Backblaze Announces First Quarter 2024 Financial Results
Backblaze, Inc. (Nasdaq: BLZE) reported a 28% revenue growth in Q1 2024, with B2 Cloud Storage revenue increasing by 47%. Gross profit increased to $15.8 million, with adjusted EBITDA margin at 6%. The company introduced Event Notifications and announced a partnership with Axle AI. Annual recurring revenue was up 27% to $122.1 million. Financial outlook for Q2 2024 includes revenue between $30.7 to $31.1 million and adjusted EBITDA margin between 6% to 8%. For full-year 2024, revenue is expected to be between $126.0 to $128.0 million.
28% revenue growth in Q1 2024, with B2 Cloud Storage revenue up by 47%.
Gross profit increased to $15.8 million, with adjusted EBITDA margin at 6%.
Introduction of innovative products like Event Notifications and partnership with Axle AI.
Annual recurring revenue up 27% to $122.1 million.
Positive financial outlook for Q2 2024 with revenue expected between $30.7 to $31.1 million and adjusted EBITDA margin between 6% to 8%.
Full-year 2024 revenue expected to be between $126.0 to $128.0 million.
Net loss of $11.1 million in Q1 2024 compared to a net loss of $17.1 million in Q1 2023.
Decrease in NRR rate from 111% to 112% in Q1 2024.
Gross customer retention rate down to 91% in Q1 2024 compared to 91% in Q1 2023.
Announcement of Chief Financial Officer's retirement and upcoming search for successor.
Insights
The reported 28% revenue growth and significant improvement in adjusted EBITDA margin from -12% to 6% are strong indicators of Backblaze's growing financial health. The growth in B2 Cloud Storage revenue by 47% is particularly noteworthy, reflecting a robust demand for cloud storage solutions. Furthermore, a net loss decrease from $17.1 million to $11.1 million, alongside a reduced net loss per share, suggests effective cost management and a path towards profitability.
However, the forward-looking guidance with an adjusted EBITDA margin forecast of 6% to 8% for Q2 2024 and 8% to 10% for the full year, implies a cautious optimism. Investors should consider the conservative nature of these projections in the context of broader market trends in cloud storage, including increasing competition and potential pricing pressures.
The announcement of the CFO's retirement can introduce uncertainty, but the commitment to a smooth transition is reassuring. It's important to monitor the impact of new leadership on financial strategies and investor confidence.
Backblaze's innovation with Event Notifications positions the company advantageously within the tech integration landscape, signaling continuous product enhancement and adaptability — critical for sustaining growth in a competitive market. This advancement could potentially increase the stickiness of their services, contributing to the strong net revenue retention (NRR) rate of 112%, which exceeds the 100% benchmark for healthy SaaS businesses.
The partnership with Axle AI and the inclusion in various security and procurement initiatives underscore Backblaze's commitment to expanding its ecosystem. Strengthening these relationships can diversify revenue streams and embed the company more deeply within customers' operations, offering a more stable long-term outlook.
Backblaze's performance in the Annual Recurring Revenue (ARR) with a 27% increase is an essential metric indicating the company's ability to maintain and grow its customer base over time. The impressive 43% increase in B2 Cloud Storage ARR points to the scalability of their business model in a high-demand market segment.
Investor sentiment may be buoyed by the company's solid gross customer retention rate, which has remained consistent year over year. This stability is important for predicting future revenue and understanding the company's position within the competitive landscape of cloud storage providers.
SAN MATEO, Calif., May 08, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (Nasdaq: BLZE), a leading specialized storage cloud platform, today announced results for its first quarter ended March 31, 2024.
“We had a record start to 2024, with dramatically improved financial metrics year over year including Q1 revenue growth of
First Quarter 2024 Financial Highlights:
- Revenue of
$30.0 million , an increase of28% year-over-year (YoY).- B2 Cloud Storage revenue was
$14.6 million , an increase of47% YoY. - Computer Backup revenue was
$15.3 million , an increase of14% YoY.
- B2 Cloud Storage revenue was
- Gross profit of
$15.8 million , or53% of revenue, compared to$11.0 million or47% of revenue, in Q1 2023. - Adjusted gross profit of
$23.0 million , or77% of revenue, compared to$17.0 million or72% of revenue in Q1 2023. - Net loss was
$11.1 million compared to a net loss of$17.1 million in Q1 2023. - Net loss per share was
$0.27 compared to a net loss per share of$0.50 in Q1 2023. - Adjusted EBITDA was
$1.9 million , or6% of revenue, compared to$(2.9) million or (12% ) of revenue in Q1 2023. - Non-GAAP net loss of
$5.5 million compared to non-GAAP net loss of$9.0 million in Q1 2023. - Non-GAAP net loss per share of
$0.14 compared to a non-GAAP net loss per share of$0.26 in Q1 2023. - Cash, short-term investments and restricted cash, non-current totaled
$32.8 million as of March 31, 2024.
