Strata Critical Medical (SRTA) 27th Annual Needham Growth Conference summary

Company overview and business segments

• Operates as an asset-light transportation and logistics provider focused on medical organ transport and urban air mobility.

• Largest dedicated air transporter of human organs in the US and market leader in key urban air mobility markets like New York and Southern Europe.

• Medical segment uses a mix of owned and third-party aircraft, with about one-third of flights on owned planes.

• Passenger segment is entirely asset-light, leveraging exclusive infrastructure and proprietary software for customer experience.

• Exclusive infrastructure and partnerships drive competitive advantage and customer acquisition.

Medical business growth and innovation

• Market growth driven by regulatory changes enabling broader organ matching and longer transport distances.

• Adoption of perfusion and preservation technologies increases organ viability and enables use of DCD (donor circulatory death) organs, now the fastest-growing segment.

• Asset-light network and selective aircraft ownership provide flexibility, cost savings, and higher margins.

• Investments in ground hubs and ancillary services (organ placement, tissue, and blood sample logistics) expand market reach.

• M&A strategy leverages industry relationships, with tuck-in acquisitions supplementing rapid organic growth.

Passenger business and future opportunities

• Focused on high-value urban markets with exclusive terminals and lounges, offering airport transfers and seasonal routes.

• Proprietary software and infrastructure create a strong customer experience and enable high-margin ancillary revenue through partnerships.

• Positioned to transition to eVTOL aircraft, which are quieter and emission-free, expected to unlock further growth as communities embrace new infrastructure.

• Recent route rationalization and restructuring in Canada and Europe aim to improve profitability, with full-year impact expected in 2024.

• Demand stimulation achieved through partnerships (Uber, hotels, airlines) and performance marketing.