Slide 1: Q4 & FY 2023 Results
Q4 & FY 2023 Results Gleb Budman Frank Patchel Co-founder, CFO CEO and Chair February 15, 2024 ©2024 | 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: Strong Q4 2023 Revenue Growth
Strong Q4 2023 Revenue Growth Total Company +25%, B2 Cloud Storage +47% Total Company B2 Cloud Storage $28.7M $14.0M $22.9M 25% $117.6M $9.5M $57.6M Q4’23 ARR 47% Q4’23 ARR Q4’22 Q4’23 Q4’22 Q4’23 Revenue Revenue NOTES: Financial data is shown for the quarters ending December 31, 2022 and 2023, and
Slide 4: Key Highlights
Key Highlights 1. Delivering Innovation 2. Continuing to Move Upmarket 3. Dramatically Improving Financial Position ○ Revenue, Expenses, Cash ©2024 | 4
Slide 5: Customer Story: Media Streaming Service
Customer Story: Media Streaming Service ● Increased control of tech stack with the open cloud ● Saving >$800k annually with B2 Cloud Storage ● Investing savings into developing new features “Migration to Backblaze B2 only took a weekend, and by Monday or Tuesday, we were able to start ingesting cont
Slide 6: Executing on Growth Strategy
Executing on Growth Strategy Delivering Innovation ● Platform performance improvements (shard stash) ● Free egress in support of the open cloud ● Enterprise management controls for Computer Backup ● Hired Chief Product Officer, David Ngo with 25+ years of experience Leveraging Partnerships ● E.g. won
Slide 7: Q4 2023 Financial Overview
Q4 2023 Financial Overview Frank Patchel CFO ©2024 | 7
Slide 8: Dramatically Improved Financial Metrics
Dramatically Improved Financial Metrics Improved Q4’23 Q4’22 By ARR $117.6 $92.0 28% Revenue 28.7 22.9 25% Adj. Gross Margin 77% 75% +2 points Adj. EBITDA Margin 6% (11)% +17 points Cash Usage (2.4) (10.3) 77% Dollars in Millions 2019 2020 2021 NOTES: ARR, revenue, Adjusted Gross Margin, Adjusted EB
Slide 9: Financial and Operational Q4 Highlights
Financial and Operational Q4 Highlights Gross Revenue Y/Y Customer ($M) Growth NRR Retention B2 Cloud Storage $14.0 47% 122% 90% Computer Backup $14.7 10% 100% 91% Total Company $28.7 25% 109% 91% NOTES: For the periods presented, Physical Media revenue has been consolidated into B2 Cloud Storage or
Slide 10: Other Q4 Financial Highlights
Other Q4 Financial Highlights 77% 6% $33M Adj. Gross Margin Adj. EBITDA Margin Balance Sheet Cash, Investments, and Restricted Cash NOTES: Adjusted Gross Margin and Adjusted EBITDA Margin are shown for the quarter ending December 31, 2023, and Balance Sheet Cash and Investments is as of December 31,
Slide 11: Q1'24 and 2024 Outlook Ranges
Q1’24 and 2024 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q1’24 Q1’24 $ 29.6 to $30.0 4% to 6% FY 2024 FY 2024 $126.0 to $128.0 8% to 10% NOTES: The above financial information guidance for Q1 of 2024 and fiscal year 2024 are forward-looking statements. These forward-looking statements reflect our
Slide 12: We make it astonishingly easy to store, use, and protect data.
We make it astonishingly easy to store, use, and protect data. ©2024 | 12
Slide 13: Backblaze
4: Backblaze ©2024 | 13
Slide 14: Institutional Investor Events
Institutional Investor Events ● March 5: The Citizens JMP Technology Conference ● March 14: William Blair Tech Innovators Conference ©2024 | 14
Slide 15: Thank You!
Thank You! ©2024 | 15
Slide 16: 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 an
Slide 17: 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 plannin
Slide 18: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q4’23 Q4’22 Gross Profit $15.184 $11.707 Gross Margin 53% 51% Adjustments for Cost of Revenue: Stock Based Compensation 0.430 0.290 Depreciation and Amortization 6.439 5.309 Adjusted Gross Profit $22.053 $17.306 Adjusted Gross Marg
Slide 19: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q4’23 Q4’22 Net Loss $(11.358) $(14.493) Net Loss Margin -40% -63% Adjustments: Total Stock Based Compensation 5.657 4.038 Non-recurring professional services .129 — SAFE holder settlement — 1.500 Non-GAAP Net Income (Loss) $(5.572) $(8.955) Non-GAAP N
Slide 20: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q4’23 Q4’22 Net Loss $(11.358) $(14.493) Net Loss Margin -40% -63% Adjustments: Total Depreciation & Amortization 6.575 5.462 Total Stock Based Compensation 5.657 4.038 Net Interest Expense 0.583 0.918 Income tax provision (benefit) — .030 Settleme