First Quarter 2024 Operational Highlights:
- Annual recurring revenue (ARR) was
$122.1 million , an increase of27% YoY.- B2 Cloud Storage ARR was
$59.5 million , an increase of43% YoY. - Computer Backup ARR was
$62.6 million , an increase of15% YoY.
- B2 Cloud Storage ARR was
- Net revenue retention (NRR) rate was
112% compared to111% in Q1 2023.- B2 Cloud Storage NRR was
126% compared to120% in Q1 2023. - Computer Backup NRR was
101% compared to106% in Q1 2023.
- B2 Cloud Storage NRR was
- Gross customer retention rate was
91% in Q1 2024 and Q1 2023.- B2 Cloud Storage gross customer retention rate was
89% in Q1 2024 compared to90% in Q1 2023. - Computer Backup gross customer retention rate was
91% in Q1 2024 compared to90% in Q1 2023.
- B2 Cloud Storage gross customer retention rate was
Recent Business Highlights:
- Continued Innovation with Event Notifications: Provides functionality for application developers and media teams to automate workflows between best-of-breed cloud services with B2 Cloud Storage as the foundational data platform.
- Named a Carahsoft ValuePoint Approved Vendor: National Association of State Procurement Officials (NASPO) contract speeds and eases the procurement process for state and local government and education (SLED) institutions.
- Elevated Data Security Standards: Earned inclusion in StateRAMP Progressing Snapshot and in the Motion Picture Association’s Trusted Partner Network (TPN) initiative, accelerating procurement for SLED institutions and media entertainment industry customers.
- Announced Partnership with Axle AI: New Powered by Backblaze partner leverages AI to support intelligent search for media customers.
Financial Outlook:
Based on information available as of the date of this press release,
For the second quarter of 2024 we expect:
- Revenue between
$30.7 million to$31.1 million - Adjusted EBITDA margin between
6% to8% - Basic shares outstanding of 42.0 million to 42.5 million shares
For full-year 2024 we expect:
- Revenue between
$126.0 million to$128.0 million - Adjusted EBITDA margin between
8% to10%
Other News:
Today we announced that our Chief Financial Officer, Frank Patchel, plans to retire later this year. A search for his successor is underway. Mr. Patchel intends to remain at Backblaze through the hiring and onboarding of the new CFO to help ensure a smooth transition.
Conference Call Information:
Backblaze will host a conference call today, May 8, 2024 at 1:30 p.m. PT (4:30 p.m. ET) to review its financial results.
Attend the webcast here: https://edge.media-server.com/mmc/p/5kr5u64i
Register to listen by phone here: https://dpregister.com/sreg/10187654/fc08c68b54
Phone registrants will receive dial-in information via email.
An archive of the webcast will be available shortly after its completion on the Investor Relations section of the Backblaze website at https://ir.backblaze.com.
About Backblaze
Backblaze makes it astonishingly easy to store, use, and protect data. The Backblaze Storage Cloud provides a foundation for businesses, developers, IT professionals, and individuals to build applications, host content, manage media, back up and archive data, and more. With over three billion gigabytes of data storage under management, the company currently works with over 500,000 customers in over 175 countries. Founded in 2007, the company is based in San Mateo, CA. For more information, please go to www.backblaze.com.
Cautionary Note Regarding Forward-looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements are frequently identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or other similar terms or expressions that relate to our future performance, expectations, strategy, plans or intentions, and include statements in the section titled “Financial Outlook” and statements regarding the use and impact of our IPO proceeds.
Our actual results could differ materially from those stated in or implied by the forward-looking statements in this press release due to a number of factors, including but not limited to: market competition, including competitors that may have greater size, offerings and resources; effectively managing growth; disruption in our service or loss of availability of customers’ data; cyberattacks; ability to attract and retain customers, including increasingly larger customers and the continued growth of data stored by our customers; continued growth consistent with historical levels; ability to offer new features and other offerings on a timely basis and the impact of pricing and other product offering changes; material defects or errors in our software; supply chain disruption; ability to maintain existing relationships with partners and to enter into new partnerships; ability to remediate and prevent material weaknesses in our internal controls over financial reporting; hiring and retention of key employees; the impact of a pandemic, war or hostilities, including the Israel-Hamas conflict, and other significant world or regional events on our business and the business of our customers, vendors, supply chain and partners; litigation and other disputes; and general market, political, economic, and business conditions. Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual results or outcomes to differ materially from those included in or implied by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings and reports we make with the SEC from time to time.
