Summary of Blade's Conference Call Company Overview - Blade operates in two primary segments: Medical (60% of revenue) and Passenger (40% of revenue) [4][5] - The Medical segment is a leading transporter of human organs for transplant in the U.S., generating approximately $150 million in revenue with a 13% EBITDA margin over the last twelve months [5][6] - The Passenger segment focuses on short-distance transportation in the U.S. and Europe, generating about $6.3 million in adjusted EBITDA [8] Key Growth Drivers Medical Segment - The industry growth rate is in the high single digits, driven by technology adoption and regulatory changes [6][13] - Blade has a 30% market share in air logistics, with ongoing customer acquisition, including two new high-volume transplant centers [14][15] - Ancillary services, such as ground logistics and organ placement services, are growing at or above the overall growth rate [15] - The company aims for a 15% EBITDA margin in the Medical segment, with expectations of improvement in the second half of the year [17][19] Passenger Segment - The transition to electric vertical takeoff and landing (eVTOL) aircraft is seen as a significant growth opportunity, with new landing zones viewed as new business opportunities [33][45] - The company has restructured its European operations and exited the Canadian market, leading to improved profitability [30][31] - Blade anticipates low single-digit growth in the passenger business for the year, excluding Canada [34] Technology and Operations - Blade employs a technology platform in the Medical segment for real-time logistics management and data analytics [21] - The Passenger segment has a consumer-facing app and operational technology for flight management [36][38] - The company operates an asset-light model in the Passenger segment, relying on third-party aircraft to mitigate economic sensitivity and seasonality [39] Market Trends and Competitive Landscape - The company has observed a seasonal pickup in demand for the Passenger segment as summer approaches, despite some softness in New York-centric products [41] - Blade's established brand, scale, and infrastructure position it well against competitors entering the eVTOL market [49][56] - The introduction of eVTOLs is expected to create new landing zones and expand market opportunities [54][62] Capital Allocation Strategy - Blade has $120 million in cash with no debt, focusing on strategic acquisitions in the Medical segment and investments in additional aircraft and vehicles [64] - The company views its medical business as a logistics platform with potential for expansion into other time-critical logistics markets [65] Investment Thesis - Blade is at an inflection point, transitioning from breakeven EBITDA to generating positive cash flow [67] - There is significant growth potential in the Medical segment, with a target of high teens EBITDA margins, and attractive optionality in the Passenger segment ahead of the eVTOL transition [68]

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] Upcoming Events - Mat Schneider, Vice President of Investor Relations and Strategic Finance, will present at the 2025 J.P. Morgan Annual Global Technology, Media, and Communications Conference on May 14, 2025, at 3:40 PM ET [1] Business Model and Technology - Blade's model is designed to facilitate a seamless transition from helicopters and fixed-wing aircraft to Electric Vertical Aircraft (EVA or eVTOL), aiming for lower-cost air mobility that is both quiet and emission-free [2]

Financial Performance - Total revenue increased by $2.8 million or 5.4%, from $51.5 million in Q1 2024 to $54.3 million in Q1 2025[148]. - For the three months ended March 31, 2025, total revenue increased by 5.4% to $54.3 million from $51.5 million in the same period of 2024[162]. - Passenger segment revenue rose by $2.9 million, or 18.5%, from $15.5 million in 2024 to $18.4 million in 2025[164]. - Medical segment revenue decreased by $0.1 million, or 0.2%, from $36.0 million in 2024 to $35.9 million in 2025[167]. - Adjusted EBITDA improved by $2.3 million, from $(3.5) million in Q1 2024 to $(1.2) million in Q1 2025, primarily due to a $2.7 million improvement in the Passenger segment[171]. - Gross profit increased by $2.2 million, or 38.3%, from $5.9 million in Q1 2024 to $8.1 million in Q1 2025[172]. - Flight profit increased by $1.8 million, or 18.1%, from $10.1 million in Q1 2024 to $12.0 million in Q1 2025[172]. - Gross margin improved from 11.4% in Q1 2024 to 14.9% in Q1 2025[173]. - Flight margin increased from 19.7% in Q1 2024 to 22.1% in Q1 2025[173]. - The company had a net loss of $3.5 million for the three months ended March 31, 2025, an improvement from a net loss of $4.2 million in the same period of 