BLDE - Earnings call transcript Q3 2021 | Blade Air Mobility, Inc.

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Operator

Good morning, and welcome to the Blade Air Mobility, Inc., fiscal Third Quarter 2021 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Tom Cook, Investor Relations. Please go ahead.

Tom Cook

Andrew. Thanks, ladies morning gentlemen. and good And standing Thank Blade webcast. welcome the and Mobility you fiscal and for Air call third to conference by quarter XXXX appreciate today. joining We everyone us

and reform the like Before to started, may this filed constitute of by maybe the those the subject Form risks statements XXth, conference May act not with within language. to uncertainties we about company's SEC are materially in forward-looking XXXX, meaning and the that statements. S-XX forward-looking for private August XXXX. fact, forward-looking XX-Q our remind results Statements we to actual refer implied on ended statements differ with forward-looking made statement I'd or including securities These XXXX, to of then you statements historical June SEC XXth, get our future the filings XX, expressed call our Harbor and Safe period, And quarter litigation on you from of SEC XXXX. the including future are the Form the

call. of factors date detailed this call risk forward-looking as of made the statements cause conference could a more only differences. For provided these this discussion during of that are Any the

stated to As intent required as SEC these disclaims forward-looking except or Blade update any our in filings, obligation statements revise or by law.

and our With founder call or prepared today's isolation are the I me financial Blade; Executive These available reconciliation results is Will GAAP. Wiesenthal, website. accordance we During should measures in on also be Heyburn, Chief provided be A Wiesenthal. non-GAAP Officer. most be not the an press can Rob? believe non-GAAP turn will Chief of Financial release to Rob which as non-GAAP in comparable today's financial useful to will which our now call GAAP measures in those measures over Officer at we performance. Rob of with call, financial financial our directly evaluating and substitute financial discuss will our considered measures for

Rob Wiesenthal

for public Thank you, earnings in Tom. quarter Good Blade and morning, everyone. call you first you a XXXX very to ending and fiscal June growth our our our I'd of compared welcome for XX% our pleased growth the third you to your interest thank inform XXXX, XXth, great a report revenue like I'm We to quarter XXX% as and XXXX pre-COVID to had company. versus revenue period. the

our our we organs our moves fixed to wing dive compared commitment prior we with particularly single fliers results, showing without I'd service critical person transplant to business never for our hospitals employees operate every human have year would Before MediMobility team team helicopter experienced replacing like and been is dramatically This essential possible our it which in we business services continue the on and North to thank up through so East. day last pandemic. ground for providing as that and particularly continue first across aircraft. into safety our team the by grew our could our The the and their of to

shown even before versus to period uncertainty remains rebounded and growth still now have public. line historical business other the our While pre-COVID the

And and implementing trust health the has In approach adjust the passengers with safety safety our help be we light and virus. as quickly to need they Blade to and dynamic our to of of away in Our seamlessly needed. led continue to get the whoever us fliers our remains of in and nature employees protocols. paramount.

that vaccinated starting this Thursday, longer all company first whole masking air. protocols in the This recap flights. our Blade, it is they results the be in in-flight a for first company announce few aviation we to we September the competitors, position We versus first our minutes we the testing on testing like I'd for will course It's on-site pre-boarding continues. strategic COVID oxygen exemption believe the on to aviation that blood Xth ground most important been the review scaled. leadership requirement had first past from take and by With to are saturation recommended flier to trainings And and our mandate And health volumes. the the fliers provide with to an lead quarter. differentiator CVC. before were to to a recent increase priorities

term need by at The our let means liberally aviation asset-light so a remains "asset-light," aircrafts. platform. Blade new operating is companies, We own what it the model Our key me differentiator. explain Blade. you is

and integrated of in This partnerships. business this response effectively Our services customer than the during no the and strong our through as enabled fluctuations model of highly pandemic. example performance operator of to allows the cost environment. us quickly our to scale approach demand flexibility growing network as macro well is better There are embedded aircraft our and

our travel great for when reduced XXXX aircraft. of spring a maintaining early back And occurred, service supply them During brought while in we snapback fliers. lockdown in online non-MediMobility the we and economics immediately quickly our we're XXXX, consistent

third-parties aircraft to our operate on business be this, pursue achieve routes to Electric for will priorities key industry Vertical and own Blade transition "eVTOL" the using undertake and growth today will we short highly EVA well as targeted of plans available. that will for can as appropriate "EVA" identify conventional To organic our We approach be that When EVA continue the today that are successful acquisitions Aircraft, behalf. but once as to launch also partnerships. and to filings, we or call in Blade's committed this as and prepare will partner is them we with

