Blade Air Mobility, Inc. (NASDAQ:BLDE) Q4 2022 Earnings Call Transcript

So, you’ve got a number of moving pieces, but hopefully the new segment disclosure is going to help you figure out what are the drivers and also make it clear that even though the flight margin is a little bit lower for MediMobility, we think we make up for it below the line there.

Bill Peterson: Yes, my question is really where do you want the Passenger margins to go. And look, I certainly understand your numbers still at MediMobility is going faster, and that’s fine, it’s already EBITDA positive. So, that’s okay. And the second question actually is related to MediMobility. I think — I don’t believe you said you added more hospital organizations, but just to clarify that I think exited third quarter of last year at 57. Where was fourth quarter? And maybe as we look into the first quarter, I’m trying to get a feel for how we should think about the further market share opportunities (ph) not only from more (ph) coming your way in where you already have relationships, but as your — hospitals and organ procurement organizations growth through the year?

Will Heyburn: Yes. And so just to make sure I hit your passenger question, Bill, we do still think that’s going to be a 20% to 30% margin business for mature routes and it’s just really airport that’s pulling that down right now. Europe is already in that range. So, we want to make sure you have the right number for your model there. In terms of the passenger count on MediMobility, we continue to sign up new customers. We haven’t onboarded anyone new to update you on right now. Although you’re going to continue to see that growth because the onboarding process takes some time. So, you continue to expect to see sequential growth in Medical during this year. May not always be the same quarter-over-quarter, because it is going to be lumpy depending on the size of customers. But we have a number of new customers that are in final stages of contract, but nothing to announce on this call that we do continue to expect substantial growth each quarter.

Bill Peterson: Okay. Thanks for the color.

Ravi Jani: Great. Thanks, Bill. Operator, we can take the next question.

Operator: Thank you. Our next question coming from the line of Hillary Cacanando with Deutsche Bank. Your line is open.

Hillary Cacanando: Yes, hi. Thanks for your time. You just mentioned for MediMobility expect sequential growth every quarter. But could you just remind us if there is any seasonality, like noticeable change in seasonality for that business? And how we should think about growth for the year in terms of — I know there will be sequential growth, but what type of growth for the year and any seasonality to that business?

Will Heyburn: There’s really not much — Hillary, thanks for the question. There’s really not much seasonality in that business. We see pretty consistent. If there is a quarter that is maybe a touch lower, it might be Q4, really just driven by vacations for doctors and things like that. But I think we won’t always see the same sequential growth that we saw in this quarter, but we expect to see it consistent.

Hillary Cacanando: Okay. So, like in terms of modeling, Q4 touch lower and then the remaining three quarters kind of evenly distributed in terms of growth, do you think?

Will Heyburn: Yes, I think that’s a fair way to model it.

Hillary Cacanando: Okay. Sounds good. And then, you mentioned potentially getting into the kidney transport business, and then your presentation also mentioned potentially getting into medical, radioisotopes and critical cargo and parts delivery. Could you kind of provide more color in terms of do you need to make another acquisition in order to get into these businesses? Or can you do this organically? And what the timeframe would be?