Blade Air Mobility Inc
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
SRTA$5.56+5.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001779128-24-000097
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001779128-24-000126
Item 2. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 205 previous paragraphs and 207 current paragraphs.
140 unchanged; 47 reworded; 19 added; 17 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
The Activity in Canada ended on August 31, 2024. As a result, the three- and nine-month periods ending September 30, 2024, and 2023 included two and eight months, and three and nine months, respectively, of Seats Flown activity in Canada.
Current report
Short Distance revenue increased by $2.0 million or 6%, from $30.4 million in 2023 to $32.4 million in 2024. Growth in Short Distance was primarily driven by growth in our Hamptons seasonal service for a $2.3 million increase, and increased volumes of Northeast helicopter charters for a $0.8 million increase. This was partially offset by the August 31, 2024 termination of our Canada routes for a $0.8 million decrease, and lower activity in Europe for a $0.4 million decrease.
Current report
Jet and Other revenue decreased by $1.1 million or (15)% from $7.6 million in 2023 to $6.5 million in 2024. The decline was driven by a decrease in jet charters of $1.4 million, partially offset by the introduction of the new seasonal Hamptons Streamliner Bus for a $0.3 million increase.
Current report
MediMobility Organ Transport revenue increased by $2.6 million or 8% from $33.4 million in 2023 to $36.1 million in 2024. Growth in MediMobility Organ Transport was driven primarily by growth in ground revenue for $1.8 million and $0.4 million for TOPS (TOPS was launched at the end of 2023), the remainder was due to new clients.
Current report
For the nine months ended September 30, 2024 and 2023, revenue increased by $16.6 million or 9%, from $177.7 million in 2023 to $194.3 million in 2024.
Current report
Jet and Other revenue decreased by $(2.3) million or (10)% from $23.1 million in 2023 to $20.8 million in 2024. $3.9 million decrease is attributable to the discontinuation of our seasonal by-the-seat jet service between New York and South Florida. This decrease was partially offset by a $0.9 million growth in jet charters, and higher brand partnership revenues and revenue from the introduction of the new seasonal Hamptons Streamliner Bus in the current year period.
Current report
For the three months ended September 30, 2024 and 2023, cost of revenue decreased by $(0.8) million, or (1)% from $55.9 million during 2023 to $55.0 million in 2024, driven by lower effective cost of revenue per flight (explained in the following paragraph), only partially offset by the higher volumes.
Current report
Cost of revenue as a percentage of revenues decreased by 4 percentage points from 78% in 2023 to 74% in 2024. This change is attributable primarily to mix-shift to dedicated aircraft which operate at enhanced economies of scale in the Medical segment, higher revenue per flight hour in the Medical segment and improved pricing along with improved load factor in our New York airport transfer and Hamptons by-the-seat products, as well as lower cost of revenue in Canada of $1.5 million impact (Canada operated at a loss in the prior year period with cost of revenue higher than revenue) due to our exit from the Canadian market on August 31, 2024.
Current report
For the three months ended September 30, 2024 and 2023, software development costs decreased by $(0.3) million, or (26)%, from $1.1 million during 2023 to $0.8 million in 2024, primarily due to software capitalization of development costs due to more development initiatives in the 2024 period.
Current report
The primary drivers for the increase were a $2.1 million increase in stock-based compensation largely due to the PSUs granted in the first quarter of the current year period; a $0.8 million increase in expenses related to the owned aircraft (acquired in the second quarter of 2024 and did not exist in the prior year period) as pilot training, hangar costs and insurance; a $0.7 million increase in staff costs mostly attributable to the growth in our Medical segment; a $0.5 million charge for restructuring costs in Europe; and a $0.5 million increase in professional fees. These increases were partially offset by a $2.7 million decrease attributable to a contingent consideration compensation (earn-out) in the prior year period; and a $1.1 million decrease in intangibles amortization costs.
Current report
For the nine months ended September 30, 2023, total other non-operating income consisted of: (i) $6.2 million interest income, attributable to our short-term investments and our money market funds; and (ii) $3.8 million non-cash gain due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Current report
Passenger Adjusted EBITDA improved by $2.8 million or 101% for the three months ended September 30, 2024 from $2.8 million in the same period of 2023 to $5.6 million in 2024. The improvement is primarily attributable: to a $2.2 million impact from lower effective cost of revenue per flight in our New York airport transfer and Hamptons products (attributable to improved pricing and load factor in the by-the-seat products) and in Europe; and a $0.7 million improvement in Canada, which moved from a negative to a positive revenue less cost of revenue in the current year period compared to the prior year period (attributable to improved load factor and our exit from the Canadian market on August 31, 2024).
Current report
Passenger Adjusted EBITDA improved by $6.1 million for the nine months ended September 30, 2024 from $(2.4) million in the same period of 2023 to $3.7 million in 2024. The improvement is primarily attributable to higher revenue combined with lower effective cost of revenue per flight across all of Passenger flights (short distance and jet flights) compared to the prior year period for a $4.9 million impact, attributable to improved pricing and improved load factor. Further improvements are attributable to a
Current report
$1.1 million decrease in marketing expenses and a $0.4 million decrease in personnel costs. These improvements were partially offset by a $0.4 million increase in staff costs.
