BLDE Blade Air Mobility Inc

Blade Air Mobility, Inc. (Nasdaq: BLDE, "Blade" or the "Company"), today announced financial results for the fourth quarter ended December 31, 2023.

GAAP FINANCIAL RESULTS(in thousands except percentages, unaudited)

	Three Months Ended December 31,											Year EndedDecember 31,
		2023				2022			% Change				2023				2022			% Change
Revenue	$	47,478			$	38,135			24.5	%		$	225,180			$	146,120			54.1	%
Cost of revenue		38,468				33,160			16.0	%			183,058				123,845			47.8	%
Software development		988				1,622			(39.1)	%			4,627				5,545			(16.6)	%
General and administrative		41,242				20,576			100.4	%			95,174				62,510			52.3	%
Selling and marketing		2,413				2,455			(1.7)	%			10,438				7,749			34.7	%
Total operating expenses		83,111				57,813			43.8	%			293,297				199,649			46.9	%
Loss from operations		(35,633	)			(19,678	)		81.1	%			(68,117	)			(53,529	)		27.3	%
Net loss	$	(33,941	)		$	(15,415	)		120.2	%		$	(56,076	)		$	(27,260	)		105.7	%
Passenger loss	$	(25,349	)		$	(5,771	)		339.2	%		$	(33,503	)		$	(14,029	)		138.8	%
Medical loss	$	(2,443	)		$	(5,145	)		(52.5)	%		$	(1,388	)		$	(2,930	)		(52.6)	%
Unallocated corporate expenses and software development	$	(7,841	)		$	(8,762	)		(10.5)	%		$	(33,226	)		$	(36,570	)		(9.1)	%

NON-GAAP(1) FINANCIAL RESULTS(in thousands except percentages, unaudited)

	Three Months Ended December 31,											Year EndedDecember 31,
		2023				2022			Change				2023				2022			% Change
GAAP Revenue	$	47,478			$	38,135			24.5%			$	225,180			$	146,120			54.1%
GAAP Cost of revenue		38,468				33,160			16.0%				183,058				123,845			47.8%
Non-cash timing of ROU asset amortization		—				464			(100.0%)				—				612			(100.0%)
Flight Profit		9,010				5,439			65.7%				42,122				22,887			84.0%
Flight Margin		19.0	%			14.3	%		471bps				18.7	%			15.7	%		304bps
Adjusted Corporate Expense (1)		14,258				13,394			6.5%				58,755				50,338			16.7%
Adjusted Corporate Expense as a percentage of GAAP Revenue		30.0	%			35.1	%		(510)bps				26.1	%			34.4	%		(836bps)
Adjusted EBITDA (1)	$	(5,248	)		$	(7,955	)		(34.0%)			$	(16,633	)		$	(27,451	)		(39.4%)
Adjusted EBITDA as a percentage of GAAP Revenue		(11.1)	%			(20.9)	%		980bps				(7.4)	%			(18.8)	%		1,140bps
Passenger Adjusted EBITDA (1)	$	(2,635	)		$	(3,769	)		(30.1%)			$	(4,988	)		$	(6,367	)		(21.7%)
Medical Adjusted EBITDA (1)	$	2,505			$	1,587			57.8%			$	10,754			$	5,116			110.2%
Adjusted unallocated corporate expenses and software development (1)	$	(5,118	)		$	(5,773	)		(11.3%)			$	(22,399	)		$	(26,200	)		(14.5%)

(1) See "Use of Non-GAAP Financial Measures" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.

"After a 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 positive Adjusted EBITDA for the year-ending December 31, 2024 and double-digit Adjusted EBITDA in 2025(2)," said Rob Wiesenthal, Blade's Chief Executive Officer. "Though Q4 is a seasonally light quarter for Blade, we remained focused on continued margin enhancement and significant additions to our dedicated aircraft fleet, highlighted by the acquisition of eight jets for our organ transportation business. These initiatives 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 continued to be serviced by third-party owned and operated aircraft."

