- Third quarter ended
September 30, 2023 net cash from operating activities of$2 .0 million, achieving positive Free Cash Flow(1) of$1 .3 million in Q3 2023, an$8 .4 million increase in net cash from operating activities and a$7 .8 million increase in Free Cash Flow versus Q3 2022 - Net Income of
$0 .3 million, achieving Adjusted EBITDA(1) profitability of$0 .8 million in Q3 2023 - Revenue up 56% versus the prior year to
$71.4 million in Q3 2023 - Continued progress on strategic objectives including:
- Implementation of on-tarmac security screening for connections to commercial airlines at
Nice International Airport inFrance - The opening of an exclusive heliport in
Atlantic City - The launch of a new organ placement service for our Medical customers
- Our Canadian operator,
Helijet , placed an order for the Beta Technologies Electric Vertical Aircraft
- Implementation of on-tarmac security screening for connections to commercial airlines at
GAAP QUARTERLY FINANCIAL RESULTS | ||||||||||
(in thousands except percentages, unaudited) | ||||||||||
Three Months Ended | ||||||||||
2023 | 2022 | % Change | ||||||||
Revenue | $ | 71,442 | $ | 45,722 | 56.3 | % | ||||
Cost of revenue | 55,863 | 36,456 | 53.2 | % | ||||||
Software development | 1,076 | 2,026 | (46.9 | )% | ||||||
General and administrative | 19,265 | 15,812 | 21.8 | % | ||||||
Selling and marketing | 2,686 | 1,856 | 44.7 | % | ||||||
Total operating expenses | 78,890 | 56,150 | 40.5 | % | ||||||
Loss from operations | (7,448 | ) | (10,428 | ) | (28.6 | )% | ||||
Net income (loss) | $ | 289 | $ | (9,245 | ) | NM* | ||||
Passenger net income (loss) | $ | 801 | $ | (416 | ) | NM* | ||||
Medical net (loss) income | $ | (85 | ) | $ | 999 | NM* | ||||
Unallocated corporate expenses and software development | $ | (8,164 | ) | $ | (11,011 | ) | (25.9 | )% |
NON-GAAP(1) QUARTERLY FINANCIAL RESULTS | ||||||||||
(in thousands except percentages, unaudited) | ||||||||||
Three Months Ended | ||||||||||
2023 | 2022 | Change | ||||||||
GAAP Revenue | $ | 71,442 | $ | 45,722 | 56.3 | % | ||||
GAAP Cost of revenue | 55,863 | 36,456 | 53.2 | % | ||||||
15,579 | 9,266 | 68.1 | % | |||||||
21.8 | % | 20.3 | % | +154bps | ||||||
Adjusted Corporate Expense | 14,792 | 13,814 | 7.1 | % | ||||||
Adjusted Corporate Expense as a percentage of Revenue | 20.7 | % | 30.2 | % | -950bps | |||||
Adjusted EBITDA | $ | 787 | $ | (4,548 | ) | NM* | ||||
Adjusted EBITDA as a percentage of Revenue | 1.1 | % | (9.9 | )% | NM* | |||||
Passenger Adjusted EBITDA | $ | 2,777 | $ | 1,472 | 88.7 | % | ||||
Medical Adjusted EBITDA | $ | 3,346 | $ | 1,495 | 123.8 | % | ||||
Adjusted unallocated corporate expenses and software development | $ | (5,336 | ) | $ | (7,515 | ) | (29.0 | %) | ||
*Percentage not meaningful | ||||||||||
"We are very pleased to deliver our first quarter of positive Free Cash Flow and Adjusted EBITDA while maintaining rapid revenue growth in both the Passenger and Medical segments," said
At
"Our turn to profitability this quarter highlights the results of our strong execution on growth initiatives coupled with relentless focus on cost efficiencies as we shrunk Adjusted Unallocated Corporate Expenses by 29.0% while still growing revenue 56% in Q3 2023 versus the prior year period," said
"We have made great progress in optimizing our aircraft capacity purchase agreements to capitalize on our growing scale thus enabling Blade to benefit from the economic leverage of a more active accessible fleet. We are already seeing this translate to
"The launch of TOPS, our new organ placement service, comes by special request from our existing customer base," said
Third Quarter Ended
- Total revenue increased 56.3% to
$71.4 million in the current quarter versus$45.7 million in the prior year period. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, revenue for the quarter endedSeptember 30, 2023 would have increased approximately 25.5%(1) on a constant currency basis. Flight Profit (1) increased 68.1% to$15 .6 million in the current quarter versus$9.3 million in the prior year period, driven by strong growth in ourMediMobility Organ Transport business, the contribution from our Blade Europe acquisitions, and improved profitability across ourU.S. Short Distance business.Flight Margin (1) improved to 21.8% in the current quarter from 20.3% in the prior year period, driven by increased use of dedicated aircraft in ourMediMobility Organ Transport business line, which results in lower costs, the acquisition of Blade Europe, which operates at a higher averageFlight Profit versus our corporate average, improved pricing and utilization in ourNew York by-the-seat airport transfer product, and a reduction in spot market jet charter costs, which decreased more quickly than our jet charter pricing.- Short Distance revenue increased 48.9% to
