Blade Air Mobility released its Q4 financial results and highlights this week which are described by Rob Wiesenthal, CEO of the company as, “a strong fourth quarter to close our a monumental year for Blade”, reports a press release.
He continues, ”Strong organic growth in MediMobility Organ Transport coupled with our acquisitions in Europe and Canada drove record Revenue and Flight Profit in calendar year 2022… We continue to believe that Blade is well positioned to thrive in any economic climate, particularly given the non-discretionary nature of our Medical business, the resilience of our fliers and the supply flexibility afforded by our asset-light model.”
Rob Wiesenthal
Highlights
: Fourth quarter ended December 31, 2022 revenue up 55 percent versus the prior year to USD38.1 million; calendar year ended December 31, 2022 revenue up 118 percent versus the prior year period to USD146.1 million.
: Short Distance revenue up 51 percent in Q4 2022 versus the prior year period, reflecting higher pricing across our route network and our acquisitions of Blade Europe and Blade Canada.
: MediMobility Organ Transport revenue up 120 percent in Q4 2022 versus the prior year period, driven by the acquisition of new transplant centre clients, robust growth with existing clients, and strong organ transplant market growth.
: Flight Profit increased 38 percent in Q4 2022 versus the prior year period, driven by organic and inorganic growth.
Will Heyburn, CFO of Blade, remarked, ”This was another year of consistent execution on our growth plan… and we remain confident that our path to profitability is both tangible and forthcoming. As a result, we expect a significant majority of our existing cash balance to be available for acquisitions that should expand our air mobility capabilities and accelerate Blade’s trajectory to positive free cash flow.”
While Blade’s Beta ‘Alia-250 is not an exact eVTOL, as its craft presently requires a runway to take-off and land ( a new and pure eVTOL aircraft is presently being trialled), it is still fitting that a company associated with this emerging industry is experiencing a rapidly growing revenue stream – at present, a rare occurrence.
Melissa Tomkiel, Blade’s President, said, “This quarter we completed the first piloted test flight of an Electric Vertical Aircraft in the Greater New York City region in cooperation with our partner Beta Technologies. We were pleased to be a part of this historic moment for the industry, bringing us one step closer to making electric vertical aircraft technology a reality for the people of New York and beyond.”
More in-Depth Q4 Financial Results
: Total revenue increased 55 percent to USD38.1 million in the current quarter versus USD24.6 million in the prior year period. On a pro forma basis, assuming Blade had owned Blade Canada and Blade Europe in the comparable prior year period, revenue for the fourth quarter ended December 31, 2022 would have increased approximately 34 percent on a constant currency basis.
: Flight Profit increased 38 percent to USD5.4 million in the current quarter versus USD3.9 million in the prior year period, driven by strong growth in our MediMobility Organ Transport business and the contribution from our Blade Canada and Blade Europe acquisitions.
: Flight Margin declined to 14.3 percent in the current quarter, as expected, from 16.0 percent in the prior year period, driven by lower margins in Jet and Other, outsized growth in MediMobility Organ Transport, which outpaced that of our other business lines and tends to have lower Flight Margin versus our historical company average, and the continued ramp of Blade Airport.
: Short Distance revenue increased 51 percent to USD9.4 million in the current quarter versus USD6.3 million in the prior year period. Growth was driven by our acquisitions of Blade Europe and Blade Canada, and continued growth in our Blade Airport service.
: MediMobility Organ Transport revenue increased 120 percent to USD21.6 million in the current quarter versus USD9.8 million in the prior year period, driven by the addition of new transplant center customers, continued growth with existing customers, and strong market demand. Revenue increased 7 percent sequentially in Q4 2022 versus Q3 2022.
: Jet and Other revenue decreased (17) percent to USD7.1 million in the current quarter versus USD8.5 million in the prior year period primarily due to a normalization in jet charter volume, as the prior year period benefited from outsized demand due to the COVID-19 Omicron variant, partially offset by higher average price per charter trip.
: Net loss of USD15.4 million in the quarter declined versus a net income of YUSD0.8 million in the prior year period.
: Adjusted EBITDA decreased to USD(8.0) million in the current quarter from USD(5.9) million in the prior year period, but improved as a percentage of revenues to (20.9) percent in the current quarter from (24.1) percent in the prior year period. The increased loss versus the prior year period is primarily attributable to additional corporate and recurring expenses related to Blade’s recent growth and expected future growth, the contribution from Blade Europe, which generated limited revenue and Flight Profit during the seasonally low quarter, partially offset by increased Flight Profit.
Recent Updates
: Blade Airport, offering service between Manhattan and both John F. Kennedy International Airport and Newark Liberty International Airport, has continued to show sequential improvements, with the fourth quarter setting a record for total revenues and seats flown.
: On January 18, 2023, Blade and RedBird Capital Partners announced that RedBird has increased its ownership in Blade to more than 5 percent, and that RedBird Partner Andrew Lauck will become a board observer.
: On February 14, 2023 Blade announced the completion of a historic test flight of BETA Technologies’ ALIA-250 EVA at the Westchester County Airport in White Plains, New York. The flight marks the first test of a piloted EVA in the greater New York City area and is a significant milestone in the companies’ continued partnership to bring safe, quiet, and sustainable air transportation to commuter and commercial customers.
Melissa Tomkiel
Conference Call
An archived audio webcast discussing the results carried out on Tuesday (March 14th) is available for one year at the Investor Relations section of the company’s website (see link below).
To Study the Results in-Depth Please Click Below
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