Backblaze, Inc. · NASDAQ:BLZE
Backblaze — Q1 2023 Earnings Presentation
21 slides from Backblaze's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Results
Q1 2023 Results Gleb Budman, Frank Patchel, Co-founder, CFO CEO and Chair May 9, 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 Q1 Y/Y Growth: Revenue +20%, B2 Cloud Storage +42%
Strong Q1 Y/Y Growth: Revenue +20%, B2 Cloud Storage +42% Total Revenue B2 Cloud Storage $23.4M $10.0M $19.5M ARR 20% $96M $7.0M $42M Q1’23 ARR 42% Q1’23 ARR Q1’22 Q1’23 Q1’22 Q1’23 Revenue Revenue NOTES: Financial data is shown for the quarters ending March 31, 2022 and 2023, and is based on unaudi
Slide 4: Growth Strategy: Key Elements
Growth Strategy: Key Elements Self-Serve Funnel Optimization Sales-Assisted Partnerships Application Storage $ ©2023 | 4
Slide 5: Customer Story: AI-enabled video search service
Customer Story: AI-enabled video search service Backblaze Replaced Azure ● Initially used free credits from Azure ● Felt “blocked” by Azure’s limitations, complex interface, and lack of S3 compatibility ● Could not use all the software tools they wanted ● Leveraged Backblaze / Vultr (Compute) partne
Slide 6: Customer Story: Esports Event Production Company
Customer Story: Esports Event Production Company Backblaze Replaced Google Cloud Platform ● Initially used Google Cloud Platform (GCP) as their storage backend ● GCP was expensive and failed during a couple of events ● Saved significant data storage costs by switching to Backblaze B2 Cloud Storage “
Slide 7: Customer Story: School System in Washington State
Customer Story: School System in Washington State Backblaze Replaced Amazon S3 ● Was paying an exorbitant amount to store data in Amazon S3 ● Considered Amazon Glacier, but speed and cost of data retrieval were a concern ● Saved 75% on data storage costs by switching to Backblaze B2 Cloud Storage “I
Slide 8: Q1 2023 Financial Overview
Q1 2023 Financial Overview Frank Patchel, CFO ©2023 | 8
Slide 9: Financial and Operational Q1 Highlights
Financial and Operational Q1 Highlights Gross Revenue Y/Y Customer ($M) Growth NRR Retention B2 Cloud Storage $10.0 42% 120% 90% Computer Backup $13.4 8% 106% 90% Total Company $23.4 20% 111% 91% NOTES: Q1’23 total company revenue includes $0.2 million in revenue from Physical Media. For the periods
Slide 10: Other Q1 Financial Highlights
Other Q1 Financial Highlights 72% -12% $57M Adj. Gross Margin Adj. EBITDA Margin Balance Sheet Cash, Investments, and Restricted Cash NOTES: Adjusted Gross Margin and Adjusted EBITDA Margin are shown for the quarter ending March 31, 2023, and Balance Sheet Cash and Investments is as of March 31, 202
Slide 11: Q2'23 and 2023 Outlook Ranges
Q2’23 and 2023 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q2’23 Q2’23 $24.1 to $24.5 -11% to -7% Reiterating: Reiterating: 2023 2023 $98 to $102 -10% to -6% NOTES: The above financial information guidance for the second quarter of fiscal year 2023 and fiscal year 2023 are forward-looking stateme
Slide 12: We make it astonishingly easy to store, use, and protect data.
We make it astonishingly easy to store, use, and protect data. ©2023 | 12
Slide 13: Backblaze
4) Backblaze ©2023 | 13
Slide 14: Institutional Investor Events
Institutional Investor Events ● May 11: Oppenheimer Emerging Growth Conference ● June 12: Investor Meetings Hosted by Cenkos (London) ● June 14: Cantor Fitzgerald CyberSecurity and Infrastructure Software Conference (NYC) ● June 15: Investor Meetings Hosted by Craig-Hallum (NYC) ©2023 | 14
Slide 15: Thank You!
Thank You! ©2023 | 15
Slide 16: 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 17: 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 18: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q1’23 Q1’22 Gross Profit $10.969 $9.809 Gross Margin 47% 50% Adjustments for Cost of Revenue: Stock Based Compensation 0.416 0.276 Depreciation and Amortization 5.570 4.670 Adjusted Gross Profit $16.955 $14.755 Adjusted Gross Ma
Slide 19: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q1’23 Q1’22 Net Loss $(17.113) $(12.530) Net Loss Margin -73% -64% Adjustments: Total Stock Based Compensation 5.703 3.835 Severance charges 2.457 Non-GAAP Net Income (Loss) $(8.953) $(8.695) Non-GAAP Net Income Margin -38% -45% Non-GAAP Diluted Shares
Slide 20: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q1’23 Q1’22 Net Loss $(17.113) $(12.530) Net Loss Margin -73% -64% Adjustments: Total Depreciation & Amortization 5.733 4.863 Total Stock Based Compensation 5.703 3.835 Net Interest Expense 0.313 0.873 Income Tax Provision (Benefit) (0.032) Workfo
Slide 21: Thank you.
cf Backblaze Thank you. 4s Backblaze ©2023 | 21