Q4 2023 Blade Air Mobility Inc Earnings Call
Operator: and many more. Thank you for watching. And we will see you next time. And ladies and gentlemen, thank you for standing by. Mobility Fiscal Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode.
Okay.
Ladies and gentlemen, thank you for standing by welcome Blake.
<unk> Air mobility fiscal fourth quarter 2023 earnings call at this time, all participants are in a listen only mode.
Operator: After the speaker's presentation, there will be a question and answer session, and instructions will follow at that time. As a reminder, this call is being recorded. I would like now to turn the conference over to Mr. Lee Gold, Investor Relations. Please go ahead.
And patients that will be a question and answer session and instructions will follow at that time as well.
Reminder, this call is being recorded I would like now to turn the conference over to Mr. Legal Investor Relations. Please go ahead.
Lee Gold: Thanks and good morning. Thank you for standing by, and welcome to the Blade Air Mobility conference call and webcast for the quarter ended December 31, 2023. We appreciate everyone joining us today. Before we get started, I'd like to remind you of the company's forward-looking statement and safe harbor language. Statements made in this conference call that are not historical facts, including statements about future time periods, may be deemed to constitute forward-looking statements within the meaning of the Private Security 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 statement. We refer you to our SEC filings, including our annual report on Form 10-K filed with the SEC, for a more detailed discussion of the risk factors that could cause these difficulties.
Thanks, and good morning, Thank you for standing by and welcome to the Blade Air Mobility Conference call and webcast for the quarter ended December 31st 2020, 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 on this call.
This call that are not historical facts, including statements about future time period, maybe deemed to constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 East.
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 annual report on Form 10-K filed with the SEC for 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 as stated in our SEC filings later this claims.
Lee Gold: Any forward-looking statements provided during this conference call are made only as of the date of this call. As stated in our SEC filings, Blade disclaims any intent or obligation to update or advise these forward-looking statements except as required by law. During today's call, we will also discuss certain non-GAAP financial measures which we believe may be useful in evaluating our financial performance. A reconciliation of the most directly comparable consolidated GAAP financial measures to those historical non-GAAP financial measures is included in our earnings press release and our investor presentation. Our press release, investor presentation, and our Form 10-Q and 10-K filings are available on the investor relations section of our website at www.ir.blade.com. These non-GAAP measures should not be considered in isolation or as 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 Heyburn, Chief Financial Officer. I will now turn the call over to Rob Wiesenthal.
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 certain non-GAAP financial measures, which we believe may be useful in evaluating our financial performance.
Conciliation and the most directly historical comparable consolidated GAAP financial measures should those historical non-GAAP financial measures is provided in our earnings press release, and our Investor presentation.
Our press release Investor presentation, and our Form 10-Q.
And 10-K filings are available on the Investor Relations section of our website at IR Dot blade Dotcom. These non-GAAP measures should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
Hosting todays call are Rob Wiesenthal, founder and Chief Executive Officer of Blade and will Haven, Chief Financial Officer, I will now turn the call over to Rob Wiesenthal Bob.
Robert S. Wiesenthal: Thank you, Lee. Good morning, everyone. I'm very pleased with the progress we made during 2023, another record year for Blade. Our financial trajectory is strong, sound, and now tangible. In 2023, our full-year revenue increased 54.1% versus the prior year to $225.2 million, while flight profit increased by 84%, as our intense focus on margin enhancement initiatives generated results yet again this quarter. This led to a $10.8 million improvement in adjusted EBITDA versus the prior year period to negative $16.6 million for the full year 2023. I'm especially pleased to share that Blade Airport, our helicopter service between Manhattan and New York area airports, starting at $195 per seat, delivered positive flight profit, not just for Q3 and Q4, but also for the full year 2023.
Thank you Lee good morning, everyone I am very pleased with our progress we made during 2023 another record year for blade.
Natural trajectory is strong sound and now tangible in 2023, our full year revenue increased 54, 1% versus the prior year to $225 2 million well light profit increased by 84% as our intense focus on margin enhancement initiatives generated results yet.
Again this quarter this led to a $10 $8 million improvement in adjusted EBITDA versus the prior year period to negative $16 6 million for the full year 2023, I'm, especially pleased to share that blade Airport, our helicopter service between Manhattan, and New York area airports, starting at 195%.
[noise] delivered positive flight profit not just for Q3 and Q4, but also for the full year 2023.
Robert S. Wiesenthal: When we launched Blade Airport in 2021, we set up the unit economics to be profitable at just over two out of six seats sold per flight. Though we knew along the way that our growth and customer acquisition metrics were pointing in the right direction, the two-year ramp-up process required hard work from our operations team and patience from our investors. I'd like to take a minute to thank our flyer experience, flyer relations, operations, and on-the-ground logistics teams, and our ground transport partners at Mercedes-Benz USA for working so diligently to make this product a success.
Yeah.
Well I mean launched blade airport in 2021, we set up the unit economics to be profitable at just above.
Two out of six seats sold per flight.
And we knew along the way that our growth in customer acquisition metrics are pointing in the right direction, a two year ramp up process has required hard work from our operations team and patients from our investors I'd like to take a minute to thank our flyer experience why relations operations and on the ground logistic teams and our ground transport partners.
He has been the USA for working so diligently to make this product a success. We look forward to continued growth this year and beyond as we begin to transition EMEA electric vertical aircrafts or EV Tal in the coming years.
Robert S. Wiesenthal: We look forward to continued growth this year and beyond as we begin to transition to EVA, electric vertical aircraft, or EVTOL in the coming year. On the operational front, we are excited to announce the acquisition of eight fixed-wing jet aircraft to support our continued rapid growth in medical, enabling lower-cost service and improved availability for the hospitals we serve and improved unit economics for us. Our medical business has more than tripled since our acquisition of Trinity in 2021, presenting us with an opportunity to further leverage our scale through the purchase of a limited number of jet aircraft. By purchasing aircraft that we already use exclusively and by maintaining the existing operator and crews, we are well-positioned to capture incremental fixed-cost leverage without the risk of building a new medical aircraft operation from the ground up. We believe this change will further improve our competitive positioning without compromising the benefits of our Acid Light model.
On the operational front, we are excited to announce the acquisition of eight fixed wing jet aircraft to support our continued rapid growth in medical enabling lower cost service and improved availability for the hospitals, we serve and improved unit economics for us our medical business has more than tripled since our acquisition of Trinity in 2021.
Or is that ing us with an opportunity to further leverage our scale through the purchase of a limited number of jet aircraft by purchasing aircraft that we already use exclusively and by maintaining the existing operator and crews we are well positioned to capture incremental fixed cost leverage without the risk of building a new medical aircraft operation from the ground up.
We believe this change will further improve our competitive positioning without compromising the benefits of our asset light model as the vast majority of our medical flights and nearly 100% of our passenger flights will continue to be serviced by a very select group of third party owned and operated aircraft in the U S Europe and Canada.
