BLZE - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the Backblaze First Quarter 2024 Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to hand the call to Mimi Kong, Director of Investor Relations and Corporate Development. Please go ahead.

Mimi Kong

you. Thank welcome Quarter and Earnings Backlaze's to afternoon, XXXX First Call. Good

financial Financial from manage are price call Board; Co-Founder, Chief Statements afternoon. earlier new offerings, impact to of our annual other marketing future growth new features ability partnerships described differ call will and expand materially, with uncertainties were customers. of and our to initiatives, retain the and and our Form are risks statements results Gleb the including and about Today, risk financial in include discuss our that and me and Patchel, our this compete use results the forward-looking our On distributed acquire in IPO are effectively of report today included Budman, that on Backblaze Chairperson CEO to filings. Frank changes, statements sales and Officer. this with our existing our on to XX-K results, that proceeds, These our results strategy business could the and financial and actual and subject factors customers those cause

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

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

Please will rate. to related and a webcast, also gross retention find definitions see comments release be customer presentation metrics press call. page for slide as of our posted also also our or such after the to the additional NRR Relations can our You presentation in Investor which

I'd addressing to will Gleb, Technologies through in us. like to like of would also that as we gather investors over platform. latter portion from turn call, I to the our you be Gleb. the that questions to now I call Say Thank And calls, turn over Before joining for call the the we mention prior in

Gleb Budman

thank Thanks, afternoon, a key us for joining Mimi. Good metrics. everyone, record and We you across had today. financial our start

year. a XX% the points This We quarter last percentage finally, also million achieved this grew the used we product period of accelerated but our $XX serve of customers with in XX%, same best mission from adjusted partners and ago. growth usage of storage $XXX,XXX, supporting last And margin X better delivered cloud. EBITDA negative improvement quarter, that year. the cash we revenue efficiency, improved a at have delivered Not business innovations cash an dramatic positive X% than only year only was versus and have

into and respondents diversified few majority from where prefer our providers that survey which landscape into solutions yet results, a diving than customer A we historically choice. they to selecting cloud customer been indicated aim when cloud X.X, a by take that vendors lock has Cloud best-of-breed platforms defined to choose customers and away the ago, their of IT XXX speak see benefiting want I we to a already. few the business conducted more today and we're months of Before A already decision-makers. from to trend

is free You Cloud garden design, they a ecosystem and this an that customers. better are want who way. exit, X.X Businesses their It's egress better their is cloud recently leave only fake doesn't services. that data What multiple those want egress work use cloud not to. applies free cloud done customers them, and wherever egress where open however underscore announced may because and, AWS have at These businesses for all and with. Backblaze X.X, walled our only X.X limits this just free want not move actually want can who because use They the for completely. cloud for really economy with is to innovation and X.X bills allowing free crippling their their without heard First, the they address what Azure does better it built model by customers that freely modify may ultimately, regulators broader Cloud, announcements cloud but have data to Google of for customers fear customers free, is for to on egress actually work data platforms use to or

which best-of-breed a trusted ecosystem, using And robust newest the is called the gives automated ability in this provides they A point need.Third, deliver want. partner providers. customers platform to of strong last that innovation great different to best-of-breed access best-of-breed services Event have example cloud across the to build Notifications. customers Event our last, platforms workflows we Notifications continue they Second, support we durable gives customers innovations easy provide a that we performance.

product over storage computing have Conference, X inefficiencies our workflows and for reception the business out organizations Event entertainment significant early build that requested and process. product enterprise strategic releases major example, the in other services Event major Broadcasters our Notifications upload very a for show past has join and automatically backup announced private only to Event as video release. control customers. BX for of in over will early the file at provider the XXX Association the National upgrade to within require actions in for ago, X increasingly from the encouraged trigger and potential prepares media to months have buy the I'm the us was facto weeks storage de platform-agnostic, already also from one a to to by become be customers charts-performance Notification program. In process The to for am services and programs, that made Backblaze notifications recognized and and the X For Including the event for workarounds trade and our can cloud that and at a want, providers. cloud year we we for Motion team another security the the partner network. Picture Currently, and preview our streaming. ramp storage our trusted market customer cloud restrictive including state platform empowering We cutting compute Association's progress I provider to offerings a for cloud. work the Notifications proud features launched or of delivering designed compliance industry. as QX, complex Backblaze strategically the the also to costs with trigger significant similar open they differentiate us just power in position of

