- Earnings call transcript Q3 2022

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Operator

Good afternoon and welcome to the Backblaze Third Quarter 2022 Earnings Call. All participants will be in a listen-only mode today. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded today. I would now like to turn the conference over to James Kisner. sir. ahead go Please

James Kisner

afternoon, XXXX to earnings Good of third fiscal year call. and you. Backblaze's welcome quarter Thank

compete effectively; On the Frank call differ financial Co-Founder our to retain Officer. CEO subject with Backblaze results acquire factors me including today Chairperson Today our earlier filings. customers; Form materially the growth. new announcements key forward-looking customers; in are our XX, with and afternoon. ended that our of were are and statements risks IPO retain in our financial to and from Board; proceeds; this that discuss include our included in for and financial and described initiatives; statements risk partner our and and marketing hire sales will the Statements Patchel, manage These distributed XX-Q quarter to business on XXXX Financial the September and results; future those expand Chief ability actual results uncertainties new about personnel; the that effectively Gleb our and Budman other call are cause use existing could our our results products; of

forward-looking statements on assumptions not update except our should on undertake obligation events. we we as law. no of predictions beliefs as by this to and them that forward-looking rely future of All call You are on required statements make as based today and

our will the filed for These GAAP be results include X-K earnings measures. and considered non-GAAP with non-GAAP will GAAP as addition today today furnished SEC. which financial of was our in to results. not our should discussion substitute with release, measures to Form Our found in Reconciliation a non-GAAP be

Investor the slide page to a Relations posted find webcast, after our to presentation in related also will call. the also can be which comments our You

now addressing mention in to like questions the Before calls we to of I call that be as call the Say will prior that through Technologies to we to Gleb. I call gather over I turn our would Gleb, the like portion would the from Gleb? investors in turn latter platform. over

Gleb Budman

thanks growth. for joining strong revenue of Thank us. you, year-on-year third all We a with quarter XX% James and delivered you to

Storage XX%, according BX Synergy BX of Cloud Research. the infrastructure Our now XX% revenue. grew the cloud twice business broader of rate to Storage Cloud makes up market total And

a Our healthy XX%. computer grew business backup

As for newer use independent store, to may protect a is leading on easy to the astonishingly call the storage. our those to data data. Backblaze and is for reminder that it be And mission the story, cloud make

on have service two platform. that cloud offerings operate We our storage cloud

First, our dramatically Cloud second, of Amazon to that service our and cloud backup others BX is laptops IT, Web storage desktops and easier developers, Storage others. and provides individuals. is one-fifth the cloud and unlimited computer for backup and SX provides use for And price personnel Services service companies

based want While remains billion the opportunity Storage on our computer IDC three capitalizing analysis. approximately around projections strategy business and our items investments service the to total on center backup offerings two BX call. for at company the moment, cloud $XXX and highlight market on the XXXX increasing from this larger I Cloud of

total offering behind strategy with Storage now investing First, BX revenue. is XX% representing Cloud demonstrated of BX our of our

with and and been the now with partnership XX% over of course important Second, national by our top-XX market our developers now developers nine strategy accounts of stored a partnership has year. And us of the key data scaling strategy major by a we're channel with growing also working developers third approach targeting resellers. is as prior being our the

aspect cloud services both of roadshow an are IPO our during stated we Backblaze. our important As of

reaching ever larger update relationships XX% thesis large as of company. of data cloud customers to our overall growth business continuing with XX% strong in the of e-commerce business storage BX the scaling market. rate backup to developers. has A we year-on-year on growth QX. today. We paid the storage using become business. of over rate define storage the our the investment developers BX BX in business, storage However, end which cultivate continues as for brief revenue developers, We're is that a up cloud on drives computer to becomes other pursue BX overall majority Since an BX our our with behind back higher BX or part growth their the with SaaS whole as are saw it

attending presenting October we been Storage in registrants the XX, helping thousands On in conferences our Conference in of Developer few of busy Info-Tech including number a easily Austin, at San Our last QCon in with and in SpiceWorld Day and LIVE and Las sessions developer has at Technology team Vegas and aimed months succeed held evangelism the multiple Fremont. developers interactive cloud. affordably the Francisco,

