Blade Air Mobility Reports Financial Results for the Second Quarter Ended June 30, 2022

·12 min read
  • Second quarter ended June 30, 2022 revenue up 175% versus the prior year period to $35.6 million; six month period ended June 30, 2022 revenue up 180% versus the prior year period to $62.3 million

  • Short Distance revenue up 89% in Q2 2022 versus the prior year period, reflecting strong demand, higher pricing across our route network and the Helijet transaction

  • MediMobility Organ Transport revenue up 36% sequentially in Q2 2022 versus Q1 2022, driven by new clients and robust growth with existing accounts; up 1,013% versus the prior year period, driven by our acquisition of Trinity Air Medical, Inc ("Trinity")

  • Flight Margin improved sequentially to 14.3% in Q2 2022 versus 11.0% in Q1 2022, driven by Helijet's return to profitability and improved utilization across our route network

  • Blade's three Europe acquisitions expected to close in late Summer 2022

NEW YORK, August 09, 2022--(BUSINESS WIRE)--Blade Air Mobility, Inc. (Nasdaq: BLDE, "Blade" or the "Company"), a technology-powered air mobility platform, today announced financial results for the second quarter ended June 30, 2022.

"Blade delivered record revenue and Flight Profit this quarter, with strong growth across all business lines," said Rob Wiesenthal, Blade’s Chief Executive Officer. "We have seen continued strength in our consumer-facing businesses with revenue and average seat prices for both the second quarter and third quarter to-date well ahead of our 2019 and 2021 levels. Given unwavering demand from our fliers coupled with continued strong sequential growth in our MediMobility Organ Transport business, Blade has proven it is well positioned to thrive in this uncertain macroeconomic environment."

"Our strong financial performance is a testament to our success in leveraging the Blade platform across the diverse portfolio of businesses that we have built and acquired since our inception," said Will Heyburn, Blade’s Chief Financial Officer. "By deploying our brand, aircraft operator network, and technology-enabled logistics and customer service, we have significantly accelerated growth, including in our MediMobility Organ Transport business, which experienced 139% pro forma organic growth compared to the prior year period."

"We look forward to closing our acquisitions in Europe, where our roll-up of the commercial activities of three prominent urban air mobility operators will fortify Blade’s leadership in the region," said Melissa Tomkiel, Blade's President. "Our urban air mobility alliance with JetBlue has now been launched, providing preferred pricing and other benefits for seamless air transport between Manhattan and New York area airports for the TrueBlue loyalty program membership base."

Second Quarter Ended June 30, 2022 Financial Highlights

  • Total revenue increased 175% to $35.6 million in the current quarter versus $13.0 million in the prior year period. On a pro forma basis, assuming Blade had owned both Trinity and Helijet International Inc's ("Helijet") scheduled passenger routes in the prior year period, revenue for the second quarter ended June 30, 2022 would have been up 87%

  • Flight Margin of 14.3% improved sequentially versus Q1 2022, as expected, but decreased versus 23.0% in the prior year period, driven primarily by the significant revenue mix shift towards MediMobility Organ Transport and re-launch of Blade Airport service, which remained below breakeven during the ramp-up period this quarter as expected

  • Short Distance revenue increased 89% to $11.0 million in the current quarter versus $5.8 million in the prior year period. Growth was driven by our acquisition of Helijet's passenger routes in Vancouver, the resumption of our Blade Airport service, growth in short distance charter, and higher pricing across our network

  • MediMobility Organ Transport revenue increased 1,013% to $17.2 million in the current quarter versus $1.6 million in the prior year period, driven by Blade's acquisition of Trinity in September 2021. On a pro forma basis, assuming Blade had owned Trinity in the prior year period, revenue growth in MediMobility Organ Transport would have been 139% versus the prior year period, driven by a combination of new hospital clients and continued growth with existing accounts

  • Jet and Other revenue increased 32% to $7.4 million in the current quarter versus $5.6 million in the prior year period driven primarily by an increase in the average price per trip, and stronger demand for our seasonal BladeOne jet service between New York and South Florida

  • Net income increased to $8.4 million in the current quarter versus a net loss of $24.3 million in the prior year period, driven primarily by increased revenue and a favorable change in the fair value of warrant liabilities of $19.3 million (compared to an unfavorable change of $14.9 million and $1.7 million of recapitalization costs attributable to warrant liabilities in the prior year period), partially offset by a $2.3 million increase in General & Administrative costs