EVA our bringing same goal alliance time, competitive the these maintain and be to manufacturer we'll helping So, achieve to for infrastructure advantages. enabling sharing our our unique At quiet, us flight mutual public. partners free, groups the emission the of

start in we once service pleased service the we On JFK also the with we're this early pausing far to related performance New the to the of new pre-COVID. and We're all resumed so northeast service launched By first after front, June, when three in airport at beginning fall, of Manhattan flights XXXX in York airports, our airport especially the with again this to route routes XXXX. compared group restart, pandemic. we as to between corridor JFK this military launch service preparing results plan

new Further our both we manufacturers. in accelerate share I transactions additional emission-free this details year-end. continued of calendar will to strategic to We before emission-free we the that into strategic support will the about our year of to partnerships, With with two respect leading mode mean transition this end and acquisitions announce pipeline fortify growth. EVA our our entering have future alliances like required expect before features, and

new this the Eve electric four. we with Blade and announced partnerships Just aircraft to magniX bringing of quarter, total number

divisions. their of fact Although respected including and Embraer are where in Two test Eve is partners their these of well-capitalized companies aircraft today flying one UAM pilots. with

Lima secure completed. operating seaplanes given reduced enable the when units to to will as commercial Blade's northeastern supply with to speed provides at lower fleet its aircraft of Blade all-electric routes starting current for to that aircraft as across largest Our it significantly agreement operating aircraft noise will seaplanes be electric Electric with of the by emission same utilized partners. This engines to operate EVPs ambiguous aircraft aircrafts spectrum already for expected branded and the with use is is a development currently a magniX and propulsion are free near-term generation EVA and uniquely XXXX certified costs. as bridge alliance compatibility southeastern or Blade's of Blade. supplied Blade will early enable Lima turbine converge are being important the as

Westcoast Our EVA beginning a capabilities and a our agreement into are fees by pay lines mission variety aircraft aircraft These Wisk schedule deploy development markets We'll asset-light Eve partnerships and alliances over both their to that, which addition discuss one commercial in to and technologies I'd with to our it Larry to our our Florida Heyburn that our Will completed. more the XXXX for Page's when with Eve share operated Blade use results expected financial enable necessary future and CFO, Kitty be its FAA have de-risk data to approach. Blade consistent in agreements turn will our any on partners, deployment be with again our calls. additional venture like will profiles. joint South developments giving of to with With certain entering the local Boeing alliances respect wide to subject Hawk detail. hour the on with between and of in to portfolio are different additional approvals. earlier manufacturer alliances These Blade in Aero by will EVA of with

Will Heyburn

approximately results the service Thank far. Blade encouraged New strategic long-term progress point launch XXXX into achieved annualized York and between very the JFK. single passengers by the and are we've ahead great Manhattan relaunch, Rob. continues our rate to plan. route well months XXXX our Two relaunched of we same We of for airport make and in our June XX,XXX already in City a are an you, in so run

the at plan three XX,XXX routes, service to peak XXXX, in fall, our New approximately York. back For York to This pre-COVID LaGuardia passengers. service new rate annualized expand JFK late and an New include running contacts had we and historical LaGuardia, our we run to both of

