BLDE - Earnings call transcript Q2 2022 | Blade Air Mobility, Inc.

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Operator

Greetings and welcome to Blade Urban Air Mobility’s First Fiscal Quarter 2022 Financial Results Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this event is being recorded. I now like to turn the conference over to your host Mr. Relations. Investor Cook, Tom ahead. go Please

Ravi Jani

and morning, today. ladies President by Ravi Vice appreciate conference This welcome March quarter XX, XXXX. and Investor Relations. gentlemen. We call Mobility of Air standing joining the is for Thank the to ended us Jani, everyone Blade Good webcast you and for

including future expressed Private Act in company's forward-looking are of and These Safe time Any the materially report implied for We uncertainties, filings, to facts, differ Harbor cause within statements Before forward-looking statements. we of like our those about with discussion constitute would statements as not statements you the annual including our detailed may I and differences. call. periods statements call made date filed are conference to the remind are Statements forward-looking of SEC more made provided from maybe refer that the this Securities only XX-K of get started, deemed and the meaning by risk to actual SEC subject could forward-looking during call you this of the conference a this these Form that to risks Reform of forward-looking factors the future statements language. Litigation or on historical XXXX. results

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

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

Robert Wiesenthal

the thank XXXX call March report and Thank we cost everyone. Blade earnings over states. revenue and realizing acquisition which short footprint US expected, to us first you, strategy Ravi. for for of quarter like of XXXX March success quarter our by ending seasonally business has and large footprint headwinds handing core morning, medical great your Omicron growth I'll Revenues our of before rewarding demonstrates base, financials begin in quarter XXX% more new short further quarter Organ in increased March in in Even I'm growth to business box the overview such expectations. Blade platform, operating the in enabled clients you call to XX It is in immediately extending testament XXXX, of with was welcome while start cargo. cases we precious where aggregating the our to XXXX to true to the the versus quickly far with million our for quarter period. best integrate geographic what have repurchases our Will well the comparable Revenue Urban year-to-date results ended $X.X you been I'd that million driven extremely staying this first to interest our in face XX,XXXX. of benefits. Air generated world's ended in happy and for and consumer to short-term use XXXX the March is ahead It see and Air distance to growth cover last Transport XXXX our our the part diversifying Blade. in a $XX.X in the by also existing a in lightest very Trinity XX won business. quarter Medical in detail. for Mobility than XX, more was It Good September to to our smile in our Blade’s MediMobility

here community saw Omicron As and we've today. expected, to with business in major United shorter means in every outcomes DNA long team part oregon it service and transit rewarding business. times the from hometown key and businesses, Blade history cost advanced Vancouver our the distance sales providing absolute transport lower in a service travelers more now our from to were seamless during economical faster is discerning trips reducing Blade our of as the leads approach’s prices. our platform New better and clinical been for to utilization what as This contraction comes well strongest provide level most we response service a believe result, mobility critical we recipient to headwinds our MediMobility as York best past this or transplant margin. as competitive us organ armed organs, at Precision redundancy client and our this we structure, When of the our the technology logistics to short times and inherited it oriented a very moving for in consumer-facing people here, it at in always team Airport say services in of and has In transport business, flight center is across led transplant City, particularly to States. quarter,

volumes equity but and demand decision analyst look get And However, ESG. maintain and detail, turn let I'll we've in with out of for availability forward BofA. once at back as could joins Ravi by for from Will of experience to our his enjoying with Relations also discuss the to York it welcome him to to to Citadel as incredible weeks, team New introducing executives Investor people getting as and call business. recent we chose more travel Airport is business. decision be again recent back in and road many see I'll excited service in the as to over transfer signals I'm been City record Jani in rewarded our the the that, well to on to Ravi not our happy us coming research with you an more Well. VP weeks. in I prior I progress. that