Current report
Flight Profit increased by $4.3 million or 27% for the three months ended September 30, 2024 from $15.6 million in the same period of 2023 to $19.8 million in 2024. The increase was driven by a 5% increase in revenue coupled with lower effective cost of revenue per flight for both Passenger and Medical flights. In Passenger the lower effective cost of revenue per flight is attributable to improved pricing along with improved load factor in our US Short Distance flights, and a $0.7 million improvement in Canada (which operated at a negative Flight Profit in the prior year period). The lower effective cost of revenue per flight in Medical flights is attributable to higher revenue per flight hour and mix-shift to dedicated aircraft operating at enhanced economies of scale.
Current report
Flight Profit increased by $13.2 million or 40% for the nine months ended September 30, 2024 from $33.1 million in the same period of 2023 to $46.3 million in 2024. The increase was driven by a 9% increase in revenue coupled with lower effective cost of revenue per flight across all of Passenger product lines (Short Distance and jet flights) compared to the prior year period attributable to improved pricing and improved load factor (in the by-the-seat products). In addition lower effective cost of revenue in Medical due to higher revenue per flight hour, mix-shift to dedicated aircraft and mix shift to ground revenue (which is characterized with lower effective cost of revenue).
Current report
(4) Includes severance, retention, legal and other one-time restructuring costs associated with a reorganization of Blade Europe.
Current report
(2) Depreciation and amortization included within general and administrative expenses.
Current report
Cash (Used In) / Provided by Investing Activities
Removed paragraphs (17)
Previous report
For the three months ended June 30, 2024 and 2023, revenue increased by $7.0 million or 11%, from $61.0 million in 2023 to $67.9 million in 2024.
Previous report
Jet and Other revenue increased by $1.3 million or 17% from $7.4 million in 2023 to $8.7 million in 2024. Growth in Jet and Other was driven by growth in jet charters of $2.1 million and increased brand partnership revenues of $0.1 million, partially offset by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida, resulting in a $1.0 million decrease.
Previous report
MediMobility Organ Transport revenue increased by $3.9 million or 11% from $34.4 million in 2023 to $38.3 million in 2024. Growth in MediMobility Organ Transport was driven primarily by higher revenue per trip, resulting in a $1.9 million increase, an increase in ground revenue for $1.6 million (from both existing and new clients), the addition of new hospital clients, including for our TOPS organ placement services, resulting in a $0.6 million increase. This was partially offset by lower activity from existing clients, primarily the loss of one customer we supported temporarily during the 2023 period, resulting in a $0.2 million decrease, net of volume increases across the customers we maintained in both periods. Excluding the impact of one temporary customer we supported only in the 2023 period, revenue would have grown 19% versus the 2023 period driven by growth in flight hours and average price per trip across our existing customer base.
Previous report
For the six months ended June 30, 2024 and 2023, revenue increased by $13.2 million or 12%, from $106.3 million in 2023 to $119.5 million in 2024.
Previous report
Short Distance revenue increased by $1.1 million or 4% from $29.6 million in 2023 to $30.7 million in 2024. Growth in Short Distance was primarily driven by growth in our New York airport transfer products, including annual pass activity, for a $0.9 million increase, as well as greater activity from Europe for a $0.2 million increase.
Previous report
Jet and Other revenue decreased by $(1.1) million or (7)% from $15.5 million in 2023 to $14.4 million in 2024. The decline in Jet and Other was driven by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida, resulting in a $3.9 million decrease. This was offset by growth in Jet charters of $2.3 million and increased brand partnership revenues of $0.3 million.
Previous report
Cost of revenue as a percentage of revenues decreased by 6 percentage points from 83% in 2023 to 78% in 2024, attributable primarily to the use of owned aircraft starting April 2024 for our Medical business, increased use of dedicated aircraft in the Medical business (which typically have lower costs per flight hour and enhanced economies of scale) and increased revenue per flight hour in our Medical business, improved pricing and utilization in our New York airport transfer product, and higher profitability in jet charter flights compared to the same period last year. These improvements were partially offset by higher cost of revenue as a percent of revenue in Europe compared to the same period last year.
Previous report
For the six months ended June 30, 2024 and 2023, software development costs decreased by $(0.9) million, or (36)%, from $2.6 million during 2023 to $1.6 million during 2024, attributable primarily to software capitalization of development costs (net of amortization) for a $0.6 million decrease, a decrease of $0.4 million in stock-based compensation costs (due to forfeiture RSUs in the current year period). This was partially offset by an an increase in software tools directly linked with the app for a $0.2 million increase.
Previous report
For the six months ended June 30, 2023, total other non-operating income consisted of: (i) $4.0 million interest income, attributable to our short-term investments and our money market funds in the current year period; and (ii) $1.9 million non-cash loss due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Previous report
Passenger Adjusted EBITDA improved by $2.9 million for the three months ended June 30, 2024 from $(2.1) million in the same period of 2023 to $0.8 million in 2024. The improvement is primarily attributable to a lower effective cost of revenue per flight attributable to improved efficiencies and pricing, primarily for Blade Airport, Europe and Jet Charter, compared to the prior year period for a $2.7 million impact. Further improvements are attributable to a $0.1 million decrease in marketing expenses and a $0.1 million decrease in personnel costs.
Previous report
Passenger Adjusted EBITDA improved by $3.3 million or 64% for the six months ended June 30, 2024 from $(5.1) million in the same period of 2023 to $(1.9) million in 2024. The improvement is primarily attributable to a lower effective cost of revenue per flight attributable to improved efficiencies, primarily for Blade Airport and Jet Charter, compared to the prior year period for a $2.0 million impact. Further improvements are attributable to a $1.1 million decrease in marketing expenses and a $0.3 million decrease in personnel costs.
