Q4 2021 Blade Air Mobility Inc Earnings Call
[music].
Good day and welcome to the Blade Air Mobility incorporated fiscal fourth quarter 2021 financial results call.
All participants will be in listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation there'll be an opportunity to ask questions. Please note. This event is being recorded and I'd like to turn the conference over to Tom Cook Investor Relations. Please go ahead.
Thanks, operator, and good morning, ladies and gentlemen, thank you for standing by and welcome to the Blade Air Mobility fiscal fourth quarter 2021 conference call and webcast. We appreciate everyone. Joining us today before we get started I would like to remind you of the company's forward looking statements and Safe Harbor language statements made in this conference call that are not hyster.
Oracle facts, including statements about our future period may be deemed to constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
These forward looking statements are subject to risks and uncertainties and actual future results may differ materially from those expressed or implied by the forward looking statements. We refer you to our SEC filings, including our form S. One filed with the SEC on May 28, 2021, and the Form 10-Q for the quarterly period ended June 30.
2021 filed with the SEC.
16th 2021 for a more detailed discussion of the risk factors that could cause these differences.
Any forward looking statements provided during this conference call are made only as of the date of this call I stated in our SEC filings blade disclaims any intent or obligation to update or revise these forward looking statements except as required by law.
During today's call. We will also discuss non-GAAP financial measures, which we believe can be useful in evaluating our financial performance. A reconciliation of the most directly comparable GAAP financial measures to those non-GAAP financial measures is provided in our press release, which will be available on our website. These non-GAAP measures should not be considered an isolate.
Or a substitute for financial results prepared in accordance with GAAP.
Hosting today's call are Rob Wiesenthal, founder and Chief Executive Officer of Blade and will Haber, Chief Financial Officer, I will now turn the call over to Rob Rob.
Thank you Tom good morning, everyone.
I'd like to thank you for your interest in blade and welcome you to our earnings call for the fiscal fourth quarter and fiscal year ending September 32021.
We'll start today with a short overview of our results followed by an update on the progress we have made toward achieving our strategic goals before handing the call over to will.
Will cover our financials in greater detail, we are very happy to report that this quarter and the fiscal year ending September 32021 significantly exceeded our expectations.
Using the September 2021 quarter increased 144% to $20 3 million versus $8 3 million in the 2020 comparable period and increased 28% versus the pre COVID-19 2019 comparable period.
The $18 8 million.
For the full fiscal year, ending September 32021 revenues of $55 million increased 116% versus $23 4 million in fiscal 2020 and were up 62% versus $31 2 million in the pre COVID-19 period.
2019.
We remain extremely well capitalized to continue this strong execution on our growth strategy, both organically and through acquisition given our debt free balance sheet with cash and short term investments of $305 million as of September 32021.
Regardless, we have remained vigilant with respect to our cost structure with comparable adjusted EBITDA of negative $4 7 million for the.
Fiscal year, ending September 32021 versus negative $9 3 million in fiscal year, 2020, and negative $10 8 million in the pre Covid fiscal 2019 period.
Comparable adjusted EBITDA, excluding certain recurring and nonrecurring costs paid.
Parties associated with our shift to being a public company for the purpose of comparison to prior years when blade was private our strong results in this fourth fiscal quarter overwhelmingly reflect the team's execution on organic growth initiatives since our acquisition of Trinity Air Medical was not completed until September 15th.
'twenty one.
We continued to make great progress.
During the quarter and re launching our airport service between Manhattan Newark Airport in November 15th.
Overall the airport service passenger volumes have now reached pre COVID-19 levels of approximately 20000 Flyers per year on an annual run rate basis. Additionally, we announced a long term agreement with signature aviation for a dedicated dust terminal at Newark Airport through 2028 are critical elements.
Support both our current helicopter services as well as future electric vertical aircrafts or E V. A service.
Ongoing public we committed to you our shareholders that we would complete two acquisitions by the end of 2021.
I'm pleased to confirm that we have achieved that goal with the strategic acquisitions of both Trinity are September 15, intelligent schedules helicopter business in Vancouver, and neighboring territories November 30th.
Trinity are acquisition makes blade, the largest dedicated air transport or human Oregon's for transplant in the United States. We are already seeing strong operational benefits in this combination with our existing better mobility business with the added scale, enabling us to offer transplant centers organ procurement organizations better aircraft availability.