$30.4 million in the current quarter versus$20.4 million in the prior year period. Growth was driven by our acquisition of Blade Europe and growth in our other Short Distance business lines. MediMobility Organ Transport revenue increased 65.4% to$33.4 million in the current quarter versus$20.2 million in the prior year period, driven by the addition of new transplant center customers, continued growth with existing customers, and strong market demand.- Jet and Other revenue increased 49.1% to
$7.6 million in the current quarter versus$5.1 million in the prior year period driven by an increase in jet charter volume. - Adjusted EBITDA(1) improved to
$0.8 million in the current quarter versus$(4.5) million in the prior year period, and improved as a percentage of revenues to 1.1% in the current quarter from (9.9)% in the prior year period. The improvement was driven by a 123.8% increase in Medical Segment Adjusted EBITDA to$3.3 million in the current quarter, an 88.7% increase in Passenger Segment Adjusted EBITDA to$2.8 million and a$2.2 million improvement in Adjusted Unallocated Corporate Expenses and Software Development to$(5.3) million . - Free Cash Flow(1) of
$1 .3 million in Q3 2023 increased$7 .8 million versus Q3 2022. - Ended Q3 2023 with
$173 .2 million in cash and short term investments.
Business Highlights and Recent Updates
- Announced Trinity Organ Placement Services, or TOPS, a new Medical business line helping transplant centers determine if an organ is a match for a potential recipient.
- Opened an on-tarmac security checkpoint at
Nice Airport that will allow our fliers to bypass the terminal and proceed directly to the gate of their connecting flight after landing on a Blade helicopter. - Partnered with
Ocean Casino to create an exclusive Blade heliport at theirAtlantic City, New Jersey casino. Charter service is available today and by-the-seat service, sponsored byOcean Casino , is planned for Spring 2024. - The operator for our Canadian business, operating as
Helijet , placed an order for the Beta Technologies Alia Electric Vertical Aircraft which is expected to provide future quiet, emission-free air mobility service for Blade fliers inCanada .
____________________
(1) See “Use of Non-GAAP Financial Measures” attached to this release for further detail on adjustments to GAAP financial measures.
Conference Call
The Company will conduct a conference call starting at
A live audio-only webcast of the call may be accessed from the Investor Relations section of the Company’s website at https://ir.blade.com/. An archived replay of the call will be available on the Investor Relations section of the Company's website for one year.
Use of Non-GAAP Financial Information
Blade believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported
Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. This measure excludes non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations (as shown in the table below). Blade defines Segment Adjusted EBITDA as segment net income (loss) excluding non-cash items or certain transactions that management does not believe are reflective of our ongoing core operations.
Adjusted Unallocated Corporate Expenses – Blade defines Adjusted Unallocated Corporate Expenses as expenses attributable to our Corporate expenses and software development operating segment less non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations that cannot be allocated to either of our reporting segments (Passenger and Medical). Adjusted Unallocated Corporate Expenses has the same meaning as Segment Adjusted EBITDA for our Corporate expenses and software development operating segment and is reconciled in the tables below under the caption “Reconciliation of Segment Net Income (loss) to Segment Adjusted EBITDA.”
Constant currency - The unaudited interim condensed consolidated financial statements included here are presented in
Corporate Expenses and Adjusted Corporate Expenses - Blade defines Corporate Expenses as total operating expenses excluding cost of revenue. Blade defines Adjusted Corporate Expenses as Corporate Expenses excluding non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations.
Free Cash Flow - Blade defines Free Cash Flow as net cash provided by / (used in) operating activities less capital expenditures.
