Operations, & Cloud Strategies Conference 2025SAN MATEO, Calif.--([BUSINESS WIRE])--Insert after "Meet with Backblaze at Gartner IOCS" paragraph of release issued Dec. 2, 2025, at 1:01 p.m. PT/4:01 p.m. ET: About the Gartner IT Infrastructure, Operations & Cloud Strategies Conference: Gartner analysts will provide additional analysis on cloud strategies and infrastructure and operations trends at the Gartner IT Infrastructure, Operations & Cloud Strategies Conferences 2025 taking place December 9-11, 2025, ...

SAN MATEO, Calif.--(BUSINESS WIRE)---- $blze #AwardFinalist--Backblaze, Inc. (Nasdaq: BLZE), the high-performance cloud storage platform for the AI era, today announced that it has been named a finalist in the Most Innovative Data Storage Solution of SiliconANGLE Media's 2026 Tech Innovation CUBEd Awards. B2 Overdrive redefines cloud object storage by eliminating the traditional trade-off between cost and performance. With the best price-to-performance value in the industry, it delivers up to 1Tbps of susta ...

Core Insights - The Gartner IT Infrastructure, Operations & Cloud Strategies Conference 2025 will take place from December 9-11, 2025, in Las Vegas, focusing on cloud strategies and infrastructure trends [1] Company and Industry Summary - Gartner analysts will provide additional analysis on cloud strategies and infrastructure and operations trends during the conference [1]

SAN MATEO, Calif.--(BUSINESS WIRE)--Backblaze, Inc. (Nasdaq: BLZE), the high-performance cloud storage platform for the AI era, today announced that Laquie TN Campbell, Senior Product Marketing Manager for Media and Entertainment, will be featured on a panel discussion at the 2025 Sports Video Group (SVG) Summit, taking place December 15–16 in New York, New York. Attendees can visit booth #308 to discuss their storage needs and media workflows. Backblaze experts will be available throughout the conference f ...

Group 1 - Backblaze, Inc. (NASDAQ:BLZE) is recognized as a small-cap tech stock with a focus on cloud storage solutions, particularly B2 object storage and Computer Backup [1][3] - On November 6, 2025, Needham maintained a Buy rating on Backblaze but reduced its 12-month price target to $8, with no additional commentary provided [1][2] - In Q3 2025, Backblaze reported a 28% increase in B2 Cloud Storage revenue, reaching $20.7 million, while Computer Backup revenue remained flat [2] Group 2 - The company's gross margin improved to 62% from 55%, and adjusted EBITDA margin approached 23%, indicating operational efficiency [2] - Annual Recurring Revenue (ARR) increased by 13% to $147.2 million, driven by B2 revenue of $81.8 million [2] - A cautionary note was raised as Net Revenue Retention (NRR) decreased to 106% from 118%, suggesting a slowdown in upselling compared to the previous year [2]

Core Insights - Backblaze released its Q3 2025 Drive Stats report, analyzing the performance and reliability of over 328,000 hard drives, highlighting a quarterly failure rate increase from 1.36% in Q2 to 1.55% in Q3, with an annualized failure rate (AFR) of 1.57% for 2024 [2][3] Drive Performance and Reliability - Four hard drive models achieved zero failures this quarter: Seagate HMS5C4040BLE640 (4TB), Seagate ST8000NM000A (8TB), Toshiba MG09ACA16TE (16TB), and Toshiba MG11ACA24TE (24TB) [2] - High-capacity drives (20TB+) increased by nearly 8,000 units, now representing 21% of the active drive pool, while the lifetime AFR remained steady at 1.31% [3] Failure Analysis Methodology - Backblaze employs SMART monitoring, drive monitoring tools, and automated data enrichment to differentiate between true mechanical failures and temporary removals, classifying a drive as failed if it does not re-enter the active population by the end of the quarter [4] - The outlier Toshiba MG08ACA16TE (16TB) recorded a high AFR of 16.95%, attributed to ongoing upgrades requiring temporary drive removals rather than mechanical issues, with expectations for normalization in future reports [5] Data Transparency and Community Engagement - Backblaze has built one of the largest collections of drive reliability data over more than ten years, inviting global IT and data science communities to analyze and learn from its openly available reliability metrics [2][6]

Core Insights - Backblaze, Inc. has released its latest Network Stats Report, highlighting the impact of AI workloads on global data flows and the introduction of a new metric to measure this phenomenon [1] Company Overview - Backblaze is positioned as a high-performance cloud storage platform tailored for the AI era, indicating a strategic focus on supporting AI-driven applications and workloads [1] Industry Trends - The report emphasizes the unprecedented rise of AI-driven data gravity, suggesting a significant shift in how digital infrastructure is being shaped in the context of generative AI [1]