<unk> and lower costs, while maintaining the fast personalized service that is brought trainee air medical build each session.
Yes.
Most importantly, the pricing availability flexibility, we can now offer our hospital partners enables them to accept more organs for transplant.
The mission of blade met and mobility is simple.
Increase the number of organs that are available for transplant. We are doing just that and together. We are saving lives. Every day are fantastic momentum in men mobility has continued through the current December quarter to date, we have signed up a number of major hospitals in recent weeks and look forward to continuing to build scale in Oregon transportation.
This business is incredibly strategic for us given the high frequency of Oregon, only last mile transfers, which we believe will be our first commercially used case for drones as well as EMEA our acquisition intelligence passenger business to Vancouver grows blade into the largest urban air mobility comes.
In North America, consistent with our asset light strategy Telegent will continues to own operate and maintain all aircrafts blade will also gained exclusive access to California terminal in Vancouver, Victoria, and a nine Boe with an option to acquire up to a 49% stake in this important strategic infrastructure.
Sure.
L J as a proven unique ability to offer urban air mobility services at scale today flying approximately 100000 passengers and the pre Covid 2019 calendar period, following three decades, a safe operation.
Additionally, Hello Jets short flights between 20, and 40 minutes are ideal for the expected capabilities early E. B, a design, making it a perfect fit for our focus on urban air mobility routes that are economically viable today, well operationally appropriate for the expected capabilities.
Aircraft, we plan to use as we transition to ebay what's available in the markets in which you operate helicopters are a common method of travel across many socio economic brackets with beer starting at only $120 <unk> ability to make their air mobility flight so affordable today enhances.
Pat it's public and regulatory acceptance of quiet an emission free EMEA simply put helicopter transportation is a vital part of Vancouver's mobility infrastructure today and that will derisk. This market transition to E D. A.
Before I turn the call over to will I want to briefly address the ongoing COVID-19 environment with the emerging army crime variant.
The health and safety of our passengers and employees is paramount to us throughout the pandemic. We've led by example to ensure that our passengers are flying in a state environment, including by bringing on a chief medical advisor last year. We were the first aviation company to mandate in flight masking the first to have been boarding blood oxygen.
Saturation testing and the first to provide onsite COVID-19 testing for our longer haul flights. This leadership position continues we were the first aviation company to announce a requirement for all of our Flyers feed vaccinated. Starting this past September seven with exemptions only as recommended by the CDC.
It's an important differentiator versus our competitors on the ground and in the air and we believe it has led and will continue to lead to increased flyer volumes with delayed our health protocols or position to scale and they remain critical to our success. We will continue to mitigate risk to our employees and customers are like we.
We're also able to adapt quickly to changing requirements mandated by governments in the areas. We operate we're closely monitoring the omicron virus, but as of today during the current quarter ending December 31, we have not seen a material negative impact to our business overall, we have quickly.
<unk> added unmatched scale to our urban air mobility ecosystem, and we believe blade has now aggregated more customers and infrastructure for the launch of ebay passenger in Oregon transport services than any other company in the world.
Most importantly, we are serving these customers and using our infrastructure today with conventional aircrafts building market share expanding our service offerings and strengthening our brand while sharpening our operations and customer experience in preparation for seamless transition to EMEA. Once these aircrafts are certified.
For public use by our partners with that I'd like to turn it over to our CFO will haber to discuss our financial results in greater detail.
Thank you Rob let me reiterate how pleased we are with the progress we've made on our strategic priorities with our financial results for the September quarter and with our performance in the December quarter to date.
Rob mentioned earlier, our 144% revenue growth in the September 2021 quarter versus the comparable 2020 period is primarily a testament to the team's strong execution unbleached organic growth plan.
A short distance business was the most significant driver of revenue growth on a dollar basis up 261% to $13 4 million in September 2021 quarter versus $3 7 million in the comparable 2020 period.
Our commuter business continued to benefit from strong intra week demand driven by hybrid remote office policies, which was offset by decreased demand for weekend centric trips driving a recovery of total short distance revenues to an impressive 90% pre COVID-19 comparable 2019 period levels significantly outpacing.
