- Earnings call transcript Q3 2022

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Operator

Good day, and thank you for standing by. Welcome to the Blade Air Mobility Inc. Fiscal Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator the now to like would conference to I hand over Mr. Ravi Jani, Relations. Vice President of Investor go ahead. Please

Ravi Jani

welcome us the quarter Thanks, standing September XX, Mobility Thank afternoon. appreciate ended call to everyone We and joining conference for and Air the webcast you and XXXX. Blade today. good by, for

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

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

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

Robert Wiesenthal

afternoon, I'd for your Blade September quarter to call you Ravi. our for interest XX, like everyone. to third the earnings you, you welcome XXXX. ended Thank Good and in thank

of Our record was ahead just financial flight million third performance our the the of increased to profit the period, for again first $XX.X Revenue quarter revenue quarter million year-to-date well September revenue both in in in million of year. XXXX for and once to and $XXX the XXX% X another $XX.X months contributing versus comparable expectations. quarter establishing the

our growth a and look to urban Europe U.S., September largest our the the the very operating and deploying the cements world's the our three for in our we existing formidable are cases in continues that mobility and the the on profitable, XX%. focused our leading and X, and organic well. XXXX, with us continent. Air expansion and brand, We technology company presence. presence is it across Adding these giving to market pro end, urban company and best that This of across European regions customer position to Canada this aircraft closed further solely demonstrates mobility Europe on in serve Importantly, comparable renowned Medical, accelerate three revenue Trinity forward have for assuming continents. Blade been geographies a forma period helicopter last Canada Blade our strategy figure our aggregating of fortify step to our important use would position as our a basis, our and new that the global approximately operations largest on and year, acquisitions acquisitions on growth closed our existing service in To technology India shareholders businesses

In the addition life-saving transplant division Blade end who light delivered revenue coming $XXX entirely continued with to Transport quarter expansion, business. minimal This is the in marketing of environment to most revenues. nearly another with important of take record we from call our new now provides like growing Blade's those a And trailing Air across to this on million and story, very want moment also uncorrelated recipients. to Organ diversify for with as are to what expenses I contracts multiyear logistics markets economic a BXB to and importantly, geographic half that XX-month Organ critical business have is large MediMobility. shed or is we Transportation market

their in opportunity as built way often entered market can not an the leverage given did have power forced technology our passenger our business, for and smaller logistics hospitals organ that on our right a next-generation needed robust the doubled of are transplant down is with the customer XXXX currently helicopter patients. the years have Trinity saw service over not and base the to to called as apparent strategy but expertise our largest entire Today, and highly grow of eventually seven well low-cost MediMobility great technology and teens to speed, Before with acquisition market. buying flexible, the did the organs dedicated last This for market, results. cases, United air business in advantage, are ambulance. as aircraft and pricing our combined organs or in a by most we with and we few aircraft transportation the operated is us some trusted vetted combined transplant to Blade logistics, and we time, reliable operators, a level entered match. network brand of others of team centers all States, our We by our aircraft reliability provider. plagued majority ability confidence because in logistics believe mission us. trips this providing only Blade XX/X high approved across logistical our cost a the added transporter and who recover becoming include many not mile cost our to customer from last September hospitals better gives the market our a share for mom-and-pop vast platform fit to component in forego transition risks, also This continue in we operators year today opportunities of as in human for to

organized drones. Given transition Aircraft call we the Electric these mission, or will mission of the particularly Vertical to mile either last be believe the the urgency very using accompanied first where those what to blade trips, flight on electric EVA or we