progress, were globe have named that There pleased just number a of for since was the grow. which we for last Inc.’s that Media our Backblaze week As Partner Business inaugural the Cloud track were entrepreneurs Storage reported records Power supporting BXB startups to another helping QX. of across organizations we very exciting proof proven list, developments BX point honors and

on more to significant partner we we the us. well make growth to program. has through important addition in revenue last as a our of Partnerships re-acceleration than experienced, continue are very in one-third partners. modest progress And BX come significant our amount discussed to call our In expanding we

how talked our technology importance building. strategic a moment before like Backblaze Given increasing take about their to to types different with partners. Backblaze, I'd work the is highlight partnerships we to We've of

promotional recently program for was resources. self-service cloud use Several offering and partners partners to a enthusiasm is with our online sales have distributors to for of continued we partner also Now, services channel pricing new BX of it Reserve, easy sell registration, capacity-based that new and universal migration free discounts, major eligible to begun customers. partners, our platform which sell end a and of premium have place succeed the Each Reserve, shown launch our launched team. national also to multiplier, wide dedicated A started which distributors our products channel can have push promoting move portal, development new to are makes partner expand have data and BX be resellers to customers. and salespeople to predictable and recently a sources. from, customers increasing deal Channel partner our our Reserve for key variety BX. which the support support of program, we number resellers force for includes data a BX access

are and show now Reserve small, ramp QX. increasing most MSPXXX. full their see backup we with quarter Object This can nice BX significant still revenue relatively Backblaze each pleased customers delivers availability MSPXXX to While only in In first its a initial of partners announced demand of of month other we Lock. data our a new alliance level oldest news, one BX for protect with protection, and of partner ransomware in

familiar, BX. inadvertently thus over refers control ransomware business protected to help For or a a this solve for by time specified period hackers functionality, resulting actors when individual major data customers, be of or ransom with enables a data Object demand those need to of by take Extending release cannot more MSPXXX deleted, and to Lock data. theft. in not ensures the bad data

we Media data entertainment and Elements, on integrated BX high remains, cloud-based with that given provider. asset level needs. media management we focus vertical a storage a Additionally, their of

believe pleased We success I'd this growth. from how will York future with in succeed. October recently continued mind we're companies in a highlight, customers drive share BX continued helped New to also interest growth We industry. of NAB, attended and and to in customers, media share has entertainment couple new like see BX that customers and help

the in files day, analysis web the XXX,XXX-plus runs scans over Every space. information X.X customer capturing security artifacts threat out service in seeking process. million developer a urlscan.io malicious content, website in First,

Backblaze Storage a AWS response files integration workflow of Storage sealed times, With made up. the needing AWS. for costs were upgrade, enabling website integrating of the consistent not speed the the other results concern, it unknown BX including of solutions ease performance but SX-compatible and that simultaneously concern transfer thousands The the was of access time growth. users When evaluated came deal. their Backblaze the in with hidden without a simple, and urlscan.io team with to perpetuity, but BX CDN. couldn't Unfortunately, incredibly commitment solution daily original capacity business. its and the immediate was Cloud few with keep pricing chose the API, scans to a for would needed their fees scale Backblaze that Backblaze tens and to company it an urlscan.io keep

simple is that stack easily team mission files, protecting and urlscan.io with experience. the where on customers their great right and their daily manages the of is retrieving with a reporting Now freedom growth. permanently and it, storing absolute mind peace data Budgeting user lean and wants scales effortlessly gives performance urlscan.io billions websites. on to of malicious focus Backblaze a from individuals businesses

and network-attached Fiture was Reserve their footage space transaction to To our includes delete coming production and schedule solution, a raw solution. migration. recommended a workflows, of capacity-based find device. Reserve solution, fitness an Digital storage company locally Now, quantities system out Synology Backblaze free data cloud free free to had no I'd up like Fiture's and huge production a BX on highlight streamline integrator of storage constantly ambitious BX out and room customer. rapidly penalties set in single running they which calls,