The overall travel industry recovery.
Future healthy jet results will be included in short distance, but there was no impact on this quarter's results given that the acquisition was not completed until November 30th.
Turning to minimal ability, Oregon transport inkjet revenues increased 15% this quarter $6 6 million versus $4 4 million in the comparable 2020 period driven by the addition of new hospital and jet charter customers as well as growth in print volume within believes existing accounts.
Our acquisition of Trinity are contributed revenues of only 0.7 million in the September quarter, given that we closed with just two weeks remaining in the period. Since then we have made great strides in our integration process and the air the team led by CEO Zen Bacon and C. O O Scott won't have moved quickly.
Validate our aircraft sourcing, allowing our combined scale to drive better aircraft availability and pricing. We've also combined our business development functions generating early success with new hospital wins across the United States.
Given the rapid progress in our integration, we will not break out Trinity are separately in our reporting going forward.
Finally, other revenue increased slightly this quarter to <unk> 4 million from zero point $2 million in the comparable 2020 period, driven primarily by an increase in first and last mile ground transportation revenues.
Turning to our costs, we saw improvement in what we refer to as flight margin revenue less cost of revenue, which includes the total cost of flying paid to our operators Atlantic fees.
Slight margin increase this quarter to 22% versus 19% in the comparable 2020 period.
This improvement was driven primarily by a shift in overall revenue mix towards short distance, which made up 66% of revenues this quarter versus 44% in the comparable 2020 period mature routes in our short distance portfolio tend to have higher flight margins that are met him mobility, Oregon transport and jet businesses, which tend to have.
Lower flight margins, but generally do not have utilization risk or require a ramp to profitability.
Given that the majority of our short distance revenues. This quarter were from mature routes, we realized a slight margin benefit from this mix shift.
This higher than expected flight margin provides an enhanced economic cushion, enabling us to invest that margin and route expansion given our expectation that each new route will typically require approximately 18 months to ramp to profitability.
Let's turn now to our general and administrative expenses G&A increased $10 million in the September 2021 quarter to $11 9 million from $1 9 million in the comparable 2020 period. The increase was primarily driven by growth in noncash stock based compensation expense of $3 2 million one time.
Transaction related expenses of $2 5 million as well as recurring costs paid to third party auditors and consultants related to our new status as a public company of $2 2 million, one 7 million of which represents premiums for our directors and officers insurance.
Absent these onetime noncash and recurring public company costs G&A expense would have increased approximately $2 1 million to $4 million in the September 2021 quarter versus $1 9 million any comparable 2020 period, primarily reflecting the measured expansion and enhancement of our team as we execute on our.
Growth plan, both organically and through acquisition.
Our software development expenses increased <unk> 8 million to $1 million in the September 2021 quarter, driven primarily by noncash stock based compensation of <unk> 3 million and increased compensation for new and existing employees.
Selling and marketing expenses increased $1 1 million to $1 4 million as of September 2021 quarter, driven by a recovery in our short distance businesses and their associated marketing activities.
Compared to the pre Covid comparable 2019 period, selling and marketing expenses increased <unk> 3 million or 28%, which primarily reflects an increase in noncash stock based compensation of <unk> 1 million and increased marketing activities.
Adjusted EBITDA in the September 2021 quarter decreased to negative $3 2 million from negative <unk> 4 million in the comparable 2020 period and negative $1 5 million in the comparable 2019 period. This decrease was primarily attributable to new recurring expenses related to blade status as a public company.
<unk> of incremental D&O insurance of $1 7 million and other fees paid to third party auditors and consultants.
Five.
Excluding the new recurring public company expenses above comparable adjusted EBITDA of negative <unk> 9 million in the quarter decreased versus negative $4 million in the comparable 2020 period, but improved from negative $1 5 million in the pre COVID-19 comparable 2019 period driven by.
Lease revenues and lower cost of sales as a percentage of revenues.
Our asset light business model requires limited capital expenditures with only <unk> 1 million in the September 2021 quarter, and zero point $3 million for the full 2021 fiscal year, excluding acquisitions and the purchase of our domain name.
Next I would like to provide some visibility into both our current quarter ending December 31, 2021, as well as the impact of our recent acquisitions on future financial results.