security is network. their enrich education. been in Recently, that contract, local our IT in Carahsoft, to which make media one for to to the services NASPO and value services compliance which the industries and and and world software and Backblaze is another industry. In time, of and the eases privately state added announced Focusing and we continue adopt our largest our possible. expand and government element key and case, entertainment partner educational the the government on held as process same this effort easy to Point we've as the At companies in procurement

win world's work. Their and their adopting media one Our us location team partners retailers Backblaze. reseller facilitate the customers. to needed also preferred recommended of largest continue creative with trusted Recently, deals of help to larger a the hold

and use of ease performance, won affordability the deal. Our

for with best-of-breed be focus that to means is any need interest case. that conflict our addition, retailer a worry wouldn't In storage vendor like doesn't sole provider the Amazon, cloud about this of a obviously

powered-by joined already number of announced partners our we meaningful a Backblaze quarter. have Additionally, just last program, which

monitoring, space, AXL Their storage platform seeing utilizing wide join growing of of One Since transformational to BX and companies number AI use reach new not such but AI-powered financial to of optimization, AI. team of tools. our deliver has of the using of the is a management manufacturing AI of us help cloud X.X. for BX In free record businesses most analysis recent only customers companies deliver legacy proud leverages XXXX, Cloud the more. media value for and our believe much to the satellite broader partners has these AI product wildfire AXL and platform to data platforms. what doubled position achieved I'm the of a Powered-by with cases, I to storage search as innovations. strong deliver AI the our love do we're very can we from what data put after cloud range in seeing beginning number also the the to workflows. I a and cloud power data results

our year. Until new CFO. great to already I'll accomplishments a the everything I Before successor planning to is results. his to all that replacement, to thankful Frank to financial announced remain this review has smooth and us hugely this his celebration us call, we search and pass help onboard to for brought we our save to his with today, our underway, will will A CFO, continue the ensure and call hire drive the of gratitude Frank our team intents for Frank to retire transition results. later Frank, help is year. for over his Frank but departure hand We're many off Frank?

Francis Patchel

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

to it identified goodbyes As process. onboarding And business record the retire will happy to get there, I'm results when have and will for to Gleb mentioned, business usual. my be we once replacement then, we've share turn time until planning I'm to the There completed be we as today. but

metrics: which unless to release. As X remain metrics key defined are EBITDA, growth non-GAAP year-on-year. and is revenue focused be in a the referring noted, will and our growth adjusted We earnings reminder, mentioned otherwise I on rates

As we financials a in ago. from have strengthening strides Gleb made our year mentioned, significant

significantly the compared while adjusted to leverage made business. reducing margins year the cash expanding The quarter tremendous strides operating our inherent accelerated EBITDA improving in were our positively rate impacted last usage. our adjusted we gross year, by over meaningfully growth and margin, This

to consistent as strong continued have record track execute a a company. and and public build We

BX totaled revenue growth. $XX XX% revenue XX% last $XX.X million, million, reflecting $XX.X revenue in growth. Our storage XX% year-over-year increase period same versus reflecting of Cloud was totaled million, backup year. QX an the Computer XX%

improvement. last Turning year about gross retention, company put XX%, increased XXX% Total points in net revenue year-over-year storage show and at the efficiencies cloud data backup further the QX XXX% quarter-on-quarter NRR. computer at place reflecting adjusted with and NRR down of margin increase basis was centers. Working price operating we XXX%, P&L, our to in or continued our to at to which BX XXX

X% This XX a was or year. million revenue, adjusted positive substantial a EBITDA than last the reflecting quarter, higher $X.X period same of points

have and we increased significantly year, operating grown carefully revenue efficiencies. past while the managing Over expenses

by stock price recent we the related which headcount had This to additions, an quarter, appreciation. was also increase offset slower payroll taxes in

XXXX QX versus quarter compared last sheet. Turning quarter million end cash to cash, operating cash benefit year Even totaled usage including The $X the $XXX,XXX the last just million we cash balance of at Cash in options discipline. short-term the million the $XX.X reflecting in reduction investments, million XXXX, proceeds, from benefited of of was in place $XX.X to the restricted QX million the at QX $X.X and for removing $XX.X of usage. after put increases in and price improvement. about almost and expense usage end

Moving on to our guidance.

