Blade(BLDE)2024-11-12 17:20Operational 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].