Backblaze(BLZE) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue was $33.8 million, an increase of 18% year-over-year, with B2 Cloud Storage revenue growing 22% to $17.1 million[4] - Adjusted EBITDA for Q4 2024 was $4.6 million, representing a margin of 14%, more than doubling from 6% in Q4 2023[4] - Annual recurring revenue (ARR) reached $136.7 million, a 16% increase year-over-year, with B2 Cloud Storage ARR growing 22% to $70.2 million[7] - Net loss for Q4 2024 was $14.4 million, compared to a net loss of $12.2 million in Q4 2023, while net loss per share improved to $0.30 from $0.32[4] - The net loss for the year ended December 31, 2024, was $48,531,000, an improvement from a net loss of $59,713,000 in 2023[32] - Non-GAAP net loss for the year ended December 31, 2024, was $17.534 million, improving from a non-GAAP net loss of $30.511 million in 2023[40] Customer Metrics - Gross customer retention rate was 90% in Q4 2024, slightly down from 91% in Q4 2023, with B2 Cloud Storage retention at 89%[7] - The number of customers decreased to 507,647 from 511,942 in Q4 2023, while B2 Cloud Storage customers increased to 107,616 from 97,842[7] - The net revenue retention rate (NRR) for the company is 120%, reflecting a 1% decrease from the previous quarter due to a refined customer definition[23] Cash Flow and Expenses - Adjusted free cash flow for the year ended December 31, 2024, was $(20.1) million, an improvement from $(43.2) million in 2023[4] - Adjusted Free Cash Flow for the three months ended December 31, 2024, was $(4.528) million, with an Adjusted Free Cash Flow margin of (13)%, compared to (19)% in the same period of 2023[41] - The company provided $2.233 million in net cash from operating activities for the three months ended December 31, 2024, compared to $3.248 million in 2023[41] - Operating expenses for the year ended December 31, 2024, totaled $115,632,000, compared to $107,762,000 in 2023, indicating an increase of approximately 7.3%[30] - Total stock-based compensation expense for the three months ended December 31, 2024, was $9.133 million, up from $6.507 million in 2023[42] Future Outlook - The company expects Q1 2025 revenue growth of 21-23% and full-year 2025 revenue between $144.0 million to $146.0 million[7] - The company expects to continue its restructuring efforts, which include $3.9 million in severance and benefits related to impacted employees as part of the 2024 Restructuring Plan[38] Asset Growth - The total assets of the company increased to $168,558,000 in 2024 from $131,687,000 in 2023, representing a growth of approximately 27.9%[28] - Cash and cash equivalents at the end of the period increased to $45,776,000 from $16,630,000, marking a significant increase[32] AI Business Impact - AI-related business saw a nearly 10-fold increase in data, with 3 AI companies now among the top 10 customers[6]