Backblaze Announces Second Quarter 2024 Financial Results
Backblaze (BLZE) reported strong Q2 2024 financial results, with 27% year-over-year revenue growth to $31.3 million. B2 Cloud Storage revenue surged 43% YoY to $15.4 million, while Computer Backup revenue increased 15% YoY to $15.9 million. The company's gross profit margin improved to 55% from 49% in Q2 2023, and adjusted gross profit margin rose to 78% from 75%.
Notably, Adjusted EBITDA turned positive at $2.7 million (9% of revenue), compared to $(1.8) million in Q2 2023. The net loss narrowed to $10.3 million, with a loss per share of $0.25. Backblaze's Annual Recurring Revenue (ARR) grew 30% YoY to $126.3 million, with B2 Cloud Storage ARR up 44% YoY. The company also launched innovative features like B2 Live Read and continued its up-market momentum.
Backblaze (BLZE) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con una crescita del fatturato del 27% anno su anno, raggiungendo i 31,3 milioni di dollari. I ricavi da B2 Cloud Storage sono aumentati del 43% rispetto all'anno precedente, arrivando a 15,4 milioni di dollari, mentre i ricavi da Computer Backup sono cresciuti del 15% rispetto all'anno precedente, raggiungendo i 15,9 milioni di dollari. Il margine di profitto lordo dell'azienda è migliorato al 55%, rispetto al 49% del secondo trimestre del 2023, e il margine di profitto lordo rettificato è aumentato al 78%, rispetto al 75%.
Significativamente, l'EBITDA rettificato è diventato positivo con un valore di 2,7 milioni di dollari (9% del fatturato), rispetto a un margine negativo di 1,8 milioni di dollari nel secondo trimestre del 2023. La perdita netta si è ridotta a 10,3 milioni di dollari, con una perdita per azione di 0,25 dollari. I ricavi annuali ricorrenti (ARR) di Backblaze sono cresciuti del 30% anno su anno, raggiungendo i 126,3 milioni di dollari, con l'ARR di B2 Cloud Storage in aumento del 44% anno su anno. L'azienda ha anche lanciato funzionalità innovative come B2 Live Read e ha continuato a mantenere il proprio slancio nel mercato di fascia alta.
Backblaze (BLZE) reportó resultados financieros sólidos para el segundo trimestre de 2024, con un crecimiento del 27% en los ingresos interanual, alcanzando los 31.3 millones de dólares. Los ingresos de B2 Cloud Storage aumentaron un 43% interanual, llegando a 15.4 millones de dólares, mientras que los ingresos de Computer Backup crecieron un 15% interanual hasta 15.9 millones de dólares. El margen de beneficio bruto de la empresa mejoró al 55%, frente al 49% en el segundo trimestre de 2023, y el margen de beneficio bruto ajustado subió al 78%, desde el 75%.
Notablemente, el EBITDA ajustado se volvió positivo con 2.7 millones de dólares (9% de los ingresos), en comparación con una pérdida de (1.8) millones de dólares en el segundo trimestre de 2023. La pérdida neta se redujo a 10.3 millones de dólares, con una pérdida por acción de 0.25 dólares. Los ingresos recurrentes anuales (ARR) de Backblaze crecieron un 30% interanual alcanzando los 126.3 millones de dólares, con el ARR de B2 Cloud Storage subiendo un 44% interanual. La empresa también lanzó características innovadoras como B2 Live Read y continuó su impulso en el mercado premium.
Backblaze (BLZE)는 2024년 2분기에 강력한 재무 결과를 보고했으며, 매출이 전년 대비 27% 증가하여 3,130만 달러에 도달했습니다. B2 클라우드 스토리지 매출은 전년 대비 43% 급증하여 1,540만 달러에 이르렀고, 컴퓨터 백업 매출은 전년 대비 15% 증가하여 1,590만 달러에 도달했습니다. 회사의 총 이익률이 개선되어 2023년 2분기의 49%에서 55%로 올라갔으며, 조정된 총 이익률은 75%에서 78%로 증가했습니다.
