Backblaze, Inc. · NASDAQ:BLZE

Backblaze — Q4 2022 Earnings Presentation

26 slides from Backblaze's earnings presentation, Feb 15, 2023

  1. Slide 1: Q4 and FY 2022 Results

    Q4 and FY 2022 Results Gleb Budman, Frank Patchel, Co-founder, CFO CEO and Chair February 15, 2023 ©2023 | 1

  2. 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

  3. Slide 3: Strong Q4 Y/Y Growth: Revenue +23%, B2 Cloud Storage +44%

    Strong Q4 Y/Y Growth: Revenue +23%, B2 Cloud Storage +44% ● Full-year 2022: Total Company Revenue +26%, B2 Cloud Storage: +46% Total Revenue B2 Cloud Storage $22.9M $9.5M $18.7M ARR 23% $92M $6.6M $39M Q4’22 ARR 44% Q4’22 ARR Q4’21 Q4’22 Q4’21 Q4’22 Revenue Revenue NOTES: Financial data is shown for

  4. Slide 4: Three Phases of the Public Cloud

    Three Phases of the Public Cloud ● Phase 1: What is the Cloud? ● Phase 2: Cloud = Amazon Web Services ● Phase 3: Cloud = Multi-Cloud Networking Compute Communication Data Storage ©2023 | 4

  5. Slide 5: Partner Updates

    Partner Updates Backup and data services platform provider Specializes in products that make it possible to deliver content to any audience regardless of how it is created, distributed, or viewed ©2023 | 5

  6. Slide 6: Developer (Application Storage) Outreach

    Developer (Application Storage) Outreach Attendance +60% Y/Y ©2023 | 6

  7. Slide 7: Self-Serve Funnel Optimization

    Self-Serve Funnel Optimization ● ~80% of company revenue is generated from accounts acquired via “self-serve” ● New marketing team focused on self- serve funnel optimization ● January strongest month of new self- serve accounts in a year $ ©2023 | 7

  8. Slide 8: Customer Story: Monument

    Customer Story: Monument Application Storage customer; AI-enabled Photo Storage Service ● Privacy-focused photo storage service ● Originally enabled with a physical device ● Realized building cloud service on AWS would lose money ● Data on B2 Cloud Storage ● Now 25k users ©2023 | 8

  9. Slide 9: Customer Story: Daltix

    Customer Story: Daltix ● Retail data provider for consumer goods industry ● Previously held 250 TBs on Amazon S3 ● Moved archive data to B2 Cloud Storage ● Projected to save $75k-100k by 2023-end “It runs in the background, there’s nothing to manage, we have full visibility, and it’s cost effective.

  10. Slide 10: Q4 2022 Financial Overview

    Q4 2022 Financial Overview Frank Patchel, CFO ©2023 Confidential | 10 | 10

  11. Slide 11: Financial and Operational Q4 Highlights

    Financial and Operational Q4 Highlights Gross Revenue Y/Y Customer ($M) Growth NRR Retention B2 Cloud Storage $9.5 44% 122% 90% Computer Backup $13.3 11% 108% 90% Total Company $22.9 23% 113% 91% NOTES: Q4’22 total company revenue includes $0.2 million in revenue from Physical Media. All financial i

  12. Slide 12: Number of Customers

    Number of Customers (in thousands) Q4’21 Q4’22 B2 Cloud Storage 74 87 Computer Backup 433 436 Total Company 493 506 NOTES: Number of customers is defined in the appendix. The number of customers for each of B2 Cloud Storage and Computer Backup solutions include customers that use both our B2 Cloud S

  13. Slide 13: Average Revenue Per User (ARPU)

    Average Revenue Per User (ARPU) Q4’21 Q4’22 B2 Cloud Storage $360 $437 Computer Backup $113 $124 Total Company $153 $181 NOTES: Average Revenue Per User (ARPU) is defined in the appendix. ©2023 | 13

  14. Slide 14: Other Q4 Financial Highlights

    Other Q4 Financial Highlights 75% -11% $70M 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, 2022, and Balance Sheet Cash and Investments is as of December 3

  15. Slide 15: Q1'23 and 2023 Outlook Ranges

    Q1’23 and 2023 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q1’23 Q1’23 $23.1 to $23.5 -15% to -11% 2023 2023 $98.0 to $102.0 -10% to -6% NOTES: The above financial information guidance for the first quarter of fiscal year 2023 and fiscal year 2023 are forward-looking statements. These forward-loo

  16. Slide 16: We make it astonishingly easy to store, use, and protect data.

    We make it astonishingly easy to store, use, and protect data. ©2023 Confidential | 16 | 16

  17. Slide 17: Q&A

    Q&A ©2023 Confidential | 17 | 17

  18. Slide 18: Institutional Investor Events

    Institutional Investor Events ● Mar 7: JMP Securities Technology Conference (San Francisco) ● Mar 14: William Blair Tech Innovators Conference ©2023 | 18

  19. Slide 19: Thank You!

    Thank You! ©2023 Confidential | 19 | 19

  20. 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

  21. 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

  22. Slide 22: Reconciliation of Non-GAAP Measures: Gross Margin

    Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q4’22 Q4’21 Gross Profit $11.707 $9.834 Gross Margin 51% 53% Adjustments for Cost of Revenue: Stock Based Compensation 0.290 0.176 Depreciation and Amortization 5.309 4.105 Adjusted Gross Profit $17.306 $14.115 Adjusted Gross Ma

  23. Slide 23: Reconciliation of Non-GAAP Measures: Net Income

    Reconciliation of Non-GAAP Measures: Net Income Q4’22 Q4’21 Net Loss $(14.793) $(9.605) Net Loss Margin -65% -51% Adjustments: Total Stock Based Compensation 4.338 2.018 Realized loss on SAFE 1.077 SAFE holder settlement 1.500 Non-GAAP Net Income (Loss) $(8.955) $(6.510) Non-GAAP Net Income Margin -

  24. Slide 24: Reconciliation of Non-GAAP Measures: Adjusted EBITDA

    Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q4’22 Q4’21 Net Loss $(14.793) $(9.605) Net Loss Margin -65% -53% Adjustments: Total Depreciation & Amortization 5.462 4.280 Total Stock Based Compensation 4.338 2.018 Net Interest Expense 0.918 0.991 Income Tax Provision (Benefit) 0.030 (0.040) R

  25. Slide 25: Reconciliation of Non-GAAP Measures: Operating Expenses

    Reconciliation of Non-GAAP Measures: Operating Expenses Adjusted Operating Expenses Q4’22 Q4’21 R&D $8.614 $6.222 Adj: Stock Based (1.632) (0.752) Compensation S&M 9.274 6.549 Adj: Stock Based (1.454) (0.595) Compensation G&A 7.664 4.640 Adj: Stock Based (0.962) (0.495) Compensation Adjusted R&D (%

  26. Slide 26: Thank you.

    Thank you. ©2023 Confidential | 26 | 26

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