Backblaze Announces Fourth Quarter and Full Year 2024 Financial Results

22% Revenue Growth in B2 Cloud Storage, 18% Revenue Growth Overall in Q4 2024

Q4 Adjusted EBITDA Margin More than Doubled Year Over Year to 14%

SAN MATEO, Calif.--(BUSINESS WIRE)--February 25, 2025-- 

Backblaze, Inc. (Nasdaq: BLZE), the cloud storage innovator delivering a modern alternative to traditional cloud providers, today announced results for its fourth quarter and year ended December 31, 2024.

"Record Q4 sales bookings capped a strong year, validating early traction in our Go-To-Market transformation," said Gleb Budman, CEO of Backblaze. "Not only did we increase sales productivity and won an over $1 million ACV customer in the quarter, we also saw AI starting to meaningfully contribute to the business, with 3 AI companies now in our top 10 customers in December 2024."

Fourth Quarter 2024 Financial Highlights:

   -- 
 Revenue of $33.8 million, an increase of 18% year-over-year (YoY). 
 
          -- 
 B2 Cloud Storage revenue was $17.1 million, an increase of 22% 
             YoY. 
 
 
          -- 
 Computer Backup revenue was $16.7 million, an increase of 
             13%YoY. 
 
 
 
 
   -- 
 Gross profit of $18.5 million, or 55% of revenue, compared to $15.1 
      million or 52% of revenue, in Q4 2023. 
 
 
   -- 
 Adjusted gross profit of $26.3 million, or 78% of revenue, compared to 
      $22.1 million or 77% of revenue in Q4 2023. 
 
 
   -- 
 Net loss was $14.4 million compared to a net loss of $12.2 million in 
      Q4 2023. 
 
 
   -- 
 Net loss per share was $0.30 for compared to a net loss per share of 
      $0.32 in Q4 2023. 
 
 
   -- 
 Adjusted EBITDA was $4.6 million, or 14% of revenue, compared to $1.7 
      million or 6% of revenue in Q4 2023. 
 
 
   -- 
 Non-GAAP net loss of $3.0 million compared to non-GAAP net loss of $5.5 
      million in 2023. 
 
 
   -- 
 Non-GAAP net loss per share of $0.06 compared to a non-GAAP net loss 
      per share of $0.14 in 2023. 
 
 
   -- 
 Cash and short-term investments totaled $54.9 million as of December 
      31, 2024. 
 

Full-Year 2024 Financial Highlights:

   -- 
 Revenue of $127.6 million, an increase of 25% year-over-year (YoY). 
 
          -- 
 B2 Cloud Storage revenue was $63.3 million, an increase of 36% 
             YoY. 
 
 
          -- 
 Computer Backup revenue was $64.3 million, an increase of 16% 
             YoY. 
 
 
 
 
   -- 
 Gross profit of $69.3 million, or 54% of revenue, compared to $49.9 
      million or 49% of revenue, in 2023. 
 
 
   -- 
 Adjusted gross profit of $99.2 million, or 78% of revenue, compared to 
      $76.2 million or 75% of revenue in 2023. 
 
 
   -- 
 Net loss was $48.5 million compared to a net loss of $59.7 million in 
      2023. 
 
 
   -- 
 Net loss per share was $1.11 compared to a net loss per share of $1.66 
      in 2023. 
 
 
   -- 
 Adjusted EBITDA was $13.0 million, or 10% of revenue, compared to 
      $(3.8) million or (4)% of revenue in 2023. 
 
 
   -- 
 Non-GAAP net loss of $17.5 million compared to non-GAAP net loss of 
      $30.5 million in 2023. 
 
 
   -- 
 Non-GAAP net loss per share of $0.40 compared to a non-GAAP net loss 
      per share of $0.85 in 2023. 
 
 
   -- 
 Net cash provided by operating activities during the year ended 
      December 31, 2024 was $12.5 million, compared to cash used in operating 
      activities of $7.4 million during the year ended December 31, 2023. 
 
 
   -- 
 Adjusted free cash flow during the year ended December 31, 2024 was 
      $(20.1) million, compared to $(43.2) million during the year ended 
      December 31, 2023. 
 

Fourth Quarter 2024 Operational Highlights:

   -- 
 Annual recurring revenue $(ARR)$ was $136.7 million, an increase of 16% 
      YoY. 
 
          -- 
 B2 Cloud Storage ARR was $70.2 million, an increase of 22% YoY. 
 
 
          -- 
 Computer Backup ARR was $66.5 million, an increase of 11% YoY. 
 
 
 
 
   -- 
 Net revenue retention $(NRR.UK)$ rate was 116% compared to 109% in Q4 2023. 
 
          -- 
 B2 Cloud Storage NRR was 123% compared to 122% in Q4 2023. 
 
 
          -- 
 Computer Backup NRR was 109% compared to 100% in Q4 2023. 
 
 
 
 
   -- 
 Gross customer retention rate was 90% in Q4 2024 compared to 91% in Q4 
      2023. 
 
