BLZE Backblaze Inc

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%

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) 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 to maintain existing relationships with partners and to enter into new partnerships; ability to remediate and prevent material weaknesses in our internal controls over financial reporting; hiring and retention of key employees; the impact of war or hostilities, and other significant world or regional events on our business and the business of our customers, vendors, supply chain and partners; litigation and other disputes; the impact of tariffs on other trade restrictions and actions; and general market, political, economic, and business conditions. Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual results or outcomes to differ materially from those included in or implied by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Quarterly Reports on Form 10-Q and other filings and reports we make with the SEC from time to time.

The forward-looking statements made in this release reflect our views as of the date of this press release. We undertake no obligation to update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use (i) non-GAAP adjusted gross profit and margin, (ii) adjusted EBITDA and adjusted EBITDA margin, (iii) non-GAAP net income (loss), and (iv) adjusted free cash flow and adjusted free cash flow margin. These non-GAAP financial measures exclude certain items and are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of our performance and provide an additional basis for assessing our operating results. Please see the appendix attached to this press release for a reconciliation of non-GAAP adjusted gross margin and adjusted EBITDA margin to the most directly comparable GAAP financial measures.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses and other factors in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict with reasonable accuracy and subject to constant change.

Adjusted Gross Profit (and Margin)

We believe adjusted gross profit (and margin), when taken together with our GAAP financial results, provides a meaningful assessment of our performance and is useful to us for evaluating our ongoing operations and for internal planning and forecasting purposes.

We define adjusted gross margin as gross profit, excluding stock-based compensation expense, depreciation and amortization and restructuring charges within cost of revenue, as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, and restructuring costs because we do not consider it indicative of our core operating performance. We exclude depreciation expense of our property and equipment and amortization expense of capitalized internal-use software because these may not reflect current or future cash spending levels to support our business. We believe adjusted gross margin provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric eliminates the effects of depreciation and amortization.

Adjusted EBITDA and Adjusted EBITDA Margin

We define adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, net, investment income, income tax provision, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, restructuring costs, legal settlement costs, and other non-recurring charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues for the period. We use adjusted EBITDA and Adjusted EBITDA Margin to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA and Adjusted EBITDA Margin to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis.

Non-GAAP Net Income (Loss)

We define non-GAAP net income (loss) as net income adjusted to exclude stock-based compensation, realized and unrealized gains and losses on foreign currency transactions, restructuring costs, legal settlement costs, and other items we deem non-recurring. We believe that non-GAAP net income (loss), when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

We define adjusted free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment, capitalized internal-use software costs, principal payments on finance leases and lease financing obligations, as reflected in our consolidated statements of cash flows, and excluding restructuring costs, legal settlement costs, and other non-recurring charges. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by revenue.

Key Business Metrics:

Annual Recurring Revenue (ARR)

We define annual recurring revenue (ARR) as the annualized value of all Backblaze B2 and Computer Backup arrangements as of the end of a period. Given the renewable nature of our business, we view ARR as an important indicator of our financial performance and operating results, and we believe it is a useful metric for internal planning and analysis. ARR is calculated based on multiplying the monthly revenue from all Backblaze B2 and Computer Backup arrangements, which represent greater than 98% of our revenue for the periods presented for the last month of a period by 12. Our annual recurring revenue for Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall annual recurring revenue based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively.

Net Revenue Retention Rate (NRR)

Our overall net revenue retention rate (NRR) is a trailing four-quarter average of the recurring revenue from a cohort of customers in a quarter as compared to the same quarter in the prior year. We calculate our overall net revenue retention rate for a quarter by dividing (i) recurring revenue in the current quarter from any accounts that were active at the end of the same quarter of the prior year by (ii) recurring revenue in the current corresponding quarter from those same accounts. Our overall net revenue retention rate includes any expansion of revenue from existing customers and is net of revenue contraction and customer attrition, and excludes revenue from new customers in the current period. Our net revenue retention rate for Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall net revenue retention rate based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively.