and to being has storage growth. worrying offered BX about of cost-effective, Fiture's billing Reserve freed adoption Backblaze predictable off. Backblaze future In already paid from addition Fiture

directly the to the mind Storage and and safely low. in anywhere. keeping stored the Now in up Backblaze their cloud. from BX Cloud can local storage they're freeing team all BX. access footage new of The peace archiving that costs with Fiture is files content space

turn over of excited and I Chief talent also received experience Resources advantage as business. Frank. to best continue scale over to Wilson, have continuing this being with TiVo to source CTO. development Backblaze us of DVR strength of and Robert, welcome has part to call has the has engineering help the nearly who our he strength Officer, the engineering of holding world. a the XX the senior the of to on hire, over playing retain a us its in a congratulate experience, Hewlett-Packard, would the CTO years like to key on be the to at maintain platform human believe to promoted and results Dr. capacity culture, and call resources. I'll can to advisory We in Before numerous Robert including as has first awards Patchel, the Backblaze like will to Robert technology years leadership. more of and of played I the the role Officer. I'd is in a Chief role in in Frank in We're to that for competitive Graphics financial engineering we replacing Frank? Technical Fitt senior review and in the now over diversity for Beach, that Brian roles XX quarter Human decade. Brian board, Backblaze at culture, allows Silicon develop who a key Backblaze evolve turn Beach detail. some

Frank Patchel

Thank today. you, Gleb. And thanks everyone for us joining

non-cash financial growth is depreciation, will benefits otherwise metrics, Adjusted stock-based non-GAAP and two other QX results. We interest and deem before EBITDA revenue are remain be are referring non-recurring. our compensation or metrics amortization, to Turning expense mentioned we expenses as rates to EBITDA. focused that that and taxes, the I noted, on earnings year-on-year. adjusted or growth defined Unless key

XX% vast currently annual BX since have pre-increased we totaled But represented XX% on Backblaze we at to totaled on Computer reflecting Recall, revenue, the Our this of continue X, growth million, million, the the growth Cloud XXXX. revenue revenue Backup subscriptions two the XX% $X.X phase year-on-year. upward $X BX subscriptions, approximately XX% customers transitioned contributed per increase, reflecting at to month of was sales quarter point, past million, Backup total be price Computer most QX of the they as or continuing backup of trend. QX, on the business higher to from to month an by active backup the pricing the computer one-year its $XX.X anniversary per are an XX% pricing. Backup of Backup Computer year-on-year. majority The we Computer this will roughly since implemented to price. expect subscriptions years of across renew driven began which Storage new in year-on-year. amount In increase to $X increase in QX continued two-year $XX.X growth benefit of By pricing. are year-end, increase. wane next in from

release XXXX. QX due credit two retention costs. are a customer We retention for is customer well increased metrics. quarter of of down the investments But to data increase gross consistent mid-XXs we marketing BX These Working averages. Gross with NRR, BX to three and gross the was in from prior our Total four four $XXX,XXX term. company company overall margin we continue metrics Recall, while of earnings BX X% non-cash with retention. metrics, revenue quarter the chiefly the gross market and stock-based higher from loss trailing detail investments of reflects do set was the pursue filings. of expenses planned X% point as in both the initial revenue guide increase and see but at expenses XX% Cloud expenses Storage to P&L, XXX% or Adjusted to excludes key this XXX%. was XX% in adjusted we positive and margin explicitly, as which year are for in also large more with as XXXX, Year-over-year retention not of G&A Backup growth of gross fee, for of customers. retention defined metrics fixed depreciation, negative Turning card Computer million sales recurring revenue, XX%, leverage R&D but potential track an year-over-year, NRR chiefly retention Cloud net cost. measures Cloud $X.X Storage, EBITDA or customers, a XX% on related Computer up Both public basically, Storage and NRR XXX%, gross lower in XX% to versus and in in was for at to margin or center the amortization, Backup. continue and compensation near down customer an

investments our As moderately lower for sales the favorability marketing versus QX primarily and reflects higher and this guidance, revenue in planned. than

balance to as million quarter. totaled $XX cash usage cash XX investment, sheet. versus of end the restricted short-term the reflecting the slower of Cash as September million, of including than QX, a Turning $XX of rate June XXXX

like to provide our four. outlook quarter I'd for Now,

of we revenue $XX.X $XX.X fourth to be expect For quarter, the range million million. to in the