The forward-looking statements made in this release reflect our views as of the date of this press release. We undertake no obligation to update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use non-GAAP adjusted gross margin and adjusted EBITDA margin. These non-GAAP financial measures exclude certain items and are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of the company’s performance and provide an additional basis for assessing our operating results. Please see the appendix attached to this press release for a reconciliation of non-GAAP adjusted gross margin and adjusted EBITDA margin to the most directly comparable GAAP financial measures.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses and other factors in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict with reasonable accuracy and subject to constant change.
Adjusted Gross Profit (and Margin)
We believe adjusted gross profit (and margin), when taken together with our GAAP financial results, provides a meaningful assessment of our performance and is useful to us for evaluating our ongoing operations and for internal planning and forecasting purposes.
We define adjusted gross margin as gross profit, exclusive of stock-based compensation expense, depreciation expense of our property and equipment, and amortization expense of capitalized internal-use software included within cost of revenue, as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, because we do not consider it indicative of our core operating performance. We exclude depreciation expense of our property and equipment and amortization expense of capitalized internal-use software, because these may not reflect current or future cash spending levels to support our business. We believe adjusted gross margin provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric eliminates the effects of depreciation and amortization.
Adjusted EBITDA
We define adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, investment income, income tax provision, workforce reduction and related severance charges, and other non-recurring charges. We use adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider adjusted EBITDA to be an important measure because it helps illustrate underlying trends in our business and our historical operating performance on a more consistent basis.
Non-GAAP Net Income (Loss)
We define non-GAAP net income (loss) as net income adjusted to exclude stock-based compensation and other items we deem non-recurring. We believe that non-GAAP net income (loss), when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook.
Key Business Metrics:
Annual Recurring Revenue (ARR)
We define annual recurring revenue (ARR) as the annualized value of all Backblaze B2 and Computer Backup arrangements as of the end of a period. Given the renewable nature of our business, we view ARR as an important indicator of our financial performance and operating results, and we believe it is a useful metric for internal planning and analysis. ARR is calculated based on multiplying the monthly revenue from all Backblaze B2 and Computer Backup arrangements, which represent greater than
Net Revenue Retention Rate (NRR)
Our overall net revenue retention rate (NRR) is a trailing four-quarter average of the recurring revenue from a cohort of customers in a quarter as compared to the same quarter in the prior year. We calculate our overall net revenue retention rate for a quarter by dividing (i) recurring revenue in the current quarter from any accounts that were active at the end of the same quarter of the prior year by (ii) recurring revenue in the current corresponding quarter from those same accounts. Our overall net revenue retention rate includes any expansion of revenue from existing customers and is net of revenue contraction and customer attrition, and excludes revenue from new customers in the current period. Our net revenue retention rate for Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall net revenue retention rate based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively.
Gross Customer Retention Rate
We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. We believe our high gross customer retention rates demonstrate that we serve a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next. To calculate our gross customer retention rate, we take the trailing four-quarter average of the percentage of cohort of customers who were active at the end of the quarter in the prior year that are still active at the end of the current quarter. We calculate our gross customer retention rate for a quarter by dividing (i) the number of accounts that generated revenue in the last month of the current quarter that also generated recurring revenue during the last month of the corresponding quarter in the prior year, by (ii) the number of accounts that generated recurring revenue during the last month of the corresponding quarter in the prior year.
