Aurora Innovation Inc
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
AUR$4.41+9.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0001828108-24-000127
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001828108-24-000140
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 43 previous paragraphs and 46 current paragraphs.
25 unchanged; 17 reworded; 4 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Recent Developments
Current report
Public Offering
Current report
On August 2, 2024, the Company completed a public offering (the “2024 Public Offering”) of approximately 134 million shares of Class A common stock at a price of $3.60 per share, for proceeds of $466 million, net of transaction costs, including the full exercise of the underwriters’ over-allotment option.
Current report
Net cash provided by financing activities was $475 million for the nine months ended September 30, 2024, a decrease of $352 million from $827 million for the nine months ended September 30, 2023, primarily due to lower net proceeds received from the 2024 Public Offering compared to the 2023 Public Offering and Private Placement.
Removed paragraphs (1)
Previous report
Net cash provided by financing activities was $6 million for the six months ended June 30, 2024 and net cash used in financing activities was $5 million for the six months ended June 30, 2023. Proceeds from the issuance of common stock upon the exercise of stock options increased in the six months ended June 30, 2024.
Reworded paragraphs (17)
Previous wording
Research and development decreased by $17 million, or 9%, to $170 million in the three months ended June 30, 2024 from $187 million in the three months ended June 30, 2023, primarily driven by a decrease in hardware costs for development fleets, as well as a decline in non-cash stock-based compensation. Research and development expenses included non-cash stock-based compensation of $32 million and $37 million in both the three months ended June 30, 2024 and 2023, respectively.
Current wording
Research and development decreased by $13 million, or 7%, to $169 million in the three months ended September 30, 2024 from $182 million in the three months ended September 30, 2023, primarily driven by a decrease in non-cash stock-based compensation, hardware costs for development fleets, and personnel costs. Research and development expenses included non-cash stock-based compensation of $30 million and $36 million in the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Selling, general and administrative decreased by $2 million, or 7%, to $28 million in the three months ended June 30, 2024 from $30 million in the three months ended June 30, 2023, primarily driven by decreases in personnel costs and other general and administrative costs. Selling, general and administrative included non-cash stock-based compensation of $6 million in both the three months ended June 30, 2024 and 2023.
Current wording
Selling, general and administrative decreased by $3 million, or 10%, to $27 million in the three months ended September 30, 2024 from $30 million in the three months ended September 30, 2023, primarily driven by decreases in personnel costs and other general and administrative costs. Selling, general and administrative included non-cash stock-based compensation of $5 million in the three months ended September 30, 2024 and 2023.
Previous wording
The change in fair value of derivative liabilities was income of $1 million and expense of $10 million in the three months ended June 30, 2024 and 2023, respectively, primarily due to the change in the market price for the underlying instrument during each period.
Current wording
The change in fair value of derivative liabilities was expense of $28 million and income of $5 million in the three months ended September 30, 2024 and 2023, respectively, primarily due to the change in the market price for the underlying instrument during each period.
Previous wording
Other income, net was $31 million in the six months ended June 30, 2024, compared to $23 million in the six months ended June 30, 2023, primarily due to an increase in interest income earned on cash equivalents and investments.
Current wording
Other income, net decreased by $1 million, or 6%, to $16 million in the three months ended September 30, 2024, from $17 million in the three months ended September 30, 2023, primarily due to a decrease in interest income earned on cash equivalents and investments.
Previous wording
Comparison of the Six Months Ended June 30, 2024 to the Six Months Ended June 30, 2023
Current wording
Comparison of the Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2023
Previous wording
Research and development expenses decreased by $28 million, or 8%, to $336 million in the six months ended June 30, 2024 from $364 million in the six months ended June 30, 2023, primarily driven by a decrease in hardware costs for development fleets, as well as a decline in non-cash stock-based compensation. Research and development expenses included non-cash stock-based compensation of $63 million and $71 million in both the six months ended June 30, 2024 and 2023, respectively.
Current wording
Research and development expenses decreased by $41 million, or 8%, to $505 million in the nine months ended September 30, 2024 from $546 million in the nine months ended September 30, 2023, primarily driven by decreases in hardware costs for development fleets, non-cash stock-based compensation, and personnel costs. Research and development expenses included non-cash stock-based compensation of $93 million and $107 million in the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Selling, general and administrative expenses decreased by $6 million, or 10%, to $55 million in the six months ended June 30, 2024 from $61 million in the six months ended June 30, 2023 primarily driven by decreases in personnel costs and other general and administrative costs. Selling, general and administrative expenses included non-cash stock-based compensation of $11 million in both the six months ended June 30, 2024 and 2023.
Current wording
Selling, general and administrative expenses decreased by $9 million, or 10%, to $82 million in the nine months ended September 30, 2024 from $91 million in the nine months ended September 30, 2023 primarily driven by decreases in personnel costs and other general and administrative costs. Selling, general and administrative expenses included non-cash stock-based compensation of $16 million in the nine months ended September 30, 2024 and 2023.
