Backblaze, Inc. (NASDAQ:BLZE) Q3 2022 Earnings Conference Call November 9, 2022 4:30 PM ET Company Participants James Kisner - Vice President-Investor Relations & Corporate Development Gleb Budman - Chief Executive Officer & Chairperson of the Board Frank Patchel - Chief Financial Officer Conference Call Participants Ittai Kidron - Oppenheimer Erik Suppiger - JMP Securities Bruce Goldfarb - Lake Street Capital Markets Zach Cummins - B. Riley Securities Operator Good afternoon and welcome to the Backblaze Th ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, $0.0001 par value per shareBLZE The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURS ...

Backblaze, Inc. (NASDAQ:BLZE) Q2 2022 Earnings Conference Call August 9, 2022 4:30 PM ET Company Participants James Kisner - VP of IR Gleb Budman - Co-Founder, CEO and Chairperson Frank Patchel - CFO Conference Call Participants Simon Leopold - Raymond James Erik Suppiger - JMP Securities Max Michaels - Lake Street Ethan Weidel - B. Riley Securities Operator Good day and welcome to the Backblaze Second Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, $0.0001 par value per shareBLZE The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, $0.0001 par value per shareBLZE The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT ...

Backblaze, Inc. (NASDAQ:BLZE) Q1 2022 Earnings Conference Call May 5, 2022 4:30 PM ET Company Participants James Kisner – Vice President of Investor Relations Gleb Budman – Co-Founder, Chief Executive Officer & Chairperson Frank Patchel – Chief Financial Officer Conference Call Participants Ittai Kidron – Oppenheimer Erik Suppiger – JMP Securities Eric Martinuzzi – Lake Street Capital Billy Fitzsimmons – William Blair Zach Cummins – B. Riley Operator Good afternoon, ladies and gentlemen, thank you for stand ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Backblaze operates a storage cloud platform offering data storage and protection services to businesses and consumers - Backblaze provides cloud storage services to approximately 500,000 customers across 175+ countries, managing around 2 exabytes of data as of year-end 2021[22](index=22&type=chunk) - The company offers two main cloud services: **Backblaze B2 Cloud Storage**, an IaaS for data storage and application development, and **Backblaze Computer Backup**, a SaaS for automated data backup from laptops and desktops[24](index=24&type=chunk)[25](index=25&type=chunk) - The go-to-market model is primarily self-serve, driven by content marketing through its popular blog, with **over 80% of 2021 revenue from self-serve customers**[27](index=27&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) Key Service Metrics (as of Dec 31, 2021) | Metric | Value | | :--- | :--- | | **B2 Cloud Storage Revenue Growth (YoY)** | 59% | | **Computer Backup Revenue Growth (YoY)** | 13% | | **Overall Net Revenue Retention Rate** | 110% | - The company's customer base is highly diversified, with **no single customer accounting for more than 1% of revenue** in 2021 or 2020[48](index=48&type=chunk) - As of December 31, 2021, Backblaze had **270 full-time employees**, with a majority focused on software engineering and cloud operations[42](index=42&type=chunk)[64](index=64&type=chunk) [Item 1A. Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including a history of net losses, intense competition, and material weaknesses in internal controls - **Financial Performance:** The company has a history of cumulative losses, incurring a **net loss of $21.7 million in 2021**, and does not expect to be profitable in the foreseeable future due to continued investments in growth[81](index=81&type=chunk) - **Competition:** The market is intensely competitive, with major rivals including **AWS, Google Cloud Platform, and Microsoft Azure**, which have greater resources and brand recognition[84](index=84&type=chunk) - **Operational Risks:** Significant service disruptions, data loss, or cybersecurity breaches could damage the company's reputation and business, which relies on third-party data centers and a limited number of hard drive suppliers[85](index=85&type=chunk)[91](index=91&type=chunk)[156](index=156&type=chunk) - **Internal Controls:** **Material weaknesses in internal controls over financial reporting** have been identified, particularly related to accounting, revenue recognition, and IT general controls[78](index=78&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - **Corporate Structure:** A dual-class stock structure concentrates approximately **96% of voting power** with pre-IPO stockholders, limiting the influence of new investors on corporate matters[198](index=198&type=chunk) [Item 1B. Unresolved Staff Comments](index=33&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[235](index=235&type=chunk) [Item 2. Properties](index=34&type=section&id=Item%202.%20Properties) The company leases its corporate headquarters in California and data center facilities in the US and the Netherlands - The company's headquarters is a leased 22,000 sq ft office in San Mateo, CA[237](index=237&type=chunk) - Data center facilities are leased in California, Arizona, and Amsterdam, Netherlands[237](index=237&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The company is not presently a party to any material legal proceedings[238](index=238&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[239](index=239&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock began trading on Nasdaq in November 2021, and it does not anticipate paying dividends - Class A common stock listed on Nasdaq under **"BLZE"** since November 11, 2021[242](index=242&type=chunk) - The company has **never declared or paid dividends** and does not plan to in the foreseeable future[244](index=244&type=chunk) - The November 2021 IPO resulted in **net proceeds of approximately $103.0 million** after deducting underwriting discounts and commissions[247](index=247&type=chunk) [Item 6. [Reserved]](index=35&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew 25% to $67.5 million in 2021, but the net loss widened to $21.7 million due to increased operating expenses Key Financial Metrics | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Total Revenue** | $67.5M | $53.8M | | **Net Loss** | ($21.7M) | ($6.6M) | | **Gross Margin** | 