Slide 1: Q3 2022 Results
Q3 2022 Results Gleb Budman, Frank Patchel, Co-founder, CFO CEO and Chair November 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 Q3 Y/Y Growth: Revenue +27%, B2 Cloud Storage +48%
Strong Q3 Y/Y Growth: Revenue +27%, B2 Cloud Storage +48% Total Revenue B2 Cloud Storage $22.1M $8.8M $17.3M ARR 27% $88M $6.0M $36M Q3’22 ARR 48% Q3’22 ARR Q3’21 Q3’22 Q3’21 Q3’22 Revenue Revenue NOTES: Financial data is shown for the quarters ending September 30, 2021 and 2022, and is based on una
Slide 4: Q3 Highlights
Q3 Highlights ● B2 Cloud Storage: now 40% of total revenue ● Developers: ○ 9 of top 20 accounts are developers ○ Data stored +80% Y/Y ● Scaling a Channel Partnership Approach ©2022 | 4
Slide 5: Developer Outreach
Developer Outreach ● Developers: Use B2 Cloud Storage as backend for SaaS, e-Commerce or other business ● Active Evangelism Program: QCon, SpiceWorld, Info-Tech LIVE, Storage Developer Conference ● Technology Day: Thousands of registrants ©2022 | 5
Slide 6: Sales and Marketing: Channel Partner Program
Sales and Marketing: Channel Partner Program ● Online Partner Portal: A dedicated place for partners to access deal registration, discounts, support, and self-service promotional resource ● New Channel Partners: Expanded partnerships with new national resellers ● Partner Team: Continued to expand to
Slide 7: Partner Updates
Partner Updates Ransomware Protection Cloud for Media Management MSP360 customers can now protect Integrated B2 with Elements, a their backup data from ransomware cloud-based media asset with Backblaze B2 Object Lock. management provider. ©2022 | 7
Slide 8: Customer Story: urlscan.io
Customer Story: urlscan.io ● Information security developer ● Considered S3 but chose Backblaze B2 for: ○ Strong B2 performance ○ Easy integration with S3 APIs ○ Low cost with no hidden fees “When I ran the numbers, I realized that Backblaze was cost effective for us, and we’d get additional benefits
Slide 9: Customer Story: Fiture
Customer Story: Fiture ● Digital fitness company ● Used on-premise storage but chose B2 Reserve for: ○ Streamlined production workflows ○ Predictable billing ○ Freedom from storage growth worries “Backblaze solves every single one of my asks. The ease is unbelievable, the support is fantastic, and it
Slide 10: New Chief Human Resources Officer (CHRO): Robert Fitt
New Chief Human Resources Officer (CHRO): Robert Fitt Seasoned Human Resources Executive ● 20 years of HR experience ● HR leadership roles at Turntide Technologies, 360 Behavioral Health, Mobilite, Broadcom Corporation, and others ©2022 | 10
Slide 11: New Chief Technology Officer (CTO): Brian Beach
New Chief Technology Officer (CTO): Brian Beach Seasoned CTO ● 40 years of technical experience ● Joined Backblaze in 2013 as a Distinguished Engineer ● Engineering leadership roles at TiVo, Silicon Graphics, Hewlett-Packard, and others ©2022 | 11
Slide 12: Q3 2022 Financial Overview
Q3 2022 Financial Overview Frank Patchel, CFO ©2022 Confidential | 12 | 12
Slide 13: Financial and Operational Q3 Highlights
Financial and Operational Q3 Highlights Revenue Y/Y Gross Customer ($M) Growth NRR Retention B2 Cloud Storage $8.8 48% 123% 90% Computer Backup $13.1 17% 108% 90% Total Company $22.1 27% 114% 91% NOTES: Q3’22 total company revenue includes $0.2 million in revenue from Physical Media. All financial in
Slide 14: Other Q3 Financial Highlights
Other Q3 Financial Highlights 76% -8% $80M Adj. Gross Margin Adj. EBITDA Margin Balance Sheet Cash, Investments, and Restricted Cash NOTES: Adjusted Gross Margin and Adjusted EBITDA Margin are shown for the quarter ending September 30, 2022, and Balance Sheet Cash and Investments is as of September
Slide 15: Q4'22 and 2022 Outlook Ranges
Q4’22 and 2022 Outlook Ranges Revenue ($M) Adj. EBITDA Margin Q4’22 Q4’22 $22.5 to $22.9 -14% to -10% Narrowing and Raising the Midpoint: Raising: 2022 2022 $84.7 to $85.1 -12% to -11% (was $83.0 to $86.0) (was -17% to -13%) NOTES: The above financial information guidance for the fourth quarter of fis
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 ● Nov 15: Investor Summit (Virtual) ● Dec 7: Raymond James Conference (NYC) ©2022 | 18
Slide 19: Investor Relations
Investor Relations ©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 an
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 plannin
Slide 23: Reconciliation of Non-GAAP Measures: Gross Margin
Reconciliation of Non-GAAP Measures: Gross Margin Adjusted Gross Profit Q3’22 Q3’21 Gross Profit $11.215 $8.801 Gross Margin 51% 51% Adjustments for Cost of Revenue: Stock Based Compensation 0.353 0.139 Depreciation and Amortization 5.131 3.896 Adjusted Gross Profit $16.699 $12.836 Adjusted Gross Margi
Slide 24: Reconciliation of Non-GAAP Measures: Net Income
Reconciliation of Non-GAAP Measures: Net Income Q3’22 Q3’21 Net Loss $(12.800) $(5.993) Net Loss Margin -58% -35% Adjustments: Total Stock Based Compensation 4.830 1.448 Unrealized loss on SAFE 0.359 Non-GAAP Net Income (Loss) $(7.970) $(4.186) Non-GAAP Net Income Margin -36% -24% Non-GAAP Diluted S
Slide 25: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q3’22 Q3’21 Net Loss $(12,800) $(5.993) Net Loss Margin -58% -35% Adjustments: Total Depreciation & Amortization 5.357 4.059 Total Stock Based Compensation 4.830 1.448 Net Interest Expense 0.740 0.968 Income Tax (Benefit) Provision Unrealized loss
Slide 26: Reconciliation of Non-GAAP Measures: Operating Expenses
Reconciliation of Non-GAAP Measures: Operating Expenses Adjusted Operating Expenses Q3’22 Q3’21 R&D $8.152 $5.338 Adj: Stock Based Compensation (1.828) (0.446) S&M 9.727 5.025 Adj: Stock Based Compensation (1.539) (0.489) G&A 5.396 3.104 Adj: Stock Based Compensation (1.110) (0.354) Adjusted R&D (%
Slide 27: Thank you.
Thank you. ©2022 Confidential | 27 | 27