Previous report
(2) Percentage not meaningful.
Previous report
Flight Profit increased by $6.0 million or 58% for the three months ended June 30, 2024 from $10.4 million in the same period of 2023 to $16.4 million in 2024. The increase was driven by an 11% increase in revenue coupled with lower effective cost of revenue per flight for both Passenger flights (attributable to improved pricing and efficiencies in our New York airport transfer product and jet charter) and Medical flights (attributable to utilizing owned aircraft since April 2024 and higher utilization of dedicated aircraft).
Previous report
Flight Profit increased by $9.0 million or 51% for the six months ended June 30, 2024 from $17.5 million in the same period of 2023 to $26.5 million in 2024. The increase was driven by (i) higher volumes of Medical air and ground missions, from new and existing clients; (ii) increased average air trip distance for Medical flights; and (iii) a lower effective cost of revenue per flight for Medical flights, due to higher utilization of dedicated aircraft, which typically have lower cost per flight hour; and (iv) improved pricing and efficiencies in our New York airport transfer product and jet charter compared to the prior year period. This was partially offset by higher effective flight cost per hour in Europe due to difficult weather, which drove high cancellation rates compared to the prior year period, and lower load factor in Canada’s by-the-seat flights compared to the prior year period.
Previous report
Flight Margin increased from 16.5% in the six months ended June 30, 2024 to 22.2% in the same period of 2023, primarily attributable to increased use of owned jets and dedicated aircraft (which are more cost efficient) for Medical flights and higher revenue per Medical flight hour as well as improved pricing and efficiencies in our New York airport transfer product and jet charter compared to the prior year period. This was partially offset by higher effective cost of revenue per flight in Europe due to difficult weather (which drove higher cancellation rates) and lower load factor in Canada’s by-the-seat flights.
Previous report
The company has a commitment to purchase an eighth aircraft with a purchase price of $3.4 million. This purchase is expected to close by the end of the Company’s third quarter of 2024.
Previous report
Cash Provided by Investing Activities
Reworded paragraphs (47)
Previous wording
•MediMobility Organ Transport– Consisting primarily of transportation of human organs for transplant and/or the medical teams supporting these services. Blade also offers additional services including donor logistics coordination and support evaluating potential donor organs.
Current wording
•MediMobility Organ Transport– Consisting primarily of transportation of human organs for transplant and/or the medical teams supporting these services. Blade also offers additional services including donor logistics coordination and support evaluating potential donor organs through Trinity Organ Placement Services (“TOPS”), launched at the end of 2023.
Previous wording
Our MediMobility Organ Transport product line primarily serves transplant centers, organ procurement organizations and hospitals. Transportation for the hearts, lungs and livers that make up the vast majority of this product line is typically requested only hours before the required departure time. Our ability to successfully fulfill these requests with consistent pricing on the requested aircraft type, be it jet, turboprop or helicopter, is the primary metric by which Medical Customers evaluate our performance.
Current wording
Our MediMobility Organ Transport product line primarily serves transplant centers, organ procurement organizations and hospitals (collectively, “Medical Customers”). Transportation for the hearts, lungs and livers that make up the vast majority of this product line is typically requested only hours before the required departure time. Our ability to successfully fulfill these requests with consistent pricing on the requested aircraft type, be it jet, turboprop or helicopter, is the primary metric by which Medical Customers evaluate our performance.
Previous wording
We utilize the same aircraft and aircraft operators in the Jet and Other business line of our Passenger segment. Historically, the combination of our Passenger and MediMobility Organ Transport demand, has been enough to incentivize operators to provide dedicated aircraft and crews for our use. However, there is no guarantee that we will continue to be able to secure dedicated aircraft at favorable rates, particularly given significant increases in demand for private jet aircraft in the United States in recent years. Periods of increased demand for private jets have historically led to increased charter costs and more limited availability in the spot jet charter market. Although this has not limited our ability to maintain or increase our access to dedicated jet aircraft at fixed prices in recent periods, jet charter, which makes up the majority of our Jet and Other business line, is highly competitive and volumes and pricing have historically been significantly influenced by overall market supply and demand.
Current wording
We utilize the same aircraft and aircraft operators in the Jet and Other product line of our Passenger segment. Historically, the combination of our Passenger and MediMobility Organ Transport demand, has been enough to incentivize operators to provide dedicated aircraft and crews for our use. However, there is no guarantee that we will continue to be able to secure dedicated aircraft at favorable rates, particularly given significant increases in demand for private jet aircraft in the United States in recent years. Periods of increased demand for private jets have historically led to increased charter costs and more limited availability in the spot jet charter market. Although this has not limited our ability to maintain or increase our access to dedicated jet aircraft at fixed prices in recent periods, jet charter, which makes up the majority of our Jet and Other product line, is highly competitive and volumes and pricing have historically been significantly influenced by overall market supply and demand.
Previous wording
We generally pay a fixed hourly rate to our third-party operators, based on flight hours flown. These rates are susceptible to inflation and are typically renegotiated on a yearly basis, though some multi-year contracts have fixed rate increases. Some contracts with operators allow for pass-through of fuel price increases above a set threshold. For our owned aircraft, we will be more directly exposed to inflation of aircraft operating expenses, including pilot salaries, fuel, insurance, parts and maintenance.