2024[170]. Operational Highlights - Blade reported a total of 13,884 seats flown in all passenger flights for the three months ended March 31, 2025, compared to 13,286 seats in the same period of 2024, representing a growth of approximately 4.5%[116]. - The company discontinued operations in Canada on August 31, 2024, which previously accounted for 14,120 seats flown in the three months ended March 31, 2024[117]. - The company acquired ten fixed-wing aircraft dedicated to the Medical segment over the course of 2024, aiming to improve economies of scale and service reliability[120]. - Blade's proprietary technology stack enables real-time tracking of organ transports and passenger flights, enhancing operational efficiency and scalability[122]. - The MediMobility Organ Transport product line serves transplant centers and hospitals, with transportation requests typically made only hours before departure, emphasizing the need for reliability[126]. - Blade's growth strategy includes expanding its by-the-seat product offerings, which are crucial for increasing passenger revenue despite variability in pricing[115]. - The company anticipates leveraging the lower operating costs of Electric Vertical Aircraft (EVA) to reduce consumer prices and expand into new markets[123]. - Blade's ability to attract and retain fliers is critical, as competition from various transportation options necessitates effective marketing and service offerings[125]. - The organ transportation market is highly competitive, with Blade facing challenges from manufacturers of organ preservation equipment that also provide transportation services[127]. Revenue Breakdown - Short Distance revenue decreased by $0.5 million or (5.4)% from $9.8 million in Q1 2024 to $9.3 million in Q1 2025, primarily due to the termination of Canada routes[149]. - Jet and Other revenue increased by $3.4 million or 59.9%, from $5.7 million in Q1 2024 to $9.1 million in Q1 2025, driven by growth in jet charters[150]. - MediMobility Organ Transport revenue decreased by $(0.1) million or (0.2)% from $36.0 million in Q1 2024 to $35.9 million in Q1 2025 due to lower air flight hours[151]. Cost and Expenses - Cost of revenue increased by $1.0 million or 2.3%, from $41.4 million in Q1 2024 to $42.3 million in Q1 2025, with a decrease in cost of revenue as a percentage of revenue from 80% to 78%[152][153]. - Software development costs increased by $0.1 million or 21.2%, from $0.7 million in Q1 2024 to $0.8 million in Q1 2025[155]. - General and administrative expenses increased by $0.1 million or 0.6%, from $17.2 million in Q1 2024 to $17.3 million in Q1 2025[156]. - Selling and marketing expenses decreased by $(0.7) million or (32.6)%, from $2.1 million in Q1 2024 to $1.4 million in Q1 2025[158]. - Total other non-operating income decreased by $(1.5) million or (26.6)%, from $5.5 million in Q1 2024 to $4.1 million in Q1 2025[159]. Cash Flow and Liquidity - As of March 31, 2025, total liquidity was $120.0 million, consisting of cash and cash equivalents of $34.8 million and short-term investments of $85.2 million[186]. - For the three months ended March 31, 2025, net cash used in operating activities was $0.2 million, compared to $15.6 million for the same period in 2024[195][196]. - Net cash provided by investing activities for the three months ended March 31, 2025, was $20.4 million, driven by $107.8 million from maturities of held-to-maturity investments[197]. - The company has a stock repurchase program authorized for up to $20.0 million, with approximately $19.8 million remaining as of March 31, 2025[191]. - For the three months ended March 31, 2025, net cash used in financing activities was $4.2 million, primarily due to payroll tax payments on behalf of employees[199]. - The cash increase for the three months ended March 31, 2025, was $16.0 million, compared to an increase of $9.0 million for the same period in 2024[194]. - The company believes no additional capital will be needed to execute its current business plan over the next 12 months[192]. - The company’s longer-term liquidity requirements will depend on factors including market expansion pace and customer retention[192]. - As of March 31, 2025, the company has commitments to purchase flights with minimum guarantees of $4.9 million and $6.1 million for the years ending December 31, 2025 and 2026, respectively[189]. - The company has operating lease obligations with expected annual minimum payments of $1.6 million and $2.1 million for the years ending December 31, 2025 and 2026, respectively[189]. - The company entered into a technology service agreement for cloud computing services, committing to spend $0.6 million and $1.6 million for the years ending December 31, 2025 and 2026, respectively[190].