William Heyburn

Thank reduced you, our resumption to Blade million versus XXXX personal as in through Growth highlights few our charter, period. quarter. March in of lines. Airport $X.X from acquisition in XXX% were Helijet's $X.X Rob. the the as revenues service, season products. up short for comparable well distance I'll quarter by partially of million which the walk revenues in offset a helicopter commuter in the began routes In and demand passenger June XXXX, our $X.X was our which demand for XXXX contributed Vancouver, business driven of off by was business This increased million

One which to increased XXXX organic and power significantly Trinity New all cylinders stronger accelerated about Florida. and service Jet. Blade on is clients, has driven seasonal Growth MediMobility and of we're by our the between Turning growth platform, the South $X.X addition for our and expanded and excited and Organ firing York Blade customer our was hospital demand Medical XXX% Transport jet in new combined Trinity and to the of base. quarter this Trinity comparable of Revenues versus $XX.X Air period. million million acquisition jet

revenue. of cost to Turning

consumer-facing call our our last lower past we we given As full Omicron expect discussed some businesses. the quarter, decision levels on wave, this service thus, made in utilization to throughout maintain see pressure earnings to and the did margin

As the quarter, to such, slight margin service XX% decrease to driven Vancouver. during and versus impacts in of by resumption Blade Airport this breakeven this utilization the with which June Omicron operating Blade in XXXX XX% coupled phase period, both ramp-up quarter was XXXX the comparable Airports below

a week at to commitment Airport, in saw month weeks. paid now and to ahead expect XX,XXX Vancouver year our this utilization maintaining return capacity of profitability invest operating rate coming route run However, breakeven off. has the we to and in capacity will flyer to is per best we demand. expansion ever our continue and we with In

price now recent getting COVID travel are amongst in being expect well margin increases, are return folks as lifted we strong flyers our as that improve seat flight restrictions future short, Additionally, In to further sentiment to the have been would leisure business back conferences. getting and the in and road to flight on XX% Vancouver, they enjoying meetings for current for margin travel in approximately had quarter. missed Absent back quarters. the Blade Airport

to investors with mature forward, provide our order continue businesses. regarding clarity Going routes will of margin we be and quarterly more provide profile new to of attractive margin to impact flight and our greater detail in the

as in public, non-cash platform. and back from $X.X increased period. increase support as $X.X insurance $X million order same increase primarily officers' general $X.X and staffing was that importantly, a our $X.X the in now driven adjusted to to software non-cash million our the in the increase Let's and million our of which expenses selling, acquisition at comparable in turn million the Trinity, SG&A of intangibles well amortization reoccur one-time Trinity to as includes which the in and decreased we $XX.X revenues fees, connection leverage a Most acquisition Helijet regulatory costs Total comparable marketing with added demonstrating XXXX a million increase administrative company administrative do expenses, million quarter, a percentage this legal in The of March increase the and following and and quarter and in the expenses. increase level, public general SG&A development, mergers and in EBITDA, a costs. selling costs expect and not XXXX million when to advocacy excluding transition, $X expense becoming by transactions, company to public and are in directors’ company operating

quarter expense in on Given to year quarter the weeks. flight an further momentum. seeing negative Despite basis significant past be in expect the reported no short-term And as significant Airport first discussed, high profit M&A. during and the we the to one-time Today, watermark amount for our the of improvement impact expect quarterly quarter, excellent realized for as this recent have SG&A do we're expenses ahead. in the we we Blade assuming improve on the a quarters businesses, Omicron variance from Vancouver we impact our in the

partner. from industry, know them. been mitigate for we industry-wide have is we're want our not we has contracts. costs of from and operator many the exchange, uniquely marketing with under in peace capitalized growing to agreements shortages partners, In that and availability, business a multi-year immune on effectively is cost often place locked labor of inflation long-term why business, availability discussing rapidly our pilot our steady, aircraft forward, mind these ample spend predictable I and with a travel us well from service business Blade positioned while zero top Looking flow of providing pricing in operators and in time benefit some challenges, customer dealing the with and to mind

