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 ...

Part I - Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed financial statements for Q3 and nine months 2021 show revenue growth, increased net loss from operating investments, and significant post-period IPO proceeds [Condensed Balance Sheets](index=6&type=section&id=Condensed%20Balance%20Sheets) Total assets increased to **$60.4 million** and liabilities to **$72.5 million** by September 30, 2021, driven by investments and SAFE notes Condensed Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,684 | $6,076 | | Total current assets | $8,803 | $9,232 | | Property and equipment, net | $40,395 | $38,746 | | Total assets | $60,397 | $54,469 | | Total current liabilities | $40,860 | $36,374 | | Total liabilities | $72,522 | $58,525 | | Total stockholders' deficit | $(14,909) | $(6,840) | [Condensed Statements of Operations](index=7&type=section&id=Condensed%20Statements%20of%20Operations) Q3 2021 revenue grew **25%** to **$17.3 million** with net loss widening to **$6.0 million**, reflecting increased R&D and S&M investments Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $17,320 | $13,817 | $48,782 | $39,196 | | Gross Profit | $8,801 | $6,720 | $24,507 | $20,421 | | Loss from operations | $(4,666) | $(1,055) | $(11,217) | $(1,247) | | Net loss | $(5,993) | $(1,860) | $(12,099) | $(3,205) | | Net loss per share | $(0.32) | $(0.10) | $(0.64) | $(0.17) | [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow decreased to **$6.0 million**, while investing activities used **$9.9 million** and financing provided **$2.5 million** from SAFE notes Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,964 | $9,566 | | Net cash used in investing activities | $(9,889) | $(3,939) | | Net cash provided by (used in) financing activities | $2,533 | $(5,410) | | Net (decrease) increase in cash | $(1,392) | $217 | [Notes to Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Notes detail revenue growth in B2 Cloud Storage, **$2.3 million** PPP loan forgiveness, **$10.0 million** SAFE notes, and a **$103 million** IPO in November 2021 Revenue Disaggregation (in thousands) | Revenue Source | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | B2 Cloud Storage (Consumption) | $5,977 | $3,757 | $16,026 | $10,018 | | Computer Backup (Subscription) | $11,163 | $9,894 | $32,219 | $28,696 | | Total Revenue | $17,320 | $13,817 | $48,782 | $39,196 | - In June 2021, the company received full forgiveness for its **$2.3 million** Paycheck Protection Program (PPP) loan and accrued interest, which was recorded as a gain on extinguishment of debt[86](index=86&type=chunk) - In August 2021, the company issued **$10.0 million** in Simple Agreement for Future Equity (SAFE) notes, which automatically converted into Class A common stock upon the IPO[87](index=87&type=chunk) - Subsequent to the quarter end, in November 2021, the company completed its IPO, issuing 7,187,500 shares of Class A common stock and raising net proceeds of approximately **$103 million**[112](index=112&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights **24%** revenue growth, **110%** net revenue retention, **$70.8 million** ARR, increased net loss from growth investments, and **$103 million** IPO proceeds [Factors Affecting Our Performance](index=24&type=section&id=Factors%20Affecting%20Our%20Performance) Performance is driven by customer acquisition, expansion, platform investment, sales-assisted efforts, new products, and international growth - Key growth strategies include: - Scaling self-service customer acquisition through content marketing and a self-serve sign-up model - Expanding sales-assisted efforts to support larger customers and drive volume expansion - Increasing revenue from existing customers through new features, use cases, and natural data growth - Continuing platform investment and launching new adjacent products - Expanding internationally to capitalize on the **28%** of revenue already originating outside the U.S[125](index=125&type=chunk)[128](index=128&type=chunk)[132](index=132&type=chunk) [Key Business Metrics](index=25&type=section&id=Key%20Business%20Metrics) Key metrics as of Sep 30, 2021: **110%** net revenue retention, **91%** gross customer retention, and **$70.8 million** Annual Recurring Revenue Key Business Metrics as of September 30 | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net revenue retention rate | 110% | 116% | | Gross customer retention rate | 91% | 90% | | Annual recurring revenue (in millions) | $70.8 | $55.3 | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q3 