Pro forma revenue - Pro forma revenue gives effect to revenue from acquisitions that occurred after the commensurate period of the prior year as if they had been acquired on the first day of the commensurate period of the prior year. Pro forma change in revenue is calculated as the difference between the current reported GAAP revenue and the comparative period pro forma revenue. Management believes that discussing pro forma revenue contributes to the understanding of Blade's performance and trends, because it allows for comparisons of the current year period to that of prior years, normalized for the impact of acquisitions. Management believes that pro forma change in revenue assists in measuring the underlying revenue growth of our business as it stands as of the end of the current year period, which we believe provides insight into our then-current operations. Pro forma change in revenue does not represent organic revenue generated by our business as it stood at the beginning of the prior year period.
Financial Results
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except share data, unaudited) | |||||||
2023 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 36,815 | $ | 43,296 | |||
Restricted cash | 1,459 | 1,127 | |||||
Accounts receivable, net of allowance of | 21,040 | 10,877 | |||||
Short-term investments | 136,414 | 150,740 | |||||
Prepaid expenses and other current assets | 13,009 | 12,086 | |||||
Total current assets | 208,737 | 218,126 | |||||
Non-current assets: | |||||||
Property and equipment, net | 3,322 | 2,037 | |||||
Investment in joint venture | 390 | 390 | |||||
Intangible assets, net | 41,572 | 46,365 | |||||
39,229 | 39,445 | ||||||
Operating right-of-use asset | 23,290 | 17,692 | |||||
Other non-current assets | 974 | 970 | |||||
Total assets | $ | 317,514 | $ | 325,025 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 18,768 | $ | 16,536 | |||
Deferred revenue | 6,835 | 6,709 | |||||
Operating lease liability, current | 4,760 | 3,362 | |||||
Total current liabilities | 30,363 | 26,607 | |||||
Non-current liabilities: | |||||||
Warrant liability | 3,260 | 7,083 | |||||
Operating lease liability, long-term | 19,588 | 14,970 | |||||
Deferred tax liability | 1,426 | 1,876 | |||||
Total liabilities | 54,637 | 50,536 | |||||
Stockholders' Equity | |||||||
Preferred stock, | — | — | |||||
Common stock, | 7 | 7 | |||||
Additional paid in capital | 386,953 | 375,873 | |||||
Accumulated other comprehensive income | 1,730 | 2,287 | |||||
Accumulated deficit | (125,813 | ) | (103,678 | ) | |||
Total stockholders' equity | 262,877 | 274,489 | |||||
Total Liabilities and Stockholders' Equity | $ | 317,514 | $ | 325,025 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except share and per share data, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 71,442 | $ | 45,722 | $ | 177,702 | $ | 107,985 | |||||||
Operating expenses | |||||||||||||||
Cost of revenue | 55,863 | 36,456 | 144,590 | 90,685 | |||||||||||
Software development | 1,076 | 2,026 | 3,639 | 3,923 | |||||||||||
General and administrative | 19,265 | 15,812 | 53,932 | 41,934 | |||||||||||
Selling and marketing | 2,686 | 1,856 | 8,025 | 5,294 | |||||||||||
Total operating expenses | 78,890 | 56,150 | 210,186 | 141,836 | |||||||||||
Loss from operations | (7,448 | ) | (10,428 | ) | (32,484 | ) | (33,851 | ) | |||||||
Other non-operating income (expense) | |||||||||||||||
Interest income, net | 2,147 | 1,173 | 6,178 | 1,892 | |||||||||||
Change in fair value of warrant liabilities | 5,719 | 425 | 3,823 | 22,241 | |||||||||||
Realized loss from sales of short-term investments | — | (359 | ) | (95 | ) | (2,071 | ) | ||||||||
Total other non-operating income | 7,866 | 1,239 | 9,906 | 22,062 | |||||||||||
Income (loss) before income taxes | 418 | (9,189 | ) | (22,578 | ) | (11,789 | ) | ||||||||
Income tax expense (benefit) | 129 | 56 | (443 | ) | 56 | ||||||||||
Net income (loss) | $ | 289 | $ | (9,245 | ) | $ | (22,135 | ) | $ | (11,845 | ) | ||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | — | $ | (0.13 | ) | $ | (0.30 | ) | $ | (0.17 | ) | ||||