Robert S. Wiesenthal: As a vast majority of our medical flights and nearly 100% of our passenger flights will continue to be serviced by our very select group of third-party owned and operated aircraft in the US, Europe, and Canada. After this rewarding year of strong growth, flight profit margin expansion, and cost structure improvements, we are now confident to begin providing guidance to our investors for revenue and adjusted EBITDA for the years ending December 31st, 2024, and 2025. For the current year, 2024, we expect to have positive adjusted EBITDA, and for 2025, we expect adjusted EBITDA in the double digit millions. I'll let Will provide additional details shortly, but first, I'd just like to emphasize that we do not take providing these public goals lightly, which is exactly why we waited to reach adequate scale in our medical and passenger businesses, which provided better forward visibility, enabling us to put a stake in the ground on achieving profitability. Now, I'll provide a few quick highlights from our fourth quarter ending December 31st, 2023. Flight profit increased 65.7% to $9 million in the current quarter versus $5.4 million in the prior year period, well ahead of our expectations.
After this rewarding year of strong growth slight profit margin expansion and cost structure improvements. We are now confident to begin providing guidance to our investors for revenue and adjusted EBITDA for the year ending December 31, 2024 and 2025.
For the current year 2024, we expect to have positive adjusted EBITDA and for 2025, we expect adjusted EBITDA in the double digit millions I'll, let will provide additional details shortly but first I'd just like to emphasize that we do not take providing these public calls lately, which is exactly why we waited to reach adequate scale.
In our medical and passenger businesses, which provide a better forward visibility, enabling us to put a stake in the ground and achieving profitability.
Now I'll provide a few quick highlights from our fourth quarter ending December 31, 2023 flight profit increased 65, 7% to $9 million in the current quarter versus $5 4 million in the prior year period, well ahead of our expectations driven by strong growth in our medical business and improved profitability across our U.
Robert S. Wiesenthal: Driven by strong growth in our medical business and improved profitability across our U.S. short-distance business, we're pleased to see flight profit growing significantly ahead of revenue, which increased 24.5% to $47.5 million in Q4 2023. I'll let Will provide some additional details around our focus on flight profit maximization, but I'm happy to report that in medical, our increased use of dedicated aircraft and own ground vehicles has helped us lower costs for our hospital customers while increasing average flight profit per trip. A win-win for this important business segment.
Short distance business.
We're pleased to see flight profit growing significantly ahead of revenue, which increased 24, 5% to $47 5 million in Q4 of 2023 I'll, let will provide some additional details around our focus on flight profit maximization, but I'm happy to report that in medical our increased use of dedicated aircraft on ground.
<unk> have helped us lower costs for our hospital customers, while increasing average flight profit per trip a win win for this important business segment star.
Robert S. Wiesenthal: Starting at passenger, short-distance delivered another quarter of significant growth, with revenue in Q4 2023 up 14% versus the prior year period, driven by improvements in Blade Airport, Europe, and Canada. As mentioned previously, we are especially pleased that Blade Airport alone delivered 40% plus year-over-year revenue growth in addition to positive flight contribution for the second quarter in a row. Our growth across passenger coupled with continued improved profitability in Blade Airport contributed to a $1.1 million increase in passenger segment adjusted EBITDA to negative $2.6 million in Q4 2023. In medical, revenue in Q4 2023 increased 48% versus the prior year period, driven by new hospital windows, business expansion with existing hospitals, and strong market growth.
Starting in passenger short distance delivered another quarter of significant growth with revenue in Q4, 2023 up 14% versus the prior year period, driven by improvements in Blade Airport Europe and Canada. As mentioned previously we are especially pleased that blade airport alone delivered 40% plus year over year.
Year revenue growth in addition to positive flight contribution.
For the second quarter in a row.
Our growth across passenger coupled with continued improved profitability and blade airport contributed to a $1 $1 million increase in passenger segment adjusted EBITDA to negative $2 6 million in Q4 2023.
In medical revenue in Q4, 2023 increased 48% versus the prior year period, driven by New hospital wins business expansion with existing hospitals and strong end market growth. As a reminder, this is 100% organic growth as we completed the Trinity acquisition in 2021.
Robert S. Wiesenthal: As a reminder, this is 100% organic growth as we completed the Trinity acquisition in 2021. Medical segment adjusted EBITDA increased 57.8% to $2.5 million in Q4 2023, demonstrating the strong operating leverage of this business. As expected, our new TOPS organ placement service launched in December as planned, and I am very pleased with the initial progress our team has made with the Keyblade customer, NYU Langone.
Medical segment adjusted EBITDA increased 57, 8% to $2 5 million in Q4 2023, demonstrating the strong operating leverage of this business as expected our new chops, Oregon placement service launch in December as planned.
And I am very pleased with the initial progress our team has made with a key customer and why you rank out we're staying focused on providing great service. It's early days of this exciting new business line, but we'll have a lot more to share on our growth plans in the coming months.
Robert S. Wiesenthal: We're staying focused on providing great service. It's the early days of this exciting new business line, but we'll have a lot more to share on our growth plans in the coming month. These profitability improvements in both segments coupled with a $0.7 million year-over-year decrease in our adjusted unallocated corporate expenses led to a $2.7 million improvement in adjusted EBITDA versus the prior year period to negative $5.2 million in Q4 2023. Adjusted EBITDA improved as a percentage of revenues to negative 11.1% in Q4 2023 from negative 20.9% in Q4 2022. This proves the operating leverage we have I'll let Will provide more details around T4, but I will say that despite this being a seasonally light quarter for Blade, I'm very pleased with our success on continued cost structure improvements and significant expansion to our dedicated aircraft fleet, highlighted by our acquisition of eight jet aircraft for our Oregon transportation business. And with $166.1 million in cash and short-term investments available to us, we believe Blade is in the best possible position to drive growth, both organically and by With that, I'll turn the call over to Will. Thank you, Rob.
These profitability improvements in both segments, coupled with a $7 million year over year decrease in our adjusted unallocated corporate expenses led to a $2 $7 million improvement in adjusted EBITDA versus the prior year period to negative $5 2 million in Q4 2023.
Adjusted EBITDA improved as a percentage of revenues to negative 11, 1% in Q4 of 2023 from negative 29% in Q4 of 2022. This cruise the operating leverage we have enabling us dramatically grow blade without adding significant overhead I'll let.
We'll provide more details around Q4, but I will say that despite this being a seasonally light quarter for blade I am very pleased with our success on continued cost structure improvements and significant expansion to our dedicated aircraft fleet highlighted by our acquisition of a jet aircrafts for Oregon Transportation business.
And with $166 1 million in cash and short term investments available to US. We believe blade is in the best possible position to drive growth, both organically and by acquisition with that I'll turn the call over to will.
William A. Heyburn: Before we dive in, I'd like to remind everyone that we manage our business primarily based on a slight profit rather than revenue, which can be influenced by a number of factors like fuel costs and landing fees, which we largely pass through, the jet charter market pricing, aircraft repositioning, and mixed shifts between air and ground and our medical business. Recently, we've made significant progress transitioning more and more of our medical flights to dedicated aircraft that provide us with fixed cost leverage and growth opportunities and are strategically based near our hospital. This has enabled us to improve our flight profit dollars per trip while reducing costs for our hospital customers and, more importantly, increasing availability with shorter call-out times, which can lead to better patient outcomes.
