Blade Air Mobility Reports Financial Results for the Second Quarter Ended June 30, 2023

• Second quarter ended June 30, 2023 revenue up 71% versus the prior year to $61.0 million
• Medical revenue of $34.4 million in Q2 2023 up 99% versus the prior year period, up 29% sequentially versus Q1 2023
• Short Distance revenue up 75% in Q2 2023 versus the prior year period, reflecting our acquisition of Blade Europe, robust demand and pricing growth in Blade Airport, and continued growth in the Northeastern United States
• Flight Profit⁽¹⁾ increased 103% in Q2 2023 versus the prior year period to $10.4 million

NEW YORK, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Blade Air Mobility, Inc. ( BLDE, "Blade" or the "Company"), today announced financial results for the second quarter ended June 30, 2023.

"Blade's record performance this quarter illustrates the value proposition of our diversified business model," said Rob Wiesenthal, Blade's Chief Executive Officer. "In MediMobility Organ Transport, we continue to benefit from new organ preservation technologies that are expanding the market, as well as the addition of a number of new transplant center and organ procurement organizations. In our Passenger business, we saw strong volume and pricing growth in the Northeast, particularly for our 5-minute helicopter transfers between Manhattan and New York area airports."

"Blade delivered significant year over year improvement in Adjusted EBITDA this quarter, driven by 172% growth in Medical Segment Adjusted EBITDA and cost savings across our corporate platform," said Will Heyburn, Blade's Chief Financial Officer. "Our cost efficiency program is showing meaningful results with Adjusted Unallocated Corporate Expenses, which relate to the overall Blade shared services platform, decreasing 12% in Q2 2023 versus the prior year period, despite our significant 71% revenue growth. We expect that continued growth and cost efficiencies will lead to further year over year improvement in Adjusted EBITDA in the second half of the year."

"The FAA's blueprint for air mobility, released in July, outlines a gradual transition to Electric Vertical Aircraft, or EVA, utilizing existing air traffic control systems and infrastructure. This approach validates Blade's unique strategy, focused on our exclusive Blade terminals at existing heliports and airports in the most active air mobility corridors operating around the world today," stated Melissa Tomkiel, Blade's President. "As a result, Blade is best positioned to enable the gradual transition of today's air mobility fliers from helicopters to EVA, which we expect to expand the addressable market for our Passenger segment through lower cost, emission-free, and near-silent flight."

Second Quarter Ended June 30, 2023 Financial Highlights

• Total revenue increased 71.2% to $61.0 million in the current quarter versus $35.6 million in the prior year period. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, revenue for the second quarter ended June 30, 2023 would have increased approximately 42.3%⁽¹⁾ on a constant currency basis.
• Flight Profit⁽¹⁾ increased 102.9% to $10.4 million in the current quarter versus $5.1 million in the prior year period, driven by strong growth in our MediMobility Organ Transport business, the contribution from our Blade Europe acquisitions, and improved growth and profitability across our US Short Distance business.
• Flight Margin⁽¹⁾ improved to 17.0% in the current quarter from 14.3% in the prior year period, driven by increased use of dedicated aircraft in our MediMobility Organ Transport business line, which results in lower costs, the acquisition of Blade Europe, which operates at a higher average Flight Profit versus our corporate average, improved pricing and utilization in our New York by-the-seat Airport Transfer product, and a reduction in spot market jet charter costs, which decreased more quickly than our jet charter pricing.
• Short Distance revenue increased 75.0% to $19.2 million in the current quarter versus $11.0 million in the prior year period. Growth was driven by our acquisition of Blade Europe, strong volume and pricing growth in our Blade Airport service, and growth across our US Short Distance business lines. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, Short Distance revenue for the second quarter ended June 30, 2023 would have increased approximately 5.3%⁽¹⁾ on a constant currency basis.
• MediMobility Organ Transport revenue increased 99.4% to $34.4 million in the current quarter versus $17.2 million in the prior year period, driven by the addition of new transplant center customers, continued growth with existing customers, and strong market demand. Revenue increased 28.5% sequentially in Q2 2023 versus Q1 2023. MediMobility Organ Transport growth was entirely organic given Blade's acquisition of Trinity Air Medical closed in September 2021.
• Jet and Other revenue decreased (0.2)% to $7.4 million in the current quarter versus $7.4 million in the prior year period, as an increase in jet charter volume was offset by a decline in the average price per jet charter trip.
• Net loss was $12.2 million in the quarter versus a net income of $8.4 million in the prior year period, driven primarily by an unfavorable change in the fair value of warrant liabilities of $(2.5) million (compared to a favorable change of $19.3 million in the prior year period).
• Adjusted EBITDA⁽¹⁾ loss improved to $(4.4) million in the current quarter versus $(6.1) million in the prior year period, and improved as a percentage of revenues to (7.3)% in the current quarter from (17.2)% in the prior year period. The improvement was driven by a 172% increase in Medical Segment Adjusted EBITDA to $3.0 million in the current quarter, coupled with a $0.8 million improvement in Unallocated Corporate Expenses and Software Development to $(5.4) million, partially offset by a $1.0 million decline in Passenger Segment Adjusted EBITDA to $(2.1) million, resulting from higher integration and operating expenses related to our acquisition of Blade Europe.