"We've made huge progress transitioning more and more of our Medical flights to dedicated aircraft that provide us with fixed cost leverage as we grow and are strategically based near our hospital customers," said Will Heyburn, Blade's Chief Financial Officer. "This is a win-win that has enabled us to increase our Flight Profit per trip while reducing costs for our hospital customers. When paired with our growing fleet of medical vehicles and new organ placement offering, we believe we’ve built the most cost-effective and reliable end-to-end organ logistics platform in the United States. At the same time, we improved our Passenger flight profit margins by five percentage points in Q4 2023 versus the prior year, demonstrating our path to full-year profitability in the Passenger segment, which we expect in 2025."

"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 acquisition of a limited number of jet aircraft. By purchasing aircraft that we already utilize exclusively and by maintaining the existing operator and crews, we expect to capture incremental fixed cost leverage without the risk of building a new medical aircraft operation from the ground up," said Melissa Tomkiel, Blade's President. "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."

(2) We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Fourth Quarter Ended December 31, 2023 Financial Highlights

• Total revenue increased 24.5% to $47.5 million in the current quarter versus $38.1 million in the prior year period.
• Flight Profit(1) increased 65.7% to $9.0 million in the current quarter versus $5.4 million in the prior year period, driven by strong growth in our MediMobility Organ Transport business and improved profitability across our U.S. Short Distance business.
• Flight Margin(1) improved to 19.0% in the current quarter from 14.3% in the prior year period, driven by increased use of dedicated aircraft and owned ground vehicles in our MediMobility Organ Transport business line, which results in lower costs, 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 13.6% to $10.7 million in the current quarter versus $9.4 million in the prior year period. Growth was driven by an increase in seat volume and improved pricing in our New York by-the-seat airport transfer product, increased revenue in Europe and in Canada.
• MediMobility Organ Transport revenue increased 47.9% to $32.0 million in the current quarter versus $21.6 million in the prior year period, driven by the addition of new transplant center customers, increased average trip distance, growth with existing customers, and strong overall market growth.
• Jet and Other revenue decreased (32.4)% to $4.8 million in the current quarter versus $7.1 million in the prior year period driven primarily by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida and softer jet charter demand.
• Net loss increased 120.2% to $(33.9) million in the current quarter versus $(15.4) million in the prior year period and increased as a percentage of revenues to (71.5)% in the current quarter from (40.4)% in the prior year period, primarily due to a $20.8 million impairment charge on intangible assets related to the Blade Europe acquisition.
• Adjusted EBITDA(1) improved to $(5.2) million in the current quarter versus $(8.0) million in the prior year period, and improved as a percentage of revenues to (11.1)% in the current quarter from (20.9)% in the prior year period primarily due to a 57.8% increase in Medical Segment Adjusted EBITDA to $2.5 million in the current quarter, a $1.1 million improvement in Passenger Segment Adjusted EBITDA to $(2.6) million and a $0.7 million improvement in Adjusted Unallocated Corporate Expenses and Software Development to $(5.1) million.
• Ended Q4 2023 with $166.1 million in cash and short term investments.

Business Highlights and Recent Updates

• Launched Trinity Organ Placement Services (“TOPS”) in December, a new Medical service helping transplant centers determine if an organ is a match for a potential recipient.
• Announced pending acquisition of eight Hawker 800 aircraft which had previously been 100% dedicated to Blade’s Medical business. The $21.0 million acquisition cost will be funded through $11.7 million in cash and $9.3 million in existing deposits with the operator.

(1) See "Use of Non-GAAP Financial Measures" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.

Financial Outlook (1)

For the full year 2024, we expect:

• Revenue of $240 million to $250 million
• Positive Adjusted EBITDA

For the full year 2025, we expect:

• Double-digit year-over-year revenue growth
• Double-digit Adjusted EBITDA

Conference Call

The Company will conduct a conference call starting at 8:00 a.m. ET on Wednesday, March 12, 2024 to discuss the results for the fourth quarter ended December 31, 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.

(1) We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Use of Non-GAAP Financial InformationBlade 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 Free Cash Flow 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 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 expenses 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 (Passenger and Medical). 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 Income (loss) to Segment Adjusted EBITDA.”

