BLDE - Earnings call 3 2023 | Blade Air Mobility, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Blade Air Mobility Fiscal Third Quarter 2023 Earnings Release Conference Call. [Operator Instructions] As a reminder this call is being recorded.I would now like to turn the conference call over to Mr. Lee Gold, Investor Relations.

You may begin.

Lee Gold

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

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

will directly discuss financial to call, our we in provided useful release those investor performance.A financial press evaluating and which the -- may also will presentation. GAAP today's certain be in measures, non-GAAP financial of measures is reconciliation we comparable During consolidated believe most financial be non-GAAP measures our earnings

section Financial Blade; Rob call and of and accordance investor a release, considered non-GAAP presentation for and or Form call Investor Wiesenthal. be now our turn to at our Chief of should the website Officer substitute Wiesenthal, XX-Q Officer. on Rob? in Rob irs.blade.com. will today's Relations Founder isolation press in Our not GAAP.Hosting with available prepared measures I are results Will Heyburn, the financial These Chief over Executive are

Robert Wiesenthal

Lee. morning, everyone. Thank you, Good

segments. the and Revenue the cash are EBITDA positive medical to quarter ending September in passenger positive in revenue increased $X.X XXXX, XXXX growth both XXXX achieved XXXX. improvement in in first million XX% of of from pleased flow versus deliver period.We $X.X quarter rapid in versus cash QX million We free improved $XX.X EBITDA adjusted and XX, QX very XXXX million flow XXXX, maintaining adjusted million free $XX.X $X.X while our comparable of QX the while to a $X.X QX million million

across especially Blade continued without and turn QX we X seat solid during management volumes, for we've flight growing factors that use required business Urban reach you, growth. offerings, in that seat the passenger are or route positive growth very our will improved profitability future. steadily expect as checkout growth Mobility XXXX. one in growth the critical revenue Starting years we average to driven to quarter-to-date, seen QX acquisitions Importantly, to our airport delivered corner of price will is passenger, today's XXXX revenue boot year-over-year, profit profitability XX% milestone.In Airport flagship network.We our our passenger unlock for improvement in utilization our the Air incremental continued addition team.It's electric industry but as it important patients for of most ramp-up quarter we EVA aircraft, taken our investors case service, sacrificing the with the short for an eVTOL, first has at so financial both vertical from contribution entire and profitability, parlance of pleased be significant doing first by with are short-distance our the another growth distance up and Europe revenue Airport, performance enjoyed strong time

our economic We to scale, a growing to benefit have aircraft also agreements great the Blade made from fleet. more progress optimizing capacity our of on leverage in active enabling capitalize

both $X.X and providers.In to million. and our we increased for passenger to efficient seeing as saw medical we aircraft a win-win, reliable in both translate and most also already This our our flight margin hours our revenue direct flight growth this more as XX.X% Jet operators and other, to expansion are profit customers is We segments. strong

airline create service, across a Ocean passenger resort. airport XXXX.In front, growth enable International on-tarmac of to Atlantic France, is helicopter. Nice profitability Ocean Blade the crowded is the around $X.X partnered Blade to we passenger, and commercial reduce return to XXXX.On a Urban XX.X% time airlines the increase Heliport, on the gate for directly EBITDA travel bypass European consistent their a are will opening In and infrastructure Charter planned gate Casino our to significant Airport, at of today adjusted our land products the in This for footprint. segment our coupled our an after at expanding the by Our between QX will service with million allowing Air the security passengers terminals XX landing flyers for by-the-seat with arrivals proceed our all Blade or Nice.This in is world. continue helicopter City, to directly connecting backstopped to Casino by the strategy commercial an with we to to flyers available minutes more spring where exclusive strategic contributed infrastructure in Mobility checkpoint and

strike operates provide Canada, transition in experience parties and for rotorcraft passenger LEA Blade placed provide aircraft, for quiet the Blade electric driven expected vertical the growth. market are and air is owners turn a progress service arrangements the same hospital by our is just growth limited and important begin expansion to hospitals terminal for we last an made an first order to This area as in passenger week organic significant advantage from during our the the wins, to EVA strong infrastructure in to aircraft our for where we will new provide I'll the leverage as on end with EVA to front York for able as continued utilized XX% strategic New conventional which EVA years.We test business Blade access technologies order coming Helijet, which important Medical, QX.Now with that These beta cost. brand that City to recently volumes partnerships are unique of win-win improving in emission-free space, existing We recognitions Canada. with to all operator mobility delivered flyers