In short distance since the September quarter, and we have seen continued progress in our ramp of bleed airport, achieving an annualized run rate of approximately 20000 Flyers in recent weeks matching pre COVID-19 levels. We are especially pleased with this result, given that we're currently offering only one route between Manhattan and JFK.
And very recently relaunched Newark service on November 15, pre Covid, we offered service between JFK and three different Manhattan heliport with one route each between Manhattan and book Laguardia and Newark, given strong performance in the airport business. We plan to continue adding new routes in capacity in the coming months, while bleed airborne.
Has already contributed to strong revenue growth versus the prior year and our short distance business. During this current December quarter to date.
With respect to expansion plans, we are targeting a 2022 launch for one or more additional short distance routes between cities, where the value proposition of blade driven by the elimination of travel friction at prices that are competitive to current alternatives is meaningful.
As expected <unk> continues to operate at approximately 50% of its pre COVID-19 annual revenues of $15 million and begun contributing to short distance on November 30th.
Since the start of the pandemic, Canada has lagged the U S and reopening policies contributing to that slower recovery.
Do not expect Helen just to add material SG&A in fiscal year 2022.
And minimal ability, Oregon transported Gen. Trinity Air is already contributing nearly $6 million of revenues per quarter with charter margins equal to or above the blade average. We expect Trinity are at approximately 1 million of SG&A per quarter I should also point out that this business lines, both non seasonal and has not seen.
Material negative impacts during the pandemic.
These acquisitions, along with our focus on new routes with consistent year round demand will serve to smooth out our seasonality going forward. So we do expect the September quarter to remain our largest.
We continue to have preliminary discussions with our board to change to a December 31 fiscal year end to coincide with the calendar year, we expect them to consider a formal change in early 2022.
In closing, we have a strong debt free balance sheet with more than $300 million in cash to support our growth strategy, both through organic expansion and acquisition, we have built and continue to enhance north Americas largest urban air mobility ecosystem ready for the quiet an emission free electric future.
But flying passengers and critical cargo right now every day with conventional aircraft at profitable unit economics with that I'll turn it back over to Rod.
Thanks, well I am pleased with all that we've accomplished over the past fiscal year. Looking ahead at 2022, we will continue to focus on building and acquiring all the necessary elements for blade world, leading urban air mobility ecosystem in preparation for the deployment of Anda services to the public in a seamless cost effective safe.
Manner as our partners next generation aircraft become available.
The elements of blades ecosystem include our network of exclusive terminals and the most important urban air mobility markets in the world.
Partnerships with leading aerospace manufacturers, our customer to cockpit technology stack or 24, seven on the ground floor of our experienced team profitable routes, our loyal customer base and our highly recognized strong brands. These competitive strengths are extremely difficult to replicate.
Many companies in the urban air mobility landscape, we already have a strong and growing business today using conventional aircraft and we will continue to build on an organically and through our pipeline at strategic and financially accretive acquisition that will only serve to continue to grow our operations in the U S, Canada, India and additional Gi.
Her fees around the world before we close I'd like to briefly discuss the current capital markets environment.
There continues to be volatility in the market for emerging growth companies like Blake, we reported very strong financial results for the September quarter with encouraging financial visibility for the current December quarter with approximately $300 million of cash on a debt free balance sheet.
As we leverage and expand our current market leadership and urban air mobility.
We truly have an incredible opportunity ahead of us blades management team and board believe that the current share price simply does not reflect the long term growth prospects for our company as we continue to execute on our growth strategy, both strong financial results exceeding expectations and further build credibility with the investment community.
We expect this gap to narrow however, if needed our balance sheet strength provides us with a very powerful tool box to utilize when appropriate.
Finally, I want to thank each of our 144 full time and part time employees for their contributions and tireless work as they consistently provide best in class service for all of our customers our success would not be possible without them.
With that I'll turn it over to Tom for your questions.
Thanks, Rob as a reminder, we will take questions from analysts and investors on this call Tonight reporters should send enquiries to me directly operator, we're now ready for questions.
Thank you we will now begin the question and answer session to.
To ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Our first question comes from Hilli.
Hilary <unk> from Deutsche Bank. Please go ahead.
Hi, Hi, Robert I will thanks for taking my question I know you haven't seen overland pass on omnicom, so far but could be important I'm not doing something for barley and potentially impact the timing of the expansion plans in the northeast corridor.
