Blade(BLDE)2024-11-12 17:06Financial Data and Key Metrics Changes - Blade Air Mobility achieved a significant milestone with positive segment adjusted EBITDA in the passenger business for the trailing twelve months ending September 30, 2024, a year ahead of previous guidance [9] - Flight profit increased by 27.3% year-over-year, with adjusted EBITDA rising to 0.8 million in the prior year [10] - Operating cash flow was 3.7 million for the quarter [10][11] Business Line Data and Key Metrics Changes - Passenger segment adjusted EBITDA doubled compared to the prior period, with flight profit rising 31% year-over-year and adjusted EBITDA margin increasing to 14.4% from 7.3% [12][13] - Medical segment adjusted EBITDA improved by 15.1% year-over-year, with margins expanding 70 basis points despite a softer quarter for US organ transplant volumes [20][39] Market Data and Key Metrics Changes - Short distance revenue for Q3 2024 increased by 6.5% year-over-year, or 9.8% excluding discontinued Canadian operations [33] - Medical revenue rose 7.8% year-over-year to 136 million in cash and short-term investments, providing flexibility for strategic investments [51] - The company completed a tuck-in acquisition in the medical segment to expand its ground vehicle network [32] Q&A Session Summary Question: What were the headwinds in the medical segment this quarter? - Management noted that Q3 saw a decline in trip volumes in line with industry trends, influenced by factors like surgeon vacation schedules and donor availability [64][65] Question: How does the downtime of aircraft affect operations? - Management indicated that while there was some unexpected maintenance, overall flight profit per hour and per trip improved year-over-year [66][67] Question: What impact do the elections have on passenger business expansion? - Management believes the new administration is pro-urban air mobility, which could lead to a reprieve regarding helicopter access and support for eVTOL operations [77][78] Question: What are the expectations for the passenger segment in 2025? - The company anticipates revenue of approximately 95 million in 2025, with continued single-digit growth in short distance business [58][80] Question: Can you elaborate on the partnership with OrganOx? - Management highlighted that there is more demand for OrganOx's metra perfusion device than the current supply, and the partnership aims to increase utilization and market penetration [93][94] Question: What are the expectations for flight margin expansion? - Management expects continued margin expansion in both passenger and medical segments, driven by restructuring efforts and increased flight hours [111][113]