Backblaze, Inc. has released its financial results for the first quarter ending March 31, 2025, highlighting significant growth and strategic advancements. According to CEO Gleb Budman, the company achieved a 15% year-over-year revenue increase and secured its largest contractual commitment with a multi-million dollar deal over several years, demonstrating the effectiveness of their go-to-market strategy.
Financial Performance Overview
- Revenue: Total revenue reached $34.6 million, reflecting a 15% increase compared to the same period last year.
- B2 Cloud Storage: Generated $18.0 million in revenue, an impressive 23% year-over-year increase.
- Computer Backup: Revenue amounted to $16.6 million, which is an 8% increase year-over-year.
- Gross Profit: Achieved $19.3 million (56% of revenue), an increase from $15.8 million (53% of revenue) in Q1 2024.
- Adjusted Gross Profit: Reached $27.3 million (79% of revenue), compared to $23.0 million (77% of revenue) in Q1 2024.
- Net Loss: Reported at $9.3 million, an improvement from a $11.1 million loss in the previous year.
- Net Loss per Share: $0.17, down from $0.27 in Q1 2024.
- Adjusted EBITDA: Recorded at $6.4 million (18% of revenue), a significant rise from $1.9 million (6% of revenue) in Q1 2024.
- Cash and Marketable Securities: Totaled $53.2 million as of March 31, 2025.
Operational Highlights
- Annual Recurring Revenue (ARR): Stood at $140.8 million, marking a 15% increase year-over-year.
- B2 Cloud Storage ARR: Grew to $73.8 million (24% increase year-over-year).
- Computer Backup ARR: Increased to $67.0 million (7% increase year-over-year).
- Net Revenue Retention Rate: Currently at 113%, up from 112% in Q1 2024.
- Gross Customer Retention Rate: 90%, down slightly from 91% in Q1 2024.
Recent Business Developments
- Contract Achievement: Secured a record total contract value, further solidifying Backblaze’s market position.
- Product Launch: Introduced B2 Cloud Storage Overdrive, optimized for high-performance workloads, including AI model training.
- Strategic Partnerships: Enhanced collaboration with PureNodal, which supports the AI ecosystem utilizing Backblaze technology.
- Award Recognition: Received the NAB Product of the Year Award for Scalable Application Keys, which enhance performance in various sectors.
Financial Outlook
For the second quarter of 2025, Backblaze anticipates:
- Revenue between $35.2 million and $35.6 million.
- Adjusted EBITDA margin ranging from 14% to 16%.
- Basic weighted average shares outstanding of approximately 55.6 million to 55.9 million shares.
For the full year 2025, the company expects:
- Revenue between $144.0 million and $146.0 million.
- Adjusted EBITDA margin to rise from 16%-18% to 17%-19%.
In response to recent misleading claims about its financial statements, Backblaze confirmed through an independent review that all reports were accurate and transparent. Stakeholders are encouraged to access the company’s earnings call and updates for further clarification.
The company continues to demonstrate resilience and strategic growth as it positions itself for future success within the evolving tech landscape, particularly in the AI sector. Backblaze’s commitment to enhancing their service offerings and securing valuable partnerships is set to drive their anticipated upward trajectory throughout 2025.