Jet.AI Inc. (JTAI)·Q3 2023 Earnings Summary

Executive Summary

• Q3 2023 total revenue was $3.37M, down from $11.91M in Q3 2022 due to no aircraft inventory for sale; ex-Fractional/Whole Aircraft Sales, core revenue grew over 270% YoY to $3.4M as CharterGPT and services scaled .
• Gross profit was $0.17M (≈5% GM) vs $1.00M in Q3 2022; operating loss widened to $(4.27)M on higher G&A (post de‑SPAC costs and non‑cash SBC) .
• Cash and equivalents were $0.90M at quarter end; working capital remained tight with A/P at $2.88M and deferred revenue of $1.43M .
• Strategic progress: launch of CharterGPT and DynoFlight; focus on “Reroute” module ahead of December release; advanced discussions with Bombardier to add Challenger 3500s to fractional inventory—key potential catalysts alongside software roadmap execution .

What Went Well and What Went Wrong

• What Went Well

  • Core revenue inflected: Software App and On‑Fleet Charter revenue rose 445% YoY to $1.9M, driven by bookings through the newly launched CharterGPT app .
  • New services: Management and Other Services revenue reached $0.78M (vs $0 last year) from a customer aircraft management contract started in Q4 2022 .
  • Product pipeline/tone: “The third quarter saw the release of CharterGPT… DynoFlight… and the realization of triple digit revenue growth adjusted for the fact that we had no aircraft inventory left to sell,” said Executive Chairman Mike Winston; “Talks are in an advanced stage with Bombardier…” .

• What Went Wrong

  • Mixed profitability: Gross profit fell to $0.17M vs $1.00M last year; higher third‑party sub‑charter costs for jet card customers pressured margins despite higher utilization .
  • Opex step‑up: Operating expenses rose to $4.44M (from $3.00M), reflecting public company professional/insurance costs and non‑cash stock‑based comp vesting post‑business combination, widening operating loss to $(4.27)M .
  • Liquidity tightness: Cash was $0.90M; payables increased to $2.88M while deferred revenue rose to $1.43M—underscoring near‑term working capital constraints .

Financial Results

Segment/KPI breakdown

• Revenue mix

  Category	Q3 2022	Q3 2023
  Software App and On‑Fleet Charter ($)	$342,000	$1,900,000
  Management & Other Services ($)	$0	$775,000
  Jet Card & Fractional Programs ($)	$568,000	$732,000
  Total ($)	$910,000 ex aircraft sales	$3,407,000 (approx sum; total reported $3,367,189)

• Balance sheet / liquidity

  Metric	Dec 31, 2022	Sep 30, 2023
  Cash & Equivalents ($)	$1,527,391	$903,909
  Accounts Payable ($)	$242,933	$2,880,901
  Deferred Revenue ($)	$933,361	$1,432,126
  Stockholders’ (Deficit) Equity ($)	$736,293	$(4,257,094)

Notes:

• 2022 revenue included $11.9M from Fractional/Whole Aircraft Sales in Q3 2022, absent in 2023 due to lack of saleable inventory .
• YoY core growth (ex aircraft sales) exceeded 270% to $3.4M .

Guidance Changes

Earnings Call Themes & Trends

Note: No Q3 2023 earnings call transcript was available in the document set; themes reflect management press release commentary and recent product announcements.

Management Commentary

• “The third quarter saw the release of CharterGPT, the first AI charter broker, DynoFlight, the first carbon removal credit API for aviation, and the realization of triple digit revenue growth adjusted for the fact that we had no aircraft inventory left to sell… Talks are in an advanced stage with Bombardier…” — Mike Winston, Executive Chairman .
• “We now believe that our customers will adopt Reroute first… we’re going to focus development resources on deepening the functionality of Reroute ahead of its release in December… FlightClub and JetCardGPT are now expected in Q1 2024… We remain laser focused on rigorously balancing accretion and dilution…” .

Q&A Highlights

No Q3 2023 earnings call transcript or Q&A was available in the document set; no analyst Q&A highlights to report [ListDocuments showed no earnings-call-transcript for the period].

Estimates Context

• Street consensus (S&P Global) for Q3 2023 EPS/revenue/EBITDA was not retrievable at this time; therefore, we cannot benchmark reported results vs. consensus. S&P Global consensus data was unavailable at time of analysis.

Key Takeaways for Investors

• Core operations are scaling: CharterGPT and services lifted core revenue (ex aircraft sales) by 270%+ YoY to ~$3.4M, with Software and On‑Fleet Charter up 445% YoY .
• Profitability remains a work-in-progress: Low gross margin (~5%) and higher public-company/SBC costs widened losses; managing sub‑charter costs and utilization mix is key to margin recovery .
• Liquidity is tight: <$1M cash, higher payables, and negative equity underscore the importance of disciplined cash management and access to growth capital .
• Near‑term catalysts: December release of “Reroute,” early 2024 launches (FlightClub, JetCardGPT), and potential Bombardier Challenger 3500 additions that could restart aircraft sales in the fractional pipeline .
• ESG/enterprise hooks: DynoFlight’s API creates an entry point with operators and supports integration at checkout—potentially broadening B2B software revenue streams .
• Absent aircraft inventory depressed YoY comps; re‑stocking and software monetization velocity are the swing factors for the stock’s narrative into 2024 .

Appendix: Additional Detail from Press Releases

• CharterGPT launch (July 31, 2023): NLP-driven app to automate private jet booking; set for iOS/Android rollout .
• DynoFlight launch (Aug 4, 2023): Carbon removal credit platform/API for aviation operators; supports route‑specific emissions estimates and credit retirement .

Sources:

• Q3 2023 8‑K (press release and financial statements) .
• CharterGPT launch 8‑K (EX‑99.1 press release) .
• DynoFlight launch (EX‑99.1 press release within 8‑K) .