특히, 조정된 EBITDA가 긍정적으로 전환되어 270만 달러(매출의 9%)에 달했으며, 2023년 2분기의 (180만) 달러 손실과 비교됩니다. 순 손실은 1,030만 달러로 축소되었고, 주당 손실은 0.25 달러였습니다. Backblaze의 연간 반복 수익(ARR)은 전년 대비 30% 성장하여 1억 2,630만 달러에 이르렀으며, B2 클라우드 스토리지 ARR은 전년 대비 44% 증가했습니다. 회사는 또한 B2 Live Read와 같은 혁신적인 기능을 출시하고 고급 시장에서의 성장세를 지속했습니다.
Backblaze (BLZE) a annoncé de solides résultats financiers pour le deuxième trimestre 2024, avec une croissance des revenus de 27% d'une année sur l'autre, atteignant 31,3 millions de dollars. Les revenus de B2 Cloud Storage ont bondi de 43% par rapport à l'année précédente, s'élevant à 15,4 millions de dollars, tandis que les revenus de Computer Backup ont augmenté de 15% d'une année sur l'autre, atteignant 15,9 millions de dollars. La marge brute de profit de l'entreprise s'est améliorée à 55% contre 49% au deuxième trimestre 2023, et la marge brute de profit ajustée a augmenté à 78% contre 75%.
Fait notable, l'EBITDA ajusté est devenu positif à 2,7 millions de dollars (9% des revenus), contre une perte de (1,8) million de dollars au deuxième trimestre 2023. La perte nette s'est réduite à 10,3 millions de dollars, avec une perte par action de 0,25 dollar. Les revenus récurrents annuels (ARR) de Backblaze ont augmenté de 30% d'une année sur l'autre, atteignant 126,3 millions de dollars, avec un ARR de B2 Cloud Storage en hausse de 44% d'une année sur l'autre. L'entreprise a également lancé des fonctionnalités innovantes telles que B2 Live Read et a continué à maintenir son élan sur le marché haut de gamme.
Backblaze (BLZE) hat starke finanzielle Ergebnisse für das zweite Quartal 2024 gemeldet, mit einem Umsatzwachstum von 27% im Jahresvergleich auf 31,3 Millionen Dollar. Die Einnahmen aus B2 Cloud Storage stiegen um 43% im Vergleich zum Vorjahr auf 15,4 Millionen Dollar, während die Einnahmen aus Computer Backup um 15% im Jahresvergleich auf 15,9 Millionen Dollar zunahmen. Die Bruttogewinnspanne des Unternehmens verbesserte sich auf 55% von 49% im zweiten Quartal 2023, und die angepasste Bruttogewinnspanne stieg auf 78% von 75%.
Bemerkenswert ist, dass das angepasste EBITDA positiv wurde und 2,7 Millionen Dollar (9% des Umsatzes) betrug, im Vergleich zu einem Verlust von (1,8) Millionen Dollar im zweiten Quartal 2023. Der Nettoverlust verringerte sich auf 10,3 Millionen Dollar, mit einem Verlust pro Aktie von 0,25 Dollar. Der jährliche wiederkehrende Umsatz (ARR) von Backblaze wuchs um 30% im Jahresvergleich auf 126,3 Millionen Dollar, wobei der ARR von B2 Cloud Storage um 44% im Jahresvergleich stieg. Das Unternehmen brachte auch innovative Funktionen wie B2 Live Read auf den Markt und setzte seinen Aufwärtstrend im Premium-Segment fort.
- Revenue grew 27% YoY to $31.3 million
- B2 Cloud Storage revenue increased 43% YoY to $15.4 million
- Gross profit margin improved to 55% from 49% in Q2 2023
- Adjusted EBITDA turned positive at $2.7 million (9% of revenue)
- Annual Recurring Revenue (ARR) grew 30% YoY to $126.3 million
- B2 Cloud Storage ARR increased 44% YoY
- Net revenue retention rate improved to 114% from 110% in Q2 2023
- Customers contributing over $50,000 in ARR grew more than 55% YoY
- Net loss of $10.3 million, though improved from $14.3 million in Q2 2023
- Net loss per share of $0.25
- Slight decrease in gross customer retention rate to 90% from 91% in Q2 2023
Insights
Backblaze's Q2 2024 results show strong growth and improving profitability. The
Backblaze's introduction of B2 Live Read is a game-changer for the cloud storage industry. This patent-pending feature allows users to access and edit files during upload, which is particularly valuable for media and entertainment workflows. It addresses a critical pain point in cloud storage - the waiting time for large file uploads. The company's focus on up-market momentum, with
Backblaze's Q2 results reveal a strong market position in the cloud storage sector. The
SAN MATEO, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (Nasdaq: BLZE), the cloud storage innovator delivering a modern alternative to traditional cloud providers, today announced results for its second quarter ended June 30, 2024.