In we On price impact cost the front, in the structured our prices, by the our short transport time our particularly for majority that the less with rise fact to distance in short are and that organ the business. positioned costs well MediMobility Blade’s of our recent sensitive fuel business, prices. flight contracts regards means consumption aircraft neutralize fuel are routes generally fuel much on to which pass-throughs, of fuel economic of low fuel our are the

Bell New jet seat flight the on we the X.X example, a which For gallons XX of and York Airport on just three airports. burns Manhattan utilized between per A Blade

including average be increases add-ons. prices fuel seat would a Our $XXX check-out Therefore, material XXXs, impact. we have expect in cost do at to the not start

our monitor and will service. inflation offset continue branded to With thoughtful and environment back for few that, a strong to turn necessary maximize pricing to the decisions order in We it the to where closing of remarks. make value to over Rob cost I'll take

Robert Wiesenthal

profitable the by and Will. We acquisitions this are aircraft we from Thank electric quarter. manner vertical a mobility this largest and of in be and current short, on the the Air a are recent or using world's we the are we the EVA. business very generates are and businesses now our results to the long-term encouraged seeing proud company execution demonstrating attractive as for our ground that groundwork capital Helijet's value value in the business, scalable in of operating operating business. today you, the and we and strong urban to Medical up operating air built evidenced Blade’s In are quarter, aircraft increases intrinsic laser Trinity laying seamless transition of conventional deploying passenger focused returns metrics by

substantial of profile long the creation shareholders incremental more new, supercharge zones value term and EVA Over we unit the customers. convenient economics landing believe the for of our generating our will and enable return our

I next-generation we However, waiting for I arrive. cannot emphasize day enough the not aircraft these believe that are

buying urban frictions company We precious single every day. the in mobility air that are the world highest and cargo exist largest the route on people

capital not With advantage Our well Ravi that of continue we require profitability, that, to take may to our does scaling business capitalized, EVA not extremely themselves, capital are only to I potential the it present also or over environment. business, especially acquisitions given for turn opportunistic markets questions. additional to will reach current but

Ravi Jani

Rob. Thanks,

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

Operator

begin We question First session. go question-and-answer now the Helfstein, Please comes Instructions] will Oppenheimer. Jason ahead. [Operator from

Jason Helfstein

two. ask I'll guys. Thanks,

just on second for make of now? business that in then expansion right about like the happens sense talked like think East for just reaction us Paris about, that I the versus you more think and So you've be to first of Thanks. reason the in in give US you're Europe Coast? expansion to sooner summer what seeing office, maybe there your announcement initial of Europe on makes the update a changes commuter why should doing the we to on some And in mean, how had pricing you how an kind opening is

Robert Wiesenthal

Great, speaking. question. for your Rob Wiesenthal thanks It's

have the back of summer, flyers. seen increases the we recent elasticity, push terms no In from for price real our

profile you of an the optimize and keep to going on good. -- price of kind think I financial we'll summer. really far it's we'll try balance will and through products keeping certain other But so to see destinations, it. increases the obviously our of so be the type And aircraft kind eye

prices. We haven't raised

of could I commuter think some literally five it be routes. four this or years

[cars] terms time, high the that bad was and it in recovery and the happens, the product weather, of we given high service. have that our anything So (ph) in especially we flyers giving touch-value are

see pretty for international see office, there our So could make good we that With an to respect sense. I feel are do we acquisitions. We that it. routes do about of opening the opportunity certain analyzing

to place the before, in Blade. it route a spoken land good it doesn't -- great the We've talked Express. call Battersea airport, we've competitive for about Heathrow ground As London, let's Heathrow it you just sitting is mean for there London no are that's traffic or it's isn't because with is

that are high need model time, and can savings the see about on friction you time we in ground that that something how very and execute So be where terms think cost. to we're building, both an we prudent do is done quite we this environment, regulatory can working people some our we've the on are great and of our in been routes flyer, who replicate very economical provides of in aware value in relationships we And with strategy we we're knowledgeable that but terms when. be for that the operators the

Jason Helfstein

Thank you.