Current wording
We generally pay a fixed hourly rate to our third-party operators, based on flight hours flown. These rates are susceptible to inflation and are typically renegotiated on a yearly basis, though some multi-year contracts have fixed rate increases. Some contracts with operators allow for pass-through of fuel price increases above a set threshold. For our owned aircraft, we are more directly exposed to inflation of aircraft operating expenses, including pilot salaries, fuel, insurance, parts and maintenance.
Previous wording
Historically, we have experienced significant seasonality in our Short Distance product line with flight volume peaking during the quarters ended June 30 (Q2) and September 30 (Q3) of each fiscal year due to the busy summer travel season, with lower volume during the quarters ended March 31 (Q1) and December 31 (Q4).
Current wording
Historically, we have experienced significant seasonality in our Short Distance product line with flight volume peaking during the quarters ended June 30 (Q2) and September 30 (Q3) of each fiscal year due to the busy summer travel season, with lower volume during the first and fourth quarter (Q1 and Q4).
Previous wording
Historically, seasonality in our MediMobility Organ Transport business has not been significant.
Current wording
Historically, seasonality in our MediMobility Organ Transport product line has not been significant, though our trip volumes are correlated with the overall supply of donor hearts, livers and lungs in the United States, which can be volatile due to a variety of factors.
Previous wording
General and administrative expenses principally include staff costs including stock-based compensation, depreciation and amortization, impairment of intangible assets, directors and officers insurance costs, professional fees, credit card processing fees and establishment costs. Depreciation of revenue-generating assets such as aircraft and vehicles are included in Cost of revenue.
Current wording
General and administrative expenses principally include staff costs including stock-based compensation, depreciation and amortization, impairment of intangible assets, directors and officers insurance costs, pilot training costs for owned aircraft, professional fees, credit card processing fees and establishment costs. Depreciation of revenue-generating assets such as aircraft and vehicles are included in Cost of revenue.
Previous wording
For the six months ended June 30, 2024 and 2023, cost of revenue increased by $4.2 million or 5%, from $88.7 million during 2023 to $93.0 million during 2024 driven by increased flight volume.
Current wording
For the three months ended September 30, 2024 and 2023, revenue increased by $3.4 million or 5%, from $71.4 million in 2023 to $74.9 million in 2024.
Previous wording
Short Distance revenue increased by $1.7 million or 9%, from $19.2 million in 2023 to $20.9 million in 2024. Growth in Short Distance was primarily driven by the greater activity of Europe for a $0.9 million increase and growth in our New York airport transfer products, including annual pass activity, fora $0.6 million increase.
Current wording
Short Distance revenue increased by $3.1 million or 5% from $60.0 million in 2023 to $63.1 million in 2024. Growth in Short Distance was primarily driven by growth in our Hamptons seasonal service for a $2.2 million increase, growth in our New York airport transfer products, including annual pass activity, for a $1.0 million increase, and increased volumes of Northeast helicopter charters for a $1.0 million increase. This was partially offset by lower activity and the termination of our Canada routes for a $1.1 million decrease.
Previous wording
MediMobility Organ Transport revenue increased by $13.2 million or 22% from $61.2 million in 2023 to $74.4 million in 2024. The growth was driven primarily by the addition of new hospital clients, including for our TOPS organ placement services, resulting in a $4.8 million increase, higher activity from existing clients, resulting in a $1.9 million increase, higher revenue per trip, resulting in a $2.8 million increase, and an increase in ground revenue for $3.2 million (from both existing and new clients). Excluding the impact of one temporary customer we supported only in the 2023 period, revenue would have grown 30% versus the 2023 period driven by growth in flight hours and average price per trip across our existing customer base.
Current wording
MediMobility Organ Transport revenue increased by $15.8 million or 17% from $94.6 million in 2023 to $110.4 million in 2024. The growth was driven primarily by: $6.6 million attributable to the addition of new hospital clients including of TOPS; higher revenue from existing clients of $13.5 million (higher volumes, higher revenue per trip and higher ground revenue). Those increases were partially offset by a $4.3 million decrease due to one temporary customer we supported only in the 2023 period. Excluding the impact of the temporary customer, revenue would have grown 22% versus the 2023 period.
Previous wording
For the three months ended June 30, 2024 and 2023, cost of revenue increased by $1.0 million, or 2%, from $50.6 million during 2023 to $51.6 million in 2024 driven by increased flight volume.
Current wording
For the nine months ended September 30, 2024 and 2023, cost of revenue increased by $3.4 million or 2%, from $144.6 million during 2023 to $148.0 million during 2024 driven by increased flight volume.
Previous wording
Cost of revenue as a percentage of revenues decreased by 7 percentage points from 83% in 2023 to 76% in 2024. This change is attributable primarily to the use of owned aircraft starting April 2024 for our Medical business, increased use of dedicated aircraft in the Medical business (which typically have lower costs per flight hour and enhanced economies of scale), improved pricing and utilization in our New York airport transfer product, and higher profitability in jet charter flights compared to the same period last year.
Current wording
Cost of revenue as a percentage of revenues decreased by 5 percentage points from 81% in 2023 to 76% in 2024, attributable primarily to: a mix-shift to dedicated aircraft in the Medical segment, which operate at enhanced economies of scale; increased revenue per flight hour in our Medical segment; improved pricing with improved load factor in our Hamptons by-the-seat product and in our New York airport transfer products, New York airport products moved to profit from a loss position in the prior year period; and improved pricing in jet charter flights compared to the prior year period.