We of expect minus XX% QX to adjusted XX%. EBITDA minus margin

year XX% an to to $XX.X revenue to $XX.X QX the million. guidance $XX.X basic approximately $XX.X minus share of expect This We implies XXXX full minus margin of count EBITDA of million, million XX%. and adjusted XXXX million

XX%. guidance EBITDA $XX prior million XXXX revenue called Our minus for $XX of to of margin to million and minus adjusted XX% an

While provide we're for and report for we seeing. we're the process what still providing early February results in color XXXX, won't like XXXX QX some in XXXX, be about next year we'd to we until planning guidance

we to-date, been As from initiatives. macro expected some much those. we're you've seeing companies, all year-to-date who've heard are not immune undoubtedly reported the to growth our as have as from results there benefit example completely in environment not challenges strong, for other and we're Though, our

decreasing mentioned from increase I Backup we $XXX forecast appropriate. in When also year. from for price ago, we're a line factors earlier of our top the revenue as a considering is million seeing benefit XXXX moment these this approximately believe Computer Additionally,

the Gleb We operating comments. Gleb? will expense to pass expect macroeconomic to our for the of also environment. back now growth currently the adjust and I reflect anticipated closing to call growth impact revenue

Gleb Budman

prepared remarks in cycles. I'll we've been years. everyone for our while can and inflation the reminding economic comments, news we're thrive fluid, low-cost our And grows Frank's And through cycle. to every post-pandemic add Backblaze by To data XX multiple good business that, Frank. are experiencing is we're close the day. economic is you, every that unprecedented Thank mindful budgets grown solutions in that just our clients' has

thank customers you analysts. to ready optimize are future billion early life, As trust. pursue in the we've still great the there funds from success and to opportunities Company invest now to with business. continued all of opportunity. grow already seen we're take QX, to investors to in questions To suppliers, $XXX partners, we're employees, a Public as and stakeholders, our our in our for Operator, the your And market

Operator

[Operator with now from question-and-answer go will Instructions] will question Please Oppenheimer. first our ahead. the begin come We Kidron Ittai And here session.

Ittai Kidron

nice retention customer guys, can going But forward. rate growth the, see been And retention Frank, On up, the a to that quarter. higher how do reflection the that's of from quarter-to-quarter. about net last the BX perhaps the BX's Hi retention of Thanks. net good Individually, mix for rate? macro especially declining, think blended about basis, but it's of it's been more dollar quarters. going environment. a you I three talk the considering guess dollar we

think we for about forward going company? blended So how the do NRR the

Frank Patchel

to Ittai. first company for prior that, our it is up year strong. increase, from for We is calculated and reflected data has very did headwinds be. example, for slower our that's say NRR for don't cohort the the increasing. NRR a some And four that, been we the items pleased What And is we're from from But way now. points the what earlier is to that, the going would year NRR it's well. forecast going remember in you, I forward the overall BX as other growth still ago the in compared And NRR Thank the talk It's it's by but number of the is price a NRR. from about year.

that customers have at all of new this and the So, number time. really this isn't revenue programs added new in

Ittai Kidron

Okay.

migration contribution how How impact next about, for of those I about line think program So cloud your data think do there? their year? the and replication top do of I all

Frank Patchel

net the retention. to positively. impact revenue impact will They adding us. will They us It's

And coming. so, we're -- that's definitely

Ittai Kidron

is a expectations where are $XXX million that be framework to now this bit are short is for provide relative delivering. XXXX a though from one standpoint, to while And maybe Gleb even us Frank you seem for you, a Okay. not delivering, either then, strategic

help that target, target growth, And your right investment or have how of preliminary me underlying So your do now? as or margin one point there. of in understand preference assumptions your think now OpEx? point Are about right where's one rather with over I your here you

