Blade(US:BLDE)2024-03-12 14:33Financial Data and Key Metrics Changes - Full year revenue for 2023 increased by 54.1% to $225.2 million, while flight profit rose by 84%, leading to an adjusted EBITDA improvement of $10.8 million to negative $16.6 million for the year [6][22] - Q4 2023 flight profit increased by 65.7% to $9 million compared to $5.4 million in the prior-year period, driven by strong growth in the Medical business [26] - Adjusted EBITDA improved by $2.7 million to negative $5.2 million in Q4 2023, with adjusted EBITDA as a percentage of revenues improving to negative 11.1% from negative 20.9% in Q4 2022 [12][65] Business Line Data and Key Metrics Changes - Medical segment revenue increased by 48% to $32 million in Q4 2023, with flight profit rising by 81% to $6.4 million [32][59] - Passenger segment revenue in Q4 2023 was up 14% to $10.7 million, with flight profit increasing by 37% to $2.6 million [63][64] - Blade Airport achieved positive flight profit for the full year 2023, with a significant increase in customer acquisition metrics [23] Market Data and Key Metrics Changes - Blade Airport delivered over 40% year-over-year revenue growth, contributing to improved profitability in the Passenger segment [11] - Europe is underperforming compared to initial acquisition expectations, leading to a non-cash impairment charge of $20.8 million, but remains a key urban air mobility market [36] Company Strategy and Development Direction - The company is focused on maximizing flight profit and has acquired eight fixed-wing jet aircraft to enhance its Medical operations, aiming for improved unit economics [7][33] - The strategy includes maintaining an asset-light model while gradually increasing the use of owned aircraft to capture fixed cost leverage [8][34] - Blade plans to achieve positive adjusted EBITDA in 2024 and double-digit millions in 2025, with expectations of continued growth in both Medical and Passenger segments [25][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in the Passenger segment by 2025, driven by improved flight profit margins and reduced marketing spend [38] - The Medical segment is expected to see single-digit percentage sequential revenue growth with flight margins above 20% throughout 2024, aiming for 25%-plus by the end of the year [16][67] - Management highlighted the importance of strategic acquisitions and leveraging existing relationships with hospitals to drive growth [83] Other Important Information - The company has $166.1 million in cash and short-term investments available for tactical acquisitions and investments in aircraft supply [57][68] - The acquisition of the Hawker 800 aircraft is expected to enhance operational efficiency and reduce costs for hospital customers [33][100] Q&A Session Summary Question: What is the outlook for Q1? - Management expects Q1 to be seasonally light, with approximately 10% year-over-year growth, similar EBITDA performance to Q4 [72] Question: Can you clarify the revenue growth range for 2024? - The range reflects the impact of discontinued products and softer jet charter performance, with new customer acquisition expected to drive growth [48][75] Question: What are the benefits of acquiring the eight Hawker 800 aircraft? - Owning the aircraft allows for better economies of scale and operating leverage, reducing costs and improving margins [51][52] Question: How is Europe performing and what are the expectations for 2024 and 2025? - Despite initial underperformance, management is optimistic about growth and profitability improvements in Europe due to a new management team and strong market demand [84] Question: How does competition in the MediMobility space affect the company? - Management views competition positively, as it increases the overall market for organ transport, and emphasizes the company's focus on logistics and customer service [92]