Previous wording
For the three months ended June 30, 2024 and 2023, software development costs decreased by $(0.5) million, or (33)%, from $1.4 million during 2023 to $1.0 million in 2024, attributable primarily to software capitalization of development costs (net of amortization) for a $0.4 million impact and executive severance in the prior year that didn’t exist in the current year for a $0.1 million impact.
Current wording
For the nine months ended September 30, 2024 and 2023, software development costs decreased by $(1.2) million, or (33)%, from $3.6 million during 2023 to $2.4 million during 2024, primarily due to software capitalization of development costs due to more development initiatives in the 2024 period for a $0.8 million impact, and a decrease of $0.4 million in stock-based compensation costs.
Previous wording
For the three months ended June 30, 2024 and 2023, general and administrative expense increased by $6.7 million, or 37%, from $18.4 million during 2023 to $25.1 million in 2024.
Current wording
For the three months ended September 30, 2024 and 2023, general and administrative expense increased by $1.1 million, or 6%, from $19.3 million during 2023 to $20.4 million in 2024.
Previous wording
For the six months ended June 30, 2024 and 2023, general and administrative expense increased by $7.7 million or 22%, from $34.7 million during 2023 to $42.3 million in 2024.
Current wording
For the nine months ended September 30, 2024 and 2023, general and administrative expense increased by $8.8 million or 16%, from $53.9 million during 2023 to $62.8 million in 2024.
Previous wording
The primary drivers for the increase was a $5.8 million impairment charge of the exclusive rights to air transportation services associated with Blade Canada, a $3.8 million increase in stock-based compensation due to the PSUs granted in the first quarter, a $1.6 million increase in staff costs attributable mainly to the growth in our Medical business; partially offset by a $2.7 million decrease attributable to a contingent consideration compensation (earn-out) in connection with the Trinity acquisition in the prior year, and a $1.1 million decrease in intangibles amortization costs attributable to the impairment of intangibles in the fourth quarter of 2023 (Europe) and in the current quarter (Canada).
Current wording
The primary drivers for the increase were: a $6.5 million increase in stock-based compensation largely due to the PSUs granted in the first quarter of the current year period; a $5.8 million impairment charge of the exclusive rights to air transportation services associated with Blade Canada recorded in current year period; a $2.1 million increase in staff costs attributable mainly to the growth in our Medical segment, a $1.2 million increase in expenses related to the owned aircraft (did not exist in the prior year period) as pilot training, hangar costs and insurance; and a $0.5 million increase due to restructuring costs in Europe; partially offset by a $5.7 million decrease attributable to a contingent consideration compensation (earn-out) in the prior year period, and a $2.1 million decrease in intangibles amortization costs.
Previous wording
For the three months ended June 30, 2024 and 2023, selling and marketing expense decreased by $(0.3) million, or (12)%, from $2.7 million during 2023 to $2.4 million in 2024. The decrease is attributable primarily to a $0.3 million decrease in sales commissions, other various decreases totaled $0.2 million were fully offset by a $0.2 million increase in stock-based compensation (due to the PSUs granted in the first quarter of 2024).
Current wording
For the three months ended September 30, 2024 and 2023, selling and marketing expense decreased by $(0.5) million, or (20)%, from $2.7 million during 2023 to $2.2 million in 2024. The decrease is attributable primarily to a $0.4 million decrease in cash commissions in the Medical segment and a $0.1 million decrease in stock-based compensation.
Previous wording
For the six months ended June 30, 2024 and 2023, selling and marketing expense decreased by $(0.8) million, or (15)%, from $5.3 million during 2023 to $4.5 million in 2024. The decrease is attributable primarily to a $1.0 million decrease in marketing expenses, primarily driven by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida in November 2023 and a more disciplined media spend in the winter months and $0.4 million decrease in cash commissions; those reductions were partially offset by a $0.5 million increase in stock-based compensation (due to the PSUs granted in the first quarter of 2024).
Current wording
For the nine months ended September 30, 2024 and 2023, selling and marketing expense decreased by $(1.3) million, or (17)%, from $8.0 million during 2023 to $6.7 million in 2024. The decrease is attributable primarily to: a $1.1 million decrease in media spend, primarily driven by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida (which was discontinued in November 2023) and a more disciplined media spend in the winter months; and a $0.9 million decrease in cash commissions in the Medical segment; those decreases were partially offset by a $0.5 million increase in staff costs, inclusive of stock-based compensation.
Previous wording
For the three months ended June 30, 2024, total other non-operating income consisted of: (i) $1.8 million interest income, attributable to our short-term investments and our money market funds in the current year period; and (ii) $0.9 million non-cash loss due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Current wording
For the three months ended September 30, 2024, total other non-operating income consisted of: (i) $1.8 million interest income, attributable to our short-term investments and our money market funds in the current year period; and (ii) $0.3 million non-cash loss due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Previous wording
For the three months ended June 30, 2023, total other non-operating expense consisted of: (i) $2.1 million interest income, attributable to our short-term investments and our money market funds in the current year period; and (ii) $2.5 million non-cash loss due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Current wording
For the three months ended September 30, 2023, total other non-operating income consisted of: (i) $2.1 million interest income, attributable to our short-term investments and our money market funds; and (ii) $5.7 million non-cash gain due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Previous wording
For the six months ended June 30, 2024, total other non-operating income consists of: (i) $3.9 million interest income, attributable to our short-term investments and our money market funds in the current year period; and (ii) $2.6 million non-cash gain due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Current wording
For the nine months ended September 30, 2024, total other non-operating income consists of: (i) $5.6 million interest income, attributable to our short-term investments and our money market funds in the current year period; and (ii) $2.3 million non-cash gain due to fair value revaluation of warrant liabilities as the value of the warrant liabilities fluctuates with the warrants’ market price.