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, and in 2022 excluding non-cash right-of-use (“ROU”) asset amortization. Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, 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. Blade believes the exclusion of ROU asset amortization from Flight Profit and Flight Margin is helpful as it better represents the Company's actual payable charges in exchange for flights served by the operators. We also believe that excluding this non-cash ROU asset amortization expense will aid in comparing to prior and future periods as we do not expect it to re-occur after the fourth quarter of 2022, which it did not, as shown in the table below.

Free Cash Flow - Blade defines Free Cash Flow as net cash provided by / (used in) operating activities less capital expenditures.

Financial Results

BLADE AIR MOBILITY, INC. CONSOLIDATED BALANCE SHEETS(in thousands, except share data, unaudited)

	December 31,2023				December 31, 2022
Assets
Current assets:
Cash and cash equivalents (1)	$	27,873			$	41,338
Restricted cash (1)		1,148				3,085
Accounts receivable, net of allowance of $98 and $0 at December 31, 2023 and December 31, 2022		21,005				10,877
Short-term investments		138,264				150,740
Prepaid expenses and other current assets		17,971				12,086
Total current assets		206,261				218,126
Non-current assets:
Property and equipment, net		2,899				2,037
Intangible assets, net		20,519				46,365
Goodwill		40,373				39,445
Operating right-of-use asset		23,484				17,692
Other non-current assets (1)		1,402				1,360
Total assets	$	294,938			$	325,025
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	23,859			$	16,536
Deferred revenue		6,845				6,709
Operating lease liability, current		4,787				3,362
Total current liabilities		35,491				26,607
Non-current liabilities:
Warrant liability		4,958				7,083
Operating lease liability, long-term		19,738				14,970
Deferred tax liability		451				1,876
Total liabilities		60,638				50,536
Stockholders' Equity
Preferred stock, $0.0001 par value, 2,000,000 shares authorized at December 31, 2023 and December 31, 2022. No shares issued and outstanding at December 31, 2023 and December 31, 2022.		—				—
Common stock, $0.0001 par value; 400,000,000 authorized; 75,131,425 and 71,660,617 shares issued at December 31, 2023 and December 31, 2022, respectively.		7				7
Additional paid in capital		390,083				375,873
Accumulated other comprehensive income		3,964				2,287
Accumulated deficit		(159,754	)			(103,678	)
Total stockholders' equity		234,300				274,489
Total Liabilities and Stockholders' Equity	$	294,938			$	325,025

(1) Prior year amounts have been updated to conform to current period presentation.

BLADE AIR MOBILITY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data, unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Revenue	$	47,478			$	38,135			$	225,180			$	146,120
Operating expenses
Cost of revenue		38,468				33,160				183,058				123,845
Software development		988				1,622				4,627				5,545
General and administrative		41,242				20,576				95,174				62,510
Selling and marketing		2,413				2,455				10,438				7,749
Total operating expenses		83,111				57,813				293,297				199,649
Loss from operations		(35,633	)			(19,678	)			(68,117	)			(53,529	)
Other non-operating income (expense)
Interest income, net		2,264				1,542				8,442				3,434
Change in fair value of warrant liabilities		(1,698	)			1,984				2,125				24,225
Realized gain (loss) from sales of short-term investments		103				(91	)			8				(2,162	)
Total other non-operating income		669				3,435				10,575				25,497
Loss before income taxes		(34,964	)			(16,243	)			(57,542	)			(28,032	)
Income tax benefit		(1,023	)			(828	)			(1,466	)			(772	)
Net loss	$	(33,941	)		$	(15,415	)		$	(56,076	)		$	(27,260	)

BLADE AIR MOBILITY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands, unaudited)

