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The closing on a major investment deal for an autonomous vehicle developer will help fuel the cash coffers of the company until the launch of its self-driving trucking product in 2024.
Aurora Innovation Inc. announced the close on a sale of $220 million in Class A common stock as part of an underwritten public offering as well as the close of a $600 million concurrent private placement deal.
The $820 million in new capital now equips the company with the ability to sustain operations "well into 2025" and beyond the launch of its autonomous trucking product in late 2024, according to CEO and Co-Founder Chris Urmson.
"We’re all living through an uncertain time in the financial markets," Urmson said in a prepared statement. "Despite some thaw, investors continue to be very cautious with their clients’ money, wanting an extra degree of conviction to make a big bet. It’s part of why we’re proud to be able to raise the better part of a billion dollars to continue our mission. Investors see what we see – an incredible and unique opportunity to do something important and valuable in the world."
The investment comes at a pivotal time for the company, one that won't see significant revenue streams until the launch of its self-driving trucking product next year and the rollout of its self-driving passenger service in the years that follow.
In a Form 8-K with the SEC, Aurora disclosed it told buyers and investors in connection with the private placement that the company had $785 million in cash, cash equivalents and short-term investments as of June 30, 2023. It said the company estimates an average quarterly burn rate of $175 million to $185 million from Q3 2023 through "its planned commercial launch" of its autonomous trucking product, which is set to occur by Q4 2024, though that's a date that's already later than the timeline the company previously had for the product.
Aurora posted a $196 million net loss for Q1 2023 and it posted a $293 million net loss in Q4 2022, the latter of which saw the company announce that it had slowed hiring but that it wasn't expecting to issue layoffs in the near future. The company ended 2022 with a net loss of $1.7 billion.
"This capital raise represents a tremendous endorsement and the market’s faith in Aurora’s ability to deliver," Urmson said. "Our position continues to strengthen as we execute and build our coalition of partners."
Aurora went public on Nov. 4, 2021, and raised an estimated $2 billion from the process. It employs about 2,000 people across the U.S., about half of whom report to its headquarters on Smallman Street in the Strip District.