Backblaze(US:BLZE)2025-11-06 12:03Revenue Performance - Revenue for Q3 2025 was $37.2 million, representing a 14% year-over-year increase[3] - Revenue for Q3 2025 was $37,162,000, representing a 14.8% increase from $32,589,000 in Q3 2024[27] - B2 Cloud Storage revenue reached $20.7 million, reflecting a 28% year-over-year growth[3] - Annual recurring revenue (ARR) was $147.2 million, a 13% year-over-year increase[7] - B2 Cloud Storage ARR was $81.8 million, showing a 26% year-over-year growth[7] - The company expects Q4 2025 revenue to be between $37.3 million and $37.9 million[6] Profitability Metrics - Gross profit was $23.1 million, or 62% of revenue, up from 55% in Q3 2024[3] - Gross profit for Q3 2025 was $23,071,000, up 29.5% from $17,800,000 in Q3 2024, resulting in a gross margin of 62%[27][31] - Adjusted EBITDA was $8.4 million, or 23% of revenue, compared to 12% in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $8,387,000, compared to $3,749,000 in Q3 2024, reflecting an adjusted EBITDA margin of 23%[32] - Adjusted gross margin for Q3 2025 was 79%, up from 78% in Q3 2024[33] - Non-GAAP net income for Q3 2025 was $1,886,000, compared to a loss of $4,137,000 in Q3 2024[34] Cash Flow and Expenses - Cash flow from operations for the nine months ended September 30, 2025, was $14.2 million, compared to $10.3 million in the same period of 2024[3] - Adjusted Free Cash Flow for the nine months ended September 30, 2025 was $(9,485,000), an improvement from $(15,603,000) in the same period of 2024[35] - Adjusted Free Cash Flow Margin for the nine months ended September 30, 2025 was -9%, an improvement from -17% in the same period of 2024[35] - Operating expenses for Q3 2025 totaled $26,392,000, down from $29,998,000 in Q3 2024[27] - Adjusted operating expenses for Q3 2025 totaled $20,972,000, slightly lower than $21,720,000 in Q3 2024[33] - Total stock-based compensation expense for Q3 2025 was $5,445,000, down from $8,438,000 in Q3 2024[36] Balance Sheet and Equity - Total assets increased to $191,530,000 as of September 30, 2025, up from $168,558,000 as of December 31, 2024[26] - Cash and cash equivalents decreased to $29,077,000 from $45,776,000 at the end of 2024[29] - The company reported a total stockholders' equity of $82,829,000 as of September 30, 2025, up from $77,622,000 at the end of 2024[26] - The weighted average common shares outstanding for Q3 2025 was 56,977,764, compared to 43,515,110 in Q3 2024[27] Losses and Improvements - Net loss for the nine months ended September 30, 2025, was $20,199,000, an improvement from a net loss of $34,154,000 for the same period in 2024[29][32] - The company reported a net loss of $3,778,000 for Q3 2025, an improvement from a loss of $12,753,000 in Q3 2024[34] - Net revenue retention rate (NRR) was 106%, down from 118% in Q3 2024[7] Research and Development - Research and development expenses increased to $11,235,000 in Q3 2025, compared to $10,734,000 in Q3 2024[27] - Research and development expenses for Q3 2025 were $11,235,000, compared to $10,734,000 in Q3 2024[33] Future Projections - Adjusted EBITDA margin for full-year 2025 is projected to be between 18% and 20%, raised from 17% to 19%[6]