Joby Q2 net loss widens as eVTOL manufacturer gears up for certification

Electric vertical take-off and landing (eVTOL) aircraft manufacturer Joby Aviation is still losing millions in its pursuit of becoming the United States first eVTOL air taxi route, but its investments are beginning to pay off.

Last month the Santa Cruz, California-based firm reported earnings for the second quarter of 2023, reflecting a net loss of $286 million. But the company's recent milestones, as well as its strong liquidity position of $1.2 billion in cash and short-term investments, hold promise for its planned entry into service in 2025. Joby's net loss 'reflected the loss on the revaluation of derivative liabilities of $181 million and operating expenses of $116 million, partly offset by interest and other income of $11 million,' the company said in a letter to shareholders. That is $236 million more than in Q2 2022 and a $173 million increase quarter over quarter. The company's net loss per share of 45 cents missed consensus analyst estimates by 30 cents.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) also fell $9.2 million year over year to $83 million, which Joby attributed to growing operating expenses. Those costs rose $16.3 million over the previous quarter to support employee expenses related to the certification and manufacture of its eVTOL. However, Joby did report a whopping $1.2 billion in cash and short-term investments at the end of the quarter. That is crucial because, like other air taxi manufacturers, it does not yet generate revenue. The company's strong cash position was buoyed by a $180 million investment from Baillie Gifford in May and a $100 million cash infusion from SK Telecom in June. So, while Joby's net loss widened, it has plenty of cash on hand to support its certification and manufacturing activities and in Q2, it made significant progress on both fronts.

Joby's Q2 highlights