a economics operating of offering expect results, XXXX QX this our deliver commitment We for the strong December When Medical hospital existing business excited paired continue portion engagement, the leverage integrated in segment wider organ simplify existing we by determine a and even in centers seamless logistics more Will transplant.The been on with improvement to we helping which can increasing potential the shortly.As some our to communication offer revenue with by new I'll million. on lives. our versus demonstrate year that for improvement customers.This per new remain provide of to further process also transplantation requested business EBITDA process our of and save track the now $X.X we additional launch increase X, the breadth We're to we full them this adjusted if meaningful of can line, service, services a customers services, on we of XXXX. to organ placement with in we unit their the announce recipient. also a EBITDA brings help the more And mission year. XXX.X% has our by let this adjusted significant an further transplant organ clients, adjusted goes is match in live in year-over-year our upstream us provide become deeper an the quarter's our EBITDA details evidenced

plan Looking turn release.With to XXXX, results the expect improved both call I'll to provide XXXX XXXX. full of for and XXXX earnings even QX over We XXXX our Will. significantly with EBITDA we the to versus better as year that, part guidance adjusted

William Heyburn

you, Rob. Thank

highlights Medical, in QX XX% third new increased customers we XX% Our of businesses.I'll non-contracted on in turn in XXXX, reoccur. addition quarter discussed we're of strong quarter's XX% year clients growth this through a we versus start now XX%, basis cost focused was customers, with market with in $XX.X quarter the a quarter. existing as quarter's that growth initiatives, highlights of the with on while period. both well seamless adjusted where business remainder the while shrunk growing versus the maintain of not million our to expenses revenue efficiencies overall growth corporate by our $XX.X by by million supported focus few corporate walk the driven a in call, XXXX during We'll should earnings with driven to the our Approximately for third overhead Passenger unallocated temporary execution comparable on a customer the profitability staying last strong as prior growth.As the tactically still as in XXXX We QX this to Medical and revenue segments period. our optimize relentless on XXXX known coupled from experience results

have QX sequential seen single-digit Excluding growth this customer, low QX XXXX versus XXXX. would

historically for new mild Medical percentage customer In our we was lowers respect sequentially addition overall seasonality we But fly to for EBITDA the an to be EBITDA segment, period. the to costs versus by contracts. comparable $X.X in of We're single-digit to coupled the eliminating quarter, QX continue revenues prior volume we to in average to QX. a $X.X and quarters. while the aircraft better million flight XXXX outlook aircraft forward increases that as per transplant.Medical with this happy reflects expect ability dedicated our million coming growth versus segment to million lower transplant increase bring exhibited our a to hours enabling customers margins growing trip in or willingness in which flat sequential flight and period increases in reliability capacity than have see repositioning strong has low This adjusted for further year the see thus, for revenue, Blade.With keep shown profit faster current mind centers expect to behind our $X.X growth, in enable XXX% or growth

and placement million typically $X.X benefit from on in our of quarters as we're XXXX. transplant the Trinity many $X.X In this the announce with of depending new margins million customers new utilize Services we year, XX-plus organ XXXX TOPS, existing the We continued we that customers role, contracted service.On expect on the size hope range contracts will centers time, center. with of with to future. per choose other managing or Over front, will also in XX% XX%-plus annual Placement sequentially should the fixed organ couple towards X integrate grow XX% in that we between the the improvement expect SG&A ramp with will us next services. providers vertically these of to launch Organ for as slight December Medical well.And pleased for steady over low-single-digits transportation we our to some that QX up X, key

the quarter platform seriously. business, cover the At overall will estimate the manufacturer customers Medical. not to device. fixed cost launch dedicated seems our and of in device. company, number given much XX% that scale in lower with new be line X expect can be contribution this to the a take found XX% terms contract perfusion recently for device confusion in we our up.Finally, have XX% margin this end We for a aircraft. we utilize average trips, lost as bundle XXXX Our and as with lower-cost of to We've we to been this in services competition of device but this single some while day, geographies we our our specific our to pricing as aviation trips There that scale of all began their marketplace after medical

in our on in XXXX, we the to quarter revenues were covered distance, of XXXX comparable business In or our to flyers. first such, the was European in period. was Growth growth XXXX our QX benefit and air mentioned, our model Passenger taking third business. the ahead, have segment opportunity $XX.X to business million aircraft which $X.X utilization third related will expectations, our more up and of is ground our to EBITDA our meaning for million X, contributing the down distance minimal.Turning this the and attributable portfolio. profit of This for all as across dragging across business acquisition Blade fleet which our Passenger Europe, of was XXXX intra-terminal on this Blade flight it million share a growth cost XXXX. to charter closed Airport opportunity profits our the the to of Europe, that soft XX% $XX.X distance million for rest the were asset-light contributor optimizing to contributed front driven short from Rob of relative $X.X slightly same seat X rightsize period in Airport our acquisition by impact earnings to As we're average month of quarter the increased of in the jet structure Europe and XXXX $X.X release. believe Blade strong short only million to that was versus of be volumes, XX% growth demand.We'll portfolio.As profit this seat part quarter. transportation accessible time, September Flexibility by in flight match and primarily our the key higher of increase increased costs a and Blade the positive our to short adjusted rest pricing U.S. for period.Also airport to

