Surf Air Mobility Reports Third Quarter Financial Results, Exceeding Revenue and Adjusted EBITDA Expectations
Surf Air Mobility reported Q3 2024 financial results with revenue of $28.4 million, slightly down from $28.9 million year-over-year, but exceeding expectations of $25-28 million. The company secured a $50 million term loan to fund its transformation plan. Adjusted EBITDA loss was $8.9 million, flat compared to the previous year but better than expected loss of $10-13 million. GAAP Net Loss improved to $12.2 million from $74.6 million in the prior year. Scheduled service revenue increased by 2%, while On Demand service revenue decreased by 13%. The company expects Q4 2024 revenue between $25-28 million with Adjusted EBITDA loss of $5-8 million.
Surf Air Mobility ha riportato i risultati finanziari del terzo trimestre del 2024 con ricavi di 28,4 milioni di dollari, leggermente inferiori rispetto ai 28,9 milioni di dollari dell'anno precedente, ma superiori alle aspettative di 25-28 milioni di dollari. L'azienda ha ottenuto un prestito a termine di 50 milioni di dollari per finanziare il suo piano di trasformazione. La perdita EBITDA rettificata è stata di 8,9 milioni di dollari, stabile rispetto all'anno precedente, ma migliore rispetto alla perdita attesa di 10-13 milioni di dollari. La perdita netta secondo i principi contabili generalmente accettati (GAAP) è migliorata a 12,2 milioni di dollari rispetto ai 74,6 milioni di dollari dell'anno precedente. I ricavi dai servizi programmati sono aumentati del 2%, mentre i ricavi dai servizi on demand sono diminuiti del 13%. L'azienda prevede che i ricavi del quarto trimestre del 2024 si attestino tra 25 e 28 milioni di dollari con una perdita EBITDA rettificata di 5-8 milioni di dollari.
Surf Air Mobility reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 28.4 millones de dólares, ligeramente inferiores a los 28.9 millones de dólares del año anterior, pero superando las expectativas de 25 a 28 millones de dólares. La compañía aseguró un préstamo a plazo de 50 millones de dólares para financiar su plan de transformación. La pérdida de EBITDA ajustada fue de 8.9 millones de dólares, estable en comparación con el año anterior, pero mejor de lo esperado, que era de 10 a 13 millones de dólares. La pérdida neta según GAAP mejoró a 12.2 millones de dólares desde 74.6 millones de dólares en el año anterior. Los ingresos por servicios programados aumentaron un 2%, mientras que los ingresos por servicios a demanda disminuyeron un 13%. La compañía espera que los ingresos del cuarto trimestre de 2024 se encuentren entre 25 y 28 millones de dólares con una pérdida de EBITDA ajustada de 5 a 8 millones de dólares.
서프 에어 모빌리티는 2024년 3분기 재무 실적을 발표하며 매출이 2840만 달러로 작년 동기 대비 2890만 달러에서 소폭 감소했지만, 2500만에서 2800만 달러의 예상을 초과했다고 밝혔습니다. 이 회사는 전환 계획을 자금 지원하기 위해 5000만 달러의 기간 대출을 확보했습니다. 조정된 EBITDA 손실은 890만 달러로, 지난 해와 비슷하지만 1000만에서 1300만 달러의 예상 손실보다 나았습니다. GAAP 순손실은 전년 대비 7460만 달러에서 1220만 달러로 개선되었습니다. 정기 서비스 수익은 2% 증가했으나, 주문형 서비스 수익은 13% 감소했습니다. 이 회사는 2024년 4분기 매출이 2500만에서 2800만 달러 사이가 될 것으로 예상하며, 조정된 EBITDA 손실은 500만에서 800만 달러로 추정하고 있습니다.
