Blade Air Mobility's Strong Q2 Financial Results

Blade Air Mobility Reports Financial Results for the Second Quarter Ended June 30, 2023


• Second quarter ended June 30, 2023 revenue up 71% versus the prior year to $61.0 million
• Medical revenue of $34.4 million in Q2 2023 up 99% versus the prior year period, up 29% sequentially versus Q1 2023
• Short Distance revenue up 75% in Q2 2023 versus the prior year period, reflecting our acquisition of Blade Europe, robust demand and pricing growth in Blade Airport, and continued growth in the Northeastern United States
• Flight Profit(1) increased 103% in Q2 2023 versus the prior year period to $10.4 million
NEW YORK, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Blade Air Mobility, Inc. (Nasdaq: BLDE, "Blade" or the "Company"), today announced financial results for the second quarter ended June 30, 2023.
GAAP QUARTERLY FINANCIAL RESULTS
(in thousands except percentages, unaudited)

Three Months Ended June 30,
2023 2022 % Change
Revenue $ 60,989 $ 35,633 71.2 %
Cost of revenue 50,620 30,522 65.8 %
Software development 1,440 1,062 35.6 %
General and administrative 18,410 12,144 51.6 %
Selling and marketing 2,728 1,638 66.5 %
Total Operating Expenses 73,198 45,366 61.3 %
Loss from operations (12,209 ) (9,733 ) 25.4 %
Net (loss) income $ (12,232 ) $ 8,412 NM*

Passenger net (loss) income $ (3,837 ) $ (2,326 ) 65.0 %
Medical net (loss) income $ (497 ) $ 694 NM*
Unallocated corporate expenses and software development $ (7,875 ) $ (8,101 ) (2.8 )%
*Percentage not meaningful

NON-GAAP(1) QUARTERLY FINANCIAL RESULTS
(in thousands except percentages, unaudited)

Three Months Ended June 30,
2023 2022 Change
GAAP Revenue $ 60,989 $ 35,633 71.2 %
GAAP Cost of revenue 50,620 30,522 65.8 %
Flight Profit 10,369 5,111 102.9 %
Flight Margin 17.0 % 14.3 % +266bps
Adjusted Corporate Expense 14,817 11,230 31.9 %
Adjusted Corporate Expense as a percentage of Revenue 24.3 % 31.5 % -720bps
Adjusted EBITDA $ (4,448 ) $ (6,119 ) (27.3 )%
Adjusted EBITDA as a percentage of Revenue (7.3 )% (17.2 )% +990bps

Passenger Adjusted EBITDA $ (2,075 ) $ (1,085 ) 91.2 %
Medical Adjusted EBITDA $ 3,023 $ 1,113 171.6 %
Adjusted unallocated corporate expenses and software development $ (5,396 ) $ (6,147 ) (12.2 )%