Diluted | $ | — | $ | (0.13 | ) | $ | (0.30 | ) | $ | (0.17 | ) | ||||
Weighted-average number of shares outstanding: | |||||||||||||||
Basic | 74,139,422 | 71,466,085 | 73,108,263 | 71,099,764 | |||||||||||
Diluted | 81,006,859 | 71,466,085 | 73,108,263 | 71,099,764 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||
Net income (loss) | $ | 289 | $ | (9,245 | ) | $ | (22,135 | ) | $ | (11,845 | ) | ||||
Adjustments to reconcile net income (loss) to net cash and restricted cash used in operating activities: | |||||||||||||||
Depreciation and amortization | 1,843 | 1,441 | 5,305 | 3,741 | |||||||||||
Stock-based compensation | 3,330 | 1,685 | 9,348 | 5,627 | |||||||||||
Change in fair value of warrant liabilities | (5,719 | ) | (425 | ) | (3,823 | ) | (22,241 | ) | |||||||
Realized loss from sales of short-term investments | — | 359 | 95 | 2,071 | |||||||||||
Realized foreign exchange loss | 1 | 12 | 6 | 7 | |||||||||||
Accretion of interest income on held-to-maturity securities | (1,692 | ) | (311 | ) | (4,716 | ) | (311 | ) | |||||||
Deferred tax benefit | 129 | — | (443 | ) | — | ||||||||||
Loss on disposal of property and equipment | — | 132 | — | 197 | |||||||||||
Bad debt expense | 171 | — | 171 | — | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Prepaid expenses and other current assets | 1,521 | 121 | (1,104 | ) | (3,781 | ) | |||||||||
Accounts receivable | 1,251 | (337 | ) | (10,379 | ) | (4,461 | ) | ||||||||
Other non-current assets | 16 | 93 | (8 | ) | (1,059 | ) | |||||||||
Operating right-of-use assets/lease liabilities | 44 | 90 | 421 | 196 | |||||||||||
Accounts payable and accrued expenses | 3,999 | 2,980 | 4,086 | 4,255 | |||||||||||
Deferred revenue | (3,160 | ) | (2,941 | ) | 147 | (417 | ) | ||||||||
Other | — | (5 | ) | — | (5 | ) | |||||||||
Net cash provided by / (used in) operating activities | 2,023 | (6,351 | ) | (23,029 | ) | (28,026 | ) | ||||||||
Cash Flows From Investing Activities: | |||||||||||||||
Acquisitions, net of cash acquired | — | (48,101 | ) | — | (48,101 | ) | |||||||||
Investment in joint venture | — | (190 | ) | — | (190 | ) | |||||||||
Purchase of property and equipment | (695 | ) | (93 | ) | (2,085 | ) | (719 | ) | |||||||
Purchase of short-term investments | — | (125 | ) | (135 | ) | (578 | ) | ||||||||
Proceeds from sales of short-term investments | — | 39,677 | 20,532 | 248,377 | |||||||||||
Purchase of held-to-maturity investments | (135,690 | ) | (139,911 | ) | (265,835 | ) | (139,911 | ) | |||||||
Proceeds from maturities of held-to-maturity investments | 133,350 | 20,000 | 264,537 | 20,000 | |||||||||||
Net cash (used in) / provided by investing activities | (3,035 | ) | (128,743 | ) | 17,014 | 78,878 | |||||||||
Cash Flows From Financing Activities: | |||||||||||||||
Proceeds from the exercise of common stock options | 9 | 2 | 63 | 81 | |||||||||||
Taxes paid related to net share settlement of equity awards | (15 | ) | (154 | ) | (116 | ) | (1,165 | ) | |||||||
Net cash used in financing activities | (6 | ) | (152 | ) | (53 | ) | (1,084 | ) | |||||||
Effect of foreign exchange rate changes on cash balances | (101 | ) | (16 | ) | (81 | ) | (9 | ) | |||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (1,119 | ) | (135,262 | ) | (6,149 | ) | 49,759 | ||||||||
Cash and cash equivalents and restricted cash - beginning | 39,393 | 188,246 | 44,423 | 3,225 | |||||||||||
Cash and cash equivalents and restricted cash - ending | $ | 38,274 | $ | 52,984 | $ | 38,274 | $ | 52,984 | |||||||
Reconciliation to the unaudited interim condensed consolidated balance sheets | |||||||||||||||
Cash and cash equivalents | $ | 36,815 | $ | 51,845 | $ | 36,815 | $ | 51,845 | |||||||
Restricted cash | 1,459 | 1,139 | 1,459 | 1,139 | |||||||||||
Total | $ | 38,274 | $ | 52,984 | $ | 38,274 | $ | 52,984 | |||||||
Key Metrics and Non-GAAP Financial Information
DISAGGREGATED REVENUE BY PRODUCT LINE | |||||||||||
(in thousands, unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Passenger segment | |||||||||||
Short Distance | $ | 30,388 | $ | 20,402 | $ | 59,997 | $ | 35,568 | |||
Jet and Other | 7,607 | 5,101 | 23,092 | 22,274 | |||||||
