Financial Data and Key Metrics Changes - Company revenue grew 15% year-over-year, reaching $34.6 million in Q1 2025 [24][8] - Adjusted EBITDA margin tripled to 18% compared to 6% in the prior year [31][24] - Adjusted free cash flow margin improved from negative 17% to negative 6% year-over-year [33][31] Business Line Data and Key Metrics Changes - B2 cloud storage revenue growth accelerated to 23% year-over-year, up from 22% in the previous quarter [24][8] - Computer backup business grew 8% from the prior year, primarily driven by a price increase [25][24] - Net revenue retention (NRR) for B2 segment was 117%, down from 126% due to the lapping of a price increase [25][24] Market Data and Key Metrics Changes - AI customer base grew by 66%, with data usage increasing by 25 times [13][8] - Gross customer retention remained strong at approximately 90% across both B2 and Computer Backup segments [25][24] Company Strategy and Development Direction - The company is focused on a go-to-market transformation emphasizing upscaling, partnerships, and sales plays [15][20] - New product offering, B2 Cloud Storage OverDrive, aims to optimize performance for large datasets and high-performance throughput [14][8] - Partnerships with high-performance compute providers and media companies are being established to support AI workloads and modern workflows [18][20] Management's Comments on Operating Environment and Future Outlook - Management noted that some customers are taking longer to make decisions due to macroeconomic factors, but self-serve business continues to grow [86][8] - The company remains confident in achieving 30% B2 growth and positive adjusted free cash flow by Q4 2025 [36][88] - Management highlighted the importance of accurate information in combating market manipulation schemes [12][11] Other Important Information - The company has successfully resolved SOX material weaknesses and appointed Deloitte as new auditors [34][35] - Anticipated Q2 2025 revenues are projected to be between $35.2 million and $35.6 million, reflecting B2 revenue growth of 23% to 25% [35][36] Q&A Session Summary Question: Can you elaborate on the AI side and its impact on the pipeline? - Management expressed excitement about AI opportunities, noting it was the fastest-growing part of the business in Q1 [40][39] Question: What progress has been made in the B2 sales build? - Management confirmed that organic growth has accelerated and sales bookings have more than doubled [43][42] Question: What should be assumed for dilution in the next year or two? - Management indicated that reducing dilution is a priority, but specific projections are not yet available [46][45] Question: Can you discuss the negotiation process for the record TCV deal? - Management explained that the deal involved displacing AWS and was a result of the customer’s growing familiarity with Backblaze's platform [55][54] Question: What are the dynamics around demand generation? - Management noted that changes in their marketing strategy have led to increased outbound efforts, which are expected to ramp up in Q2 [61][60] Question: How has the competitive landscape changed since the IPO? - Management stated that while the market remains competitive, Backblaze continues to win customers from larger players and is seeing strong win rates [92][91]

Financial Data and Key Metrics Changes - Company revenue grew 15% year-over-year, reaching $34.6 million in Q1 2025 [21][22] - Adjusted EBITDA margin tripled to 18% compared to 6% in the prior year [29] - Adjusted free cash flow margin improved from negative 17% to negative 6% year-over-year [31] Business Line Data and Key Metrics Changes - B2 cloud storage revenue growth accelerated to 23% year-over-year, up from 22% in the previous quarter [22] - Computer backup business grew 8% year-over-year, primarily driven by a price increase [23] - Net revenue retention (NRR) for B2 segment was 117%, down from 126% due to the lapping of a price increase [23] Market Data and Key Metrics Changes - AI customer base grew by 66%, with their data increasing by 25 times [11] - Gross customer retention remained strong at approximately 90% across both B2 and Computer Backup segments [24] Company Strategy and Development Direction - The company is focused on a go-to-market transformation emphasizing upscaling, partnerships, and sales plays [13] - New product offering, B2 Cloud Storage OverDrive, aims to optimize performance for large datasets and high-performance throughput [12] - Partnerships with high-performance compute providers and media companies are being established to support AI workloads and modern workflows [15] Management's Comments on Operating Environment and Future Outlook - Management noted that some customers are taking longer to make decisions due to macroeconomic factors, but self-serve business continues to grow [82] - The company remains confident in achieving 30% B2 growth and positive adjusted free cash flow by Q4 2025 [84][86] Other Important Information - The company has successfully remediated SOX material weaknesses and appointed new auditors [32] - Anticipated Q2 2025 revenues are projected to be between $35.2 million and $35.6 million, with B2 revenue growth expected between 23% and 25% [33] Q&A Session Summary Question: Can you elaborate on the AI side and its impact on revenue? - Management expressed excitement about AI being the fastest-growing part of the business, with significant momentum and various use cases [38][40] Question: What progress has been made in the B2 sales build? - Management confirmed that organic growth has accelerated and sales bookings have more than doubled, but there is still work to be done in partner and demand generation [41] Question: What should be assumed for dilution in the next year or two? - Management indicated that reducing dilution is a priority, but specific projections are not yet available [44] Question: Can you discuss the record contract signed and the negotiation process? - The contract involved displacing AWS, and the customer was impressed with Backblaze's performance and customer service [50][52] Question: What are the dynamics around demand generation and lead flow? - Management noted that restructuring has led to increased outbound efforts, and they are seeing solid momentum in demand generation [58] Question: How has the competitive landscape changed since the IPO? - Management stated that while the market remains competitive with major players, there are still significant opportunities for growth and customer acquisition [90][92]