You know if you could discuss how that expansion plans I'm, calling.
Hum, Michelle and muscle behind Marlboro, and I'll say I think that will come in on your power cycle the cycle time in Laguardia.
Yeah.
Sure Dan Thanks for your question.
Given that we are the only aviation company with mandatory vaccination requirements, which began to be enforced on September 7th.
Our passengers.
Our not only all vaccinated they were the first to be boosted as well.
Simply put our Flyers do not view omicron zens. However, they are being very smart about it. They are following the science and they are continuing on with their lives. So what we see right now through December.
<unk> is not having an impact they're continuing with their previously planned vacation travel, they're continuing to move around but they are being extremely vigilant and they do appreciate.
Are you know are a healthy our help.
Processes, which have been as you know through were met in mobility division and through our Chief Medical Officer, and something that we started literally at the very very very beginning of the virus that first to institute mandatory masks. The first company to do mandatory blood oxygen saturation level, and then moving on to mandatory.
<unk>.
Requirements with respect to our expansion plans are I'll, let will take it on a we have on the I'll. Let me take the airport first we did start with JFK AR on the departing from one heliport and Manhattan.
And then recently in November added Newark Airport remember pre pandemic, we were actually flying to Newark, and Laguardia and JFK from all three New York City airports. Obviously the goal is to go back to that with respect to Laguardia.
There was a lot of construction there right now and the value proposition.
With respect to your flying there and then potentially having some construction that's longer than your five minute flight to get to curbside without behind the tarmac service that is something we're watching closely but obviously, it's something we're very focused on to get back to three airports with respect to the northeast corridor.
Our potential plans I'll, let will answer that question.
Hey, Hilary. Thanks for the question are we kind of look to bleed airport is our Canary in the coal mine. If you will to see how things are going in as we look at the last sort of four weeks, we've averaged that around 20000 flyer, Mark which matches, what we were doing pre COVID-19, but if I look at even the week ending last Friday.
We were a little bit ahead of that so we really haven't seen an impact in that airport business, which is the one that we would think if there was going to be an impact would be the most likely to see it now would we be growing more with without the presence of this variance you know maybe but it's hard for us to tell with respect.
The northeast corridor expansion.
The thing we're gonna be watching there as our offices open and our business travelers back on the road.
We see some some encouraging data around small business travel I'm sure folks saw the data that amex was talking about recently.
Where they've recovered very nicely sort of that 75% to 80% level, but we'd want to make sure that folks are open for business and the two cities, we're trying to connect and given the asset light model, we have a lot of flexibility on timing.
Okay got it thanks for that I just have one more follow up question do you know, what's the matter with labor shortages across all industries and in our policy.
Global industrial and you know over the weekend I think there were you know.
Restaurants clothing to cut staff.
On the planning and CRO canceling, yes, theres any potential label says that your partner network at all like.
T. I know you've kept probably doesn't have superfan backup pilots in coke and coal.
Full become sick or or.
Any other like Naples, just come up.
You know as of now we have not seen anything.
And there seems you know obviously, there's not only been a great flow of new pilots, but what I'll say is that because of declines in the oilfield services business. There are a lot of pilots that are moving from that business to our business.
And then also because there has been in.
And this summer there usually is a very big pick up in.
In in volume for leisure routes those pilots have stayed on.
So the combination of the ramping up for the summer coupled with the decline in oilfield services requirements for helicopter pilots, we have not seen that at all.
Okay, great. That's good to hear thank you so much Robert and well. Thank you very much. Thank.
Thanks Hillary.
Our next question comes from Jason <unk> from Oppenheimer. Please go ahead.
Maybe I'll ask a few shows we're kind of thinking about the business. I think you said Saturday was like 700000 in the quarter I'm. Just I think we were thinking about it that was like maybe a $5 million a quarter business is that still kind of you know a good number and then.
You know just.
And then when Howard yet I think you guys had given some numbers out when you announced that acquisition of I guess seven 5 million run rate is.
Is that still holding off.
And I guess, yes.
Should we think about I know you said 15.
15 million kind of.
Pre COVID-19 should we be thinking about kind of the pace to get back to that 15 million. How do we think about that pace I guess, given that you're kind of talking about your airport business already.
