Q2 2024 Backblaze Inc Earnings Call Transcript
Key Points
- Backblaze Inc (BLZE) reported a 27% increase in revenue, with B2 Cloud Storage revenue growing by 43%.
- The company exceeded its Q2 guidance and raised its guidance for the full year, indicating strong business performance.
- Backblaze Inc (BLZE) launched B2 Live Read, a unique cloud service that allows customers to access files while they are still being uploaded, enhancing customer value.
- The company increased its number of large customers by 55% year-over-year, demonstrating success in moving upmarket.
- Backblaze Inc (BLZE) achieved all-time high gross margins, with adjusted gross margin at 78% and GAAP gross margin at 55%, driven by price increases and data center optimization.
- Despite strong performance, Backblaze Inc (BLZE) faces potential challenges with the transition of new sales leadership and the ramping of account executives.
- The company is moving some larger pay-as-you-go customers to committed contracts, which may involve discounts and impact short-term revenue.
- Backblaze Inc (BLZE) is not immune to broader macroeconomic headwinds, although it claims resilience due to strong product value and total cost of ownership.
- The company is experiencing a rise in accounts receivable due to its move upmarket, which could impact cash flow.
- Backblaze Inc (BLZE) is cautious about Q4 growth due to the full lapse of price increases and ongoing transitions, indicating potential for slower growth compared to earlier quarters.
Good day, and welcome to the Backblaze Second Quarter 2024 Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.
I would now like to hand the call to Mimi Kong, Investor Relations. Please go ahead, ma'am.
Thank you. Good afternoon, and welcome to Backblaze's second quarter 2024 earnings call. On the call with me today are Gleb Budman, Co-Founder, CEO and Chairperson of the Board; and Frank Patchel, Chief Financial Officer.
Today, Backblaze will discuss the financial results that were distributed earlier this afternoon. Statements on this call include forward-looking statements about our future financial results, use of our IPO proceeds, results from new features and offerings, the impact of price changes, partnerships and sales and marketing initiatives, our ability to compete effectively and manage our growth and our strategy to acquire new customers and retain and expand our business
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