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 March 31, 2025 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 ________________________________ ...

Revenue Growth - Revenue for Q1 2025 was $34.6 million, representing a 15% year-over-year growth[3] - B2 Cloud Storage revenue reached $18.0 million, an increase of 23% year-over-year[3] - Annual recurring revenue (ARR) was $140.8 million, up 15% year-over-year, with B2 Cloud Storage ARR at $73.8 million, a 24% increase[8] - For Q2 2025, the company expects revenue growth of 21-23%[7] - Revenue for Q1 2025 was $34,613, an increase of 15% from $29,968 in Q1 2024[31] Profitability and Loss - Net loss for Q1 2025 was $9.3 million, improved from a net loss of $11.1 million in Q1 2024[3] - Adjusted EBITDA for Q1 2025 was $6.4 million, or 18% of revenue, compared to $1.9 million or 6% of revenue in Q1 2024[3] - Non-GAAP net loss for Q1 2025 was $1,816,000, an improvement from a loss of $5,542,000 in Q1 2024, representing a 67.2% reduction[39] - Non-GAAP net loss per share decreased to $0.03 in Q1 2025 from $0.14 in Q1 2024, indicating a significant improvement in per-share performance[39] - Adjusted Free Cash Flow for Q1 2025 was $(2,111,000), compared to $(5,132,000) in Q1 2024, reflecting a 58.8% improvement[40] - Adjusted Free Cash Flow Margin improved to -6% in Q1 2025 from -17% in Q1 2024, indicating better cash flow management[40] Customer Metrics - The net revenue retention rate (NRR) was 113%, compared to 112% in Q1 2024[8] - Gross customer retention rate reflects the company's ability to retain customers, calculated as a trailing four-quarter average[25] - In Q4 2023, the number of customers was refined to include end-user customers purchasing through resellers, resulting in a 1% decrease in the 120% NRR metric reported for Q3 2023[26] Cash and Assets - Cash and marketable securities totaled $53.2 million as of March 31, 2025[3] - Cash and cash equivalents at the end of Q1 2025 were $40,606, down from $45,776 at the beginning of the period[33] - Total assets as of March 31, 2025, were $170,164, compared to $168,558 as of December 31, 2024[30] Stock-Based Compensation - Total stock-based compensation expense increased to $7,359,000 in Q1 2025 from $5,529,000 in Q1 2024, a rise of 33.1%[41] - Research and development stock-based compensation rose to $3,467,000 in Q1 2025, up from $2,108,000 in Q1 2024, marking a 64.4% increase[41] Shareholder Metrics - The weighted average common shares outstanding increased to 54,060,249 in Q1 2025 from 40,225,239 in Q1 2024, reflecting a 34.4% increase in shares[39] Operating Activities - Net cash provided by operating activities for Q1 2025 was $4,943,000, compared to $3,416,000 in Q1 2024, showing a 44.8% increase[40] - Capital expenditures decreased to $2,626,000 in Q1 2025 from $3,746,000 in Q1 2024, a reduction of 29.9%[40] New Initiatives - The company signed its largest contractual commitment, a multi-million dollar contract over a multi-year period[2] - B2 Cloud Storage Overdrive was launched, optimized for AI customer demands[3]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Backblaze, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation and Allegations - The investigation is prompted by a report from Morpheus Research, which accused Backblaze of financial missteps and questionable accounting practices since its IPO in November 2021 [3]. - Following the release of the Morpheus Research report, Backblaze's stock experienced a decline of 2.1% on April 24, 2025 [3]. Group 2: Class Action Details - Shareholders who purchased Backblaze securities may be entitled to compensation through a class action lawsuit, with no out-of-pocket fees due to a contingency fee arrangement [2]. - Interested investors can join the class action by submitting a form or contacting the Rosen Law Firm directly [2]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company and consistently ranking among the top firms for securities class action settlements since 2013 [4]. - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering significant amounts for its clients [4].