Gross Customer Retention Rate

We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. We believe our high gross customer retention rates demonstrate that we serve a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next. To calculate our gross customer retention rate, we take the trailing four-quarter average of the percentage of cohort of customers who were active at the end of the quarter in the prior year that are still active at the end of the current quarter. We calculate our gross customer retention rate for a quarter by dividing (i) the number of accounts that generated revenue in the last month of the current quarter that also generated recurring revenue during the last month of the corresponding quarter in the prior year, by (ii) the number of accounts that generated recurring revenue during the last month of the corresponding quarter in the prior year.

Number of Customers

We define a customer at the end of any period as a distinct account, as identified by a unique account identifier, that has paid for our cloud services, which makes up substantially all of our user base. In Q4 2023, we refined our customer definition to include end-user customers that purchase through a reseller. This resulted in no impact to previously reported metrics other than a 1% decrease to the 120% NRR metric reported for Q3 2023.

Annual Average Revenue Per User

We define annual average revenue per user (Annual ARPU) as the annualized value for the average revenue per customer. Annual ARPU is calculated by dividing our revenue for the last month of a period by the total number of customers as of the last day of the same period, and then multiplying the resulting quotient by 12. Our annual average revenue per user for Computer Backup and B2 Cloud Storage is calculated in the same manner based on the revenue and number of customers from our Computer Backup and B2 Cloud Storage solutions, respectively.

BACKBLAZE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

December 31,

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

45,776

 

 

$

12,502

 

Accounts receivable, net

 

1,831

 

 

 

800

 

Short-term investments, net

 

9,139

 

 

 

16,799

 

Prepaid expenses and other current assets

 

9,002

 

 

 

8,413

 

Total current assets

 

65,748

 

 

 

38,514

 

Restricted cash, non-current

 

—

 

 

 

4,128

 

Property and equipment, net

 

42,949

 

 

 

45,600

 

Operating lease right-of-use assets, net

 

15,873

 

 

 

9,980

 

Capitalized internal-use software, net

 

41,801

 

 

 

32,521

 

Other assets

 

2,187

 

 

 

944

 

Total assets

$

168,558

 

 

$

131,687

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,459

 

 

$

1,973

 

Accrued expenses and other current liabilities

 

7,584

 

 

 

8,768

 

Finance lease liabilities and lease financing obligations, current

 

16,327

 

 

 

18,492

 

Operating lease liabilities, current

 

4,026

 

 

 

1,878

 

Deferred revenue, current

 

30,407

 

 

 

25,976

 

Total current liabilities

 

59,803

 

 

 

57,087

 

Finance lease liabilities and lease financing obligations, non-current

 

13,142

 

 

 

13,310

 

Operating lease liabilities, non-current

 

12,844

 

 

 

8,151

 

Deferred revenue, non-current

 

5,147

 

 

 

4,073

 

Debt facility, non-current

 

—

 

 

 

4,128

 

Total liabilities

 

90,936

 

 

 

86,749

 

Commitments and contingencies

 

 

 

Stockholders’ Equity

 

 

 

Class A common stock, $0.0001 par value; 113,000,000 shares authorized as of December 31, 2024 and 2023; 53,375,770 and 39,150,610 shares issued and outstanding as of December 31, 2024 and 2023, respectively.

 

5

 

 

 

4

 

Additional paid-in capital

 

273,602

 

 

 

192,388

 

Accumulated deficit

 

(195,985

)

 

 

(147,454

)

Total stockholders’ equity

 

77,622

 

 

 

44,938

 

Total liabilities and stockholders’ equity

$

168,558

 

 

$

131,687

 

BACKBLAZE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

 

 

Three Months Ended December 31,

 

For the Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(unaudited)

 

 

Revenue

$

33,786

 

 

$

28,737

 

 

$

127,628

 

 

$

102,019

 

Cost of revenue

 

15,283

 

 

 

13,653

 

 

 

58,285

 

 

 

52,162

 

Gross profit

 

18,503

 

 

 

15,084

 

 

 

69,343

 

 

 

49,857

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

12,029

 

 

 

9,430

 

 

 

42,098

 

 

 

39,527

 

Sales and marketing

 

11,704

 

 

 

10,100

 

 

 

44,440

 

 

 

41,270

 

