Blade(BLDE)2024-08-07 21:44Financial Performance - Revenue for the three months ended June 30, 2024, increased by $7.0 million or 11%, from $60.99 million in 2023 to $67.95 million in 2024[138]. - For the six months ended June 30, 2024, revenue increased by $13.2 million or 12%, from $106.26 million in 2023 to $119.46 million in 2024[140]. - Total revenue for the first half of 2024 increased by $13.2 million or 12% to $119.5 million compared to $106.3 million in the same period of 2023[162]. - The net loss for the six months ended June 30, 2024, was $15.6 million, compared to a net loss of $22.4 million for the same period in 2023, indicating a 30.5% improvement[187]. - Adjusted EBITDA for Q2 2024 improved by $5.4 million to $1.0 million from $(4.4) million in Q2 2023[171]. - Adjusted EBITDA for the first half of 2024 improved by $9.6 million to $(2.6) million from $(12.2) million in the same period of 2023[174]. - The gross profit for the three months ended June 30, 2024, was $11.3 million, with a gross margin of 16.7%, compared to a gross profit of $5.1 million and a gross margin of 8.3% in the same period of 2023[184]. Revenue Breakdown - Short Distance revenue increased by $1.7 million or 9%, driven by greater activity in Europe and growth in New York airport transfer products[139]. - Jet and Other revenue increased by $1.3 million or 17%, primarily due to growth in jet charters, despite a $1.0 million decrease from the discontinuation of a seasonal service[139]. - MediMobility Organ Transport revenue increased by $3.9 million or 11%, driven by higher revenue per trip and new hospital clients[139]. - MediMobility Organ Transport revenue for the six months increased by $13.2 million or 22%, driven by new hospital clients and higher activity from existing clients[141]. - Passenger revenue for Q2 2024 increased by $3.0 million or 11% to $29.6 million compared to $26.6 million in Q2 2023[163]. - Medical revenue for Q2 2024 increased by $3.9 million or 11% to $38.3 million compared to $34.4 million in Q2 2023[165]. - Medical revenue for the first half of 2024 increased by $13.2 million or 22% to $74.4 million compared to $61.2 million in the same period of 2023[167]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $80.09 million, an increase from $73.20 million in 2023[135]. - Loss from operations for the three months ended June 30, 2024, was $(12.15) million, compared to $(12.21) million in 2023[135]. - General and administrative expenses for the three months ended June 30, 2024, increased by $6.7 million, or 37%, from $18.4 million in 2023 to $25.1 million in 2024, driven by a $5.8 million impairment charge related to Blade Canada[151]. - General and administrative expenses for the six months ended June 30, 2024, increased by $7.7 million, or 22%, from $34.7 million in 2023 to $42.3 million in 2024[152]. - Selling and marketing expenses for the three months ended June 30, 2024, decreased by $0.3 million, or 12%, from $2.7 million in 2023 to $2.4 million in 2024, primarily due to a decrease in sales commissions[154]. Cost of Revenue - For the three months ended June 30, 2024, cost of revenue increased by $1.0 million, or 2%, from $50.6 million in 2023 to $51.6 million in 2024, driven by increased flight volume[144]. - Cost of revenue as a percentage of revenues decreased by 7 percentage points from 83% in 2023 to 76% in 2024, primarily due to the use of owned aircraft and improved pricing in the Medical business[144]. - For the six months ended June 30, 2024, cost of revenue increased by $4.2 million, or 5%, from $88.7 million in 2023 to $93.0 million in 2024[145]. Business Model and Strategy - Blade's asset-light business model allows it to utilize third-party aircraft, which helps maintain a flexible cost structure and predictable margins[107]. - The company anticipates leveraging Electric Vertical Aircraft (EVA) technology to reduce operating costs and enhance service offerings, including the development of new vertiports[113]. - Blade's growth strategy includes attracting new fliers through marketing campaigns and expanding scheduled routes, which may require significant investments[114]. - The company expects to incur net losses in the short term as it continues to execute its strategic initiatives, but believes no additional capital will be needed to execute its current business plan over the next 12 months[191]. Technology and Operations - Blade's proprietary technology stack enables real-time tracking and management of flights, which is crucial for scaling operations and improving customer experience[112]. - The introduction of EVA is contingent on OEMs receiving necessary approvals from federal transportation authorities, with no current FAA-certified EVA aircraft for commercial operations[123]. Market and Competition - The organ transportation market is highly competitive, and Blade competes primarily on reliability and pricing, with significant demand fluctuations impacting operational costs[117]. - Inflation impacts the fixed hourly rates paid to third-party operators, which are renegotiated annually, and the company has historically passed through cost increases to customers[120]. Cash Flow and Liquidity - The company had total liquidity of $142.0 million as of June 30, 2024, down from $166.1 million at the end of 2023, consisting of cash and cash equivalents of $26.3 million and short-term investments of $115.6 million[186]. - The company incurred net cash used in operating activities of $7.1 million for the six months ended June 30, 2024, a decrease from $25.1 million for the same period in 2023[194]. - For the six months ended June 30, 2024, net cash provided by investing activities was $7.7 million, driven by $102.7 million from maturities of held-to-maturity investments[196]. - The company announced a stock repurchase program authorized by the Board of Directors, allowing for the repurchase of up to $20.0 million of common stock, with $0.2 million repurchased by June 30, 2024[190]. Aircraft and Capital Expenditures - The company has commitments to purchase flights from various aircraft operators with minimum flight purchase guarantees of $8.4 million and $13.8 million for the years ending December 31, 2024 and 2025, respectively[188]. - The company has a commitment to purchase an eighth aircraft for $3.4 million, expected to close by the end of the third quarter of 2024[189]. - The company acquired seven aircraft to support the Medical business, contributing to $17.0 million in purchases of property and equipment for the six months ended June 30, 2024[196]. - The company reported $1.1 million in capitalized software development costs for the six months ended June 30, 2024[196]. Accounting and Risk - There have been no material changes to significant accounting policies and estimates as of June 30, 2024[201]. - There have been no material changes in market risk from the previous annual report as of June 30, 2024[202].