Company Overview - Blade Air Mobility, Inc. is a technology-powered air mobility platform that provides air transportation and logistics services, particularly for hospitals in the U.S. and for passengers in the Northeast U.S. and Southern Europe [2] - The company is one of the largest transporters of human organs for transplant and operates an asset-light model with exclusive passenger terminal infrastructure and proprietary technologies [2] Upcoming Events - Rob Wiesenthal, the CEO of Blade, will present at the 2025 J.P. Morgan Industrials Conference on March 13, 2025, at 9:45 am ET, with a webcast available for investors [1] Business Model and Technology - Blade's business model is designed to facilitate a seamless transition from traditional air transport methods to Electric Vertical Aircraft (EVA or eVTOL), aiming for lower-cost, quiet, and emission-free air mobility [2]

Company Overview - Blade Air Mobility, Inc. is a provider of air transportation and logistics services, primarily for hospitals in the United States, and is one of the largest transporters of human organs for transplant [3] - The company offers helicopter and fixed-wing services mainly in the Northeast United States and Southern Europe, operating an asset-light model with exclusive passenger terminal infrastructure and proprietary technologies [3] Financial Results Announcement - Blade will release its financial results for the fourth quarter and calendar year ended December 31, 2024, on March 13, 2025, before the market opens [1] - A conference call will be held on the same day at 8:00 am Eastern Time, hosted by the CEO Rob Wiesenthal and CFO Will Heyburn, which will include a question-and-answer session [1] Accessing Information - Interested parties can register to join the live call and access an audio-only webcast from the Investors section of the company's website [2] - A replay of the webcast will be available for one year [2]

Core Viewpoint - Blade Air Mobility (NASDAQ: BLDE) is identified as a potentially overlooked investment opportunity, supported by strong fundamentals and growth potential in urban mobility transportation [2]. Company Overview - Blade operates in two segments: Passenger and Medical, providing short-distance travel services (helicopter and seaplane) under 100 miles across the U.S., Canada, and Europe [3]. Financial Performance - As of the last trading session, BLDE was valued at $3.75, with a 4.75% increase, although it has seen a year-to-date decline of nearly 12% [4]. - In Q3 2024, Blade reported $74.9 million in revenue, a 4.8% increase from the previous quarter, but incurred a net loss of $1.95 million, contrasting with a profit of $267,000 in Q3 2023 [6]. - Earnings per share (EPS) showed a loss of $0.025, down from a profit of $0.004 the previous year, yet outperformed analyst expectations by 38% [6][7]. Growth Potential - Blade's projected annual revenue growth of 7.9% over the next three years exceeds the industry average of 7.6%, indicating resilience despite profitability challenges [7]. - Expansion into new markets and Electric Vertical Aircraft (EVAs) presents additional growth opportunities, with 84% of revenue currently generated in the U.S. [8]. - The organ transplant segment is highlighted as a significant growth driver, as Blade is one of the largest dedicated air transporters of human organs in the U.S. [9]. Market Sentiment - Analysts project a strong rally for BLDE stock over the next 12 months, with a price target of $6, indicating a 60% upside from its last trading price [10]. - The stock has received a bullish rating from JPMorgan, which has an 'Overweight' rating on BLDE, and notable investment from Cathie Wood of Ark Invest [11]. Insider Activity - Recent insider sales by CFO William Heyburn and CEO Robert Wiesenthal may raise concerns, but these transactions were executed under a Rule 10b5-1 trading plan, suggesting they were pre-planned [12].

