Blade(BLDE) - 2023 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue in Q1 2023 increased by 70% to $45.3 million compared to$26.6 million in Q1 2022, while flight profit rose by 145% to $7.2 million from$2.9 million in the same period [24][39] - Adjusted EBITDA was a loss of $7.7 million, roughly flat year-over-year, but improved as a percentage of revenues to negative 17$16.9 million, primarily due to a $9.5 million investment in working capital [63] Business Line Data and Key Metrics Changes - Short Distance revenues increased by 148$10.4 million in Q1 2023, driven by the acquisition of Blade Europe and growth in Blade Airport service [15][25] - MediMobility Organ Transport revenue grew by 111% to $26.8 million, with organic growth attributed to new hospital wins and market expansion [38] - Jet and Other revenue declined by 17$8.1 million, driven by lower volume and average price per jet charter [19] Market Data and Key Metrics Changes - In the US, the number of Airport Passes sold increased by 118% year-to-date compared to the same period last year, indicating strong customer acquisition [8] - In Canada, revenue increased by 65% year-over-year, reflecting a recovery in demand [35] - European performance was impacted by weather and maintenance delays, but preparations are in place for peak season events [9][10] Company Strategy and Development Direction - The company is focused on optimizing marketing spend and enhancing customer acquisition through targeted campaigns [7] - Strategic bolt-on acquisitions are being evaluated to accelerate profitability while leveraging existing infrastructure and technology [12] - The transition to Electric Vertical Aircraft (EVA) is seen as a long-term growth opportunity, with ongoing efforts to improve operational efficiency [32][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant improvement in full-year adjusted EBITDA for 2023 compared to 2022 [6] - The company remains optimistic about the recovery in travel demand and the potential for increased bookings in Europe during the summer [57] - Management highlighted the importance of perfusion technology in expanding the addressable market for organ transport [36] Other Important Information - The company maintains a strong balance sheet with zero debt and approximately 179 million in cash and short-term securities [65] - New board members were appointed to enhance strategic oversight and support growth initiatives [31] Q&A Session Summary Question: What drove the increase in average pricing and revenue? - Management indicated that both volume increase and higher pricing contributed to revenue growth, with average pricing reaching 281 per seat [69][70] Question: What is driving the lower volume and pricing in the Jet business? - The decline is attributed to normalization post-Omicron demand, with many customers returning to commercial flights [53][60] Question: How does the company view the impact of perfusion technology on flight margins? - Perfusion technology is expected to increase the number of organs available for transport, positively impacting revenue and flight profit growth [88][90] Question: What are the expectations for flight margin progress in the upcoming quarters? - Flight profit margins are expected to improve to the high-teens in Q2 and further in Q3, which is typically the strongest quarter [111]