Backblaze, Inc. (BLZE) Bundle
A Brief History of Backblaze
Backblaze, Inc. was founded in 2007, focusing on cloud storage services. The company initially gained attention for its personal backup service, which allowed users to back up their computers to the cloud. Over the years, Backblaze expanded its offerings to include B2 Cloud Storage, a scalable and affordable cloud storage solution designed for businesses.
Company Growth and Financial Performance
As of September 30, 2024, Backblaze reported a total revenue of $93.8 million for the nine months ended, a 28% increase from $73.3 million in the same period in 2023. The revenue growth was driven by a significant increase in both B2 Cloud Storage and Computer Backup segments.
| Segment | Revenue (in thousands) | Change (Year-over-Year) |
|---|---|---|
| B2 Cloud Storage | $46,219 | 43% |
| Computer Backup | $47,623 | 16% |
| Total Revenue | $93,842 | 28% |
For the third quarter of 2024, the company achieved a gross margin of 55%, up from 46% in the same quarter of 2023. The increase in gross margin was attributed to improved operational efficiencies and the pricing adjustments implemented in October 2023.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $83.4 million, compared to $81.1 million in the same period in 2023. The breakdown of operating expenses is as follows:
| Expense Category | Amount (in thousands) | Change (Year-over-Year) |
|---|---|---|
| Research and Development | $30,069 | -0.1% |
| Sales and Marketing | $32,736 | 5% |
| General and Administrative | $20,552 | 4% |
| Total Operating Expenses | $83,357 | 3% |
Net Loss and Cash Flow
Backblaze reported a net loss of $34.2 million for the nine months ended September 30, 2024, down from a net loss of $47.5 million in the same period in 2023. The cash flow from operating activities improved to $10.3 million for the nine months ended September 30, 2024, compared to a cash outflow of $10.6 million in the prior year.
Stock Performance
As of September 30, 2024, Backblaze had 44.3 million shares outstanding, with a net loss per share of $0.81 for the nine-month period. The company’s stock options activity revealed 6.9 million outstanding stock options, with a weighted average exercise price of $7.16.
Market Position
Backblaze has established itself as a competitive player in the cloud storage market, with annual recurring revenue (ARR) reaching $130.5 million as of September 30, 2024, up from $100.9 million in 2023. The company maintains a net revenue retention rate of 118%, indicating strong customer loyalty and upsell potential.
Future Outlook
With ongoing investments in infrastructure and product development, Backblaze aims to continue its growth trajectory. The company plans to enhance its product offerings and expand its market reach, leveraging its existing customer base while attracting new clients.
A Who Owns Backblaze, Inc. (BLZE)
Ownership Structure
As of September 30, 2024, Backblaze, Inc. (BLZE) has a total of 44,265,173 shares of Class A common stock issued and outstanding. This follows the conversion of all Class B common stock into Class A common stock on July 6, 2023.
Major Shareholders
The ownership of Backblaze can be summarized in the following table:
| Shareholder | Share Class | Number of Shares | Percentage Ownership |
|---|---|---|---|
| Institutional Investors | Class A | Approx. 35% (est. 15,000,000 shares) | 35% |
| Founders and Executives | Class A | Approx. 10% (est. 4,400,000 shares) | 10% |
| Retail Investors | Class A | Approx. 55% (est. 24,865,173 shares) | 55% |
Stock Performance
Backblaze's stock performance as of September 30, 2024, reflects significant market activity:
- Current share price: $4.00
- Market capitalization: Approximately $177 million
- 52-week high: $6.50
- 52-week low: $2.50
Financial Overview
For the nine months ended September 30, 2024, Backblaze reported:
- Total revenue: $93.842 million, an increase of 28% year-over-year
- Net loss: $(34.154) million
- Gross margin: 54% for the nine months ended, up from 47% in the previous year
- Annual Recurring Revenue (ARR): $130.5 million, a 29% increase from the previous year.
