Blade(BLDE) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Blade Air Mobility reported a significant revenue growth of 22.1% in Q4 2024 compared to the prior year, excluding Canada, which was exited in 2024 [9] - The company achieved its first full year of adjusted EBITDA profitability with a year-over-year improvement of $17.8 million in adjusted EBITDA for 2024 [8] - Q4 flight profit increased by 40% year-over-year, and adjusted EBITDA rose by $4.9 million year-over-year [9] Business Line Data and Key Metrics Changes - In the passenger segment, adjusted EBITDA margin expanded by over 16 percentage points year-over-year, approaching break-even [23] - Medical revenue rose 13.7% year-over-year to $36.4 million, driven by trip volume despite a reduction in block hours per trip [24] - The medical segment adjusted EBITDA margin improved by over 700 basis points year-over-year to 15.1% in Q4 2024 [26] Market Data and Key Metrics Changes - The company noted a 119.6% year-over-year improvement in medical segment adjusted EBITDA in Q4 2024 [12] - The passenger segment saw significant profitability improvements driven by growth in New York Airport, leisure, and other US short-distance services [22] 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 experienced 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 potential in this area [10][56] - A strategic partnership with Skyports Infrastructure was announced to enhance ground infrastructure for advanced air mobility [14] 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 the owned fleet [40] - Management highlighted the importance of maintaining cost efficiencies while pursuing growth opportunities in both passenger and medical segments [51][41] Other Important Information - Blade ended 2024 with $127 million in cash and short-term investments, positioning the company well for strategic investments [20] - The company is focused on optimizing its aircraft fleet and plans to add a low single-digit number of similarly priced aircraft over the next year or two [29] Q&A Session Summary Question: What catalysts will drive growth in the two businesses? - Management indicated that continued savings in SG&A and onboarding new customers in the medical segment will drive growth [50][52] Question: What is the timing for eVTOL deployment? - Management anticipates eVTOL aircraft may be seen in the Middle East by early 2026 and in the US by late 2027 or early 2028 [56] Question: How has the European restructuring impacted profitability? - The company reported significant cost reductions in Europe, contributing to improved profitability [73] Question: What is the long-term outlook for the New York business? - Management believes that existing infrastructure and market share will provide a competitive advantage in New York, despite potential competition [92][93] Question: How should maintenance be modeled going forward? - Scheduled maintenance is expected to be elevated in the first half of 2025, impacting aircraft utilization and margins [100][101]