Gleb Budman

a Yeah. Ittai. That's question, good

I want Frank about skis. a still right? of -- in we're said, careful ahead little I XXXX process, still far planning So So a we're say too the as couple I'll to getting be things. early our mean,

were provide not plan we XXXX, to some done. seeing seeing is the year for but what were of what wanted we for So sense we our and

In terms process. investments the do is we're that investments want a what do to want investments, through of are actively that we accelerate, evaluating, actively going through going what to process that decelerate, we so we

In between as and company, would billion a still this strategic of a pursuing ourselves viewing we're terms opportunity. point-of-margin, point-of-growth that, $XXX I the approach a say growth

XXX% was I it pure one-for-one if So point-of-margin. take would a versus point-of-growth the trade, the

were to model we know focusing other. price upside at very when you the in and where obviously, quite overall so down. each on a a from it's want down the we're linear reasonable we going As trying said growth. said that growth path be not beginning we're still cognizant the that, we -- the to But Having turn to company IPO we're businesses, of whole environment still as not macro

important to focus to add? EBITDA continue taking EBITDA as but we as a So choice. Frank, you metric, want over do anyway on growth an

Frank Patchel

we would we later. thing look some return all moderated and is Gleb. we that that, that investments of evaluating individually we've because that investments even and we've And moderated say with looking are only have to agree, in still Ittai our those those I at might I at accelerated and accelerate those others we're continue we what overall. the Yeah, And is of

from IPO and of a So we invest remember, our them when the stood simultaneously monitoring January programs point started proceeds lot kind so we're to we of at up in all.

very them And some we're pleased of with.

of them. them or we give some need rethink to more And it time

Ittai Kidron

Very good. Thanks. guys. All right. Good luck

Frank Patchel

Ittai. Thank you,

Operator

Please Erik go Our come Suppiger JMP ahead. next with question Securities. will from

Erik Suppiger

Yeah. taking my question. Thanks for

You a beginning where us that out dialed the looking -- add you us you back at Can you can sense headcount any XXX? come of the would how to plans sense exit give we to I year, the of off, give First some. think as you of hiring the they expect were year?

Frank Patchel

this and the changed. and hasn't in quarter also was it prior asked Yeah

just of our right things. partially we are and the investments hiring some that where hey this plans. between better Our adding our now due have plans point. decided -- we of two XX% hiring should XX% it's they return than It's we One original to due that at than of see is calibration a --

to the were them of market finding due in of best the Some people. difficulties

calibrates us that a bit. So little always

And many people we've from where that programs. to didn't some it we garnered is we some as of need originally efficiencies thought as execute

Erik Suppiger

many to channel how year? working with end partners you're have And the then with? Maybe partners partnerships how you're that can or with Okay. working of discuss you you're by planning the now many

Gleb Budman

Yes. this is Thanks Gleb. Erik,

as know you have different of partners. types we of So, number a

the we have We have technology partners, alliance within partners. technology And partners. partners developer and

more has We announcing have and The getting recently focus we're follow-on channel and What up we these of. step up we're obviously of national need a and Backblaze partners program them But of of BX and on would now There's for stood MSPs up about. really resellers are more Reserve, smaller kind distributors major core getting ones national these first side us now very up. the been stood the also of get is large selling to and several excited and stood partner standing those channel which was affiliates. that. the

of excited by force obviously have those it's our all many and as that go to we're for and one talk their team each out salespeople customers. sales a because of they So, multiplier

Erik Suppiger

Thank you. good. Very

Operator

from Bruce will next with question Goldfarb ahead. Lake go Capital Our Markets. Street come Please

Bruce Goldfarb

is -- my that changed, or breakeven? change any or EBITDA reaching adjusted taking congratulations call taking for Any questions. Gelb, great and that… goal thanks timeline or results on Hey my Frank, for the Has

Frank Patchel

we've And going fact know goal was we note of I X% early for since had it's of that has haven't this the our adjusted specific quarter improved a took greatly. public. the that. in best our days But the Well, set you that EBITDA minus

trend of for OpEx spend don't good said we the we a that on ahead our on so our investment. investments and that are in our get calibrating different and skis and and looking we're at so So our Gleb as

we're So, doing that. still

I been stewards of good think we've it.

us in to X%. year from this a a quarter go seen minus minus You've one XX%

I making progress we've So, think been good there.