Total | $ | 37,995 | $ | 25,503 | $ | 83,089 | $ | 57,842 | |||
Medical segment | |||||||||||
$ | 33,447 | $ | 20,219 | 94,613 | 50,143 | ||||||
Total | $ | 33,447 | $ | 20,219 | $ | 94,613 | $ | 50,143 | |||
Total Revenue | $ | 71,442 | $ | 45,722 | $ | 177,702 | $ | 107,985 |
SEGMENT INFORMATION: REVENUE, | |||||||||||||||
(in thousands except percentages, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Passenger | $ | 37,995 | $ | 25,503 | $ | 83,089 | $ | 57,842 | |||||||
Medical | 33,447 | 20,219 | 94,613 | 50,143 | |||||||||||
Total Revenue | $ | 71,442 | $ | 45,722 | $ | 177,702 | $ | 107,985 | |||||||
Passenger | $ | 9,410 | $ | 6,094 | $ | 16,864 | $ | 9,261 | |||||||
Medical | 6,169 | 3,172 | 16,248 | 8,039 | |||||||||||
Total | $ | 15,579 | $ | 9,266 | $ | 33,112 | $ | 17,300 | |||||||
Passenger | 24.8 | % | 23.9 | % | 20.3 | % | 16.0 | % | |||||||
Medical | 18.4 | % | 15.7 | % | 17.2 | % | 16.0 | % | |||||||
Total | 21.8 | % | 20.3 | % | 18.6 | % | 16.0 | % | |||||||
Passenger | $ | 2,777 | $ | 1,472 | $ | (2,353 | ) | $ | (2,746 | ) | |||||
Medical | 3,346 | 1,495 | 8,249 | 3,529 | |||||||||||
Total Segment Adjusted EBITDA | 6,123 | 2,967 | 5,896 | 783 | |||||||||||
Adjusted unallocated corporate expenses and software development | (5,336 | ) | (7,515 | ) | (17,281 | ) | (20,427 | ) | |||||||
Total Adjusted EBITDA | $ | 787 | $ | (4,548 | ) | $ | (11,385 | ) | $ | (19,644 | ) |
RECONCILIATION OF REPORTED REVENUE TO PRO FORMA REVENUE |
(in thousands except percentages, unaudited) |
The following unaudited pro forma financial information presents what our revenue would have been if the Blade Europe business had been acquired on
Three Months Ended | |||||||||||||||
Total | Short Distance | Jet and Other | MediMobility | ||||||||||||
Reported Revenue three months ended | $ | 45,722 | $ | 20,402 | $ | 5,101 | $ | 20,219 | |||||||
Impact of Blade Europe | 10,969 | 10,969 | — | — | |||||||||||
Pro forma Revenue | $ | 56,691 | $ | 31,371 | $ | 5,101 | $ | 20,219 | |||||||
Reported Revenue three months ended | $ | 71,442 | $ | 30,388 | $ | 7,607 | $ | 33,447 | |||||||
Pro forma change in revenue | 26.0 | % | (3.1 | )% | 49.1 | % | 65.4 | % | |||||||
Impact of foreign currency translation | 0.5 | % | 0.9 | % | ** | ** | |||||||||
Pro forma constant currency change in revenue | 25.5 | % | (4.0 | )% | 49.1 | % | 65.4 | % | |||||||
** Percentage not applicable | |||||||||||||||
Nine Months Ended | |||||||||||||||
Total | Short Distance | Jet and Other | MediMobility | ||||||||||||
Reported Revenue six months ended | $ | 107,985 | $ | 35,568 | $ | 22,274 | $ | 50,143 | |||||||
Impact of Blade Europe | 23,369 | 23,369 | — | — | |||||||||||
Pro forma Revenue | $ | 131,354 | $ | 58,937 | $ | 22,274 | $ | 50,143 | |||||||
Reported Revenue three months ended | $ | 177,702 | $ | 59,997 | $ | 23,092 | $ | 94,613 | |||||||
Pro forma change in revenue | 35.3 | % | 1.8 | % | 3.7 | % | 88.7 | % | |||||||
Impact of foreign currency translation | 0.2 | % | 0.4 | % | ** | ** | |||||||||
Pro forma constant currency change in revenue | 35.1 | % | 1.4 | % | 3.7 | % | 88.7 | % | |||||||
** Percentage not applicable |
SEATS FLOWN - ALL PASSENGER FLIGHTS | |||||||
(unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Seats flown – all passenger flights | 50,821 | 28,440 | 121,008 | 75,175 |
REVENUE, | |||||||||||||||
(in thousands except percentages, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
GAAP Revenue | $ | 71,442 | $ | 45,722 | $ | 177,702 | $ | 107,985 | |||||||
GAAP Cost of Revenue | 55,863 | 36,456 | 144,590 | 90,685 | |||||||||||
15,579 | 9,266 | 33,112 | 17,300 | ||||||||||||
21.8 | % | 20.3 | % | 18.6 | % | 16.0 | % | ||||||||
Adjusted Corporate Expense | 14,792 | 13,814 | 44,497 | 36,944 | |||||||||||
Adjusted Corporate Expense as a percentage of Revenue | 20.7 | % | 30.2 | % | 25.0 | % | 34.2 | % | |||||||
Adjusted EBITDA | $ | 787 | $ | (4,548 | ) | $ | (11,385 | ) | $ | (19,644 | ) | ||||
Adjusted EBITDA as a percentage of Revenue | 1.1 | % | (9.9 | )% | (6.4 | )% | (18.2 | )% |
RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT AND LOSS FROM OPERATIONS | |||||||||||||||
(in thousands except percentages, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 71,442 | $ | 45,722 | $ | 177,702 | $ | 107,985 | |||||||
Cost of revenue (1) | (55,863 | ) | (36,456 | ) | (144,590 | ) | (90,685 | ) | |||||||
$ | 15,579 | $ | 9,266 | $ | 33,112 | $ | 17,300 | ||||||||
21.8 | % | 20.3 | % | 18.6 | % | 16.0 | % | ||||||||
$ | 15,579 | $ | 9,266 | $ | 33,112 | $ | 17,300 | ||||||||
Reconciling items: | |||||||||||||||
Software development | (1,076 | ) | (2,026 | ) | (3,639 | ) | (3,923 | ) | |||||||
General and administrative | (19,265 | ) | (15,812 | ) | (53,932 | ) | (41,934 | ) | |||||||
Selling and marketing | (2,686 | ) | (1,856 | ) | (8,025 | ) | (5,294 | ) | |||||||
Loss from operations | $ | (7,448 | ) | $ | (10,428 | ) | $ | (32,484 | ) | $ | (33,851 | ) |
__________
(1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, ROU asset amortization and internal costs incurred in generating organ ground transportation revenue using the Company's owned cars.
RECONCILIATION OF TOTAL OPERATING EXPENSES TO ADJUSTED CORPORATE EXPENSES | |||||||||||||||
(in thousands except percentages, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 71,442 | $ | 45,722 | $ | 177,702 | $ | 107,985 | |||||||
Total operating expenses | 78,890 | 56,150 | 210,186 | 141,836 | |||||||||||
Subtract: | |||||||||||||||
Cost of revenue | 55,863 | 36,456 | 144,590 | 90,685 | |||||||||||
Corporate Expenses | $ | 23,027 | $ | 19,694 | $ | 65,596 | $ | 51,151 | |||||||
Corporate Expenses as percentage of Revenue | 32.2 | % | 43.1 | % | 36.9 | % | 47.4 | % | |||||||
Adjustments to reconcile Corporate Expenses to Adjusted Corporate Expenses | |||||||||||||||
Subtract: | |||||||||||||||
Depreciation and amortization | 1,843 | 1,441 | 5,305 | 3,741 | |||||||||||
Stock-based compensation | 3,330 | 1,685 | 9,348 | 5,627 | |||||||||||
Legal and regulatory advocacy fees (1) | 217 | 143 | 640 | 2,054 | |||||||||||
Executive severance costs | — | — | 265 | — | |||||||||||
SOX readiness costs | 145 | — | 180 | — | |||||||||||
Contingent consideration compensation (earn-out) (2) | 2,700 | — | 5,361 | — | |||||||||||
Short-term incentive plan costs (3) | — | 1,250 | — | — | |||||||||||
M&A transaction costs | — | 1,361 | — | 2,785 | |||||||||||
Adjusted Corporate Expenses | $ | 14,792 | $ | 13,814 | $ | 44,497 | $ | 36,944 | |||||||
Adjusted Corporate Expenses as percentage of Revenue | 20.7 | % | 30.2 | % | 25.0 | % | 34.2 | % |
__________
(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at
(2) Represents contingent consideration compensation for the three months and nine months ended
(3) In the three months ended
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | |||||||||||||||
(in thousands except percentages, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income (loss) | $ | 289 | $ | (9,245 | ) | $ | (22,135 | ) | $ | (11,845 | ) | ||||
Depreciation and amortization | 1,843 | 1,441 | 5,305 | 3,741 | |||||||||||
Stock-based compensation | 3,330 | 1,685 | 9,348 | 5,627 | |||||||||||
Change in fair value of warrant liabilities | (5,719 | ) | (425 | ) | (3,823 | ) | (22,241 | ) | |||||||
Realized loss from sales of short-term investments | — | 359 | 95 | 2,071 | |||||||||||
Interest income, net | (2,147 | ) | (1,173 | ) | (6,178 | ) | (1,892 | ) | |||||||
Income tax expense (benefit) | 129 | 56 | (443 | ) | 56 | ||||||||||
Legal and regulatory advocacy fees (1) | 217 | 143 | 640 | 2,054 | |||||||||||
Executive severance costs | — | — | 265 | — | |||||||||||
SOX readiness costs | 145 | — | 180 | — | |||||||||||
Contingent consideration compensation (earn-out) (2) | 2,700 | — | 5,361 | — | |||||||||||
Short-term incentive plan costs (3) | — | 1,250 | — | — | |||||||||||
M&A transaction costs | — | 1,361 | — | 2,785 | |||||||||||
Adjusted EBITDA | $ | 787 | $ | (4,548 | ) | $ | (11,385 | ) | $ | (19,644 | ) | ||||
Adjusted EBITDA as a percentage of Revenue | 1.1 | % | (9.9 | )% | (6.4 | )% | (18.2 | )% |
__________
(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at