Being almost back to pre Covid levels, and then I've got one follow up.
Yeah. Thanks for the question, Jason I'll take those on the Trinity Front, you know the the $5 million was right for when we closed as we said we've had some some great recent wins in recent weeks. So you know I.
I would think about starting it at that sort of a 700000 level, which is what they did for the two weeks that they contributed in September and then now we're starting to get close to that $6 million a quarter level of revenue contribution, but I would think about that as more being towards the future rather than back.
We're looking if that helps.
And then on the AR on the how would you had question.
Canada has been a little bit behind the U S. In terms of reopening and it remains to be seen what impact. This variance is going to have on their willingness to get back on the road for for business travel and for government meetings, which is a big driver of Holly Jets business. So we expected that this business would still be around that.
50% of the of the $15 million and that's what we underwrote when we did the deal and you know, it's a little bit hard to predict when it would get back to the normal run rate you know I would expect it'll it'll still be some time on that.
And then just a final question for me then.
That you know if you do not open additional northeast quarter of light. This year would we would expect to maybe have more focus on acquisitions and so the business well I guess are you willing to commit to the best you'll move the business forward either organically through northeast corridor expansion or through M&A. This year additional M&A.
Yeah, it's Rob I'll take that.
Think we have a variety of options.
The good news is when it comes to the northeast corridor.
Given our size and our ability to launch routes routes. We can do it very quickly we do not require any regulatory approvals to launch new routes. So they can be.
Launch very quickly there are other routes that are more tilted towards leisure.
Or tilted towards commuting that could be very valuable that do not that are not heavily reliant on business travel there. Other route elsewhere in the United States that we are you know.
Well down the path of investigating.
In addition to that yes, we've been very very visible pipeline of acquisitions moving forward. So all of those together I think gives us the optionality to the extent that if there was a large.
Our northeast corridor mood that we would consider opening and we decided to be prudent potentially and it really kind of pushed that off a bit just to get better visibility to business travel we do have that option.
Thank you.
The next question comes from the time of calling from Citi. Please go ahead.
Great. Thanks, good morning, everybody.
First of all.
Curious on as you've ramped up the airport trips curious what percentage of fliers worked totally new to the blade platform versus those who may have flown airport pre COVID-19 or in some of your other kind of leisure routes.
Yes, its been really encouraging look about if I'm looking at some of the recent weeks, it's been close to 80% of the people flying or new so it's a really fantastic customer acquisition tool for us and we've been really encouraged by the results. So far and then and then also are.
We've noticed.
A very big pick up on returns it was.
Slightly tilted towards the airport as opposed to coming to the city.
Which is interesting, which also gives us some signals of new people that are out of New York that are coming from outside New York City into New York City.
You know for visits would it be for personal or business and that is very encouraging to because it's clear that the brand.
It is starting to expand.
Well beyond our core locations of operations.
Absolutely that's very helpful and just my second question going back to the December quarter that I think will you gave some puts and takes on how to think about revenue and seasonality I was hoping we could just kind of go through that to make sure I'm clear on that maybe ex Trinity.
Chuck you a sense of kind of where where do you think you might come out this quarter.
Well.
I can give you some guidance on on the seasonality historically.
The September quarter has been the largest by far right and some years would approach 50% of our revenues. These acquisitions have really serve to help smooth that out so what I would say kind of going forward pro forma for both Trinity and for Halyard, yet youre still going to see September would be the largest quarter, you know call it but call it closer.
Around 30% of their revenues and then March will continue to be the weakest quarter around 20% in and kind of an even split on the other two if that helps you with your model when one additional point, which we did point out which we didn't mention I think it is very important.
That those.
Those of you looking at our company and trying to forecast the impact of the Covid to understand that the meta mobility business and Trinity.
Are not mean.
Meaningfully affected if at all by the virus. Obviously this is we're now the largest transporter of human organs in the United States and it's nice to have that kind of buffer in the company are dead.
Is largely insulated from Covid.
Yeah, and then just on your question for this quarter you know all we'll say this at this point as you know, we're really pleased with the significant growth quarter to date versus both 2020 and 2019 for that December quarter.
But we'll have more to talk about them when we when we do that earnings release.