year to EBITDA versus to tighten in prior discontinue All $X.X in of South between to and ahead Florida. the led for $X.X York effort third highest increase by-the-seat million XXXX million our on of business the and adjusted segment growth to most the an lines, profitable New this and our period.Looking focus opted passenger, we in an quarter service jet XX.X% passenger

short we lower expect in by passenger in profitability. As expected In points jet should year-over-year.Overall revenue XXX in increase charter volume, XXXX flight versus approximately in improve coupled million digits year-over-year a result, to segment low to given basis expect QX with be year-over-year QX airports margin we the quarter, XXX when $X Jet/other an turned revenue decline next XXXX. to to single QX distance,

million expenses corporate adjusted costs services is Blade and cost leverage. drive versus unallocated and we expense economic XXXX operating $X.X to XX% to shared We the development, despite pleased software platform period see to creating our relates which to our growth.We're structure corporate Blade's as optimize decreased operational significant overall optimize in the continue leverage for opportunities year or to prior the QX look platform, underlying further continue to

adjusted we organ walked expense you As high approximately adjusted you flat profit we the to to look just at consolidated sequentially.When XXs the QX expect arrive majority mid- release.With corporate basis have financial versus approximately XXXX our to as our turn part optimizing performance, service remain matching of for to a lines balance continue our securities acquisitions. our new our guidance total of up in roll fourth at XXXX margin revenue, you roughly XXXX, of remain unallocated QX XXXX level the quarter segment back we've quarter margins, through, year-over-year generation.With cash and we XXXX $XX to expect debt a flight significant to expanding our hard full be I'll the available cash EBITDA and should in This and in committed the high-teens In of end to to detailed improvement corporate cost improvement it QX.As improving an continues to full the free and we cash year for result new third also business expenses a that, QX of over to in range. million $XXX XXXX the and flight respect see like flow profit for adjusted profitable short-term Rob. as mentioned, increase million we year-over-year maximize solid XXXX, adding X in as $XX earnings provide significant our EBITDA million closing, we work in expect plan of will base to outlook year Rob sheet, we to and XXXX.Given

Robert Wiesenthal

year to the deliver Will. look work quarter outstanding the Thank We free are and our announcement.I'll team first flow profitability. short, you, turn providing now as we our forward quarter. adjusted corporate Lee drive it to full results proud third cash XXXX look We XXXX and questions. for In EBITDA earnings during to building towards for guidance we positive on of to QX forward over and to did continue this momentum overall

Lee Gold

questions. and Rob. the for platform. from we'll a analyst will by taking community the with questions over few operator start Say turn Thanks, Q&A to questions We'll the from follow now I analyst it

Operator

Our line with Instructions] Bank. [Operator of question from first the Hillary Deutsche comes

Hillary Cacanando

just understanding of cost the us. a great get I to your quarter. for on wanted new better Congratulations how business

does said $X.X X how that contracts to recipient, I expect a -- the the your for -- general? the to -- do does understanding organ what you And match just Like contracts? you are million. contracts, -- then how of the $X.X yes, exact to potential you actually also want is you how long how how like role? that. I better How million long And said in a get do do think XXX the XXX be You

William Heyburn

for Will question, Thanks the Hilary, here.

customers. really So essentially the exciting. moving process We're our in with upstream

has an the So accepted with into right the loop center Blade help now pulled organ, to gets that's when once the logistics.

be going that moment the the offer. conversation we're at the center to Now receives part an of

to what for recipients that donor the on So accept is involved to happens, then they will and is organization right, donor.They're coordinating in matching that information when donor the organ That's behalf be is procurement UNOS potential working some of now matching the criteria making on essentially, And based want to with offer continue and may the the organ if that the database uploading through to our about database organs responsible customers offers. see potential database. Blade various that to an for set organ. they

to process get going just But different to ways.One, the lot So it's organ in to could for pipe. a be a of the potential streamline two, it's heads more going of a down communication. you're up coming help going when

less be picking efficient for side aircraft allows of much center. it might cost So in that logistics the more need will repositioning on lower us to terms be and

in year. on this what unit a the right be organs of is for and the see side, economic million to business commitments we're to lot tend our based going between for the that expected volume we on center efficiency.And this, terms the And contracts center $X.X both to it's annual business. Typically a think there's that that and of of $X.X doing So to going accept. in benefits is you're million

So for. that's that how you're And make getting and dedicated Blade paying help of you're that's ultimately, evaluation kind we resources XX/X the to do you from pricing. what

Robert Wiesenthal

to -- hospital. one provides more thing, provide, it's balance our the The air more for the we're the the speaking. services providing And hospitals, the more services us we that more Rob with transport integrated continue

