Backblaze (BLZE) Q4 2024 earnings summary

Executive summary

• Revenue grew 18% year-over-year in Q4 2024, with B2 Cloud Storage up 22% and now over 50% of total business; full-year revenue was $127.6M, up 25%.

• Adjusted EBITDA margin doubled to 14% year-over-year, reflecting strong cost management and revenue growth.

• Go-to-market transformation and cost restructuring initiatives drove record sales bookings, including a $1M+ ACV customer win and significant AI customer growth.

• B2 Cloud Storage is positioned as the primary growth engine, with significant momentum in AI and enterprise segments; AI customer data stored grew nearly 10-fold year-over-year.

• Company aims to achieve Rule of 40 metrics, accelerate B2 growth, and reach adjusted free cash flow positivity by Q4 2025.

Financial highlights

• Q4 revenue was $33.8 million, up 18% year-over-year and slightly ahead of guidance midpoint; B2 Cloud Storage revenue reached $17.1 million (+22% YoY); Computer Backup revenue was $16.7 million (+13% YoY).

• B2 Cloud Storage ARR reached $70.2 million in Q4; total company ARR at $136.7 million.

• Adjusted gross margin was 78%, maintaining an all-time high; adjusted EBITDA for Q4 was $4.6 million (14% margin), more than doubling from prior year.

• Non-GAAP net loss narrowed to $3.0M in Q4'24 from $5.5M in Q4'23; full-year net loss was $48.5M, improved from $59.7M in 2023.

• Cash and short-term investments at year-end were $54.9M, bolstered by a $37M secondary offering.

Outlook and guidance

• 2025 full-year revenue expected between $144M and $146M; Q1 revenue guidance is $34.1M–$34.5M.

• B2 Cloud Storage projected to exit 2025 growing over 30% year-over-year.

• Adjusted EBITDA margin guidance for 2025 is 16–18%, with Q1 at 13–15%.

• Targeting adjusted free cash flow positivity and Adjusted EBITDA margin above 20% by Q4 2025.