Company Overview - Blade Air Mobility, Inc. is a technology-powered air mobility platform that provides air transportation and logistics for hospitals across the United States, being one of the largest transporters of human organs for transplant [2] - The company offers helicopter and fixed-wing services primarily in the Northeast United States and Southern Europe, operating an asset-light model with exclusive passenger terminal infrastructure and proprietary technologies [2] - Blade aims to facilitate a seamless transition to Electric Vertical Aircraft (EVA or eVTOL), promoting lower-cost air mobility that is both quiet and emission-free [2] Upcoming Events - Will Heyburn, the Chief Financial Officer of Blade, will present at the 27th Annual Needham Growth Conference on January 14, 2025, at 11:45 am ET, with a webcast available for investors [1]

Industry Overview - Helicopters are essential in modern transportation, including urban air mobility, emergency medical services, and defense missions, but face significant challenges due to vibrations from rotary systems [1] - Excessive vibrations can lead to structural fatigue, increased maintenance costs, reduced passenger comfort, and operational inefficiencies, impacting overall mission success [1] - The U.S. vibration control system market is projected to reach approximately $1.62 billion by 2033, with a CAGR of 6.7% from 2024 to 2033, driven by advancements in sensors and data analytics [1][15] Company Developments - KULR Technology Group is collaborating with the U.S. Army to evaluate its VIBE system for vibration reduction on AH-64E Apache and UH-60 Black Hawk helicopters, aiming to enhance operational efficiency and safety [9][10] - KULR's previous work with the U.S. Marine Corps on the AH-1Z Viper resulted in significant cost savings and operational improvements, demonstrating the company's commitment to military aviation [3][16] - Blade Air Mobility reported achieving positive Segment Adjusted EBITDA for its Passenger Business ahead of schedule, attributing this to strong customer demand and strategic restructuring [4] - Joby Aviation is in the final phase of certification for its electric air taxi, having conducted FAA testing to validate flight safety and performance [6][19] - Embraer and Viasat are collaborating to integrate advanced hybrid satellite communications capabilities on the C-390 Millennium military aircraft, enhancing operational awareness and connectivity [12][18]

Company Overview - Blade Air Mobility (NASDAQ: BLDE) operates in the aviation industry as an alternative player to legacy aircraft OEMs, founded in 2014 and headquartered in New York City [1] Investment Philosophy - The investment philosophy emphasizes the joy of compounding, the value of dividend reinvesting, and the principle that patient investing through good and bad times yields the greatest rewards [1] - The approach combines steady accumulation of high-quality assets with high-risk/high-reward opportunities, underappreciated turnaround plays, and transformative technologies [1] Analyst Position - The analyst holds a beneficial long position in the shares of BLDE, UBER, and JOBY through stock ownership, options, or other derivatives [2]

Operational Performance - Blade reported a total of 45,977 seats flown in the three months ended September 30, 2024, a decrease of 9.5% from 50,821 seats flown in the same period of 2023[128]. - For the nine months ended September 30, 2024, Blade recorded 117,722 seats flown, down 2.0% from 121,008 seats flown in the nine months ended September 30, 2023[128]. - The company has experienced significant seasonality in its Passenger segment, with flight volume peaking during the summer travel season[150]. Revenue Growth - Revenue for the three months ended September 30, 2024, increased by $3.4 million or 5%, from $71.4 million in 2023 to $74.9 million in 2024[163]. - Total revenue for the nine months ended September 30, 2024, increased by $16.6 million or 9%, from $177.7 million in 2023 to $194.3 million in 2024[167]. - MediMobility Organ Transport revenue for the nine months ended September 30, 2024, increased by $15.8 million or 17%, driven by new hospital clients and higher revenue from existing clients[170]. - Passenger revenue for Q3 2024 increased by $0.8 million or 2% to $38.8 million compared to $38.0 million in Q3 2023[198]. - Medical revenue for Q3 2024 increased by $2.6 million or 8% to $36.1 million compared