Bruce Goldfarb

you're are just companies, Okay. seeing tempering you of of the in small are because some base spend like lower actually or weakness your the you demand? And anticipating kind or then it in for installed sounds midsized just either

Frank Patchel

comment data So, little our growth our in of BX saying to just to due done bit. not has as customers is that The haven't a hoped. we something in been What as investments, good it's well we're so that. like had they some

So to those spend less programs. that in us has calibrated

more for not are We dollars those other programs the spending just well. programs other are because on doing in one one

say. trying overall, rate -- moderating. the an of what really that's we're growth causing And expense to it's is So, expense

Gleb Budman

I we're you've opportunities the us just of and accelerating of some Bruce bit terms appreciate and Same color And the program in efforts. those Reserve what about is of question. to about heard because too acquiring of with the efforts some developer those And partner seeing excited talk one maybe are and and that tiny those. BX investments add

are said So, of the well. performing Frank very some programs like

are some Some because we're Reserve we we need we highlight there. excited the to and developer we tradeoff efforts more need the BX those. better. about -- of are optimize them partner There's reason program and where But some time the of them

Bruce Goldfarb

great Thank congratulations Great. my questions and on That’s results. all you.

Frank Patchel

you. Thank

Gleb Budman

Thank you.

Operator

with come B. Riley Securities. Cummins Please question from will Zach go next Our ahead.

Zach Cummins

some I taking the the ways I results. my Hi your questions base? further to some you with afternoon. and that your good you seen initiatives talk upon that of developer on for mean can try about the that momentum accelerate congrats can have of building you've guess just Thanks had success. solid customer

Gleb Budman

a but started Cartel Zach, they the Thanks they customer last for primary talked quarter Backblaze customers backup case companies them macroeconomic that decrease more us which the reducing are we continue and half. as ways Sure. being example and think Big for made durability I off in availability costs. of bill about about there to maintain their enabled study and kept their to where added offerings as Then -- They are a to In an the BX. environment, concerned their double Amazon. by Amazon so they question where increasingly while then market high quality looking

a been in little that developer that that has leverage BX publishing is evangelism blog. highlighting very team team posts. believe for we us. they're developers up bit Backblaze active on we and a There script, are they've as the blog opportunity and that ways an also interesting can in stood mentioned which So, been We've many our but demonstrating

kind that's often the based it, developers who top-down for the the those Backblaze And of so bring and bottoms-up CTOs, and companies. a technical offering of side developers they're on then use the them from and the side base so the reaching there's enable API it the of more CEO, We've BX. they're impacts -- -- robust. affordability additional ground-up in to VPs, for BX developers to perspective of also then the also a to making stood And amongst documents building awareness them up giving the tools up from a documentation team, on Backblaze out

working programs sales the so And that teams as team have the and on we marketing are well. those

Zach Cummins

Understood. final That's then from me. helpful. question And just one

of savings. the any inbound and companies dynamics companies for these have environment to changed. are you extract data for that looking those looking Have for storage? many seen Just Just with curious, lower-cost pickup are any if curious ways interest of current in

Gleb Budman

prepared into on-prem But the performance the including as and opposed the number Backblaze consideration, see in -- the as continue cetera. that of from et well. a their did costs. and ability remarks, the as that access certainly the also compatibility we in important those those a reasons, and cloud mean, conversations of for on examples I played offerings perspectives costs two an to BX low highlighted having and be terms I to Yes. for affordability of of to it both predictability it And also those they customers chose with and predictability the pricing

Zach Cummins

for my with thanks of rest year. questions, taking the of Well, it. and Got luck best the