(2) Represents contingent consideration compensation for the three months and nine months ended
(3) In the three months ended
RECONCILIATION OF NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net cash provided by / (used in) operating activities | $ | 2,023 | $ | (6,351 | ) | $ | (23,029 | ) | $ | (28,026 | ) | ||||
Purchase of property and equipment | (695 | ) | (93 | ) | (2,085 | ) | (719 | ) | |||||||
Free Cash Flow | $ | 1,328 | $ | (6,444 | ) | $ | (25,114 | ) | $ | (28,745 | ) |
RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO SEGMENT ADJUSTED EBITDA | ||||||||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
Passenger | Medical | Unallocated Corporate expenses and software development | Passenger | Medical | Unallocated Corporate expenses and software development | |||||||||||||||||
Segment net income (loss) | $ | 801 | $ | (85 | ) | $ | (427 | ) | $ | (416 | ) | $ | 999 | $ | (9,828 | ) | ||||||
Reconciling items: | ||||||||||||||||||||||
Depreciation and amortization | 1,376 | 416 | 51 | 1,024 | 374 | 43 | ||||||||||||||||
Stock-based compensation | 383 | 315 | 2,632 | 197 | 92 | 1,396 | ||||||||||||||||
Change in fair value of warrant liabilities | — | — | (5,719 | ) | — | — | (425 | ) | ||||||||||||||
Realized loss from sales of short-term investments | — | — | — | — | — | 359 | ||||||||||||||||
Interest income, net | — | — | (2,147 | ) | — | — | (1,173 | ) | ||||||||||||||
Income tax expense (benefit) | — | — | 129 | — | — | 56 | ||||||||||||||||
Legal and regulatory advocacy fees (1) | 217 | — | — | 143 | — | — | ||||||||||||||||
SOX readiness costs | — | — | 145 | — | — | — | ||||||||||||||||
Contingent consideration compensation (earn-out) (2) | — | 2,700 | — | — | — | — | ||||||||||||||||
Short-term incentive plan costs (3) | — | — | — | 524 | 30 | 696 | ||||||||||||||||
M&A transaction costs | — | — | — | — | — | 1,361 | ||||||||||||||||
Segment Adjusted EBITDA | $ | 2,777 | $ | 3,346 | $ | (5,336 | ) | $ | 1,472 | $ | 1,495 | $ | (7,515 | ) |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||
Passenger | Medical | Unallocated Corporate expenses and software development | Passenger | Medical | Unallocated Corporate expenses and software development | |||||||||||||||||
Segment net income (loss) | $ | (8,154 | ) | $ | 1,055 | $ | (15,036 | ) | $ | (8,258 | ) | $ | 2,215 | $ | (5,802 | ) | ||||||
Reconciling items: | ||||||||||||||||||||||
Depreciation and amortization | 3,873 | 1,279 | 153 | 2,502 | 1,124 | 115 | ||||||||||||||||
Stock-based compensation | 1,095 | 554 | 7,699 | 956 | 190 | 4,481 | ||||||||||||||||
Change in fair value of warrant liabilities | — | — | (3,823 | ) | — | — | (22,241 | ) | ||||||||||||||
Realized loss from sales of short-term investments | — | — | 95 | — | — | 2,071 | ||||||||||||||||
Interest income, net | — | — | (6,178 | ) | — | — | (1,892 | ) | ||||||||||||||
Income tax expense (benefit) | — | — | (443 | ) | — | — | 56 | |||||||||||||||
Legal and regulatory advocacy fees (1) | 640 | — | — | 2,054 | — | — | ||||||||||||||||
Executive severance costs | 193 | — | 72 | — | — | — | ||||||||||||||||
SOX readiness costs | — | — | 180 | — | — | — | ||||||||||||||||
Contingent consideration compensation (earn-out) (2) | — | 5,361 | — | — | — | — | ||||||||||||||||
M&A transaction costs | — | — | — | — | — | 2,785 | ||||||||||||||||
Segment Adjusted EBITDA | $ | (2,353 | ) | $ | 8,249 | $ | (17,281 | ) | $ | (2,746 | ) | $ | 3,529 | $ | (20,427 | ) |
______________
(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at
(2) Represents contingent consideration compensation for the three months and nine months ended
(3) In the three months ended
LAST TWELVE MONTHS DISAGGREGATED REVENUE BY PRODUCT LINE | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
Last Twelve Months | 2023 | 2023 | 2023 | 2022 | |||||||||||
Product Line: | |||||||||||||||
Short Distance | $ | 69,415 | $ | 30,388 | $ | 19,184 | $ | 10,425 | $ | 9,418 | |||||
Jet and Other | 30,173 | 7,607 | 7,406 | 8,079 | 7,081 | ||||||||||
116,249 | 33,447 | 34,399 | 26,767 | 21,636 | |||||||||||
Total Revenue | $ | 215,837 | $ | 71,442 | $ | 60,989 | $ | 45,271 | $ | 38,135 | |||||