Surf Air Mobility a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus de 28,4 millions de dollars, légèrement en baisse par rapport aux 28,9 millions de dollars de l'année précédente, mais dépassant les attentes de 25 à 28 millions de dollars. L'entreprise a sécurisé un prêt à terme de 50 millions de dollars pour financer son plan de transformation. La perte EBITDA ajustée était de 8,9 millions de dollars, stable par rapport à l'année précédente, mais meilleure que la perte attendue de 10 à 13 millions de dollars. La perte nette selon les normes GAAP s'est améliorée à 12,2 millions de dollars, contre 74,6 millions de dollars l'année précédente. Les revenus des services programmés ont augmenté de 2 %, tandis que les revenus des services à la demande ont diminué de 13 %. L'entreprise s'attend à ce que les revenus du quatrième trimestre 2024 se situent entre 25 et 28 millions de dollars avec une perte EBITDA ajustée de 5 à 8 millions de dollars.
Surf Air Mobility hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht, mit Einnahmen von 28,4 Millionen US-Dollar, die leicht unter den 28,9 Millionen US-Dollar des Vorjahres liegen, aber die Erwartungen von 25 bis 28 Millionen US-Dollar übertreffen. Das Unternehmen sicherte sich ein Darlehen über 50 Millionen US-Dollar, um seinen Transformationsplan zu finanzieren. Der bereinigte EBITDA-Verlust betrug 8,9 Millionen US-Dollar, unverändert im Vergleich zum Vorjahr, aber besser als der erwartete Verlust von 10 bis 13 Millionen US-Dollar. Der GAAP-Nettoverlust verbesserte sich auf 12,2 Millionen US-Dollar von 74,6 Millionen US-Dollar im Vorjahr. Die Einnahmen aus dem regulären Service stiegen um 2%, während die Einnahmen aus dem On-Demand-Service um 13% sanken. Das Unternehmen erwartet für das vierte Quartal 2024 Einnahmen zwischen 25 und 28 Millionen US-Dollar mit einem bereinigten EBITDA-Verlust von 5 bis 8 Millionen US-Dollar.
- Secured $50 million term loan for transformation plan
- Revenue of $28.4M exceeded guidance of $25-28M
- Adjusted EBITDA loss of $8.9M better than expected $10-13M loss
- GAAP Net Loss improved significantly to $12.2M from $74.6M YoY
- Scheduled service revenue increased by 2%
- Revenue declined slightly to $28.4M from $28.9M YoY
- On Demand service revenue decreased by 13%
- Completion factor negatively impacted by unplanned maintenance
- Continuing to operate at a loss with negative EBITDA of $8.9M
Insights
The Q3 results show mixed signals for Surf Air Mobility. While revenue of
The improved GAAP net loss of
The transformation plan and focus on profitability over growth are prudent steps, but execution risks remain high given the capital-intensive nature of operations and ongoing investments in electrification R&D. The Q4 guidance suggests continued pressure with projected revenue of
The strategic pivot towards operational efficiency over rapid expansion demonstrates management's realistic approach to the challenging regional aviation market. The delivery of two new Textron aircraft strengthens fleet reliability, while the 20 Essential Air Service (EAS) communities provide stable revenue streams.
The partnership with Palantir for SurfOS development and plans for electrification through Textron collaboration show forward-thinking initiatives. However, the 2027 timeline for Cessna Caravan STC completion indicates a long runway before these investments potentially pay off.
The focus on forming joint ventures for electrification efforts is pragmatic, potentially reducing capital requirements while maintaining strategic positioning in the emerging electric aviation market.
Revenue of
Adjusted EBITDA Loss of
“The financial results for the third quarter demonstrate our continued progress on our transformation plan. We are rightsizing our air mobility operations, implementing new processes, driving improved efficiency and repositioning our air mobility operations for sustained profitability,” said Deanna White, Interim CEO and Chief Operating Officer of Surf Air Mobility.
Capital Structure Update:
On November 14, 2024, the Company closed on a new
Third Quarter Financial Highlights:
Surf Air Mobility is providing unaudited results for the quarter ended September 30, 2024, as well as unaudited pro forma results for the quarter ended September 30, 2023, which assumes the Company’s acquisition of Southern Airways closed as of the beginning of fiscal year 2023.
Revenue
-
Revenue of
$28.4 million $28.9 million $25.0 million $28.0 million
Net Loss
-
GAAP Net Loss improved to
$12.2 million $74.6 million -
Net Loss of
$12.2 million $45.4 million
Adjusted EBITDA
-
Adjusted EBITDA loss of
$8.9 million $8.9 million $10 million $13 million - This outperformance was driven by improved On-Demand operations, realized M&A synergies, lower compensation costs, and lower professional expenses across the quarter. Adjusted EBITDA includes investment in R&D for electrification and software technology.