	Three Months Ended December 31,									Year Ended December 31,
		2023				2022					2023				2022
Cash Flows From Operating Activities:
Net loss	$	(33,941	)		$	(15,415	)			$	(56,076	)		$	(27,260	)
Adjustments to reconcile net income (loss) to net cash and restricted cash used in operating activities:
Depreciation and amortization		1,806				1,984					7,111				5,725
Stock-based compensation		3,153				2,650					12,501				8,277
Change in fair value of warrant liabilities		1,698				(1,984	)				(2,125	)			(24,225	)
Impairment of intangible assets		20,753				—					20,753				—
Realized (gain) loss from sales of short-term investments		(103	)			91					(8	)			2,162
Realized foreign exchange loss		—				(1	)				6				6
Accretion of interest income on held-to-maturity securities		(1,803	)			(783	)				(6,519	)			(1,094	)
Deferred tax benefit		(1,023	)			(772	)				(1,466	)			(772	)
Loss on disposal of property and equipment		48				(129	)				48				68
Bad debt expense		(8	)			—					163				—
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(4,928	)			(1,474	)				(6,032	)			(5,255	)
Accounts receivable		125				(886	)				(10,254	)			(5,347	)
Other non-current assets		12				396					4				(663	)
Operating right-of-use assets/lease liabilities		(42	)			415					379				611
Accounts payable and accrued expenses		4,963				5,645					9,049				9,900
Deferred revenue		(30	)			1,154					117				737
Other		—				5					—				—
Net cash used in operating activities		(9,320	)			(9,104	)				(32,349	)			(37,130	)
Cash Flows From Investing Activities:
Acquisitions, net of cash acquired		—				—					—				(48,101	)
Investment in joint venture		(39	)			—					(39	)			(190	)
Purchase of property and equipment		(24	)			(11	)				(2,109	)			(730	)
Proceeds from disposal of property and equipment		138				—					138				—
Purchase of short-term investments		—				(151	)				(135	)			(729	)
Proceeds from sales of short-term investments		—				10,000					20,532				258,377
Purchase of held-to-maturity investments		—				(87,376	)				(265,835	)			(227,287	)
Proceeds from maturities of held-to-maturity investments		—				78,000					264,537				98,000
Net cash provided by investing activities		75				462					17,089				79,340
Cash Flows From Financing Activities:
Proceeds from the exercise of common stock options		7				6					70				87
Taxes paid related to net share settlement of equity awards		(30	)			(6	)				(146	)			(1,171	)
Net cash used in financing activities		(23	)			—					(76	)			(1,084	)
Effect of foreign exchange rate changes on cash balances		15				81					(66	)			72
Net (decrease) increase in cash and cash equivalents and restricted cash		(9,253	)			(8,561	)				(15,402	)			41,198
Cash and cash equivalents and restricted cash - beginning		38,274				52,984					44,423				3,225
Cash and cash equivalents and restricted cash - ending	$	29,021			$	44,423				$	29,021			$	44,423
Reconciliation to consolidated balance sheets
Cash and cash equivalents	$	27,873			$	41,338				$	27,873			$	41,338
Restricted cash		1,148				3,085					1,148				3,085
Total	$	29,021			$	44,423				$	29,021			$	44,423

Key Metrics and Non-GAAP Financial Information

DISAGGREGATED REVENUE BY PRODUCT LINE(in thousands, unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2023			2022			2023			2022
Passenger segment
Short Distance	$	10,703		$	9,418		$	70,700		$	44,986
Jet and Other		4,784			7,081			27,876			29,355
Total	$	15,487		$	16,499		$	98,576		$	74,341
Medical segment
MediMobility Organ Transport	$	31,991		$	21,636			126,604			71,779
Total	$	31,991		$	21,636		$	126,604		$	71,779
Total Revenue	$	47,478		$	38,135		$	225,180		$	146,120

SEGMENT INFORMATION: REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED EBITDA WITH RECONCILIATION TO TOTAL ADJUSTED EBITDA(in thousands except percentages, unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Passenger	$	15,487			$	16,499			$	98,576			$	74,341
Medical		31,991				21,636				126,604				71,779
Total Revenue	$	47,478			$	38,135			$	225,180			$	146,120
Passenger	$	2,580			$	1,886			$	19,444			$	11,295
Medical		6,430				3,553				22,678				11,592
Total Flight Profit	$	9,010			$	5,439			$	42,122			$	22,887
Passenger		16.7	%			11.4	%			19.7	%			15.2	%
Medical		20.1	%			16.4	%			17.9	%			16.1	%
Total Flight Margin		19.0	%			14.3	%			18.7	%			15.7	%
Passenger	$	(2,635	)		$	(3,769	)		$	(4,988	)		$	(6,367	)
Medical		2,505				1,587				10,754				5,116
Total Segment Adjusted EBITDA		(130	)			(2,182	)			5,766				(1,251	)
Adjusted unallocated corporate expenses and software development		(5,118	)			(5,773	)			(22,399	)			(26,200	)
Total Adjusted EBITDA	$	(5,248	)		$	(7,955	)		$	(16,633	)		$	(27,451	)