“Q2 marked another strong growth quarter for Backblaze, along with efficient execution driving continued margin expansion and momentum moving up-market,” said Gleb Budman, CEO of Backblaze. “We continued our recent string of innovations with the launch of Backblaze B2 Live Read in June. This transformative, patent-pending feature enables customers to use their data during the upload process, which has unique value for live broadcast workflows.
“Additionally, we are excited to introduce our new Chief Revenue Officer Jason Wakeam and Chief Financial Officer Marc Suidan, both accomplished leaders who will help drive our growth strategy.”
Second Quarter 2024 Financial Highlights:
- Revenue of
$31.3 million , an increase of27% year-over-year (YoY).- B2 Cloud Storage revenue was
$15.4 million , an increase of43% YoY. - Computer Backup revenue was
$15.9 million , an increase of15% YoY.
- B2 Cloud Storage revenue was
- Gross profit of
$17.2 million , or55% of revenue, compared to$12.1 million or49% of revenue, in Q2 2023. - Adjusted gross profit of
$24.5 million , or78% of revenue, compared to$18.4 million , or75% of revenue, in Q2 2023. - Net loss was
$10.3 million compared to a net loss of$14.3 million in Q2 2023. - Net loss per share was
$0.25 compared to a net loss per share of$0.41 in Q2 2023. - Adjusted EBITDA was
$2.7 million , or9% of revenue, compared to$(1.8) million , or (7% ) of revenue, in Q2 2023. - Non-GAAP net loss of
$4.8 million compared to non-GAAP net loss of$8.3 million in Q2 2023. - Non-GAAP net loss per share of
$0.11 compared to a non-GAAP net loss per share of$0.24 in Q2 2023. - Cash, short-term investments, and restricted cash, non-current totaled
$28.3 million as of June 30, 2024.
Second Quarter 2024 Operational Highlights:
- Annual recurring revenue (ARR) was
$126.3 million , an increase of30% YoY.- B2 Cloud Storage ARR was
$62.8 million , an increase of44% YoY. - Computer Backup ARR was
$63.5 million , an increase of18% YoY.
- B2 Cloud Storage ARR was
- Net revenue retention (NRR) rate was
114% compared to110% in Q2 2023.- B2 Cloud Storage NRR was
126% compared to121% in Q2 2023. - Computer Backup NRR was
105% compared to103% in Q2 2023.
- B2 Cloud Storage NRR was
- Gross customer retention rate was
90% in Q2 2024 compared to91% in Q2 2023.- B2 Cloud Storage gross customer retention rate was
89% in Q2 2024 compared to90% in Q2 2023. - Computer Backup gross customer retention rate was
90% in Q2 2024 compared to91% in Q2 2023.
- B2 Cloud Storage gross customer retention rate was
Recent Business Highlights:
- Launched Backblaze B2 Live Read: This patent-pending cloud solution enables customers to access and edit files during the upload process. The initial focus will be on media and entertainment use cases, which will help production teams accelerate their speed to market.
- Continued Up-Market Momentum: Customers contributing over
$50,000 in ARR grew more than55% year over year. - Introduced Internet2 Peering: The integration of Internet2’s network provides the world's largest research and educational institutions fast access to and easier adoption of B2 Cloud Storage.
- Announced Marc Suidan to Join as Chief Financial Officer: Marc brings over 20 years experience as a public company CFO, strategic advisor and management consultant. As a senior partner at PricewaterhouseCoopers, Marc advised the largest global technology companies. Marc is expected to join Backblaze as CFO on August 16, 2024.