  • Adjusted EBITDA decreased to $(6.1) million in the current quarter from $(2.6) million in the prior year period. The decrease versus the prior year period is primarily attributable to additional corporate and recurring expenses related to Blade’s growth and status as a public company, partially offset by increased Flight Profit

Business Highlights and Recent Updates

  • Blade's MediMobility Organ Transport division, which is the largest dedicated air transporter of human organs for transplant in the United States, continues to grow its client base and is now serving a total of 59 transplant centers and organ procurement organizations

  • Blade Airport, offering service between Manhattan and both JFK and Newark Airports, has continued to show sequential improvements, with its current passenger run-rate well ahead of pre-pandemic levels, while the introduction of dynamic pricing has driven further revenue growth. Further capacity expansions and the opening of an exclusive Blade terminal at Newark Airport are expected to drive growth in Q3

  • Blade's partnership with JetBlue launched on June 23, 2022. Under the partnership, JetBlue will purchase four Blade Airport transfers per year for its top-tier Mosaic+ loyalty program members, while all TrueBlue members will receive first-time flier pricing benefits from Blade

  • On May 19, 2022, Blade announced an agreement to acquire the asset-light commercial passenger transport activities of three urban air mobility operators in Europe, which generated an aggregate of approximately €30 million in revenue while servicing approximately 125,000 fliers in 2019, prior to the impact of COVID-19. The transaction is expected to close in late Summer 2022 while Blade has already seen success offering seats during key events, including the Monaco Grand Prix and Cannes Film Festival, on a resale basis prior to close

Conference Call

The Company will conduct a conference call starting at 8:00 a.m. ET on Tuesday, August 9, 2022 to review the results for the second quarter ended June 30, 2022.

Participants may access the call at 1-855-656-0926, international callers may use 1-412-317-5254, and request to join the Blade Urban Air Mobility earnings call. A live webcast will also be available by visiting the Investor Relations section of the Company’s website at https://ir.blade.com/news-events.

A telephonic replay will be available shortly after the conclusion of the call and until August 23, 2022. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671, and enter access code 10169364. An archived replay of the call will also be available on the Investors Relations section of the Company’s website at https://ir.blade.com/.

Use of Non-GAAP Financial Information

Adjusted EBITDA - To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), 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).

Flight Profit and Flight Margin - Blade defines Flight Profit as revenue less cost of revenue. Blade defines Flight Margin for a period as Flight Profit for the period divided by revenue for the same period.

Pro forma revenue - Blade uses pro forma financial information which include revenue from acquisitions as if they had been acquired in the commensurate period of the prior year. Pro forma change in revenue is calculated as the difference between the current reported 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 meaningful comparisons of the current year period to that of prior years.

Blade believes that these non-GAAP measures, viewed in addition to and not in lieu of our reported GAAP results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA, Flight Profit and Pro forma revenue have been reconciled to the nearest GAAP measure in the tables within this press release.

Financial Results

BLADE AIR MOBILITY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2020

2022

2021

2020

Revenue

$

35,633

$

12,951

$

3,438

$

62,263

$

22,224

$

9,892

Operating expenses

Cost of revenue(1)

30,522

9,976

2,814

54,229

17,773

8,686

Software development(1)

1,062

323

273

1,897

612

592

General and administrative(1)

12,144

9,808

1,546

26,122

14,633

4,402

Selling and marketing(1)

1,638

615

281

3,438

1,202

1,036

Total operating expenses

45,366

20,722

4,914

85,686

34,220

14,716

Loss from operations

(9,733

)

(7,771

)

(1,476

)

(23,423

)

(11,996

)

(4,824

)

Other non-operating income (expense)

Change in fair value of warrant liabilities

19,266

(14,913

)

21,816

(14,913

)

Realized loss from sales of short term investments

(1,576

)

(1,712

)

Recapitalization costs attributable to warrant liabilities

(1,742

)

(1,742

)

Interest income, net

455

140

151

719

144

90

Other non-operating income (expense)

18,145

(16,515

)

151

20,823

(16,511

)

90

Net income (loss)

$

8,412

$

(24,286

)

$

(1,325

)

$

(2,600

)

$

(28,507

)

$

(4,734

)