SEATS FLOWN - ALL PASSENGER FLIGHTS(unaudited)

	Three Months Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
Seats flown – all passenger flights	33,600		31,193		154,608		106,368

REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED CORPORATE EXPENSES, ADJUSTED EBITDA(in thousands except percentages, unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
GAAP Revenue	$	47,478			$	38,135			$	225,180			$	146,120
Flight Profit		9,010				5,439				42,122				22,887
Flight Margin		19.0	%			14.3	%			18.7	%			15.7	%
Adjusted Corporate Expense		14,258				13,394				58,755				50,338
Adjusted Corporate Expense as a percentage of Revenue		30.0	%			35.1	%			26.1	%			34.4	%
Adjusted EBITDA	$	(5,248	)		$	(7,955	)		$	(16,633	)		$	(27,451	)
Adjusted EBITDA as a percentage of Revenue		(11.1)	%			(20.9)	%			(7.4)	%			(18.8)	%

RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT AND LOSS FROM OPERATIONS(in thousands except percentages, unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Revenue	$	47,478			$	38,135			$	225,180			$	146,120
Cost of revenue (1)		(38,468	)			(33,160	)			(183,058	)			(123,845	)
Non-cash timing of ROU asset amortization		—				464				—				612
Flight Profit	$	9,010			$	5,439			$	42,122			$	22,887
Flight Margin		19.0	%			14.3	%			18.7	%			15.7	%
Flight Profit	$	9,010			$	5,439			$	42,122			$	22,887
Reconciling items:
Non-cash timing of ROU asset amortization		—				(464	)			—				(612	)
Software development		(988	)			(1,622	)			(4,627	)			(5,545	)
General and administrative		(41,242	)			(20,576	)			(95,174	)			(62,510	)
Selling and marketing		(2,413	)			(2,455	)			(10,438	)			(7,749	)
Loss from operations	$	(35,633	)		$	(19,678	)		$	(68,117	)		$	(53,529	)

(1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, ROU asset amortization and internal costs incurred in generating organ ground transportation revenue using the Company's owned cars.

RECONCILIATION OF SEGMENT REVENUE TO SEGMENT FLIGHT PROFIT AND SEGMENT LOSS(in thousands except percentages, unaudited)

		Three Months Ended December 31, 2023									Three Months Ended December 31, 2022
		Passenger				Medical					Passenger				Medical
Revenue		$	15,487			$	31,991				$	16,499			$	21,636
Cost of revenue			(12,907	)			(25,561	)				(15,077	)			(18,083	)
Non-cash timing of ROU asset amortization			—				—					464				—
Flight Profit		$	2,580			$	6,430				$	1,886			$	3,553
Flight Margin			16.7	%			20.1	%				11.4	%			16.4	%
Flight Profit		$	2,580			$	6,430				$	1,886			$	3,553
Reconciling items:
Non-cash timing of ROU asset amortization			—				—					(464	)			—
All other operating expenses(1)			(27,929	)			(8,873	)				(7,193	)			(8,698	)
Segment loss		$	(25,349	)		$	(2,443	)			$	(5,771	)		$	(5,145	)
		Year Ended December 31, 2023									Year Ended December 31, 2022
		Passenger				Medical					Passenger				Medical
Revenue		$	98,576			$	126,604				$	74,341			$	71,779
Cost of revenue			(79,132	)			(103,926	)				(63,658	)			(60,187	)
Non-cash timing of ROU asset amortization			—				—					612				—
Flight Profit		$	19,444			$	22,678				$	11,295			$	11,592
Flight Margin			19.7	%			17.9	%				15.2	%			16.1	%
Flight Profit		$	19,444			$	22,678				$	11,295			$	11,592
Reconciling items:
Non-cash timing of ROU asset amortization			—				—					(612	)			—
All other operating expenses(1)			(52,947	)			(24,066	)				(24,712	)			(14,522	)
Segment loss		$	(33,503	)		$	(1,388	)			$	(14,029	)		$	(2,930	)

(1) All other operating expenses refer to the total of software development, general and administrative and selling and marketing expense.