- Hired Jason Wakeam as Chief Revenue Officer: Jason adds decades of experience in building high impact sales, channel, and partner teams and driving competitive market share growth at Hewlett-Packard, Microsoft, Cloudera and SnapLogic.
- Selected for the Russell 2000 Index: The widely used benchmark brings added investor awareness to Backblaze.
Financial Outlook:
Based on information available as of the date of this press release,
For the third quarter of 2024 we expect:
- Revenue between
$32.4 million to$32.8 million - Adjusted EBITDA margin between
9% to11% - Basic shares outstanding of 43.0 million to 43.5 million shares
For full-year 2024 we expect:
- Revenue between
$126.5 million to$128.5 million - Adjusted EBITDA margin between
9% to11%
Conference Call Information:
Backblaze will host a conference call today, August 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/47dcvumd
Register to listen by phone here: https://dpregister.com/sreg/10190613/fcff4b25e9
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 is the cloud storage innovator delivering a modern alternative to traditional cloud providers. We offer high-performance, secure cloud object storage that customers use to develop applications, manage media, secure backups, build AI workflows, protect from ransomware, and more. Backblaze helps businesses break free from the walled gardens that traditional providers lock customers into, enabling customers to use their data in open cloud workflows with the providers they prefer at a fraction of the cost. Headquartered in San Mateo, CA, Backblaze (Nasdaq: BLZE) was founded in 2007 and serves over 500,000 customers in 175 countries around the world. 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; ability to offer new features and other offerings on a timely basis and achieve desired market adoption; 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) | |||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 9,273 | $ | 12,502 | |||
| Short-term investments, net | 14,373 | 16,799 | |||||
| Accounts receivable, net | 1,814 | 800 | |||||
| Prepaid expenses and other current assets | 8,252 | 8,413 | |||||
| Total current assets | 33,712 | 38,514 | |||||
| Restricted cash, non-current | 4,682 | 4,128 | |||||
| Property and equipment, net | 41,037 | 45,600 | |||||
| Operating lease right-of-use assets, net | 8,962 | 9,980 | |||||
| Capitalized internal-use software, net | 38,335 | 32,521 | |||||
| Other assets | 1,048 | 944 | |||||
| Total assets | $ | 127,776 | $ | 131,687 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,147 | $ | 1,973 | |||
| Accrued expenses and other current liabilities(1) | 5,854 | 8,768 | |||||
| Finance lease liabilities and lease financing obligations, current | 16,951 | 18,492 | |||||
| Operating lease liabilities, current | 1,668 | 1,878 | |||||
| Deferred revenue, current | 29,438 | 25,976 | |||||
| Total current liabilities | 55,058 | 57,087 | |||||
| Debt facility, non-current | 4,682 | 4,128 | |||||
| Deferred revenue, non-current | 4,605 | 4,073 | |||||
| Finance lease liabilities and lease financing obligations, non-current | 10,763 | 13,310 | |||||
| Operating lease liabilities, non-current | 7,570 | 8,151 | |||||
| Total liabilities | $ | 82,678 | $ | 86,749 | |||
| Commitments and contingencies | |||||||
| Stockholders’ Equity | |||||||
| Class A common stock, | 4 | 4 | |||||
| Additional paid-in capital | 213,949 | 192,388 | |||||
| Accumulated deficit | (168,855 | ) | (147,454 | ) | |||
| Total stockholders’ equity | 45,098 | 44,938 | |||||
| Total liabilities and stockholders’ equity | $ | 127,776 | $ | 131,687 | |||
(1) As of June 30, 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | |||||||||||||||
| Revenue | $ | 31,285 | $ | 24,589 | $ | 61,253 | $ | 47,983 | |||||||