Previous wording
For the three months ended June 30, 2024 and 2023, Passenger revenue increased by $3.0 million or 11%, from $26.6 million in 2023 to $29.6 million in 2024. The increase was attributable to a $1.7 million increase in Short Distance and a $1.3 million increase in Jet and Other. Refer to the disaggregated revenue discussion above under “—Comparison of the Three Months Ended June 30, 2024 and 2023—Revenue” for more details.
Current wording
For the three months ended September 30, 2024 and 2023, Passenger revenue increased by $0.8 million or 2%, from $38.0 million in 2023 to $38.8 million in 2024. The increase was attributable to a $2.0 million increase in Short Distance offset by a $1.1 million decrease in Jet and Other. Refer to the disaggregated revenue discussion above under “—Comparison of the Three Months Ended September 30, 2024 and 2023—Revenue” for more details.
Previous wording
For the six months ended June 30, 2024 and 2023, Passenger revenue stayed essentially flat at $45.1 million in 2024. A $1.1 million increase in Short Distance was fully offset by a $1.1 million decrease in Jet and Other. Refer to the disaggregated revenue discussion above under “—Comparison of the Six Months Ended June 30, 2024 and 2023—Revenue” for more details.
Current wording
For the nine months ended September 30, 2024 and 2023, Passenger revenue increased by $0.8 million or 1% from $83.1 million in 2023 to $83.9 million in 2024. The increase was attributable to a $3.1 million increase in Short Distance that was partially offset by a $2.3 million decrease in Jet and Other. Refer to the disaggregated revenue discussion above under “—Comparison of the Nine Months Ended September 30, 2024 and 2023—Revenue” for more details.
Previous wording
For the three months ended June 30, 2024 and 2023, Medical revenue increased by $3.9 million or 11%, from $34.4 million in 2023 to $38.3 million in 2024. Refer to the disaggregated revenue discussion above under “——Comparison of the Three Months Ended June 30, 2024 and 2023—Revenue” for more details.
Current wording
For the three months ended September 30, 2024 and 2023, Medical revenue increased by $2.6 million or 8%, from $33.4 million in 2023 to $36.1 million in 2024. Refer to the disaggregated revenue discussion above under “—Comparison of the Three Months Ended September 30, 2024 and 2023—Revenue” for more details.
Previous wording
Medical Adjusted EBITDA increased by $5.0 million or 103%, for the six months ended June 30, 2024 from $4.9 million in the same period of 2023 to $9.9 million in 2024. $7.0 million of the increase is attributable to: (i) larger volume for both air and ground missions, from new and existing clients, partially offset by the loss of a temporary customer we supported in the 2023 period, (ii) higher revenue per air trip, (iii) lower effective cost of revenue per flight due to the use of owned aircraft (starting April 2024) and higher utilization of dedicated aircraft, which typically have lower cost per flight hour. Those increases were partially offset by a $2.0 million increase in fixed costs, primarily staff costs in order to support the higher activity.
Current wording
Medical Adjusted EBITDA increased by $0.5 million or 15%, for the three months ended September 30, 2024 from $3.3 million in the same period of 2023 to $3.9 million in 2024. Due to: $1.3 million increase in revenue less cost of revenue (excluding depreciation) due to higher volumes combined with lower effective cost of revenue per flight (due to higher revenue per flight hour and mix-shift towards dedicated aircraft operating at enhanced economies of scale). This increase was partially offset by a $0.8 million increase in fixed costs, primarily due to an increase in staff costs in order to support the higher activity and the new TOPS offering.
Previous wording
For the six months ended June 30, 2024 and 2023, Medical revenue increased by $13.2 million or 22%, from $61.2 million in 2023 to $74.4 million in 2024. Refer to the disaggregated revenue discussion above under “—Comparison of the Six Months Ended June 30, 2024 and 2023—Revenue” for more details.
Current wording
For the nine months ended September 30, 2024 and 2023, Medical revenue increased by $15.8 million or 17%, from $94.6 million in 2023 to $110.4 million in 2024. Refer to the disaggregated revenue discussion above under “—Comparison of the Nine Months Ended September 30, 2024 and 2023—Revenue” for more details.
Previous wording
Medical Adjusted EBITDA increased by $2.5 million or 83%, for the three months ended June 30, 2024 from $3.0 million in the same period of 2023 to $5.5 million in 2024. $3.3 million of the increase is attributable to: (i) larger volume for both air and ground missions, from new and existing clients, partially offset by the loss of a temporary customer we supported in the 2023 period, (ii) higher revenue per air trip, (iii) lower effective cost of revenue per flight due to the use of owned aircraft (starting April 2024) and higher utilization of dedicated aircraft, which typically have lower cost per flight hour. Those increases were partially offset by a $1.0 million increase in fixed costs, primarily staff costs in order to support the higher activity.