RECONCILIATION OF TOTAL OPERATING EXPENSES TO ADJUSTED CORPORATE EXPENSES(in thousands except percentages, unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Revenue	$	47,478			$	38,135			$	225,180			$	146,120
Total operating expenses		83,111				57,813				293,297				199,649
Subtract:
Cost of revenue		38,468				33,160				183,058				123,845
Corporate Expenses	$	44,643			$	24,653			$	110,239			$	75,804
Corporate Expenses as percentage of Revenue		94.0	%			64.6	%			49.0	%			51.9	%
Adjustments to reconcile Corporate Expenses to Adjusted Corporate Expenses
Subtract:
Depreciation and amortization		1,806				1,984				7,111				5,725
Stock-based compensation		3,153				2,650				12,501				8,277
Legal and regulatory advocacy fees (1)		46				(180	)			686				1,874
Executive severance costs		182				269				447				269
SOX readiness costs		72				—				252				—
Contingent consideration compensation (earn-out) (2)		4,373				6,289				9,734				6,289
M&A transaction costs		—				247				—				3,032
Impairment of intangible assets (3)		20,753				—				20,753			$	—
Adjusted Corporate Expenses	$	14,258			$	13,394			$	58,755			$	50,338
Adjusted Corporate Expenses as percentage of Revenue		30.0	%			35.1	%			26.1	%			34.4	%

(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.(2) Represents contingent consideration compensation for the three months and year ended December 31, 2023 of $4,373 and $10,073, respectively, in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity's contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.(3) Represents impairment in Blade Europe’s intangible assets, specifically its exclusive rights to air transportation rights. The impairment was as a result of adjustments made to the near term projections for revenue, expenses and expected EVA introduction, to reflect our experience operating Blade Europe since September 2022 as well as expected delays in the commercialization of EVA.

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (in thousands except percentages, unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Net loss	$	(33,941	)		$	(15,415	)		$	(56,076	)		$	(27,260	)
Depreciation and amortization		1,806				1,984				7,111				5,725
Stock-based compensation		3,153				2,650				12,501				8,277
Change in fair value of warrant liabilities		1,698				(1,984	)			(2,125	)			(24,225	)
Realized (gain) loss from sales of short-term investments		(103	)			91				(8	)			2,162
Interest income, net		(2,264	)			(1,542	)			(8,442	)			(3,434	)
Income tax expense (benefit)		(1,023	)			(828	)			(1,466	)			(772	)
Legal and regulatory advocacy fees (1)		46				(180	)			686				1,874
Executive severance costs		182				269				447				269
SOX readiness costs		72				—				252				—
Contingent consideration compensation (earn-out) (2)		4,373				6,289				9,734				6,289
M&A transaction costs		—				247				—				3,032
Impairment of intangible assets (3)		20,753				—				20,753				—
Non-cash timing of ROU asset amortization		—				464				—				612
Adjusted EBITDA	$	(5,248	)		$	(7,955	)		$	(16,633	)		$	(27,451	)
Adjusted EBITDA as a percentage of Revenue	(11.1)		%		(20.9		)%		(7.4		)%		(18.8		)%

(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.(2) Represents contingent consideration compensation for the three months and year ended December 31, 2023 of $4,373 and $10,073, respectively, in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity's contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.(3) Represents impairment in Blade Europe’s intangible assets, specifically its exclusive rights to air transportation rights. The impairment was as a result of adjustments made to the near term projections for revenue, expenses and expected EVA introduction, to reflect our experience operating Blade Europe since September 2022 as well as expected delays in the commercialization of EVA.

