Backblaze Improves FY23 Financial Guidance

Backblaze, Inc. updated its annual guidance for FY23 as a result of pricing increases and product updates across Computer Backup and B2 Cloud Storage products.

Full-year revenue outlook has been revised to $100 to $102 million from prior guidance of $98 to $102 million, raising the midpoint to $101 million compared to the previous midpoint of $100 million. The company’s guidance range for adjusted EBITDA was also improved to (6.5)% to (4.5)% versus a previous range of (8.5)% to (4.5)%. The company reiterated third quarter revenue and adjusted EBITDA guidance provided on August 8, 2023.

“I am excited that we continue to offer exceptional value to our customers while providing our cloud storage at roughly one fifth the cost of traditional cloud storage providers. Today’s announced pricing and product updates help improve our ability to serve our customers, invest in further innovation, and support the financial strength of the company,” said CEO Gleb Budman. “With these changes, we are targeting a $20 million ending cash balance in 2024 and returning to being cash flow positive by mid-2025.”

For 3FQ23, the company reiterate its prior guidance (no changes):

• Revenue between $25.0 million to $25.4 million
• Adjusted EBITDA margin between (8)% to (4)%

For FY23 revenue the firm expects: $100 million to $102 million
Previous FY23 outlook: $98 million to $102 million
 
For FY23 the firm expects adjusted EBITDA margin: (6.5)% – (4.5)%
Previous FY23 outlook: (8.5)% – (4.5)%