Gleb Budman

you. Thank

James Kisner

community. questions want now. now Great. Thanks thank questions would answered, great submitted have already from investors from like and that we popular analyst all were been while to want questions that for a Say the address some to like handful platform. of the right sell-side ones on to more those look the read they submitted I those that I come investors

The first Gleb. boost or to for would future the in a profitability? that one large any there contracts Are long-term customers expected current is be works

Gleb Budman

thank to so wanted know I customers who you we blog many the for or publish that imagine questions have our the I the with the familiar and whom first very I And offer. Jim. Thanks we as products of to content are been on people of in the are many past investors,

staying you thank and with so forward talking those. questions looking actively engaged and those to through asking this And for for

So contracts. far as as current large

specific on comment we're focused because don't typically we So, on the of broad part, or customers customers. base the pipeline midmarket in

the contracts way we're purchase highlighted midmarket is are than larger contracts IPO, the BX previously of orders. and looking we to pursuing an certainly companies our Reserve, been Reserve of As statistic been we have in have committed which few is within one that, we're larger-sized increasingly part as that up support during we self-serve sign larger that's our and that in our in investing historically effectively that our highlighted that example doing mentioned midmarket. times, strategy deals with ones. to larger up longer-term XX With actively those times A the agreements we're scaling contracts. pursuing efforts, all BX I've sales sales-assisted moving a

James Kisner

to revenue? plan Gleb. the Another three-year four eight-year What is one short-term plan two and increase is for to to long-term

Gleb Budman

continues company to So, and grow plan our similar is long-term our revenue nicely. short- and and

focusing So out And we that mission our our pursue company to store, addressing our market, solution plan large to to larger by use believe which affordable easy during making become and while IPO that billion suppliers. path that trusted more data. easier, a middle-market very the astonishingly to continue we can on is much who we execute is set seek companies, for of it from Storage-as-a-Service $XXX protect customers

James Kisner

dividends? going The paying to next When one for you is start Frank. are

Frank Patchel

Thank you, Jim.

core our to in in best we opportunities Given that use invest growth. markets, our the our believe significant of cash growth is

dividends. So have of near-term no paying therefore, we intentions

James Kisner

This headed? Where's one Gleb. company is for the

Gleb Budman

Thanks $XXX bit be say that, question the for to two But little continue And eight-year is of clear over services continue and billion from adding just company continue to that the focused midmarket on our customers continue serve the platform the it's Storage-as-a-Service the about and Storage and time, I three-year above midmarket. on intend we we market. intend those four pursuing the customers. plan. continue well. to we a expanding as customers and to to for cloud We question guess We I'll that to similar focus Cloud those growth to to

James Kisner

expect providers to time? you AWS, change new switched Do first What two service that of the instead of the adopting percentage BX from other Over like customers backup are Gleb. in to next cloud percentage for years? drastically

Gleb Budman

will considered was and added to existing storage And I cases, two cloud in It's future. call, BX the say an existing an the to interesting urlscan.io storage on-premise that today. question, you another can one I that our with have The at mentioned customers I competing Fiture you other to from provide a that share We'll offering. to in if the -- look cloud BX on prepared and they cloud other a those, share What user. one Backblaze earlier both that, whether example statistics we options. of switched the an remarks their vendor the ponder And storage in there's is way don't Backblaze on-premise company. one was

So, split. we that, have a percentage drastic been for opportunity say know we don't do expect in is to that large have and us. continue What those the be a a reason change we to

customers those still the from their and so others is and of being many data data outside AWS on-premises the are is limiting their inside of are that of expense, the much that providers and use the world's to realizing lock-in complexity able So businesses. also the of

us. both from So as opportunities for on-premise other to movement cloud we see and from cloud good movement providers

James Kisner

working are to with next influencers the year over what service? the Gleb, you grow

Gleb Budman

services of force. our increase far sales the partner aggressively promoting opportunities which to influencers, a is also we I amongst as mentioned, the to developers. have We're influencer reach pursuing form us So team for an as our of dedicated channel that evangelism program

reader our provide the many they that path blog spread help million million how for influencers in can value is and customer X.X of and our view The base over other blog over ways community. big are key readers three and overall Backblaze we influencers With with the customers that message them customers other help succeed.

