Blade(BLDE)2025-03-13 23:10Financial Data and Key Metrics Changes - Blade Air Mobility achieved its first full year of adjusted EBITDA profitability with a 127 million in cash and short-term investments at the end of 2024, with no debt [20][29] Business Line Data and Key Metrics Changes - Passenger segment adjusted EBITDA margin expanded by over 16 percentage points year-over-year, approaching break-even, driven by a 630 basis point improvement in flight margin and an 18% reduction in adjusted SG&A [23] - Medical revenue rose 13.7% year-over-year to 3.6 million of adjusted EBITDA for the full year 2024, an increase of $8.6 million versus the prior year [11] Market Data and Key Metrics Changes - The company noted a 2% sequential decline in heart, liver, and lung transplant volumes in Q4 2024 compared to Q3 2024, which was less than anticipated [25] - Early results from European restructuring showed strong year-over-year revenue growth and profitability improvement during the winter ski season [14] Company Strategy and Development Direction - Blade is focused on maximizing growth in Urban Air Mobility, particularly through its New York City airport transfer service, which saw high teens year-over-year revenue expansion in Q4 [10] - The company is transitioning to electric vertical aircraft (eVTOL) and is optimistic about the future growth opportunities in the organ transplant logistics market [10][41] - A strategic partnership with Skyports Infrastructure aims to enhance ground infrastructure for advanced air mobility, supporting the transition to eVTOL [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the medical segment's growth, anticipating double-digit revenue growth in 2025 despite some uncertainty due to recent transplant volume trends [32][41] - The company expects to generate positive free cash flow before aircraft acquisitions, although cash flow will be impacted by elevated maintenance spending on owned aircraft [40] Other Important Information - Blade introduced a new mobile app to enhance user experience, offering features like easy flight booking and trip management [16] - The company is preparing for the launch of two new transplant centers in April, which will contribute to revenue growth [18] Q&A Session Summary Question: What catalysts will drive growth in the two businesses? - Management highlighted continued savings in SG&A and the onboarding of new customers in the medical segment as key growth drivers [50][52] Question: When can eVTOLs be expected? - Management anticipates eVTOLs may be operational in the Middle East by early 2026 and in the US by late 2027 or early 2028 [56][57] Question: How is the European market performing? - Management reported significant cost reductions and positive revenue growth in Europe, particularly during the ski season [73][75] Question: What is the strategy regarding passenger margins? - The company is optimizing its schedule and pricing strategy to enhance profitability rather than simply increasing seat count [82][86] Question: How will maintenance impact the Medical segment? - Management indicated that elevated maintenance in the first half of 2025 is due to time-based requirements and will affect operating leverage [100][102]