2021 revenue grew **25%** to **$17.3 million**, but **73%** operating expense growth from R&D and S&M investments led to a wider operating loss - Total revenue for the nine months ended Sep 30, 2021, increased by **$9.6 million (24%)** compared to the same period in 2020, primarily due to a **$6.0 million** increase in B2 Cloud Storage revenue from new customers[167](index=167&type=chunk) - For the nine months ended Sep 30, 2021, total operating expenses increased by **$14.1 million (65%)** YoY, driven by higher personnel-related costs from increased headcount across R&D, Sales & Marketing, and G&A[177](index=177&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) Nine-month Adjusted Gross Margin was **75%**, while Adjusted EBITDA decreased to **$4.4 million** from **$9.1 million** due to increased operating investments Adjusted EBITDA Reconciliation (in thousands) | Metric | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | | Net loss | $(12,099) | $(3,205) | | Depreciation and amortization | $12,041 | $9,111 | | Stock-based compensation | $3,611 | $1,214 | | Interest expense | $2,686 | $1,946 | | Gain on extinguishment of debt | $(2,299) | — | | Adjusted EBITDA | $4,435 | $9,078 | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity as of Sep 30, 2021 was **$4.7 million** cash, significantly boosted by a **$103 million** IPO and a new **$9.5 million** credit facility - The company's principal source of liquidity as of September 30, 2021 was **$4.7 million** in cash and cash equivalents[197](index=197&type=chunk) - In November 2021, the company completed its IPO, resulting in net proceeds of approximately **$103 million** after underwriting discounts and offering expenses[197](index=197&type=chunk) - In October 2021, the company entered into a new **$9.5 million** revolving credit agreement with City National Bank, maturing in September 2024[200](index=200&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risks include interest rate fluctuations from leases and credit facilities, and minimal foreign currency risk from USD-denominated sales - Interest rate risk is primarily related to capital lease arrangements and a new variable-rate credit facility entered into in October 2021[225](index=225&type=chunk)[226](index=226&type=chunk) - Foreign currency exchange rate risk is minimal as sales are denominated in U.S. dollars; however, a stronger U.S. dollar could adversely affect international demand[227](index=227&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective as of Sep 30, 2021, due to four material weaknesses in internal controls, with remediation plans underway - Management concluded that disclosure controls and procedures were not effective as of the end of the period due to material weaknesses in internal control over financial reporting[231](index=231&type=chunk) - Four material weaknesses were identified relating to: (i) lack of timely review of significant accounting transactions, (ii) inadequate consideration of revenue recognition criteria, (iii) errors in recording equity transactions, and (iv) inaccurate recording of value-added and sales taxes[233](index=233&type=chunk) - Remediation plans include enhancing accounting policies, implementing a new ERP system, and hiring additional experienced accounting personnel, including a new CFO and Corporate Controller[234](index=234&type=chunk) Part II - Other Information [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financials - The company is not presently a party to any legal proceedings that are expected to have a material adverse effect on its business[240](index=240&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Key risks include a history of losses, intense competition, service disruptions, cybersecurity threats, material internal control weaknesses, and concentrated voting power - The company has a history of cumulative losses (**$26.7 million** accumulated deficit as of Sep 30, 2021) and does not expect to be profitable for the foreseeable future due to continued investments in growth[246](index=246&type=chunk) - The company faces intense competition from larger, more established cloud service providers like Amazon Web Services, Google Cloud Platform, and Microsoft Azure[248](index=248&type=chunk) - The company has identified four material weaknesses in its internal controls over financial reporting, which could harm the business and impact the stock's value if not remediated effectively[242](index=242&type=chunk)[328](index=328&type=chunk)[330](index=330&type=chunk) - The dual-class