Most often are tiers. last electric by be likely of short, aircraft. by expect Blade's city not and us exist transfers our to XXXX. pre-pandemic pleased for that from in but with same below be revenues commercial XXXX this focus intra-week transport, XXX% This Moving levels meaningful by the period dramatically. impressive $XX of are $X.X million the use as Distance to Revenue helicopters XXX% at primarily last not shifting on peak transfers at XXXX cargo to to travel as area XXXX, did airports and EVA. jet with case by levels the these Blade vertical well near which our MediMobility schedules replaced ground this in given quarter. line weekend mile the XXth, XXXX comparison business up an in pre-COVID June million will ended as by transfer million important driven congested will XXXX million short grew organ transport use $XXX,XXX demand million coordinated was exceeded MediMobility to we only that very $X.X the MediMobility by commuter Short million $X.X period in to recovering XXXX. XXX% in the period quarter results our as lows. with work an in compared increased and in strong We're XX% levels the offset with was $X.X the demand COVID from pre-pandemic increased in-office XX% financials lower typical to recovery XXXX remained especially hospital-to-hospital revenues revenues first in is from Even from of currently remains in $X.X are revenues pre-pandemic trips for from XXXX. for mile for June for to XXXX XXXX. of to marking using A same point

Finally, $XXX,XXX increased by who from exposure XXXX XXXX, paid in to in driven brand other to $XXX,XXX partners revenue fliers. Blade's for primarily

to Our XXXX decreased of revenues cost revenue XX% percentage as in in from XXXX. of XX% the

look higher significant increase improvement XXXX from you distance passenger operators revenue If in our which of includes on XXXX. of is by to revenue in fee, at by the and our XX% a pay in of seat driven an XX% cost see less this, landing was to and flights. flying revenues This utilization margin short cost the we

revenues months a typically a this above our quarter only route Airport XX for than with quarter Additionally, they routes was begin new which and revenues negative Blade until average minimal impact higher first the see did ramped schedule from new limited not to launch. June this operating utilization breakeven. as at cost of saw

by to negative negative from operating demonstrated leverage in as improved period XXXX. our million which negative to seeing $X.X in are this $X.X XXXX adjusted we compared our million costs EBITDA Importantly, comparable $XXX,XXX and

platform benefit continues. scalable to our as approach continue to expect We from this

insurance a in were For to excludes prior of with Blade incurred to include EBITDA as was feed These a professional prior adjusted third-parties and quarters this comparison the new the incremental company. directors public were not operating liability purposes associated private that officers services metric which comparable and costs recurring company, when paid costs years.

to which negative EBITDA million a a negative XXXX. words Though few the XXXX being negative adjusted Our the $X.X the to-date, we million not $X.X and recurring A return is public company quarter in effect to a compared in same from third-party million period includes and impact travel. the negative in $X.X of costs totaled this forecast work office variant difficult it delta business have seen very future. to in slow about the potential normal

as XXXX policies office benefitted hybrid and weekend morph our into commuter XXXX remote routes. late a hand, us one the in X-day driven On early routes leisure week

similarly going to full the winter benefit to fall to we the our this period As plus XX-mile offseason. pre-COVID and could business employers and expect the to in commuter year delay during outperform office, continue returns

slow On recovery reduce for the office other in hand, business travel may return which demand the a delay Blade would to Airport.

Additionally, the fact September will short the heavily fully pre-pandemic. next not has on that distance effect business a our COVID we that quarter significant more short impacts, weighted towards revenues were quarter. distance results expect from Thus business recovered yet lines have

Looking cost of provide on routes utilization a expect economics strong to matured our a contribution. we unit positive predictable revenues, to to our continue and

corridor strong with to in ramp we with forward, Airport contributions from these matured XXXX. new year moving plan to calendar balance routes, our this and sheet along northeast Moving to starting leverage the businesses year the aggressively up

of negative saw relaunch impact from quarter June, ramp. Blade this cost did As its since net not limited Airport

expect the invest and next at months we running loss aggressively to in capacity We be as least Airport to additional new for passenger airports. a XX continue at

As revenues would plans. September executed We've revenues June cost expect in in public support result, company also of quarters. of these a to increase to recently place our growth been and reflected be may additions in we building Many the or a and our team order fully not coming transition our of against took as quarter. the percentage

will a Our for and added but a basis current on future our fall cost transaction new as we growth. quarters one-time as SG&A costs rate good accelerate run proxy of marketing away employees non-adjusted is be

asset-light cash limited capital free our as as better requires be we business expenditures capital than profile consistent networking should model position, flow negative as at our actually grow. well Looking EBITDA

insurance company we prepaid expenses. this hit D&O public did For quarter $X pre-pay of over million which