to $33.4 million in Q3 2023[201]. - Medical revenue for the nine months ended September 30, 2024 increased by $15.8 million or 17% to $110.4 million compared to $94.6 million in the same period of 2023[203]. Cost Management - Cost of revenue for the three months ended September 30, 2024, decreased by 1% to $55.0 million, with a percentage of revenue at 74% compared to 78% in 2023[172]. - Cost of revenue as a percentage of revenues decreased by 5 percentage points from 81% in 2023 to 76% in 2024, attributed to improved pricing and load factors[176]. - Cost of revenue as a percentage of revenues decreased by 4 percentage points from 78% in 2023 to 74% in 2024, primarily due to a mix-shift to dedicated aircraft in the Medical segment[174]. - Software development costs decreased by $0.3 million, or 26%, from $1.1 million in 2023 to $0.8 million in 2024, attributed to software capitalization of development costs[178]. Profitability Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $4.18 million, compared to $0.79 million for the same period in 2023[217]. - Flight Profit for Q3 2024 increased by $4.3 million or 27% to $19.8 million compared to $15.6 million in Q3 2023[208]. - Flight Margin increased from 21.8% in Q3 2023 to 26.5% in Q3 2024, driven by lower effective cost of revenue per flight[210]. - Medical Adjusted EBITDA for the nine months ended September 30, 2024 increased by $5.5 million or 67% to $13.8 million compared to $8.2 million in the same period of 2023[204]. Financial Position - The company had total liquidity of $136.3 million as of September 30, 2024, down from $166.1 million as of December 31, 2023[224]. - Net working capital as of September 30, 2024, was $144.6 million, with zero debt reported[225]. - The company incurred net losses of $17.51 million and $22.14 million for the nine months ended September 30, 2024, and 2023, respectively[225]. Strategic Initiatives - The company operates an asset-light model, primarily utilizing third-party aircraft, which allows for predictable margins and reduced operational costs[130]. - Blade's proprietary technology stack enables real-time tracking of organ transports and passenger flights, enhancing operational efficiency and scalability[134]. - The transition to Electric Vertical Aircraft (EVA) is expected to lower operating costs and facilitate the development of new vertiport infrastructure[135]. - The introduction of new routes and expansion into dense urban areas is a key growth strategy, although success is uncertain and may require regulatory approvals[144]. - Blade's marketing strategies and investments are crucial for attracting and retaining fliers, as competition in urban air mobility services intensifies[136]. Expenses Overview - General and administrative expenses increased by $1.1 million, or 6%, from $19.3 million in 2023 to $20.4 million in 2024, driven by a $2.1 million increase in stock-based compensation[182]. - Selling and marketing expenses decreased by $0.5 million, or 20%, from $2.7 million in 2023 to $2.2 million in 2024, primarily due to a decrease in cash commissions in the Medical segment[187]. - General and administrative expenses for the nine months increased by $8.8 million, or 16%, from $53.9 million in 2023 to $62.8 million in 2024, influenced by a $6.5 million increase in stock-based compensation[184]. - Selling and marketing expenses for the nine months decreased by $1.3 million, or 17%, from $8.0 million in 2023 to $6.7 million in 2024, mainly due to reduced media spend[188]. Cash Flow and Investments - Cash used in operating activities for the nine months ended September 30, 2024, was $0.77 million, significantly improved from $23.03 million in the same period of 2023[231]. - The company incurred $2.1 million in purchases of property and equipment, primarily for leasehold improvements and vehicles used in the Medical segment[235]. - For the nine months ended September 30, 2024, net cash used in financing activities was $1.9 million, reflecting $1.8 million for payroll tax payments on behalf of employees[237]. Market and Risk Management - The company has not reported any material changes in market risk as of September 30, 2024[241]. - There have been no material changes to the company's significant accounting policies and estimates as of September 30, 2024[240]. - The company continues to base its estimates on historical experience and various reasonable assumptions under the circumstances[239].