Thank you Rob before we guide then I'd like to remind everyone that we manage our business primarily based on slight profit rather than revenue, which can be influenced by a number of factors like fuel costs and landing fees, which we largely pass through that charter market pricing aircraft repositioning and mix shifts between Aaron Grant in our medical business recently, we've made.
Significant progress transitioning more and more of our medical flights to dedicated aircrafts that provide us with fixed cost leverage as we grow and are strategically based near our hospital customers. This has enabled us to improve our flight profit dollars per trip, while reducing costs for our hospital customers and more importantly, increasing availability was.
Quarter, Callout times, which can lead to better patient outcomes.
William A. Heyburn: When paired with our growing fleet of medical vehicles and new organ placement offering, we believe we have built the most cost-effective and reliable end-to-end organ logistics platform in the United States. That's why, even though we saw a slight sequential decrease in medical revenues from Q3 to Q4, medical flight profit increased sequentially over the same period. This shows us that our strategy is working.
Paired with our growing fleet of medical vehicles, and new Oregon placement offering we believe we built the most cost effective and reliable end to end organ logistics platform in the United States. That's why even though we saw a slight sequential decrease in medical revenues from Q3 to Q4 medical flight profit increase sequentially over the same period. This shows us that our strategy.
William A. Heyburn: At the same time, we improved our passenger flight profit margins by five percentage points in Q4 2024 versus the prior year, demonstrating our path to full-year profitability in the passenger segment, which we expect in 2025. I'll now walk through a few highlights from our business segments in the fourth quarter. We'll start with medical, where revenue increased 48% to $32 million in the fourth quarter of 2023, versus $21.6 million in the comparable 2022 period. Approximately 45% of this quarter's growth was driven by the addition of new customers, with the remainder driven by growth with existing clients, as well as strong overall market growth. Industry-wide, we continue to see longer-distance trips versus the prior year period, as transplant centers fly farther to enable more transplants, resulting in more flight hours and increasing the revenue opportunities for Blade. However, medical revenue was at the lower end of our expectations this quarter.
Working at the same time, we improved our passenger flight profit margins by five percentage points in Q4 2024 versus the prior year, demonstrating our path to full year profitability in our passenger segment, which we expect in 2025.
I'll now walk through a few highlights from our business segments in the fourth quarter.
I will start with medical where revenue increased 48% to $32 million in the fourth quarter of 2023 versus $21 $6 million in the comparable 2022 period approximately 45% of this quarter's growth was driven by the addition of new customers with the remainder driven by growth with existing clients as well as strong overall market growth.
Industry wide, we continue to see longer distance trips versus the prior year period as transplant centers quite farther to enable more transplants, resulting in more flight hours and increasing the revenue opportunity for blade.
Medical revenue was at the lower end of our expectations. This quarter compared to Q3 2023, we saw a slightly higher percentage of organ transport scrambling ground, only which we view as the typical ebb and flow while our increased use of dedicated aircraft helped reduce repositioning for our hospital customers use a dedicated aircraft generally will slightly decrease.
William A. Heyburn: Compared to Q3 2023, we saw a slightly higher percentage of organ transports traveling ground only, which we view as the typical ebb and flow, while our increased use of dedicated aircraft helped reduce repositioning for our hospital customers. However, use of dedicated aircraft generally will slightly decrease flight hours and revenue per air trip, while flight profit per air trip will increase. As discussed earlier, we're keenly focused on slight profit performance, which exceeded our expectations. On last quarter's call, we guided towards medical slight margins in the 18 to 19 percent range for Q4 2023, with continued steady improvement toward 20 percent plus in the future. I'm happy to report that Q4 2023 medical slight margin exceeded expectations at 20.1 percent, a four percentage point improvement year-over-year and a two percentage point sequential improvement versus Q3 2023.
Flight hours and revenue per air trip, while flight profit per aircraft will increase as discussed earlier were keenly focused on slight profit performance, which exceeded our expectations on last quarter's call. We guided towards medical flight margins in the 18% to 19% range for Q4 2023 with continued steady improvement towards 20%.
Plus in the future I'm happy to report that Q4, 2023 medical flight margin exceeded expectations at 21%, a four percentage point improvement year over year and a two percentage point sequential improvement versus Q3 2023 are faster than planned adoption of dedicated aircraft and owned ground vehicles.
William A. Heyburn: Our faster-than-planned adoption of dedicated aircraft and owned ground vehicles allowed us to achieve this important milestone more swiftly than originally anticipated. Medical segment flight profit was $6.4 million in the current quarter, an increase of $2.9 million, or 81%, versus $3.6 million in the comparable 2022 period. Medical segment adjusted EBITDA was up 58%, to $2.5 million in the fourth quarter of 2023, versus $1.6 million in the comparable 2022 period.
To achieve this important milestone more swiftly than originally anticipated.
Medical segment flight profit was $6 4 million in the current quarter, an increase of $2 9 million or 81% versus $3 6 million in the comparable 2022 period Medical segment. Adjusted EBITDA was up 58% to $2 5 million in the fourth quarter of 2023 versus $1 6 million in the comparable 2022.
William A. Heyburn: Looking forward in medical, we continue to expect single-digit percentage sequential revenue growth in the coming quarters, with flight margins above 20% for the entirety of 2024 and gradual improvements towards 25% plus by the end of the year, driven by our new aircraft supply arrangement. Q4 2023 Medical SG&A was a little heavier than we expected, given startup costs associated with TOPS and some end-of-year commission catch-up driven by great performance. We're expecting slightly lower medical SG&A and sequentially lower medical revenue in Q1, followed by low single-digit sequential growth as we ramp up TOPS and add logistics. As Rob previously mentioned, we're excited to announce the acquisition of eight Hawker 800 aircraft to bolster our medical operations. In our experience, the Hawker platform has a longer range and lower cost with more cargo capacity than other aircraft utilized by our competitors.
Period looking.
Looking forward in medical we continue to expect single digit percentage sequential revenue growth in the coming quarters with slight margins above 20% for the entirety of 2024 and gradual improvements towards 25% plus by the end of the year driven by our new aircraft supply arrangements.
Q4, 2023 medical SG&A was a little heavier than we expected given startup costs associated with tops and some end of year Commission catch up driven by great performance.
Expecting slightly lower medical SG&A in Q1 sequentially, followed by low single digit sequential growth as we ramp up tops and add logistics staff.
Rob previously mentioned, we're excited to announce the acquisition of eight Hawker 800 aircraft to bolster our medical operations and our experienced the Hawker platform is longer range and lower cost with more cargo capacity than other aircrafts utilized by our competitors. This new arrangement results in both lower cost for our customers and higher margins for blade.
William A. Heyburn: This new arrangement results in both lower costs for our customers and higher margins for Blade. Based on our average utilization of these aircraft in 2023, we should see a 5 to 10 percentage point flight profit margin uplift for flights utilizing these owned aircraft, which will help us to achieve our goal of 25% plus flight profit margins in medical over the coming quarters. We recently signed a purchase agreement and expect to start seeing improved margins during the month of March. I'd like to emphasize that these specific aircraft are among our most highly utilized, are under capacity purchase agreements today, and are strategically positioned in areas with significant demand from overlapping customers. Going forward, we will continue to assess aircraft acquisitions only in areas where we are already servicing significant customer demand.
