• Blade Air Mobility Reports Financial Results for the Second Quarter Ended June 30, 2023

    المصدر: Nasdaq GlobeNewswire / 09 أغسطس 2023 07:00:01   America/New_York

    • Second quarter ended June 30, 2023 revenue up 71% versus the prior year to $61.0 million
    • Medical revenue of $34.4 million in Q2 2023 up 99% versus the prior year period, up 29% sequentially versus Q1 2023
    • Short Distance revenue up 75% in Q2 2023 versus the prior year period, reflecting our acquisition of Blade Europe, robust demand and pricing growth in Blade Airport, and continued growth in the Northeastern United States
    • Flight Profit(1) increased 103% in Q2 2023 versus the prior year period to $10.4 million

    NEW YORK, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Blade Air Mobility, Inc. (Nasdaq: BLDE, "Blade" or the "Company"), today announced financial results for the second quarter ended June 30, 2023.

    GAAP QUARTERLY FINANCIAL RESULTS
    (in thousands except percentages, unaudited)
     
     Three Months Ended June 30,  
      2023   2022  % Change
    Revenue$60,989  $35,633  71.2%
    Cost of revenue 50,620   30,522  65.8%
    Software development 1,440   1,062  35.6%
    General and administrative 18,410   12,144  51.6%
    Selling and marketing 2,728   1,638  66.5%
    Total Operating Expenses 73,198   45,366  61.3%
    Loss from operations (12,209)  (9,733) 25.4%
    Net (loss) income$(12,232) $8,412  NM* 
          
    Passenger net (loss) income$(3,837) $(2,326) 65.0%
    Medical net (loss) income$(497) $694  NM* 
    Unallocated corporate expenses and software development$(7,875) $(8,101) (2.8)%
    *Percentage not meaningful     


    NON-GAAP(1) QUARTERLY FINANCIAL RESULTS
    (in thousands except percentages, unaudited)
     
     Three Months Ended June 30,  
      2023   2022  Change
    GAAP Revenue$60,989  $35,633  71.2%
    GAAP Cost of revenue 50,620   30,522  65.8%
    Flight Profit 10,369   5,111  102.9%
    Flight Margin 17.0%  14.3% +266bps 
    Adjusted Corporate Expense 14,817   11,230  31.9%
    Adjusted Corporate Expense as a percentage of Revenue 24.3%  31.5% -720bps 
    Adjusted EBITDA$(4,448) $(6,119) (27.3)%
    Adjusted EBITDA as a percentage of Revenue (7.3)%  (17.2)% +990bps 
          
    Passenger Adjusted EBITDA$(2,075) $(1,085) 91.2%
    Medical Adjusted EBITDA$3,023  $1,113  171.6%
    Adjusted unallocated corporate expenses and software development$(5,396) $(6,147) (12.2)%


    "Blade's record performance this quarter illustrates the value proposition of our diversified business model," said Rob Wiesenthal, Blade's Chief Executive Officer. "In MediMobility Organ Transport, we continue to benefit from new organ preservation technologies that are expanding the market, as well as the addition of a number of new transplant center and organ procurement organizations. In our Passenger business, we saw strong volume and pricing growth in the Northeast, particularly for our 5-minute helicopter transfers between Manhattan and New York area airports."

    "Blade delivered significant year over year improvement in Adjusted EBITDA this quarter, driven by 172% growth in Medical Segment Adjusted EBITDA and cost savings across our corporate platform," said Will Heyburn, Blade's Chief Financial Officer. "Our cost efficiency program is showing meaningful results with Adjusted Unallocated Corporate Expenses, which relate to the overall Blade shared services platform, decreasing 12% in Q2 2023 versus the prior year period, despite our significant 71% revenue growth. We expect that continued growth and cost efficiencies will lead to further year over year improvement in Adjusted EBITDA in the second half of the year."

    "The FAA's blueprint for air mobility, released in July, outlines a gradual transition to Electric Vertical Aircraft, or EVA, utilizing existing air traffic control systems and infrastructure. This approach validates Blade's unique strategy, focused on our exclusive Blade terminals at existing heliports and airports in the most active air mobility corridors operating around the world today," stated Melissa Tomkiel, Blade's President. "As a result, Blade is best positioned to enable the gradual transition of today's air mobility fliers from helicopters to EVA, which we expect to expand the addressable market for our Passenger segment through lower cost, emission-free, and near-silent flight."