to that so a they that share we aim so message. to continue great to experience, them continue And provide

James Kisner

for these There's is in Backblaze How Fed hikes? few print. next more preparing rate a

Frank Patchel

equipment What we and investment for of term yields. then we credit our leases keep side, we advantage short-term take so we of on is do line financing. investments can And our our our that higher pre-negotiate

James Kisner

Gleb, in or another center do plan location the you Central Eastern data Midwest US? on establishing

Gleb Budman

announcement going should for But is And data not a preannounce center pretty stay expansion certainly say thing near-term we're tuned footprint locations. in this one something I space. new will you continually we that evaluate. So to is

James Kisner

are Just staying business are a current how environment? course? making handling more. you And the Frank, or couple you the adjustments

Frank Patchel

here looking bit, about of anticipated message that remain about we reduce excellent us. are the and their can spend they on that rely then but at little little enormous. so bit we've expect also provider we a to returns as we companies other we economic front see is We've the talked to storage are value the matching one is investments talked and those being service overall on metering in that environment. we many still this in for revenue opportunity many, growth based a trusted the us And overall an And a the

James Kisner

market the their pod Backblaze the ultimately to seemed storage from any to engineers plans more. attention DevOps breakdown/builds? days back One and there In in those Backblaze enterprises. early Okay. bring the attract Are

Gleb Budman

been question. definitely So our longtime someone and reader blog from I this the of appreciate is who's a

those in for is reason the Backblaze. part content have building of done valuable interesting building a we ways and we million we've an it's our that So awareness is such not and of one readers that three something that for played us the published the has more, about have community of storage space. leadership technical important And blog lot and a strong

continue moving ago different that about the we breakdown and the we multiple we announcement design. piece pod was like open-sourcing own in years on how detailed the that the different to periodically The on that to published enable use breakdown able we've called server information a server to originally hardware. Backblaze first of that. we And something cetera from on And -- of to storage ago about hardware our Storage times we've and we things blog strategy our that we of published third-party companies the the was easy that storage versions had is designed our we away update XX new published that and first almost of -- software when shared using strategy recently our Pod that server platform et would actually pod it blog, industry to did us that years storage and intricate we specific years behind built details one, that a hoping and that and One inexpensive materialized outlined provide go-forward components, advantage leverage. to of been has open-sourced us storage servers. And our core for third-party take storage our that that

share interesting so a our many lot new design and So other don't blog content components. do and to we the to But blog statistics detailed of have hard-drive on and don't those we on continue breakdowns beyond we including pod in anymore. reliability share because storage build that, much invest

of continue of posts. interesting We some a certainly leadership that. and recent we've had continue to some to we significant in content the more a of of share lot growth blog certainly those invest So in

interesting soon. do blog. tuned. Do the coming So stay read There's there more content

James Kisner

both you of and thanks Gleb, Thanks, for those answers.

that we be attending to virtually York New be Investor attending like just will City I'd Raymond Gleb, on Summit to XXth and James the back Conference also Xth. we'll mention on December in November the handing Conference Before

In the branded a of launched In purchase products Investor Relations we addition I'd reward also shareholders our front. the couple like to late program discounts. stock to mention and elements on with February

an on pleased redeeming Storage for It's Last minutes. resource had financial to our topics. provide your participation We each strong launched our the we recommendations. very and of educational week see we investors that content forward with awards. just lighthearted & in Each blog looking program all of video a a technology shareholders to are hundreds video Stocks few we're of feedback to called and and also is

channel. Backblaze I'll You for the back turn can to find our first the now episode comments Gleb YouTube on call closing

Gleb Budman

to you for your talking with We in again forward the thank and call. to interest Operator, end our we're look ready all and for listening now February. to in update. Thanks you Jim

Operator

very much for presentation. has you today's conference The concluded. Thank now attending

disconnect lines. now your may You

Backblaze (BLZE) 11 Nov 222022 Q3 Earnings call transcript