Financial Performance - The company incurred net losses of $11.1 million and $17.1 million for the three months ended March 31, 2024 and 2023, respectively, with an accumulated deficit of $158.5 million as of March 31, 2024 [583]. - Adjusted gross profit for the three months ended March 31, 2024 was $22.971 million, compared to $16.955 million for the same period in 2023, reflecting an increase in adjusted gross margin from 72% to 77% [587]. - The company does not expect to be profitable for the foreseeable future due to ongoing investments in scaling its business, including sales, marketing, and data center infrastructure [583]. - The company’s gross margin improved from 47% in Q1 2023 to 53% in Q1 2024, indicating better operational efficiency [587]. Revenue Recognition - The company recognizes revenue from subscription agreements ratably over the terms of the agreements, making it difficult to rapidly increase revenue through new sales [324]. - The increase in deferred revenue by $3.2 million was attributed to the growing customer base and timing of collections [591]. Internal Controls and Compliance - The company reported that it did not maintain effective internal controls over financial reporting as of December 31, 2023, with outstanding material weaknesses identified [319]. - The company has identified material weaknesses in its internal controls over financial reporting, which could lead to misstatements in financial statements if not remediated [321]. - The company has identified material weaknesses in internal control over financial reporting and is taking measures to remediate them [600]. - The company is subject to significant legal and compliance costs as a public entity, which may impact its financial condition and operational focus [347]. Market and Competitive Landscape - The market price of the company's Class A common stock has been volatile, influenced by fluctuations in technology stock prices [310]. - The trading market for the company's Class A common stock may be influenced by analysts' reports, and any adverse changes in recommendations could lead to a decline in stock price [342]. - The company operates in a highly competitive market with major competitors like Amazon, Google, and Microsoft, which could pressure pricing and market share [584]. Tax and Legal Risks - As of December 31, 2023, the company had net operating loss carryforwards for U.S. federal income tax purposes of $91.4 million and for state income tax purposes of $66.0 million, which will begin to expire in 2027 if not utilized [326]. - The company may be subject to significant tax liabilities if states or countries assert that it should have been collecting additional sales or use taxes [325]. - The company faces potential litigation risks related to intellectual property claims, which could divert management attention and resources [305]. - The company does not own any issued patents and relies on limited protections for its intellectual property, which may not provide a competitive advantage [306]. Cash Flow and Financing - For the three months ended March 31, 2024, cash provided by operating activities was $3.4 million, resulting from a net loss of $11.1 million, adjusted for non-cash charges of $12.9 million [591]. - Cash used in investing activities during the same period was $8.8 million, primarily due to the purchase of short-term maturity investments of $14.8 million and $3.3 million for internal-use software development [592]. - Cash used in financing activities for the three months ended March 31, 2023, was $1.8 million, mainly due to principal payments on finance lease agreements totaling $5.1 million [593]. - The company plans to enter into finance lease agreements for infrastructure equipment purchases and may seek additional equity or debt financing [589]. - The company may face challenges in raising additional capital or generating necessary cash flows to support operations and innovation [589]. - As of March 31, 2024, the company has future minimum commitments for finance leases and lease financing obligations totaling approximately $15.7 million for the remainder of 2024 and $16.2 million thereafter [590]. - The weighted average discount rate for finance leases was 11.4% as of March 31, 2024 [590]. Customer Relationships and Pricing - The company anticipates continued dependence on relationships with third parties, which are crucial for its sales and marketing strategy, but faces risks from competitors potentially incentivizing these partners [314]. - The company announced price increases for its Computer Backup and B2 Cloud Storage offerings in Q3 2023, which took effect in Q4 2023, but did not experience a material impact on customer retention as of March 31, 2024 [584]. - Cash flows increased due to a growing customer base and increased storage from existing customers, offset by higher expenditures related to co-location facilities and R&D [591].

Backblaze Announces First Quarter 2024 Financial Results San Mateo, CA (May 8, 2024)—Backblaze, Inc. (Nasdaq: BLZE), a leading specialized storage cloud platform, today announced results for its first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights: 1 • Annual recurring revenue (ARR) was $122.1 million, an increase of 27% YoY. ◦ B2 Cloud Storage ARR was $59.5 million, an increase of 43% YoY. ◦ Computer Backup ARR was $62.6 million, an increase of 15% YoY. • Net revenue retention (NRR) ...

SAN MATEO, Calif., April 17, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (NASDAQ:BLZE), the leading specialized cloud storage platform, will report financial results for its first quarter ending March 31, 2024 on Wednesday, May 8, 2024 after market close. Following the release of results, Backblaze will host a conference call and webcast at 1:30 p.m. PT (4:30 p.m. ET) on May 8, 2024 to discuss the results. Attend the webcast: https://edge.media-server.com/mmc/p/5kr5u64iRegister to listen by phone: https://dpre ...

SAN MATEO, Calif., April 17, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (Nasdaq: BLZE), the leading specialized cloud storage platform, will report financial results for its first quarter ending March 31, 2024 on Wednesday, May 8, 2024 after market close. Following the release of results, Backblaze will host a conference call and webcast at 1:30 p.m. PT (4:30 p.m. ET) on May 8, 2024 to discuss the results. Attend the webcast: https://edge.media-server.com/mmc/p/5kr5u64iRegister to listen by phone: https://dpr ...

SAN MATEO, Calif., April 15, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (NASDAQ:BLZE), the leading specialized cloud storage platform, announced the launch of Event Notifications, a service that instantly notifies users and external cloud services whenever data changes in Backblaze B2 Cloud Storage. The new release gives businesses the freedom to build automated workloads across the different best-of-breed cloud platforms they use or want to use, saving time and money and improving end user experiences. With ...

SAN MATEO, Calif., April 11, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (NASDAQ:BLZE), the leading specialized storage cloud, today announced that it has joined the Trusted Partner Network (TPN), a security initiative wholly owned by the Motion Picture Association (MPA). The move demonstrates Backblaze's commitment to upholding TPN standards and content security best practices, and to serving the enterprise-grade security needs of media and entertainment companies. Content workflows are evolving at an unprece ...

SAN MATEO, Calif., April 09, 2024 (GLOBE NEWSWIRE) -- In booth SL7077 at the 2024 NAB Show, Backblaze Inc. (BLZE), the leading specialized storage cloud, will showcase a range of new features, functionality, and partnerships aimed to help media teams meet the challenges of a rapidly changing technology landscape. The Backblaze team will highlight announcements relating to automating cloud workflows, expanding media archive search functionality with AI, and advancing security standards within the industry wh ...

• require us to issue refunds or credits to our customers or expose us to claims for damages, • cause us to lose existing customers and make it more difficult to attract new customers, • divert our development resources or require us to make extensive changes to our cloud services or software, • harm our reputation and brand, and • negatively impact our results of operations. If we fail to ef ectively manage our growth, our business would be harmed. We have recently experienced, and continue to experience, ...

SAN MATEO, Calif. and RESTON, Va., March 21, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (NASDAQ:BLZE), the leading specialized storage cloud, and Carahsoft Technology Corp., The Trusted Government IT Solutions Provider®, announced today that Backblaze's product portfolio has been added to Carahsoft's National Association of State Procurement Officials (NASPO) ValuePoint contract. The contract addition enables Carahsoft and Backblaze to provide the company's cutting-edge cloud storage solutions to participatin ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...