Backblaze: Fiscal 3Q22 Financial Results

Backblaze, Inc. announced results for its third quarter ended September 30, 2022.

“As highlighted in our October 24, 2022 preliminary results, we had a strong 3FQ22. We had 48% revenue growth in B2 Cloud Storage, and total company revenue grew 27%,” said Gleb Budman, Backblaze. “We also made significant progress in our channel program, including the launch of our channel partner portal and signing of several new national resellers. We are pleased to continue to scale in an uneven macro-economic environment.”

3FQ22 Financial Highlights:

•  Revenue of $22.1 million, an increase of 27% Y/Y.
  • B2 Cloud Storage revenue was $8.8 million, an increase of 48% Y/Y.
  • Computer Backup revenue was $13.1 million, an increase of 17% Y/Y.
• Gross profit of $11.2 million, or 51% of revenue, compared to $8.8 million and 51% of revenue, in 3FQ21.
• Adjusted gross profit of $16.7 million, or 76% of revenue, compared to $12.8 million and 74% of revenue in 3FQ21.
• Net loss of $(12.8) million compared to a net loss of $(6.0) million in 3FQ21.
• Net loss per share of $(0.40) compared to a net loss per share of $(0.32) in 3FQ21.
• Adjusted EBITDA of $(1.9) million, or (8)% of revenue, compared to $0.8 million and 5% of revenue in 3FQ21.
• Non-GAAP net loss of $(8.0) million compared to non-GAAP net loss of $(4.2) million in 3FQ21.
• Non-GAAP net loss per share of $(0.25) compared to a non-GAAP net loss per share of $(0.22) in 3FQ21.
• Cash, short-term investments and restricted cash, non-current totaled $80.0 million as of September 30, 2022.

3FQ22 Operational Highlights:

• Annual recurring revenue (ARR) was $88.0 million, an increase of 24% Y/Y.
  • B2 Cloud Storage ARR was $35.7 million, an increase of 45% Y/Y.
  • Computer Backup ARR was $52.3 million, an increase of 13% Y/Y.
• Net revenue retention (NRR) rate was 114% compared to 110% in 3FQ21 B2 Cloud Storage NRR was 123% compared to 131% in 3FQ21.
  • Computer Backup NRR was 108% compared to 101% in 3FQ21.
• Gross customer retention rate was 91% in 3FQ22 and 3FQ21.
  • B2 Cloud Storage gross customer retention rate was 90% compared to 89% in 3FQ21.
  • Computer Backup gross customer retention rate was 90% compared to 91% in 3FQ21.

Financial Outlook for 4FQ22:
• Revenue between $22.5 million to $22.9 million.
• Adjusted EBITDA margin between (14)% to (10)%.
• Basic weighted average shares outstanding of 32.5 million to 34.5 million shares.

For FY22:
• Revenue between $84.7 million to $85.1 million (vs. prior guidance of $83 million to $86 million).
• Adjusted EBITDA margin between (12)% to (11)% (vs. prior guidance of (17)% to (13)%).