Why Is Blade Air Mobility Stock Diving Today?

Blade Air Mobility Inc BLDE reported fourth-quarter fiscal 2023 revenue growth of 24.5% year-over-year to $47.48 million, missing the consensus of $48.4 million.

The company’s net loss for the quarter expanded to $(33.94) million, compared to a loss of $(15.52) million a year ago.

BLDE’s Passenger loss widened to $(25.35) million, and Medical loss contracted to $(2.44) million. Flight profit rose 65.7% Y/Y to $9.01 million, and the margin improved by 471 bps to 19%.

Total adjusted EBITDA loss was $(5.25) million, compared to a loss of $(7.96) million a year ago, margin recovered to -11.1% from -20.9% YoY.

Short Distance revenue increased 13.6% to $10.7 million in the current quarter, driven by an increase in seat volume and improved pricing in its New York by-the-seat airport transfer product, increased revenue in Europe and Canada.

The company’s net cash used by operating activities totaled $(9.32) million. The company held cash and short-term investments of $166.1 million as of December 31, 2023.

The company announced the pending acquisition of eight Hawker 800 aircraft that had previously been 100% dedicated to Blade’s Medical business. The $21 million acquisition cost will be funded through $11.7 million in cash and $9.3 million in existing deposits with the operator.

2024 Outlook: Blade Air Mobility expects revenue of $240 million-$250 million vs. $257.19 million consensus and sees positive Adjusted EBITDA.

For 2025, the company expects double-digit year-over-year revenue and adjusted EBITDA growth.

Price Action: BLDE shares are trading lower by 28.2% at $2.865 on the last check Tuesday.