NASDAQ$BLZE

Backblaze Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2022 financial results, highlighted by revenue growth and strategic initiatives.

Backblaze reported a strong Q4 2022 with a 23% increase in overall revenue, driven by a 44% growth in B2 Cloud Storage revenue. The company is moderating expense growth and targeting adjusted EBITDA breakeven in Q4 of the following year.

  • Total revenue was $22.9 million, representing a 23% year-over-year increase.
  • B2 Cloud Storage revenue reached $9.5 million, a 44% year-over-year increase.
  • Gross profit was $11.7 million, which is 51% of the revenue.
  • Net loss amounted to $14.8 million, resulting in a net loss per share of $0.45.

Headline financials

Total Revenue

$22.9M

Previous: $18.7M+22.6%
EPS (adj)

-$0.27

Previous: -$0.38+28.9%
B2 Cloud Storage ARR

$38.6M

Previous: $26.8M+44.0%
Computer Backup ARR

$53.4M

Previous: $48.6M+9.9%
Net Revenue Retention Rate

113.0%

Previous: 110.0%+2.7%
B2 Cloud Storage NRR

122.0%

Previous: 130.0%-6.2%
Computer Backup NRR

108.0%

Previous: 102.0%+5.9%
Gross Customer Retention

91.0%

Previous: 91.0%+0.0%
Capital Expenditures

$3.29M

Previous: $686K+379.3%
Free Cash Flow

-$6.43M

Previous: -$3.13M-105.3%
Net Income

-$14.8M

Previous: -$9.61M-54.0%
Operating Income

-$13.8M

Previous: -$7.58M-82.7%
Gross Profit

$11.7M

Previous: $9.83M+19.0%
Cash & Equivalents

$6.69M

Previous: $105M-93.6%
Total Assets

$151M

Previous: $164M-7.7%
Stock-Based Comp

$4.04M

Previous: $2.02M+100.1%

Revenue & EPS history

Backblaze · Revenue · Quarterly

$22.9M

Q4 2022+22.6%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Backblaze · $22.8M total across 2 segments · Q4 2022

  • Computer Backup
    $13.3M+11.8%
  • B2 Cloud Storage
    $9.5M+43.9%

Forward guidance

For the first quarter of 2023, Backblaze expects revenue between $23.1 million and $23.5 million, and an adjusted EBITDA margin between (15)% to (11)%. For the full year 2023, the company anticipates revenue between $98 million and $102 million, with an adjusted EBITDA margin between (10)% to (6)%.

Tailwinds

  • Revenue between $23.1 million to $23.5 million for Q1 2023.
  • Adjusted EBITDA margin between (15)% to (11)% for Q1 2023.
  • Revenue between $98 million to $102 million for full-year 2023.
  • Adjusted EBITDA margin between (10)% to (6)% for full-year 2023.
  • Basic shares outstanding of 33.5 to 35.5 million shares.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-3.2%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-5.3%

Avg return

30 days after

36%

8 / 22 earnings

Positive

+42.7%

Q4 2023

Best reaction

-35.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%+68.1%+78.4%
Q4 2025-15.3%-14.0%-19.7%
Q3 2025-6.3%-12.0%-19.3%
Q1 2025+16.0%+17.9%+25.7%
Q4 2024+5.5%-5.1%-21.5%
Q3 2024-14.1%-13.0%-13.9%
Q2 2024+26.4%+24.1%+12.5%
Q1 2024-23.3%-25.3%-38.4%
Q4 2023+42.7%+41.6%+21.1%
Q3 2023+1.8%+7.5%+43.3%
Q2 2023-14.8%-14.8%+34.4%
Q1 2023-1.4%+2.4%-2.2%
Q4 2022+13.8%+2.0%-17.0%
Q3 2022-5.5%+3.2%+11.2%
Q2 2021-3.6%-3.2%-17.9%
Q2 2022+1.6%+9.2%-11.2%
Q1 2021-7.8%-5.2%-9.8%
Q1 2022-24.7%-32.3%-40.1%
Q4 2021-35.7%-32.4%-25.9%
Q4 2020-12.8%-19.7%-36.7%
Q3 2020-12.8%-19.7%-36.7%
Q3 2021-4.6%-20.4%-33.2%
Q2 2020
Q1 2020

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