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

We adjusted between margin X%. X% expect and QX EBITDA

XXXX, million X% are EBITDA and For range of $XXX guidance we year million reiterating of XX%. guidance the full revenue to $XXX to adjusted

year-end in cash. having million $XX project continue to we at For least XXXX,

to We it growth Gleb. operating continue drive call So start we will up, the we had more with to QX performance. leverage. very a year accelerated record pass now and wrap pleased our to to I the are back where

Gleb Budman

and investor Operator? Thanks, customers, excited Needham I'm industry results many financial partners Cloud investors to of like record innovation. with this tomorrow at I'm for to And proud month. we employees, technology you it Frank. for our journey lead the Thank up Conference as questions. you joining to the to Craig-Hallum us the and help conferences on later and see open Oppenheimer that, this I'd shift X.X. of our and

Operator

from [Operator first Raymond question James. Today's Leopold comes with Instructions]. Simon

W. Chiu

close least wanted the ways lock-in gap when Google egress. made. AWS I concerns egress Simon. slightly Acknowledging number is up customers strings alleviate maybe fee follow Chiu comment these considering Do that Victor This of attached. concern guys for and from back vendor was egress has that whose you on at slightly versus to in move primary the a free and

Gleb Budman

Gleb. is This

So the is short no. answer

the use those And and past, egress. actually really is they've the what as not about before is that done So cost to us customers it what data. open really leave free free cover be able traditional is exit, But them the having some exit their vendors could actually customers of of these to cloud cloud the in would want thing clouds providers.

platforms. for doing have what is in do. not fully trying barriers They're stop data. that to these XXX% use are you their what place actually they have to So trying to put the That's their using they're customers

an example cloud and CDNs primary, was been AWS secondary previously actually and Backblaze call half overall could and data durability, our them with one made to to because infrastructure. double decreased think earnings outages of the half the decrease They prior -- that multiple their use services cost transfer enabled their and the improve for because in cloud overall so in added in the therefore, us partnership overall free, to had And of had the cost I I've they a shared wanted durability. the some entirely improve customer made AWS on their

of the These all the customers want. customers. help thing exit with that's at free kind that that don't for So moves

W. Chiu

it. Got Okay.

-- is So issue you're of migration was what the of an away saying? full kind really the never kind anyways

W. Chiu

because... That Exactly.

Okay. you guys And can progress update that last update? just you on you that your developing. give working don't an give prerecorded and AI-focused are Francis, about in know this that. your the Can you you mentioned in if around kind solutions I comments spoke around an quarter of that around us us

Gleb Budman

cases. sure wildfire you an with on solution a the is like maybe I the those. call, AI shared the I'll the about satellite just on example example customers on examples Victor, about developing. focused helping and we we tell some that were I'm But their not give we more that to of Sorry, navigation talked AI mentioned what little And use color

are foundational where workflows, itself they So all AI lives, as customers to have platform. a the need that coming and customers data place more that more are their foundational and Backblaze to building information the for data data platform be

customer things is couple tall analysis, wildfires the And AI. footage, the to satellite using camera all In workflows. places wildfire better. using global get models then case on navigation I of the Backblaze. triage of buildings and the and better make take So on company create do that is the And potential all Backblaze that gave the is they're creating underlying of trying what using at that foundational for data trying they're a those in them there to they're is our navigation examples the using analysis better, What models to call. to way earnings AI where prior does help make look AI for do and in They're data especially other those platform of AI models. out their

highly support building So in doing. these the that's platform, because high-performance, highly workflows quality which available open that the we're providing our durable, -- really supports them for We're of what ecosystem.

