Backblaze, Inc. (NASDAQ:BLZE) Q4 2022 Earnings Call Transcript

GlebBudman: So, partnerships are a strong source of business for us. We have over a 100 technology partnerships and we have mentioned that they are responsible for helping us generate over a third of all the revenue in Backblaze B2. We partner with companies like Fastly, and CloudFlare, and Digital Ocean, and Commvault and Veeam and many others. We are always looking to consider a wide variety of partnerships to drive sales and to enhance shareholder value. So, happy to consider other ideas. If you have any specific ideascertainly feel free to email uspartnercontact@backblaze.com, always happy to hear additional ideas.

James Kisner: Alright, another one for Gleb. Another couple of questions for Gleb along the same kind of topic. Is your team developing any artificial intelligence features or products to integrate in your cloud services with AI becoming the focal point of the industry, what is the plan to leverage this and your offerings to customers? How would it affect the growth of the business going forward?

Gleb Budman: So AI is obviously a big conversation right now and we certainly help many of our customers today that, leverage AI for their products and platforms and for their customers. AI is used by a number of our partners for things like text-to-speech transcription, language translation, object recognition, celebrity recognition, many other use cases. We have partners who do these things and leverage us for the storage cloud component. So all of these things on which you do AI are our data. And as a data storage provider, we are pretty well situated to benefit from the explosion in AI in general. AI requires a lot of data to get trained, AI also creates a lot of data and Backblaze tends to benefit from both of those trends.

I will say that, we also, from a product functionality perspective, we highlighted on our blog not too long ago, one of our team members showed how to actually build an AI training model, using AI tools that are out there and using Backblaze B2 as the storage cloud for all the datasets for the training model. And it is all outlined on our blog, so you can try that for yourself if you want. It is called stable diffusion and Backblaze, create a master piece for a bucket of your own images. So give a shot if you are interested in experimenting with how you could use Backblaze. The Backblaze of the search file along with all the AI tools. As far as our only plans for building out functionality, we are certainly even intrigued by the opportunities and look that some of the interesting possibilities there.

James Kisner: To what extent is Backblaze used as a data lake, a central place for organizations, raw data to be filtered into the places like Snowflake? Again, this one is related to.

Gleb Budman: Yes. We have many customers who use us a data lake. I mean, even which is a customer example that I gave earlier in this call. Deltic actually has a data link of billions of files that they use and they mine and they analyze and that they are leveraging Backblaze for that data lake and they have called Backblaze an ideal solution for them for that purpose. So it is certainly something that we help customers with today and that is certainly something that we see as a growth opportunity in the future.

James Kisner: As someone that went shopping for desktop hard drives to shift to Backblaze during the shortage. Does Backblaze have plans to source more components from the U.S. as overseas market conditions and availability fluctuate?