Blade Air Mobility's Financial Results for the Q2

Blade Air Mobility, a technology-powered air mobility platform has announced financial results for the second quarter ended June 30, 2022 today, proudly showing how revenue had increased by 175% to $35.6 million. The company saw short-distance flight revenue increase 89% to $11.0 million versus $5.8 million in the same period last year, driven by the acquisition of Helijet's passenger routes in Vancouver as well as the resumption of the Blade Airport service.

"Blade delivered record revenue and Flight Profit this quarter, with strong growth across all business lines," said Rob Wiesenthal, Blade’s Chief Executive Officer. "We have seen continued strength in our consumer-facing businesses with revenue and average seat prices for both the second quarter and third quarter to-date well ahead of our 2019 and 2021 levels. Given unwavering demand from our fliers coupled with continued strong sequential growth in our MediMobility Organ Transport business, Blade has proven it is well positioned to thrive in this uncertain macroeconomic environment."

"Our strong financial performance is a testament to our success in leveraging the Blade platform across the diverse portfolio of businesses that we have built and acquired since our inception," said Will Heyburn, Blade’s Chief Financial Officer. "By deploying our brand, aircraft operator network, and technology-enabled logistics and customer service, we have significantly accelerated growth, including in our MediMobility Organ Transport business, which experienced 139% pro forma organic growth compared to the prior year period."

"We look forward to closing our acquisitions in Europe, where our roll-up of the commercial activities of three prominent urban air mobility operators will fortify Blade’s leadership in the region,” said Melissa Tomkiel, Blade's President. "Our urban air mobility alliance with JetBlue has now been launched, providing preferred pricing and other benefits for seamless air transport between Manhattan and New York area airports for the TrueBlue loyalty program membership base.”

Second Quarter Ended June 30, 2022 Financial Highlights

Total revenue increased 175% to $35.6 million versus $13.0 million in the prior year period. On a pro forma basis, assuming Blade had owned both Trinity and Helijet International Inc's ("Helijet") scheduled passenger routes in the prior year period, revenue for the second quarter ended June 30, 2022 would have been up 87%

Flight Margin of 14.3% improved sequentially versus Q1 2022, as expected, but decreased versus 23.0% in the prior year period, driven primarily by the significant revenue mix shift towards MediMobility Organ Transport and re-launch of Blade Airport service, which remained below breakeven during the ramp-up period this quarter as expected

Short Distance revenue increased 89% to $11.0 million in the current quarter versus $5.8 million in the prior year period. Growth was driven by our acquisition of Helijet's passenger routes in Vancouver, the resumption of our Blade Airport service, growth in short distance charter, and higher pricing across our network

MediMobility Organ Transport revenue increased 1,013% to $17.2 million in the current quarter versus $1.6 million in the prior year period, driven by Blade's acquisition of Trinity in September 2021. On a pro forma basis, assuming Blade had owned Trinity in the prior year period, revenue growth in MediMobility Organ Transport would have been 139% versus the prior year period, driven by a combination of new hospital clients and continued growth with existing accounts

Jet and Other revenue increased 32% to $7.4 million in the current quarter versus $5.6 million in the prior year period driven primarily by an increase in the average price per trip, and stronger demand for our seasonal BladeOne jet service between New York and South Florida

Net income increased to $8.4 million in the current quarter versus a net loss of $24.3 million in the prior year period, driven primarily by increased revenue and a favorable change in the fair value of warrant liabilities of $19.3 million (compared to an unfavorable change of $14.9 million and $1.7 million of recapitalization costs attributable to warrant liabilities in the prior year period), partially offset by a $2.3 million increase in General & Administrative costs

Adjusted EBITDA decreased to $(6.1) million in the current quarter from $(2.6) million in the prior year period. The decrease versus the prior year period is primarily attributable to additional corporate and recurring expenses related to Blade’s growth and status as a public company, partially offset by increased Flight Profit

BLADE AIR MOBILITY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, unaudited)
	Three Months Ended June 30,												Six Months Ended June 30,
	2022				2021				2020				2022				2021				2020
Revenue	$	35,633			$	12,951			$	3,438			$	62,263			$	22,224			$	9,892
Operating expenses
Cost of revenue(1)		30,522				9,976				2,814				54,229				17,773				8,686
Software development(1)		1,062				323				273				1,897				612				592
General and administrative(1)		12,144				9,808				1,546				26,122				14,633				4,402
Selling and marketing(1)		1,638				615				281				3,438				1,202				1,036
Total operating expenses		45,366				20,722				4,914				85,686				34,220				14,716
Loss from operations		(9,733	)			(7,771	)			(1,476	)			(23,423	)			(11,996	)			(4,824	)
Other non-operating income (expense)
Change in fair value of warrant liabilities		19,266				(14,913	)			—				21,816				(14,913	)			—
Realized loss from sales of short term investments		(1,576	)			—				—				(1,712	)			—				—
Recapitalization costs attributable to warrant liabilities		—				(1,742	)			—				—				(1,742	)			—
Interest income, net		455				140				151				719				144				90
Other non-operating income (expense)		18,145				(16,515	)			151				20,823				(16,511	)			90
Net income (loss)	$	8,412			$	(24,286	)		$	(1,325	)		$	(2,600	)		$	(28,507	)		$	(4,734	)

