Blade(US:BLDE)2025-05-12 13:00Financial Data and Key Metrics Changes - The company reported an 11% revenue growth excluding Canada, with a year-over-year improvement in adjusted EBITDA of $2.3 million [6][21] - The passenger segment revenue grew 42% year-over-year excluding Canada, marking the first adjusted EBITDA profitable quarter since going public [6][7] - Medical revenue remained roughly flat year-over-year at $35.9 million, with significant monthly variability observed [14][15] Business Line Data and Key Metrics Changes - Passenger segment adjusted EBITDA improved by $2.7 million year-over-year, reaching $6.3 million as of Q1 2025, up from $3.6 million in Q4 2024 [7][13] - Short distance revenue increased by 28.1% year-over-year, primarily driven by growth in Europe [13] - Jet and Other revenue increased by 60% year-over-year due to higher flight volume and revenue per flight [13] Market Data and Key Metrics Changes - The European market showed strong revenue growth attributed to restructuring efforts, with approximately $6 million in revenue for Q1 [43] - The company expects ongoing year-over-year benefits from cost and restructuring actions in the passenger segment [8][11] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, evaluating investments in aircraft and medical acquisitions to strengthen its competitive position [12][21] - The transition from helicopters to eVTOL is seen as a significant opportunity, with expectations for deployment in late 2025 to early 2026 [61] - The company aims to enhance customer service by positioning dedicated aircraft closer to customers, resulting in improved service and reduced repositioning costs [36][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in the resilience of their higher-end consumer base [10][24] - The company expects to see improved medical segment adjusted EBITDA margins in the second half of 2025, despite elevated maintenance downtime in Q2 [22][23] - Management remains optimistic about the passenger segment's performance, particularly in Europe, and anticipates continued growth in the medical segment [29][34] Other Important Information - The company ended Q1 2025 with $120 million in cash and short-term investments, providing flexibility for strategic investments [20] - The company has implemented a withhold to cover method for taxes on employee stock-based compensation, effectively reducing outstanding shares [20] Q&A Session Summary Question: Themes for the year regarding passenger and medical segments - Management highlighted improved profitability in the passenger segment and the impact of maintenance on medical mobility, with expectations for better performance in the second half of the year [28][34] Question: Revenue contribution from Europe and sustainability of growth - Approximately $6 million of revenue was generated from Europe in Q1, with expectations for seasonality affecting future performance [43] Question: Capital allocation priorities - The company focuses on tactical and strategic medical acquisitions, organic growth initiatives, and has a buyback authorization in place [44] Question: Bookings trends and impact of recent issues - Bookings for summer appear better than last year, but the company is monitoring the situation at Newark closely [48][51] Question: Repositioning aircraft strategy - The company has added 50% more dedicated aircraft, improving service delivery and reducing repositioning needs [53] Question: eVTOL deployment timing and route extensions - eVTOL deployment is expected in late 2025 to early 2026, with potential for new landing zones and route extensions [58][61] Question: Update on New Jersey site operations - The Newport Heliport is primarily used for charter services, and the company aims to manage more heliports in its service area [65]