Blade(US:BLDE)2022-02-11 01:47Financial Data and Key Metrics Changes - Revenues for Q4 2021 increased by 208% to $24.6 million compared to $8 million in Q4 2020, and increased by 371% compared to $5.2 million in Q4 2019 [7] - Full calendar year revenues for 2021 were $67.2 million, up 156% from 2020 and up 106% from pre-COVID 2019 [8] - Flight profit for Q4 2021 increased by 146% to $4 million compared to $1.6 million in Q4 2020, and was negative $0.6 million in Q4 2019 [7] Business Line Data and Key Metrics Changes - Short Distance revenues increased by 191% to $6.2 million in Q4 2021 compared to $2.1 million in Q4 2020 [15] - MediMobility Organ Transport and Jet revenues increased by 227% to $18 million in Q4 2021 compared to $5.5 million in Q4 2020 [16] - Flight margin decreased to 16% in Q4 2021 from 20% in Q4 2020, primarily due to the relaunch of BLADE Airport service [17] Market Data and Key Metrics Changes - The company has seen a limited impact from the Omicron variant on its BLADE Airport and Vancouver businesses in Q1 2022 [22] - The annualized passenger run rate for BLADE Airport dropped to approximately 5,000 in early January but has since doubled to about 10,000 [24] Company Strategy and Development Direction - The company is focused on expanding and diversifying its services and geographies, with a strong emphasis on MediMobility and Jet divisions [10][14] - The transition to Electric Vertical Aircraft (EVA) is a key strategic goal, with ongoing partnerships to enhance technology and infrastructure [12][26] - The company aims to leverage its asset-light model to quickly adapt to market opportunities, particularly in the Northeast [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of travel demand as mask mandates are lifted and workers return to offices [23] - The company does not expect a material impact on revenues in Q1 2022 despite the Omicron outbreak [11] - Management highlighted the strong growth potential in the MediMobility business, which is expected to continue benefiting from synergies with the retail business [34][52] Other Important Information - General and administrative expenses increased significantly due to corporate overhead costs and public company-related expenses [19] - The company is actively monitoring the situation regarding potential flight restrictions in East Hampton and is prepared to adapt its operations accordingly [41] Q&A Session Summary Question: Updates on Short Distance revenues and LaGuardia service - Management sees a huge market opportunity in connecting Northeast cities and plans to restart LaGuardia service when conditions are favorable [30][31] Question: Growth expectations for MediMobility versus Airport services - MediMobility is expected to contribute the majority of revenues, with strong growth driven by synergies with the retail business [34] Question: Expansion plans for the West Coast and Miami - The company is being opportunistic about expanding to the West Coast and sees potential growth in Miami due to increased demand from New York transplants [36][50] Question: Impact of rising fuel costs on margins - Management does not expect rising fuel costs to materially impact margins, as fuel is a small portion of overall trip costs [46] Question: Insights on hybrid business-leisure travel trends - The company has observed an increase in leisure travelers using BLADE Airport, which has positively impacted overall demand [45]