    Second Quarter Ended June 30, 2023 Financial Highlights

    • Total revenue increased 71.2% to $61.0 million in the current quarter versus $35.6 million in the prior year period. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, revenue for the second quarter ended June 30, 2023 would have increased approximately 42.3%(1) on a constant currency basis.
    • Flight Profit(1) increased 102.9% to $10.4 million in the current quarter versus $5.1 million in the prior year period, driven by strong growth in our MediMobility Organ Transport business, the contribution from our Blade Europe acquisitions, and improved growth and profitability across our US Short Distance business.
    • Flight Margin(1) improved to 17.0% in the current quarter from 14.3% in the prior year period, driven by increased use of dedicated aircraft in our MediMobility Organ Transport business line, which results in lower costs, the acquisition of Blade Europe, which operates at a higher average Flight Profit versus our corporate average, improved pricing and utilization in our New York by-the-seat Airport Transfer product, and a reduction in spot market jet charter costs, which decreased more quickly than our jet charter pricing.
    • Short Distance revenue increased 75.0% to $19.2 million in the current quarter versus $11.0 million in the prior year period. Growth was driven by our acquisition of Blade Europe, strong volume and pricing growth in our Blade Airport service, and growth across our US Short Distance business lines. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, Short Distance revenue for the second quarter ended June 30, 2023 would have increased approximately 5.3%(1) on a constant currency basis.
    • MediMobility Organ Transport revenue increased 99.4% to $34.4 million in the current quarter versus $17.2 million in the prior year period, driven by the addition of new transplant center customers, continued growth with existing customers, and strong market demand. Revenue increased 28.5% sequentially in Q2 2023 versus Q1 2023. MediMobility Organ Transport growth was entirely organic given Blade's acquisition of Trinity Air Medical closed in September 2021.
    • Jet and Other revenue decreased (0.2)% to $7.4 million in the current quarter versus $7.4 million in the prior year period, as an increase in jet charter volume was offset by a decline in the average price per jet charter trip.
    • Net loss was $12.2 million in the quarter versus a net income of $8.4 million in the prior year period, driven primarily by an unfavorable change in the fair value of warrant liabilities of $(2.5) million (compared to a favorable change of $19.3 million in the prior year period).
    • Adjusted EBITDA(1) loss improved to $(4.4) million in the current quarter versus $(6.1) million in the prior year period, and improved as a percentage of revenues to (7.3)% in the current quarter from (17.2)% in the prior year period. The improvement was driven by a 172% increase in Medical Segment Adjusted EBITDA to $3.0 million in the current quarter, coupled with a $0.8 million improvement in Unallocated Corporate Expenses and Software Development to $(5.4) million, partially offset by a $1.0 million decline in Passenger Segment Adjusted EBITDA to $(2.1) million, resulting from higher integration and operating expenses related to our acquisition of Blade Europe.

    Business Highlights and Recent Updates

    • In April 2023, Blade provided logistics and coordination support for a record-breaking heart transplant mission. In collaboration with Massachusetts General Hospital and Paragonix Technologies, Inc., Blade facilitated the transport of a donor heart and transplant team members 2,506 nautical miles from Juneau, Alaska, to Boston, Massachusetts, setting a record for the longest distance a donor heart has ever traveled for a transplant surgery.
    • In May 2023, Blade announced an agreement to revitalize and operate the Newport Helistop (91NJ), located in Newport, Jersey City, New Jersey, one of the largest and most successful mixed-use communities on the Hudson River waterfront. Blade has begun a pilot program for charter flights and is analyzing the viability of limited by-the-seat service between the Helistop and local New York City area airports and heliports.
    • In June 2023, Blade and Eve Air Mobility (“Eve”) announced at the 54th International Paris Air Show a significant extension of their long-standing partnership through a memorandum of understanding. The collaboration aims to transform air transportation in Europe, starting with France, by laying the foundation to integrate Eve’s state-of-the-art electric vertical aircraft into Blade’s European route network, subject to receipt of necessary regulatory approvals and certification.