Operator

go Credit from ahead. next come of you. Stephen Please Suisse. And question Ju Thank will

Stephen Ju

you. Thank right. All

on So, is presumably per mix West guess, East of, price. and changing I down, year-over-year revenue the with seats Airport Rob, Coast. guess, Vancouver along the I I the flown guess sequentially a your Coast because of follow-up

about So the can you the your flying? I the ins guess corridors outs another are different and talk that question. And follow-up customers Europe on of

as might talk and States? about be? fragmented terms operating -- you it's the environment? United terms similarities, What Whether in in of of can the might the the differences, there So Thanks. the industry seasonality as there

Robert Wiesenthal

Ju. Hi,

you, all again. to specific that It have that are me first see Let very of operates. always or our some a world spoken of where that go do over friction to saying let with of routes dots of you research are We're to answer on question. used there very part never follow high all very friction routes. Again, the customer we've however, the great question us, Blade that global second back with is that kind analysts kind investors first and I'll going volume, often. the fragmented, really take Will reduction, trust kind of that our your and I'll Europe the

idea but are science is do we Europe. not routes doing seasonal, Some some The that to be in, by of we're looking the experiments, this not hours are you whether terrain we're proven areas at or looking them through seasonal, of to reduce them of between going that XX instead up friction people, it'd our known. flight ends taking mountainous driving of destinations where well hours six is resort want brand

time level. that next is opportunity to it think on the of kind it at looking I take and for We've was time there. just that the ground So us some that have the can we been people

to of over part with I'll on question it turn So pricing. for first Will that, the your

William Heyburn

Stephen. Hey,

it in guess there. nailed mix. your shift with a It's You really

you lot Helijet, a As didn't during XXXX this much didn't fly affordable have at products we available time, more know of in have last product also are the both those and we year that price. airport whole people a

you total in what almost so, at And last this it's nine number away, to if give did look quarter of flyers, we times that's the year.

as seeing. what distance business that's do particularly stress, so with other in the And all you're short really lot a the it fronts, to I growth we're passengers. seeing on nothing know, really which has more want you areas like business, less like But to medical,

why math. seeing that So you're that's

Robert Wiesenthal

an even and truly on scale really during price Because have goal $XXX by Uber New Again, last Uber hour. York and Lyft I $XX many, UberX a and product with or to we rush is pricing it's market, is airport airports. sometimes for think of One people. point beating to in shattered increases our -- a Black City pass, many affordable that be

competitive unique convenient even ride we're turning sharing oftentimes in a of more in we're and competitive very grounds on five time cars in we of more So depending geography do moment really or terms feel five drive turning of flight. enjoying for And a how minute delta say it great sure. be that But into now there. right hour that's I to introduce way long we're the product. minutes where -- can't will

Stephen Ju

you. Thank

Operator

you. Thank

Next from Hillary Cacanando question go ahead. of be Deutsche will Please Bank.

Hillary Cacanando

taking for thanks my Hi, question.

great. a little color still Was going was best in had day this said by world, regarding we're Its really color Hey, - the see of Q hybrid you just been are have on for Could kind people have pattern, to about but what driven more we look, provide flyers or little regarding a month. could of of more thrilled be getting So, driven The Hillary. work to who for Will. for just every Thank travel more again. week all William that'd more is, flyers that, business. information you you some the more surveys Yeah, road Heyburn our hearing flyer? is XX% you we're and provide by traveling you. I it you folks engaging of the back it best passengers the the pattern if do flying the

bit at know the leisure ways for is that, Blade to to So they have more we that, thing typically [Castle] here a of looks the love great a go and of still for And (ph) little at everybody and bit But product than Airport work back-to-work of might York it our when little in love the stats, about it people expect you back all that. kind New I City. business. we look

folks grow for it now folks business. like XX% there's are the as of traveling room And lot still of office. into we to back feels So get right a those think about