Current wording
Medical Adjusted EBITDA increased by $5.5 million or 67%, for the nine months ended September 30, 2024 from $8.2 million in the same period of 2023 to $13.8 million in 2024. $8.3 million of the increase is attributable to higher revenue less cost of revenue (excluding depreciation) due to: larger volumes combined with lower effective cost of revenue, attributable to: higher revenue per flight hour, mix-shift to dedicated aircraft and mix shift to ground revenue (which is characterized with lower effective cost of revenue). This was partially offset by a $2.8 million increase in fixed costs, primarily staff costs in order to support the higher activity, adding ground hubs and the new TOPS offering that did not exist in the prior year period.
Previous wording
Adjusted EBITDA improved by $5.4 million for the three months ended June 30, 2024 from $(4.4) million in the same period of 2023 to $1.0 million in 2024. The improvement is primarily attributable to improvements in both Passenger and Medical Adjusted EBITDA (refer to the discussion above), coupled with a $0.2 million decrease in Adjusted unallocated corporate expenses and software development (attributable primarily to a $0.1 million decrease in rent and a $0.1 million decrease in staff costs).
Current wording
Adjusted EBITDA improved by $3.4 million for the three months ended September 30, 2024 from $0.8 million in the same period of 2023 to $4.2 million in 2024. The improvement is primarily attributable to improvements in both Passenger and Medical Adjusted EBITDA (refer to the discussion above), coupled with a $0.1 million decrease in Adjusted unallocated corporate expenses and software development staff costs.
Previous wording
Flight Margin increased from 17.0% in the three months ended June 30, 2024 to 24.1% in the same period of 2023, attributable to lower effective cost of revenue per flight in both Passenger and Medical flights as described above.
Current wording
Flight Margin increased from 21.8% in the three months ended September 30, 2024 to 26.5% in the same period of 2023, attributable to lower effective cost of revenue per flight in both Passenger and Medical flights as described above under Flight Profit.
Previous wording
Adjusted EBITDA improved by $9.6 million for the six months ended June 30, 2024 from $(12.2) million in the same period of 2023 to $(2.6) million in 2024. The improvement is primarily attributable to improvements in both Passenger and Medical Adjusted EBITDA (refer to the discussion above), coupled with a $1.4 million decrease in Adjusted unallocated corporate costs and software development, attributable primarily to a $0.6 million decrease in staff costs, $0.4 million decrease in professional services and insurance, and a $0.2 million decrease in local franchise taxes.
Current wording
Adjusted EBITDA improved by $13.0 million for the nine months ended September 30, 2024 from $(11.4) million in the same period of 2023 to $1.6 million in 2024. The improvement is primarily attributable to Adjusted EBITDA improvements of $6.1 million and $5.5 million in Passenger and Medical, respectively (refer to the discussion above), coupled with a $1.4 million decrease in Adjusted unallocated corporate costs and software development, attributable to a $1.0 million decrease in staff costs and a $0.5 million decrease in professional services and insurance.
Previous wording
(1) For the three and six months ended June 30, 2024, represents legal advocacy fees related to the Drulias lawsuit (see “— Legal and Environmental” within Note 9) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.
Current wording
(1) For the three and nine months ended September 30, 2024, represents legal advocacy fees related to the Drulias lawsuit (see “— Legal and Environmental” within Note 11) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.
Previous wording
(2) For the six months ended June 30, 2023, represents certain legal and regulatory advocacy fees for certain proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport, that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
Current wording
(2) For the three and nine months ended September 30, 2023, represents certain legal and regulatory advocacy fees for certain proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport, that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
Previous wording
Flight Profit is calculated as revenue less cost of revenue. Flight Margin is calculated as Flight Profit divided by revenue. Flight Profit and Flight Margin are measures that management uses to assess the performance of the business. Blade believes that Flight Profit and Flight Margin provide a useful measure of the profitability of the Company's flight and ground operations, as they focus solely on the non discretionary direct costs associated with those operations such as third party variable costs and costs of owning and operating Blade’s owned aircraft.
Current wording
Flight Profit is calculated as revenue less cost of revenue. Flight Margin is calculated as Flight Profit divided by revenue. Flight Profit and Flight Margin are measures that management uses to assess the performance of the business. Blade believes that Flight Profit and Flight Margin provide a useful measure of the profitability of the Company's flight and ground operations, as they focus solely on the non discretionary direct costs associated with generating revenue such as third party variable costs and costs of owning and operating Blade’s owned aircraft.
Previous wording
Gross Profit, which is the most directly comparable GAAP financial measure to Flight Profit, is calculated as revenue less cost of revenue and other costs directly related to revenue generating transactions which primarily includes credit card processing fees, depreciation and amortization, staff costs including stock-based compensation, commercial costs and establishment costs. Gross Margin is calculated as Gross Profit divided by revenue.The reconciliation of gross profit to Flight Profit can be found in the table below.
Current wording
Gross Profit, which is the most directly comparable GAAP financial measure to Flight Profit, is calculated as revenue less cost of revenue and other costs directly related to revenue generating transactions, including credit card processing fees, depreciation and amortization, direct staff costs including stock-based compensation, commercial costs and establishment costs. Gross Margin is calculated as Gross Profit divided by revenue. The reconciliation of Gross Profit to Flight Profit can be found in the table below.
Previous wording
(2) Other costs include credit card processing fees, staff costs, commercial costs and establishment costs.
Current wording
(3) Other costs include credit card processing fees, direct staff costs, commercial costs and establishment costs.