    ____________________

     (1) See “Use of Non-GAAP Financial Measures” attached to this release for further detail on adjustments to GAAP financial measures.

    Conference Call

    The Company will conduct a conference call starting at 8:00 a.m. ET on Wednesday, August 9, 2023 to discuss the results for the second quarter ended June 30, 2023.

    A live audio-only webcast of the call may be accessed from the Investor Relations section of the Company’s website at https://ir.blade.com/. An archived replay of the call will be available on the Investor Relations section of the Company's website for one year.

    Use of Non-GAAP Financial Information
    Blade believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported U.S. Generally Accepted Accounting Principles ("GAAP") results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Unallocated Corporate Expenses, Corporate Expenses, Adjusted Corporate Expenses, Flight Profit, Flight Margin and Pro forma revenue have been reconciled to the nearest GAAP measure in the tables within this press release.

    Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. This measure excludes non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations (as shown in the table below). Blade defines Segment Adjusted EBITDA as segment net income (loss) excluding non-cash items or certain transactions that management does not believe are reflective of our ongoing core operations.

    Adjusted Unallocated Corporate Expenses – Blade defines Adjusted Unallocated Corporate Expenses as segment net loss attributable to our Corporate expenses and software development operating segment less non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations that cannot be allocated to either of our reporting segments. Adjusted Unallocated Corporate Expenses has the same meaning as Segment Adjusted EBITDA for our Corporate expenses and software development operating segment and is reconciled in the tables below under the caption “Reconciliation of Segment Net Income (loss) to Segment Adjusted EBITDA.”

    Constant currency - The unaudited interim condensed consolidated financial statements included here are presented in U.S. dollars. However, Blade's international operations give rise to fluctuations in foreign exchange rates. To compare results between periods as if exchange rates had remained constant period-over-period and allow change in revenue to be evaluated without the impact of foreign currency exchange rate fluctuations, Blade has included results in constant currency. These are calculated by applying the current period exchange rates to local currency reported results for both the current and prior year.

    Corporate Expenses and Adjusted Corporate Expenses - Blade defines Corporate Expenses as total operating expenses excluding cost of revenue. Blade defines Adjusted Corporate Expenses as Corporate Expenses excluding non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations.

    Flight Profit and Flight Margin - Blade defines Flight Profit as revenue less cost of revenue. Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, right-of-use ("ROU") asset amortization and internal costs incurred in generating ground transportation revenue using the Company’s owned cars. Blade defines Flight Margin for a period as Flight Profit for the period divided by revenue for the same period. Blade believes that Flight Profit and Flight Margin provide a more accurate measure of the profitability of the Company's flight and ground operations, as they focus solely on the direct costs associated with those operations.

    Pro forma revenue - Pro forma revenue gives effect to revenue from acquisitions that occurred after the commensurate period of the prior year as if they had been acquired on the first day of the commensurate period of the prior year. Pro forma change in revenue is calculated as the difference between the current reported GAAP revenue and the comparative period pro forma revenue. Management believes that discussing pro forma revenue contributes to the understanding of Blade's performance and trends, because it allows for comparisons of the current year period to that of prior years, normalized for the impact of acquisitions. Management believes that pro forma change in revenue assists in measuring the underlying revenue growth of our business as it stands as of the end of the current year period, which we believe provides insight into our then-current operations. Pro forma change in revenue does not represent organic revenue generated by our business as it stood at the beginning of the prior year period.

    Financial Results

    BLADE AIR MOBILITY, INC.
    CONDENSEDCONSOLIDATED BALANCE SHEETS
    (in thousands, except share data, unaudited)
     
     June 30,
    2023
     December 31,
    2022
    Assets   
    Current assets:   
    Cash and cash equivalents$37,348  $43,296 
    Restricted cash 2,045   1,127 
    Accounts receivable, net of allowance of $63 and $— at June 30, 2023 and December 31, 2022 22,525   10,877 
    Short-term investments 132,342   150,740 
    Prepaid expenses and other current assets 14,710   12,086 
    Total current assets 208,970   218,126 
        
