Slide 1: Q3 2023 Results
Q3 2023 Results Gleb Budman, Frank Patchel, Co-founder, CFO CEO and Chair November 8, 2023 ©2023 | 1
Slide 2: Important Information About This Presentation
Gross Revenue Retention 91% Important Information About This Presentation Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward
Slide 3: Key Highlights
Key Highlights ● Q3 marks an inflection point for revenue growth ● Driving improved financial performance, including Adjusted EBITDA and cash usage ● Delivered “shard stash” storage innovation that increases upload performance speeds up to 30% faster than Amazon S3 ©2023 | 3
Slide 4: Strong Q3 2023 Revenue Growth: Total Company +15%, B2 Cloud Storage +31%
Strong Q3 2023 Revenue Growth Total Company +15%, B2 Cloud Storage +31% Total Company B2 Cloud Storage $25.3M $11.6M $22.1M 15% $101M $8.9M $47M Q3’23 ARR 31% Q3’23 ARR Q3’22 Q3’23 Q3’22 Q3’23 Revenue Revenue NOTES: Financial data is shown for the quarters ending September 30, 2022 and 2023, and the
Slide 5: Leading the Open Cloud Movement
Leading the Open Cloud Movement ©2023 | 5
Slide 6: Backblaze — AI Storage Solution
Backblaze — AI Storage Solution AI Processing Inference Data Output Data Model Data ©2023 | 6
Slide 7: Executing on Growth Strategy
Executing on Growth Strategy Self-Serve ● Completed website infrastructure overhaul ● Growth in Paid-Accounts year-over-year Sales Assisted ● Continued up market momentum ● Customer example: 5x growth to over $100k in ARR within three quarters Partnerships ● HYCU and Qencode partnerships to reach ne
Slide 8: Customer Story: AI Motion Capture Application Developer
Customer Story: AI Motion Capture Application Developer Searching for a long-term cloud storage partner ● CoreWeave is their GPU workload vendor of choice ● Unpredictable and complicated egress fees from hyperscalers were a major pain point ● Selected Backblaze because of the simple and straightforw
Slide 9: Shard Stash Breakthrough Innovation
Shard Stash Breakthrough Innovation ● Up to 30% faster upload speed than Amazon S3 ● Covers majority of B2 uploads ● Delivered at a fifth of the cost of Amazon S3 “Backblaze blitzes cloud storage speeds with ‘shard stash’ cache.” – Blocks & Files ©2023 | 9
Slide 10: Q3 2023 Financial Overview
Q3 2023 Financial Overview Frank Patchel, CFO ©2023 | 10
Slide 11: Takeaways
Takeaways ● Surpassed the $100M in ARR milestone in Q3 ● Strong Q4 outlook ○ Accelerating revenue growth ○ Reduction in Q4 cash usage by about half, sequentially ○ First quarter of positive Adjusted EBITDA as a public company ● On track to be cash flow positive by mid-2025 ©2023 | 11
Slide 12: Financial and Operational Q3 Highlights
Financial and Operational Q3 Highlights Gross Revenue Y/Y Customer ($M) Growth NRR Retention B2 Cloud Storage $11.6 31% 120% 90% Computer Backup $13.7 4% 100% 91% Total Company $25.3 15% 108% 91% NOTES: Q3’23 Total Company Revenue includes $0.1M in revenue from Physical Media. For the period present
Slide 13: Other Q3 Financial Highlights
Other Q3 Financial Highlights 74% (3)% $36M Adj. Gross Margin Adj. EBITDA Margin Balance Sheet Cash, Investments, and Restricted Cash NOTES: Adjusted Gross Margin and Adjusted EBITDA Margin are shown for the quarter ending September 30, 2023, and Balance Sheet Cash and Investments is as of September
Slide 14: Q4'23 and 2023 Outlook Ranges
Q4’23 and 2023 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q4’23 Q4’23 $ 27.9 to $28.7 1% to 3% Raising Bottom End Raising 2023 2023 $101.2 to $102.0 (6)% to (4)% NOTES: The above financial information guidance for Q4 of 2023 and fiscal year 2023 are forward-looking statements. These forward-look
Slide 15: We make it astonishingly easy to store, use, and protect data.
We make it astonishingly easy to store, use, and protect data. ©2023 | 15
Slide 16: Key Highlights
Key Highlights ● Q3 marks an inflection point for revenue growth ● Driving improved financial performance, including Adjusted EBITDA and cash usage ● Delivered “shard stash” storage innovation that increases upload performance speeds up to 30% faster than Amazon S3 ©2023 | 16
Slide 17: Backblaze
4) Backblaze ©2023 | 17
Slide 18: Institutional Investor Events
Institutional Investor Events ● November 16: Annual Craig-Hallum Alpha Select Conference ©2023 | 18
Slide 19: Thank You!
Thank You! ©2023 | 19
Slide 20: Definitions
Definitions ● “ARR” means Annual Recurring Revenue and is based on the monthly revenue from all B2 Cloud Storage and Computer Backup arrangements (excluding revenue for Physical Media) for the last month of a period and multiplying it by 12. Our annual recurring revenue for each of Computer Backup a
Slide 21: Definitions
Definitions ● Adjusted EBITDA is defined as net loss excluding depreciation and amortization, stock-based compensation, interest expense, income tax provision, unrealized loss on SAFE and gain on extinguishment of debt. We use adjusted EBITDA to evaluate our ongoing operations and for internal plann
Slide 22: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q3’23 Q3’22 Gross Profit $11.753 $11.215 Gross Margin 46% 51% Adjustments for Cost of Revenue: Stock Based Compensation 0.653 0.353 Depreciation and Amortization 6.336 5.131 Adjusted Gross Profit $18.742 $16.699 Adjusted Gross M
Slide 23: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q3’23 Q3’22 Net Loss $(16.055) $(12.800) Net Loss Margin -63% -58% Adjustments: Total Stock Based Compensation 7.958 4.830 Severance charges .012 — Non-recurring professional services .282 — Non-GAAP Net Income (Loss) $(7.803) $(7.970) Non-GAAP Net Inc
Slide 24: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q3’23 Q3’22 Net Loss $(16.055) $(12.800) Net Loss Margin -63% -58% Adjustments: Total Depreciation & Amortization 6.473 5.357 Total Stock Based Compensation 7.958 4.830 Net Interest Expense 0.489 0.740 Workforce Reduction and Related Severance Cha