on Form 10-K and other SEC filings. • Rising insurance costs, with 7.5% annual increase over last 5 years due to nuclear verdicts in freight industry.

Q: About Volvo Trucks, do you expect to be operating those trucks driverlessly by end of year and if there's additional incoming interest from commercial partners?

A: Yes, expect Volvo trucks by end of year but initially with observer; there's real excitement and lots of conversations with carriers and fleet operators.

Q: Early returns on wind and rain performance and FMCW technology manufacturing yields?

A: Safety first, validating and refining; FMCW development program on track, meaningful cost-down opportunity in FirstLight technology but no yield numbers shared.

Q: Near-term ramp-up of trucks in operation and rain/wind lessons?

A: Follow crawl, walk, run model; focus on capability expansion and mileage over trucks; not ready to launch in rain today but working towards end of year, LiDAR superior in challenging conditions.

Q: Catalysts for third quarter and back half, relationship with Uber?

A: Unlock Fort Worth to El Paso, etc., routes, finalizing validation for super single tires; Uber is partner, focused on ride hailing, near term disconnected but Uber Freight is pilot customer.

Q: Production relationship with PACCAR and removing safety observer?

A: Value relationship with PACCAR, trucks have prototype parts, removing observer correlates with PACCAR's autonomy-enabled truck platform launch; observer cost de minimis.

Q: Progress with next gen hardware and hardware in prototype trucks?

A: Second gen hardware coming online in 2026, third gen in 2027; prototype trucks have mix of existing first-gen, second-gen, and some third-gen components depending on need.