• Adjusted EBITDA: Improved by $17.8 million year-over-year in 2024.
• Revenue Growth: Increased 22.1% in Q4 2024 excluding Canada.
• Flight Profit: Increased 40% year-over-year in Q4 2024.
• Passenger Segment Adjusted EBITDA: $3.6 million for the full year 2024, an $8.6 million increase versus the prior year.
• Medical Segment Adjusted EBITDA Margin: Improved by 119.6% year-over-year with 13.7% revenue growth.
• Medical Revenue: Rose 13.7% year-over-year to $36.4 million in Q4 2024.
• Cash and Short-term Investments: $127.1 million at the end of 2024.
• Passenger Revenue (Excluding Canada): Increased 18% year-over-year.
• Adjusted EBITDA Margin (Passenger Segment): Expanded by over 16 percentage points year-over-year.
• Medical Segment Adjusted EBITDA Margin: Improved by over 700 basis points year-over-year to 15.1% in Q4 2024.
• Capital Expenditures: $5 million in Q4 2024, primarily for aircraft acquisition and maintenance.
• 2025 Revenue Outlook: Expected to be in the range of $245 million to $265 million.
• 2025 Passenger Revenue Outlook: Expected to be $90 million to $100 million.
• 2025 Medical Revenue Growth: Expected to be double-digit, though with some uncertainty.

• Warning! GuruFocus has detected 3 Warning Sign with SMSEY.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Blade Air Mobility Inc (NASDAQ:BLDE) achieved its first full year of adjusted EBITDA profitability, marking a significant milestone with a $17.8 million year-over-year improvement.
• Revenue growth was strong, with a 22.1% increase in Q4 2024 compared to the previous year, excluding Canada.
• The company's medical segment saw a 119.6% year-on-year improvement in adjusted EBITDA, driven by a 13.7% increase in revenue.
• Blade Air Mobility Inc (NASDAQ:BLDE) successfully launched a strategic partnership with Skyports Infrastructure to enhance its airport transfer services.
• The company introduced a new mobile app with enhanced user experience, which has received positive feedback from customers.

Negative Points

• Blade Air Mobility Inc (NASDAQ:BLDE) exited the Canadian market in 2024, which impacted overall revenue figures.
• The company anticipates variability in medical segment margins due to scheduled maintenance, which could affect profitability in the first half of 2025.
• There is uncertainty around the timing of eVTOL deployment, with expectations now pushed to late 2027 or early 2028 for the U.S. market.
• Passenger seat counts were slightly down year-on-year, reflecting a focus on optimizing schedules rather than maximizing volume.
• The medical segment experienced softer industry transplant volumes, leading to a cautious outlook for Q1 2025 revenue growth.

Q & A Highlights

Q: What are the catalysts for growth in Blade's passenger and medical businesses, and when can we expect to see passengers in eVTOL aircraft? A: William Heyburn, CFO, explained that cost-saving measures, such as exiting the Canadian market and restructuring European operations, will lead to improved passenger segment adjusted EBITDA in 2025. Growth in the medical segment will be driven by new customers coming online in Q2 and Q3. CEO Robert Wiesenthal mentioned that eVTOL aircraft might be seen in the Middle East by early 2026 and in the US by late 2027, with full commercialization possibly in early 2028.

Q: How does Blade plan to manage the transition to eVTOL aircraft, and will Blade own these aircraft? A: Robert Wiesenthal, CEO, stated that Blade is considering two models: enabling current operators to purchase eVTOLs with capacity usage agreements or partnering with OEMs who will own and operate the aircraft. Initially, there will be a cohabitation phase with helicopters, as eVTOLs will not immediately cover all routes and missions.

Q: Can you provide an update on Blade's European operations and their impact on profitability? A: William Heyburn, CFO, reported that several million dollars of hard costs were removed from European operations, contributing significantly to the improvement in passenger segment adjusted EBITDA. The ski season has been successful, and the company is optimistic about the upcoming summer season.

Q: How is Blade optimizing its passenger business, and what is the outlook for passenger margins in 2025? A: William Heyburn, CFO, explained that Blade is optimizing schedules and pricing to improve margins, focusing on offering seats when demand is high and reducing inventory during low-demand periods. This strategy, along with increased profitability from incremental seat sales, is expected to continue improving margins.

Q: What are the objectives of the pilot program at the downtown Manhattan heliport, and could it become a significant revenue contributor before eVTOLs emerge? A: Robert Wiesenthal, CEO, stated that the pilot program with Skyports aims to gather data on passenger flow and logistics. While the program is currently a pilot, it has the potential to become a significant revenue contributor if successful, as it adds a third location for Blade's operations in Manhattan.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.