Canada neither and we as record waiting and further to the growth continue and continues Europe. from every sequential seat Airport the the boosted even at excellent pricing and XX However, in conventional more we our customers to total of are benefiting day. of pricing weekly number aircraft as and travelers which we we up York short with week, Blade organization in experiencing. set service that Manhattan connects quarter, well our last utilization, revenue higher towards make as which airports our ended out we was business successfully ahead. less quarter the performance volume grow procurement of clients, distance the the by not and and are month organ revenue hospital profitability, third industry XX our start a year, a from than acquisitions highest rolling progress using a is exceptional this we to we In flying encouraged October New between remain ever new to airport and record forward months now and was look by delivered passengers. for We in

significant prior year XX% efficiency At same from operations and All of this has excluding the corporate and XX% down profitability. our profit adjusted we're driving expense in of On our of this up revenue, clear the growth versus which items, period. of demonstrating basis, in nonrecurring operating strong our continue quarter path noncash expenses led leverage XX% to platform an decrease expenses. flight to versus declined XXX% to year corporate time, prior revenue, the a to percentage to as period. the Total was

In success, making on addition great strategic we're to progress initiatives. our financial other

fantastic this QR from scanning for all continue or rollout JetBlue. points by code in build the initial noticed flyers program, our JetBlue or will benefits flight JetBlue blade the with transfer ability We already for have of JetBlue coming marketing flown Blade partnership to blade by look displayed additional the seatback JetBlue. you important have frequent of our who TrueBlue joint City partnership a on York including screens X expansion soon. on using with continued Airport by flyer to your of New forward We Those to benefits provided your book

simulations Vertical Chicago in Air Eve with partnership conducting our expanded India. also Urban Mobility Mobility Aircraft Electric company have Air and Embraer's We both

greater to are new India, the and show a enabled commute funded commute between Urban for a world potential of month, around urban in Bangalore and helicopters developing aircraft, OEMs just reduce suburbs importance the launch into part urban demonstrates three-month significantly These simulation demonstrations, this Bangalore air preparing air an into In Eve certified flight. agreement Mobility have our joint Technologies. September, solely to turning our between co-branded the in the downtown Eve, to with by India. Experience a mobility. Aircraft As XXX the for in planning partners ecosystem excited Illinois. drive they entered Chicago In seamlessly Blade's minutes-long mobility in and We're closer EVE they hour-long they for flight to York demonstration times are to locations the Blade passenger continues to In meantime, Beta get venture to once the commercialization. city non-binding to Electric Vertical our our Chicago U.S., supporting partners City using up in Air as the for Airport flight partner, area continue center acquire the fliers New of

the about more location aligns mid-December, Beta's new look the currently this weeks. we flight test we the U.S. While the ongoing and in into slide could ensure timing as targeting sharing this of with test We Force. year date forward program with details test coming are to Air the flight

by Melissa appointed future Pete Advisory the they was FAA important of an with air the will perspective I'll over with Secretary Aviation the I the for happier as to well Lastly, not And provide be formulate that, Transportation to Melissa Tomkiel, and FAA mobility, and turn mobility our Advanced Committee. Buttigieg air call today both President, for in Will. future. are In could positioned summary, how policy. we practical

William Heyburn

and quarter. Rob. XXXX from this our were the QX, U.S. throughout which continued walk few $XX.X demand to through comparable U.S. is against September the distance million revenues higher XXXX highlights business I'll versus in the quarter you, Thank $XX.X million lines In short in distance, a XX% up the business. strong short was utilization for of in the pricing by seasonally driven our Growth seat period. largest backdrop

also blade XXXX, quick quarter of XXXX. on Airport in from XXXX, In this highlights the passenger growth from in New We in from sequential closed few contribution and seat revenue which passenger Europe, a short September December Blade business, which routes another so one-month airport and A the of QX, in per in X, our fourth distance Helijet's on benefited growth acquisition York closed saw X, far has which and June specific service, we launched we our continued products. growth Vancouver, quarter.