"Blade's record performance this quarter illustrates the value proposition of our diversified business model," said Rob Wiesenthal, Blade's Chief Executive Officer. "In MediMobility Organ Transport, we continue to benefit from new organ preservation technologies that are expanding the market, as well as the addition of a number of new transplant center and organ procurement organizations. In our Passenger business, we saw strong volume and pricing growth in the Northeast, particularly for our 5-minute helicopter transfers between Manhattan and New York area airports."
"Blade delivered significant year over year improvement in Adjusted EBITDA this quarter, driven by 172% growth in Medical Segment Adjusted EBITDA and cost savings across our corporate platform," said Will Heyburn, Blade's Chief Financial Officer. "Our cost efficiency program is showing meaningful results with Adjusted Unallocated Corporate Expenses, which relate to the overall Blade shared services platform, decreasing 12% in Q2 2023 versus the prior year period, despite our significant 71% revenue growth. We expect that continued growth and cost efficiencies will lead to further year over year improvement in Adjusted EBITDA in the second half of the year."
"The FAA's blueprint for air mobility, released in July, outlines a gradual transition to Electric Vertical Aircraft, or EVA, utilizing existing air traffic control systems and infrastructure. This approach validates Blade's unique strategy, focused on our exclusive Blade terminals at existing heliports and airports in the most active air mobility corridors operating around the world today," stated Melissa Tomkiel, Blade's President. "As a result, Blade is best positioned to enable the gradual transition of today's air mobility fliers from helicopters to EVA, which we expect to expand the addressable market for our Passenger segment through lower cost, emission-free, and near-silent flight."
Second Quarter Ended June 30, 2023 Financial Highlights
 Total revenue increased 71.2% to $61.0 million in the current quarter versus $35.6 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 second quarter ended June 30, 2023 would have increased approximately 42.3%(1) on a constant currency basis.
 Flight Profit(1) increased 102.9% to $10.4 million in the current quarter versus $5.1 million in the prior year period, driven by strong growth in our MediMobility Organ Transport business, the contribution from our Blade Europe acquisitions, and improved growth and profitability across our US Short Distance business.
 Flight Margin(1) improved to 17.0% in the current quarter from 14.3% in the prior year period, driven by increased use of dedicated aircraft in our MediMobility Organ Transport business line, which results in lower costs, the acquisition of Blade Europe, which operates at a higher average Flight Profit versus our corporate average, improved pricing and utilization in our New 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 75.0% to $19.2 million in the current quarter versus $11.0 million in the prior year period. Growth was driven by our acquisition of Blade Europe, strong volume and pricing growth in our Blade Airport service, and growth across our US Short Distance business lines. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, Short Distance revenue for the second quarter ended June 30, 2023 would have increased approximately 5.3%(1) on a constant currency basis.
 MediMobility Organ Transport revenue increased 99.4% to $34.4 million in the current quarter versus $17.2 million in the prior year period, driven by the addition of new transplant center customers, continued growth with existing customers, and strong market demand. Revenue increased 28.5% sequentially in Q2 2023 versus Q1 2023. MediMobility Organ Transport growth was entirely organic given Blade's acquisition of Trinity Air Medical closed in September 2021.
 Jet and Other revenue decreased (0.2)% to $7.4 million in the current quarter versus $7.4 million in the prior year period, as an increase in jet charter volume was offset by a decline in the average price per jet charter trip.
 Net loss was $12.2 million in the quarter versus a net income of $8.4 million in the prior year period, driven primarily by an unfavorable change in the fair value of warrant liabilities of $(2.5) million (compared to a favorable change of $19.3 million in the prior year period).
 Adjusted EBITDA(1) loss improved to $(4.4) million in the current quarter versus $(6.1) million in the prior year period, and improved as a percentage of revenues to (7.3)% in the current quarter from (17.2)% in the prior year period. The improvement was driven by a 172% increase in Medical Segment Adjusted EBITDA to $3.0 million in the current quarter, coupled with a $0.8 million improvement in Unallocated Corporate Expenses and Software Development to $(5.4) million, partially offset by a $1.0 million decline in Passenger Segment Adjusted EBITDA to $(2.1) million, resulting from higher integration and operating expenses related to our acquisition of Blade Europe.
Business Highlights and Recent Updates
 In April 2023, Blade provided logistics and coordination support for a record-breaking heart transplant mission. In collaboration with Massachusetts General Hospital and Paragonix Technologies, Inc., Blade facilitated the transport of a donor heart and transplant team members 2,506 nautical miles from Juneau, Alaska, to Boston, Massachusetts, setting a record for the longest distance a donor heart has ever traveled for a transplant surgery.
 In May 2023, Blade announced an agreement to revitalize and operate the Newport Helistop (91NJ), located in Newport, Jersey City, New Jersey, one of the largest and most successful mixed-use communities on the Hudson River waterfront. Blade has begun a pilot program for charter flights and is analyzing the viability of limited by-the-seat service between the Helistop and local New York City area airports and heliports.
 In June 2023, Blade and Eve Air Mobility (“Eve”) announced at the 54th International Paris Air Show a significant extension of their long-standing partnership through a memorandum of understanding. The collaboration aims to transform air transportation in Europe, starting with France, by laying the foundation to integrate Eve’s state-of-the-art electric vertical aircraft into Blade’s European route network, subject to receipt of necessary regulatory approvals and certification.