Previous wording
The change in fair value of derivative liabilities resulted in an income of $13 million and expense of $12 million in the six months ended June 30, 2024 and 2023, respectively, primarily due to the change in the market price for the underlying instrument.
Current wording
The change in fair value of derivative liabilities resulted in an expense of $15 million and $7 million in the nine months ended September 30, 2024 and 2023, respectively, primarily due to the change in the market price for the underlying instrument.
Previous wording
Other income, net increased by $6 million, or 67%, to $15 million in the three months ended June 30, 2024, from $9 million in the three months ended June 30, 2023, primarily due to an increase in interest income earned on cash equivalents and investments.
Current wording
Other income, net increased by $7 million, or 18%, to $47 million in the nine months ended September 30, 2024, from $40 million in the nine months ended September 30, 2023, primarily due to an increase in interest income earned on cash equivalents and investments.
Previous wording
As of June 30, 2024, our principal sources of liquidity were $402 million of cash and cash equivalents, and $618 million of short-term investments, exclusive of restricted cash of $17 million. Short-term investments consist of primarily U.S. Treasury securities as well as corporate bonds and commercial paper.
Current wording
As of September 30, 2024, our principal sources of liquidity were $263 million of cash and cash equivalents, $985 million of short-term investments, and $104 million of long-term investments with maturities within 2 years, exclusive of restricted cash of $16 million. Short-term and long-term investments consist of primarily U.S. Treasury securities as well as corporate bonds and commercial paper.
Previous wording
We have incurred negative cash flows from operating activities and significant losses from operations in the past. We expect to continue to incur operating losses and that we will need to opportunistically raise additional capital to support the continued development and commercialization of the Aurora Driver. We expect our total liquidity will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from the date of this Quarterly Report. Management will continue to evaluate the timing and nature of discretionary operating expenses, as necessary.
Current wording
We have incurred negative cash flows from operating activities and significant losses from operations in the past. We expect to continue to incur operating losses and that we will need to opportunistically raise additional capital to support the continued development and commercialization of the Aurora Driver. During the third quarter of 2024, we raised $483 million in equity capital from the 2024 Public Offering, receiving net proceeds of $466 million after transaction costs. During the third quarter of 2023, we raised $853 million in equity capital from a public offering and concurrent private placement, receiving net proceeds of $828 million after transaction costs. We expect our total liquidity will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from the date of this Quarterly Report. Management will continue to evaluate the timing and nature of discretionary operating expenses, as necessary.
Previous wording
Worldwide economic conditions remain uncertain, particularly increased inflation. The general economic and capital market conditions both in the U.S. and worldwide, have been volatile in the past. The capital and credit markets may not be available to support future capital raising activity on favorable terms. If economic conditions decline, our future cost of equity or debt capital and access to the capital markets could be adversely affected.
Current wording
Worldwide economic conditions remain uncertain, including inflation volatility. The general economic and capital market conditions both in the U.S. and worldwide, have been volatile in the past. The capital and credit markets may not be available to support future capital raising activity on favorable terms. If economic conditions decline, our future cost of equity or debt capital and access to the capital markets could be adversely affected.
Previous wording
Net cash used in operating activities was $326 million for the six months ended June 30, 2024, an increase of $8 million from $318 million for the six months ended June 30, 2023 primarily due to advanced payments for hardware materials for fleet builds.
Current wording
Net cash used in operating activities was $469 million for the nine months ended September 30, 2024, an increase of $4 million from $465 million for the nine months ended September 30, 2023 primarily due to advanced payments for hardware materials for fleet builds partially offset by decreases in other operating expenditures.
Previous wording
Cash Flows Provided by Investing Activities
Current wording
Cash Flows (Used in) Provided by Investing Activities
Previous wording
Net cash provided by investing activities was $221 million for the six months ended June 30, 2024, a decrease of $7 million from $228 million for the six months ended June 30, 2023 primarily due to increased purchases of property and equipment for commercial fleet builds, partially offset by an increase in cash received from net maturities of investments.
Current wording
Net cash used in investing activities was $245 million for the nine months ended September 30, 2024 compared to net cash provided by investing activities of $332 million for the nine months ended September 30, 2023. The change was primarily due to increased purchases and fewer maturities of short-term investments, as well as increased purchases of property and equipment for commercial fleet builds.
Previous wording
Cash Flows Provided by (Used in) Financing Activities
Current wording
Cash Flows Provided by Financing Activities
Previous wording
Aurora may be party to various claims within the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. We assess the need to record a liability for litigation and other loss contingencies, with reserve estimates recorded if we determine that a loss related to the matter is both probable and reasonably estimable. No material losses were recorded in the three and six months ended June 30, 2024 and 2023.
Current wording
Aurora may be party to various claims within the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. We assess the need to record a liability for litigation and other loss contingencies, with reserve estimates recorded if we determine that a loss related to the matter is both probable and reasonably estimable. No material losses were recorded in the three and nine months ended September 30, 2024 and 2023.