Slide 1: Q3 2024 Results
Q3 2024 Results Gleb Budman Marc Suidan CEO and Co-Founder CFO Backblaze November 7, 2024 Backblaze ©2024 Confidential | 1
Slide 2: Important Information About This Presentation
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-looking terminology, includi
Slide 3: Our Mission
Our Mission We make it astonishingly easy to store, use, and protect data. Backblaze ©2024 | 3
Slide 4: Key Highlights
Key Highlights ● Go-to-market Transformation ● Streamlining Cost Structure ● New Data Center Region ● Feeding the GenAI Supply Chain Opportunity Backblaze ©2024 Backblaze Confidential ©2024| |44
Slide 5: Next Stage of Growth and Profitability
Next Stage of Growth and Profitability Initiatives Proof points Go-to-Market Transformation Go-to-Market Transformation ● Upskill the Sales Team ● Signed 2 Multi-year Deals of approx. $1M ● Deepen Partnerships each ● Execute Core Sales Plays ● Channel Pipeline Generation Doubled 2x Y/Y ● Entering Q4
Slide 6: New Data Center Region in Canada
New Data Center Region in Canada ● Data center opening in Q1 2025 ● Partnered with Opti9, the largest Veeam MSP in Canada ● Exciting addition to existing data regions in US and Europe NOTE: New data center region in Canada is expected to open in Q1 2025. Backblaze ©2024 Backblaze Confidential ©2024|
Slide 7: Feeding the GenAI Supply Chain
Feeding the GenAI Supply Chain “Backblaze is an ● 3 new AI customers generating amazing solution for AI $500k in annual revenue run rate ● Data stored by AI customers grew training data. We 2x year over year looked at a number of options and Backblaze is seriously the best.” AI Customer, Co-Founder
Slide 8: Q3 2024 Financial Overview
Q3 2024 Financial Overview Marc Suidan CFO Backblaze ©2024 Confidential | 8
Slide 9: Key Financial Highlights
Key Financial Highlights ● Q3’24 ○ Record Adjusted EBITDA Margin ● Operating Leverage ○ Driving 75% Incremental Cash Contribution Margin ● Q4’25 ○ Target Adj. EBITDA Margin of ~20%, 2x YoY ○ Adj. FCF Positive NOTES: Record Adjusted EBITDA Margin in Q3’24 is referenced for the three months ending Sep
Slide 10: Strong Q3 2024 Revenue Growth
Strong Q3 2024 Revenue Growth Total Company +29%, B2 Cloud Storage +39% Total Company B2 Cloud Storage $32.6M $16.2M $25.3M $130.5M $11.6M $64.9M 29% Q3’24 ARR Q3’24 ARR 39% Q3’23 Q3’24 Q3’23 Q3’24 Revenue Revenue NOTES: Financial data is shown for the quarters ending September 30, 2023 and 2024, an
Slide 11: Financial and Operational Q3 Highlights
Financial and Operational Q3 Highlights Gross Revenue Y/Y Customer ($M) Growth NRR Retention B2 Cloud Storage $16.2 39% 128% 89% Computer Backup $16.4 20% 109% 90% Total Company $32.6 29% 118% 90% NOTES: All financial information is as of September 30, 2024, with year-over-year revenue comparisons to
Slide 12: Q4'24 and 2024 Outlook Ranges
Q4’24 and 2024 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q4’24 Q4’24 $ 33.5 to $33.9 12% to 14% Narrowing FY 2024 FY 2024 $127.0 to $128.0 9% to 11% NOTES: The above financial information guidance for Q4 of 2024 and fiscal year 2024 are forward-looking statements. These forward-looking statements
Slide 13: On The Path to Positive Adj. Free Cash Flow
On The Path to Positive Adj. Free Cash Flow Adj. EBITDA Margin ~20% Adj. Free Cash Flow Margin 9% 5% IPO YTD Q4 Q4 2021 2024 202 2025E 2022 2023 Q4IPO 2025E 2022 2023 YTD Q4 2021 2024 2025E (4%) (11%) (29%) (17%) (45%) (54%) NOTES: Adjusted EBITDA and Adjusted Free Cash Flow margins are shown for th
Slide 14: Q&A
Q&A Backblaze ©2024 | 14
Slide 15: Thank You!
Thank You! Backblaze ©2024 | 15
Slide 16: Appendix
Appendix Backblaze ©2024 Backblaze Confidential ©2024| 16 | 16
Slide 17: 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 18: Definitions
Definitions ● Adjusted EBITDA is defined as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, investment income, income tax provision, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, and o
Slide 19: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q3’24 Q3’23 Gross Profit $17.800 $11.753 Gross Margin 55% 46% Adjustments for Cost of Revenue: Stock Based Compensation 0.478 0.653 Depreciation and Amortization 7.191 6.336 Adjusted Gross Profit $25.469 $18.742 Adjusted Gross Marg
Slide 20: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q3’24 Q3’23 Net Loss $(12.753) $(16.055) Net Loss Margin -39% -63% Adjustments: Total Stock Based Compensation 8.438 7.958 Non-recurring professional services — .282 Workforce reduction and related severance — 0.012 charges Non-GAAP Net Income (Loss) $
Slide 21: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q3’24 Q3’23 Net Loss $(12.753) $(16.055) Net Loss Margin -39% -63% Adjustments: Total Depreciation & Amortization 7.331 6.473 Total Stock Based Compensation 8.438 7.958 Interest expense and investment income 0.555 0.489 Non-recurring professional
Slide 22: Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow
Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow Q3’24 Q3’23 Net Cash Provided by (Used In) $4.629 ($0.170) Operating Activities Capital Expenditures (3.598) (4.310) Principal Payments on Finance Leases and Lease Financing (5.044) (5.144) Obligations Workforce Reduction and Related — 0.6