Backblaze (BLZE) Citizens JMP Technology Conference 2026 summary

Business performance and transformation

• Revenue growth for B2 Cloud Storage accelerated from 21% to 24% year-over-year, with free cash flow margin improving from -13% to +11%.

• Rule of 40 score increased from 9% to 35% in one year, reflecting improved financial health.

• Ongoing efforts are focused on further improving sales productivity and achieving higher growth targets.

• B2 Cloud Storage is now the majority of the business, with ambitions for faster growth and healthy economics.

Product innovation and market positioning

• New features for computer backup, such as Advanced Installer and Command Line Interface, target managed service providers (MSPs) to stabilize business customer count.

• Computer backup segment aims to offset 10% annual churn with 7% new customer additions, seeking net stability.

• B2 Neo enables white-labeling for Neocloud providers, leading to the largest TCV deal to date.

• Overdrive, a high-performance storage solution, and Flamethrower, a startup credit program, are enhancing brand perception and driving new customer engagement.

Neocloud opportunity and strategic deals

• Neocloud market is projected to grow 46% annually to $230 billion in five years, with storage representing a $14 billion opportunity.

• Many Neoclouds use less reliable open-source storage, creating demand for more robust solutions.

• Largest TCV deal expected to add 300 basis points of growth by FY2027, with development work benefiting future deals.

• Expansion within existing Neocloud customers is seen as a key growth lever, with momentum building as field sales teams gain confidence.