Slide 1: Q2 2024 Results
Q2 2024 Results Gleb Budman Frank Patchel Co-founder, CFO CEO and Chair August 8, 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: Key Highlights
Key Highlights 1. Innovation Driving Customer Value 2. Executive Team to Lead the Next Phase of Growth 3. Up-market Momentum ©2024 | 3
Slide 4: Innovation Driving Customer Value
Innovation Driving Customer Value Q2 2024 Live Read Q2 2024 Event Q1 2024 Notifications Powered By Q1 2024 Backblaze Q4 2023 Computer Backup Enterprise Control Q3 2023 Shard Stash Performance Free Egress ©2024 | 4
Slide 5: Live Read
Live Read A patent-pending cloud service to access and edit content while it is being uploaded into B2 Cloud Storage For our customers, turnaround time is essential, and Live Read promises to speed up workflows and operations for producers across the industry," Richard Andes VP, Product Management a
Slide 6: Jason Wakeam, Chief Revenue Officer
Welcome Jason Wakeam Chief Revenue Officer ● Decades of experience building and leading sales teams ● Proven track record of driving growth and innovation ● Experience at HP, Microsoft, Cloudera and SnapLogic ©2024 | 6
Slide 7: Up-market Momentum
Up-market Momentum Number of +55% year over year Customers Contributing over $50k in ARR NOTES: Comparison is shown as of June 30, 2024 compared to June 30, 2023, and is based on unaudited financial data. See appendix for definition of ARR (Annual Recurring Revenue). ©2024 | 7
Slide 8: Customer Story: 3D Landscape Rendering AI Company
Customer Story 3D Landscape Rendering AI Company ● Migrating from AWS and Azure ● Easy access to desired GPU clouds ● Saving over $300,000 a year ©2024 | 8
Slide 9: Customer Story: Photo Storage and Sharing Application Developer
Customer Story Photo Storage and Sharing Application Developer ● Replacing AWS ● Simple and transparent pricing ● Enabling improved product ©2024 | 9
Slide 10: Customer Story: NFL Team
Customer Story NFL Team ● Replacing AWS and third party storage provider ● Unifying storage architecture ● Removing expensive egress fees ©2024 | 10
Slide 11: Marc Suidan, MBA, CPA, Incoming CFO
Welcome Marc Suidan, MBA, CPA Incoming CFO ● Over 20 years experience as a public company CFO, senior partner, and strategic advisor ● Advised companies including hyperscalers, SaaS and storage firms ● Experience at BODi, PricewaterhouseCoopers, McKinsey ©2024 | 11
Slide 12: Key Highlights
Key Highlights 1. Innovation Driving Customer Value 2. Executive Team to Lead the Next Phase of Growth 3. Up-market Momentum ©2024 | 12
Slide 13: Q2 2024 Financial Overview
Q2 2024 Financial Overview Frank Patchel CFO ©2024 | 13
Slide 14: Key Financial Highlights
Key Financial Highlights 1. Beat on Q2 2024 revenue and adjusted EBITDA guidance 2. Record gross margins in Q2 2024 3. Raising full year revenue and adjusted EBITDA guidance ©2024 | 14
Slide 15: Strong Q2 2024 Revenue Growth
Strong Q2 2024 Revenue Growth Total Company +27%, B2 Cloud Storage +43% Total Company B2 Cloud Storage $31.3M $15.4M $24.6M 27% $126.3M $10.8M $62.8M Q2’24 ARR 43% Q2’24 ARR Q2’23 Q2’24 Q2’23 Q2’24 Revenue Revenue NOTES: Financial data is shown for the quarters ending June 30, 2023 and 2024, and are
Slide 16: Financial and Operational Q2 Highlights
Financial and Operational Q2 Highlights Gross Revenue Y/Y Customer ($M) Growth NRR Retention B2 Cloud Storage $15.4 43% 126% 89% Computer Backup $15.9 15% 105% 90% Total Company $31.3 27% 114% 90% NOTES: All financial information is as of June 30, 2024, with year-over-year revenue comparisons to the
Slide 17: Q3'24 and 2024 Outlook Ranges
Q3’24 and 2024 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q3’24 Q3’24 $ 32.4 to $32.8 9% to 11% Raising Raising FY 2024 FY 2024 $126.5 to $128.5 9% to 11% NOTES: The above financial information guidance for Q3 of 2024 and fiscal year 2024 are forward-looking statements. These forward-looking sta
Slide 18: We make it astonishingly easy to store, use, and protect data
We make it astonishingly easy to store, use, and protect data. ©2024 | 18
Slide 19: 4) Backblaze ©2024 |
4) Backblaze ©2024 | 19
Slide 20: Institutional Investor Events
Institutional Investor Events ● August 13: Oppenheimer Technology, Internet & Communications Conference ● September 12: Lake Street BIG8 Investor Conference ©2024 | 20
Slide 21: Thank You!
Thank You! ©2024 | 21
Slide 22: 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 23: 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 24: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q2’24 Q2’23 Gross Profit $17.229 $12.051 Gross Margin 55% 49% Adjustments for Cost of Revenue: Stock Based Compensation 0.354 0.387 Depreciation and Amortization 6.879 5.985 Adjusted Gross Profit $24.462 $18.423 Adjusted Gross M
Slide 25: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q2’24 Q2’23 Net Loss $(10.348) $(14.337) Net Loss Margin -33% -58% Adjustments: Total Stock Based Compensation 5.528 4.884 Workforce reduction and related severance charges — 1.147 Non-GAAP Net Income (Loss) $(4.820) $(8.306) Non-GAAP Net Income Margin
Slide 26: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q2’24 Q2’23 Net Loss $(10.348) $(14.337) Net Loss Margin -33% -58% Adjustments: Total Depreciation & Amortization 7.025 6.131 Total Stock Based Compensation 5.528 4.884 Interest expense and investment income 0.539 0.423 Workforce reduction and rel