Yahoo Finance Blade Air Mobility Inc (BLDE) Q1 2024 Earnings Call Transcript Highlights: Soaring Revenues and ...
Total Revenue: Increased 13.8% year-over-year to $51.5 million.
Medical Revenue: Rose 34.6% year-over-year to $36 million.
Flight Profit: Increased by 41.5% year-over-year.
Flight Margins: Rose to 19.7% in Q1 2024 from 15.8% in the previous year.
Medical Segment Adjusted EBITDA: Increased 134.5% year-over-year to $4.4 million.
Adjusted EBITDA: Improved by $4.2 million in Q1 2024 compared to the previous year.
Passenger Segment Adjusted EBITDA: Improved by $0.4 million year-over-year.
Adjusted Unallocated Corporate Expenses: Declined 19% year-over-year.
Cash from Operations: Usage of $15.6 million in the quarter.
Capital Expenditures: $1.1 million, primarily for leasehold improvements and software development.
Cash and Short-term Investments: Ended the quarter with $151 million.
Release Date: May 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Blade Air Mobility Inc reported a strong start to 2024 with the best quarter in company history for its medical business, achieving record revenue and segment adjusted EBITDA.
Total revenue for Q1 2024 increased by 13.8% year-over-year to $51.5 million, with a notable 21.5% increase when excluding the impact of the discontinued BladeOne service.
Significant improvements in profitability across the business, driven by initiatives such as shifting to dedicated aircraft and vehicles in the medical business and cost rationalization programs.
Medical revenue grew by 34.6% year-over-year in Q1 2024, with medical segment adjusted EBITDA increasing by 134.5% from the previous year.
Blade Air Mobility Inc closed on seven of the eight jet aircraft acquisitions announced last quarter, enhancing service delivery and reducing costs.
Negative Points
Despite overall revenue growth, the passenger business experienced inconsistent year-over-year revenue comparisons due to factors like poor flying weather in Europe and lower passenger volume in Canada.
The discontinuation of BladeOne, a scheduled jet service, although reducing losses, created a revenue headwind that will continue to impact comparisons until Q2 2024.
Operational challenges such as weather-related cancellations in Europe significantly impacted the revenue from European ski routes.
A 5.9% decrease in short distance passenger revenue year-over-year, primarily driven by external factors affecting flight schedules and passenger volumes.
Cash from operations showed a $15.6 million usage in the quarter, influenced by increases in accounts receivable and reductions in accounts payable and accrued expenses.
Q & A Highlights
Q: Can Blade Air Mobility continue to grow faster than the industry next year, or will it start to look more like the industry? A: William Heyburn, Chief Financial Officer, believes Blade can continue to outpace market growth in medical mobility due to multiple revenue streams per trip, including the growth in ground business and the introduction of the TOPS service. The incremental organ is often coming from farther away, providing a multiplier effect on growth for Blade.
Q: What are the dynamics around the passenger segment's weaker than expected gross margin? A: CEO Robert Wiesenthal explained that Q1 is historically the lightest quarter, which can introduce noise in the numbers. He highlighted that despite poor weather affecting flights in Europe, the bookings versus revenue metric showed a stronger picture. The U.S. side saw solid improvement, and overall, they remain confident in the passenger segment's performance.
Q: What are the thoughts on the quantity and timing of the stock buyback program? A: CEO Robert Wiesenthal stated that while no stock has been purchased yet, the buyback program provides a tool for enhancing shareholder value when there's a major disconnect between trading and intrinsic value. The company will evaluate this option against organic growth investments and accretive acquisitions.
Q: How is the competition affecting Blade's medical mobility segment, particularly in terms of customer shifts or contract changes? A: CEO Robert Wiesenthal noted positive momentum with new customer acquisition and growth within existing customers. The company continues to see its customers getting more aggressive in organ procurement distances, benefiting from new preservation technologies.
Q: How should we expect the passenger business's pricing trends to evolve throughout the year? A: CEO Robert Wiesenthal indicated that seasonality would remain consistent, with pricing benefits continuing as they have been able to increase prices on mature routes. They are also passing through expenses like credit card fees on more expensive charter products.
Q: What are the expected impacts of owning aircraft on depreciation and operational costs? A: CFO William Heyburn explained that while depreciation will create some expenses, the focus is on the free cash flow benefits, which are expected to improve by 5-10 points on a margin basis for owned aircraft compared to leased ones. This shift is expected to result in overall cost savings on a per-hour basis for medical customer services.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