- See the Adjusted EBITDA table for the reconciliation from Net Loss to Adjusted EBITDA.
Developments on Key Initiatives:
Mobility
-
Revenue for the third quarter was relatively unchanged versus the prior year period on a pro-forma basis.
-
Scheduled service revenue increased by
2% primarily driven by the addition of subsidized route revenue for Williamsport, Purdue and Lanai, partially offset by a lower completion factor. As discussed in the second quarter earnings call, third quarter completion factor was negatively impacted by unplanned maintenance. -
On Demand service revenue decreased by
13% over the comparable period, which represents the impact of management’s focus on profitability rather than near-term market penetration.
-
Scheduled service revenue increased by
- As of September 30, 2024, Surf Air Mobility supported 20 communities under the EAS program.
- The Company has taken delivery of two new aircraft from Textron Aviation in November 2024.
Software
- The Company continued development of SurfOS software aimed at improving operational efficiency, growing revenue, and reducing costs across the Company's airline brands (Southern, Mokulele, and Surf Air) and its On Demand charter service.
- The Company announced a plan to form a new venture, Surf Air Technologies LLC, and entered into an agreement with Palantir Technologies Inc. to power its operating system for the Advanced Air Mobility industry.
Electrification
- Aircraft electrification program remains on track to complete its Cessna Caravan STC in 2027.
- The Company has an exclusive relationship with Textron Aviation to be their supplier of electrified powertrains for the Cessna Caravan.
- The Company is actively pursuing the creation of one or more joint ventures or partnerships with key vendors to reduce cost and separately capitalize the Company’s electrification efforts.
- The Company plans to leverage its platform to enable the launch of third-party electrified aircraft. The Company will support these launches with direct consumer distribution via Surf Air's flight network and operations software tools via SurfOS.
Financial Outlook
-
Fourth Quarter 2024 revenue, in the range of
$25 million $28 million -
Adjusted EBITDA loss, in the range of
$5 million $8 million
Investor Presentation – November 2024
The Company’s new investor presentation can be found here or by visiting the Company’s investor website at investors.surfair.com.
Conference Call
Surf Air Mobility will host a conference call today at 5:00 pm ET. Interested parties can register in advance to listen to the webcast here or can find a link on the ‘Events & Presentations’ section of our investor relations website.
Alternatively, listeners may dial into the call as follows:
International (Toll) - (646) 307-1963
Conference ID: 4775356
About Surf Air Mobility
Surf Air Mobility is a
Forward-Looking Statements
This Press Release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated benefits of the credit facility; Surf Air Mobility’s implementation of its transformation strategy; travel trends; developments on key strategic initiatives; Surf Air Mobility’s profitability and future financial results; and Surf Air Mobility’s balance sheet and liquidity. Readers of this release should be aware of the speculative nature of forward-looking statements. These statements are based on the beliefs of Surf Air Mobility’s management as well as assumptions made by and information currently available to Surf Air Mobility and reflect Surf Air Mobility’s current views concerning future events. As such, they are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: Surf Air Mobility’s future ability to pay contractual obligations and liquidity will depend on operating performance, cash flow and ability to secure adequate financing; Surf Air Mobility’s limited operating history and that Surf Air Mobility has not yet manufactured any hybrid-electric or fully-electric aircraft; the powertrain technology Surf Air Mobility plans to develop does not yet exist; any accidents or incidents involving hybrid-electric or fully-electric aircraft; the inability to accurately forecast demand for products and manage product inventory in an effective and efficient manner; the dependence on third-party partners and suppliers for the components and collaboration in Surf Air Mobility’s development of hybrid-electric and fully-electric powertrains and its advanced air mobility software platform, and any interruptions, disagreements or delays with those partners and suppliers; the inability to execute business objectives and growth strategies successfully or sustain Surf Air Mobility’s growth; the inability of Surf Air Mobility’s customers to pay for Surf Air Mobility’s services; the inability of Surf Air Mobility to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against Surf Air, Southern or Surf Air Mobility, the risks associated with Surf Air Mobility’s obligations to comply with applicable laws, government regulations and rules and standards of the New York Stock Exchange; and general economic conditions. These and other risks are discussed in detail in the periodic reports that Surf Air Mobility files with the SEC, and investors are urged to review those periodic reports and Surf Air Mobility’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, before making an investment decision. Surf Air Mobility assumes no obligation to update its forward-looking statements except as required by law.
