Blade(BLDE)2025-05-12 15:27Financial 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].