stock structure concentrates approximately **97%** of voting power with pre-IPO stockholders, limiting the influence of new Class A stockholders on major corporate decisions[244](index=244&type=chunk)[361](index=361&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Disclosures cover unregistered equity sales, including **$10.0 million** SAFE notes, and the use of **$103 million** net IPO proceeds for general corporate purposes - In August 2021, the company issued **$10.0 million** of convertible SAFE notes, which converted into approximately 725,000 shares of Class A common stock upon the IPO[402](index=402&type=chunk) - The company's IPO in November 2021 generated net proceeds of approximately **$103 million** after deducting underwriting discounts and commissions[406](index=406&type=chunk) [Other Items (Items 3-6)](index=65&type=section&id=Other%20Items) This section confirms no defaults on senior securities, no mine safety disclosures, no other material information, and lists report exhibits - The company reports no defaults upon senior securities, no mine safety disclosures, and no other information required to be disclosed under Item 5[408](index=408&type=chunk)[409](index=409&type=chunk)[410](index=410&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $17.3 million, representing a 25% year-over-year increase [8][27] - B2 Cloud Storage revenue grew 59% to $6 million, while Computer Backup revenue increased 13% to $11.2 million [8][27] - Annual Recurring Revenue (ARR) totaled $71 million as of Q3 2021 [8] - Adjusted EBITDA was $0.8 million, down from $2.8 million the previous year, reflecting increased expenses for pre-IPO services and investments in sales and marketing [29][30] Business Line Data and Key Metrics Changes - B2 Cloud Storage accounted for 34.5% of total revenue, continuing its upward trend [27] - Computer Backup had an ARR of $46 million, while B2 Cloud Storage had an ARR of $25 million [11][12] - Net Revenue Retention (NRR) was 110% overall, with B2 at 129% and Computer Backup at 103% [28] Market Data and Key Metrics Changes - The public cloud storage market is projected to reach $91 billion by 2025 [10] - The mid-market segment, defined as companies with fewer than 1,000 employees, represents over 60% of this market, equating to a $55 billion revenue opportunity [14] Company Strategy and Development Direction - Backblaze aims to be the leading independent cloud for data storage, focusing solely on storage without competing with customers [6][7] - The company plans to utilize over $100 million from its IPO to accelerate growth and capitalize on market opportunities [21] - The strategy includes a dual go-to-market approach with self-serve and sales-assisted motions, with over 80% of customers acquired through self-serve [17][18] Management's Comments on Operating Environment and Future Outlook - Management believes the COVID-19 pandemic has accelerated the adoption of public cloud solutions, although it may cause short-term variability in new data creation [26] - The company expects Q4 2021 revenue to be between $17.7 million and $18.2 million, indicating a full-year growth of 24% to 25% [31] - Management remains optimistic about the growth potential, driven by new customer acquisition and expansion within the existing customer base [60] Other Important Information - Backblaze executed one of the largest directed share programs in U.S. capital markets history, inviting hundreds of thousands of customers to participate in the IPO [22] - The company has established partnerships with developers and alliance partners to enhance its service offerings and market reach [18][24] Q&A Session Summary Question: Go-to-market motion and direct sales force investments - Management discussed the scaling of the sales-assisted motion and the positive impact on pipeline visibility for the B2 business [34][35] Question: AWS competition and pricing strategies - Management highlighted the complexity of AWS's pricing and the ease of use of Backblaze's offerings as a key differentiator [40][41] Question: Revenue per customer trends - Management noted that revenue per customer is increasing, driven by larger customers and cross-selling opportunities [46][47] Question: Investments in branding and marketing - The company is investing in content engagement and paid advertising to raise brand awareness following the IPO [48][49] Question: Impact of price increase on customer retention - Management reported consistent gross customer retention despite a recent price increase for Computer Backup services [61]