Blade CEO ‘bullish’ about 2023 after record Q3
Blade’s CEO and founder, Rob Wiesenthal told investors he is “very bullish about growth prospects” following a record-breaking third quarter (Q3) that saw the firm become the largest organ transporter in the US.
Revenues in Q3 increased by 125% to $45.7m and revenue for the first nine months of 2022 climbed 154% to $108m from a year ago.
Short distance revenue increased 52% to $20.4m versus $13.4m in Q3 2021. Growth driven largely by improved pricing and utilisation and the closing of Blade Europe’s acquisition, said the firm.
Revenue from jet charter rose by 9% to $5.1m in Q3 2022 compared to $4.7m in the prior year period. Overall, flight profit increased 108% to $9.3m.
Losses stabilised in the quarter coming in at $9.2m, equal to Q3 2021, despite improved flight margins.
Flight margin improvement was mainly driven by Blade’s “outsized growth” in MediMobility Organ Transport. “Nearly half of our $133m in trailing 12-month revenue [is] now coming from MediMobility. This division delivered another record quarter of revenues,” Wiesenthal said on an investor call.
“Today, not only are we the largest dedicated air transporter of human organs for transplant in the United States, but we believe we are the most flexible, reliable and low-cost provider,” he said. “This cost advantage, combined with our expertise in logistics, customer service and trusted brand gives us confidence in our ability to continue to grow our market share from the high teens level today to eventually becoming the majority of the market.”
The quarter also saw Blade complete the previously announced acquisitions of Monacair, Héli Sécurité and a third unnamed operator for $48.1m.
Blade’s airport service also just posted its highest ever month for revenue and passenger movements.
Elsewhere, Melissa Tomkiel, Blade’s president, was appointed by the US Transportation Department to the FAA Advanced Aviation Advisory Committee.
“In summary, I could not be happier with how well we are positioned for air mobility, both today and in the future,” said Wiesenthal.
William Heyburn, chief financial officer, added: “Our focus remains on prudent capital allocation and expense management while continuing to grow flight profit, paving the path to profitability for what is now the largest operating urban air mobility platform in the world.”