Awesome I guess I'll sneak one quick one and I apologize if I missed it but just how I know, it's early but how's the Newark route going so far kind of relative to your expectations.
It's going great. We're incredibly pleased I'm you know, we're seeing consistent growth.
In that route and you know, we're not going to break things out separately, but it's been a nice contributor to us equaling what we were doing pre pandemic.
You know I think ever ever we'd spend better than the one before you know, including the most recent week I think one important data point is that it is growing faster than it was growing.
Pre.
When we did the pre Covid launch, which just shows that the brand and the awareness of our services have increased over time.
Oh terrific very helpful. Thanks, so much.
The next question comes from Stephen Ju from Credit Suisse. Please go ahead.
Okay. Thank you so Rob from a practical operational perspective, do you anticipate that you'll retain the hell of jet brand in Canada or will you look to expand that.
Played a brand in the country and well are there any changes to the investment status either from a real estate or equipment standpoint, we should be thinking about for 2022 and 2023 as it pertains to <unk>. Thanks.
That's a great question I think what's really exciting for us about college, yet is that helicopters are a way of life with respect to transportation.
In Vancouver, a large percentage of the passengers are actually government employees. It is not considered an indulgence. It's just a way of getting around not unlike the ferries that you have there are other modes of transportation and it saves a tremendous amount of time, so it really goes across a broad socio economic.
Strata.
And when you look at the prices of $120.
It's a very it's a nice strong basic service. So we want you know they have a 30 year old brand, we're going to retain that brand to the extent we would do.
Mission to leisure routes like Whistler.
For skiing or going from Seattle to Vancouver, which would be the very first inner.
International Cross border service that we would launch I think as a higher end product those could use the blade brand, but for now they've done a fantastic job and we want them to keep doing what they're doing you want them to leverage our technology our data.
And potentially you know enjoys some of the benefits of enhanced margin by add on services, but for now but for now we are leaving their core roots with a hell of jet brand, but however, there will be awareness that.
Blade is behind the company.
And to your question on kind of the P&L impact if that's what you were getting asked or we don't think there's going to be a significant SG&A investment related to how he has yet this year in terms of the impact on on slight margin. We don't think that will be significant this year, either just given that they are at about 50%.
What they're usually doing so we'll keep watching and keep kind of updating folks on that but as of right now not a significant impact.
Thank you.
Again, if you have a question. Please press Star then one.
Our next question comes from Bill Peterson from Jpmorgan. Please go ahead.
Yes, hi, good morning, and thanks for taking the questions and nice to see the recent growth here.
Didn't didn't hear much about India, which you've talked about in the past I'm curious on what's happening there and I guess, maybe more broadly what other markets would you consider to be right for international expansion and let's say in the coming year or two.
How long would it take to implement the service you mentioned the potential for Vancouver to Seattle that that's one, but how long would it take to get that up and running or other services.
Should we assume these international expenses, it would be more through acquisition or organic growth.
It's a rob speaking.
With respect to new markets.
I am very focused and the team is very focused now on Europe, I think that you would likely see that by acquisition.
It is just the quickest.
Way to go to market.
It reduces risk.
Could do there are certain routes that would work or organically internationally, but to the extent, we find something that has a good fit.
And really has a.
Kind of friction.
This is a cost benefit to.
It's a commuters into travelers.
We're on it and we see it out there and we see any of those deals again at accretive.
You know at accretive valuations with respect to something like a <unk>.
You know Vancouver, Seattle, obviously, because it's cross border it would likely take more time than say a domestic point to point route.
I can't give you any real visibility as to.
Exactly how long that would take us because our work continues in that front is there anything when you just just on the India front.
When we evaluate what makes an urban air mobility market work, India has got all the elements and that you can save folks three to six hours with a with a 20 to 30 minutes flight that cost them $300 equivalent U S. Dollar so the customer value prop.
Incredibly strong there the issues there've been a lot of fits and starts with regards to Covid and so we see a huge opportunity. There don't don't have anything to announce specifically right now, but particularly given how supportive the Indian government has been of urban air mobility broadly.
Some huge opportunities and we'll consider or consider some incremental investment there and we'll talk about other ways. We can continue to expand that business, which as you recall is a JV. So we have a great structure through the royalty, where we get a lot of upside in our in our downside is relatively limited so just to.
