Blade(US:BLDE)2022-11-10 21:08Financial Performance - Total revenue for the three months ended September 30, 2022, reached $45.7 million, a 125% increase from $20.3 million in 2021[218]. - Revenue for the nine months ended September 30, 2022, increased by $65.5 million or 154%, from $42.5 million in 2021 to $108.0 million in 2022[232]. - MediMobility Organ Transport revenue surged by $18.0 million, an 801% increase from $2.2 million in 2021 to $20.2 million in 2022, attributed to the acquisition of Trinity and growth in trip volume and pricing[220]. - Short Distance revenue increased by $7.0 million, a 52% rise from $13.4 million in 2021 to $20.4 million in 2022, driven by price increases, the acquisition of Blade Europe, and the launch of Blade Canada[219]. - MediMobility Organ Transport revenue increased by $45.0 million or 877% from $5.1 million in 2021 to $50.1 million in 2022[234]. - Short Distance revenue increased by $15.3 million or 76% from $20.3 million in 2021 to $35.6 million in 2022[233]. - Jet and Other revenue increased by $0.4 million in 2022, an increase of 9%, from $4.7 million in 2021 to $5.1 million[221]. Operational Metrics - In the three months ended September 30, 2022, the total number of seats flown for all passenger flights was 28,440, a significant increase from 13,897 in the same period of 2021, representing a growth of approximately 104%[187]. - The company reported a total of 75,175 seats flown in the nine months ended September 30, 2022, compared to 22,123 in the same period of 2021, marking an increase of approximately 239%[187]. - The company’s MediMobility Organ Transport service continued to see increasing demand throughout the COVID-19 pandemic, contrasting with the decline in Short Distance passenger services[188]. Acquisitions and Expansion - The company completed the acquisition of Trinity Air Medical, Inc. on September 15, 2021, enhancing its organ transport capabilities across 16 states[166]. - On September 1, 2022, the company acquired Héli Tickets France and Helicopter Monaco for €47.8 million ($48.1 million), expanding its operations into the European market[168][176]. - The company is focused on expanding into dense urban areas with existing air transportation infrastructure to enhance service efficiency and reduce congestion[197]. Cost and Expenses - Operating expenses totaled $56.2 million for the three months ended September 30, 2022, compared to $30.0 million in 2021, reflecting increased costs across various categories[215]. - Cost of revenue increased by $20.6 million, or 130%, from $15.9 million in 2021 to $36.5 million in 2022, driven by increased flight volume and higher average trip prices[222]. - General and administrative expenses increased by $3.7 million, or 31%, from $12.1 million in 2021 to $15.8 million in 2022[227]. - General and administrative expenses for the nine months ended September 30, 2022, increased by $15.2 million, or 57%, from $26.7 million in 2021 to $41.9 million in 2022[242]. - Selling and marketing expenses increased by $0.6 million, or 51%, from $1.2 million during 2021 to $1.9 million in 2022[229]. - Selling and marketing expenses increased by $2.9 million, or 118%, from $2.4 million in 2021 to $5.3 million in 2022, primarily due to higher marketing spend and increased staff costs[247]. Cash Flow and Financial Position - Net cash used in operating activities was $28.0 million for the nine months ended September 30, 2022, compared to $15.6 million in the same period of 2021, marking a 79% increase[261]. - Net cash provided by investing activities was $78.9 million for the nine months ended September 30, 2022, driven by $248.4 million from the sale of short-term investments[264]. - As of September 30, 2022, the company had cash and cash equivalents of $51.8 million, up from $2.6 million as of December 31, 2021[254]. - The company anticipates that its available cash and cash equivalents and short-term investments will be sufficient to meet operational needs for at least the next 12 months[254]. - The company expects to incur net losses in the short term while executing strategic initiatives, with a net loss of $11.8 million for the nine months ended September 30, 2022[255]. Strategic Initiatives and Future Outlook - The company anticipates leveraging Electric Vertical Aircraft (EVA) technology to reduce operating costs and enhance service offerings in the future[185]. - The company’s business model is designed to transition smoothly to EVA, which is expected to lower consumer prices and reduce carbon emissions[185]. - The development and approval of Electric Vertical Aircraft (EVA) for passenger travel are anticipated to lower operating costs and facilitate new vertiports, although FAA certification is still pending[201]. - The company plans to continue significant investments in attracting new fliers and expanding service offerings, which may not guarantee immediate sales growth or profits[193]. - Inflation impacts are a concern, as costs paid to third-party operators are subject to annual renegotiation and may affect pricing strategies in the future[196]. Impact of COVID-19 - The company experienced a significant impact from the Omicron variant on Short Distance services during Q1 2022, but recovery trends aligned with typical seasonality resumed in 2022[203]. - The company has implemented safety measures during the COVID-19 pandemic that did not materially increase costs, while also reducing the number of Short Distance flights offered[189].