year-around expansion Looking connections, significantly as on Blade's and focused such commuter airport less strategy transfers seasonality routes. ahead, is inter-city new keenly routes with

preliminary this to we've topic public fiscal $XXX our board change our year-end. strong to sheet debt-free in transition and In company, a a growth to this consider strategy. more early closing, our discussions a evaluating expect XXXX. on recent begun We've have them million Given than more change formal we a balance in shift reporting a to support as with had XXst December typical with

where We will its continue to today. achieve maintain and can focus markets unit on the sustainable leadership largest economics Blade status

structure it the only to more back make Rob. serve Moving aircraft to Urban forward, we the turn Mobility believe I'll transition improve our vertical cost over that, Air to electric With accessible will to around world. and people

Rob Wiesenthal

Thank you, Will.

to Air me take Let within a strategy moment as industry. Mobility our the Urban broader emerging

already to budget business. with may capital it and do company design it a be year this into task $X transportation, is vertical First, the EVA there of alone. our a Outside have no invested the standalone manufacture incremental $X going space EVA for in Simply public put, manufacturing and do not public it Over than to few and Five data on that ambitious gone scale schedule. have either as during expectations the build to or more and and rate process certified do billion manufacturers to in points. billion electrical of on more been aircrafts.

and These a continue of ensuring the We EVA seamless Urban we provide the have building, for of acquiring competitive possible trusted consumer-to-cockpit users. team to effective we the six focus strengths layer markets manner. our are on the and brand exclusive had public well the cost as necessary our in an of service over ground elements in similar the have XXX,XXX safe our with replicate. technology network aircraft extremely flier best deployment partnerships XX/X locations they difficult experience years, past elements all in country, key These Mobility as our Air and to most creating, the the in terminals of to will convenient include leading important are our stack, manufacturers, in

public today as conventional we to Unlike we aircraft. as achieve Air many services ecosystem, As the growing the companies rotorcraft, in new to a and EVA have position Mobility deploy using quickly a flying manufacturers using in will and business powerful possible. enable strong their build to Urban be to safely continue we conventional

set commercial as accretive end, important fall our York of As a an calendar such, of we've by to require the route City cash more acquisitions of through corridor period plan. two our quarter of XXXX. airport area in business routes by operationally year in public business twice important and launch northeast upon for pre-EVA was Two remaining execute New well the early the great investors. milestones this while addition a number amount financially going and this the raising than This as we both and

current to capital like discuss I'd market's briefly close, current the we Before environment.

the to launching current has and performance and for with our hope upcoming quarter balance starting market eliminate emerging services the Blade. performance our view gap. our of $X.XX announced time managements quarter strong that company. in valuable With sheet, both the milestones growth continued This with share couple our and reflect great companies cash that acquisition our is adequately on achieving be for we to it debt-free share price does like approximately a per today our financial prospects We serve a not to this will new board's

prepared the for we value balance we need have given to Tom we sheet fund enhance if over than is questions. strength have and right. it when business With plan, to turn I'll time the if However more to twice cash now the our do and necessary we to, that, so are shareholder to

Tom Cook

Rob. Thanks,

Analysts Investors directly. Operator, enquiries today. ready reminder, now questions. questions we this on me call a we're for from As send and to take will should Reporters

Operator

Instructions] go you. Etah with from Michelle question first The comes Thank ahead. [Operator Please Citi.

Etah Michelle

thanks. great, morning, guys. Hi Good

Rob Wiesenthal

morning. Good

Etah Michelle

passenger the kind fliers were you those many platform you that of recovery maybe saw how versus who kind new were the on prior back? to Blade question first of quarter. the this coming The can share were do flown, to that Just past

Rob Wiesenthal

routes, will commuter Well, seen majority lot quarter, for routes say in on That And the quarter this I as change reliance lot this think seven the in At flying passengers the and if disaggregate of week. this of were I that's a shift We into who been to given we and the had biggest week were say our cadence passengers would our of the did introduce of same flying passengers. the ability leisure didn’t able flying for core was until fly but a had Airport during that back next of We just a that to we've before, we prior given same quarter us. saw it those matured days time, a days April the Northeast. June. not kind the go the see when Blade to ourselves saw you new we because that seven week. and passengers from people weekend-only we in driver

which that kind did business we both those a So, the of opened the brand during up really and business flier we're not breaking of see new days to out for those segments. numbers

