Backblaze(US:BLZE)2024-05-09 00:49Financial 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]