W. Chiu

mention you kind investment... didn't -- focus sorry, But some I'm specific of like

customers to head the sales, focus you help which Let last aimed initiatives, support are teri quarter, me... AI our a in said to Yes, of a okay.

-- a wasn't specific... what you're So that's it

Okay. Got it.

Gleb Budman

Right.

and it, think already customers help. have to current I we as how of opportunities sales, of we be many by customers that head Sales AI will we it. focused opportunities role him to further who as on are in more AI do product that of I initiatives mean the the new like understanding are bring we mean doing help our Head role don't the the is because can on plentiful our There stepping a we space into we with launches, can that initiatives, AI take there we help on customers what really what are would So

W. Chiu

see. I

That's those marketing understand being in to to. able initiative referring you're it's role accomplish Backblaze of what things. help to like a more customers So

Gleb Budman

yes, It's a and it's inbound outbound. two-sided both

both and cases that with going use organization So of can the helping we are and and needs. customers into it's understanding and needs evolve educate out more also what their insight more their bring so

Operator

is The question Riley with B. Securities. from next Zach Cummins

Unknown Analyst

start strong To that bit a Zach storage the your pull in for close BX levers the going This growth possibly is in different to you can you area? [indiscernible] maybe speak Cummins. to could little sustain

Gleb Budman

of those. touch some I Happy on Sure.

one that our we go market. all So first went XX% of revenue when self-serve. just the of We we public, about talked -- is was to

website So and and were up want a go. password, show sales-assisted you up human. sign was prospects they customers to they talk XX% about And a bigger. enter the the enter show those XXx to up and motion. customers credit ever website, And They our don't they a to card with

we motion. self-serve said at lean to that our to addition into efficient really IPO, sales so continuing we And motion wanted optimize in to

optimizing works, We've quarter-on-quarter So growth continue the that. do the paying side. we've year-on-year have website way seen continue believe done like number side. drive self-serve resources the And self-serve on that more to to investment business. of customers things opportunity to self-serve the added we we We we've and and with the to for

up that quarter built have motion And the side. upmarket we've also on this and for We of salespeople with We've the people. some additional sales brought some sales the done motion. channel

we last build out -- year, our initiative an efforts. we've channel So to kicked off

more been we've that. so starting And into lean to

So motion the growth. the overall is one to then innovation the other go-to-market way is And side. drive

also now help with into [indiscernible] highlighted us call, expand on new are our existing powered markets, enterprise customer base. innovations which those expand I So control upsell by Event all to existing Notifications, market the our and opportunity

Unknown Analyst

if can And That's speak or there's to any then, been in downtick really maybe uptick you helpful. churn?

Francis Patchel

can as churn We We're to statistics that speak it retention. really think that. This the we've about Frank. customer seen. I pleased is of

And has considers XX% fact do quarter increase did price we overall. retention at a customer the remained that Our that X. in

very, been strong. it's So very

at our renewal rates. it at look We also

at little thought. rates, stronger Our we to computer strong very actually renew a than backup customers are continuing

there is our kicking nicely, as retention up and the strong actually quite revenue well. it's customer deferred So

Operator

with Blair. from Ader William comes question Jason next The

Jason Ader

questions. Just a few

on First, quarter? and on numbers. just maybe since macro not the some it how for changed Frank, questions you, might And commentary then the have just environment some last just or

then in the that XX% last X So definitely but growth on than just a last over XX% it's year was the saw quarters. this computer XX%. is last rate, ago seen it in quarter quarter, what growth rate that? quarter better BX backup, Is bit driving growth And the and price what XX% what than increase, also we've little worse then it's and a we

we've seen there? acceleration and computer just come seen So what's backup. cloud on on going some deceleration why on some How we've

