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Aurora Innovation (AUR)
NASDAQ:AUR
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Aurora Innovation
(NASDAQ:AUR)
55Neutral
Positive Factors
Market Expansion
Aurora Innovation's stock has significantly increased, indicating growing market recognition of their leadership in autonomous technology.
Strategic Partnerships
The partnership between Aurora and Volvo is built on co-development, complementing and supporting one another to form a unique solution.
Technology Leadership
Aurora Innovation is positioned at the forefront of autonomous trucking with arguably the most sophisticated on-highway, Class 8 autonomous solution among peers.
Negative Factors
Capital Requirements
Aurora needs more capital before it can reach self-funding status.
Launch Risks
There is still some risk that the commercial launch date for Aurora's autonomous services could slip, though management has minimized this risk to a short timeframe.
Operational Challenges
Scaling may prove challenging for Aurora despite having experienced partners.
Aurora Innovation (AUR) vs. S&P 500 (SPY)
Market Cap
$14.38B
Dividend YieldN/A
Average Volume (3M)14.08M
Price to Earnings (P/E)―
Beta (1Y)2.66
Revenue GrowthN/A
EPS Growth24.41%
CountryUS
Employees1,800
SectorTechnology
Sector Strength68
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.46
Shares Outstanding1,416,790,900
10 Day Avg. Volume14,003,780
30 Day Avg. Volume14,079,799
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.68
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.25Price Target Upside25.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Aurora Innovation Business Overview & Revenue Model
Company DescriptionAurora Innovation, Inc. operates as a self-driving technology company in the United States. It focuses on developing Aurora Driver, a platform that brings a suite of self-driving hardware, software, and data services together to adapt and interoperate passenger vehicles, light commercial vehicles, and trucks. The company was founded in 2017 and is headquartered in Pittsburgh, Pennsylvania.
How the Company Makes MoneyAurora Innovation makes money through partnerships and collaborations with automotive manufacturers and logistics companies to integrate its autonomous driving technology into their vehicles. The company licenses its Aurora Driver platform to these partners, who use it to enhance the capabilities of their fleets. Revenue is also generated through pilot programs, where Aurora collaborates with clients to test and refine its technology in real-world scenarios. Additionally, significant partnerships with companies in the transportation sector contribute to its earnings by providing access to extensive data and operational insights that further enhance the development and deployment of its autonomous systems.
Aurora Innovation Financial Statement Overview
Summary
Aurora Innovation's financial performance is heavily challenged with no revenue and significant losses. The income statement shows consistent negative EBIT and a net loss of $748 million in 2024. Despite a strong equity position on the balance sheet, the negative cash flow and reliance on financing activities underline financial instability.Income Statement
Aurora Innovation's income statement reveals significant challenges with no revenue reported in 2023 and 2024, following a sharp decline from previous years. The company has been consistently operating at a loss with negative EBIT and EBITDA figures, and a net loss of $748 million in 2024. This indicates severe profitability issues and an inability to generate revenue, which are critical concerns for financial health.20
Very Negative
Balance Sheet
The balance sheet shows a strong equity position with stockholders' equity of $1.875 billion in 2024, indicating financial stability. The debt-to-equity ratio remains low, suggesting limited leverage, which is positive. However, the equity ratio is declining due to decreasing total assets, and the company has been unable to generate significant revenue to support asset growth.55
Neutral
Cash Flow
Cash flow analysis indicates negative free cash flow of $645 million in 2024, worsening from previous years. Operating cash flow remains negative, reflecting ongoing operational difficulties. The company has been reliant on financing activities to support cash flow, highlighting potential sustainability concerns if this trend continues without revenue improvements.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 68.00M | 82.54M | 0.00 | Gross Profit |
| 0.00 | -716.00M | 18.00M | -614.46M | -17.23M | EBIT |
| -786.00M | -835.00M | 262.00M | -730.66M | -218.12M | EBITDA |
| -786.00M | -748.00M | -716.00M | -718.95M | -197.22M | Net Income Common Stockholders |
| -748.00M | -796.00M | -2.71B | -755.45M | -214.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.22B | 1.20B | 1.10B | 1.61B | 387.35M | Total Assets |
| 2.14B | 2.23B | 2.00B | 3.69B | 618.88M | Total Debt |
| 121.00M | 122.00M | 136.00M | 146.82M | 103.83M | Net Debt |
| -90.00M | -379.00M | -126.00M | -1.46B | -283.51M | Total Liabilities |
| 263.00M | 250.00M | 217.00M | 348.38M | 895.46M | Stockholders Equity |
| 1.88B | 1.99B | 1.78B | 3.34B | -276.58M |
| Cash Flow | Free Cash Flow | |||
| -645.00M | -613.00M | -523.00M | -611.34M | -198.57M | Operating Cash Flow |
| -611.00M | -598.00M | -508.00M | -563.29M | -191.88M | Investing Cash Flow |
| -172.00M | 8.00M | -852.00M | 249.88M | 343.29M | Financing Cash Flow |
| 492.00M | 831.00M | 11.00M | 1.54B | 1.45M |
Aurora Innovation Technical Analysis
Positive
8.14
Price Trends
6.78
Positive
7.02
Positive
6.05
Positive
Market Momentum
0.19
Negative
64.51
Neutral
80.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUR, the sentiment is Positive. The current price of 8.14 is above the 20-day moving average (MA) of 6.47, above the 50-day MA of 6.78, and above the 200-day MA of 6.05, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 80.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AUR.