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

BLADE AIR MOBILITY, INC. RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT (in thousands except percentages, unaudited)
	Three Months Ended June 30,												Six Months Ended June 30,
	2022				2021				2020				2022				2021				2020
Revenue	$	35,633			$	12,951			$	3,438			$	62,263			$	22,224			$	9,892
Cost of revenue(1)		30,522				9,976				2,814				54,229				17,773				8,686
Flight Profit	$	5,111			$	2,975			$	624			$	8,034			$	4,451			$	1,206
Flight Margin		14	%			23	%			18	%			13	%			20	%			12	%

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(1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees and internal costs incurred in generating ground transportation revenue using the Company's owned cars. Prior period amounts have been updated to conform to current period presentation.

BLADE AIR MOBILITY, INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (in thousands, unaudited)
	Three Months Ended June 30,												Six Months Ended June 30,
	2022				2021				2020				2022				2021				2020
Net income (loss)	$	8,412			$	(24,286	)		$	(1,325	)		$	(2,600	)		$	(28,507	)		$	(4,734	)
Stock-based compensation		1,844				2,518				90				3,942				4,422				177
Depreciation and amortization		1,155				140				133				2,300				266				264
Interest income, net		(455	)			(140	)			(151	)			(719	)			(144	)			(90	)
Change in fair value of warrant liabilities		(19,266	)			14,913				—				(21,816	)			14,913				—
Realized loss from sales of short term investments		1,576				—				—				1,712				—				—
Recapitalization costs attributable to warrant liabilities		—				1,742				—				—				1,742				—
Consulting costs related to initial public listing		—				2,038				—				—				2,038				—
Offering documents expenses		—				324				—				—				324				—
Recruiting fees related to initial public listing		—				98				—				—				98				—
M&A transaction costs		451				80				—				1,424				80				—
One-time legal and regulatory advocacy fees		164				—				—				1,911				—				—
Adjusted EBITDA	$	(6,119	)		$	(2,573	)		$	(1,253	)		$	(13,846	)		$	(4,768	)		$	(4,383	)

BLADE AIR MOBILITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data, unaudited)
	June 30, 2022				December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	186,556			$	2,595
Restricted cash		1,690				630
Accounts receivable		9,672				5,548
Short-term investments (cost: June 30, 2022 - $70,308; December 31, 2021 - $280,263)		69,607				279,374
Prepaid expenses and other current assets		10,700				6,798
Total current assets		278,225				294,945
Non-current assets:
Property and equipment, net		2,304				2,045
Investment in joint venture		200				200
Intangible assets, net		22,743				24,421
Goodwill		13,328				13,328
Operating right-of-use asset		6,003				713
Other non-current assets		1,384				232
Total assets	$	324,187			$	335,884
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	7,648			$	6,369
Deferred revenue		8,500				5,976
Operating lease liability, current		2,364				438
Total current liabilities		18,512				12,783
Non-current liabilities:
Warrant liability		9,492				31,308
Operating lease liability, long-term		3,748				278
Deferred tax liability		144				144
Total liabilities		31,896				44,513
Stockholders' Equity
Preferred stock, $0.0001 par value, 2,000,000 shares authorized at June 30, 2022 and December 31, 2021. No shares issued and outstanding at June 30, 2022 and December 31, 2021.		—				—
Common stock, $0.0001 par value; 400,000,000 authorized; 71,397,326 and 70,667,381 shares issued at June 30, 2022 and December 31, 2021, respectively.		7				7
Additional paid in capital		371,690				368,680
Accumulated other comprehensive loss		(388	)			(898	)
Accumulated deficit		(79,018	)			(76,418	)
Total stockholders' equity		292,291				291,371
Total Liabilities and Stockholders' Equity	$	324,187			$	335,884