Gleb Budman

the Frank answer then to with first the and addresed I'll start you questions directly. peers, let I'll them him Jason,

we on things, base side What Fed So is rates customer that anything I to different. has kept seen of where small all the to in of will bulk of who the macro aren't sensitive certainly are interest I mid-market environment. they are. macroeconomic The seeing the terms focus our massively our customers think say the we've is

seen being or too And about so but anything the that's haven't one cautious we're customers. other we significant headed, with where way

we customers. sign that's a driven stay continuing us and We with quarter continue to to up Obviously, strong sign by to and customers had up. continuing overall,

Francis Patchel

about rates side. I of talk the product growth the

our pleased rates. we're with actually, growth So

in to of very The also computer price it contracts. X-year that it's referring to their increase, remember, is customers what more the because first backup, before, due That which and rates I one renewal was off have X-year is quarter, every very due is is month, renewing more we to is strong. high and XX% this which but

have particularly So those been high. rates renewal

at and For see that remaining amount. XX%. we're year, said full that, the We we did

-- we So digits. in that thinking are still double do

new our we're One upsell which starting And is to to as even excited of version. And VIE, That customers aimed we been and in though an some version is uptake as very existing side up larger we enterprise contribute coming we're just at also, BX the well, already, that. that and companies on for really that's about seeing accounts, some is move introduced. the have it's revenue is there market. enterprise things

of there. excuse bit higher were XX% at our range. the backup, growth -- a thought me, top that's BX, on So revenue the good was at there why computer than mean, things it's this I in quarter we On we

increase. is combination We But new the be right, business. of the we're year as with be price for through are entire that we the and the It to year, growth total that. is about reason the increase we'll our XX%. pleased in quarter the lapping for And that will move our X, due you're saying price

But So quarter. growth bit less a that we we like do little see. less in there what there's overall,

Jason Ader

Yes.

misspoke. I believe, meant the and was Sorry, quarter Cloud I quarter. year XX% ago. a lower I than It last last then XX% growth BX XX%, ARR was

what I that's [indiscernible]. So

Francis Patchel

see. I

a last the and wobbles of ARR, downs our predictor ups the because not bit. quarter. month business So for in the perfect off not a it's It's rate. We of the calculated of of calculation

you So every when day month have a revenue important. much higher because you have pay-as-you-go so is that

of based little a still growth on our market think well are So the growth it calculation market. bit above rates there methodology, the we that the or wobbles but rates the

-- we're do we So feel it. good about

Operator

The from comes Markets. Street Bruce next with question Lake Goldfarb Capital

Bruce Goldfarb

on results. Frank, congratulations the great Gleb

of demand? the demand segments, you're In What ahead. go with compare company terms saying market you midsized can SMB

Gleb Budman

Yes. What using there, thanks It's that say have the the size mid-market while, XXX,XXX question, right? doing about Bruce, we an we've customers and smaller BX. question. for the We a is volume of interesting for have overall been I'll and

volume have So we there.

an momentum end upmarket more mid-market, it's of larger recently. doing that been we've the the On

so significance part in of the of of indicator the statistical market be think it's market of And the I a harder number deals kind to overall of gauge strong demand. that to

market the have seeing to value value that for using think if are further customer upper provide, a lot part by customers have their because I which in we interested there. have opportunity more to a they Backblaze. data, we platform data, more are more focus and larger around provides they needs The that what optimize of they why put we in of platform the is proposition decided is the

the clear, Fortune broader from hard when the to So seeing we is talk moving to significance that up to interest the companies government. we're These that I make seeing this it's trends, are sure I it's in pleased while we're with the in submarket, federal about address we're and mid-market. XXX statistical think employees. that just what market not are X,XXX upper And think to about engagement

Bruce Goldfarb

the... That

Francis Patchel

Yes, That does. that does.

