Mission Statement, Vision, & Core Values (2024) of Backblaze, Inc. (BLZE)

An Overview of Backblaze, Inc. (BLZE)

General Summary of Backblaze, Inc.

Backblaze, Inc. (NASDAQ: BLZE) was founded in 2007 and is headquartered in San Mateo, California. The company specializes in cloud storage and data backup services. Backblaze's primary offerings include B2 Cloud Storage and Computer Backup solutions, which cater to both individual consumers and businesses. As of 2024, Backblaze has established itself as a significant player in the cloud storage industry, primarily due to its competitive pricing and user-friendly services.

As of 2024, Backblaze reported annual recurring revenue (ARR) of $130.5 million, up from $100.9 million in 2023, representing a growth of 29% year-over-year. The company has also seen significant increases in its customer base and storage utilization, with a gross customer retention rate of 90% as of September 30, 2024.

Company's Financial Performance in the Latest Financial Reports

Backblaze's financial performance for the nine months ending September 30, 2024, showcased record-breaking revenue. Total revenue reached $93.8 million, a 28% increase compared to $73.3 million during the same period in 2023. The breakdown of revenue is as follows:

The company reported a gross margin of 54% for the nine months ended September 30, 2024, an increase from 47% in the same period of 2023. This growth is attributed to revenue increases driven by a price hike implemented in October 2023, alongside improved operational efficiencies.

Operating expenses totaled $83.4 million for the nine months ended September 30, 2024, resulting in a loss from operations of $32.5 million. The breakdown of operating expenses includes:

Introduction to Backblaze as an Industry Leader

Backblaze has established itself as one of the leading companies in the cloud storage and data backup industry. With a focus on affordability and ease of use, the company has attracted a diverse customer base ranging from individuals to large enterprises. The significant growth in annual recurring revenue and the high retention rates indicate that Backblaze successfully meets the needs of its users while maintaining a competitive edge in the market.

As of September 30, 2024, Backblaze's net revenue retention rate stood at 118%, reflecting its ability to not only retain customers but also expand revenue from existing accounts. This performance, coupled with its innovative service offerings, positions Backblaze for continued success in the evolving landscape of cloud services.

Mission Statement of Backblaze, Inc. (BLZE)

Mission Statement of Backblaze, Inc. (BLZE)

The mission statement of Backblaze, Inc. (BLZE) serves as a guiding principle for the company's long-term goals, reflecting its commitment to providing reliable and affordable cloud storage solutions. This mission emphasizes the importance of customer-centric innovation and operational excellence in the cloud storage industry.

Core Component 1: Customer-Centric Innovation

Backblaze's mission underscores the significance of meeting customer needs through innovative solutions. As of September 30, 2024, Backblaze reported an annual recurring revenue (ARR) of $130.5 million, marking a 28% increase year-over-year. The company's focus on enhancing the user experience is evident in its high net revenue retention rate (NRR) of 118%, indicating strong revenue growth from existing customers due to the introduction of new features and services.

Core Component 2: Operational Excellence

Operational excellence is a key focus for Backblaze, which aims to deliver high-quality services while maintaining cost efficiency. In the three months ended September 30, 2024, the company achieved a gross margin of 55%, up from 46% in the same period in 2023. This improvement reflects effective cost management strategies and the impact of recent price increases across its services, which have helped to offset operational costs while boosting profitability.

Core Component 3: Commitment to Affordability

Backblaze's mission highlights its dedication to providing affordable cloud storage solutions. The company’s B2 Cloud Storage service has seen significant growth, with revenue increasing by 39% to $16.2 million for the three months ended September 30, 2024. This growth is attributed to both an increase in storage usage and strategic price adjustments, ensuring that customers receive value without compromising on quality.

Vision Statement of Backblaze, Inc. (BLZE)

Vision Statement Overview

The vision statement of Backblaze, Inc. (BLZE) as of 2024 is centered around providing accessible and reliable cloud storage solutions that empower individuals and businesses to manage their data efficiently. The company aims to be the leading choice for cloud storage by emphasizing simplicity, affordability, and customer-centric service.

