On August 8, 2024, Backblaze Inc (BLZE, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Backblaze Inc provides cloud storage services, including Backblaze B2 Cloud Storage and Backblaze Computer Backup, catering to businesses and individuals primarily in the United States, with additional revenue from the United Kingdom, Canada, and other regions.
Performance and Challenges
Backblaze Inc (BLZE, Financial) reported a revenue of $31.3 million for Q2 2024, surpassing the analyst estimate of $30.79 million. This represents a 27% year-over-year (YoY) increase. The company's net loss narrowed to $10.3 million, or $0.25 per share, compared to a net loss of $14.3 million, or $0.41 per share, in Q2 2023. Despite the improvement, the company continues to face challenges in achieving profitability.
Financial Achievements
Backblaze Inc (BLZE, Financial) achieved significant milestones in Q2 2024, including a 43% YoY growth in B2 Cloud Storage revenue, reaching $15.4 million. The Computer Backup segment also saw a 15% YoY increase, contributing $15.9 million to the total revenue. Gross profit improved to $17.2 million, or 55% of revenue, up from $12.1 million, or 49% of revenue, in Q2 2023.
Key Financial Metrics
Adjusted gross profit for Q2 2024 was $24.5 million, or 78% of revenue, compared to $18.4 million, or 75% of revenue, in Q2 2023. Adjusted EBITDA was $2.7 million, or 9% of revenue, a significant improvement from $(1.8) million, or (7%) of revenue, in Q2 2023. The company's cash, short-term investments, and restricted cash totaled $28.3 million as of June 30, 2024.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $31.3 million | $24.6 million |
| Gross Profit | $17.2 million | $12.1 million |
| Net Loss | $10.3 million | $14.3 million |
| Adjusted EBITDA | $2.7 million | $(1.8) million |
Operational Highlights
Annual recurring revenue (ARR) reached $126.3 million, a 30% YoY increase. B2 Cloud Storage ARR grew by 44% YoY to $62.8 million, while Computer Backup ARR increased by 18% YoY to $63.5 million. The net revenue retention (NRR) rate improved to 114%, up from 110% in Q2 2023.
Recent Business Developments
Backblaze Inc (BLZE, Financial) launched the Backblaze B2 Live Read feature, enabling customers to use their data during the upload process, particularly beneficial for live broadcast workflows. The company also introduced Internet2 Peering, enhancing access for research and educational institutions. Additionally, Backblaze welcomed new executives, including Chief Revenue Officer Jason Wakeam and Chief Financial Officer Marc Suidan, to drive its growth strategy.
"Q2 marked another strong growth quarter for Backblaze, along with efficient execution driving continued margin expansion and momentum moving up-market," said Gleb Budman, CEO of Backblaze.
Financial Outlook
For Q3 2024, Backblaze Inc (BLZE, Financial) expects revenue between $32.4 million and $32.8 million, with an adjusted EBITDA margin between 9% and 11%. For the full year 2024, the company anticipates revenue between $126.5 million and $128.5 million, with an adjusted EBITDA margin between 9% and 11%.
Backblaze Inc (BLZE, Financial) continues to demonstrate robust revenue growth and improved financial metrics, positioning itself as a key player in the cloud storage industry. Investors and stakeholders can access the full earnings report here.
Explore the complete 8-K earnings release (here) from Backblaze Inc for further details.