Based on our average utilization of these aircrafts in 2023, we should see a five to 10 percentage points slight profit margin uplift for flex utilizing need to owned aircraft, which will help us to achieve our goal of 25% plus slight profit margins in medical over the coming quarters. We recently signed a purchase agreement and expect to start seeing improved margins.
During the month of March.
I'd like to emphasize that these specific aircrafts are among our most highly utilized are under capacity purchase agreements today and are strategically positioned in areas with significant demand from overlapping customers going forward. We will continue to assess aircraft acquisitions only in areas, where we're already servicing significant customer demand.
We remain committed to our asset light model and expect the significant majority of our flying to remain with third party owned and operated aircrafts. For example, the specific owned aircraft discussed today.
Our expected to represent only about 10% of blades overall flying activity at 2024.
William A. Heyburn: We remain committed to our asset light model and expect the significant majority of our flying to remain with third-party owned and operated aircraft. For example, the specific owned aircraft discussed today are expected to represent only about 10% of Blade's overall flying activity in 2020. The opportunity for further margin expansion is apparent. The $21 million acquisition cost will be funded through $11.7 million in cash and $9.3 million in existing deposits with the operator.
The opportunity for further margin expansion is apparent.
The $21 million acquisition cost will be funded through $11 7 million in cash and $9 3 million and existing deposits with the operator.
Turning to our passenger business in.
In short distance Q4 is always a seasonally light quarter, but we're pleased that revenue was up 14% to $10 7 million in the fourth quarter of 2023 versus $9 4 million in the comparable 2022 period, driven by an increase in seat volume and stronger pricing in our buy the seed airport product and increase revenue in Europe and Canada.
William A. Heyburn: Turning to our passenger business, in short distance, Q4 is always a seasonally light quarter, but we're pleased that revenue was up 14% to $10.7 million in the fourth quarter of 2023 versus $9.4 million in the comparable 2022 period, driven by an increase in seat volume and stronger pricing in our buy-the-seat-airport product and increased revenue in Europe and Canada. Blade Europe continued to be a positive contributor to flight profit this quarter and was flight profit positive for the full year 2023, meaning it covered all costs related to air and infraterminal ground transportation for our flyers.
Blade Europe continued to be a positive contributor flight profit this quarter and was slight profit positive for the full year 2023, meaning it covered all costs related to air in and for terminal ground transportation for our fliers.
And yet another revenues decreased 32, 4% to $4 8 million in the current quarter versus $7 1 million in the prior year period, driven primarily by our decision to discontinue bleed one our seasonal by the seat jet service between New York, and South, Florida, which was a $1 7 million dollar impact and softness in jet charter.
Passenger segment flight profit increased by <unk> 7 million or 37% to $2 6 million in the fourth quarter of 2023 from $1 9 million in the same period of 2022. This increase was attributable primarily to improved pricing and utilization in our by the seat Blade Airport products.
All of this led to a $1 1 million improvement and passenger segment adjusted EBITDA to negative $2 6 million in the fourth quarter of 2023 versus negative $3 8 million in the prior year period.
William A. Heyburn: And yet another revenue decreased 32.4% to $4.8 million in the current quarter versus $7.1 million in the prior year period, driven primarily by our decision to discontinue Blade One, our seasonal buy-to-seek jet service between New York and South Florida, which was a $1.7 million impact, and softness in jet charter. Passenger segment flight profit increased by 0.7 million or 37% to 2.6 million in the fourth quarter of 2023 from 1.9 This increase was attributable primarily to improved pricing and utilization and our by the seat blade airport product. All of this led to a 1.1 million improvement and passenger segment adjusted EBITDA to negative 2.6 million in the fourth quarter of 2023 versus negative 3.8 million in the prior year period. Despite the solid growth this quarter, Europe is performing below our original acquisition expectations. As such, we took a non-cash impairment charge on the intangible assets associated with our Asset Light aircraft operator.
Despite the solid growth this quarter Europe is performing below our original acquisition expectations as such we took a noncash impairment charge on the intangible assets associated with our asset light aircraft. Operator agreement. Despite this write down of $20 8 million next to the U S. Europe is the largest urban air mobility market <unk>.
<unk> and is poised to be an early adopter of electric vertical aircrafts. This was a strategic acquisition that enjoys exclusive infrastructure exclusivity for flying between Nissan Monica will want to buy the seat basis, and a devoted customer base that secures, our leading position as we transition to EMEA where <unk>.
Making great progress with our newly installed management team and expect improvement in both revenue and profitability in 2024.
On the corporate cost side, yet again, we were able to reduce our adjusted unallocated corporate expenses shrinking 11, 3% in Q4 2023 versus the prior year period, which when coupled with our flight profit growth across medical and passenger led to a $2 $7 million improvement in adjusted EBITDA versus the prior year period to negative.
William A. Heyburn: Despite this write-down of $20.8 million, next to the U.S., Europe is the largest urban air mobility market globally and is poised to be an early adopter of electric vertical aircraft. This was a strategic acquisition that enjoys exclusive infrastructure, exclusivity for flying between Nice and Monaco on a by-the-seat basis, and a devoted customer base that secures our leading position as we transition to EVA. We're making great progress with our newly installed management team and expect improvement in both revenue and profitability in 2024. On the corporate cost side, yet again, we were able to reduce our adjusted unallocated corporate expenses by 11.3% in Q4 2023 versus the prior year period, which, when coupled with our flight profit growth across medical and passenger, led to a $2.7 million improvement in adjusted EBITDA versus the prior year period to negative $5.2 million in Q4 2025.
$5 2 million in Q4 2023.
Turning to our guidance, we expect to be profitable on an adjusted EBITDA basis for the full year 2024 and to achieve double digit adjusted EBITDA in 2025 to get there will continue to employ the tools that led to a significant adjusted EBITDA improvement over the past year adjusted unallocated corporate expenses should stay.
Near the average of recent quarters, leading to low to mid single digit million dollars of savings in the current year 2024 versus 2023.
In passenger we expect a 2% to three point improvement and slight profit margin is blade airport builds on its first flight profit positive year to become a more material contributor to overall slight profit at the same time, we built enough scale and brand awareness to reduce our U S. Marketing spend we've also realized cost savings from the Finalization of our European <unk>.
William A. Heyburn: Turning to our guidance, we expect to be profitable on an adjusted EBITDA basis for the full year 2024 and to achieve double-digit adjusted EBITDA in 2025. To get there, we'll continue to employ the tools that led to our significant adjusted EBITDA improvement over the past year. Adjusted unallocated corporate expenses should stay near the average of recent quarters, leading to low to mid single-digit million dollars of savings in the current year 2024 versus 2023.
Integration together, we expect these items to have a low to mid single digit positive impact on adjusted EBITDA in 2024 with passenger segment EBITDA, turning positive to low single digit millions in 2025.