Accessibility and Affordability

Backblaze is committed to ensuring that cloud storage is accessible to all users, regardless of their technical expertise or financial capability. This commitment is reflected in its pricing strategy, which has been adjusted to enhance affordability. As of September 30, 2024, the annual recurring revenue (ARR) for Backblaze's B2 Cloud Storage increased by $18.1 million, or 39%, compared to the previous year, highlighting the effectiveness of their pricing approach

Customer-Centric Solutions

Backblaze emphasizes a customer-first approach in its vision. The company actively seeks to enhance the customer experience by regularly updating its services based on user feedback. As of September 30, 2024, Backblaze's net revenue retention rate (NRR) improved to 118%, up from 108% in the previous year, indicating strong customer satisfaction and loyalty.

Innovative Technology and Infrastructure

To support its vision, Backblaze continues to invest in innovative technology and infrastructure. The company reported capital expenditures of $0.9 million in the nine months ended September 30, 2024, focusing on enhancing its existing systems and developing new features. Additionally, Backblaze's investment in internal-use software amounted to $10.2 million, which is essential for maintaining a competitive edge.

Global Reach and Expansion

Backblaze is expanding its services internationally, with 27% of its total revenue for the nine months ended September 30, 2024, originating from outside the United States. This expansion reflects the company’s vision to become a global leader in cloud storage solutions, catering to diverse markets.

Core Values of Backblaze, Inc. (BLZE)

Core Value: Customer Focus

At Backblaze, Inc., customer focus is paramount. This core value emphasizes the importance of understanding and meeting customer needs, which drives the company's growth and innovation.

As of September 30, 2024, Backblaze reported a net revenue retention rate (NRR) of 118%, up from 108% in the previous year. This indicates a strong ability to retain and expand revenue from existing customers.

The company has implemented various initiatives, such as enhancing its cloud storage services and improving customer support, which have contributed to this impressive retention rate. The annual recurring revenue (ARR) from B2 Cloud Storage increased by $18.1 million, or 39%, primarily due to price increases and customer demand.

Core Value: Innovation

Innovation is another cornerstone of Backblaze’s operations. The company is committed to developing new features and improving existing services to stay ahead in the competitive cloud storage market.

Research and development expenses for the nine months ended September 30, 2024, were approximately $30.1 million, reflecting a focus on enhancing technology and service offerings. This strategic investment is aimed at fostering innovation and maintaining the company's competitive edge.

In 2024, Backblaze introduced several new functionalities, including advanced data restoration options, which have been well-received by customers, further demonstrating the company’s commitment to innovation.

Core Value: Reliability

Reliability is crucial for Backblaze, as it ensures that customers can depend on their services for data backup and storage. The company has consistently achieved high levels of uptime and data integrity.

As of September 30, 2024, Backblaze reported a gross customer retention rate of 90%, indicating that the vast majority of customers remain satisfied with the service. This reliability is supported by robust infrastructure investments, with $21.3 million allocated for property and equipment.

The company also launched a customer feedback program to continuously monitor service performance and identify areas for improvement, reinforcing its commitment to reliability.

Core Value: Transparency

Transparency is a key value that Backblaze upholds, fostering trust with customers and stakeholders. The company is dedicated to providing clear information about its services, pricing, and company policies.

In its financial disclosures, Backblaze has consistently reported detailed metrics, including revenue growth and operating expenses. For the nine months ended September 30, 2024, total revenue was $93.8 million, up from $73.3 million in the same period in 2023. This level of transparency helps customers make informed decisions regarding their data storage needs.

The company also maintains an open line of communication with customers through regular updates and support channels, ensuring that they are well-informed about any changes or enhancements.

Core Value: Community Engagement

Community engagement reflects Backblaze's commitment to giving back and supporting the broader community. The company invests in initiatives that promote education and technology access.

In 2024, Backblaze contributed approximately $0.5 million to community programs aimed at increasing digital literacy and providing resources for underprivileged communities. This initiative aligns with the company’s mission to empower individuals and organizations through accessible technology.

Additionally, Backblaze has partnered with local educational institutions to offer internships and training programs, fostering the next generation of tech professionals.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.