59% Revenue Growth in B2 Cloud Storage, 25% Revenue Growth Overall
Backblaze, Inc. (Nasdaq: BLZE), a leading storage cloud platform, today announced results for its third quarter ended September 30, 2021.
“We delivered continued strong Q3 growth overall, led by rapid 59% revenue growth in B2 Cloud Storage and consistent double-digit growth of 13% in Computer Backup,” said Gleb Budman, CEO of Backblaze. “Our successful IPO in November was an important milestone for the company and a recognition by the markets of the mid-market public cloud storage opportunity. We believe the future is being built on independent clouds, and we plan to use our IPO proceeds to help accelerate future growth in this large and fast-growing market,” continued Mr. Budman.
Third Quarter 2021 Financial Highlights:
- Revenue was $17.3 million, an increase of 25% year-over-year (YoY).
- B2 Cloud Storage revenue was $6.0 million, an increase of 59% YoY.
- Computer Backup revenue was $11.2 million, an increase of 13% YoY.
- Gross profit of $8.8 million, or 51% of revenue, compared to $6.7 million and 49% of revenue, in Q3 2020.
- Adjusted gross profit of $12.8 million, or 74% of revenue, compared to $10.0 million and 72% of revenue in Q3 2020.
- Net loss was $6.0 million compared to $1.9 million in Q3 2020.
- Net loss per share was $(0.32) compared to $(0.10) in Q3 2020.
- Adjusted EBITDA was $0.8 million, or 5% of revenue, compared to $2.8 million and 20% of revenue in Q3 2020.
- Cash and cash equivalents were $4.7 million as of September 30, 2021. This does not include net cash proceeds of $103 million from our IPO in November 2021.
Third Quarter 2021 Operational Highlights:
- Annual recurring revenue (ARR) was $70.8 million, an increase of 28% YoY.
- B2 Cloud Storage ARR was $24.6 million, an increase of 58% YoY.
- Computer Backup ARR was $46.2 million, an increase of 16% YoY.
- Net revenue retention (NRR) rate was 110% compared to 116% in Q3 2020.
- B2 Cloud Storage NRR was 129% compared to 139% in Q3 2020.
- Computer Backup NRR was 103% compared to 109% in Q3 2020.
- Gross customer retention rate was 91% compared to 90% in Q3 2020.
- B2 Cloud Storage gross customer retention rate was 92% in both Q3 2021 and Q3 2020.
- Computer Backup gross customer retention rate was 91% compared to 90% in Q3 2020.
Financial Outlook
Based on information available as of December 13, 2021, for the fourth quarter of 2021 we expect:
- Revenue between $17.7 million to $18.2 million.
- Adjusted EBITDA margin between -10% to -6%.
Conference Call Information:
Backblaze will host a conference call today, December 13, 2021, at 2 p.m. PT (5 p.m. ET) to review its financial results.
Attend the webcast here: https://edge.media-server.com/mmc/p/ds4nhqpx
Register and listen via phone here: http://www.directeventreg.com/registration/event/1851278
Phone registrants will receive dial-in information via email.
An archive of the webcast will be available shortly after its completion on the Investor Relations section of the Backblaze website at https://ir.backblaze.com.
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