Etah Michelle

And Got upcoming just couple on questions of maybe quarters. kind of it, very helpful. two then that's the

you about models the next margin that to dilution should think next I tough gross forward that Airport can you few have back you. route the XX then well going months. as new of kind think Anyway really trended of variant. maybe to you And the delta how quarters Any impact? bring some we mentioned trends mentioned perhaps the of over during quantify the roughly predict you over as how still you for So, know out July about around comments I know

Rob Wiesenthal

saying You're of impact delta?

Etah Michelle

comment June. Blade far trend, in of for seeing you quarter. anything delta impact then just just ramp the Airport if thus And you're July kind on at beginning -- if so, could of maybe secondly, the early the just on The

beginning. that to loss it the can quantify terms at you from Anyway the think Airport run gross I typically should a what margin that the impact be ramp? in mentioned in of

Rob Wiesenthal

been the this Blade of kind and health our Again, not safety Airport mixed chose see safety what second Sure. of I we other terms it's of always seeing. our who of protocol, because to in of Will say of forms not terms bag. I'll take fly would let ramp, concerns. What of and because we've passengers take in transportation fall part did is

So, that’s wrong.

Additionally, this the and time because cancelled have plans talking summer of fliers were of whole had about plans. may overseas there longer their delta basically same to to-date, Blade travel definitely that distances lot I'm that a variant perhaps at

travelers of across We leisure on we routes. closer seen this much nearby the travel much business so, for some our just more saw focus greater And definitely a our term summer. staying consistently by

Will Heyburn

terms very if be of Blade impact at cost we're routes as revenues, then adding less mentioned, we aggressively. we'd Airport, revenue And margin of And you in year. the ramping from those additional this look

a negative expect low would impact. I dollar single-digit million So,

that year. rest So, revenues less cost the for of revenue of the

Etah Michelle

For Airport?

Will Heyburn

Airport, yes. For

Rob Wiesenthal

X.X flights six passengers And again, Airport anything of out aircraft. on we breakeven on at typically possible that above passengers

engage hurdle very is very can that's time let can fly most and need how luckily schedule that they meaning high but fliers still robust we So, a our really a they to not them. to well them

Etah Michelle

Terrific, that's Thanks, all. so much. Very helpful.

Rob Wiesenthal

you. Thank

Operator

go The ahead. with Oppenheimer. Please Jason next Helfstein question comes from

Jason Helfstein

Hey three. guys, ask thanks. I'll you

First, we the of what's secure deals, cetera. about you you, cost to kind talk EVA et the of - kind the you to committing to are the what like to, cost what's just may

basically that is then, to resume the that. like take same as or or before. And kind Second, Airport generate of assume Thanks. different that it are service as seasonality does it will of remaining seasonality can airports want give to should the in talk the there revenue to about was any be MediMobility, your quarter, same a investors ability which or should business grow you

Rob Wiesenthal

manufacturers at in on and make kind the would to the commitments look who'd is pretty the fly. to to And or everybody in will them and finance with model, certain costs phone move your Consistent own. to terms flight want we know can conventional what the is asset-light do do. service on pay to do them people EVA had of which you were say at their much first question deals. third-party that to with this and there we've platform, many how work like we operate with you about us for take you kind of to X can our again manufacturers talking our past EVA who we of on instances instances think a certain we with who Well, they in Okay. the often And we'll aircraft aircrafts manufacturers work we volume calls year. businesses, purchase how operator in your if And at conventional the from hours enable look hours that that fact, could get many finance we

So, we expect that model to continue second going forward. Okay. question? What was the

In any there Airport are --. terms of the the about service, itself, saying service asset talking different, you you're being actual any is

Jason Helfstein

a I of given mean since changes apply that just I was things Yes. and kind of or used guess, then any to airports? that or kind guys improvements them of been kind or be any it. there Would trust they improvements pre-COVID imagine you other it's the back it you have just to while bring