Business Highlights and Recent Updates

• In April 2023, Blade provided logistics and coordination support for a record-breaking heart transplant mission. In collaboration with Massachusetts General Hospital and Paragonix Technologies, Inc., Blade facilitated the transport of a donor heart and transplant team members 2,506 nautical miles from Juneau, Alaska, to Boston, Massachusetts, setting a record for the longest distance a donor heart has ever traveled for a transplant surgery.
• In May 2023, Blade announced an agreement to revitalize and operate the Newport Helistop (91NJ), located in Newport, Jersey City, New Jersey, one of the largest and most successful mixed-use communities on the Hudson River waterfront. Blade has begun a pilot program for charter flights and is analyzing the viability of limited by-the-seat service between the Helistop and local New York City area airports and heliports.
• In June 2023, Blade and Eve Air Mobility (“Eve”) announced at the 54th International Paris Air Show a significant extension of their long-standing partnership through a memorandum of understanding. The collaboration aims to transform air transportation in Europe, starting with France, by laying the foundation to integrate Eve’s state-of-the-art electric vertical aircraft into Blade’s European route network, subject to receipt of necessary regulatory approvals and certification.
  

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(1) See “Use of Non-GAAP Financial Measures” attached to this release for further detail on adjustments to GAAP financial measures.

Conference Call

The Company will conduct a conference call starting at 8:00 a.m. ET on Wednesday, August 9, 2023 to discuss the results for the second quarter ended June 30, 2023.

A live audio-only webcast of the call may be accessed from the Investor Relations section of the Company’s website at https://ir.blade.com/. An archived replay of the call will be available on the Investor Relations section of the Company's website for one year.

Use of Non-GAAP Financial Information
Blade believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported U.S. Generally Accepted Accounting Principles ("GAAP") results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Unallocated Corporate Expenses, Corporate Expenses, Adjusted Corporate Expenses, Flight Profit, Flight Margin and Pro forma revenue have been reconciled to the nearest GAAP measure in the tables within this press release.

Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. This measure excludes non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations (as shown in the table below). Blade defines Segment Adjusted EBITDA as segment net income (loss) excluding non-cash items or certain transactions that management does not believe are reflective of our ongoing core operations.

Adjusted Unallocated Corporate Expenses – Blade defines Adjusted Unallocated Corporate Expenses as segment net loss attributable to our Corporate expenses and software development operating segment less non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations that cannot be allocated to either of our reporting segments. Adjusted Unallocated Corporate Expenses has the same meaning as Segment Adjusted EBITDA for our Corporate expenses and software development operating segment and is reconciled in the tables below under the caption “Reconciliation of Segment Net Income (loss) to Segment Adjusted EBITDA.”

Constant currency - The unaudited interim condensed consolidated financial statements included here are presented in U.S. dollars. However, Blade's international operations give rise to fluctuations in foreign exchange rates. To compare results between periods as if exchange rates had remained constant period-over-period and allow change in revenue to be evaluated without the impact of foreign currency exchange rate fluctuations, Blade has included results in constant currency. These are calculated by applying the current period exchange rates to local currency reported results for both the current and prior year.

Corporate Expenses and Adjusted Corporate Expenses - Blade defines Corporate Expenses as total operating expenses excluding cost of revenue. Blade defines Adjusted Corporate Expenses as Corporate Expenses excluding non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations.

Flight Profit and Flight Margin - Blade defines Flight Profit as revenue less cost of revenue. Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, right-of-use ("ROU") asset amortization and internal costs incurred in generating ground transportation revenue using the Company’s owned cars. Blade defines Flight Margin for a period as Flight Profit for the period divided by revenue for the same period. Blade believes that Flight Profit and Flight Margin provide a more accurate measure of the profitability of the Company's flight and ground operations, as they focus solely on the direct costs associated with those operations.

Pro forma revenue - Pro forma revenue gives effect to revenue from acquisitions that occurred after the commensurate period of the prior year as if they had been acquired on the first day of the commensurate period of the prior year. Pro forma change in revenue is calculated as the difference between the current reported GAAP revenue and the comparative period pro forma revenue. Management believes that discussing pro forma revenue contributes to the understanding of Blade's performance and trends, because it allows for comparisons of the current year period to that of prior years, normalized for the impact of acquisitions. Management believes that pro forma change in revenue assists in measuring the underlying revenue growth of our business as it stands as of the end of the current year period, which we believe provides insight into our then-current operations. Pro forma change in revenue does not represent organic revenue generated by our business as it stood at the beginning of the prior year period.

Financial Results