General and administrative

 

8,542

 

 

 

7,179

 

 

 

29,094

 

 

 

26,965

 

Total operating expenses

 

32,275

 

 

 

26,709

 

 

 

115,632

 

 

 

107,762

 

Loss from operations

 

(13,772

)

 

 

(11,625

)

 

 

(46,289

)

 

 

(57,905

)

Investment income

 

363

 

 

 

408

 

 

 

1,422

 

 

 

1,984

 

Interest expense, net

 

(968

)

 

 

(991

)

 

 

(3,658

)

 

 

(3,792

)

Loss before provision for income taxes

 

(14,377

)

 

 

(12,208

)

 

 

(48,525

)

 

 

(59,713

)

Income tax provision

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

Net loss and comprehensive loss

$

(14,377

)

 

$

(12,208

)

 

$

(48,531

)

 

$

(59,713

)

Net loss per share attributable to Class A and Class B common stockholders, basic and diluted

$

(0.30

)

 

$

(0.32

)

 

$

(1.11

)

 

$

(1.66

)

Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted(1)

 

48,212,796

 

 

 

38,254,122

 

 

 

43,543,023

 

 

 

36,011,446

 

 

(1) On July 6, 2023, all shares of our then outstanding Class B common stock were automatically converted into the same number of Class A common stock, pursuant to the terms of our Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion.

BACKBLAZE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

For the Years

Ended December 31,

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES

(unaudited)

 

 

Net loss

$

(48,531

)

 

$

(59,713

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Net accretion of discount on investment securities and net realized investment gains

 

64

 

 

 

417

 

Noncash lease expense on operating leases

 

2,727

 

 

 

2,350

 

Depreciation and amortization

 

28,328

 

 

 

24,912

 

Impairment loss on right-of-use assets

 

898

 

 

 

—

 

Stock-based compensation

 

28,628

 

 

 

25,177

 

Impairment of capitalized internal-use software

 

—

 

 

 

232

 

Gain on disposal of assets

 

(154

)

 

 

(292

)

Other

 

345

 

 

 

—

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(1,031

)

 

 

56

 

Prepaid expenses and other current assets

 

(741

)

 

 

(445

)

Other assets

 

(1,346

)

 

 

(389

)

Accounts payable

 

(547

)

 

 

(295

)

Accrued expenses and other current liabilities

 

948

 

 

 

(1,422

)

Deferred revenue

 

5,505

 

 

 

4,526

 

Operating lease liabilities

 

(2,588

)

 

 

(2,464

)

Net cash provided by (used in) operating activities

 

12,505

 

 

 

(7,350

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Purchases of marketable securities

 

(38,097

)

 

 

(26,358

)

Maturities of marketable securities

 

45,693

 

 

 

67,874

 

Proceeds from disposal of property and equipment

 

455

 

 

 

369

 

Purchases of property and equipment

 

(1,711

)

 

 

(5,512

)

Capitalized internal-use software costs

 

(12,471

)

 

 

(14,716

)

Net cash (used in) provided by investing activities

 

(6,131

)

 

 

21,657

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Principal payments on finance lease and lease financing obligations

 

(19,503

)

 

 

(19,510

)

Proceeds from issuance of common stock upon public offering, net of underwriting discounts and commission and other offering costs

 

37,434

 

 

 

—

 

Payments of offering costs

 

(383

)

 

 

—

 

Proceeds from debt facility

 

554

 

 

 

4,273

 

Repayment of debt facility

 

(4,682

)

 

 

(4,450

)

Proceeds from insurance premium financing

 

—

 

 

 

893

 

Principal payments on insurance premium financing

 

(893

)

 

 

(1,545

)

Proceeds from lease financing obligations

 

—

 

 

 

4,450

 

Proceeds from exercises of stock options

 

7,477

 

 

 

4,708

 

Proceeds from ESPP

 

2,768

 

 

 

2,339

 

Net cash provided by (used in) financing activities

 

22,772

 

 

 

(8,842

)

Net increase in cash

 

29,146

 

 

 

5,465

 

Cash and cash equivalents and restricted cash, at beginning of period

 

16,630

 

 

 