Aurora Innovation Risk Analysis
Aurora Innovation disclosed 67 risk factors in its most recent earnings report. Aurora Innovation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aurora Innovation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $13.22B | 60.32 | 24.39% | 0.57% | 10.15% | -28.62% | |
78 Outperform | $14.17B | 461.43 | 3.51% | ― | 33.21% | ― | |
71 Outperform | $11.14B | 52.28 | 89.60% | ― | 9.18% | 14.35% | |
70 Outperform | $12.06B | 25.29 | 10.66% | ― | 4.70% | -7.33% | |
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
55 Neutral | $14.38B | ― | -38.76% | ― | ― | 24.41% | |
46 Neutral | $10.41B | ― | -11.15% | ― | 23.16% | -9.81% |
* Technology Sector Average
Performance Comparison
AUR
Aurora Innovation
8.14
4.81
144.44%
AKAM
Akamai
82.54
-18.54
-18.34%
MANH
Manhattan Associates
183.41
-29.98
-14.05%
BSY
Bentley Systems
43.66
-9.60
-18.02%
MNDY
Monday.com
279.12
84.58
43.48%
SAIL
SailPoint, Inc.
18.70
-5.85
-23.83%
Aurora Innovation Earnings Call Summary
Earnings Call Date:Feb 12, 2025
(Q4-2024)
| % Change Since: 26.20%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Aurora's significant progress towards its commercial launch, financial discipline, strategic partnerships, and regulatory optimism, alongside challenges with regulatory restrictions and modest initial revenue expectations. The positive aspects notably outweigh the challenges, painting an optimistic picture for Aurora's future.Q4-2024 Updates
Positive Updates
Progress Towards Commercial Launch
Aurora is nearing the culmination of years of innovation with a planned commercial launch in April. The company has reached 99% ARM for the Dallas to Houston launch lane and has been approaching 90% API loads since mid-October.
Strong Financial Position
Aurora has demonstrated strong financial discipline with operating expenses totaling $199 million in Q4, including stock-based compensation. The company ended the year with over $1.2 billion in cash and short-term investments.
Strategic Partnerships
Aurora announced a 3-way partnership with NVIDIA and Continental, which will enable scaling and deployment at a larger scale. The partnership will integrate NVIDIA's DRIVE Thor system-on-a-chip into Aurora's hardware kit.
Regulatory Support
The U.S. federal government allows driverless deployment, and Aurora is optimistic about the new Presidential administration's support for innovation and a nationwide framework for self-driving vehicles.
Sustainability and Efficiency
Aurora's autonomous trucks are achieving fuel efficiency 15% above the industry average, with potential to reduce fuel use and emissions by up to 32%.
Negative Updates
FMCSA Petition Rejection
The FMCSA rejected Aurora's petition to allow trucks to have flashing lights when stopped, a decision Aurora believes is wrong and is petitioning to be reassessed.
Modest Revenue Expectations for 2025
Aurora expects 2025 revenue to be modest, in the mid-single-digit millions, due to a deliberate crawl-walk-run approach to launch.
Regulatory Restrictions in Some States
Autonomous trucking is still prohibited in some U.S. states, and while Aurora is optimistic about national regulation, the current patchwork of state laws poses challenges.
Company Guidance
In the recent Aurora Innovations Fourth Quarter 2024 Business Review Call, the company provided comprehensive guidance for the upcoming year. Aurora plans to launch its first driverless trucks for commercial operations between Dallas and Houston in April 2025, a significant milestone reflecting years of innovation. The company is targeting a 90% rate for 100% API loads by commercial launch, indicating readiness for operations without on-site support. Financially, Aurora demonstrated strong discipline, with 2024 operating expenses totaling $199 million, inclusive of stock-based compensation, and ended the year with over $1.2 billion in liquidity, projected to support operations into the second half of 2026. The company expects a cautious revenue ramp throughout 2025, with projected revenue in the mid-single-digit millions. Aurora's strategic partnerships, notably with NVIDIA and Continental, are set to enhance scalability and cost efficiency, with the second-generation hardware kit anticipated to reduce costs significantly. The company emphasized its readiness to capitalize on supportive regulatory environments and its strategic focus on safety, scalability, and financial prudence to maintain leadership in autonomous trucking.Aurora Innovation Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Aurora Innovation Launches Self-Driving Trucking Service in Texas
Positive
May 1, 2025
On May 1, 2025, Aurora Innovation launched its commercial self-driving trucking service in Texas, marking a significant milestone as the first company to deploy a self-driving Class 8 trucking service in the U.S. The service, which operates driverless hauls between Dallas and Houston, aims to address challenges in the trillion-dollar trucking industry, such as driver shortages and high operational costs, by offering a reliable and safe autonomous solution. Aurora plans to expand this service to El Paso, Texas, and Phoenix, Arizona, by the end of 2025, further strengthening its position in the market and potentially transforming logistics and supply chain operations.
Spark’s Take on AUR Stock
According to Spark, TipRanks’ AI Analyst, AUR is a Neutral.
Aurora Innovation’s overall stock score of 50 reflects significant financial challenges, with no recent revenue generation and ongoing cash flow issues being major concerns. However, the earnings call presents a more optimistic future with strategic partnerships, regulatory support, and a planned commercial launch in 2025. The technical indicators are mixed, and valuation remains difficult due to the company’s current financial standing. The most pressing issues are financial performance and the need to generate revenue, while the upcoming milestones and potential in autonomous trucking provide a positive outlook.
To see Spark’s full report on AUR stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.