Aurora Innovation, Inc. has recently released its 10-K report, providing a detailed look into the company's financial condition and operations. The self-driving technology company, founded in 2017 and headquartered in Pittsburgh, Pennsylvania, is focused on developing the Aurora Driver, a platform that integrates self-driving hardware, software, and data services to adapt and interoperate various vehicle types and applications. The company aims to transform the global transportation market by creating an advanced and scalable self-driving system for multiple vehicle types and use cases, ultimately commercializing it in a Driver as a Service ("DaaS") business model.
In the 10-K report, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," provides insight into Aurora's financial performance. The report compares the twelve months ended December 31, 2024, to the same period in 2023, highlighting key financial metrics. Operating expenses decreased by $49 million, or 6%, to $786 million in 2024 from $835 million in 2023. Research and development expenses decreased by $40 million, or 6%, primarily driven by decreases in non-cash stock-based compensation, hardware costs for development fleets, and personnel costs. Selling, general and administrative expenses decreased by $9 million, or 8%, driven by decreases in insurance costs and other general and administrative costs.
The report also compares the twelve months ended December 31, 2023, to the same period in 2022, revealing significant changes in collaboration revenue, operating expenses, and other income (expense). Collaboration revenue decreased by $68 million, primarily due to the completion of a collaboration project plan with Toyota Motor Corporation. Operating expenses decreased by $1.085 billion, or 57%, primarily due to a decrease in research and development expenses and a significant decrease in goodwill impairment. Other income (expense) also saw notable changes, with the change in fair value of derivative liabilities resulting in an expense of $20 million in 2023, compared to income of $114 million in 2022.
In terms of liquidity and capital resources, as of December 31, 2024, Aurora had $211 million of cash and cash equivalents and $1.012 billion of short-term investments, exclusive of restricted cash of $16 million. The company expects its cash on hand and short-term investments to be sufficient to meet its working capital and capital expenditure requirements for at least twelve months from the date of the report.
The 10-K report also provides insights into cash flows, showing that net cash used in operating activities increased by $13 million in 2024 compared to 2023, primarily due to advanced payments for hardware materials for fleet builds. Net cash used in investing activities increased by $180 million in 2024, primarily due to net purchases of short-term investments. Net cash provided by financing activities decreased by $339 million in 2024, primarily due to lower net proceeds received from equity fundraising.
Today the company's shares have moved 8.2% to a price of $10.19. For the full picture, make sure to review Aurora Innovation's 10-K report.