          -- 
 B2 Cloud Storage gross customer retention rate was 89% in Q4 
             2024 compared to 90% in Q4 2023. 
 
 
          -- 
 Computer Backup gross customer retention rate was 90% in Q4 2024 
             compared to 91% in Q4 2023. 
 
 
 
 
   -- 
 Number of customers was 507,647 versus 511,942 in Q4 2023. 
 
          -- 
 B2 Cloud Storage number of customers was 107,616 versus 97,842 
             in Q4 2023. 
 
 
          -- 
 Computer Backup number of customers was 417,845 versus 431,745 
             in Q4 2023. 
 
 
 
 
   -- 
 Total Annual Average Revenue Per Customer (ARPU) was $268 versus $228 
      in Q4 2023. 
 
          -- 
 B2 Cloud Storage ARPU was $645 versus $577 in Q4 2023. 
 
 
          -- 
 Computer Backup ARPU was $159 versus $140 in Q4 2023. 
 
 
 

Recent Business Highlights

   -- 
 Signed A Deal for Over $1 Million in Annual Contract Value: An existing 
      customer expanded into a Powered by Backblaze white label partnership to 
      unlock greater market opportunities. 
 
 
   -- 
 AI Tailwinds Accelerate: 65% more AI customers year over year drove a 
      nearly 10-fold increase in AI related data, with 3 AI companies now in 
      our top 10 customers in December 2024. 
 
 
   -- 
 B2 Cloud Storage Crossed Over 50% of Company Sales: Fastest growing 
      offering is now also the dominant part of the business. 
 
 
   -- 
 Executed a Successful Secondary Offering: This oversubscribed offering 
      reinforces our balance sheet with $37 million in net proceeds. 
 
 
   -- 
 Unlocked $8 Million in Annualized Cost Savings: Increased operating 
      efficiency enables re-investment in sales capacity. 
 
 
   -- 
 Named the 'Easiest to Use' and the 'Fastest Implementation' Object 
      Storage Solution: G2, a popular software review site, recognized 
      Backblaze in their Winter 2025 Report. 
 

Financial Outlook:

Based on information available as of the date of this press release,

For the first quarter of 2025 we expect:

   -- 
 Revenue between $34.1 million to $34.5 million. 
 
 
   -- 
 Adjusted EBITDA margin between 13% to 15%. 
 
 
   -- 
 Basic weighted average shares outstanding of 54.0 million to 54.3 
      million shares. 
 

For full-year 2025 we expect:

   -- 
 Revenue between $144.0 million to $146.0 million. 
 
 
   -- 
 Adjusted EBITDA margin between 16% to 18%. 
 
 
   -- 
 For YoY growth in our B2 business, refer to table below: 
 
 
Q1 2025   Q2 2025   Q3 2025  Q4 2025 
--------  --------  -------  ------- 
21 - 23%  23 - 25%  25-28%    30%+ 
--------  --------  -------  ------- 
 

Conference Call Information:

Backblaze will host a conference call today, February 25, 2025, at 2:00 p.m. PT (5:00 p.m. ET) to review its financial results.

Attend the webcast here: https://events.q4inc.com/attendee/327945335

Register to listen by phone here: https://registrations.events/direct/Q4I489011

Phone registrants will receive dial-in information via email.

An archive of the webcast will be available shortly after its completion on the Investor Relations section of the Backblaze website at https://ir.backblaze.com.

About Backblaze

Backblaze is the cloud storage innovator delivering a modern alternative to traditional cloud providers. We offer high-performance, secure cloud object storage that customers use to develop applications, manage media, secure backups, build AI workflows, protect from ransomware, and more. Backblaze helps businesses break free from the walled gardens that traditional providers lock customers into, enabling customers to use their data in open cloud workflows with the providers they prefer at a fraction of the cost. Headquartered in San Mateo, CA, Backblaze (Nasdaq: BLZE) was founded in 2007 and serves over 500,000 customers in 175 countries around the world. For more information, please go to www.backblaze.com.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements are frequently identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would," or other similar terms or expressions that relate to our future performance, expectations, strategy, plans or intentions, and include statements in the section titled "Financial Outlook."

Our actual results could differ materially from those stated in or implied by the forward-looking statements in this press release due to a number of factors, including but not limited to: the impact of our go-to-market transformation and ability to attract and retain customers, including increasingly larger customers; the continued growth of data stored by our customers; continued growth of AI related business; realizing the anticipated benefits relating to cost savings initiatives and the re-investment of savings in additional sales capacity; market competition, including competitors that may have greater size, offerings and resources; effectively managing growth; ability to offer new features and other offerings on a timely basis, including geographic expansion in Canada or other jurisdictions, and achieve desired market adoption; disruption in our service or loss of availability of customers' data; cyberattacks; continued growth consistent with historical levels; the impact of pricing and other product offering changes; material defects or errors in our software; supply chain disruption; ability

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