Robert Wiesenthal

be business I’ll the of the flexible with are on are last One more in. see also of terms policies, of be guys the come competitive, to -- of bigger to larger finally first flying, in we maybe in these road in companies the businesses mention starting smaller the is terms terms to these get we're the point tend to flyer, but businesses, composition

Hillary Cacanando

level? That's pre-COVID great. does that How XX% compared to

William Heyburn

back Manhattan, sense, It's we and at not probably we because than we're quite makes look less a where bit what would to we little pre-COVID. were occupancy offices pre-COVID, see which levels around when

a think So there's to more left encouraged. We that's why here. pretty come we're lot growth

Robert Wiesenthal

Yards are at some people just XXX in in signings terminals, of and XXX and some of lease near And looking being them that are of signings range. renewed looking Blade’s buildings, others, such the we fully hours kind terms areas of as in some foot or that Hudson lease of occupied

and So you kind of people it. least space to office don’t [indiscernible] that use

and very space near amount by that’s terminals. So work our we're encouraged we back going for very, to lease the renewals swiping of and see Blade office

Hillary Cacanando

it. That's helpful. more just really Got question MediMobility . on And one

like year new You added regarding the share of clients. other number XX could target clients targets that Do a like business? any that you have or you for any target

William Heyburn

over of out the I'll Trinity at just water what team is, blown the has Look, on say MediMobility. it

did recall, of put than we time you to this about about a last year Just it revenue. the million quarter. doing of -- if last touched Trinity $X more September $X million at were they When towards perspective, of of year million bought in $X them, end revenues

really supercharge So and you into there. to the been able shows it platform power we've that of the business plugging the how Blade growth

got a So step provide as and new change want it's add service. to function folks we're and that boarding on we of a we lot contracts great you

So we could I the effective quickly show and deliver people more know already pavement team price. they're the thought a how to more we can cost has organs do they that say going keep out we pounding for blown what would and

So there, much those with businesses. of a provide really to we're two benefit come to I but combining think of there's growth able encouraged really, a how we're lot

Hillary Cacanando

I totally agree. Thank you you. Thank Really so helpful. much.

Operator

Bill [Operator Instructions] JP from Peterson ahead. Morgan. go Next you. from comes Please question Thank

Bill Peterson

anybody's I Yeah. really I in Hi, results last expectations. and question. I here. follow want on this MediMobility Jet line Will guys, think morning Rob, to much higher on good mean, up the job quarterly came than nice and or the

within Blade to know trying you mean, I I won understand have charter. a guess I that? So what's

the understand hospitals, about so what mean bookings through visibility? of should you in is terms could? based of year based new the business, I think off up you that what this you the help size we think I Thanks. is have MediMobility that true and mentioned And on a how trends growth if seasonal us sign

Robert Wiesenthal

most and on We're that Yes, give the in that's part at a service majority April. do by Blade to Oregon to to seat ends businesses is, there, the Line. direction scheduled transport seasonal that’s little the the service separately, Happy going of is important to the break out Jet have remember MediMobility MediMobility And that we sure. One not but and that. of beginning

And so, about line that's XX% that contributor to overall.

in the see that off next offset that's be but do growth more of going our distance. by commuter you'll short So we quarter, in some fall the than think to businesses which into goes

and a So both then can price nicely, trips what's MediMobility it's remainder the kind business is growing of the for which also And of really Organ nice within lumpy in and been it counter bit a Transport in of terms us seasonal little has Jet. those jet also of trips. line it terms and be the seasonal can that But of in the be the demand very patterns. of volume charter,

grower sequential the predictable MediMobility is always grower. Is helpful. predictable nice a sequential not is way that it So

Bill Peterson

or was number XX% in sort of Blade for One? is Yeah. that that And annualized QX the an like

Robert Wiesenthal

No.