__________
(1) Prior period amounts have been updated to conform to current period presentation.

BLADE AIR MOBILITY, INC.
RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT
(in thousands except percentages, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2020

2022

2021

2020

Revenue

$

35,633

$

12,951

$

3,438

$

62,263

$

22,224

$

9,892

Cost of revenue(1)

30,522

9,976

2,814

54,229

17,773

8,686

Flight Profit

$

5,111

$

2,975

$

624

$

8,034

$

4,451

$

1,206

Flight Margin

14

%

23

%

18

%

13

%

20

%

12

%

__________
(1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees and internal costs incurred in generating ground transportation revenue using the Company's owned cars. Prior period amounts have been updated to conform to current period presentation.

BLADE AIR MOBILITY, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(in thousands, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2020

2022

2021

2020

Net income (loss)

$

8,412

$

(24,286

)

$

(1,325

)

$

(2,600

)

$

(28,507

)

$

(4,734

)

Stock-based compensation

1,844

2,518

90

3,942

4,422

177

Depreciation and amortization

1,155

140

133

2,300

266

264

Interest income, net

(455

)

(140

)

(151

)

(719

)

(144

)

(90

)

Change in fair value of warrant liabilities

(19,266

)

14,913

(21,816

)

14,913

Realized loss from sales of short term investments

1,576

1,712

Recapitalization costs attributable to warrant liabilities

1,742

1,742

Consulting costs related to initial public listing

2,038

2,038

Offering documents expenses

324

324

Recruiting fees related to initial public listing

98

98

M&A transaction costs

451

80

1,424

80

One-time legal and regulatory advocacy fees

164

1,911

Adjusted EBITDA

$

(6,119

)

$

(2,573

)

$

(1,253

)

$

(13,846

)

$

(4,768

)

$

(4,383

)

BLADE AIR MOBILITY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data, unaudited)

June 30,
2022

December 31,
2021

Assets

Current assets:

Cash and cash equivalents

$

186,556

$

2,595

Restricted cash

1,690

630

Accounts receivable

9,672

5,548

Short-term investments (cost: June 30, 2022 - $70,308; December 31, 2021 - $280,263)

69,607

279,374

Prepaid expenses and other current assets

10,700

6,798

Total current assets

278,225

294,945

Non-current assets:

Property and equipment, net

2,304

2,045

Investment in joint venture

200

200

Intangible assets, net

22,743

24,421

Goodwill

13,328

13,328

Operating right-of-use asset

6,003

713

Other non-current assets

1,384

232

Total assets

$

324,187

$

335,884

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and accrued expenses

$

7,648

$

6,369

Deferred revenue

8,500

5,976

Operating lease liability, current

2,364

438

Total current liabilities

18,512

12,783

Non-current liabilities:

Warrant liability

9,492

31,308

Operating lease liability, long-term

3,748

278

Deferred tax liability

144

144

Total liabilities

31,896

44,513

Stockholders' Equity

Preferred stock, $0.0001 par value, 2,000,000 shares authorized at June 30, 2022 and December 31, 2021. No shares issued and outstanding at June 30, 2022 and December 31, 2021.

Common stock, $0.0001 par value; 400,000,000 authorized; 71,397,326 and 70,667,381 shares issued at June 30, 2022 and December 31, 2021, respectively.

7

7

Additional paid in capital

371,690

368,680

Accumulated other comprehensive loss

(388

)

(898

)

Accumulated deficit

(79,018

)

(76,418

)

Total stockholders' equity

292,291

291,371

Total Liabilities and Stockholders' Equity

$

324,187

$

335,884

BLADE AIR MOBILITY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2020

2022

2021

2020

Cash Flows From Operating Activities:

Net income (loss)

$

8,412

$

(24,286

)

$

(1,325

)

$

(2,600

)

$

(28,507

)

$

(4,734

)

Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:

Depreciation and amortization

1,155

140

133

2,300

266

264

Stock-based compensation

1,844

2,518

90

3,942

4,422

177

Change in fair value of warrant liabilities

(19,266

)

14,913

(21,816

)

14,913

Realized loss from sales of short term investments

1,576

1,712

Unrealized foreign exchange gain / losses

(5

)

Recapitalization costs attributable to warrant liabilities

1,742

1,742

Loss on disposal of property and equipment

65

65

...