Core Insights - Backblaze, Inc. reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and showing improvement from a loss of $0.10 per share a year ago, resulting in an earnings surprise of +400.00% [1] - The company achieved revenues of $37.16 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.58% and increasing from $32.59 million year-over-year [2] - Backblaze shares have increased approximately 55.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of Backblaze's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $38.38 million, while for the current fiscal year, the estimate is -$0.03 on revenues of $146.26 million [7] Industry Context - The Internet - Software industry, to which Backblaze belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Company revenue grew 14% year over year, reaching $37.2 million, exceeding the high end of guidance of $37.1 million [13] - Adjusted EBITDA margin reached 23%, almost double the 12% from a year ago [18] - GAAP net loss improved to $3.8 million, a 70% improvement from a loss of $12.8 million in the prior year [17] - Adjusted free cash flow was negative $3.5 million, improving by roughly $500,000 year over year [18] Business Line Data and Key Metrics Changes - B2 Cloud Storage revenue grew 28% year over year, compared to organic growth of 19% in the same period last year [13] - Computer Backup revenue was flat year over year, reflecting the final rolloff of the price increase implemented in 2023 [14] - Net revenue retention (NRR) for B2 improved to 116% in Q3 from 109% in Q2 [15] Market Data and Key Metrics Changes - The company is seeing diversification within B2 across core use cases, including live application hot storage, backup, media, and AI-related workloads [14] - Industry-wide demand for data storage is expected to grow rapidly, positioning the company well to support expanding needs [14] Company Strategy and Development Direction - The company is launching phase two of its go-to-market transformation to accelerate sales velocity and improve efficiency [12] - Focus on moving upmarket with larger deals while also increasing the core base of smaller deals for consistency [26] - The company aims to achieve a rule of 40 profile, with a current score of 9 expected to triple by Q4 [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges variability in data usage from large AI customers, impacting growth expectations [26][30] - The company remains confident in its ability to deliver consistent, durable growth over time despite not reaching the 30% B2 growth goal [20] - Management emphasizes the importance of AI workloads and the company's positioning to support these transformative needs [72] Other Important Information - The company ended the quarter with $50 million in cash and marketable securities, largely unchanged from the previous quarter [18] - A modest share repurchase program was initiated, with $1.2 million of shares repurchased in Q3 [19] Q&A Session Summary Question: Sales evolution in phase two - Management discussed the focus on driving execution velocity and moving upmarket while supporting larger deals [25] Question: B2 growth expectations - Management noted that variability from a large AI customer and longer execution times for larger deals impacted growth expectations [26] Question: Data variability from customers - Management explained that AI use cases are evolving rapidly, leading to fluctuations in data storage needs [30] Question: Long-term growth expectations for B2 and CBU - Management indicated that B2 is on track for mid-20s growth in 2025, while Computer Backup is expected to contract in low to mid-single digits [35] Question: Phase two initiative investments - Management clarified that sales and marketing expenses should remain stable as a percentage of revenue, with restructuring costs being one-time charges [52] Question: Larger deals in the pipeline - Management noted that larger deals are more complex and can take longer to close due to various internal factors [57] Question: Improvements in self-serve motion - Management highlighted efforts to enhance the self-serve experience for data-heavy AI use cases [59] Question: Powered By white-label solution - Management expressed excitement about the Powered By initiative and its potential in the Neo Cloud market [67] Question: Uptick in AI video companies - Management confirmed an increase in customers from the AI video sector, reflecting the growing data needs associated with video generation [72]

Financial Performance - Backblaze reported Q3 revenue of $37.2 million, a 14% year-over-year increase, exceeding market expectations [1] - Non-GAAP EPS was $0.03, surpassing market expectations, compared to a loss of $0.10 per share in the same period last year [1] - Adjusted gross profit for Q3 was $29.4 million, representing 79% of revenue, up from $25.5 million or 78% of revenue in the previous year [2] Business Segments - B2 cloud storage revenue reached $20.7 million, a 28% year-over-year growth, while computer backup revenue remained flat at $16.5 million [1] - The company secured a seven-figure expansion deal with an existing customer, highlighting the value of its offerings in the AI and data-intensive workflow space [2] Profitability and Cash Flow - Adjusted EBITDA for Q3 was $8.4 million, accounting for 23% of revenue, compared to $3.7 million or 12% of revenue in the previous year [2] - The company achieved a significant milestone in profitability, with non-GAAP net profit of $1.9 million, compared to a net loss of $4.1 million in the same quarter last year [2][3] - Cash and cash equivalents totaled $50.3 million as of September 30, 2025 [2] Future Outlook - For Q4, the company expects revenue between $37.3 million and $37.9 million, with adjusted EBITDA margin between 20% and 22% [3] - Full-year revenue guidance for 2025 is narrowed to between $145.4 million and $146.0 million, with adjusted EBITDA margin expectations raised to between 18% and 20% [3]