Footnotes
Use of Non-GAAP Financial Measures: Surf Air Mobility uses Adjusted EBITDA to identify and target operational results which is beneficial to management and investors in evaluating operational effectiveness. Pro Forma Adjusted EBITDA is a supplemental measure of Surf Air Mobility’s performance that is not required by, or presented in accordance with,
Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
Surf Air Mobility presents Pro Forma Adjusted EBITDA because it considers this measure to be an important supplemental measure of its performance and believes it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in its industry. Management believes that investors’ understanding of Surf Air Mobility’s performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing its ongoing results of operations. Unaudited pro forma financial information for the third quarter and year to date period ended September 30, 2024, assumes the acquisition of Southern Airways closed as of the beginning of 2023.
Unaudited Condensed Consolidated Balance Sheets as of September 30, 2024, and December 31, 2023:
| September 30, 2024 |
December 31, 2023 |
|||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash | $ |
506 |
|
$ |
1,720 |
|
||
| Accounts receivable, net |
|
4,360 |
|
|
4,965 |
|
||
| Prepaid expenses and other current assets |
|
9,310 |
|
|
11,051 |
|
||
| Total current assets |
|
14,176 |
|
|
17,736 |
|
||
| Restricted cash |
|
616 |
|
|
711 |
|
||
| Property and equipment, net |
|
44,005 |
|
|
45,991 |
|
||
| Intangible assets, net |
|
24,004 |
|
|
26,663 |
|
||
| Operating lease right-of-use assets |
|
8,767 |
|
|
12,818 |
|
||
| Finance lease right-of-use assets |
|
1,194 |
|
|
1,343 |
|
||
| Other assets |
|
5,117 |
|
|
5,727 |
|
||
| Total assets | $ |
97,879 |
|
$ |
110,989 |
|
||
| Liabilities and Shareholders’ Deficit: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
26,791 |
|
$ |
18,854 |
|
||
| Accrued expenses and other current liabilities |
|
72,863 |
|
|
59,582 |
|
||
| Deferred revenue |
|
14,685 |
|
|
19,011 |
|
||
| Current maturities of long-term debt |
|
4,822 |
|
|
5,177 |
|
||
| Operating lease liabilities, current |
|
3,707 |
|
|
4,104 |
|
||
| Finance lease liabilities, current |
|
259 |
|
|
215 |
|
||
| SAFE notes at fair value, current |
|
22 |
|
|
25 |
|
||
| Convertible notes at fair value, current |
|
— |
|
|
7,715 |
|
||
| Due to related parties, current |
|
9,953 |
|
|
25,431 |
|
||
| Total current liabilities |
|
133,102 |
|
|
140,114 |
|
||
| Long-term debt, net of current maturities |
|
17,707 |
|
|
20,617 |
|
||
| Convertible notes at fair value, long-term |
|
8,036 |
|
|
— |
|
||
| Operating lease liabilities, long term |
|
3,215 |
|
|
5,507 |
|
||
| Finance lease liabilities, long term |
|
1,013 |
|
|
1,137 |
|
||
| Due to related parties, long term |
|
48,997 |
|
|
1,673 |
|
||
| Other long-term liabilities |
|
21,419 |
|
|
19,426 |
|
||
| Total liabilities | $ |
233,489 |
|
$ |
188,474 |
|
||
| Commitments and contingencies (Note 12) | ||||||||
| Shareholders’ deficit: | ||||||||
| Common shares, |
$ |
1 |
|
$ |
1 |
|
||
| Additional paid-in capital |
|
543,097 |
|
|
525,049 |
|
||
| Accumulated deficit |
|
(678,708 |
) |
|
(602,535 |
) |
||
| Total shareholders’ deficit | $ |
(135,610 |
) |
$ |
(77,485 |
) |
||
| Total liabilities and shareholders’ deficit | $ |
97,879 |
|
$ |
110,989 |
|
||
Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2024 and 2023: (in thousands, except share and per share data):
| Three Months Ended September 30, |
||||||||
2024 |
2023 |
|||||||
| Revenue | $ |
28,386 |
|
$ |
21,967 |
|
||
| Operating expenses: | ||||||||
| Cost of revenue, exclusive of depreciation and amortization |
|
27,496 |
|
|
20,610 |
|
||
| Technology and development |
|
5,710 |
|
|
2,877 |
|
||
| Sales and marketing |
|
1,282 |
|
|
4,529 |
|
||
| General and administrative |
|
415 |
|
|
55,618 |
|
||
| Depreciation and amortization |
|
2,121 |
|
|
1,356 |
|
||
| Total operating expenses |
|
37,024 |
|
|
84,990 |
|
||
| Operating loss | $ |
(8,638 |
) |
$ |
(63,023 |
) |
||
| Other income (expense): | ||||||||
| Changes in fair value of financial instruments carried at fair value, net | $ |
(1,249 |
) |
$ |
(10,926 |
) |
||
| Interest expense |
|
(2,087 |
) |
|
(935 |
) |
||
| Gain (loss) on extinguishment of debt |
|
— |
|
|
63 |
|
||
| Other income (expense) |
|
(265 |
) |
|
(3,359 |
) |
||
| Total other income (expense), net | $ |
(3,601 |
) |
$ |
(15,157 |
) |
||
| Loss before income taxes |
|
(12,239 |
) |
|
(78,180 |
) |
||
| Income tax benefit |
|
14 |
|
|
3,571 |
|
||
| Net loss | $ |
(12,225 |
) |
$ |
(74,609 |
) |
||
| Net loss per share applicable to common shareholders, basic and diluted | $ |
(0.94 |
) |
$ |
(9.55 |
) |
||
| Weighted-average number of common shares used in net loss per share applicable to common shareholders, basic and diluted |
|
12,970,898 |
|
|
7,813,573 |
|
||
Unaudited Pro Forma Financial Measures; Reconciliation of Net Loss to Adjusted EBITDA for the Three Months Ended September 30, 2024 and Pro forma Net Loss to Pro forma Adjusted EBITDA for the Three Months and Nine Months Ended September 30, 2023 (in thousands):
| Three months ended September 30, | ||||||||
| (in thousands) | 2024 |
2023 (Proforma) |
||||||
| Net loss | $ |
(12,225 |
) |
$ |
(45,358 |
) |
||
| Addback: | ||||||||
| Depreciation and amortization |
|
2,121 |
|
|
2,068 |
|
||
| Interest expense |
|
2,087 |
|
|
1,192 |
|
||
| Income tax expense (benefit) |
|
(14 |
) |
|
(267 |
) |
||
| Stock-based compensation expense(1) |
|
(5,353 |
) |
|
33,442 |
|
||
| Changes in fair value of financial instruments(2) |
|
1,249 |
|
|
— |
|
||
| Transaction costs(3) |
|
70 |
|
|
— |
|
||
| Data license fees(4) |
|
3,125 |
|
|
— |
|
||
| Adjusted EBITDA |
|
(8,940 |
) |
|
(8,923 |
) |
||
| (1)Represents non-cash expenses related to equity-based compensation programs, which vary from period to period depending on various factors including the timing, number, and the valuation of awards. | ||||||||
| (2)Represents fluctuations in the fair value of financial instruments carried at fair value. The fair values of the convertible notes, preferred stock warrant liabilities, and derivative liabilities were based on the values of the notes, warrants, and derivatives upon conversion due to the weighted probability associated with certain events. | ||||||||
| (3)Represents costs related to a public company transaction, including accounting, legal, and listing costs. | ||||||||
| (4) Represents accrued costs related to initial license fees under the Textron Licensing Agreement. | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114451125/en/
For Press:
press@surfair.com
For Investors:
investors@surfair.com
Source: Surf Air Mobility Inc.
FAQ
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