    Non-current assets:   
    Property and equipment, net 2,909   2,037 
    Investment in joint venture 390   390 
    Intangible assets, net 43,933   46,365 
    Goodwill 39,797   39,445 
    Operating right-of-use asset 23,186   17,692 
    Other non-current assets 998   970 
    Total assets$320,183  $325,025 
        
    Liabilities and Stockholders' Equity   
    Current liabilities:   
    Accounts payable and accrued expenses$14,879  $16,536 
    Deferred revenue 10,014   6,709 
    Operating lease liability, current 4,380   3,362 
    Total current liabilities 29,273   26,607 
        
    Non-current liabilities:   
    Warrant liability 8,979   7,083 
    Operating lease liability, long-term 19,833   14,970 
    Deferred tax liability 1,334   1,876 
    Total liabilities 59,419   50,536 
        
    Stockholders' Equity   
    Preferred stock, $0.0001 par value, 2,000,000 shares authorized at June 30, 2023 and December 31, 2022. No shares issued and outstanding at June 30, 2023 and December 31, 2022.     
    Common stock, $0.0001 par value; 400,000,000 authorized; 73,169,003 and 71,660,617 shares issued at June 30, 2023 and December 31, 2022, respectively. 7   7 
    Additional paid in capital 383,629   375,873 
    Accumulated other comprehensive income 3,230   2,287 
    Accumulated deficit (126,102)  (103,678)
    Total stockholders' equity 260,764   274,489 
        
    Total Liabilities and Stockholders' Equity$320,183  $325,025 


    BLADE AIR MOBILITY, INC.
    CONDENSEDCONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share data, unaudited)
     
     Three Months Ended June 30,
     Six Months Ended June 30,
      2023   2022   2023   2022 
    Revenue$60,989  $35,633  $106,260  $62,263 
            
    Operating expenses       
    Cost of revenue 50,620   30,522   88,727   54,229 
    Software development 1,440   1,062   2,563   1,897 
    General and administrative 18,410   12,144   34,667   26,122 
    Selling and marketing 2,728   1,638   5,339   3,438 
    Total operating expenses 73,198   45,366   131,296   85,686 
            
    Loss from operations (12,209)  (9,733)  (25,036)  (23,423)
            
    Other non-operating (expense) income       
    Interest income, net 2,077   455   4,031   719 
    Change in fair value of warrant liabilities (2,462)  19,266   (1,896)  21,816 
    Realized loss from sales of short-term investments (14)  (1,576)  (95)  (1,712)
    Total other non-operating (expense) income (399)  18,145   2,040   20,823 
            
    (Loss) income before income taxes (12,608)  8,412   (22,996)  (2,600)
            
    Income tax benefit (376)     (572)   
            
    Net (loss) income$(12,232) $8,412  $(22,424) $(2,600)
            
    Net (loss) income per share:       
    Basic$(0.17) $0.11  $(0.31) $(0.04)
    Diluted$(0.17) $0.10  $(0.31) $(0.04)
    Weighted-average number of shares outstanding:       
    Basic 73,169,003   71,051,523   72,584,138   70,913,597 
    Diluted 73,169,003   78,497,356   72,584,138   70,913,597 


    BLADE AIR MOBILITY, INC.
    CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands, unaudited)
     
     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Cash Flows From Operating Activities:       
    Net (loss) income$(12,232) $8,412  $(22,424) $(2,600)
    Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:       
    Depreciation and amortization 1,810   1,155   3,462   2,300 
    Stock-based compensation 2,797   1,844   6,018   3,942 
    Change in fair value of warrant liabilities 2,462   (19,266)  1,896   (21,816)
    Realized loss from sales of short-term investments 14   1,576   95   1,712 
    Realized foreign exchange loss/(gain)       5   (5)
    Accretion of interest income on held-to-maturity securities (1,638)     (3,024)   
    Deferred tax benefit (376)     (572)   
    Loss on disposal of property and equipment    65      65 
    Changes in operating assets and liabilities:       
    Prepaid expenses and other current assets (1,004)  (2,197)  (2,625)  (3,902)
    Accounts receivable (6,045)  (3,659)  (11,630)  (4,124)
    Other non-current assets 18   (504)  (24)  (1,152)
    Operating right-of-use assets/lease liabilities 300   105   377   106 
    Accounts payable and accrued expenses 3,470   (1,361)  87   1,275 
    Deferred revenue 2,227   2,220   3,307   2,524 
    Net cash used in operating activities (8,197)  (11,610)  (25,052)  (21,675)
            