And medical slight profit margins should continue to expand towards 25% plus by the end of 2024, driven by increased use of dedicated aircrafts and the increased fixed cost leverage we're expecting from our recently acquired aircraft. This alone would result in mid to high single digit adjusted EBITDA improvement in 2024 based on just 2023 revenues.
William A. Heyburn: In passenger, we expect a two- to three-point improvement in the flight profit margin as Blade Airport builds on its first positive flight profit year to become a more material contributor to overall flight profit. At the same time, we've built enough scale and brand awareness to reduce our U.S. marketing. We've also realized cost savings from the finalization of our European integration. Together, we expect these items to have a low to mid single-digit positive impact on adjusted EBITDA in 2024, with passenger segment EBITDA turning positive to low single-digit millions in 2025. In medical, flight profit margins should continue to expand towards 25% plus by the end of 2024, driven by increased use of dedicated aircraft and the increased fixed cost leverage we're expecting from our recently acquired aircraft. This alone would result in a mid to high single-digit adjusted EBITDA improvement in 2024, based on just 2023 revenues.
New customer growth could push that into the higher end of the range and would come with some additional SG&A.
Though improvements will come gradually throughout 2024, we expect 25% plus flight profit margins in medical for the full year 2025, we expect that this margin expansion when coupled with just moderate growth in medical and passenger will get us to our adjusted EBITDA goal for 2025 and set us up for continued double digit adjusted EBITDA growth.
<unk> into the future.
With respect to our balance sheet, given our improving financial performance, we expect that the majority of our $166 million in cash and short term securities as of the end of fourth quarter of 2023 will be utilized for tactical acquisitions in our medical segment or further accretive investments in our aircraft supply base.
The best is yet to come and we're excited about the years ahead with that I'll turn it back over to Rob.
Thank you Bill in short we are proud of the accomplishments of our team to deliver outstanding fourth quarter results and we look forward to building on this momentum achieving adjusted EBITDA profitability this year and significant growth in this important metric in 2025 and beyond.
William A. Heyburn: New customer growth could push that into the higher end of the range and would come with some additional SG&A. Though improvements will come gradually throughout 2024, we expect 25% plus flight profit margins in medical for the full year 2025. We expect that this margin expansion, when coupled with just moderate growth in medical and passenger, will get us to our adjusted EBITDA goal for 2025 and set us up for continued double-digit adjusted EBITDA growth into the future. With respect to our balance sheet, given our improving financial performance, we expect that the majority of our $166 million in cash and short-term securities as of the end of the fourth quarter of 2023 will be utilized for tactical acquisitions in our medical The best is yet to come.
Now I'll turn it over to Lee for questions. Thanks, Rob I'll start by taking questions from the analyst community and we will follow with a few questions from the Se Q&A platform I will now turn it over to the operator for any analyst questions.
Thank you to ask a question. Please press star one on your telephone and wait for your name to be announced.
Withdraw your question. Please press star one again, please standby, while we compile the Q&A roster.
The first question comes from Jason <unk> with Oppenheimer. Your line is open.
Hi, This is Steve on for Jason. So just two questions from US number one we were just wondering if you could give some views on <unk> and secondly, if you could just clarify what you mean, when you say positive adjusted EBITDA in 'twenty four.
William A. Heyburn: And we're excited about the years ahead. With that, I'll turn it back over to Rob. Thank you, Will. In short, we are proud of the accomplishments of our team to deliver outstanding fourth-quarter results. And we look forward to building on this momentum, achieving adjusted EBITDA profitability this year, and significant growth in this important metric in 2025 and beyond. I'll now turn it over to Lee for questions.
Thanks for the question Steve.
As you know first quarter is seasonally a light quarter as well so it will look a lot like Q4.
No.
<unk> kind of.
10 ish percent growth year over year, which would put you in the high <unk> on revenue.
Then EBITDA kind of in a similar area to what you see for Q4.
Lee Gold: We'll start by taking questions from the analyst community, and we'll follow with a few questions from the Say Q&A platform. I'll now turn it over to the operator for the analyst question. Thank you. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.
When we say that we're going to be profitable on adjusted EBITDA basis in 2024, and we mean more than zero.
And we hope to exceed our own expectations there.
Thanks very much.
Please standby for the next question.
The next question comes from Bill Peterson with Jpmorgan. Your line is open.
Operator: Stand by while we compile the Q&A. The first question comes from Jason Helfstein with Oppenheimer. Your line is open. Hi, this is Steve, on behalf of Jason.
Hi, good morning, and thanks for taking the questions and thanks for providing that.
'twenty four 'twenty five targets.
On the on the targets the 24 outlook implies kind of a high single digit.
Operator: So just two questions from us. Number one, we were just wondering if you could give some views on 1Q. And secondly, if you could just clarify what you mean when you say positive adjusted EBITDA in 24. Thanks for the question, Steve. Look, as you know, the first quarter is a seasonally light quarter as well.
Revenue growth to mid points.
With a fairly tight range. So I guess, what's complicated what's contemplated between the low end and the high end on that and then for 'twenty five it actually implies an acceleration so what's driving that if you can kind of maybe break that out between passenger and met on mobility and provide some guidepost on that that'd be helpful.
Operator: So it'll look a lot like Q4. You know, expect kind of a 10-ish percent growth year-over-year, which would put you in the high 40s on revenue. And then EBITDA, kind of in a similar area to what you see for Q4. When we say that we're going to be profitable on a just-as-EBITDA basis in 2024, we mean more than zero, and we hope to exceed our own expectations there for a moment. Please stand by for the next question. The next question comes from Beale. J.P. Morgan, your line is out. Hi, good morning.
Sure Bill. So there is there is a little bit of noise in the year over year comp between 2023 and 2024, because as you know we discontinued deployed one seasonal jet product.
Between New York, and South, Florida, So that was kind of a mid to high single digit million dollars of revenue. So youre fighting that a little bit which is why on a year over year you see less in terms of the overall headline growth rate, that's probably the biggest factor coupled with just generally we're seeing slightly softer.
Operator: And thanks for taking the questions. And thanks for providing the 24 and 25 targets. On the targets, the 24 outlook implies kind of a high single-digit revenue growth at the midpoint with a fairly tight range. So I guess what's contemplated between the low end and the high end on that? And then for 25, it actually implies an acceleration.
Jet charter there.
And then remind me the second half of your question.
Well I like the low end and the high end of the range and it seems like a fairly tight range, but then I think you already answered the second part about 25 implies acceleration I think that just I guess normalized.
But.
Yes, the biggest the biggest drivers in the range of our new customer acquisition on the medical side.
Operator: So, you know, what's driving that? If you can kind of maybe break that out between passenger and metamobility and provide some guideposts on that, that would be great. Sure, Bill. So, you know, there's a little bit of noise in the year-over-year comp between 2023 and 2024 because, as you know, we discontinued the Blade One seasonal jet product between New York and South Florida. So that was kind of a mid-to-high single-digit million dollars of revenue.
Where we are in the passenger business and what Youre seeing in the numbers, especially this quarter as youre seeing flight profit grow.
Really strongly and Thats, a result of putting more people on the same number of flights, particularly in the blade airport products. So we get great incremental margins as we sell a seat on a flight thats already going as you're well aware and so on the passenger side.