Thanks in Blade be de that in it One then and nothing then you And in will Giving. start historically QX, in that's typically. For nothing minimis QX QX QX QX, around

through. Blade little March It's bit go a that but not One quarter really you contribution, a where see QX, So of lot. that

Bill Peterson

helpful. super that's Okay,

to what So talked talked You that about other price operating minimal. it’s they prices also other you about increases -- I'm is, could But how test? about fuel environments. costs actually about and I what fairly related just to shortages guess should inflationary or what margins. pilot other the I'm flight at like is, And get things your to really impacts how we about trying think thinking

Robert Wiesenthal

Yes.

cost anywhere. a this of inflation bit you see like business So and there's little

a rotorcraft I some particularly of our they're kind I lock side the of periods. see most fuel, of you is, agreements in because an on the trailing bit through typically have to or two say pass year that's things the in business to passing we where on a of anyway. typically the the think on customers and we one, are able we're with flights through that's cases in it costs three our MediMobility operators we that's given commuter where impact, those might In the the nature little it actually where that basis, would more more of see area longer those area power. pricing What business, where for

So by much as have on you of a commuter lot as may XX%. prices increased those seen, we've routes

any And terms that land. than the when just different to of offsets demand it’s in so, can our about we it inflation margins we you cost think amongst more the balance designed think places and really

Bill Peterson

Yeah, included in in the about Should this business. sorry. that think how for okay, think upward there should And to great. fairly trajectory I that, margins? is we Is have potential or question, of time MediMobility as stable that over

Robert Wiesenthal

you Basically what get see really the over on-boarding it's to contracted we better an we with the opportunity our and a happens flying time, can think we to have from network of I operators do. percentage our particularly lift of There place. stable. when is quickly you small are of the a as know overall is, a thought lot new margin very numbers, customers is

going the spot into serve on onboard lag then there's of and to we're sometimes period a of favorable at that. we will on them contract for the and bit a MediMobility a much fill new more as a little sometimes So side customers market that time demand price we to

into those fill contracts get margin see expansion that we some you as longer-term will to typically. So demand

William Heyburn

that up requires consumers. signs terms we is, We're typically there retail business it, is costs of And passengers, a that Once hospital that, route. using flying the new increased ramp new there think same no helicopters hospital If Bill, you I'd started use that for for call for costs. about generally new marketing in add and route a our a utilization, marketing when which associated we ramping also up.

leverageable the your your costs hospitals as -- as overall serving of should a sales of percentage a So cost and MediMobility percentage a as more platform. increase mitigated becomes your lot platform sales be you

Bill Peterson

out if housekeeping OpEx, of expenses, cost M&A you Kind to related looks can your million. it's public add about I sneak pointed $X.X but in one I it it all, like then more. I somewhat other if And Great. and think

off the guess the So in should does then in think we come trajectory the And all I of assuming that OpEx about trajectory and terms from second there spend, quarter? you line? cost marketing how the of

Robert Wiesenthal

Bill. So

add some think that there is non-cash on added backs. of that I you've

some living fees, The entirely. come like that So regulatory stuff, decrease. of we probably away period for amortization going related the acquisitions, [indiscernible], we're M&A locations non-cash to then to and landing the believe particularly significantly some of advocacy the the expect time. be the of won't we a that considerably, intangibles, to of will go down for stuff some with And

Bill Peterson

And then going forward? Okay.

Robert Wiesenthal

Yeah.

Going not one-time forward, for expense that reoccur, of Island. it's associated advocacy airport some Long -- with we think on particularly the will a

Bill Peterson

understood. that to of I'm obviously acquisitions, and about -- several kind spending a over just normalized routes -- then just trying trends OpEx forward new think your on on we understand you Yeah, have next I'm carrying basis and how should quarters. the

Robert Wiesenthal

so it over a it's Definitely, we quarters high Okay. as well. set should revenues think decrease we to smaller and we time percentage going believe future over become the watermark, of

the So times. just one unique quarter here with all

Bill Peterson

Okay. Thanks.

Robert Wiesenthal

Bill. Thanks,

Operator

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

now may disconnect. You

Blade Air Mobility (BLDE) 10 May 222022 Q2 Earnings call transcript