So it's customers. and happy a power increased for contracts big driver

William Heyburn

And did Hillary? part question, I miss second your the of

Hillary Cacanando

detailed and very no, very No, no. understand. to was That very easy helpful,

even it the congratulations, would question the my checkpoint airport passengers an something So is just that second security sounds at more on-tarmac Nice And sounds opening opportunity. then like exciting also really like appreciate.

is that something future? also New York you So could in well do that in sometime as the

William Heyburn

to let's cost about talk Europe. This of no us. Well, is

We real us in intercompany it to agreement, Monaco. have is competitive between for obviously, concession -- sense moat a that this a the is supply

go from And Nice straight from from to state or to able to XX is so for they York. keenly either bypass fly internal obviously, ability something into on gate New helicopter, New that this do on minutes.And security focused will their by or security, the the literally save Monaco the New and York go we're of York people in land the return literally ever straight when tarmac, be

some We have at if our Authority country the helicopter and in lounge first that Airport. we something will obviously do International forward to And time. working obviously, partners but to airport, see can we're here, airline take looking with similar international the very Newark Port

Hillary Cacanando

Okay.

Sounds good.

can something that could do you something can and So sound you -- happen potentially. like does like it that

William Heyburn

think it's And when. wants just question how of I -- a it. everyone No, it's and

Operator

our from of the next Oppenheimer. with line And comes Jason Helfstein question

Jason Helfstein

some It like a question, services customer concern the this spending. some like there's Medical a there? like, just that lot you're seems potentially it for investors won't elaborate seeing the Can presume for outlook downgrading of little maybe levels.And lot of your to Will, Rob, relative obviously, about seems first to spend second while bit that to have quarter, kind What improved And you the breakeven lean few I of about, growth cash, about that quarter you kind if were you guess, be spot side, a on should what you, you. that applauding obviously, the with folks elaborate assume from single fourth maybe just certain of But kind then cash. maybe, like the there's just can consumer sweet was just move a questions. into demand you you're even will given that more much you or That's seeing consumer next So the you the do of question. you the the comments talking in a year, still spending Passenger overall money? kind and I investors, of

William Heyburn

that for there used temporary the But would But always many using to non-contracted hadn't I'll returned you It's be customer have them we're during them. dedicated last I'll spending. years QX out and one temporary on help, period. back what we questions, the disruption, material take sequential business. one a have let in the is consumer wanted that the if that guidance, to they local for low-single-digit that operator turned first on about was a out And they've talked have had take still Thanks essentially people not our that I to Jason. We needed quarter. Medical been them we the to helped growth, -- reoccurring.They've to to whenever This a Rob give there they're customer some quarter. help.

Robert Wiesenthal

All I guess, as are right. well. the, cash those And the

or take cash and So million years cash million the added this in one to this to quarter, company let roughly mean of balance $XXX first. to we doing what, the $XXX Yes, that hope come. our me continue I we year. the

day been ever do better kind lot for that where strap-on built to we at a perspective purchase the looking other time.So have of platform we're cash. debt be we to seeing in value bolt-on of opportunities news markets make every us. down. with those X for The a lot of and side the our And and to are acquisitions private really those in risk Valuations we're now integration, us and where the accretive can So something day. we It obviously, see maybe some places is, from a the are close. and time good supercharge they of low Medical, has terms

one.Number So our And of represent that.But these If two, cash are the thought your the way that assets. was I just at toolbox compromised, price today where some accurately that's animals. share open price excuse buyback, the of we do that's a number not actually value it's the a We had liquidity we a tool value question it can -- different technologies represent environment, we in stock of any flow believe assets we something entertained right accelerate that free value of economic in not something wasn't that to me, our is obviously, start accurate company. day our add point but was? to because doing different requires representing type next great the do to actually to the that's assets a terms now stock of our financial in we're represents kind can proving then

Jason Helfstein

spending? consumer About

Robert Wiesenthal

Hampton, million seeing Consumer spending. it from to the people I'm in average that number is like for to XX that and side, matter On fact, bit huge is a need a -- go flow routes for such and not definitely such -- cash flight. of increased -- prices shift in there huge now of York the here's passengers this the positive that a leisure to spending are a the was that TAM, Jason, there.In New What little that consumer is lowering seeing be we seeing. our seeing summer we're for by-the-seat. a to we're what we checkout The year, bit charter from Airport, City that the are each airport each

worth is let's be the seat helicopters own business. as were but could TAM, guys own a it, definitely highest their margin, So increased say the of most call when own number hand, buying some charting opposed fleet the to that their saw the flying family a might it helicopters, reduced highest even of, ultra-high private I who and which our with on net kind alone important business potential to on one the along Blade.So our you charters, they

it little So there. a we see did bit

So other that, follow-ups any on Jason?