51% | 52% | | **Adjusted EBITDA** | $3.2M | $11.1M | - Revenue growth was primarily driven by a **59% increase in B2 Cloud Storage revenue**, reflecting expansion from existing customers[326](index=326&type=chunk) - Operating expenses increased significantly to **$53.1 million in 2021** from $31.7 million in 2020, with R&D up 57% and Sales & Marketing up 65% due to increased headcount and advertising[331](index=331&type=chunk)[332](index=332&type=chunk)[333](index=333&type=chunk) Key Business Metrics | Key Business Metric | As of Dec 31, 2021 | As of Dec 31, 2020 | | :--- | :--- | :--- | | **Total NRR** | 110% | 114% | | **Total Gross Customer Retention** | 91% | 90% | | **Total ARR (in millions)** | $75.4 | $59.2 | | **Total Customers** | 498,933 | 466,298 | - Cash and cash equivalents increased to **$104.8 million** at the end of 2021, largely due to **$103.0 million in net proceeds** from the November 2021 IPO[347](index=347&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposures relate to interest rates and foreign currency exchange rates - **Interest Rate Risk:** Exposure is primarily from capital lease arrangements and a variable-rate credit facility, but a 100 basis point change is not expected to have a material effect[391](index=391&type=chunk)[392](index=392&type=chunk) - **Foreign Currency Exchange Rate Risk:** Risk is currently minimal as sales and most operating expenses are denominated in U.S. dollars but may increase with international expansion[393](index=393&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=55&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited financial statements for 2021 and 2020, including key balance sheet and income statement figures - The report includes the opinion of the independent registered public accounting firm, BDO USA, LLP, which states the financial statements are presented fairly in all material respects[398](index=398&type=chunk) Balance Sheet (Dec 31, 2021) | Balance Sheet (Dec 31, 2021) | Amount (in thousands) | | :--- | :--- | | **Total Assets** | $163,581 | | Total Current Assets | $111,082 | | **Total Liabilities** | $68,095 | | Total Current Liabilities | $45,062 | | **Total Stockholders' Equity** | $95,486 | Statement of Operations (Year Ended Dec 31, 2021) | Statement of Operations (Year Ended Dec 31, 2021) | Amount (in thousands) | | :--- | :--- | | **Revenue** | $67,479 | | **Gross Profit** | $34,341 | | **Loss from Operations** | ($18,794) | | **Net Loss** | ($21,704) | | **Net Loss Per Share** | ($1.07) | Cash Flows (Year Ended Dec 31, 2021) | Cash Flows (Year Ended Dec 31, 2021) | Amount (in thousands) | | :--- | :--- | | **Net cash provided by operating activities** | $3,520 | | **Net cash used in investing activities** | ($11,190) | | **Net cash provided by financing activities** | $106,606 | - In June 2021, the company received full forgiveness for its **$2.3 million Paycheck Protection Program (PPP) loan**, which was recorded as a gain on extinguishment of debt[523](index=523&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=85&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants - None[577](index=577&type=chunk) [Item 9A. Controls and Procedures](index=86&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were not effective as of year-end 2021 due to material weaknesses in internal controls - Management concluded that disclosure controls and procedures were **not effective** as of December 31, 2021, due to identified material weaknesses[579](index=579&type=chunk) - **Material weaknesses** were identified in several areas: timely review of significant accounting transactions, revenue recognition criteria, accounting for equity transactions, tax recording, and IT general controls[580](index=580&type=chunk)[581](index=581&type=chunk) - Remediation efforts are underway, including strengthening internal controls and hiring additional personnel, but these weaknesses were **not fully remediated** as of December 31, 2021[582](index=582&type=chunk)[583](index=583&type=chunk) [Item 9B. Other Information](index=87&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[588](index=588&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=87&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[589](index=589&type=chunk) Part III [Items 10-14](index=88&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for these items is incorporated by reference from the company's 2022 Proxy Statement - Information for Items 10 through 14 is incorporated by reference from the definitive Proxy Statement for the 2022 Annual Meeting of Stockholders[592](index=592&type=chunk)[593](index=593&type=chunk)[594](index=594&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=89&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed with the Form 10-K - This section includes the list of financial statements and exhibits filed with the report[601](index=601&type=chunk) - Financial statement schedules are omitted because the information is not applicable or is included elsewhere in the report[601](index=601&type=chunk) [Item 16. Form 10-K Summary](index=90&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not Applicable[607](index=607&type=chunk)

Call Start: 17:00 January 1, 0000 5:49 PM ET Backblaze Inc. (NASDAQ:BLZE) Q4 2021 Earnings Conference Call January 17, 2022, 5:00 PM ET Company Participants Gleb Budman – Co-founder, Chief Executive Officer, Chairperson Frank Patchel – Chief Financial Officer James Kisner – Vice President of Investor Relations Conference Call Participants Ittai Kidron – Oppenheimer & Company Jason Ader – William Blair Eric Martinuzzi – Lake Street Erik Suppiger – JMP Simon Leopold – Raymond James Zach Cummins – B. Riley Sec ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41026 ____________________________ ...

Call Start: 17:00 January 1, 0000 5:48 PM ET Backblaze, Inc. (NASDAQ:BLZE) Q3 2021 Earnings Conference Call December 13, 2021 17:00 ET Company Participants James Kisner - Vice President of Investor Relations Gleb Budman - Co-Founder & Chief Executive Officer Francis Patchel - Chief Financial Officer Conference Call Participants Ittai Kidron - Oppenheimer & Company Jason Ader - William Blair Simon Leopold - Raymond James Zach Cummins - B.Riley Securities Operator Thank you for standing by and welcome to the ...