The story is really about improving that flight profit on the medical side.
We've got a big new customer pipeline, both on the top side and on the logistics side and so the range really represents when do we think we'll win those new customers.
Operator: So you're fighting that a little bit, which is why, year-over-year, you see less in terms of the overall headline growth rate. That's probably the biggest factor, coupled with just generally we're seeing slightly softer jet charter demand there, and then remind me the second half of your question. Well, like the low end and the high end of the range, it seems like a fairly tight range. But then, you know, I think you already answered the second part about 25, which implies acceleration.
How many of them, what we get it's Rob leasing, but I think I'd also add on the passenger side.
We're seeing strong growth in terms of our.
European needs to Monaco route which is.
Before blade started the largest.
Operator: I think that's just, I guess, normalized growth. Yeah, the biggest the biggest drivers in the range are, you know, new customer acquisition on the medical side. I think where we are in the passenger business and what you're seeing in the numbers, especially this quarter, is that you're seeing flight profit grow really strongly. And that's a result of putting more people on the same number of flights, particularly in the Blade Airport product. So we get great incremental margins as we sell a seat on a flight that's already going, as you're well aware. And so on the passenger side, the store is really about improving that flight profit on the medical side. We've got a big new customer pipeline, both on the top side and on the logistics side. And so the range really represents when do we think we'll win those new customers? And how many of them will we get? My name is Rob Wiesenthal.
Route in the World in terms of a by the seat business for our vertical transport for customers competitive with ground.
And as we restarted that line will be below the line as to countries that grew.
With us today.
We've been very pleased with the growth.
Okay. Thanks Robin.
Second question I had I.
I guess, a few questions around the acquisition of the.
<unk> hundred aircrafts so.
It seems like these were used it already used for medical so I guess what is buying these aircrafts, how does that benefit blade versus.
I guess it seems like they are used for medical anyway. So like why do you need to buy them.
What does the timing it sounds like March are all eight going to be acquired in March and then I guess, how much do these aircrafts then address the current medical business.
Yes.
We can kind of try to figure out the margin uplift.
Lindsay.
Yes, so a couple of things at play there Bill first we've just grown so quickly in medical we've actually kind of outgrown the balance sheets of some of our operators and so we were supporting the growth that our operators with some deposits youll notice that almost half of the acquisition of these aircraft is funded by the.
Robert S. Wiesenthal: I think I'd also add on the passenger side, you know, we're seeing strong growth in terms of our European needs on the Monaco route, which is, you know, before Blade started, the largest route in the world in terms of a by the seat business for vertical transport for customers competitive with ground. And as we restarted that line, what we call the line between those two countries, the growth has been We've been very pleased with the growth. Thanks, Robin and Will. And the second question, I guess there are a few questions around the acquisition of the Hawker 800 aircraft. So it seems like these were used and are already used for medical purposes. So I guess who is buying these aircraft? How does that benefit blade versus? You know, I guess it seems like they're used for medical purposes anyway, so why do you need to buy them? What is the timing? It sounds like March is coming.
<unk>, we already have down with the operators. So we kind of got to a point, where if we're putting deposits down at this size, we might as well on the aircraft and then the reason that we want to own the aircraft.
Because it helps us benefit from more pass through economics. So it goes back to getting those economies of scale and that operating leverage as we fly more or agreements right now do allow us to pay a little bit less once we meet that full year guarantee of flight hours.
But youre not getting the continued cost leverage as you fly more above that now for these aircraft and we're only focused on doing things like this in areas, where we've got multiple contracts with overlapping centers lots of demand more than we could possibly handle with just suggests that we own and knows case.
William A. Heyburn: Are all eight going to be acquired in March? And then, I guess, how much do these aircraft then address the current medical business? You know, I guess we could kind of try to figure out the margin, let's do a new balloon. Yeah, so a couple things that pay their bill. First, we've just grown so quickly and medical, we've actually kind of outgrown the balance sheets of some of our operators. And so we were supporting the growth of our operators with some deposits; you'll notice that almost half of the acquisition of these aircraft is funded by deposits we already have down with the operators. And we kind of got to a point where if we're putting deposits down of this size, we might as well own the aircraft.
<unk> will capture a lot more of the fixed cost leverage when we own the aircrafts versus the capacity purchase agreement, where you pay X for the first why hours a year and then you pay X minus 15% afterwards.
<unk>.
If we look at it here on the medical side, when you're using a sweating the assets so to speak using 100% of that tie you don't need.
That middleman in between.
Showing up that margin okay.
William A. Heyburn: And then the reason that we want to own the aircraft is because it helps us benefit from more pass-through economics. So it goes back to getting those economies of scale and that operating leverage as we fly more. Our agreements right now do allow us to pay a little bit less once we meet that full year guarantee of flight hours, but you're not getting the continued cost leverage as you fly more above that. Now, for these aircraft, and we're only focused on doing things like this in areas where we've got multiple contracts with overlapping centers, lots of demand more than we could possibly handle with just the jets that we own. And those cases will capture a lot more of the fixed cost leverage when we own the aircraft versus the capacity purchase agreement where you pay x for the first y hours a year, and then you pay x minus 15% afterwards. Phil, just one quick way we look at it here. On the medical side, when you're sweating the acid, so to speak, using 100% of that time, you don't need, kind of, that middleman in between, you know, chewing up that margin, okay?
And so as long as Youre getting the hours right and when we do asset light we have other people that whether its new gathering tours on the helicopter side on the medical side of the 24 seven business you're sweating the assets and the third point, we are leaving these kind of deposits at the O&M to capture that margin and also you have more flexibility for the customer we can position <unk>.
Aircraft right by these hospitals, which means.
Greater flight margin profit dollars for us at faster accessibility for our customers and at a better deal frankly, it's a win win as well set.
So just on the timing and I guess, how much of the medical business you can address with us.
It's still going to be a really small part of our business.
Roughly 10% of our flying in 2024, it should be on these aircrafts.
We're going to remain asset light the vast majority of our flying is going to be with aircrafts that are third party owned and operated but if we see situations, where it's extremely accretive on a cash flow basis to own aircraft tactically.
Economic animals, and we will do that.
Okay.
Okay. Thank you.
Thanks Bill.
As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.
Robert S. Wiesenthal: And so as long as you're getting the hours, right, and when we do asset life, we have other people doing this news gathering or tours on the helicopter side. On the medical side, it's a 24-7 business; you're sweating the assets. And at a certain point, you're leaving these kind of deposits.
One moment for the next question.
The next question comes from Edison, you with Deutsche Bank. Your line is open.
Thanks for taking our questions and congrats on a quarter.
We have quite a bit of cash as you as you mentioned and it seems like a decent amount could be deployed.
William A. Heyburn: If you own it, you capture that margin. And you also have more flexibility for the customer. We can position aircraft right by these hospitals, which means greater flight margin profit dollars for us and faster accessibility for our customers. And a better deal, frankly, it's a win-win, as Will said, just on the timing and I guess how much of the medical business you can address with this is still going to be a really small part of our business. You know, we think roughly 10% of our flying in 2024 should be on these aircraft. We're going to remain asset light; the vast majority of our flying is going to be with aircraft that are third-party owned and operated. But if we see situations where it's extremely accretive on a cash flow basis to own aircraft tactically, you know, we're economic animals, and we'll do that. Yeah, thank you.