RECONCILIATION OF NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (in thousands, unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Net cash used in operating activities	$	(9,320	)		$	(9,104	)		$	(32,349	)		$	(37,130	)
Purchase of property and equipment		(24	)			(11	)			(2,109	)			(730	)
Free Cash Flow	$	(9,344	)		$	(9,115	)		$	(34,458	)		$	(37,860	)

RECONCILIATION OF SEGMENT INCOME (LOSS) TO SEGMENT NET INCOME (LOSS) AND SEGMENT ADJUSTED EBITDA(in thousands, unaudited)

		Three Months Ended December 31, 2023												Three Months Ended December 31, 2022
		Passenger				Medical				Unallocated Corporate expenses and software development				Passenger				Medical				Unallocated Corporate expenses and software development
Segment income (loss)		$	(25,349	)		$	(2,443	)		$	(7,841	)		$	(5,771	)		$	(5,145	)		$	(8,762	)
Total other non-operating income			—				—				669				—				—				3,435
Income tax benefit			—				—				1,023				—				—				828
Segment net loss		$	(25,349	)		$	(2,443	)		$	(6,149	)		$	(5,771	)		$	(5,145	)		$	(4,499	)
Reconciling items:
Depreciation and amortization			1,331				424				51				1,447				364				173
Stock-based compensation			402				151				2,600				271				79				2,300
Change in fair value of warrant liabilities			—				—				1,698				—				—				(1,984	)
Realized (gain) loss from sales of short-term investments			—				—				(103	)			—				—				91
Interest income, net			—				—				(2,264	)			—				—				(1,542	)
Income tax expense (benefit)			—				—				(1,023	)			—				—				(828	)
Legal and regulatory advocacy fees (1)			46				—				—				(180	)			—				—
Executive severance costs			182				—				—				—				—				269
SOX readiness costs			—				—				72				—				—				—
Contingent consideration compensation (earn-out) (2)			—				4,373				—				—				6,289				—
Non-cash timing of ROU asset amortization			—				—				—				464				—				—
M&A transaction costs			—				—				—				—				—				247
Impairment of intangible assets (3)			20,753				—				—				—				—				—
Segment Adjusted EBITDA		$	(2,635	)		$	2,505			$	(5,118	)		$	(3,769	)		$	1,587			$	(5,773	)

		Year Ended December 31, 2023												Year Ended December 31, 2022
		Passenger				Medical				Unallocated Corporate expenses and software development				Passenger				Medical				Unallocated Corporate expenses and software development
Segment income (loss)		$	(33,503	)		$	(1,388	)		$	(33,226	)		$	(14,029	)		$	(2,930	)		$	(36,570	)
Total other non-operating income			—				—				10,575												25,497
Income tax benefit			—				—				1,466												772
Segment net loss		$	(33,503	)		$	(1,388	)		$	(21,185	)		$	(14,029	)		$	(2,930	)		$	(10,301	)
Reconciling items:
Depreciation and amortization			5,204				1,703				204				3,949				1,488				288
Stock-based compensation			1,497				705				10,299				1,227				269				6,781
Change in fair value of warrant liabilities			—				—				(2,125	)			—				—				(24,225	)
Realized (gain) loss from sales of short-term investments			—				—				(8	)			—				—				2,162
Interest income, net			—				—				(8,442	)			—				—				(3,434	)
Income tax expense (benefit)			—				—				(1,466	)											(772	)
Legal and regulatory advocacy fees (1)			686				—				—				1,874				—				—
Executive severance costs			375				—				72				—				—				269
SOX readiness costs			—				—				252				—				—				—
Contingent consideration compensation (earn-out) (2)			—				9,734				—				—				6,289				—
Non-cash timing of ROU asset amortization			—				—				—				612				—				—
M&A transaction costs			—				—				—												3,032
Impairment of intangible assets (3)			20,753				—				—				—		—		—				—
Segment Adjusted EBITDA		$	(4,988	)		$	10,754			$	(22,399	)		$	(6,367	)		$	5,116			$	(26,200	)

(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.(2) Represents contingent consideration compensation for the three months and year ended December 31, 2023 of $4,373 and $10,073, respectively, in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity's contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.(3) Represents impairment in Blade Europe’s intangible assets, specifically its exclusive rights to air transportation rights. The impairment was as a result of adjustments made to the near term projections for revenue, expenses and expected EVA introduction, to reflect our experience operating Blade Europe since September 2022 as well as expected delays in the commercialization of EVA.