Bruce Goldfarb

And then out rolled competitors? you competition, their have kept rates of in price terms increases? Or they they stable? also have Have seen

Gleb Budman

and number they some Microsoft, top So them like rates of the top competitors would the have talk default Google I traditional for Xx charge on But have out same, that, transaction their rates of same. X.X Xx, A they rate when And of their say Xx, lot more kept Amazon, rolled that increases. about fees. price are the a providers the our on egregious of storage. egress that, fees. charge And then we

So rates, may much are than while their higher raised they ours. much, not rates have

Bruce Goldfarb

generation do then still anticipate mid-XX%? cash And you by

Francis Patchel

Yes, that's and million will have breakeven or approaching of $XX have end at that that we cash said total that we we right. by XXXX, mid-XXXX. At the least flow

Bruce Goldfarb

Congrats the results. on Great. again

Operator

I would off to scattered now like the to turn Mimi? the Mimi line. call some over questions for

Mimi Kong

Thank you, Ajay.

in future? would investor like like know. I is see dividends. there the This really would any to Frank. question to Are for First

Francis Patchel

that's We're dividends small the is and midsized market foreseeable for not $XX companies. planning And we are the a and billion reason that in underserved future.

in So that's for we our and we really investing growth, investors. best think are our

Mimi Kong

Backblaze have fee a or question secondary years Gleb. for university Does is special happen to to a granting then thus plan students clients younger for them attract come? next the Backblaze like And would school

Gleb Budman

because decade. with long the point time. far stay Frank which customer customers join customers customers us retention, XX% for they gross a stay I for platform having keeping Certainly, talked as it's of as high to means retention, great for the as So something of years about like good come, on is very a a think

default. really the on and computer that's platform our of and terms because unlimited. side, university In products In work backup it's for part them well by schools, secondary

just it's and have it. they about don't easy So worry to

and a a to the free, data actually tier, can On it and use they provide of BX with we it's very, start just scale use limited inexpensive it their amount so at very typically. free side, for

for stands. as a it's it of specifically their great cases services use set So actually

Mimi Kong

Next is plans for be will revolutionary ahead its Will pioneer question Gleb. any Backblaze to you, this also that competitors? there year strategies put of any

Gleb Budman

revolutionary things to I So of that. facilitate of one about cloud I think how this X.X terms we is trend in the think talked strategies, we and

most approach. providers the that So cloud to and use best are I customers think that get walled all and entails. best-of-breed aiming see reality more traditional that that still that And the an more open for the is competitors of with garden we want

strategy things that doing And automatic workflows Event that, enables shift. to helping these and talked create providers so we're to that way to and customers a the Notifications, of they support different that lead about great which is between

highlight.Other market take I think would grow strategies I already So that's to are I probably the one mostly us than market that, faster the enabling we're think pursuing the that share. than and

well go-to-market the So doing between that do product think coming I motions the we're I that. we're think positioned we're to and innovations that out with,

Mimi Kong

goals important months? again, for what the next most XX the are And

Gleb Budman

of goals, I So guess financial. was terms in first

is want in growth. a So market. opportunities Frank lot of revenue $XX growth financial billion driving believe We continue what a It's there's key. to driving it's like goals, we said, revenue

the The that to and steam. just is And positive towards third drive driving total stature, the efficiency, is so in EBITDA second positive financial growth. reflected on that's flow our that part one running business cash its continuing own is

on that's So financial the side.

On the upmarket business drive side, growth. continue we to that

were So with a upmarket sales the in that hiring process of that growth. with driving executives of now, we've hired the in sales that new head new QX right

taking innovations last the the the really getting into we one motion. The and second them to is continuing of is motion those then and that more the customers. channel hands shipped go-to-market overall And drive more and

like that ones are to the probably highlight. I think I those would main

Mimi Kong

question Backblaze BP's received a Last synced such The my versus up as a quarter. Will next due from to we signed integration is question OneDrive quarter, to we back develop cloud? cannot by Backblaze have files? Microsoft. files flags incorrect the point cloud back solution as a are with last follow-up safe OneDrive up by sync answer. an BX to left Or

Gleb Budman

question for the much but a So key investor for an question and being for the us nuanced both that's well. I probably call, in as of very half Digging appreciate That's a customer. first

customers I'll one have We we would approach BX develop open integration drive use what to road with computer that can machines on laptops is up a to broad at map say part that all of It's our a whole service data directly. use desktops -- are data are and like supporting of one cases. of that the the our along don't that backup working computer supports we're the our on So and do people all BX. of have itself, peacefully cloud our ecosystem other love toward cloud is we using, with storage. partners designed night The partner protected. the you're partners sleep and back so just on that, to primarily them using that of the cloud backup do plan ecosystem which the BX, is sounds with one for service really products partner potential those the