| Cost of revenue | 14,056 | 12,538 | 28,213 | 24,963 | |||||||||||
| Gross profit | 17,229 | 12,051 | 33,040 | 23,020 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 9,589 | 9,925 | 19,335 | 20,458 | |||||||||||
| Sales and marketing | 10,991 | 9,875 | 21,013 | 20,434 | |||||||||||
| General and administrative | 6,458 | 6,165 | 13,011 | 12,842 | |||||||||||
| Total operating expenses | 27,038 | 25,965 | 53,359 | 53,734 | |||||||||||
| Loss from operations | (9,809 | ) | (13,914 | ) | (20,319 | ) | (30,714 | ) | |||||||
| Investment income | 362 | 519 | 746 | 1,129 | |||||||||||
| Interest expense | (901 | ) | (942 | ) | (1,822 | ) | (1,865 | ) | |||||||
| Loss before provision for income taxes | (10,348 | ) | (14,337 | ) | (21,395 | ) | (31,450 | ) | |||||||
| Income tax provision | — | — | 6 | — | |||||||||||
| Net loss | $ | (10,348 | ) | $ | (14,337 | ) | $ | (21,401 | ) | $ | (31,450 | ) | |||
| Net loss per share, basic and diluted | $ | (0.25 | ) | $ | (0.41 | ) | $ | (0.52 | ) | $ | (0.91 | ) | |||
| Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted(1) | 42,151,850 | 35,149,000 | 41,188,544 | 34,539,229 | |||||||||||
(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) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net loss | $ | (21,401 | ) | $ | (31,450 | ) | |
| 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 | 31 | (966 | ) | ||||
| Noncash lease expense on operating leases | 1,018 | 1,293 | |||||
| Depreciation and amortization | 13,937 | 11,864 | |||||
| Stock-based compensation | 11,057 | 10,712 | |||||
| Gain on disposal of assets and other | (6 | ) | (1 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (1,014 | ) | 30 | ||||
| Prepaid expenses and other current assets | (59 | ) | 941 | ||||
| Other assets | (104 | ) | 134 | ||||
| Accounts payable | (745 | ) | (245 | ) | |||
| Accrued expenses and other current liabilities | (274 | ) | (1,600 | ) | |||
| Deferred revenue | 3,994 | 259 | |||||
| Operating lease liabilities | (791 | ) | (1,399 | ) | |||
| Net cash provided by (used in) operating activities | 5,643 | (10,428 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of marketable securities | (24,127 | ) | (9,734 | ) | |||
| Maturities of marketable securities | 26,523 | 38,500 | |||||
| Proceeds from disposal of property and equipment | 184 | 78 | |||||
| Purchases of property and equipment | (694 | ) | (4,719 | ) | |||
| Capitalized internal-use software costs | (6,828 | ) | (7,098 | ) | |||
| Net cash (used in) provided by investing activities | (4,942 | ) | 17,027 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Principal payments on finance leases and lease financing obligations | (9,711 | ) | (9,734 | ) | |||
| Proceeds from debt facility | 554 | 3,529 | |||||
| Principal payments on insurance premium financing | (590 | ) | (1,024 | ) | |||
| Proceeds from exercises of stock options | 5,012 | 2,182 | |||||
| Proceeds from ESPP | 1,359 | 1,171 | |||||
| Net cash used in financing activities | (3,376 | ) | (3,876 | ) | |||
| Net (decrease) increase in cash and restricted cash, non-current | (2,675 | ) | 2,723 | ||||
| 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 | $ | 13,955 | $ | 13,888 | |||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
| Cash paid for interest | $ | 1,817 | $ | 1,816 | |||
| Cash paid for income taxes | $ | 42 | $ | 58 | |||
| Cash paid for operating lease liabilities | $ | 1,328 | $ | 1,458 | |||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
| Stock-based compensation included in capitalized internal-use software | $ | 1,965 | $ | 2,030 | |||
| Accrued bonus settled in restricted stock units | $ | 3,507 | $ | 1,848 | |||
| 2023 Bonus Plan expense classified as stock-based compensation | $ | 473 | $ | 929 | |||
| 2024 Bonus Plan accrual classified as stock-based compensation | $ | 853 | $ | — | |||
