Backblaze (BLZE) FY Conference Transcript

Backblaze (BLZE) FY Conference Summary Company Overview - Backblaze is a cloud storage company that provides inexpensive, high-performance cloud storage primarily for businesses [2][3] - The company competes with traditional cloud providers like Amazon, Google, and Microsoft, focusing on object storage [3][4] Core Business and Product Offerings - Backblaze started with a focus on backup but has expanded to support various use cases, including media storage and AI [3][8] - The company offers object storage, which is cost-efficient for large-scale unstructured data [4] - Backblaze's pricing is approximately 80% lower than traditional cloud providers, with free egress, allowing customers to move data easily [5][6] Recent Product Launches - The company launched "OverDrive," a high-throughput offering for large datasets, aimed at customers with intensive data transfer needs [6][8] - "Shard Stash," a patent-pending technology, enhances upload speeds by up to 30% compared to traditional providers [5][12] Customer Use Cases - Backblaze supports various high-performance workloads, including streaming video, surveillance, and analytics [8] - A notable customer example involves a company collecting vast amounts of internet data for LLMs, benefiting from Backblaze's cost efficiency and rapid data transfer capabilities [8][12] Customer Retention and Growth Metrics - Backblaze has a 90% gross customer retention rate, with an average customer staying for about a decade [25] - The company reported a 17% net revenue retention rate, indicating strong customer expansion [25][26] - The largest total contract value customer recently switched from AWS to Backblaze, highlighting competitive advantages [26][29] Go-to-Market Strategy - Backblaze has transitioned to a more direct sales approach, hiring a new chief revenue officer and expanding the sales team [32][33] - The company utilizes self-serve, direct sales, channel partnerships, and OEM strategies to reach customers [35][36] Partnerships and Industry Applications - Backblaze has formed partnerships with companies like PureNodal for GPU infrastructure, integrating their storage solutions into GPU offerings [36][37] - The company is also targeting the media and entertainment sector, providing storage solutions for media asset management and distribution [41][44] Market Conditions and Customer Behavior - Despite macroeconomic concerns, Backblaze has not seen significant impacts on self-serve customer acquisition, with thousands of new customers each quarter [46][47] - The company noted a 66% increase in AI customers and a 25-fold increase in data volume from these customers, indicating strong growth in this segment [58][59] Financial Outlook - Backblaze anticipates continued growth, with expectations for quarter-over-quarter acceleration in 2025, aiming for at least 30% growth by Q4 [62][63] - The company is focused on optimizing gross margins through operational efficiencies and extended useful life of hardware [69][71] Conclusion - Backblaze is well-positioned in the cloud storage market, leveraging competitive pricing, innovative technology, and a strong focus on customer retention and growth. The company is actively expanding its product offerings and partnerships, particularly in the AI and media sectors, while navigating macroeconomic challenges effectively.