About
Blade is a technology-powered, global air mobility platform committed to reducing travel friction by providing cost-effective air transportation alternatives to some of the most congested ground routes in the
For more information, visit www.blade.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Blade’s future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning Blade’s future financial and operating performance, results of operations, industry environment and growth opportunities, plans to release guidance, new product lines, and the development and adoption of EVA technology. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blade’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include: our continued incurrence of significant losses; the impact of the COVID-19 pandemic and its related effects, failure of the markets for our offerings to grow as expected, or at all; our ability to effectively market and sell air transportation as a substitute for conventional methods of transportation; the inability or unavailability to use or take advantage of the shift, or lack thereof, to EVA technology; our ability to successfully enter new markets and launch new routes and services; any adverse publicity stemming from accidents involving small aircraft, helicopters or charter flights and, in particular, any accidents involving our third-party operators; the effects of competition; harm to our reputation and brand; our ability to provide high-quality customer support; our ability to maintain a high daily aircraft usage rate; changes in consumer preferences, discretionary spending and other economic conditions; impact of natural disasters, outbreaks and pandemics, economic, social, weather, growth constraints, and regulatory conditions or other circumstances on metropolitan areas and airports where we have geographic concentration; the effects of climate change, including potential increased impacts of severe weather and regulatory activity; the availability of aircraft fuel; our ability to address system failures, defects, errors, or vulnerabilities in our website, applications, backend systems or other technology systems or those of third-party technology providers; interruptions or security breaches of our information technology systems; our placements within mobile applications; our ability to protect our intellectual property rights; our use of open source software; our ability to expand and maintain our infrastructure network; our ability to access additional funding; the increase of costs and risks associated with international expansion; our ability to identify, complete and successfully integrate future acquisitions; our ability to manage our growth; increases in insurance costs or reductions in insurance coverage; the loss of key members of our management team; our ability to maintain our company culture; our reliance on contractual relationships with certain transplant centers and Organ Procurement Organizations; effects of fluctuating financial results; our reliance on third-party operators; the availability of third-party operators; disruptions to third party operators; increases in insurance costs or reductions in insurance coverage for our third-party aircraft operators; the possibility that our third-party aircraft operators may illegally, improperly or otherwise inappropriately operate our branded aircraft; our reliance on third-party web service providers; changes in our regulatory environment; regulatory obstacles in local governments; the expansion of domestic and foreign privacy and security laws; the expansion of environmental regulations; our ability to remediate any material weaknesses or maintain internal controls over financial reporting; our ability to maintain effective internal controls and disclosure controls; changes in the fair value of our warrants; and other factors beyond our control. Additional factors can be found in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the
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Source:
2023 GlobeNewswire, Inc., source