Backblaze (BLZE) investor relations material

Business overview and revenue segments

• Operates as a pure-play cloud storage provider, focusing on storage rather than compute or networking.

• Offers storage at approximately 80% below hyperscaler prices, with an innovative software layer managing data efficiently.

• Revenue split: 60% from B2 cloud storage (growing 24% annually), 40% from legacy computer backup (flat to slightly declining).

• B2 cloud storage has about 120,000 customers; computer backup serves around 400,000 customers.

Growth drivers and customer trends

• Data proliferation and the AI boom are fueling rapid growth in cloud storage demand.

• Vertically integrated with over 330,000 high-capacity drives in company-operated data centers.

• Shift from consumer/small business to larger enterprise and neocloud customers, with 51% YoY growth in $50K+ ARR customers.

• Average deal size for large customers now exceeds six figures, with some $1M+ ARR customers and a recent $15M TCV contract.

Go-to-market strategy and sales evolution

• Transitioned from product-led, self-serve growth to building a direct sales motion targeting larger customers.

• Large customer deals (>$500K ARR) are now tracked, averaging one to two per quarter, with some quarters seeing up to three.

• Guidance remains conservative, not assuming additional large deals for the rest of the year.