    Cash Flows From Investing Activities:       
    Purchase of property and equipment (744)  (189)  (1,390)  (626)
    Purchase of short-term investments (14)  (188)  (135)  (453)
    Proceeds from sales of short-term investments 4,532   197,001   20,532   208,700 
    Purchase of held-to-maturity investments       (130,145)   
    Proceeds from maturities of held-to-maturity investments       131,187    
    Net cash provided by investing activities 3,774   196,624   20,049   207,621 
            
    Cash Flows From Financing Activities:       
    Proceeds from the exercise of common stock options    58   54   79 
    Taxes paid related to net share settlement of equity awards (20)  (1,006)  (101)  (1,011)
    Net cash used in financing activities (20)  (948)  (47)  (932)
            
    Effect of foreign exchange rate changes on cash balances 17   4   20   7 
    Net (decrease) increase in cash and cash equivalents and restricted cash (4,426)  184,070   (5,030)  185,021 
    Cash and cash equivalents and restricted cash - beginning 43,819   4,176   44,423   3,225 
    Cash and cash equivalents and restricted cash - ending$39,393  $188,246  $39,393  $188,246 
            
    Reconciliation to the unaudited interim condensed consolidated balance sheets       
    Cash and cash equivalents$37,348  $186,556  $37,348  $186,556 
    Restricted cash 2,045   1,690   2,045   1,690 
    Total$39,393  $188,246  $39,393  $188,246 


    Key Metrics and Non-GAAP Financial Information

    BLADE AIR MOBILITY, INC.
    DISAGGREGATED REVENUE BY PRODUCT LINE
    (in thousands, unaudited)
     
      Three Months Ended June 30, Six Months Ended June 30,
      2023  2022  2023  2022
    Passenger segment       
    Short Distance$19,184 $10,963 $29,609 $15,166
    Jet and Other 7,406  7,421  15,485  17,173
    Total$26,590 $18,384 $45,094 $32,339
            
    Medical segment       
    MediMobility Organ Transport$34,399 $17,249  61,166  29,924
    Total$34,399 $17,249 $61,166 $29,924
            
    Total Revenue$60,989 $35,633 $106,260 $62,263


    BLADE AIR MOBILITY, INC.
    SEGMENT INFORMATION: REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED EBITDA WITH RECONCILIATION TO
    TOTAL ADJUSTED EBITDA

    (in thousands except percentages, unaudited)
     
      Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Passenger$26,590  $18,384  $45,094  $32,339 
    Medical 34,399   17,249   61,166   29,924 
    Total Revenue$60,989  $35,633  $106,260  $62,263 
            
    Passenger$4,642  $2,478  $7,454  $3,167 
    Medical 5,727   2,633   10,079   4,867 
    Total Flight Profit$10,369  $5,111  $17,533  $8,034 
            
    Passenger 17.5%  13.5%  16.5%  9.8%
    Medical 16.6%  15.3%  16.5%  16.3%
    Total Flight Margin 17.0%  14.3%  16.5%  12.9%
            
    Passenger$(2,075) $(1,085) $(5,130) $(3,694)
    Medical 3,023   1,113   4,903   2,064 
    Total Segment Adjusted EBITDA 948   28   (227)  (1,630)
    Adjusted unallocated corporate expenses and software development (5,396)  (6,147)  (11,945)  (12,216)
    Total Adjusted EBITDA$(4,448) $(6,119) $(12,172) $(13,846)


    BLADE AIR MOBILITY, INC.

    RECONCILIATION OF REPORTED REVENUE TO PRO FORMA REVENUE
    (in thousands except percentages, unaudited)

    The following unaudited pro forma financial information presents what our revenue would have been if the Blade Europe business had been acquired on April 1, 2022 and January 1, 2022 for the three months and six months ended June 30, 2022, respectively. As a result, pro forma revenue includes revenue generated during periods when we did not yet own the acquired business. This unaudited pro forma financial information should not be relied upon as being indicative of the historical results that would have been obtained if the acquisition had occurred on that date, nor the results that may be obtained in the future.

