Slide 1: Q2 2022 Results
Q2 2022 Results Gleb Budman, Frank Patchel, Co-founder, CFO CEO and Chair August 9, 2022 ©2022 | 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 Q2 Y/Y Growth: Revenue +28%, B2 Cloud Storage +45%
Strong Q2 Y/Y Growth: Revenue +28%, B2 Cloud Storage +45% Total Revenue B2 Cloud Storage $20.7M $7.7M $16.2M ARR 28% $83M $5.3M $31M Q2’22 ARR 45% Q2’22 ARR Q2’21 Q2’22 Q2’21 Q2’22 Revenue Revenue NOTES: Financial data is shown for the quarters ending June 30, 2021 and 2022, and is based on unaudite
Slide 4: B2 Cloud Storage Recent Milestones
B2 Cloud Storage Recent Milestones ● More data added in Q2’22 than any other quarter ● Largest purchase order in company history ©2022 | 4
Slide 5: Sales and Marketing: New Chief Marketing Officer (CMO)
Sales and Marketing: New Chief Marketing Officer (CMO) CMO Kevin Gavin ● 30 years of industry experience ● Led marketing teams as CMO at Five9, Shoretel, and others ©2022 | 5
Slide 6: Key New Partnerships
Key New Partnerships Carahsoft Partnership Veritas Backup Exec Partnership Allows resellers, systems integrators, Enables small and medium businesses and consultants to sell Backblaze using Veritas' Backup Exec service to products to public sector tier their backups to B2 Cloud Storage organizations
Slide 7: Sales and Marketing: Channel Partner Program
Sales and Marketing: Channel Partner Program ● Suite of tools, resources, incentives, and benefits ● Providers of B2 Reserve ● Access to Universal Data Migration program ©2022 | 7
Slide 8: Platform Enhancements: Cloud Replication
Platform Enhancements: Cloud Replication Cloud Replication ● General availability in June 2022 ● Use cases: disaster recovery, compliance objectives, faster access ©2022 | 8
Slide 9: Customer Story: DevChain
Customer Story: DevChain ● Blockchain software developer ● Key project: URSTYLE, a social commerce site with 200,000+ users, 20,000 images processed each day ● Faced large, unexpected AWS bills after startup credits expired ● Used Universal Data Migration program, paid no egress fees ● Free egress t
Slide 10: Customer Story: Global Advertising Agency
Customer Story: Global Advertising Agency ● Global ad agency with tens of thousands of employees ● Moving a large office to a green building, LTO tape storage system conflicted with new sustainability goals ● Engaged IT consultant NAPC to find storage solution for that office ● LTO management was ve
Slide 11: Company Culture: A Competitive Advantage
Company Culture: A Competitive Advantage ©2022 | 11
Slide 12: Q2 2022 Financial Overview
Q2 2022 Financial Overview Frank Patchel, CFO ©2022 Confidential | 12 | 12
Slide 13: Financial and Operational Q2 Highlights
Financial and Operational Q2 Highlights Revenue Y/Y Gross Customer ($M) Growth NRR Retention B2 Cloud Storage $7.7 45% 126% 90% Computer Backup $12.8 20% 107% 91% Total Company $20.7 28% 113% 91% NOTES: Q2’22 total company revenue includes $0.2 million in revenue from Physical Media. All financial i
Slide 14: Other Q2 Financial Highlights
Other Q2 Financial Highlights 77% -9% $88.1M Adj. Gross Margin Adj. EBITDA Margin Balance Sheet Cash and Investments NOTES: Adjusted Gross Margin and Adjusted EBITDA Margin are shown for the quarter ending June 30, 2022, and Balance Sheet Cash and Investments is as of June 30, 2022. All financial da
Slide 15: Q3'22 and 2022 Outlook Ranges
Q3’22 and 2022 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q3’22 Q3’22 $21.4 to $21.8 -18% to -14% Reiterating: Raising: 2022 2022 $83 to $86 -17% to -13% (was -18% to -14%) NOTES: The above financial information guidance for the third quarter of fiscal year 2022 and fiscal year 2022 are forward-
Slide 16: We make it astonishingly easy to store, use, and protect data.
We make it astonishingly easy to store, use, and protect data. ©2022 Confidential | 16 | 16
Slide 17: Q&A
Q&A ©2022 Confidential | 17 | 17
Slide 18: Institutional Investor Events
Institutional Investor Events ● Aug 10: Oppenheimer 25th Annual Technology, Internet & Communications Conference (Virtual) ● Sep 14: Lake Street Capital Markets Best Ideas Growth Conference (New York City) ©2022 | 18
Slide 19: Investor Programs: Coming Soon
Investor Programs: Coming Soon ©2022 | 19
Slide 20: Thank You!
Thank You! ©2022 Confidential | 20 | 20
Slide 21: 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 22: 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 23: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q2’22 Q2’21 Gross Profit $11.132 $8.224 Gross Margin 54% 51% Adjustments for Cost of Revenue: Stock Based Compensation 0.348 0.109 Depreciation and Amortization 4.377 3.818 Adjusted Gross Profit $15.857 $12.151 Adjusted Gross Ma
Slide 24: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q2’22 Q2’21 Net Loss $(11.575) $(2.418) Net Loss Margin -56% -15% Adjustments: Total Stock Based Compensation 4.346 1.255 Gain on Extinguishment of Debt (2.299) Non-GAAP Net Income (Loss) $(7.229) $(3.462) Non-GAAP Net Income Margin -35% -21% Non-GAAP
Slide 25: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q2’22 Q2’21 Net Loss $(11,575) $(2.418) Net Loss Margin -56% -15% Adjustments: Total Depreciation & Amortization 4.570 3.972 Total Stock Based Compensation 4.346 1.255 Interest Expense 0.793 0.847 Income Tax (Benefit) Provision (0.037) 0.136 Gain
Slide 26: Reconciliation of Non-GAAP Measures: Operating Expenses
Reconciliation of Non-GAAP Measures: Operating Expenses Adjusted Operating Expenses Q2’22 Q2’21 R&D $8.400 $4.707 Adj: Stock Based Compensation (1.683) (0.512) S&M 8.369 4.347 Adj: Stock Based Compensation (1.233) (0.379) G&A 5.182 2.904 Adj: Stock Based Compensation (1.082) (0.255) Adjusted R&D (%
Slide 27: Thank you.
Thank you. ©2022 Confidential | 27 | 27