Backblaze Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did BLZE Beat Earnings? Q1 2025 Results
Backblaze posted a notably clean beat to open 2025, with first-quarter results that undercut Wall Street's loss estimates by half and edged ahead on revenue. The cloud storage company reported a non-GAAP loss of $0.03 per share against a consensus estimate of $0.06, while revenue came in at $34.61 million, ahead of the $34.22 million analysts had expected and up 15.5% year-over-year. The primary engine behind the outperformance was B2 Cloud Storage, which grew 23% year-over-year to $18.00 million and secured a record multi-million dollar, multi-year contract from an existing customer that displaced Amazon AWS, with bookings more than doubling year-over-year. Profitability improved sharply, with adjusted EBITDA tripling to $6.35 million for an 18% margin. Management responded to the quarter's momentum by raising full-year adjusted EBITDA margin guidance to 17%-19%, and despite an ongoing securities investigation stemming from a short-seller report, the company projects full-year revenue of $144.00 million to $146.00 million, with B2 growth expected to reach 30%-plus by the fourth quarter.
- B2 Cloud Storage revenue growth accelerated to 23% YoY, up from 22% in Q4 2024
- AI customer count grew 66% year-over-year
- AI customer data stored grew 25x year-over-year
- Bookings more than doubled year-over-year in Q1 2025
- Net revenue retention rate of 113%, up from 112% in Q1 2024
- Gross margin expanded to 56% from 53% year-over-year
- Adjusted EBITDA margin improved to 18% from 6% year-over-year
“Backblaze continued its upward trajectory, and I am proud to report that in Q1, we grew 15% year over year. And we signed our largest contractual commitment consisting of a multi-million dollar contract over a multi-year period. We delivered increased B2 revenue growth of 23%; powerful proof for how effective our GTM strategy has been.”
Backblaze CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Backblaze expects revenue of $35.2 million to $35.6 million and adjusted EBITDA margin of 14% to 16%. For full-year 2025, the company expects revenue of $144.0 million to $146.0 million and raised its adjusted EBITDA margin guidance to 17%-19% (from 16%-18% previously). B2 Cloud Storage year-over-year growth is expected to accelerate throughout 2025: 23-25% in Q2, 25-28% in Q3, and 30%+ in Q4. The company targets positive adjusted free cash flow by Q4 2025, with adjusted free cash flow margin expected to reach approximately 10%.
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Figures from SEC filings and company reports. Not investment advice.