    Three Months Ended June 30,       
     Total Short Distance Jet and Other MediMobility
    Organ Transport
    Reported Revenue three months ended June 30, 2022$35,633  $10,963  $7,421  $17,249 
    Impact of Blade Europe 7,106   7,106       
    Pro forma Revenue$42,739  $18,069  $7,421  $17,249 
            
    Reported Revenue three months ended June 30, 2023$60,989  $19,184  $7,406  $34,399 
    Pro forma change in revenue 42.7%  6.2%  (0.2)%  99.4%
            
    Impact of foreign currency translation 0.4%  0.9%  **   ** 
    Pro forma constant currency change in revenue 42.3%  5.3%  (0.2)%  99.4%
    ** Percentage not applicable       
            
    Six Months Ended June 30,       
     Total Short Distance Jet and Other MediMobility
    Organ Transport
    Reported Revenue six months ended June 30, 2022$62,263  $15,166  $17,173  $29,924 
    Impact of Blade Europe 12,400   12,400       
    Pro forma Revenue$74,663  $27,566  $17,173  $29,924 
            
    Reported Revenue three months ended June 30, 2023$106,260  $29,609  $15,485  $61,166 
    Pro forma change in revenue 42.3%  7.4%  (9.8)%  104.4%
            
    Impact of foreign currency translation (0.1)%  (0.3)%  **   ** 
    Pro forma constant currency change in revenue 42.4%  7.7%  (9.8)%  104.4%
    ** Percentage not applicable


    BLADE AIR MOBILITY, INC.
    SEATS FLOWN - ALL PASSENGER FLIGHTS
    (unaudited)
     
     Three Months Ended June 30, Six Months Ended June 30,
     2023 2022 2023 2022
    Seats flown – all passenger flights41,637 28,241 70,187 46,735


    BLADE AIR MOBILITY, INC.
    REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED CORPORATE EXPENSES, ADJUSTED EBITDA
    (in thousands except percentages, unaudited)
     
     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    GAAP Revenue$60,989  $35,633  $106,260  $62,263 
    GAAP Cost of Revenue 50,620   30,522   88,727   54,229 
    Flight Profit 10,369   5,111   17,533   8,034 
    Flight Margin 17.0%  14.3%  16.5%  12.9%
    Adjusted Corporate Expense 14,817   11,230   29,705   21,880 
    Adjusted Corporate Expense as a percentage of Revenue 24.3%  31.5%  28.0%  35.1%
    Adjusted EBITDA$(4,448) $(6,119) $(12,172) $(13,846)
    Adjusted EBITDA as a percentage of Revenue (7.3)%  (17.2)%  (11.5)%  (22.2)%


    BLADE AIR MOBILITY, INC.
    RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT AND LOSS FROM OPERATIONS
    (in thousands except percentages, unaudited)
     
     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Revenue$60,989  $35,633  $106,260  $62,263 
    Cost of revenue (1) (50,620)  (30,522)  (88,727)  (54,229)
    Flight Profit$10,369  $5,111  $17,533  $8,034 
    Flight Margin 17.0%  14.3%  16.5%  12.9%
            
    Flight Profit$10,369  $5,111  $17,533  $8,034 
    Reconciling items:       
    Software development (1,440)  (1,062)  (2,563)  (1,897)
    General and administrative (18,410)  (12,144)  (34,667)  (26,122)
    Selling and marketing (2,728)  (1,638)  (5,339)  (3,438)
    Loss from operations$(12,209) $(9,733) $(25,036) $(23,423)

    __________
    (1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, ROU asset amortization and internal costs incurred in generating organ ground transportation revenue using the Company's owned cars.

