In This Article:
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Revenue: $33.8 million in Q4, representing 18% year-over-year growth.
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B2 Cloud Storage Revenue: $17.1 million, 22% year-over-year growth.
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Computer Backup Revenue: $16.7 million, 13% year-over-year growth.
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Adjusted EBITDA Margin: 14% for Q4, doubling over the same period last year.
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Net Revenue Retention (NRR): 116%, up from 109% last year.
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Adjusted Gross Margin: 78% for the quarter.
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Cash and Short-term Investments: $55 million at the end of Q4.
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Cash Flow from Operations: $12.5 million for the year, a $20 million improvement over the prior year.
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Adjusted Free Cash Flow: Negative $20 million for the full year, improved by $23 million from last year.
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Annual Recurring Revenue (ARR) for B2: $70 million, a $5 million increase from Q3.
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Full Year 2025 Revenue Guidance: $144 million to $146 million.
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Q1 2025 Revenue Guidance: $34.1 million to $34.5 million.
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Adjusted EBITDA Guidance for Full Year 2025: 16% to 18%.
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Adjusted EBITDA Guidance for Q1 2025: 13% to 15%.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Backblaze Inc (NASDAQ:BLZE) reported an 18% year-over-year revenue growth, with B2 Cloud Storage growing by 22%.
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The company achieved a record sales booking quarter, surpassing the combined total of the previous three quarters.
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Backblaze Inc (NASDAQ:BLZE) successfully completed an oversubscribed secondary offering, raising $37 million in net proceeds.
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The company has made significant progress in its go-to-market transformation, with ARR win rates and sales productivity doubling year-over-year.
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Backblaze Inc (NASDAQ:BLZE) is seeing strong momentum in its AI customer segment, with a tenfold increase in data stored by AI companies.
Negative Points
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The consumer side of the computer backup business is in a long-term secular decline.
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Despite improvements, the company still reported negative adjusted free cash flows for the full year.
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Backblaze Inc (NASDAQ:BLZE) experienced a larger customer loss in Q1, impacting growth numbers.
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The company faces competition from major cloud providers like Amazon, Google, and Microsoft, as well as other storage offerings from partners.
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There is a lag in translating leading indicators from the go-to-market transformation into revenue due to the nature of the business.
Q & A Highlights
Q: On the partner front, what are the key metrics you're monitoring for the year, specifically any quantitative goals for partners in '25? A: Gleb Budman, CEO: On the partner side, we have two parts: the channel and the alliance. For the channel, we look at pipeline and sales productivity, measured as average ARR closed per person. For alliances, we focus on co-build, co-market, and co-sell strategies to solve customer problems.