Previous wording
As of June 30, 2024 and December 31, 2023, we had total liquidity of $142.0 million and $166.1 million, respectively, consisting of cash and cash equivalents of $26.3 million and $27.9 million, respectively, and short-term investments of $115.6 million and $138.3 million, respectively. In addition, as of June 30, 2024 and December 31, 2023, we hadrestricted cash of $2.1 million and $1.1 million, respectively. As of June 30, 2024, $115.6 million of short-term investments consisted of securities that are traded in highly liquid markets.
Current wording
As of September 30, 2024 and December 31, 2023, we had total liquidity of $136.3 million and $166.1 million, respectively, consisting of cash and cash equivalents of $20.0 million and $27.9 million, respectively, and short-term investments of $116.3 million and $138.3 million, respectively. In addition, as of September 30, 2024 and December 31, 2023, we hadrestricted cash of $1.4 million and $1.1 million, respectively. As of September 30, 2024, $116.3 million of short-term investments consisted of securities that are traded in highly liquid markets.
Previous wording
With $142.0 million of total liquid funds as of June 30, 2024, we anticipate that we have sufficient funds to meet our current operational needs for at least the next 12 months from the date of filing this Quarterly Report.
Current wording
With $136.3 million of total liquid funds as of September 30, 2024, we anticipate that we have sufficient funds to meet our current operational needs for at least the next 12 months from the date of filing this Quarterly Report.
Previous wording
As of June 30, 2024, the Company had net working capital of $152.6 million, zero debt, cash and cash equivalents of $26.3 million and short-term investments of $115.6 million. The Company had net losses of $15.6 million and $22.4 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
As of September 30, 2024, the Company had net working capital of $144.6 million, zero debt, cash and cash equivalents of $20.0 million and short-term investments of $116.3 million. The Company had net losses of $17.5 million and $22.1 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
In the course of our business, we have certain contractual relationships with third-party aircraft operators pursuant to which we may be contingently required to make payments in the future. As of June 30, 2024, we had commitments to purchase flights from various aircraft operators with aggregate minimum flight purchase guarantees of $8.4 million and $13.8 million for the years ending December 31, 2024 and 2025, respectively, $3.9 million and $7.5 million, respectively, of which may be cancelled by us immediately if a government authority enacts travel restrictions and $0.8 million and $1.3 million, respectively, of which could be terminated by Blade for convenience upon 30 or 60 days’ notice with the annual minimum guarantee being pro-rated as of the termination date. See “—Capacity Purchase Agreements” (“CPAs”) within Note 9 to the unaudited interim condensed consolidated financial statements for additional information and for information about future periods. Additionally, the Company has operating lease obligations related to real estate and vehicles with expected annual minimum lease payments of $1.1 million and $2.1 million for the years ending December 31, 2024 and 2025, respectively. See Note 3 “Right-of-Use Asset and Operating Lease Liability” to the unaudited interim condensed consolidated financial statements for additional information and for information about future periods.
Current wording
In the course of our business, we have certain contractual relationships with third-party aircraft operators pursuant to which we may be contingently required to make payments in the future. As of September 30, 2024, we had commitments to purchase flights from various aircraft operators with aggregate minimum flight purchase guarantees of $2.4 million and $15.4 million for the years ending December 31, 2024 and 2025, respectively, $0.2 million and $8.7 million, respectively, of which may be cancelled by us immediately if a government authority enacts travel restrictions and $— million and $2.8 million, respectively, of which could be terminated by Blade for convenience upon 60 days’ notice with the annual minimum guarantee being pro-rated as of the termination date. See “—Capacity Purchase Agreements” (“CPAs”) within Note 11 to the unaudited interim condensed consolidated financial statements for additional information and for information about future periods. Additionally, the Company has operating lease obligations related to real estate and vehicles with expected annual minimum lease payments of $0.4 million and $2.0 million for the years ending December 31, 2024 and 2025, respectively. See Note 5 “Right-of-Use Asset and Operating Lease Liability” to the unaudited interim condensed consolidated financial statements for additional information and for information about future periods.
Previous wording
We have non-cancellable commitments which primarily relate to cloud services and other items in the ordinary course of business. The amounts are determined based on the non-cancellable quantities to which we are contractually obligated. In December 2023, the Company entered into a technology service agreement with a vendor for cloud computing services where we are committed to spend$0.2 million and $1.1 millionfor the years ending December 31, 2024 and 2025, respectively.
Current wording
We have non-cancellable commitments which primarily relate to cloud services and other items in the ordinary course of business. The amounts are determined based on the non-cancellable quantities to which we are contractually obligated. In December 2023, the Company entered into a technology service agreement with a vendor for cloud computing services where we are committed to spend$0.1 million and $1.1 millionfor the years ending December 31, 2024 and 2025, respectively.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Flight Margin increased from 18.6% in the nine months ended September 30, 2023 to 23.8% in the same period of 2024, attributable to lower effective cost of revenue per flight in both Passenger and Medical flights as described above under Flight Profit.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The primary drivers for the increase was a $5.8 million impairment charge of the exclusive rights to air transportation services associated with Blade Canada, a $2.7 million increase in stock-based compensation due to the PSUs granted in the first quarter and a $1.0 million increase in staff costs; partially offset by a $3.0 million decrease attributable to a contingent consideration compensation (earn-out) in connection with the Trinity acquisition in the prior year.