Investors Contact
Mimi Kong
Senior Director, Investor Relations and Corporate Development
ir@backblaze.com
Press Contact
Jeanette Foster
Communications Manager
press@backblaze.com
| BACKBLAZE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) | |||||||
| March 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 6,319 | $ | 12,502 | |||
| Short-term investments, net | 21,841 | 16,799 | |||||
| Accounts receivable, net | 1,621 | 800 | |||||
| Prepaid expenses and other current assets | 8,938 | 8,413 | |||||
| Total current assets | 38,719 | 38,514 | |||||
| Restricted cash, non-current | 4,682 | 4,128 | |||||
| Property and equipment, net | 42,585 | 45,600 | |||||
| Operating lease right-of-use assets | 9,470 | 9,980 | |||||
| Capitalized internal-use software, net | 35,467 | 32,521 | |||||
| Other assets | 963 | 944 | |||||
| Total assets | $ | 131,886 | $ | 131,687 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,441 | $ | 1,973 | |||
| Accrued expenses and other current liabilities(1) | 6,373 | 8,768 | |||||
| Finance lease liabilities and lease financing obligations, current | 17,352 | 18,492 | |||||
| Operating lease liabilities, current | 1,808 | 1,878 | |||||
| Deferred revenue, current | 28,684 | 25,976 | |||||
| Total current liabilities | 55,658 | 57,087 | |||||
| Debt facility, non-current | 4,682 | 4,128 | |||||
| Deferred revenue, non-current | 4,540 | 4,073 | |||||
| Finance lease liabilities and lease financing obligations, non-current | 11,598 | 13,310 | |||||
| Operating lease liabilities, non-current | 7,954 | 8,151 | |||||
| Total liabilities | $ | 84,432 | $ | 86,749 | |||
| Commitments and contingencies | |||||||
| Stockholders’ Equity | |||||||
| Class A common stock, | 4 | 4 | |||||
| Additional paid-in capital | 205,957 | 192,388 | |||||
| Accumulated deficit | (158,507 | ) | (147,454 | ) | |||
| Total stockholders’ equity | 47,454 | 44,938 | |||||
| Total liabilities and stockholders’ equity | $ | 131,886 | $ | 131,687 | |||
| (1) | As of March 31, 2024, the company reclassified certain current liabilities from accounts payable to accrued expenses and other current liabilities. The prior period amount of |
| BACKBLAZE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| Revenue | $ | 29,968 | $ | 23,394 | |||
| Cost of revenue | 14,157 | 12,425 | |||||
| Gross profit | 15,811 | 10,969 | |||||
| Operating expenses: | |||||||
| Research and development | 9,746 | 10,533 | |||||
| Sales and marketing | 10,022 | 10,559 | |||||
| General and administrative | 6,553 | 6,677 | |||||
| Total operating expenses | 26,321 | 27,769 | |||||
| Loss from operations | (10,510 | ) | (16,800 | ) | |||
| Investment income | 384 | 610 | |||||
| Interest expense | (921 | ) | (923 | ) | |||
| Loss before provision for income taxes | (11,047 | ) | (17,113 | ) | |||
| Income tax provision | 6 | — | |||||
| Net loss | $ | (11,053 | ) | $ | (17,113 | ) | |
| Net loss per share, basic and diluted | $ | (0.27 | ) | $ | (0.50 | ) | |
| Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted(1) | 40,225,239 | 33,922,683 | |||||
| (1) | On July 6, 2023, all shares of the Company’s then outstanding Class B common stock were automatically converted into the same number of Class A common stock, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. |
| BACKBLAZE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net loss | $ | (11,053 | ) | $ | (17,113 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
| Net accretion of discount on investment securities and net realized investment gains | (21 | ) | (540 | ) | |||
| Noncash lease expense on operating leases | 510 | 647 | |||||
| Depreciation and amortization | 6,912 | 5,733 | |||||
| Stock-based compensation | 5,529 | 5,828 | |||||
| Loss on disposal of assets | 15 | — | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (821 | ) | 67 | ||||
| Prepaid expenses and other current assets | (568 | ) | 474 | ||||
| Other assets | (19 | ) | 22 | ||||
| Accounts payable | (457 | ) | (48 | ) | |||
| Accrued expenses and other current liabilities | 481 | (565 | ) | ||||
| Deferred revenue | 3,175 | 957 | |||||
| Operating lease liabilities | (267 | ) | (653 | ) | |||
| Net cash provided by (used in) operating activities | 3,416 | (5,191 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of marketable securities | (14,778 | ) | (9,734 | ) | |||
| Maturities of marketable securities | 9,758 | 23,500 | |||||
| Proceeds from disposal of property and equipment | (15 | ) | — | ||||
| Purchases of property and equipment | (423 | ) | (3,023 | ) | |||
| Capitalized internal-use software costs | (3,323 | ) | (3,434 | ) | |||