    BLADE AIR MOBILITY, INC.
    RECONCILIATION OF TOTAL OPERATING EXPENSES TO ADJUSTED CORPORATE EXPENSES
    (in thousands except percentages, unaudited)
     
     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Revenue$60,989  $35,633  $106,260  $62,263 
            
    Total operating expenses 73,198   45,366   131,296   85,686 
    Subtract:       
    Cost of revenue 50,620   30,522   88,727   54,229 
    Corporate Expenses$22,578  $14,844  $42,569  $31,457 
    Corporate Expenses as percentage of Revenue 37.0%  41.7%  40.1%  50.5%
    Adjustments to reconcile Corporate Expenses to Adjusted Corporate Expenses       
    Subtract:       
    Depreciation and amortization 1,810   1,155   3,462   2,300 
    Stock-based compensation 2,797   1,844   6,018   3,942 
    Legal and regulatory advocacy fees (1)    164   423   1,911 
    Executive severance costs 119      265    
    SOX readiness costs 35      35    
    Contingent consideration compensation (earn-out) (2) 3,000      2,661    
    M&A transaction costs    451      1,424 
    Adjusted Corporate Expenses$14,817  $11,230  $29,705  $21,880 
    Adjusted Corporate Expenses as percentage of Revenue 24.3%  31.5%  28.0%  35.1%

    __________
    (1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
    (2) Represents contingent consideration compensation of $3,000 in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity's contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.

    BLADE AIR MOBILITY, INC.
    RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
    (in thousands except percentages, unaudited)
     
     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
    Net (loss) income$(12,232) $8,412  $(22,424) $(2,600)
            
    Depreciation and amortization 1,810   1,155   3,462   2,300 
    Stock-based compensation 2,797   1,844   6,018   3,942 
    Change in fair value of warrant liabilities 2,462   (19,266)  1,896   (21,816)
    Realized loss from sales of short-term investments 14   1,576   95   1,712 
    Interest income, net (2,077)  (455)  (4,031)  (719)
    Income tax benefit (376)     (572)   
    Legal and regulatory advocacy fees (1)    164   423   1,911 
    Executive severance costs 119      265    
    SOX readiness costs 35      35    
    Contingent consideration compensation (earn-out) (2) 3,000      2,661    
    M&A transaction costs    451      1,424 
    Adjusted EBITDA$(4,448) $(6,119) $(12,172) $(13,846)
    Adjusted EBITDA as a percentage of Revenue (7.3)%  (17.2)%  (11.5)%  (22.2)%

    __________
    (1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
    (2) Represents contingent consideration compensation of $3,000 in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity's contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.

    BLADE AIR MOBILITY, INC.
    RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO SEGMENT ADJUSTED EBITDA
    (in thousands, unaudited)
     
      Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
      Passenger Medical Unallocated
    Corporate
    expenses and
    software
    development
     Passenger Medical Unallocated
    Corporate
    expenses and
    software
    development
    Segment net income (loss) $(3,837) $(497) $(7,898) $(2,326) $694 $10,044 
    Reconciling items:            
    Depreciation and amortization  1,363   397   50   744   374  37 
    Stock-based compensation  352   123   2,322   333   45  1,466 
    Change in fair value of warrant liabilities        2,462        (19,266)
    Realized loss from sales of short-term investments        14        1,576 
    Interest income, net        (2,077)       (455)
    Income tax benefit        (376)        
    Legal and regulatory advocacy fees (1)           164      
    Executive severance costs  47      72         
    SOX readiness costs        35         
    Contingent consideration compensation (earn-out) (2)     3,000            
    M&A transaction costs                451 
    Segment Adjusted EBITDA $(2,075) $3,023  $(5,396) $(1,085) $1,113 $(6,147)


      Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
      Passenger Medical Unallocated
    Corporate
    expenses and
    software
    development
     Passenger Medical Unallocated
    Corporate
    expenses and
    software
    development
    Segment net income (loss) $(8,955) $1,140 $(14,609) $(7,842) $1,216 $4,026 
    Reconciling items:            
    Depreciation and amortization  2,497   863  102   1,478   750  72 
    Stock-based compensation  712   239  5,067   759   98  3,085 
    Change in fair value of warrant liabilities       1,896        (21,816)
    Realized loss from sales of short-term investments       95        1,712 
    Interest income, net       (4,031)       (719)
    Income tax benefit       (572)        
    Legal and regulatory advocacy fees (1)  423        1,911      
    Executive severance costs  193     72         
    SOX readiness costs       35         
    Contingent consideration compensation (earn-out) (2)     2,661           
    M&A transaction costs               1,424 
    Segment Adjusted EBITDA $(5,130) $4,903 $(11,945) $(3,694) $2,064 $(12,216)

    ______________
    (1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
    (2) Represents contingent consideration compensation of $3,000 in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity's contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.