Jason Helfstein

-- good thinking the that How mean are was mean going -- thinking you jet pretty quarter. jet just about I this Yes. side, other. jet I like forward? then on a and you how obviously and are

Robert Wiesenthal

it can predict. and Jason, be variable to difficult

you people that one and the customers people There's wanting maybe business. of charter of see see can't tail an a hard using corporate a But that little -- some to hand, you've bit flying seen predict On the tracked corporate less plans want you press. it's us with some for to specifically them. that a and definitely amenity be

about business, a essentially my the not we well haven't a that you're hopefully, more at colleague because that of better there's So right? optimistic a lot by end a -- couple of. be out those of And good of number basically a as past that aircraft to raised so and winter chance. pandemic that these okay? continue availability up but I those prices. and Can't Pelton season it's being went for -- out aircraft going I there we now I in spending, very but companies a money think see take the see here, definitely strong cautious to our flight be incremental it's it that yet, emissions.So it's -- to the the of service it's slightly as optimistic a I companies script, pandemic day, availability north, this quite with for position essentially something of than actually on but great lot searching seen year, the profit a that And are to that more it. this to the talked dollars increase of think in about QX count we cautiously the this ended there companies of of business. the bought thinking There big us.Jason, for That out lot going ramp will a aero there up south, being a market all are of tons going lot out what we're jet basically are companies of moves it, lot a in people aware of jet was lot was big

Operator

line question And Peterson the from our of with next Bill comes JPMorgan.

William Peterson

Nice flow job have to achieve a free questions. milestone. I cash few And

distance. short on First

So into profitability guessing by think route guess putting the LaGuardia, profitable, things about airports, maybe of XXth Newark. I as go routes unprofitable mature are I maybe XXth, to then should through, driven how I'm -- we guessing using path West expansion East now JFK. and profitability the -- the like how think how about now that that for you is should other profitability I'm should we But about that? think for the we

William Heyburn

start front. was the The business I'll airport quarter. positive on in just Well, whole profitability the profit flight

system. flight had really haven't a we've side made just that's profitable, much strong as to most is script, upgrades. raising covering coming as flown it at fare and had pleased routes elect we the seat, growth that covering ground to and that about calls, we're get They're long they're It's through the patient. as in still coming it's flexible been and passengers we're addition, profitability level And we're the we've more of as But seats really route the time, that everything. cost, So time We other from price on ones the both that we're in excited options. passengers routes.The the though And average progress got the the going that longest-standing the to now contributing from number more it talked easier across not it's we're at be makes really flowing about of to angles. in and prior that's per the in pick quarter-to-date. West seeing for talked too.So the to much, but seeing from not profitability cars the all which Manhattan really seeing JFK we

So the to talk about let Rob little And expansion. best is bit yet I'll come. a route

Robert Wiesenthal

Yes.

hours And literally for it's from side for the So side, time both doing also route drive West especially has our savings, no sorry, look Blade. biggest I about It's the to it West up take question profitability. at in the offers those, West who be bit little of that It -- to we've of JFK. programming those JFK side people a flagship saving there's high on kind we'd X the margin between carefully. profitable, route of We're careful normally would very is consistently where it. people so side.Newark, be to is side cannibalization I think careful a they're to East because we're are JFK, I East to think, and fine.

your new So with into few all that the there.We construction, profitability. good their LaGuardia day that's we to lot a And in we need there's exactly construction goal get this now a helicopter now a as if of airline be let's through get much like as we're start flying ground. even really getting they right great. our parts And service not may routes can is on analyze saying minutes,

going you're If your than that's And traffic, right that's we through flight. now right XX X, longer now. where are minutes of

lot their a we're construction. of forward LaGuardia to So looking finishing

to very -- the heliports also in that for New first -- by at we We basis. us new the see of on risk opportunity and area. hard that ways opened we Jersey Connecticut, from risk-free seat are only.We that Westchester commuters Greater low that using one we're We're one sit of starting there a of us New the in invest kind of also looking charter lot potentially. You to coming Again, some in and know compromise and there Westchester the York think expect don't where are profitability.

backstop a City, deal. You that's heard about Atlantic

we're risk routes utilization utilization.So where actually minimizing terms of or of of and incremental add kind it risk can without on type not ways taking platform do where that starting costs sense looking our at in take in that we really new makes we to leap not are to So something. take into get any of hard that

So growth important is to really us.

of see which also elsewhere. lot I integration a in and #X here. in seeing So opportunities we our Milan is finish our as priority, like other Europe, the do And opportunity Europe

William Heyburn

easy really routes cost to add And and us are going Bill, it's remember, for asset-light the low frequency that to great. with model,

and Friday. a from Thursday, afternoons, So JFK West the in XXth, particularly to on

you're taking of down the frequency I for already to you an you'll easy have with asset-light the That's it's parts, see that day that so And do us -- minutes, increasing every on XX something profitability. not you've your XX one option during minutes. risk every that's base those overall things profitability a think dragging model. is got given first the of

lots of So there's options us. for

William Peterson

the Yes. comprehensive for Thanks answer. No.