Core Insights - Blade Air Mobility, Inc. (BLDE) reported a quarterly loss of $0.04 per share, outperforming the Zacks Consensus Estimate of a loss of $0.11, and showing improvement from a loss of $0.06 per share a year ago [1] - The company achieved revenues of $54.31 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 9.55% and up from $51.51 million year-over-year [2] - Blade Air Mobility's shares have declined approximately 31.3% year-to-date, contrasting with the S&P 500's decline of 3.8% [3] Financial Performance - Over the last four quarters, Blade Air Mobility has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $65.57 million, and for the current fiscal year, it is -$0.17 on revenues of $256.96 million [7] Market Outlook - The earnings outlook for Blade Air Mobility is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - The Technology Services industry, to which Blade Air Mobility belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - The company reported an 11% revenue growth excluding Canada, with a year-over-year improvement in adjusted EBITDA of $2.3 million [7][9] - Adjusted EBITDA for the passenger segment improved by $2.7 million year-over-year, reaching $6.3 million as of Q1 2025, up from $3.6 million in Q4 2024 [9][16] - Medical revenue remained roughly flat year-over-year at $35.9 million, with significant variability in monthly growth trends [17][20] Business Line Data and Key Metrics Changes - Passenger segment revenue grew by 42% year-over-year excluding Canada, marking the first adjusted EBITDA profitable quarter since going public [7][9] - Short distance revenue increased by 28.1% year-over-year, primarily driven by growth in Europe [16] - Jet and Other revenue increased by 60% year-over-year due to higher flight volume and revenue per flight [16] Market Data and Key Metrics Changes - The European market showed strong revenue growth attributed to restructuring efforts, which improved operational efficiency and customer experience [8][16] - The medical business is expected to benefit from strong underlying transplant volume growth, with industry transplant volume rising 7% year-over-year [24] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, evaluating investments in aircraft and medical acquisitions to strengthen its competitive position [14][45] - The transition from helicopters to eVTOL is seen as a key strategic direction, with expectations for deployment in late 2025 to early 2026 [62] - The company aims to enhance profitability through cost rationalization initiatives and restructuring efforts, particularly in the passenger segment [10][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainty but expressed confidence in the resilience of their higher-end consumer base and ongoing demand in leisure markets [12][32] - The company expects continued revenue growth in the medical segment, with double-digit growth anticipated for the year [24][25] - Management noted that maintenance downtime is expected to moderate in the second half of 2025, leading to improved adjusted EBITDA margins [20][25] Other Important Information - The company ended the quarter with no debt and $120 million in cash and short-term investments, providing flexibility for strategic investments [23] - The company has implemented a withhold to cover method for taxes on employee stock-based compensation, effectively reducing outstanding shares [22] Q&A Session Summary Question: Themes for the year regarding passenger and medical segments - Management highlighted improved profitability in the passenger segment and the impact of maintenance on medical revenue, with expectations for better performance in the second half of the year [28][30] Question: Revenue contribution from Europe and sustainability of growth - Management confirmed approximately $6 million of revenue from Europe in Q1, attributing growth to restructuring and improved service [44] Question: Capital allocation priorities - The company is focused on tactical and strategic medical acquisitions, organic growth initiatives, and has a buyback authorization in place [45][46] Question: Bookings trends and impact of recent issues - Management noted that bookings for summer appear better than last year, but emphasized the on-demand nature of their service [50][53] Question: Repositioning aircraft strategy - Management explained that repositioning will always be part of the business, with a low to mid single-digit revenue headwind expected [71][72] Question: Impact of economic conditions on aircraft acquisitions - Management stated that there is no impact on their aircraft acquisition strategy, with plans to add a low single-digit number of aircraft over the next year or two [75][76]