BLADE AIR MOBILITY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
	Three Months Ended June 30,												Six Months Ended June 30,
	2022				2021				2020				2022				2021				2020
Cash Flows From Operating Activities:
Net income (loss)	$	8,412			$	(24,286	)		$	(1,325	)		$	(2,600	)		$	(28,507	)		$	(4,734	)
Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:
Depreciation and amortization		1,155				140				133				2,300				266				264
Stock-based compensation		1,844				2,518				90				3,942				4,422				177
Change in fair value of warrant liabilities		(19,266	)			14,913				—				(21,816	)			14,913				—
Realized loss from sales of short term investments		1,576				—				—				1,712				—				—
Unrealized foreign exchange gain / losses		—				—				—				(5	)			—				—
Recapitalization costs attributable to warrant liabilities		—				1,742				—				—				1,742				—
Loss on disposal of property and equipment		65				—				—				65				—				—
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(2,197	)			(4,917	)			226				(3,902	)			(5,745	)			34
Accounts receivable		(3,659	)			(640	)			(70	)			(4,124	)			(167	)			(240	)
Other non-current assets		(504	)			(106	)			(70	)			(1,152	)			(32	)			(12	)
Operating right-of-use assets/lease liabilities		105				20				2				106				18				7
Accounts payable and accrued expenses		(1,361	)			547				(89	)			1,275				2,419				(915	)
Deferred revenue		2,220				851				532				2,524				848				74
Net cash used in operating activities		(11,610	)			(9,218	)			(571	)			(21,675	)			(9,823	)			(5,345	)
Cash Flows From Investing Activities:
Purchase of property and equipment		(189	)			(144	)			(13	)			(626	)			(197	)			(23	)
Purchase of short-term investments		(188	)			(303,163	)			—				(453	)			(303,163	)			—
Proceeds from sales of short-term investments		197,001				—				—				208,700				—				—
Net cash provided by / (used in) investing activities		196,624				(303,307	)			(13	)			207,621				(303,360	)			(23	)
Cash Flows From Financing Activities:
Proceeds from the exercise of common stock options		58				5				—				79				22				—
Taxes paid related to net share settlement of equity awards		(1,006	)			—				—				(1,011	)			—				—
Proceeds from note payable		—				—				1,165				—				—				1,165
Repayment of note payable		—				(1,165	)			—				—				(1,165	)			—
Proceeds from recapitalization of EIC, net of issuance costs		—				216,758				—				—				214,988				—
Proceeds from sale of common stock in PIPE, net of issuance costs		—				119,634				—				—				119,634				—
Net cash (used in) / provided by financing activities		(948	)			335,232				1,165				(932	)			333,479				1,165
Effect of foreign exchange rate changes on cash balances		4				—				—				7				—				—
Net increase (decrease) in cash and cash equivalents and restricted cash		184,070				22,707				581				185,021				20,296				(4,203	)
Cash and cash equivalents and restricted cash - beginning		4,176				7,926				12,584				3,225				10,337				17,368
Cash and cash equivalents and restricted cash - ending	$	188,246			$	30,633			$	13,165			$	188,246			$	30,633			$	13,165
Reconciliation to the unaudited interim condensed consolidated balance sheets
Cash and cash equivalents	$	186,556			$	30,003			$	13,049			$	186,556			$	30,003			$	13,049
Restricted cash		1,690				630				116				1,690				630				116
Total	$	188,246			$	30,633			$	13,165			$	188,246			$	30,633			$	13,165
Non-cash investing and financing activities
New leases under ASC 842 entered into during the period	$	5,456			$	1			$	21			$	5,871			$	13			$	21

BLADE AIR MOBILITY, INC. SEATS FLOWN - ALL PASSENGER FLIGHTS (unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
	2022		2021		2020		2022		2021		2020
Seats flown – all passenger flights(1)	28,241		5,971		696		46,735		8,226		5,274

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

BLADE AIR MOBILITY, INC.
RECONCILIATION OF REPORTED REVENUE TO PRO FORMA REVENUE
(in thousands except percentages, unaudited)

The following unaudited pro forma financial information presents what our revenue would have been had Trinity and the exclusive rights to Helijet International, Inc's scheduled passenger routes in Canada been acquired and purchased, respectively, on January 1, 2021.

Three months ended June 30
	Total				Short Distance				MediMobility Organ Transport				Jet and Other
Reported Revenue three months ended June 30, 2021	$	12,951			$	5,798			$	1,550			$	5,603
Impact of Trinity		5,669				—				5,669				—
Impact of Canada		390				390				—				—
Pro forma Revenue	$	19,010			$	6,188			$	7,219			$	5,603
Reported Revenue three months ended June 30, 2022	$	35,633			$	10,963			$	17,249			$	7,421
Pro forma change in revenue		87	%			77	%			139	%			32	%
Six months ended June 30
	Total				Short Distance				MediMobility Organ Transport				Jet and Other
Reported Revenue six months ended June 30, 2021	$	22,224			$	6,849			$	2,885			$	12,490
Impact of Trinity		9,995				—				9,995				—
Impact of Canada		828				828				—				—
Pro forma Revenue	$	33,047			$	7,677			$	12,880			$	12,490
Reported Revenue six months ended June 30, 2022	$	62,263			$	15,166			$	29,924			$	17,173
Pro forma change in revenue		88	%			98	%			132	%			37	%