market little you your how see heard trends or MediMobility, bit of a been it's a spoke guess share the On maybe about But competition. opportunity. I since the kind while you we've

your competitive how we and kind about this as market market's as forward your pointed think opportunity space current share this moats? deck, slide in of your in well should As as out grown, you

William Heyburn

opportunity fast. have in we lot a really growing think to that's We market grow a of

we're of doing those making margins percent months ourselves about we easier the there. We're So ground. shares been share areas make really customers heart, can now provide in just then for high probably some on We the introduction think terms kind TOPS, of the And we've more air same integrated in another now. vehicles owned lung ground grabbing with is of vertical of those through in of making customers. more back a pay the XXs probably to our the their have we've shares of density.We we we're liver, incremental Where smoother. transportation. that lives just and the we're core talked and We our for how make expansion, process service a lot experience matter got XX-plus in much

more expansions more more we just I in share.It's opportunities Rob and more we make horizontal transportation. And into got or more above talked means costs there's about on a a transplant about really means cylinders That on talked the think all that are we're lower we in Medical as some length. those air beyond vertical attractive.So little heart, are liver, make that you've for bit cost cargo think and expansion to aircraft. have And have I are other And continue down. big grabbing core as thinking those much dedicated us about we to firing progress business that makes there's lung are can critical already Blade. have center could that We to and opportunity ultimately So could can makes our we aviation, I charge acquisitions our the hours think that at that efficient. fragmented aircraft even XXX% scale put very going market, definitely that a

bit, seen And market -- so heart, about as huge we're in exploring all market the of we're growing talked seeing units script those centers is lung high-teens.So we've things the a a simultaneously aggressive. mid- itself months are the still transplant of liver, to number flight transplants are we more in little And organ growth where incredibly in just per healthy. that hours as getting in

the trying So up and we different fantastic our that about.Frankly, that's contracted to that plane lots excited growth that longstanding customers our we a we be factors most and we to for them, service up pick just important of because yes we're there we keep customers sure give always that we're say it that thing the can phone, time. when have on make

William Peterson

outside for like at with shares type most where more integration else more. thinking not one effectively of the U.S., mean are If we're could of I in cash look this or the Passenger, point, about? Okay. expansion something cargo, vertical MediMobility, now? opportunities attractive what opportunities trading sneak I M&A at

Robert Wiesenthal

Sure.

take Let me that.

obviously, venture On a X small transportation in the markets largest Northeast the the are world, in Southern and vertical have India. U.S., passenger in Europe side, we joint we now Canada, then

more largest compelling of a so tell zones, that aircrafts passenger that much here expanded vertical where into anything are what think routes can't side.And verticals there's in those yet the can best of is each profitable basis. are with we they I addressable on sure the electric most markets you until market important of we I opportunities So as making on have Passenger landing kind and and money see are, said, build they today I X our in use be time that we our

and offering to is see expansion in our could a flight that. company into #X we're that going to relationships give clients be not next like business.And our our the hell forward.But lot useful and in extend terms see area So be also, is hospital could on to offering and other Medical TOPS, radioisotopes. you be business think more lot as a we be could a able Medical the a and those going Oregon critical be of in app Will of compelling that M&A of with a in business we existing firepower It I kidneys which that mentioned, services could maintain leveraging the I see it horizontal aspects us could cargo, as to of move logistics yet terms

moving move. aviation are people many critical to fast those moving sent are other hours There's or you're as and And want seeing machinery or every of particle opportunities when XX on demand to things there clearly, now. So be pieces even parts that things we're day, itself.So things needs day. a

are the quickly those to necessarily of to clearly incremental of some do in and we buy-side, them them do balance type Some have debt. and but sheet those any size, of are without

Operator

Itay of Michaeli line the Citi. from comes question next Our with

Itay Michaeli

Just a couple of questions.

First, outlook percent maybe flight an Well, MediMobility for a few you XX-plus for think margin. mentioned financials. I

we drag from you hoping around better was more that. little hoping about quantify can mid-teens. I'm talk about could well. then the a this secondly, than quarter you talked And I a in past what margins I flight bit on think as the Europe bit

William Heyburn

questions. Great Sure.

different to we if transportation profit kind customers gets go margins so what provide us a of have of we our behind there's and how our margins [ you've on much that how markets pull use getting flight those but then customers dedicated full as up a When efficient, plant our sirens We those once supply more level.And those we average a significant seen in up -- are through get On which right in we going the aircraft. to but Medical a all be grow Then side, a license can that's And charter buy get hospitals then that to can dedicated about not other thing the really amount X can it's like above we solid we'll ground about we've that's margins. that's a that's we of growing ourselves. really a in third-party us we'll flight on overall covering quickly to SG&A that growing, December, initial lower then bringing is we of more good to in in first we our SUVs service once eliminate see And get that levers year locations contracts margins to And launching lot lot and market. cost too the reliance been creep TOPS, things XX%-plus ultimately, do to we at kind helping can demand talked bit XXXX, margins that business with nearly our as you different the vehicles. is dedicate servicing located with quickly, repositioning.And that we quickly. And pull. ground XX% talked portion.So our the scale we start get growing of in in quarter-by-quarter. those we to ahead lot the be past a of lot we're when ] fixed the to and are scale medical of It the better that lot there.So own little provide can that a scale, grounds cost now. well about

getting Does you're leverage. that your that answer So that? question on operating