classes, coming rate adoption And which ultimate an as options Canada. charter to and achieved in improve for we recovery, Canada of roll-out significant through opportunity than noted, of is portfolio through had for and Blade as the low customer in of dynamic to Canada, distance our continues as great approximately technology acquisition. great enhanced both flyers. plan well quarter roll-out in breakeven a for revenue deploy are response, new slowly to fare month and cancellation the revenue we currently flexibility a the new We've well U.S. We ever October. impact months. utilization. on introduction opportunity recover see short Rob the the recently our this both as per Airport. growth, focus over Helicopter across us available more new with our products seat pricing, these We've the options our given in higher-priced As best our only given particular to a seen terms

currently charter Our demand demand to experience Canada, single-digit volume of of XXX% is In the a routes. chartered tells same by-the-seat volume. by-the-seat in that percentage us XX% represent other could on markets

in and significant are result, made wing charter this will fixed launching rotorcraft As investments globalization the customer-facing of our available we and enhancements this which in available the alike. will month. instant a technology in purchase options, months. significant Canada be be Europe app weeks new that Blade for will Both coming in benefit on We've and our with markets month app sale

a in versus increased by Transport. sequentially Growth the $X.X with been existing QX two-thirds driven MediMobility $XX.X clients, versus in growth September Trinity one-third new customer QX entire Turning owned growth comparable approximately the was Air in quarter XXX% Medical. clients, and million quarter, pro period. now existing robust new clients. XXXX. million center acquisition XXX% we organic Revenue Trinity our forma prior XX% acquisition had basis, On XXXX XXXX would Organ XXXX of growth increased have acquisition of by year to transplant revenue and to driven for assuming the roughly with driven with by Revenue the

available increase about are number Medical. transplant. mission around of of our Trinity This quarter for the Trinity time for the Last at themselves: acquisition anniversary marks Air the organs leadership our of we one-year senior that year spoke this set

With very Let’s a in opportunity shorter more recoveries, just near-term the in expectations trips organ to able small organizations better what outcomes high-teens centers grow going honored transplant market. we improving highly more By respect every patient are and we’re a team busy. growth currently share been market the flexibility, say to to forward, to and simple, which and to organ to offering of become plain continue has pricing, and currently that our estimate we role is procurement majority see our play fragmented attempt they the day.

as Of we triple-digit expect growth scale, our continue we to forever. course, increase don't

new and business clients continued forward and alike. to maintain existing look to new However, we with continue growth robust a pipeline

Turning Profit. $X.X year to million versus Flight current XXX% increased Flight in million quarter period. in $X.X the to Profit prior the

Distance Transport recent no but prior versus our and utilization total marketing this the have XXX routes, now XX% environment. quarter. we’re have our overall accelerating resulted an MediMobility period. meaningful of tends contracts, below in Flight given of to economic is XX% saw customer in to which estimate the basis Though uncertain represents by largest year demand the enormous year-over-year weeks XX.X% steady to to revenue period, further lower the macro in business, Flight Margin Organ quarter. in excess ability despite on see ramp revenues Our and Short continued would of our pleased for risk, multi-year take quarter Short just from customer pricing though versus Margin picture, higher in approximately base. In Transport this prior growth demand our inflation Blade Airport year were pricing Margin resilience we is with the Blade current been costs limited key versus Organ our this U.S. benefits up, business, and the increase quarter. in record U.S. demonstrating we in MediMobility of XXX decreased coupled believe Profit higher don’t that seasonally encouraged Distance that Absent we business comparison Flight to Airport, the we average, with XX.X% in the MediMobility company XXX% and year-over-year the is uncorrelated QX operate Flight points growth profitable breakeven

ahead we quarter, XX% to Distance of for higher approximately revenues, MediMobility the percentage in XX%, as Margin Flight what Looking is a an comprises to Short typically expect fourth seasonally of business. our quarter lower even

in to of fell non-recurring Development, quarter, prior quarter, for Corporate Corporate Let's year and of XX% period. period. prior revenue percentage Adjusted Expenses, When This turn as revenue to a the Selling from revenues in which XX% in down as and Expenses Administrative, operating Expense down General declined adjusting include comparable from XX% Expenses and to of this leverage our Marketing this revenue Software reduction expenses. percentage demonstrates Corporate Corporate now year of the our non-cash and the items, of XX% platform. a

