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

Page 9 of 9

GlebBudman: It is a good question, fundamentally, we believe that the primary thing stopping larger customers from moving to B2 is just awareness. We need more of them to look at it and say, I know back wave B2 exists. I understand that it is compatible with S3. I understand that it is not hard for me to switch, and I understand that I will save four fifths of my bill on storage plus dramatically – dramatic savings potentially on egress fees. And kind of getting awareness of that. So we signed customers of all sizes, including the roughly $1 million contract we announced in Q2. And with over 2000 petabytes of data under management, we can support basically any site customer. So we think it is, uh, it is largely an awareness issue and we are working to – working on that with the additional go-to-market efforts that we have talked about.

James Kisner: Alright. Just the last couple more, we are going to squeeze in, I think any plan to implement a glacier style storage option.

GlebBudman: So BackblazeB2 is cloud storage that is roughly the same price as Glacier, but without all the cost penalties and all the complexity of that offering. So, we think B2 is a really attractive option for all the various storage use cases, including for the subset that is just archival data that something like a relationship could be used for. We offer really low cost, while preserving the ability for the data to always be accessible and available, which we think is key since so much of the data, a lot of times customers think, oh, I’m just going to archive, if they don’t need it and then later find out that they actually do need it. We have had many customers who switched over to Backblaze because of doing the frustration of getting stuck inside of glacier when they actually turned out that they needed access to their data. So we believe we provide the benefits of S3 at roughly the cost of play ship.

James Kisner: I guess maybe one more at a time here. When do you expect Backblaze to leading cloud storage? When you think Backblaze to lead the cloud storage industry?

GlebBudman: So while we do not have the revenue scale, of the traditional cloud providers, we believe we are the leading specialized cloud for data storage today with one of the largest storage clouds out there. And we grew about twice the rate of AWS this past quarter. And considering the cloud market is entering this third phase with customers wanting these open cloud solutions, wanting the best free services, we believe we are well-positioned to continue down this path.

James Kisner: Alright. Thanks Gleb for those answers. So before I pass it back to Gleb to close the call, I just want to comment that, we are going to get a couple of institutional investor events this quarter. First being at the JMP Securities Technology Conference in San Francisco on March 7th. And the second is a virtual conference with William Blair, The Tech Innovator Gaters Conference. So we hope to see some institutional investors there. And with that, I will hand back to Gleb to just close-up the call briefly.

Gleb Budman: Thanks, James. And thank to all of you for your interest and for listening into our updates. We look forward to talking with you again in February, actually on our next April and May. Operator, we are now ready to end the call. Thank you.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.

Follow Backblaze Inc.

Page 9 of 9