Joby ‘not looking to raise’ on back of $180m investment
Although Joby Aviation was not looking to raise funds, however an offer of $180m increased investment from long-term partner Baillie Gifford has been accepted.
Matt Field, chief financial officer, Joby said the firm is comfortable with the “robustness” of its balance sheet. “However, when Baillie Gifford an existing long term investor in Joby since 2020 reached out looking to increase their investment on behalf of their clients, we agreed that further strengthening our balance sheet was the right thing to do with an investor that is so closely aligned with our mission, ensures our long-term perspective.” Speaking on an investor call following the publication of first quarter (Q1) results, Field said the investment is expected to close in the coming days.
Joby incurred a net loss of $113m for Q1 2023, reflecting a loss from operations of nearly $100m and negative other income of about $14m. Other income from the quarter primarily reflected $22m in unfavourable revaluation from derivative liabilities, as the price of shares and warrants rose during the quarter, partly offset by net interest income of $8m.
Adjusted EBITDA loss of $75m came in about $6m higher than Q1 2022 reflecting increased staffing and cost to support certification. This was partly offset by increased payments from government contract deliverables, according to Field. “Our adjusted EBITDA loss was $2m less than the fourth quarter, reflecting primarily increased contract deliverables completed in the first quarter,” he said.
A global staff of around 1,460 employees continues to grow in order to support Joby’s certification and manufacturing efforts. Cash used in operating activities and purchases of property and equipment totalled $87m in Q1 2023. “And we remain on track with our full year target of between $360m to $380m,” added Field.
As of the end of the first quarter, Joby has $978m in cash and short-term marketable securities, which will be further increased by the investment announced today led by Baillie Gifford of approximately $180m.
Didier Papadopoulos, head of Aircraft OEM, Joby said: “We now have the three main aerostructures: the fuselage, tails and wings painted and assembled. The vast majority of the flight electronics have also been installed in the aircraft. The landing gear is ready to be installed and we have completed all the components for our six electronic propulsion units and a full set of battery modules built and investing.
“All the while, we’re making great progress in our integrated test lab where we’re now completing full system verification testing on our software, electronic and powertrain systems and flight testing. In other words, we’re right on track,” he added.