Jason Ader: Yes, thank you. Hey guys, just a few ones for me. First off, could you just remind us of the specific details on the price increases for both computer backup and B2?
Gleb Budman: Yes, the details on B2 were only for pay-as-you-go customers. So our customers that are locked in on B2 Reserve or other committed contracts had no impact. And it was 20%. And then on our computer backup side, what we were really doing is taking our EVH, our extended version history product, which was $2 per month, and we were bundling that in. So we’re adding $2 per month to the accounts for all those that didn’t have it. It was a very popular product already, so it was only for those who didn’t have it. And then we just did a little bit of rounding here and there to make it a market-friendly price. And then we have our regular discounts for one year and two years.
Jason Ader: What percentage of customers didn’t have EVH?
Gleb Budman: We’ve never shared the specifics there, but what I’ll say is EVH had good adoption. I mean, it was definitely a material percentage of the customers that had adopted it, but it was significantly less than half of the customer base that had already taken it. And it was getting good adoption continuing, which was why we felt like it was a good option to include it in because customers liked it.
Jason Ader: So now it’s just completely baked in. When somebody signs up for this product, it’s the Getty.
Gleb Budman: Exactly.
Jason Ader: Okay, good. All right. And then as we look forward, what is the outlook for the computer backup business? You’re having a good year this year. I guess a lot of that must be due to the price increase. How should we think about next year, just broadly speaking? Do you think they — I know you’re going to give more specific guidance, but do you think the growth rate could moderate somewhat just because of the impact of the price increase won’t be as material in 2024? Just help us think through some of the puts and takes on computer backup in 2024.
Gleb Budman: Well, as we looked at the puts and takes, as you described it, we’ve said that we’re going to have a growth rate in the upper single digit for computer backup. So that would include new accounts, additional subscriptions, and the price increase for Q4.
Jason Ader: For Q4, got you. But for next year, I was thinking, yes.
Gleb Budman: Yes, I think for next year, one of the things is that the price increase is still going to be rolling out for computer backup, like Frank said, over the course of two years. So all of the monthly customers will have already on it now, but the one-year customers and the two-year customers will continue to be seeing the price increase over the next two-year period.
Jason Ader: Okay, so the single-digit growth that you talked about for this year, and I think you all talked about it for next year as well. So at this point, that still holds, it sounds like.
Gleb Budman: Well, we’ll give that growth kind of outlook in the February time frame.
Jason Ader: Okay. Okay, good. And then the last question for me is just, you talked about sort of the inflection point in growth in the business in Q4, and then moving into next year. Can you just sort of rank order the drivers there that is creating this inflection point?
Gleb Budman: Oh, sure. It’s always the business itself, the new logos that are coming on. It’s always growth and existing business, which we call amplification B2, and added subscriptions and computer backup, and then the price increase.
Jason Ader: Okay, good. And, okay, and the B2 reserve, is that part of that? Is it just that type of thing?
Gleb Budman: Yes, yes, because it’s continuing to be a larger and larger portion of our growth.
Jason Ader: Okay, that’s the amplification piece.
Gleb Budman: No, B2 reserve is the, when it’s sold to our resellers, it’s usually when customers are taking a year contract for a stated amount of storage, and that’s bundled in with the resellers, other products that they’re selling. And it has a different revenue recognition, if you recall.
Jason Ader: Okay, thank you guys.
Gleb Budman: Thank you.
Operator: There are no further questions online. I’ll now pass the call back over to Mimi for further questions.
Mimi Kong: Thanks to all the analysts joining to today’s call. As I mentioned, we’re going to move on to some great questions that we received from our retail investors on the Say Technologies platform. And our first question is for Gleb. Gleb, I understand that that Backblaze plays mostly in the small mid-market space, but has there been a trend or push toward larger POs or customers?
Gleb Budman: Yes, absolutely. We talked about that we’re focused on the mid-market and that we’re increasingly focused on moving up in the mid-market. And so last quarter, we talked about having 74 customers with over $50,000 of ARR. And this quarter, we continue to add to that number. Compared to our average — our multi-year commit that we signed this quarter. So we are continuing to focus on and move up market with our services.
Mimi Kong: This next question is also for you, Gleb. The company seems fairly quiet and not very strong when it comes to marketing. Are there any plans to up the marketing game to attract new customers and companies to your product?
Gleb Budman: So we actually believe we’re getting good awareness within our target market. About 3 million people annually read our storage-focused blog. We’ve also scaled our presence and our success outcomes at events and trade shows. As I mentioned earlier, our pipeline is the highest ever. And on top of that, we are planning to ramp up our brand-building effort in 2024. And we’ve recently been laying the groundwork to do just that.