11,165

 

Cash and cash equivalents, at end of period

$

45,776

 

 

$

16,630

 

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

 

Cash and cash equivalents

$

45,776

 

 

$

12,502

 

Restricted cash, non-current

 

—

 

 

$

4,128

 

Total cash and cash equivalents and restricted cash, non-current

$

45,776

 

 

$

16,630

 

BACKBLAZE, INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(in thousands, except percentages)

Adjusted Gross Profit and Adjusted Gross Margin

   

 

For the Three Months Ended December 31,

 

For the Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(unaudited)

Gross profit

$

18,503

 

 

$

15,084

 

 

$

69,343

 

 

$

49,857

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation

 

398

 

 

 

530

 

 

 

1,616

 

 

 

1,986

 

Depreciation and amortization

 

6,917

 

 

 

6,439

 

 

 

27,761

 

 

 

24,330

 

Restructuring charges

 

460

 

 

 

—

 

 

 

460

 

 

 

—

 

Adjusted gross profit

$

26,278

 

 

$

22,053

 

 

$

99,180

 

 

$

76,173

 

Gross margin

 

55

%

 

 

52

%

 

 

54

%

 

 

49

%

Adjusted gross margin

 

78

%

 

 

77

%

 

 

78

%

 

 

75

%

Adjusted EBITDA and Adjusted EBITDA Margin

 

 

For the Three Months Ended December 31,

 

For the Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(unaudited)

Net loss

$

(14,377

)

 

$

(12,208

)

 

$

(48,531

)

 

$

(59,713

)

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

7,060

 

 

 

6,575

 

 

 

28,328

 

 

 

24,912

 

Stock-based compensation (1)

 

6,609

 

 

 

6,507

 

 

 

26,104

 

 

 

25,052

 

Interest expense and investment income

 

605

 

 

 

583

 

 

 

2,236

 

 

 

1,808

 

Income tax provision

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

Foreign exchange (gain) loss (2)

 

(127

)

 

 

65

 

 

 

32

 

 

 

123

 

Non-recurring professional services

 

—

 

 

 

129

 

 

 

—

 

 

 

411

 

Restructuring charges (3)

 

4,861

 

 

 

—

 

 

 

4,861

 

 

 

3,616

 

Adjusted EBITDA

$

4,631

 

 

$

1,651

 

 

$

13,036

 

 

$

(3,791

)

Adjusted EBITDA Margin

 

14

%

 

 

6

%

 

 

10

%

 

 

(4

)%

 

(1) During the three months ended December 31, 2024, $2.5 million of stock-based compensation expense is classified as restructuring charges in the table above, as it was incurred as part of our restructuring program. No stock-based compensation related to restructuring charges was recognized during the three months ended December 31, 2023. During the years ended December 31, 2024 and 2023, $2.5 million and $0.1 million, respectively, of stock-based compensation is classified as restructuring charges in the table above.

(2) As of December 31, 2024, we included foreign exchange (gain) loss in its reconciliation of net loss to Adjusted EBITDA. Adjusted EBITDA and Adjusted EBITDA Margin for the prior periods presented have been updated to conform with current presentation.

(3) Restructuring charges represent costs incurred in connection with our restructuring plans. Costs incurred in connection with the 2024 Restructuring Plan include: (i) $3.9 million of severance and benefits related to impacted employees, (ii) $0.9 million related to the expected sublease of a portion of our corporate headquarters, and (iii) $0.1 million of professional service fees related to the execution of the 2024 Restructuring Plan. Costs incurred during the year ended December 31, 2023 relate to severance and benefits for the employees impacted by the restructuring plan initiated in Q1 2023.