Financial Data and Key Metrics Changes - Blade Air Mobility achieved a significant milestone with positive segment adjusted EBITDA in the passenger business for the trailing twelve months ending September 30, 2024, a year ahead of previous guidance [9] - Flight profit increased by 27.3% year-over-year, with adjusted EBITDA rising to $4.2 million, up more than fivefold from $0.8 million in the prior year [10] - Operating cash flow was $6.4 million, and free cash flow before aircraft acquisitions was $3.7 million for the quarter [10][11] Business Line Data and Key Metrics Changes - Passenger segment adjusted EBITDA doubled compared to the prior period, with flight profit rising 31% year-over-year and adjusted EBITDA margin increasing to 14.4% from 7.3% [12][13] - Medical segment adjusted EBITDA improved by 15.1% year-over-year, with margins expanding 70 basis points despite a softer quarter for US organ transplant volumes [20][39] Market Data and Key Metrics Changes - Short distance revenue for Q3 2024 increased by 6.5% year-over-year, or 9.8% excluding discontinued Canadian operations [33] - Medical revenue rose 7.8% year-over-year to $36.1 million, although it fell 5.9% sequentially compared to Q2 2024 [35] Company Strategy and Development Direction - Blade is focused on maximizing cost efficiencies across passenger operations, with year-to-date segment adjusted SG&A falling approximately 6% compared to the same period in 2023 [15] - The company is transitioning to Electric Vertical Aircraft (eVTOL) and aims to create an urban air mobility platform that operates profitably at scale using conventional aircraft [16][17] - Blade's strategy includes exiting unprofitable business lines and focusing on routes with attractive growth and profitability characteristics [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth opportunities for the medical business, driven by increasing organ transplant volumes and market share gains [21] - The company expects a rebound in medical segment revenue and margins in Q4 2024, driven by increased volumes and normalization of maintenance downtime [42][53] Other Important Information - Blade ended the quarter with no debt and $136 million in cash and short-term investments, providing flexibility for strategic investments [51] - The company completed a tuck-in acquisition in the medical segment to expand its ground vehicle network [32] Q&A Session Summary Question: What were the headwinds in the medical segment this quarter? - Management noted that Q3 saw a decline in trip volumes in line with industry trends, influenced by factors like surgeon vacation schedules and donor availability [64][65] Question: How does the downtime of aircraft affect operations? - Management indicated that while there was some unexpected maintenance, overall flight profit per hour and per trip improved year-over-year [66][67] Question: What impact do the elections have on passenger business expansion? - Management believes the new administration is pro-urban air mobility, which could lead to a reprieve regarding helicopter access and support for eVTOL operations [77][78] Question: What are the expectations for the passenger segment in 2025? - The company anticipates revenue of approximately $85 million to $95 million in 2025, with continued single-digit growth in short distance business [58][80] Question: Can you elaborate on the partnership with OrganOx? - Management highlighted that there is more demand for OrganOx's metra perfusion device than the current supply, and the partnership aims to increase utilization and market penetration [93][94] Question: What are the expectations for flight margin expansion? - Management expects continued margin expansion in both passenger and medical segments, driven by restructuring efforts and increased flight hours [111][113]

Core Viewpoint - Blade Air Mobility, Inc. reported a quarterly loss of $0.03 per share, outperforming the Zacks Consensus Estimate of a loss of $0.06, marking a 50% earnings surprise [1] Financial Performance - The company posted revenues of $74.88 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 0.56% and showing an increase from $71.44 million year-over-year [2] - Over the last four quarters, Blade Air Mobility has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Blade Air Mobility shares have increased by approximately 8.5% since the beginning of the year, while the S&P 500 has gained 25.8% [3] - The company's near-term stock movements will largely depend on management's commentary during the earnings call [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $53.8 million, and for the current fiscal year, it is -$0.36 on revenues of $247.72 million [7] - The estimate revisions trend for Blade Air Mobility is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Technology Services industry, to which Blade Air Mobility belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Revenue Growth - Total revenue increased by 4.8% to $74.9 million in Q3 2024 compared to $71.4 million in Q3 2023, driven by growth in Medical and Short Distance segments [9]. - Medical revenue rose by 7.8% to $36.1 million in Q3 2024, while Short Distance revenue increased by 6.5% to $32.4 million [10]. - Revenue for Q3 2024 was $74.877 million, compared to $71.442 million in Q3 2023, representing a growth of approximately 3.8% [25]. - For the full year 2024, the company expects revenue between $240 million and $250 million [1]. - For 2025, the company projects double-digit growth in Medical revenue and passenger revenue between $85 million and $95 million [1]. - Total revenue for the three months ended September 30, 2024, was $74,877 thousand, an increase of 4% from $71,442 thousand in the same period of 2023 [27]. Financial Performance - Adjusted EBITDA improved by $3.4 million year-over-year to $4.2 million in Q3 2024, primarily due to a $2.8 million increase in Passenger Segment Adjusted EBITDA [9]. - Adjusted EBITDA for the three months ended September 30, 2024, was $4,180 thousand, significantly higher than $787 thousand in the same period of 2023 [28]. - The company reaffirmed guidance for positive Adjusted EBITDA in 2024 and double-digit millions of Adjusted EBITDA in 2025 [1]. - The company's net loss for Q3 2024 was $1.954 million, a decrease from a net income of $0.289 million in Q3 2023 [25]. - Adjusted SG&A expenses were $16,169,000 for the three months ended September 30, 2024, compared to $14,863,000 in 2023, with SG&A as a percentage of revenue at 21.6% [33]. - Total operating expenses for the three months ended September 30, 2024, were $78,414,000, slightly down from $78,890,000 in 2023 [33]. Cash Flow and Assets - Operating Cash Flow increased by $4.3 million to $6.4 million in Q3 2024, with Free Cash Flow, Before Aircraft Acquisitions, rising by $2.4 million to $3.7 million [9]. - Cash and short-term investments at the end of Q3 2024 totaled $136.3 million [10]. - Cash and cash equivalents decreased from $27.873 million as of December 31, 2023, to $20.028 million as of September 30, 2024 [23]. - Net cash provided by operating activities for the three months ended September 30, 2024, was $6,355 thousand, compared to $2,023 thousand in the same period of 2023 [26]. - Free Cash Flow for Q3 2024 was $(3,562,000), a decrease from $1,328,000 in Q3 2023, while Free Cash Flow before Aircraft Acquisitions was $3,726,000, up from $1,328,000 [37]. Market Strategy and Growth Opportunities - A strategic alliance was announced with OrganOx to enhance access to their metra perfusion device, utilizing Blade's logistics for rapid deployment [1]. - The company is focusing on legal and regulatory advocacy costs, with $165,000 incurred in the three months ended September 30, 2024, compared to $217,000 in 2023 [35]. - Blade is focused on expanding its market presence and launching new routes and services to enhance its operational capabilities [42]. - The company anticipates continued growth opportunities in the air transportation market, particularly with the development and adoption of Electric Vertical Aircraft (EVA) technology [41]. - Blade's asset-light model and exclusive passenger terminal infrastructure are designed to facilitate a seamless transition to lower-cost air mobility solutions [39]. Operational Metrics - The Passenger Segment achieved trailing twelve-month Adjusted EBITDA profitability in Q3 2024, ahead of previous guidance for full-year profitability by the end of 2025 [1]. - Medical Segment Adjusted EBITDA improved by 15.1% in Q3 2024 compared to the prior year, with margins expanding by 70 basis points [8]. - Total flight profit for the three months ended September 30, 2024, was $19,837 thousand, a 27% increase from $15,579 thousand in the same period of 2023 [28]. - Passenger flight margin improved to 31.8% for the three months ended September 30, 2024, compared to 24.8% in 2023 [28]. - Medical flight margin increased to 20.8% for the three months ended September 30, 2024, up from 18.4% in 2023 [28]. Risks and Challenges - The company faces risks related to market growth, competition, and operational challenges that could impact future performance [42]. - Blade's management emphasizes the importance of maintaining high-quality customer support and a high daily aircraft usage rate to drive revenue growth [42].