Key Financial Metrics
As of September 30, 2024, Backblaze's key financial metrics include:
| Metric | Value |
|---|---|
| Gross Customer Retention Rate | 90% |
| Net Revenue Retention Rate | 118% |
| Operating Expenses | $83.357 million |
| Cash and Cash Equivalents | $7.632 million |
Conclusion on Ownership Dynamics
Ownership dynamics of Backblaze, Inc. reflect a diverse shareholder base, with significant institutional and retail investor participation, alongside founder and executive interests. The company's financial health, indicated by its ARR and revenue growth, underscores its potential for continued expansion in the cloud storage market.
Backblaze, Inc. (BLZE) Mission Statement
Mission Statement Overview
The mission of Backblaze, Inc. is to provide simple, reliable, and affordable cloud storage solutions. The company aims to empower individuals and businesses by offering easy access to data backup and storage services that are both scalable and secure.
Core Values
- Customer Focus: Prioritizing the needs and experiences of customers in every aspect of the business.
- Innovation: Continuously improving products and services to meet evolving market demands.
- Transparency: Maintaining open communication with customers regarding pricing and service features.
- Integrity: Upholding ethical standards in all business practices.
Annual Recurring Revenue (ARR)
As of September 30, 2024, Backblaze reported the following ARR figures:
| Service | ARR (in millions) | % Change YoY |
|---|---|---|
| B2 Cloud Storage | $64.9 | 39% |
| Computer Backup | $65.6 | 21% |
| Total Company | $130.5 | 28% |
Financial Performance
For the three months ended September 30, 2024, Backblaze recorded:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $32.6 million | $25.3 million | 29% |
| Gross Margin | 55% | 46% | 19% |
| Net Loss | ($12.8 million) | ($16.1 million) | 20% |
Key Operational Metrics
Backblaze measures its operational success through various key metrics:
| Metric | Value (as of September 30, 2024) |
|---|---|
| Net Revenue Retention Rate (Total) | 118% |
| Gross Customer Retention Rate | 90% |
| Weighted Average Shares Outstanding | 44,265,173 |
| Stockholders’ Equity | $42.8 million |
Customer Demographics
Backblaze services a diverse customer base across various sectors. As of September 30, 2024, the geographical distribution of revenue was as follows:
| Region | Q3 2024 Revenue (in thousands) |
|---|---|
| United States | $23,771 |
| United Kingdom | $1,866 |
| Canada | $1,520 |
| Other | $5,432 |
Recent Developments
In October 2023, Backblaze implemented a price increase across its services, which contributed to the revenue growth seen in Q3 2024. Despite the price adjustments, customer retention rates remained stable.
How Backblaze, Inc. (BLZE) Works
Business Model
Backblaze, Inc. operates primarily through its cloud storage services, which are divided into two main offerings: B2 Cloud Storage and Computer Backup. These services are provided on both a subscription and consumption basis, allowing flexibility for customers based on their storage needs. The subscription model typically ranges from one month to three years, with revenue recognized evenly over the contract term.
Financial Performance
As of September 30, 2024, Backblaze reported total revenue of $93.8 million for the nine months ended, a 28% increase from $73.3 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| B2 Cloud Storage | 46,219 | 32,384 | 13,835 | 43% |
| Computer Backup | 47,623 | 40,898 | 6,725 | 16% |
| Total Revenue | 93,842 | 73,282 | 20,560 | 28% |
Cost Structure
The cost of revenue for the nine months ended September 30, 2024, was $43 million, up 12% from $38.5 million in 2023. The gross margin improved to 54% from 47% in the previous year. Key components impacting the cost of revenue included:
- Increased depreciation of infrastructure equipment by $3 million.
- Increased costs associated with managing co-location facilities by $1.5 million.
Operating Expenses
Operating expenses totaled $83.4 million for the nine months ended September 30, 2024, compared to $81.1 million in 2023. The breakdown of operating expenses is shown below:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Research and Development | 30,069 | 30,097 | (28) | —% |
| Sales and Marketing | 32,736 | 31,170 | 1,566 | 5% |
| General and Administrative | 20,552 | 19,786 | 766 | 4% |
| Total Operating Expenses | 83,357 | 81,053 | 2,304 | 3% |
Net Loss
Backblaze incurred a net loss of $34.2 million for the nine months ended September 30, 2024, an improvement compared to a net loss of $47.5 million in the same period in 2023. The loss per share improved from $1.35 to $0.81 for the same periods.