Financial Data and Key Metrics Changes - The company reported an 11% revenue growth excluding Canada, with a year-over-year improvement in adjusted EBITDA of $2.3 million [6][21] - The passenger segment revenue grew 42% year-over-year excluding Canada, marking the first adjusted EBITDA profitable quarter since going public [6][7] - Medical revenue remained roughly flat year-over-year at $35.9 million, with significant monthly variability observed [14][15] Business Line Data and Key Metrics Changes - Passenger segment adjusted EBITDA improved by $2.7 million year-over-year, reaching $6.3 million as of Q1 2025, up from $3.6 million in Q4 2024 [7][13] - Short distance revenue increased by 28.1% year-over-year, primarily driven by growth in Europe [13] - Jet and Other revenue increased by 60% year-over-year due to higher flight volume and revenue per flight [13] Market Data and Key Metrics Changes - The European market showed strong revenue growth attributed to restructuring efforts, with approximately $6 million in revenue for Q1 [43] - The company expects ongoing year-over-year benefits from cost and restructuring actions in the passenger segment [8][11] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, evaluating investments in aircraft and medical acquisitions to strengthen its competitive position [12][21] - The transition from helicopters to eVTOL is seen as a significant opportunity, with expectations for deployment in late 2025 to early 2026 [61] - The company aims to enhance customer service by positioning dedicated aircraft closer to customers, resulting in improved service and reduced repositioning costs [36][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in the resilience of their higher-end consumer base [10][24] - The company expects to see improved medical segment adjusted EBITDA margins in the second half of 2025, despite elevated maintenance downtime in Q2 [22][23] - Management remains optimistic about the passenger segment's performance, particularly in Europe, and anticipates continued growth in the medical segment [29][34] Other Important Information - The company ended Q1 2025 with $120 million in cash and short-term investments, providing flexibility for strategic investments [20] - The company has implemented a withhold to cover method for taxes on employee stock-based compensation, effectively reducing outstanding shares [20] Q&A Session Summary Question: Themes for the year regarding passenger and medical segments - Management highlighted improved profitability in the passenger segment and the impact of maintenance on medical mobility, with expectations for better performance in the second half of the year [28][34] Question: Revenue contribution from Europe and sustainability of growth - Approximately $6 million of revenue was generated from Europe in Q1, with expectations for seasonality affecting future performance [43] Question: Capital allocation priorities - The company focuses on tactical and strategic medical acquisitions, organic growth initiatives, and has a buyback authorization in place [44] Question: Bookings trends and impact of recent issues - Bookings for summer appear better than last year, but the company is monitoring the situation at Newark closely [48][51] Question: Repositioning aircraft strategy - The company has added 50% more dedicated aircraft, improving service delivery and reducing repositioning needs [53] Question: eVTOL deployment timing and route extensions - eVTOL deployment is expected in late 2025 to early 2026, with potential for new landing zones and route extensions [58][61] Question: Update on New Jersey site operations - The Newport Heliport is primarily used for charter services, and the company aims to manage more heliports in its service area [65]

Financial Highlights - FY 2024 revenue reached $249 million, showing a year-over-year growth of 10%[6] - Medical revenue for FY 2024 was $147 million, with a year-over-year growth of 16%[6] - Adjusted EBITDA improved by $178 million year-over-year in FY 2024[6] - Q1 2025 revenue was $54 million, reflecting a 10% year-over-year growth excluding Canada[6] - Passenger revenue in Q1 2025 was $18 million, showing a 42% year-over-year increase excluding Canada[6] - Adjusted EBITDA improved by $23 million year-over-year in Q1 2025[6] Medical Segment - Medical segment revenue for the trailing twelve months ending March 31, 2025, was $147 million, an 8% year-over-year growth[11] - Medical segment adjusted EBITDA for the same period was $19 million, with a 25% year-over-year growth[11] - Flight Profit for the medical segment was $33 million, with a 22% margin and 25% year-over-year growth[11] Passenger Segment - Passenger segment revenue for the trailing twelve months ending March 31, 2025, was $105 million, a 10% year-over-year growth, or 42% excluding Canada[11] - Passenger segment adjusted EBITDA for the same period was $63 million, with a $109 million growth year-over-year[11] - Flight Profit for the passenger segment was $28 million, with a 27% margin and 48% year-over-year growth[11] Organ Transplant - From 2018 to 2024, heart, liver, and lung transplant distances increased by 64%[42] Ground Transport - Blade Medical's ground transport annualized revenue is approximately $20 million[50]