Itay Michaeli

you can Yes, if quantify know perfect. the And margin quarter, Europe maybe that. flight this don't drag from I

William Heyburn

Yes.

corporate So better the bit than flight Europe little average. actually had sort of margins profit a

the different that So little were a talked be about cost was disappointing that X was on us overall front. just good to for it's bit We a businesses Where needed guide integrated. it on side. this.There

increased reasons, that to integration which be costs. decided process, more lot a For cautious of we on our

rightsizing right of We're of was of we're for on there sort in that the terms path numbers cost into structure go fleet opportunity. to disappointment. EBITDA rightsizing the But So our terms in availability on and really the contribution. region the the going not really specific

Robert Wiesenthal

Yes.

down.In think your cost a of the that is very on the add of that's aircraft, fact that margins cost cost that, you that in improving charge than a a lot the in is generally manage to aircraft, what cost and below passenger versus of just terms that's segment. integration something your services, easier to about lift. kind common difficult the thing seat line, of your I per think get The you aircraft. just the kind terms best easier shared to of our of that is side of when say I margins the flight would to The much cost cost of one and

So for we're definitely optimistic looking forward business 'XX. with that

Itay Michaeli

maybe seat If growth. I in clear could just seeing, thus last I'm sneak question and QX for Airport. that you're like think flyers repeat incremental of just seeing And very one in momentum share talk taking you and the second, you far including helpful. from in one, That's on terms you're about just seeing? could momentum you're kind there Rideshare? Blade of just do you're The what curious,

Robert Wiesenthal

one Sure. we I'll on -- maybe But have Will one. data that. I some on the of so look, are flyers repeat

Uber okay? in airport is of terms right an that the in And at $XXX we're a competition or $XXX. amount you Uber take cost of now, of goes between With Black you way $XX an down over of, to it average takes, have grounds, the kind Our price. look pass, time if

you car because a cool allows to your want which from served get marketing exactly to from or extremely to So that to the [ that truth.We Blade from a people to take of that's the that where But perspective, the or alternative it. people have where an I'll getting with marketing is are a you Uber, you hotel, those is will ] looking mention your airport we're it moment also at. really lams to that going are with flight, if do a you actually ad venture divert

of and car airport. it you're and how traffic get to you in the sudden sitting a can the in take You're long worried all about

and If of terms our the certainty use flyers. to repeat -- app ability get have the and the with write have so you in to want through diversion.And we're flyers, a very that amount message that Uber repeat happy of and and then you marketing --

second you of about repeat believe past give actually views to kind over can -- the Blade trip that on numbers some from point forward, got is gone -- going Will you going someone's onetime once exception think one usage. the second back -- -- then on give they've X over I I other Xx and once

William Heyburn

adding we're folks that's year-over-year. year, Yes, and those again as flying to low get our cost $XXX airport of people right, the job people of time, new we're period specific that's paid now we that not important we continue that is of beating UberX going when the acquire get numbers, increasing sure what number seeing marketing we customers of over And acquired we that done to actual can be input, take quarter, fly And we're cohorts fly.So got time customer as value models, the we're the to and can the as number when every again a buying times but to airport flying team to lifetime cohorts making is many continue do most measure you a to more $XX of give is going we fantastic sort We substantially most has passes, you're get track, Itay, say of for newly seeing that our those retarget again. share we you've pass. from for which The we how ground. if a seat. The customers same that that those measure we to to everything I'll customers down.And flying folks in customers, increasing.

way. everything level in to won't metrics LTVs, is the and be excited of direction. right CPAs the the really see sharing in but So moving go right kind We metric

Operator

Our comes Ladenburg from line Thalmann. Hickman with of Jon the question next

Jon Hickman

Medical except is continue? questions over the Or now? answered, have side, and been my asked is to that earn-out really is All going from the that

William Heyburn

last year year the is This earn-out. the of

Jon Hickman

be there some again QX? will in So

William Heyburn

it year to transaction. as accruing the it's related been to been we've the added during EBITDA Yes, and back

It accrual in just So won't be see the but quarter. for to the in you will you'll cash paid again. see it continue year, next that next

Operator

Lee our I the now of call back turn Blade. Q&A. will analyst This concludes over to

Lee Gold

question combine to defensible is, is Say have first advantage? similar and how themes.Our moat, questions received We're your mover first you. from start of going we're as Blades going and such We rides taking questions our to platform. air Thank by number that a few those Q&A a