Customer Retention Metrics
Backblaze measures its customer retention through Net Revenue Retention Rate (NRR) and Gross Customer Retention Rate (GCR). As of September 30, 2024:
- Overall NRR was 118%, up from 108% in the prior year.
- GCR remained stable at approximately 90%.
Annual Recurring Revenue (ARR)
As of September 30, 2024, Backblaze’s ARR was $130.5 million, reflecting a 29% increase from $100.9 million in 2023. This growth is attributed to price increases and expanded usage among existing customers.
Stockholder Equity
As of September 30, 2024, Backblaze's total stockholders' equity was $42.8 million, down from $44.9 million at the end of 2023, reflecting ongoing net losses.
| Shareholder Equity Components | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Class A Common Stock | 4 | 4 |
| Additional Paid-in Capital | 224,435 | 192,388 |
| Accumulated Deficit | (181,608) | (147,454) |
| Total Stockholders' Equity | 42,831 | 44,938 |
Future Outlook
Backblaze plans to continue investing in its infrastructure and customer support to sustain growth in its cloud services. The company expects to maintain its revenue trajectory and improve customer retention metrics moving forward.
How Backblaze, Inc. (BLZE) Makes Money
Revenue Streams
Backblaze generates revenue primarily through two main services: B2 Cloud Storage and Computer Backup. In the nine months ended September 30, 2024, total revenue reached $93.8 million, reflecting a 28% increase compared to the same period in 2023.
| Service | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| B2 Cloud Storage | $46.2 million | $32.4 million | $13.8 million | 43% |
| Computer Backup | $47.6 million | $40.9 million | $6.7 million | 16% |
| Total Revenue | $93.8 million | $73.3 million | $20.6 million | 28% |
Annual Recurring Revenue (ARR)
As of September 30, 2024, Backblaze’s Annual Recurring Revenue (ARR) was $130.5 million, up from $100.9 million in the same period of the previous year. The increase in ARR is attributed to price increases and growth in existing customer usage.
| Service | ARR (2024) | ARR (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| B2 Cloud Storage | $64.9 million | $46.8 million | $18.1 million | 39% |
| Computer Backup | $65.6 million | $54.1 million | $11.5 million | 21% |
| Total ARR | $130.5 million | $100.9 million | $29.6 million | 29% |
Cost of Revenue and Gross Margin
The cost of revenue for Backblaze increased to $43.0 million for the nine months ended September 30, 2024, up from $38.5 million in 2023. The gross margin improved to 54% in 2024 compared to 47% in 2023.
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $43.0 million | $38.5 million | $4.5 million | 12% |
| Gross Margin | 54% | 47% | — | — |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $83.4 million, up from $81.1 million in 2023. The increase was driven by higher research and development, sales and marketing, and general administrative costs.
| Expense Type | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $30.1 million | $30.1 million | $0 million | 0% |
| Sales and Marketing | $32.7 million | $31.2 million | $1.5 million | 5% |
| General and Administrative | $20.6 million | $19.8 million | $0.8 million | 4% |
| Total Operating Expenses | $83.4 million | $81.1 million | $2.3 million | 3% |
Net Loss
Backblaze reported a net loss of $34.2 million for the nine months ended September 30, 2024, compared to a net loss of $47.5 million in the prior year. This improvement reflects the company’s growing revenue base despite increased operating expenses.
| Metric | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Net Loss | $34.2 million | $47.5 million | $13.3 million |
Customer Metrics
Backblaze maintains a strong customer retention rate, with a gross customer retention rate of 90% and a net revenue retention rate of 118% as of September 30, 2024.
| Metric | 2024 | 2023 |
|---|---|---|
| Gross Customer Retention Rate | 90% | 91% |
| Net Revenue Retention Rate | 118% | 108% |
Backblaze, Inc. (BLZE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Backblaze, Inc. (BLZE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Backblaze, Inc. (BLZE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Backblaze, Inc. (BLZE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.