Type of acquisition did you mean that in terms of adding more aircraft or <unk>.
Companies or or both.
It's both Edison.
I think that will set when we the ability to strategically place assets in terms of aircraft are out with their hospitals in half.
Have them have frankly.
Really good solid deals and us to enjoy better economics something were to continue to explore but again, it's going to be opportunistic we are extremely focused on tactical M&A.
In the medical area things that.
Basically our along the chain in terms of what we see with our business and leverage the relationships we have with the hospitals, obviously, what we've started organically from that site with a top program is a good example of that but there are a lot of ancillary businesses that can leverage our relationships and our core competencies.
William A. Heyburn: Thanks, Bill. As a reminder, to ask a question, please press star 1 on your telephone and wait for your name to be announced. One moment for the next question. The next question comes from Edison Yu with Dauchie Bank. Your line is open.
Both in working with hospitals and in transportation overall that so we do see a fair amount of opportunities to deploy that capital.
Okay.
Understood.
And then separately I know you mentioned Europe was was performing a bit below and you took a charge I guess how are we feeling about that.
Operator: Thanks for taking our questions and going ahead to the quarter. You have quite a bit of cash, as you mentioned, and it seems like a decent amount could be deployed on some type of acquisition. Did you mean that in terms of adding more aircraft or companies, or both?
In 2425 are we going to see.
Quite a bit of improvement.
What do we sort of.
Robert S. Wiesenthal: I think that, as Will said, when we have the ability to strategically place assets in terms of, you know, aircraft with our hospitals and have, you know, have them have, frankly, really good, solid deals and us to enjoy better economics, something we're going to continue to explore. But again, we're going to be opportunistic. We are extremely focused on tactical M&A in the medical area, things that basically are along the chain in terms of what we do with our business and leverage the relationships we have with the hospitals. Obviously, what we've started organically with the TOPS program is a good example of that, but there are a lot of ancillary businesses that can leverage our relationships and our core competencies, both in working with hospitals and in transportation overall. So we do see a fair number of opportunities to deploy that capital. And then separately, I know you mentioned Europe was...
Looking at going forward.
Yes, I think look.
What you really saw it here with Europe, we knew it was delayed integration.
We now have a brand new management team in place both the CEO.
And the Chief operating officer, so that was a little bit late going.
And right now as I said, we're seeing really strong performance in terms of the <unk> business between Nissan Monaco.
And we expect growth in.
For this year and for next year in that business and improve profitability.
So I think we feel good about the business obviously.
That it started earlier.
But.
This remains.
Again before blade. This was the number one market in the world.
We had a dominant market share here, we continue to have.
Robert S. Wiesenthal: I guess how are we feeling about that in 2024-25? Are we going to see quite a bit of improvement? What are we sort of looking forward to? uh, looking forward to going, Yeah, I think, look, I, you know, I, what you really saw here with Europe, we knew it was delayed integration. We now have a brand new management team in place, both the CEO and the Chief Operating Officer. So that was a little bit late going.
Dominant market share in almost all of these routes. So yes, I think I think we feel like we're in a pretty good place when it comes to Europe, and just took a little bit longer than we expected.
Great. Thank you.
I show no further questions at this time. This concludes the analyst Q&A I would now like to turn the call back over to Lee for additional questions.
Robert S. Wiesenthal: And right now, as I said, we're seeing really strong performance in terms of the buy-to-seed business between Nice and Monaco. And, you know, we expect growth in this year and for next year in that business and improved profitability. So I think we feel good about the business. Obviously, we wish that it had started earlier.
Thank you as mentioned, we will be taking questions for our sake Q&A platform.
The first question is regarding the current lease agreements.
Your city and we specify how many more years on these landing zone agreements also.
So what is stopping competition from taking these landing zones.
Thanks, Lee I'll take that question again, Rob Wiesenthal near.
Robert S. Wiesenthal: But, you know, this remains, you know, again, before Blade, this was the number one market in the world. We had, you know, dominant market share here; we continue to have dominant market share on almost all these routes. So, yeah, I think we're, I think we feel like we're in a pretty good place when it comes to Europe. And it just took a little bit longer than we expected.
New York City is without question.
Important market in the U S for vertical transportation, especially when you think about our blade airport products with 28 million people going by car between the New York City airports.
In Manhattan, a year. This is a big market opportunity the west side, which is clearly our flagship. It's so large that we have both have a departure and arrival lounge and we're right next to Hudson yards, where 50000 people live work and recreate.
Operator: Great. Thank you. I have no further questions at this time.
Operator: This concludes the analyst Q&A. I would now like to turn the call back over to Lee for additional questions. Thank you.
Every day.
Robert S. Wiesenthal: As mentioned, we'll be taking questions from our state Q&A platform. The first question is regarding the current lease agreements in New York City, and can we specify how many more years on these landing zone agreements? Also, what is stopping competition from taking these landing zones from Blake? Thanks, Lee. I'll take that question. Again, Rob Wiesenthal.
That is a deal that is both exclusive by the seat basis and our.
At least there is coterminous with the operator has been there for over 40 years and has no expectations of.
Leaving on the east side say almost the same situation, where we are coterminous with the operator, who has been operating there for dozens of years before that on six history. So we have a terrific relationship with Atlantic and also in that specific location. There literally is actually no footprint left in order to build any kind of building its basically.
Robert S. Wiesenthal: New York City is without question the most important market in the U.S. for vertical transportation, especially when you think about our Blade Airport product, with 28 million people going by car between the New York City airports in Manhattan every year. This is a big market opportunity. The West Side, which is clearly our flagship, is so large that we both have a departures and an arrival lounge, and we're right next to Hudson Yards, where 50,000 people live, work, and play every day. That is a deal that is booked exclusively on a by-the-seat basis, and our lease there is coterminous with the operator who's been there for over 40 years and has no expectations of leaving. On the East Side, it's almost the same situation where we are coterminous with the operator who's been operating there for dozens of years and before that on 60th Street.
The blade facility.
And Jen.
General Aviation it gives us a competitive moat because at the end of the day. If you want to do that be in this business, whether it be with helicopters or EBITDA or you may call <unk> you have to have a place to process passengers.
Let them set and move those aircraft very very quickly in two to five minute turns you can't do it on the sidewalk. So we do believe that capped events infrastructure is critical to our strategy.
The following question is another transplant company has claimed 98 contracts with hospitals.
William A. Heyburn: So we have a terrific relationship with Atlantic, and also, in that specific location, there literally is absolutely no footprint left in order to build any kind of building. It's basically the Blade facility and General Aviation. It gives us a competitive moat because, at the end of the day, if you want to be in this business, whether it be with helicopters or EVA or what you may call EVTOL, you have to have a place to process passengers, get them set up, and move those aircraft very, very quickly in two to five minute turns. You can't do it on the sidewalk.
This exclusive contracts and how many lost customers maybe they have.