Add on that I mean, obviously, it's a tremendous market a lot of friction turning five hour drives into 30 minute flights.
Specifically, one example is is from Mumbai.
Puneet, but I think that.
Additionally, in terms of the friendliness of the government. We are actually building hellebore today, that's something that would be very difficult to do in the U S. They are offering zero percent financing helicopter companies or any kind of aviation company too.
To operate in India.
And additionally, because of the medical system and how this joined at it is we do see a huge opportunity for men and mobility and drones that being said because of the structure as well as will mentioned, we have a minority stake in an option to buy up.
And in addition to that we're in.
Joining royalties so at the right time, if we want a deeper relationship with that company economically we have that option, but for now we want to play it out be as supportive as we can and when we feel it's a sufficient scale we may consider.
Expanding our exposure to that market.
Yeah.
Okay. Thanks for that color.
Jet charter I guess, you know looking at your you know your App. If you wanted to buy Aspen or Miami goes around I presume. The business is good I realize this is not.
Care focus for you guys, but can understand you know the market trends in that business.
Help us size, it and how to think about growth or any other expansion opportunities. If that's if that's important to the story.
Yeah.
Don't view it as a critical are key to the story, we do not market jet charter really as a courtesy.
Two our long standing passengers.
And to our Flyers, who over the past couple of years. So we didn't really do it as a courtesy I think that you know what we're seeing you know and this is really applicable to.
The jet companies that are out there not blade clearly.
Short age of aircraft owners using their own aircraft, which would normally be up for charter a lack of availability.
High pricing and a pilot shortage. So you know again not are not a core business. We do it you know time to time for our passengers is really on the periphery.
<unk> of our of our company's strategy.
So we keep at we monitor on it and also one of the big reasons, we like doing some of it is.
Is because we get to harmonize helicopters with the jets. So we liked it we like to show the value proposition for both commercial flights and private aviation of the benefits of having a helicopter land right by a plane.
I would say on that Bill is that it does give us some scale that helps in the meta mobility business. So if we can show more hours two operators that we used for met and mobility given that theres crossover on the equipment. It helps us give those hospitals, a better price and incentivize operators to give us that sort of $20 seven crew.
That you need for the men and mobility business. So it is it is strategic when you think about combining blade men and mobility Trinity Air Medical and blades retail business.
It's helpful to the cause there.
Okay. Thanks for that.
The next question is a follow up from Jason <unk> from Oppenheimer. Please go ahead.
Yeah, just a follow up just you made a point that.
The bulk of the.
Customers are new.
Anything you want to help us like what percent of people are choosing to be pass holders.
Relative to expectations or kind of any other metrics the way you measure that thing.
Not disclosing that but you know anecdotally, we obviously, we paused our early pass holders to enable them to use it again, we our people are buying passes but you know I think that it's possible that some people because of.
The what's been going on with the pandemic are saying you know what let me play by ear, because maybe I have some business trips now, but maybe I voted in the near future. So I'm not sure. It's a great time to assess.
This product we're essentially in order to for the passenger breakeven you've got to fly about 10 flights, so, but but generally people continue buying passes but I'm not sure at the right time to measure it.
Yeah, I agree and I think as we continue to build back the route options for airport, you'll see us start marketing in the past, there's a little bit more but.
Not a great time to have to look at it I would say.
And then the defeat flight flown number that I think has been given up the last few quarters will that be in the 10-Q.
Or do you have it handy you can share.
We we put it in the earnings press release there.
Around 20000 Flyer run rate right now for airport on it Yeah for airport.
Looking at the number that was like.
It's one three last quarter.
Yeah.
We will file our 10-K in the coming days here that we'll have that in there. Thank you.
Thanks, guys.
Thank you.
There are no more questions in the queue. This concludes our question and answer session I would like to turn the conference back over to Rob Wiesenthal for any closing remarks.
Thanks to everybody who joined the call I just want to reiterate how pleased we are with our results for the fiscal quarter as.
As well as what we are observing with respect to the performance to date for the quarter ending December 31st.
We appreciate your interest your support and both will and I remain available of.
Both directly and through ICR for any questions that you may have and we appreciate you listening this morning.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].