| Equipment acquired through finance lease and lease financing obligations | $ | 5,989 | $ | 8,705 | |||
| Accruals related to purchases of property and equipment | $ | 18 | $ | 224 | |||
| Assets obtained in exchange for operating lease obligations | $ | — | $ | 268 | |||
| Receivable recorded due to stock option exercises pending settlement | $ | 5 | $ | 29 | |||
| RECONCILIATION OF CASH AND RESTRICTED CASH | |||||||
| Cash and cash equivalents | $ | 9,273 | $ | 5,886 | |||
| Restricted cash - included in prepaid expenses and other current assets | $ | — | $ | 169 | |||
| Restricted cash, non-current | $ | 4,682 | $ | 7,833 | |||
| Total cash and restricted cash | $ | 13,955 | $ | 13,888 | |||
BACKBLAZE, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(unaudited)
Adjusted Gross Profit and Adjusted Gross Margin
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands, except percentages) | |||||||||||||||
| Gross profit | $ | 17,229 | $ | 12,051 | $ | 33,040 | $ | 23,020 | |||||||
| Adjustments: | |||||||||||||||
| Stock-based compensation | 354 | 387 | 740 | 803 | |||||||||||
| Depreciation and amortization | 6,879 | 5,985 | 13,653 | 11,555 | |||||||||||
| Adjusted gross profit | $ | 24,462 | $ | 18,423 | $ | 47,433 | $ | 35,378 | |||||||
| Gross margin | 55 | % | 49 | % | 54 | % | 48 | % | |||||||
| Adjusted gross margin | 78 | % | 75 | % | 77 | % | 74 | % | |||||||
Adjusted EBITDA
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands, except percentages) | |||||||||||||||
| Net loss | $ | (10,348 | ) | $ | (14,337 | ) | $ | (21,401 | ) | $ | (31,450 | ) | |||
| Adjustments: | |||||||||||||||
| Depreciation and amortization | 7,025 | 6,131 | 13,937 | 11,864 | |||||||||||
| Stock-based compensation(1) | 5,528 | 4,884 | 11,057 | 10,587 | |||||||||||
| Interest expense and investment income | 539 | 423 | 1,076 | 736 | |||||||||||
| Income tax provision | — | — | 6 | — | |||||||||||
| Workforce reduction and related severance charges | — | 1,147 | — | 3,604 | |||||||||||
| Adjusted EBITDA | $ | 2,744 | $ | (1,752 | ) | $ | 4,675 | $ | (4,659 | ) | |||||
| Adjusted EBITDA margin | 9 | % | (7 | )% | 8 | % | (10 | )% | |||||||
(1) During the six months ended June 30, 2023,
Non-GAAP Net Loss
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| Net loss | $ | (10,348 | ) | $ | (14,337 | ) | $ | (21,401 | ) | $ | (31,450 | ) | |||
| Adjustments: | |||||||||||||||
| Stock-based compensation(1) | 5,528 | 4,884 | 11,057 | 10,587 | |||||||||||
| Workforce reduction and related severance charges | — | 1,147 | — | 3,604 | |||||||||||
| Non-GAAP net loss | $ | (4,820 | ) | $ | (8,306 | ) | $ | (10,344 | ) | $ | (17,259 | ) | |||
| Non-GAAP net loss per share, basic and diluted | $ | (0.11 | ) | $ | (0.24 | ) | $ | (0.25 | ) | $ | (0.50 | ) | |||
| Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted(2) | 42,151,850 | 35,149,000 | 41,188,544 | 34,539,229 | |||||||||||
(1) During the six months ended June 30, 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 June 30, | Six Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (In thousands, unaudited) | |||||||||||
| Cost of revenue | $ | 354 | $ | 387 | $ | 740 | $ | 803 | |||
| Research and development | 2,250 | 1,788 | 4,358 | 3,921 | |||||||
| Sales and marketing | 1,762 | 1,717 | 3,584 | 3,869 | |||||||
| General and administrative | 1,162 | 992 | 2,375 | 2,119 | |||||||
| Total stock-based compensation expense | $ | 5,528 | $ | 4,884 | $ | 11,057 | $ | 10,712 | |||
FAQ
What was Backblaze's (BLZE) revenue growth in Q2 2024?
How much did Backblaze's (BLZE) B2 Cloud Storage revenue grow in Q2 2024?
What was Backblaze's (BLZE) Adjusted EBITDA in Q2 2024?
What is Backblaze's (BLZE) Annual Recurring Revenue (ARR) as of Q2 2024?
What new feature did Backblaze (BLZE) launch in Q2 2024?