Mimi Kong

Gleb. Next any for question for present in The Backblaze? ongoing opportunities developments AI

Gleb Budman

data use durable, you services being use short you're other bit data them When But yes, myriad of multiyear, you're of is where opportunity on it I answer And think all to with multi-decade do variety available, single possibly you that lot and a think data, then somewhere with where working I the that with and afford coming and every constantly of AI it's that working need little use data I for you that that. that developed it's want AI is best-of-breed cases, AI, out So a earlier. where of a to and a put where the there's analysis is Backblaze. touched day. to performing can for

all analysis customer for they an and providing cloud that the a the platform have foundational mention another opportunity being to provides movement video company, because do great to open Backbblaze us in a -- that. that web one They're talked I'll platform also distribute the it another morning they're with leader AI out this that data CDN it and providers in scale folks at with the leveraging recently, process about I about would talk to storage talking by going to think as so they're we that that data they're do create a connectivity of underlying that service platform, capturing. scale. great that's for a videos with AI And of of Backblaze our leveraging to coming I with company the efficiency,

think of that number here just I cases and are endless. use opportunities So the

Mimi Kong

is Next larger the compete question is, what decision for meaning X,XXX companies to above threshold employees. clients,

Gleb Budman

that So above employees. X,XXX are we customers have absolutely

have features and part part Our mass cases said don't compete not platform and addressing is target the that it's storage because those velocity most market of data and many easy-to-use have use suited of where that think for same which we an of needs. functionality than many need. actively lot that can ones need, customers' below we that focus Fortune customers are affordable customers of in complexity because the their the that the those or that, we market large larger particularly the well underserved on a try federal that where Having features mid-market of are solving -- do XXX companies that, of of a good and help to to companies of they the we we government the functionalities

we're for So believe suited below customers really us. we well

of the when for -- a solve suited will above We we those are fit. customers' many work and X,XXX, address to to it's customers needs well good

Mimi Kong

is the relations customer and the hiring risk reward? worth And more point what sales staff of at

Gleb Budman

of executives I we that opportunity upmarket a deals QX, with because on hired people. the So new closing mentioned we team, actually specifically number sales the in of more account see additional

can confidently general, is that we're go-to-market what areas. those in evaluating and be motions working our The we in -- drives when what evaluation invest approved. further and what's So determining

Mimi Kong

final this our is And question.

API company engineer, to was BX I software than improve more much boasts to be integrate average developer experience a and the Backlaze's to easy? simplicity of would a may from developer expect difficult adoption our by experience, that Backblaze plans what As the developer its

Gleb Budman

than platform. So customer again, first and surprised the am difficult of I you all, more that it with for was found love thank our you it. you I'll I thank integrating say being that for you experience expected. a

like using the BX have may it -- have We sounds you been prior API.

I'll also offering. Amazon's created a SX also compatible replacement also year, compatible provide that is And last which what popular, mid feedback. launched samples snippets we any since that for that is code introduced has service have an website drop and very so section a with our docs is We've SX and more. that would on say we been and new whole API it love in We examples

if to have it. would love product hear on backblaze.com, at would feedback different you e-mail we So like feedback to what was that experience you and what see

Mimi Kong

hand back to question, final the call MJ. the going to Mj? that's I'm And

Operator

in and At more our we any questions Mimi. time, don't you, queue, will this conclude session. question-and-answer Thank this have our

the Budman for turn over to like remarks. back closing call I'd to So Gleb

Gleb Budman

and look next say on we for to quarter. seeing that at want and quarter I of call had forward you for we so call. the the this innovations you you some rest much. the conference will everybody month thank the to you next and hearing to of Thank about Thank our you there, tomorrow and joining

Operator

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

disconnect now lines. your may You

Backblaze (BLZE) 8 May 242024 Q1 Earnings call transcript