What happened
Shares of Blade Air Mobility (BLDE -1.03%) soared more than 16% higher on Tuesday following the helicopter transportation service's quarterly earnings report. Blade is growing, and investors are excited about the prospects for further expansion in the quarters to come.
So what
Blade lost $4.2 million in its fiscal second quarter on revenue of $9.3 million. But investors appear more focused on the company's growth. Blade sales grew 44% year over year, with the organ transport business leading the way with a 68% gain.
Image source: Getty Images.
The company also said that effective June 1 it would be restarting its New York City airport passenger transportation option, with tickets starting at $195 per seat or $95 per seat with the purchase of an annual pass. Blade is also rolling out a partnership with Booking Holdings (BKNG -1.31%) brand Kayak that will open up new distribution channels, and said it is making progress rolling out its commuter operations in the U.S. northeast.
"We are pleased with Blade's 44% year-over-year revenue growth in the quarter, particularly given the comparison to a period that was largely unaffected by COVID-19," company CFO Will Heyburn said in a statement. "Strong performance in our MediMobility organ transport, jet and Northeast commuter short-distance businesses more than offset the decline in Blade Airport due to the pandemic."
Now what
Blade went public on May 7 via a merger with special purpose acquisition company Experience Investment. The deal left the combination with $365 million in gross proceeds to put to work, and the company in its earnings release indicated that with the cash in hand it intends to accelerate its acquisition strategy.
CEO Rob Wiesenthal said Blade is "well-positioned to benefit from significant pent-up demand for travel as Americans begin to rediscover travel." The markets on Tuesday are voicing agreement with that assessment, sending shares higher as a result.