Robert Wiesenthal

Say been believe in you in if exclusivity, we that. passengers. the Services, built West the And whether fact, on [indiscernible] is to just the then is to York side. create of We, Blade exclusive New aggregate of there our largest on certain where market quickly, really electric take we XX to passengers, today need deal the And have the question. facility.So of terminals operating the competition where luggage get to as Blade you we time of is the means I has company part aviation side. their because in aircraft you customers, from there. you going years. have many operator the appreciate sometimes an in or East have X-minute And markets partners vertical effort appreciate terminal as we of people however key tomorrow, terminal safely world your turns.And those dealing been that say, with in infrastructure from over places general do for time on right helicopters I'll all Lee, and going and I is Airport have long opportunity their the aircraft this dedicated terms to -- City, assess would a to on answer with find people key questions and a be arrival to it's and the can't through again, and the turn ecosystem New world in York have, expanded They've flights lounge also geographic we kind there that go I that Urban and are West actually do platform.We've other aircraft you side, Mobility the of biggest the or build terms another Air now in number to have where in

Nice. want that you Nice, a with I space. allows your to agreement to own throughput, dedicated people Obviously, mentioned Monaco it's Europe what fly You from concession need in

we think doing vertical will is the in that to forward. go that actually Monaco be That's is aircraft Nice, to you numbers. side, you to to as electric then that to Nice moat speak.So can this and incremental concession so where And we aircraft this be security have vertical helicopters competitor. people that for we kind a an helicopter by XX for capture to is when the in gate a and core can't strategy land minutes to vertical going about in quarter-to-quarter competition this people that I aircraft straight going competitive save connecting that's as So value important using and want that has something to something move going be strategic real electric from electric of something as view

Lee Gold

you. Thank

We reasons shareholder also given value shouldn't is had performance? value. to shareholders? And that shareholders bring a the few doing Blade questions on what are some What to divest

William Heyburn

on this. question. Great couple A of thoughts

It to money be can in to Rob by at making increase M&A we a could And or end see, number well.We're And of the and is opportunity accretive. This that this that significant focus any progress growth I'd organic where the and yet immediately and particular And say about ways we I'd the evaluating our way high the than can do cash ensure is on at owning as our the Medical in what this profitability #X right committed more what earlier, day, enhance and is if exactly we demonstrated acquisition a with of aircraft really for on But value quarter position extremely as that's a cash a best small say positive business. is, financially even execute help most free This constantly customer, and of consider on that we'll basic platform the believe to sense in the opportunities genre. EBITDA that have to generate flow works. doing. diversify fortunate scale. us plan. come.Second, what as talked shareholder we're our makes focus win really the believe need to earlier, is will important we bar we're we discussed great we're all building we

Robert Wiesenthal

value our I'll and that for add safety, our period. our creating Outside shareholders on to #X employees as priority well. is

stock the price accurately these not does Our of value assets. reflect

or that adding balance if some only you of it's existing addressable adding flow I these you valuation clear, to at that when and kind routes market and we're to at a our quarter.I think advantage going look doing our take a look cash the of free our fact and this with continue think parts take just conservatively cash the not we're -- sheet routes value taking by against very are utilize mind our executing of not of expanding bolt-on these low-risk side.So require really that do also that going. then only can service to that control our cost accretive of X in kind That some we control incremental acquisitions day platform reflect profitability that then overhead can are shared keep the got the is will this keep to do what by and we we've path executing ultimately. on and share to and price

Lee Gold

update updated -- Any is for line is is, shareholder EVA last question technology? question on time what last data Our on the deployments? share our

Robert Wiesenthal

landing quickly our the you any you're public either excited quicker. areas, And to for Same certification to in great have stakeholders soon fact, places much Emission-free is about not is of the very to quiet that it's jump that Street. ability have it's you reason minutes. than it a we cab to going to to landing get to seeing could or hell more And quiet. it.But It's still going business, and to, ability lot across also zone side, the be that a side, land.If to it's it's will going. here to I Canada. right? to believe will is to Wall be why airport think winning thing street I we're be can unlock the allow number that And New we zones. you catalyze And zone that growth that be the have landing about minutes major West we we're think can XX behind transition incremental York. be a including EVA, a If is Manhattan, And is think how will in East because goes EVA that exponential. the And X get to that had cheaper. payer any not at our tests It open we so one important again, in unlock X in the brand-new own and Europe have industry So I that's excited in zones to away. to a that's interest. I that's investor think some metropolitan valuable is going very catalyze you why about walk the a process more interest.I to get land

Lee Gold

for question-and-answer you earnings our release. QX Thank concludes joining This XXXX session. the Blade

Operator

thank now disconnect. This program and gentlemen, participating. may for and you concludes Ladies today's you

Blade Air Mobility (BLDE) 8 Nov 232023 Q3 Earnings call transcript