Slide 1: Q2 2023 Results
Q2 2023 Results Gleb Budman, Frank Patchel, Co-founder, CFO CEO and Chair August 8, 2023 ©2023 | 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 2023 Revenue Growth
Strong Q2 2023 Revenue Growth Total Company +19%, B2 Cloud Storage +39% Total Company B2 Cloud Storage $24.6M $10.8M $20.7M ARR 19% $97M $7.8M $44M Q2’23 ARR 39% Q2’23 ARR Q2’22 Q2’23 Q2’22 Q2’23 Revenue Revenue NOTES: Financial data is shown for the quarters ending June 30, 2022 and 2023, and the J
Slide 4: Growth Strategy
Growth Strategy Self-Serve Sales-Assisted Partnerships Application Storage $ ©2023 | 4
Slide 5: Executing on Growth Strategy
Executing on Growth Strategy Self-Serve ● Overhauled our backend website infrastructure ● New Content Management System (CMS) for rapid testing ● More personalized onboarding experience Sales Assisted ● Customers with ARR > $50k increased to 74 in Q2’23 versus 48 in Q2’22 ● New engagements with a nu
Slide 6: Executing on Growth Strategy
Executing on Growth Strategy Partnerships ● Enabled Cloud Instant Business Recovery supporting Disaster Recovery as a Service with partner Continuity Centers ● Increased pipeline from VeeamOn and NAB conferences compared to last year ● Petabyte-scale win with technology partner, Fastly, with one of
Slide 7: Customer Story: Consumer Video App
Customer Story: Consumer Video App Backblaze Replaced Amazon S3 ● Was paying an exorbitant amount to store data in Amazon S3 after startup credits ran out ● Leveraged free egress to a networking partner ● Switched from Amazon to Backblaze in under two weeks “Backblaze has been a game changer for us
Slide 8: Eliminated Dual Class Structure
Eliminated Dual Class Structure ● Effective July 6, 2023, all outstanding shares of Class B common stock converted to Class A common stock (on a 1:1 basis) ● Support for good corporate governance ● Commitment to be a shareholder-friendly company ©2023 | 8
Slide 9: Q2 2023 Financial Overview
Q2 2023 Financial Overview Frank Patchel, CFO ©2023 | 9
Slide 10: Financial and Operational Q2 Highlights
Financial and Operational Q2 Highlights Gross Revenue Y/Y Customer ($M) Growth NRR Retention B2 Cloud Storage $10.8 39% 121% 90% Computer Backup $13.8 7% 103% 91% Total Company $24.6 19% 110% 91% NOTES: Q2’23 Total Company Revenue includes $0.1M in revenue from Physical Media. For the period present
Slide 11: Other Q2 Financial Highlights
Other Q2 Financial Highlights 75% (7)% $45M Adj. Gross Margin Adj. EBITDA Margin Balance Sheet Cash, Investments, and Restricted Cash NOTES: Adjusted Gross Margin and Adjusted EBITDA Margin are shown for the quarter ending June 30, 2023, and Balance Sheet Cash and Investments is as of June 30, 2023.
Slide 12: Q3'23 and 2023 Outlook Ranges
Q3’23 and 2023 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q3’23 Q3’23 $ 25.0 to $25.4 (8)% to (4)% Reiterating Raising 2023 2023 $98 to $102 (8.5)% to (4.5)% NOTES: The above financial information guidance for Q3 of 2023 and fiscal year 2023 are forward-looking statements. These forward-looking
Slide 13: Path to Cash Flow Breakeven
Path to Cash Flow Breakeven ● Growing revenue and improving profitability ○ Approaching adjusted EBITDA breakeven in Q4’23 ● $6M+ in expected annual savings from recent restructuring ● $6M+ in pandemic-era leases concluding ● Lower expected capital expenditures ○ Driven by software innovation and gr
Slide 14: We make it astonishingly easy to store, use, and protect data.
We make it astonishingly easy to store, use, and protect data. ©2023 | 14
Slide 15: 4) Backblaze ©2023 |
4) Backblaze ©2023 | 15
Slide 16: Institutional Investor Events
Institutional Investor Events ● August 9: Oppenheimer Technology, Internet & Communications Conference (Virtual) ● September 14: Lake Street Best Ideas Growth Conference (NYC) ©2023 | 16
Slide 17: Thank You!
Thank You! ©2023 | 17
Slide 18: 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 19: 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 20: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q2’23 Q2’22 Gross Profit $12.051 $11.132 Gross Margin 49% 54% Adjustments for Cost of Revenue: Stock Based Compensation 0.387 0.348 Depreciation and Amortization 5.985 4.377 Adjusted Gross Profit $18.423 $15.857 Adjusted Gross M
Slide 21: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q2’23 Q2’22 Net Loss $(14.337) $(11.575) Net Loss Margin -58% -56% Adjustments: Total Stock Based Compensation 4.884 4.346 Severance charges 1.147 — Non-GAAP Net Income (Loss) $(8.306) $(7.229) Non-GAAP Net Income Margin -34% -35% Non-GAAP Diluted Shar
Slide 22: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q2’23 Q2’22 Net Loss $(14.337) $(11.575) Net Loss Margin -58% -56% Adjustments: Total Depreciation & Amortization 6.131 4.570 Total Stock Based Compensation 4.884 4.346 Net Interest Expense 0.423 0.793 Income Tax Provision (Benefit) — (0.037) Work
Slide 23: Reconciliation of Non-GAAP Measures: Operating Expenses
Reconciliation of Non-GAAP Measures: Operating Expenses Q2’23 Q2’22 R&D (GAAP) $9.925 $8.400 Adj: Stock Based Compensation (1.788) (1.683) Restructuring charges (1.147) - S&M (GAAP) 9.875 8.369 Adj: Stock Based Compensation (1.717) (1.233) Restructuring charges - - G&A (GAAP) 6.165 5.182 Adj: Stock
Slide 24: Thank you.
dy Backblaze Thank you. 4) Backblaze ©2023 | 24