further We for operating the to optimize in to drive future. leverage opportunities will cost our look continue expense structure to

increase With loss million balance businesses. period, but The raising prudent additional expenses, EBITDA As to platform prior is faster while largest and it future continue and current path of compared negative the in without opportunistic million cash loss Flight that, we uniquely is relative quarter mobility revenues Profit. in increased to of we to by grow the to our and enable need to the of turn of prior with profitability $XXX a short-term quarter attributable to our expected corporate additional loss potential continuing to versus XX.X% expense million on operating Flight zero full a Profit, million Blade’s Corporate remarks. back fourth what impact from the in remains year expenses excluding in the in expect in will expected and prior in Adjusted the over percentage to and to $XX be position growth growth, the over a Europe $X.X Rob the our onetime other focus now sheet, urban continue to to look partially With capital. Expenses In us the strategic $X.X to expectation respect closing, debt for as negative and for and X.X% capital year a improved quarter, primarily any in our to management This strong growth world. the offset initiatives for paving our was allocation acquisitions the to attributable period. prior increased I'll closing recent acquisitions, period we have year quarter than in few primarily securities. range, the the related air recurring

Robert Wiesenthal

encouraged Will. our are results this execution operational very we summary, quarter. In strong Thank and you, by

leading TSA demand levels; the indicators exceeding we large are passenger plenty to additional monitor customers XXXX for recently air recovering only landscape, regarding economic aggregate XX% travel amongst recovery. of as demand, we to leaving to corporate travel continue XX% that such pre-pandemic levels, throughput and by room of While the track we encouraged broader

fundamentally hybrid leisure demand Additionally, the of component for long flexibility well. having turn trip confidence growth, positive air to ability travel, every a era This us deliver and and business for make the Ravi our as economic that, outlook, to with make every share to now MediMobility, work has with With significant of in continued ability I'll gives the the a have we irrespective believe weekend weekend offers over increased in the post-COVID profitable our combined it in environment. gains questions. workers shifts

Ravi Jani

Thanks, Rob.

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

Operator

[Operator Instructions] of And Jason Oppenheimer. our Helfstein from first question will come

Your line is open.

Jason Helfstein

what's year thanks your kind going taking MediMobility guidance other. kind puts in But formal of to new to question. in gross have the kind of moved on the like of -- to into restate we impact obviously, Are what be other the economic of two. on a think for the control, then of of MediMobility-like Hi, you yet guys used the control? for I'll and the the business. we second in for should how of and and you you're out our giving not kind And segment next Will, takes Give ask what's own year, your and next historical question, the not sense kind line us sense the historically? margin drivers all make about

Robert Wiesenthal

Hi Jason, Rob speaking. it's

on margin it - over side. to I'll So more guidance, why out and Will the don't turn I on start about

going macro give your you up right to XXX% look I we And environment the precise all XXX%. you or But of where obviously at on. tell But signals margins, various take quarters for don't hope as you And very to are in unknowns a that given to and division that expectations businesses XXXX now. can prospects full Very have Will a with There's year track you investors. how internal what bullish our our am this guidance. is As imagine, about you that difficult largest I'll the growth positive. to the are know, respect point. let expectations we give lot business of our for our continue to mix, beat and I'm those to at

William Heyburn

the I is think, businesses. distance talked different just have XX% the Jason, how We've front. the of is on margins Where about up relative you to margin contribution contribution to business to XX% Yes, the can medical the the get XXs. short in about think range

on to slight margin blended really and old over question way going mix on, right, we're the quarter. way And last In jet. dollars. shift growing focused see then quarters the and what earnings medical, from and would we for you quarter, the showed And just new that in but as that's that's we the go release we eight So the to this press about, care you're is the to saw profit you what what address your old be historically. down, what X-K

what doesn't, So can But we hopefully, out. you that figure it gets you need. if

Robert Wiesenthal

last One thing, Jason.