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Backblaze, Inc. (“Backblaze” or the “Company”) (NASDAQ: BLZE). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Backblaze and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On April 24, 2 ...

Core Viewpoint - Backblaze, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices following a negative report from Morpheus Research that highlighted financial missteps and questionable accounting practices [1][2]. Group 1: Investigation and Legal Actions - Bragar Eagel & Squire, P.C. is investigating potential claims against Backblaze on behalf of its stockholders [1]. - The investigation is focused on whether Backblaze has engaged in unlawful business practices and violated federal securities laws [1]. - Stockholders who have suffered losses or have information regarding these claims are encouraged to contact the law firm [3]. Group 2: Financial Performance and Market Reaction - Backblaze's stock experienced a significant decline following the release of a critical report from Morpheus Research, which detailed alleged financial missteps since the company's IPO in November 2021 [2]. - The report accused Backblaze of questionable accounting practices, including financial manipulations and inflated forecasts [2]. - The stock price dropped during intraday trading on April 24, 2025, in response to the report [2].

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices by Backblaze, Inc. following a critical report from Morpheus Research that accused the company of failing to disclose key metrics and improper financial practices [1][2]. Group 1: Investigation and Allegations - Pomerantz LLP is representing investors of Backblaze, Inc. in an investigation regarding possible securities fraud and misconduct by the company's officers and directors [1]. - Morpheus Research published a report on April 24, 2025, alleging that Backblaze did not consistently disclose important financial metrics and engaged in improper capitalization of expenses [2]. - The report characterized Backblaze's leadership as lacking transparency and suggested that they may have taken aggressive and potentially illegal actions to create a misleading financial performance [2]. Group 2: Market Impact - Following the release of the Morpheus report, Backblaze's stock price experienced a significant decline during intraday trading, negatively impacting investors [2].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Backblaze, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation and Allegations - The investigation is prompted by a report from Morpheus Research, which accused Backblaze of financial missteps and questionable accounting practices since its IPO in November 2021 [3]. - Following the release of the Morpheus Research report, Backblaze's stock experienced a decline of 2.1% on April 24, 2025 [3]. Group 2: Class Action Information - Shareholders who purchased Backblaze securities may be entitled to compensation through a class action lawsuit, with no out-of-pocket fees due to a contingency fee arrangement [2]. - Interested investors can join the class action by submitting a form or contacting the Rosen Law Firm directly [2]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time [4]. - The firm has consistently ranked among the top firms for securities class action settlements and has recovered hundreds of millions of dollars for investors [4].

Core Viewpoint - The Schall Law Firm is investigating Backblaze, Inc. for potential violations of securities laws following a significant drop in its stock price due to a negative report from Morpheus Research [1][2]. Group 1: Investigation Details - The investigation centers on whether Backblaze made false or misleading statements and failed to disclose important information to investors [2]. - The company's stock experienced a sharp decline attributed to a critical report from Morpheus Research, which highlighted alleged financial missteps and questionable practices since its IPO in November 2021 [2]. Group 2: Allegations from the Report - The Morpheus Research report claims that Backblaze engaged in questionable accounting practices, including financial manipulations and inflated forecasts to meet audit thresholds [2].