Revenue Performance - Revenue for Q1 2025 increased by 5.4% to $54.3 million compared to $51.5 million in Q1 2024, with a 10.9% increase when excluding Canada[11] - Total revenue for Q1 2025 was $54,306,000, representing a 5.4% increase from $51,514,000 in Q1 2024[36] - Passenger revenue increased by 18.5% to $18,358,000 in Q1 2025 from $15,488,000 in Q1 2024[38] - Total revenue for the last twelve months reached $251,485 million, with significant contributions from MediMobility Organ Transport at $146,739 million[55] Profitability and Loss - Net loss improved by $0.7 million to $(3.5) million in Q1 2025, while Adjusted EBITDA improved by $2.3 million to $(1.2) million[7] - Net loss for Q1 2025 was $3,493,000, an improvement from a net loss of $4,234,000 in Q1 2024[28] - Adjusted EBITDA for Q1 2025 was $(1,238,000), an improvement from $(3,546,000) in Q1 2024[44] - Free cash flow for the three months ended March 31, 2025, was $(3,397) million, compared to $(16,678) million in the same period of 2024[53] Operating Performance - Flight Profit increased by 18.1% to $12.0 million, with Flight Margin improving to 22.1% from 19.7% year-over-year[11] - The company reported a flight margin of 22.1% in Q1 2025, up from 19.7% in Q1 2024[44] - Gross profit increased to $8,093 million, resulting in a gross margin of 14.9%, compared to a gross margin of 11.4% in the prior year[46] - Total operating expenses for Q1 2025 were $61,889,000, compared to $61,382,000 in Q1 2024, resulting in a loss from operations of $7,583,000[28] Cash Flow and Financial Position - Operating Cash Flow increased by $15.3 million to $(0.2) million, with Free Cash Flow before Aircraft Acquisitions improving by $14.0 million to $(2.7) million[11] - Cash and cash equivalents increased to $34,830,000 as of March 31, 2025, up from $18,378,000 at December 31, 2024[26] - The company ended Q1 2025 with $120.0 million in cash and short-term investments[11] - Total assets decreased to $250,550,000 as of March 31, 2025, down from $256,675,000 at December 31, 2024[26] - Total stockholders' equity was $219,732,000 as of March 31, 2025, compared to $221,938,000 at December 31, 2024[26] Strategic Initiatives and Future Outlook - The company reaffirmed its full-year 2025 guidance, expecting revenue between $245 million and $265 million and double-digit Adjusted EBITDA[16] - The company launched service between Downtown Manhattan Heliport and JFK Airport, gathering data to support future EVTOL operations[16] - The company’s Medical Segment is expected to grow with the onboarding of new customers and continued growth with existing ones[8] - The company is focused on expanding its market presence and enhancing its fleet composition, including the transition to Electric Vertical Aircraft (EVA)[56] - Future financial guidance indicates a continued focus on improving operational efficiency and revenue growth, with expectations for market expansion and new product lines[58] - The company is actively pursuing strategic acquisitions and partnerships to enhance its service offerings and operational capabilities[59]

Core Insights - Blade Air Mobility, Inc. reported a revenue increase of 5.4% year-over-year for Q1 2025, reaching $54.3 million, driven primarily by growth in the Passenger segment [7][10] - The company achieved a notable improvement in net loss, which decreased by $0.7 million to $(3.5) million compared to the previous year [7][10] - Adjusted EBITDA improved by $2.3 million year-over-year to $(1.2) million, marking the first profitable quarter in the Passenger Segment since going public [7][9] Financial Results - Total revenue for Q1 2025 was $54,306 thousand, up from $51,514 thousand in Q1 2024, reflecting a 5.4% increase [3][10] - Cost of revenue increased by 2.3% to $42,328 thousand, while total operating expenses rose slightly by 0.8% to $61,889 thousand [3][10] - Gross profit improved significantly by 38.3% to $8,093 thousand, resulting in a gross margin of 14.9%, up from 11.4% in the prior year [3][10] Segment Performance - The Passenger segment revenue surged by 42.0% year-over-year, excluding Canada, which the company exited in August 2024 [7][10] - Flight profit for Q1 2025 was $11,978 thousand, an 18.1% increase from $10,139 thousand in Q1 2024, with a flight margin improvement to 22.1% from 19.7% [10][37] - Medical segment revenue slightly decreased by 0.2% to $35,948 thousand, with a flight margin of 22.1%, down from 22.3% in the previous year [10][37] Operational Highlights - The company achieved a new monthly record for Medical trip volumes in April 2025, indicating strong operational performance [7][9] - Blade's exit from the Canadian market and cost rationalization initiatives contributed to improved profitability [9][10] - The company ended Q1 2025 with $120.0 million in cash and short-term investments, positioning it well for future growth [7][10] Future Outlook - Blade reaffirmed its guidance for 2025, expecting revenue between $245 million and $265 million, along with double-digit millions of Adjusted EBITDA [7][10] - The company anticipates ongoing improvements in both the Passenger and Medical segments, driven by new customer onboarding and restructuring efforts [9][10]

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 first quarter ended March 31, 2025, on May 12, 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, including a question-and-answer session [1][2] Business Model and Technology - Blade's business model is designed to facilitate a seamless transition from traditional air transport to Electric Vertical Aircraft (EVA or eVTOL), aiming for lower-cost, quiet, and emission-free air mobility [3]