know, about side of MediMobility, elastic business environment. our and resilient Europe As is here, resistant it's clear extremely that And half our the and short obviously is in Blade to terms between very macroeconomic passenger price. of is you business on of which our business, the aspects certain flyer

As we a increases not which price this resistance. you fair met exited year, were of with amount know,

Jason Helfstein

you. Thank

Operator

Thank Bank. you. our will next of question Deutsche And moment. from Cacanando come Hillary One

line Your open. is

Hillary Cacanando

thanks taking questions. Hi, my for

from month are seeing since customers question type doesn't highest customers affluent. trading customers your your look based getting route like from and your short quick if higher across on in from on October your pricing any Obviously, Airport. just your all, network. more distance the feedback a results -- getting their seeing Blade pushback obviously, just out that from for being the the -- It it your of But saying customers I out retailers what was there you're you're they're find just revenue we're are pricing. down. wondering wanted to at So

in the getting? feedback as to economy So just the wanted of doesn't much, that impact them kind but you're probably the weakness find

Robert Wiesenthal

of they being for a problem, a of price to resort think consumer. that areas and Americans over the about here no price the a U.S., question when respect Europe Hillary. very it in, strong you fair Europe And that dollar And the amount that put to a Not in elasticity increases Sure. Blade the lot. we also, helped Obviously, there's in are that frankly, was strength the going there on of What distance to I that, continues and traffic the well really business, to -- just convenience the are a point, is a will in versus -- our be short your high we do in have high of say really friction, not question flying. which we approachable. but we're it also audience taken, in of very an a is that very eye, have we terms is

Our prices start classes of Air our at But allow is through instituted three $XXX of $XX you for airport forecast. we've technology or types done that we've the what fare flexibility.

about right we flight now, buy consumer can have $XXX. but still cost you airport So the actually for $XXX a to an average seat of

this can of in end part the market spend of terms and we market So higher they of lower the amount both well. are kind getting also the the of money way, the of as

goal is everyone. open can airport our be So to that for

the classes. lower-end through fare products of been the really advent done power in pricing of our has the So technology multiple

helps So a hopefully, that bit.

Hillary Cacanando

that Got it. block saw you judge to thought Thank it. Got Airport, close And I regarding the that Hampton the move airport. I then very East a much.

going is know like still on? location. to to going then now Or is So an everyone is of for that story and the customers just end fair move open, only just it's environmental the the the try there I could town but and the revenue, X% of conduct study again this a amount of

Robert Wiesenthal

Sure.

Hampton has years on East for been XX now. the going Saga So

the talk aware, part without despite well a judge our very East Hampton business. we to a other because Airport clearly well. that is or order things of and as not successfully ruled close not probably then from the make work straining hearings that type love in favor say about, any it requesting something eventually had judge and being small temporary the we of at I'll the got could our or lot time What it of restrictions is you're environmental meetings, As any a [indiscernible] they done

of to to fly changes people what did that think the neighborhoods we up year the what conversation near is in does live the that both other flights also people we you report of to fly. that in prove to that they in put for only the They're think Sag or our fly the just who but But flying, other Hampton are Montauk, of interest open reduced the of in expand intend live who past East itself. the are going I we we we those and if the substantially Harbor that not areas. types opportunities to all number airport the had did is really do stakeholders, in fact areas this -- do going best people this people restrictions, still but to

away. places town I East I Harbor for Hampton. that, actually the other land, on there's not ten And of is in because pudding. to proof the So reliant is in We're you And minutes some the think Montauk the airport. think know, instance, Sag is about

good be that -- but I'm material I with It's up our think over, everyone. about think hoping which come channel never will overtures open the I last did land be multiple wasn't in great we So not. have We short and said that it the East and for that to year. feel will to compromises, on certainly we again a it to business-business said Long going impact our and like Island place us

Hillary Cacanando

Got so Thank it. you much. Great.