LAST TWELVE MONTHS DISAGGREGATED REVENUE BY PRODUCT LINE(in thousands, unaudited)

					Three Months Ended
		Last Twelve Months			December 31,2023			September 30,2023			June 30,2023			March 31,2023
Product Line:
Short Distance		$	70,700		$	10,703		$	30,388		$	19,184		$	10,425
Jet and Other			27,876			4,784			7,607			7,406			8,079
MediMobility Organ Transport			126,604			31,991			33,447			34,399			26,767
Total Revenue		$	225,180		$	47,478		$	71,442		$	60,989		$	45,271

About Blade Air Mobility

Blade Air Mobility provides air transportation and logistics for hospitals across the United States, where it is one of the largest transporters of human organs for transplant, and for passengers, with helicopter and fixed wing services primarily in the Northeast United States, Southern Europe and Western Canada.  Based in New York City, Blade's asset-light model, coupled with its exclusive passenger terminal infrastructure and proprietary technologies, is designed to facilitate a seamless transition from helicopters and fixed-wing aircraft to Electric Vertical Aircraft (“EVA” or “eVTOL”), enabling lower cost air mobility that is both quiet and emission-free. 

For more information, visit www.blade.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Blade’s future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning Blade’s future financial and operating performance (including the discussion of 2024 and 2025 financial outlook and guidance), results of operations, industry environment and growth opportunities, plans to release guidance, new product lines, and the development and adoption of EVA technology. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blade’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include: our continued incurrence of significant losses; failure of the markets for our offerings to grow as expected, or at all; our ability to effectively market and sell air transportation as a substitute for conventional methods of transportation; reliance on certain customers in our Passenger segment revenue; the inability or unavailability to use or take advantage of the shift, or lack thereof, to EVA technology; our ability to successfully enter new markets and launch new routes and services; any adverse publicity stemming from accidents involving small aircraft, helicopters or charter flights and, in particular, any accidents involving our third-party operators; any change to the ownership of our aircraft and the challenges related thereto; the effects of competition; harm to our reputation and brand; our ability to provide high-quality customer support; our ability to maintain a high daily aircraft usage rate; changes in consumer preferences, discretionary spending and other economic conditions; impact of natural disasters, outbreaks and pandemics, economic, social, weather, geopolitical, growth constraints, and regulatory conditions or other circumstances on metropolitan areas and airports where we have geographic concentration; the effects of climate change, including potential increased impacts of severe weather and regulatory activity; the availability of aircraft fuel; our ability to address system failures, defects, errors, or vulnerabilities in our website, applications, backend systems or other technology systems or those of third-party technology providers; interruptions or security breaches of our information technology systems; our placements within mobile applications; our ability to protect our intellectual property rights; our use of open source software; our ability to expand and maintain our infrastructure network; our ability to access additional funding; the increase of costs and risks associated with international expansion; our ability to identify, complete and successfully integrate future acquisitions; our ability to manage our growth; increases in insurance costs or reductions in insurance coverage; the loss of key members of our management team; our ability to maintain our company culture; our reliance on contractual relationships with certain transplant centers and Organ Procurement Organizations; effects of fluctuating financial results; our reliance on third-party operators; the availability of third-party operators; disruptions to third party operators; increases in insurance costs or reductions in insurance coverage for our third-party aircraft operators; the possibility that our third-party aircraft operators may illegally, improperly or otherwise inappropriately operate our branded aircraft; our reliance on third-party web service providers; changes in our regulatory environment; risks and impact of any litigation we may be subject to; regulatory obstacles in local governments; the expansion of domestic and foreign privacy and security laws; the expansion of environmental regulations; our ability to remediate any material weaknesses or maintain internal controls over financial reporting; our ability to maintain effective internal controls and disclosure controls; changes in the fair value of our warrants; and other factors beyond our control. Additional factors can be found in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Blade undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.

Press ContactsFor Media RelationsLee Gold press@blade.com

For Investor RelationsLee Goldinvestors@blade.com