I'll take that one this is this is will.
We haven't lost any customer contracts.
Not sure with the specific question is relating to but I will say.
There's a bunch of device companies out there that have the same customers as us we both work with the same hospitals and.
As far as we're concerned.
Robert S. Wiesenthal: So we do believe that captive infrastructure is critical to our strategy. The following question is, another transplant company has claimed 98 contracts with hospitals. Are these exclusive contracts, and how many lost customers might they have? I'll take that one.
A great thing Thats increased the number of organs that are available for transplant. So it's it's great and.
We're focused on our job that we do have long term contracts with hospitals to perform which is to handle all the Aaron Brown logistics in and we think we do it better than anybody at the right price.
William A. Heyburn: This is Will. We haven't lost any customer contracts. Not sure what the specific question is relating to, but I will say there are a bunch of device companies out there that have the same customers as us. We both work with the same hospitals. And as far as we're concerned, they're doing a great thing that's increased the number of organs that are available for transplant. So it's great.
But haven't lost any of those contracts.
An additional question about medical and how do you see competition in the metal mobility space like Trans medics. It's.
Its rod speaking, let me take this one.
I think transmit X is a terrific device in terms of Hercules devices. There are a lot of devices out there that can lengthen the time and in Oregon can be outside the body, both for our core business and heart liver and lung and frankly, we recently did that work.
Robert S. Wiesenthal: And we're focused on our job that we have long-term contracts with hospitals to do, which is to handle all the air and ground logistics. And we think we do it better than anybody at the right price and haven't lost any of those contracts. An additional question about medical is, how do you see competition in the metamobility space, like transmedicine? It's Rob speaking. Let me take this one. I think TransMedics has a terrific device in terms of herpes devices. There are a lot of devices out there that can lengthen the time that an organ can be outside the body, both for our core business and heart, liver, and lung.
The longest ever from Boston to Alaska, using a Paragon X device the ability to travel longer distance is a big part of why we're so excited and youre going to see so much growth in our Oregon trends.
And our Oregon Transport business, we are now the largest organ tramp air transporter in the United States. We continue to expect that we expect that to continue to happen and the more of the devices that are out there and the more excited we are.
Robert S. Wiesenthal: And frankly, you know, we recently did the longest trip ever from Boston to Alaska using a Paragonix device. The ability to travel longer distances is a big part of why we're so excited, and you're going to see so much growth in our organ transport business. We are now the largest organ air transporter in the United States, and we continue to expect that. We expect that to continue to happen, and the more devices that are out there, the more excited we are. And frankly, this is all we do. We don't make machines.
And frankly this is all we do we don't make devices. So we are focused on logistics and servicing servicing our customer and making sure we get our doctors in Oregon safely and quickly and cost effectively to where they need to be I think that ability to focus on one thing thats great, but we're excited about these device companies.
Supercharging our business.
Robert S. Wiesenthal: We are focused on logistics and servicing our customers and making sure we get our doctors and organs safely and quickly and cost-effectively to where they need to be. I think that ability to focus on one thing is great, but we're excited about these device companies, you know, really supercharging our business. Our last question is, what are the operating costs of EVA and how does this compare with Blade's traditional helicopters? Do you expect to see a complete replacement of helicopters by EVA? A great question, a common question. Let me take a crack at it.
Our last question is what are the operating cost of EMEA and how does this compare with blades traditional helicopters do you expect to see a complete replacement of helicopters by Eva in the future.
Question <unk> question.
Let me, let me take it back at it.
So look at the end of the day, it's all about vertical transportation.
And in a way that is cost competitive with grabs right now with sins blade is one of one and doesn't have competition.
Really in the <unk> market.
We're competitive with ground and frankly in New York, where we start at 195 four airports at $95 for the purchase of an airport path we are competitive.
Robert S. Wiesenthal: So look, at the end of the day, it's all about vertical transportation in a way that is cost competitive with ground. Right now, since Blade is one of a kind and doesn't have competition, really, in the by-the-seat market, we're competitive with ground. And frankly, in New York, where we start at $195 for an airport seat and $95 for the purchase of an airport pass, we are competitive. When it comes to operating costs in the early years, we do believe the operating costs of electric vertical aircraft will be pretty much about the same, maybe slightly less, and it will take some time before those costs go down.
When it comes to the operating costs in the early years, we do believe the operating cost of electric vertical aircrafts will be pretty much about the same maybe slightly less and it will take some time before those costs go down but overall the costs will go down, but the big opportunity for our investors is the fact that because they are quiet.
Emission free there'll be more places to land not really so much the operating costs focus on the fact that the great unlock is that there are more places link every pair of landing zones is a brand new business for blade. So right now our strategy is to capture many of these pre existing landing zones that we can have our customers the routes and as more of these <unk>.
Robert S. Wiesenthal: But overall, the costs will go down. But the big opportunity for our investors is the fact that, because they're quiet and emission-free, there'll be more places to land. Not really so much the operating costs.
Robert S. Wiesenthal: Focus on the fact that the great unlock is that there are more places to land. Every pair of landing zones is a brand-new business for Blade. So right now, our strategy is to capture as many of these pre-existing landing zones that we can, have our customers, and the routes, and as more of these landing zones open up when these new aircraft are available, the bigger our business becomes. There'll be a cohabitation phase because a lot of the aircraft can't take six people like our aircraft can or can't take 1,200 pounds like ours can. Some of them don't even have air conditioning.
Amazon's open up when these new aircraft are available the bigger business becomes there'll be a cohabitation phase there is a lot of the aircraft can take six people like fly our aircraft can or can't take 12 pounds like ours can some don't even have air conditioning. It can take a while but expect a cohabitation phase where we have a portfolio of different vertical air transportation options.
Both including EMEA and conventional helicopters.
This concludes our question and answer session. At this time I will turn the call back to Bob. Thank.
Thank you Lee.
I can't be I can't overemphasize, how proud I am of this has been a long road since we've gone public to be in the position that we now have the confidence to give guidance to our investors of our first year as a public company of profitability.
Robert S. Wiesenthal: It can take a while, but expect a cohabitation phase where we have a portfolio of different vertical air transportation options, both including EVA and conventional helicopters. This concludes the question and answer session. At this time, I'll turn the call back to Rob. Thank you, Lee. I can't be, I can't overemphasize how proud I am of, you know, this has been a long road since we went public to be in the position that we now have the confidence to give guidance to our investors about our first year as a public company of profitability on a just and even dollar basis for this year and double-digit profitability in terms of dollars, millions of dollars for 2025. So we feel good about it.
On adjusted EBITDA basis for this year and double digit profitability in terms of dollars millions of dollars for 2025. So.
So we feel good about it we cannot take this slightly as I said before and we look forward to further encouraging.
News as we go forward and appreciate everyone on this call support.
Okay.
Ladies and gentlemen, thank you for participating. This concludes today's program you may now disconnect.
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Robert S. Wiesenthal: We do not take this lightly, as I said before, and we look forward to further encouraging news as we go forward and appreciate everyone on this call's support. Ladies and gentlemen, this concludes today's program. You may now disconnect. Thank you.
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