Operator

[Operator Ju of question next Credit Suisse. will come from Instructions] Our Stephen

is Your line open.

Stephen Ju

Rob. Hi, guys. Thanks,

about I two guess, with So your spent you've new months about, footprint. now European

optimize? I these guess things what looking What are can where I you you different that that longer at are in-house? And a for some now of more What's better? learn guess needs work, along speeds. with So bit operations areas term, those the move governments

Will, up more the is at any seasonality sort EU show is home base, here gain of about the throughout but potential think the probably the opportunity Europe you of do terms in course that I constant it's where a our the Thanks. more So Southern given think thinking of EDAs year to as leisure have the cases? Europe? in we there versus different of business can States? talk on of United And use

Robert Wiesenthal

pleased can't I the with be Sure. more acquisition.

deals is work same three companies to one, at of And we've Hélicoptère, about done we I'm that bring Now that the the three acquired, was we and I to technology what Azur level pleased have that think in these three the Monacair. retail businesses this really here.

have communicate operating and would data they able to up that of with behind about knowing they things -- We they being I are nature. here come were individual And being our them, where probably before were a dynamic pricing they really tremendous able and lot were with Blade, a flyers behind to at feedups. say exhaust as

companies. pricing three across we these So harmonize now can

in a the lot of round little Italy also of technology of It We is granted. a not to that's Monaco, Nice, app marketing and a those were haven the markets in is lot the of and business. terms brand it Marketing, been is Monaco Courchevel seasonal on a The Tropez, taken use global a from really it packages on definitely for this see bit clear over now dollar is think that. leisure Blade just places side. other and wasn't resonates year that fact because getting Cannes, of our has terms lot Saint Americans in a opportunity here platform a that have was tax strong pricing. well We a us both I in done deployed. was business. there incredibly helped very There that really there helped. and that a frankly, And tends traveler Blade

in And about terrain resilient to just terms fly. it's think you the who it. a of And this there about wants customer of an amount good really traffic. clearly high feel when and again, very we So end geographies

the we expectations lot add? acquisition. Just had internal numbers are we're consistent to with of the the right like here, a that we're reducing made again, want before you now we Will, very And friction. seeing

William Heyburn

the similarities And short it's it seasonality, hit to that Stephen, the is seasonal. business are Yes. it just U.S. but less some has and to weighted, some

XX% bit QX Historically, about XX% a far. then in is a weakest QX of get the about But little the nice revenues. QX come you the business So -- QX. through destinations. about do historically it's to traveling to revenues ski by winter of weighted and been

of And on the close course, being at we're hard of So revenues to increase fronts Europe. XX% here. work that ends to in the all up demand

Operator

would And closing I'm call no to I to Rob like now the further for Wiesenthal showing back questions. you. Thank turn remarks.

Robert Wiesenthal

are quarter. we of just thank are right inflation, team to great status obviously a It got the U.S., here fears, recession that the under our are remains for happy Ukraine we I many pleased the we in you. in environment this is demonstrating where between the And but election we trajectory. very the in that to another an acquisitions growth now important, sheet want complicated we terms very, Thank war balance reiterate signals strong. far also, very these strong And really again, of clean have I'll quarter that and versus extremely have a peers. thus belt as we're our

the that's cash. of tangible year building over strong and allow the being posted, but $XXX a have path quarter. million the given forward on company, out note profitability, will an speaking with and hopefully And call, asset We next cash completely this and will you light that to closing results fund to a opportunistic capital We're needs growth on. to with lot which -- not blocks see only a be acquisitions. really our of we focused you with show looking that again we're that organically, our can And

speaking you, for Operator. forward and you much your very thanks we time soon. So look to with Thank

Operator

this gentlemen, Ladies concludes conference. today's and

disconnect. may You now

Blade Air Mobility (BLDE) 9 Nov 222022 Q3 Earnings call transcript