| Net cash (used in) provided by investing activities | (8,781 | ) | 7,309 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Principal payments on finance leases and lease financing obligations | (4,802 | ) | (5,112 | ) | |||
| Proceeds from debt facility | 554 | 2,996 | |||||
| Principal payments on insurance premium financing | (293 | ) | (509 | ) | |||
| Proceeds from exercises of stock options | 4,277 | 859 | |||||
| Net cash used in financing activities | (264 | ) | (1,766 | ) | |||
| Net (decrease) increase in cash and restricted cash, non-current | (5,629 | ) | 352 | ||||
| Cash, cash equivalents, restricted cash, current and restricted cash, non-current at beginning of period | 16,630 | 11,165 | |||||
| Cash, restricted cash, current and restricted cash, non-current at end of period | $ | 11,001 | $ | 11,517 | |||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
| Cash paid for interest | $ | 944 | $ | 918 | |||
| Cash paid for income taxes | $ | 2 | $ | 2 | |||
| Cash paid for operating lease liabilities | $ | 621 | $ | 724 | |||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
| Stock-based compensation included in capitalized internal-use software | $ | 1,049 | $ | 1,008 | |||
| Accrued bonus settled in restricted stock units | $ | 3,507 | $ | 1,848 | |||
| 2023 Bonus Plan expense classified as stock-based compensation | $ | 473 | $ | 590 | |||
| 2024 Bonus Plan accrual classified as stock-based compensation | $ | 327 | $ | — | |||
| Equipment acquired through finance lease and lease financing obligations | $ | 2,216 | $ | 3,023 | |||
| Accruals related to purchases of property and equipment | $ | 29 | $ | 886 | |||
| Assets obtained in exchange for operating lease obligations | $ | — | $ | 183 | |||
| Receivable recorded due to stock option exercises pending settlement | $ | 23 | $ | 154 | |||
| RECONCILIATION OF CASH AND RESTRICTED CASH | |||||||
| Cash and cash equivalents | $ | 6,319 | $ | 4,047 | |||
| Restricted cash - included in prepaid expenses and other current assets | $ | — | $ | 169 | |||
| Restricted cash, non-current | $ | 4,682 | $ | 7,301 | |||
| Total cash and restricted cash | $ | 11,001 | $ | 11,517 | |||
| BACKBLAZE, INC. RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) | |||||||
| Adjusted Gross Profit and Adjusted Gross Margin | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| (in thousands, except percentages) | |||||||
| Gross profit | $ | 15,811 | $ | 10,969 | |||
| Adjustments: | |||||||
| Stock-based compensation | 386 | 416 | |||||
| Depreciation and amortization | 6,774 | 5,570 | |||||
| Adjusted gross profit | $ | 22,971 | $ | 16,955 | |||
| Gross margin | 53 | % | 47 | % | |||
| Adjusted gross margin | 77 | % | 72 | % | |||
| Adjusted EBITDA | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| (in thousands, except percentages) | |||||||
| Net loss | $ | (11,053 | ) | $ | (17,113 | ) | |
| Adjustments: | |||||||
| Depreciation and amortization | 6,912 | 5,733 | |||||
| Stock-based compensation(1) | 5,529 | 5,703 | |||||
| Interest expense and investment income | 537 | 313 | |||||
| Income tax provision | 6 | — | |||||
| Workforce reduction and related severance charges | — | 2,457 | |||||
| Adjusted EBITDA | $ | 1,931 | $ | (2,907 | ) | ||
| Adjusted EBITDA margin | 6 | % | (12) % | ||||
| (1) | During the three months ended March 31, 2023, |
Non-GAAP Net Loss
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| (in thousands, except share and per share data) | |||||||
| Net loss | $ | (11,053 | ) | $ | (17,113 | ) | |
| Adjustments: | |||||||
| Stock-based compensation(1) | 5,529 | 5,703 | |||||
| Workforce reduction and related severance charges | — | 2,457 | |||||
| Non-GAAP net loss | $ | (5,524 | ) | $ | (8,953 | ) | |
| Non-GAAP net loss per share, basic and diluted | $ | (0.14 | ) | $ | (0.26 | ) | |
| Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted(2) | 40,225,239 | 33,922,683 | |||||
| (1) | During the three months ended March 31, 2023, |
| (2) | On July 6, 2023, all shares of the Company’s then outstanding Class B common stock were automatically converted into the same number of Class A common stock, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. |
| BACKBLAZE, INC. SUPPLEMENTAL FINANCIAL INFORMATION (unaudited) | |||||||
| Stock-based Compensation | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| (In thousands, unaudited) | |||||||
| Cost of revenue | $ | 386 | $ | 416 | |||
| Research and development | 2,108 | 2,133 | |||||
| Sales and marketing | 1,822 | 2,152 | |||||
| General and administrative | 1,213 | 1,127 | |||||
| Total stock-based compensation expense | $ | 5,529 | $ | 5,828 | |||
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