Rob Wiesenthal

only in tarmac importantly, when minutes JFK XX in enjoy say I that this saves did and getting we're increment learnt we when the continue the quicker. think and to behind airlines flight land and obviously car. it's directly probably drive it the more first with we Yes. tarmac But service you which most of lot walking American a turn Look, much can tarmac into two-hour Airlines driven effectively actually at a had have work a the weather. finding with we a off be airports recovery plane That with behind by think not much time terms there's in airport American you we to an we five to when turn get your a Blade and helicopter. the I to where dealing We're

those few MediMobility. alliances a that the see talk think let future. I to about got Will more I'll in of So, we

Will Heyburn

Jason, not on your the of MediMobility seasonality in revenue question, few line, seasonality. show did that the business the disaggregation sort things

However, showing good been and growth. it's

However, the And jet, in business it's there buy jet line. that charter seat is seasonal. that the some the also seat is on jet and by

the focused service months and One our Miami Blade winter that's is that Aspen. at on So, then if

jet And see you of over So, be positive bit then things, season. couple impacts charter from of unpredictable. a million the can little that it side a the

it not is there it say piece to quarter-to-quarter. can that pattern So, specific but I be its lumpy wouldn’t

revenues helps a down there a hopefully some So, There's that moving phase are that it strong breaks in have And doesn’t of follow-up? pieces. but there to pieces. there you seasonality was

Rob Wiesenthal

Anything else?

Jason Helfstein

queue. people, in mean depending the other I'll go thanks. there's back I'll I'll another I yes now, ask one queue, go the in back

Rob Wiesenthal

think segment, I is We're opening, growing which obviously not where and the on. focusing seasonal. majority But segment Yes. vast this the be fast we'll MediMobility is that's

Operator

[Operator a from follow-up ahead. Jason Please Oppenheimer. Helfstein go have Instructions] And we from

Jason Helfstein

not. why Thanks,

potential of Hampton, any how of concentration on of particularly any there, some other about policy are and how I'm Just are kind -- the with the issues up any Rob, you commentary parties coming thinking about the business et there the cetera stuff you risk think where of thinking with kind extent or time just location thanks. changing do to you at landing think it kind I about of the

Rob Wiesenthal

The out Long Sure. the to especially leisure route have news good is we Island.

to routes flying. it's are our this stop Our EVA. of future identifying strategy is core is The passengers are not which distance that for short going -- to not legacy ours, market growth the had well-suited since

of fly we Hampton, minutes the to Westhampton, all only areas Southampton, East many be the bodies actually none-the-less we'd Easthampton mean water there into from local amphibious Airport, even I and away are Montauk even in Now, that Town airport. seaplanes which in of XX

opportunities them going to think fly are flying. So, to fliers very multiple would to for close airport We've our keep shortsighted, the to I area. be the that that

not it it's is tremendous There people terms community see of think may that impacting the frankly some just economic about minor know you in as I think. something benefit So, impact. much million $XX we to jobs our business economic as as that was

to if So, it and too flying fly. and it's hopeful keep been will they a intending be for they'll were not years we are to over our a to originally going not keep they're open, XXX from continue fliers open away landing far

Will Heyburn

sighted that short in growing there airports final to emission-free electric all because or I over that noise and quiet mention country for is it this the One that mitigation will what aircrafts. on is I are think be considering very terms a be do, of really may strategy precipitous understanding heliports think or we could

So, our large not deal where terms is with magniX hurdle XXXX. that in that's a that this. a That's not certification of --

changing taking is and essentially the aircraft free. an quiet and motor electric that existing emission an to motor You're

pretty a So, in I think we're in shape that front. good

Jason Helfstein

Thank you.

Operator

any our the conference concludes closing session. would like and over Blade, I CEO Wiesenthal, to Rob question of This answer back for turn to remarks.

Rob Wiesenthal

because today. you we their call had questions to this Tom I of and call in for Cook to Well, that take feel anybody think any reach forward he'll this had we're talking we all And over at those us back and us. you to have. We look look refer of fine. to And questions ICR answered not forward time constraints, to joining soon. them you appreciate take free If to

Operator

conference Thank has for now The concluded. today's attending presentation. you,

You may now disconnect.

Blade Air Mobility (BLDE) 17 Aug 212021 Q3 Earnings call transcript