BACKBLAZE, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands, except share and per share data)

Non-GAAP Net Loss

 

 

For the Three Months Ended December 31,

 

For the Years Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(unaudited)

Net loss

$

(14,377

)

 

$

(12,208

)

 

$

(48,531

)

 

$

(59,713

)

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation (1)

 

6,609

 

 

 

6,507

 

 

 

26,104

 

 

 

25,052

 

Foreign exchange (gain) loss (2)

 

(127

)

 

 

65

 

 

 

32

 

 

 

123

 

Non-recurring professional services

 

—

 

 

 

129

 

 

 

—

 

 

 

411

 

Restructuring charges (3)

 

4,861

 

 

 

—

 

 

 

4,861

 

 

 

3,616

 

Non-GAAP net loss

$

(3,034

)

 

$

(5,507

)

 

$

(17,534

)

 

$

(30,511

)

Non-GAAP net loss per share, basic and diluted

$

(0.06

)

 

$

(0.14

)

 

$

(0.40

)

 

$

(0.85

)

Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted

 

48,212,796

 

 

 

38,254,122

 

 

 

43,543,023

 

 

 

36,011,446

 

 

(1) During the three months ended December 31, 2024, $2.5 million of stock-based compensation expense is classified as restructuring charges in the table above, as it was incurred as part of our restructuring program. No stock-based compensation related to restructuring charges was recognized during the three months ended December 31, 2023. During the years ended December 31, 2024 and 2023, $2.5 million and $0.1 million, respectively, of stock-based compensation is classified as restructuring charges in the table above.

(2) As of December 31, 2024, we included foreign exchange loss (gain) in its reconciliation of net loss to Adjusted EBITDA. Adjusted EBITDA and Adjusted EBITDA Margin for the prior periods presented have been updated to conform with current presentation.

(3) Restructuring charges represent costs incurred in connection with our restructuring plans. Costs incurred in connection with the 2024 Restructuring Plan include: (i) $3.9 million of severance and benefits related to impacted employees, (ii) $0.9 million related to the expected sublease of a portion of our corporate headquarters, and (iii) $0.1 million of professional service fees related to the execution of the 2024 Restructuring Plan. Costs incurred during the year ended December 31, 2023 relate to severance and benefits for the employees impacted by the restructuring plan initiated in Q1 2023.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

(unaudited)

Net cash provided by (used in) operating activities

$

2,233

 

 

$

3,248

 

 

$

12,505

 

 

$

(7,350

)

Capital Expenditures (1)

 

(3,062

)

 

 

(4,101

)

 

 

(14,182

)

 

 

(20,228

)

Principal payments on finance leases and lease financing obligations

 

(4,748

)

 

 

(4,632

)

 

 

(19,503

)

 

 

(19,510

)

Non-recurring professional services

 

—

 

 

 

129

 

 

 

—

 

 

 

411

 

Cash payments for workforce reduction and severance charges

 

1,049

 

 

 

12

 

 

 

1,049

 

 

 

3,491

 

Adjusted Free Cash Flow

$

(4,528

)

 

$

(5,344

)

 

$

(20,131

)

 

$

(43,186

)

Adjusted Free Cash Flow Margin

 

(13

)%

 

 

(19

)%

 

 

(16

)%

 

 

(42

)%

 

(1) Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software costs.

Stock-based Compensation

 

 

For the Three Months Ended December 31,

 

For the Years Ended

December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(unaudited)

 

(unaudited)

 

 

Cost of revenue

$

689

 

$

530

 

$

1,907

 

$

1,986

Research and development

 

3,822

 

 

2,432

 

 

11,277

 

 

9,218

Sales and marketing

 

3,013

 

 

2,185

 

 

9,505

 

 

8,801

General and administrative

 

1,609

 

 

1,360

 

 

5,939

 

 

5,172

Total stock-based compensation expense (1)

$

9,133

 

$

6,507

 

$

28,628

 

$

25,177

 

(1) Stock-based compensation expense includes restructuring charges of $2.5 million incurred during the three months and year ended December 31, 2024. Of the $2.5 million in stock-based compensation restructuring charges incurred, $0.3 million related to cost of revenue, $0.9 million related to research and development costs, $1.2 million related to sales and marketing costs, and $0.1 million related to general and administrative costs. Stock-based compensation restructuring charges of $0.1 million incurred during the year ended December 31, 2023 were related to sales and marketing and general and administrative costs.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225725352/en/

Investors Contact Mimi Kong Senior Director, Investor Relations and Corporate Development ir@backblaze.com

Press Contact Yev Pusin Sr. Director, Marketing press@backblaze.com