This patent-pending innovation is a brand new type of service in cloud workflows, replacing cost prohibitive and complicated options that often required on-premises storage. Leading media and entertainment (M&E) production solution providers including Telestream, Glookast, and Mimir have already committed to integrating the service. "For our customers, turnaround time is essential, and Live Read promises to speed up workflows and operations for producers across the industry," said Richard Andes, VP, Product ...

Core Insights - Backblaze, Inc. has joined Internet2, enhancing its collaboration with a community focused on research and education [1][2] - The partnership aims to provide secure data storage solutions with reduced latency and cost for organizations needing data transmission via Internet2 [2][3] Company Overview - Backblaze is a leading specialized storage cloud provider, managing over three billion gigabytes of data and serving more than 500,000 customers globally [5] - The company offers B2 Cloud Storage, which is S3 compatible and significantly more affordable than competitors, priced at one-fifth the cost with three times the free egress [3] Industry Context - Internet2 is a non-profit advanced technology community that supports over 330 U.S. colleges and universities, along with various research and education networks [1][6] - The collaboration addresses challenges faced by educational institutions, such as ransomware attacks, budget constraints, and compliance issues, by providing innovative cloud solutions [3][4]

SAN MATEO, Calif., May 13, 2024 (GLOBE NEWSWIRE) -- Backblaze, Inc. (NASDAQ:BLZE), the leading specialized storage cloud, today announced participation in the following investor conference: Needham Technology, Media, & Consumer Conference, New York, NY. Gleb Budman, founder and CEO at Backblaze, is presenting on Wednesday, May 15, 2024, at 10:15 a.m. ET. The presentation will be webcast. Link to the live and archive webcast will be available on Backblaze's investor relations website at https://ir.backblaze. ...

Financial Data and Key Metrics Changes - In Q1 2024, the company reported revenue of $30 million, representing a 28% year-over-year increase compared to 20% in the same period last year [21][24] - Adjusted EBITDA was positive at $1.9 million, or 6% of revenue, a significant improvement from negative 12% a year ago [24][31] - Cash usage for the quarter was only $600,000, a dramatic improvement from $13 million in the same period last year [5][123] Business Line Data and Key Metrics Changes - B2 Cloud Storage revenue reached $14.6 million, reflecting a 47% growth year-over-year [21] - Computer Backup revenue totaled $15.3 million, showing a 14% growth [21][62] - The company achieved a net revenue retention (NRR) of 112%, with B2 cloud storage at 126% and computer backup at 101% [122] Market Data and Key Metrics Changes - The company is focusing on small to mid-market customers, which are sensitive to macroeconomic conditions [56] - The demand from larger mid-market companies is increasing, although statistical significance is harder to gauge [66][108] Company Strategy and Development Direction - The company is positioning itself for Cloud 2.0, emphasizing an open cloud ecosystem that allows customers to use their data freely across multiple platforms [6][11] - Recent innovations include event notifications, which enable automated workflows across different cloud providers, enhancing customer experience [8][10] - The company is expanding its partner network and has made significant progress in compliance and security programs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth despite macroeconomic challenges, with a focus on maintaining high customer retention rates [56][54] - The company anticipates continued revenue growth, projecting full-year revenue guidance of $126 million to $128 million [123][124] Other Important Information - The CFO announced plans to retire later in the year, with a search for a successor already underway [18][19] - The company has introduced a new S3 compatible API to improve developer experience and ease integration [99] Q&A Session Summary Question: Follow-up on egress fee comments - Management clarified that recent announcements from competitors regarding free egress do not address customer needs for data usage flexibility [34][36] Question: Update on AI-focused solutions - Management stated that they are focused on supporting customers with AI use cases, leveraging their platform for various applications [40][44] Question: Comparison of midsize company demand with SMB demand - Management noted strong interest from upper mid-market customers, indicating a shift in focus towards this segment [66][108] Question: Plans for attracting younger clients - Management acknowledged the importance of retaining customers long-term, particularly in educational sectors, where their products are well-suited [83] Question: Plans for dividends - Management indicated that there are no plans for dividends in the foreseeable future, as the focus remains on growth in the underserved market [118] Question: Opportunities in AI - Management highlighted the potential for AI-related use cases, emphasizing the need for durable and accessible data storage solutions [88][96]

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 ...