Q3 2025 Backblaze Inc Earnings Call Transcript
Key Points
- Backblaze Inc (BLZE) reported strong financial results for Q3 2025, with revenue and adjusted EBITDA margin exceeding the high end of guidance.
- The company achieved a 14% year-over-year revenue growth, with B2 cloud storage growing by 28%.
- Backblaze Inc (BLZE) is on track to be adjusted free cash flow positive in Q4 2025.
- The company received industry recognition for cloud security and technology innovation, including an award for B2 Overdrive.
- Backblaze Inc (BLZE) has successfully moved upmarket, securing multiple six and seven-figure deals, demonstrating the platform's capability to support larger customers and use cases.
- B2 growth is expected to be between 25% and 28% in Q4, which is below the 30% target set at the beginning of the year.
- Net revenue retention (NRR) for Q3 was 106%, a decrease from 109% in the previous quarter.
- The company faces variability in data storage needs from large AI customers, impacting predictability.
- Operating expenses were 71% of revenue, though improved from 92% a year ago, indicating ongoing cost management challenges.
- Backblaze Inc (BLZE) is undergoing a phase two go-to-market transformation, indicating that previous efforts did not fully meet expectations.
Hello and thank you for standing by. My name is (Inaudible) and I will be your conference operator today. At this time, I would like to welcome everyone to the Backblaze Third quarter 2025 earnings call.
(Operator Instruction) I would now like to turn the call over to Mimi Kong, Investor relations. Mimi.
Thank you. Good morning and welcome to Backblaze Third quarter of 2025 earnings call. On the call with me today are Gleb Budman, Co-Founder, CEO, and Chairperson of the board, and Marc Suidan, Chief Financial Officer.
Today Backblaze will discuss the financial results that were distributed earlier.
Statements on this call include forward-looking statements about our future financial results, the impact of our go to market transformation, sales and marketing initiatives, cost saving initiatives, results from new features, our ability to compete effectively and manage our growth, our strategy to acquire new customers, retain and expand our business with existing customers, and the impact
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