    BLADE AIR MOBILITY, INC.
    LAST TWELVE MONTHS DISAGGREGATED REVENUE BY PRODUCT LINE
    (in thousands, unaudited)
     
        Three Months Ended
      Last Twelve
    Months
     June 30,
    2023
     March 31,
    2023
     December 31,
    2022
     September 30,
    2022
    Product Line:          
    Short Distance $59,429 $19,184 $10,425 $9,418 $20,402
    Jet and Other  27,667  7,406  8,079  7,081  5,101
    MediMobility Organ Transport  103,021  34,399  26,767  21,636  20,219
    Total Revenue $190,117 $60,989 $45,271 $38,135 $45,722


    About Blade Air Mobility

    Blade is a technology-powered, global air mobility platform committed to reducing travel friction by providing cost-effective air transportation alternatives to some of the most congested ground routes in the U.S. and abroad. Today, the Company predominantly uses helicopters and amphibious aircraft for its passenger routes and is also one of the largest air medical transporters of human organs for transplant in the world. Its asset-light model, coupled with its exclusive passenger terminal infrastructure, is designed to facilitate a seamless transition to Electric Vertical Aircraft (“EVA” or “eVTOL”), enabling lower cost air mobility to the public that is both quiet and emission-free.

    For more information, visit www.blade.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Blade’s future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning Blade’s future financial and operating performance, results of operations, industry environment and growth opportunities, and the development and adoption of EVA technology. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

    Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blade’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include: our continued incurrence of significant losses; the impact of the COVID-19 pandemic and its related effects, failure of the markets for our offerings to grow as expected, or at all; our ability to effectively market and sell air transportation as a substitute for conventional methods of transportation; the inability or unavailability to use or take advantage of the shift, or lack thereof, to EVA technology; our ability to successfully enter new markets and launch new routes and services; any adverse publicity stemming from accidents involving small aircraft, helicopters or charter flights and, in particular, any accidents involving our third-party operators; the effects of competition; harm to our reputation and brand; our ability to provide high-quality customer support; our ability to maintain a high daily aircraft usage rate; changes in consumer preferences, discretionary spending and other economic conditions; impact of natural disasters, outbreaks and pandemics, economic, social, weather, growth constraints, and regulatory conditions or other circumstances on metropolitan areas and airports where we have geographic concentration; the effects of climate change, including potential increased impacts of severe weather and regulatory activity; the availability of aircraft fuel; our ability to address system failures, defects, errors, or vulnerabilities in our website, applications, backend systems or other technology systems or those of third-party technology providers; interruptions or security breaches of our information technology systems; our placements within mobile applications; our ability to protect our intellectual property rights; our use of open source software; our ability to expand and maintain our infrastructure network; our ability to access additional funding; the increase of costs and risks associated with international expansion; our ability to identify, complete and successfully integrate future acquisitions; our ability to manage our growth; increases in insurance costs or reductions in insurance coverage; the loss of key members of our management team; our ability to maintain our company culture; our reliance on contractual relationships with certain transplant centers and Organ Procurement Organizations; effects of fluctuating financial results; our reliance on third-party operators; the availability of third-party operators; disruptions to third party operators; increases in insurance costs or reductions in insurance coverage for our third-party aircraft operators; the possibility that our third-party aircraft operators may illegally, improperly or otherwise inappropriately operate our branded aircraft; our reliance on third-party web service providers; changes in our regulatory environment; regulatory obstacles in local governments; the expansion of domestic and foreign privacy and security laws; the expansion of environmental regulations; our ability to remediate any material weaknesses or maintain internal controls over financial reporting; our ability to maintain effective internal controls and disclosure controls; changes in the fair value of our warrants; and other factors beyond our control. Additional factors can be found in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Blade undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.

    Press Contacts
    For Media Relations
    Lee Gold
    press@blade.com

    For Investor Relations
    Ravi Jani
    investors@blade.com


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