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$ Backblaze Backblaze Announces Third Quarter 2021 Financial Results December 13 , 2021 59 % Revenue Growth in B2 Cloud Storage , 25 % Revenue Growth Overall SAN MATEO , Calif .-- ( BUSINESS WIRE ) -- Dec . 13 , 2021-- Backblaze , Inc. ( Nasdaq : BLZE ) , a leading storage cloud platform , today announced results for its third quarter ended September 30 , 2021 . " We delivered continued strong Q3 growth overall , led by rapid 59 % revenue growth in B2 Cloud Storage and consistent double - digit growth of 13 % in Computer Backup , " said Gleb Budman , CEO of Backblaze . " Our successful IPO in November was an important milestone for the company and a recognition by the markets of the mid - market public cloud storage opportunity . We believe the future is being built on independent clouds , and we plan to use our IPO proceeds to help accelerate future growth in this large and fast - growing market , " continued Mr. Budman . Third Quarter 2021 Financial Highlights : • Revenue was $ 17.3 million , an increase of 25 % year - over - year ( YoY ) . o B2 Cloud Storage revenue was $ 6.0 million , an increase of 59 % YoY . o Computer Backup revenue was $ 11.2 million , an increase of 13 % YoY . • Gross profit of $ 8.8 million , or 51 % of revenue , compared to $ 6.7 million and 49 % of revenue , in Q3 2020 . ● Adjusted gross profit of $ 12.8 million , or 74 % of revenue , compared to $ 10.0 million and 72 % of revenue in Q3 2020 . • Net loss was $ 6.0 million compared to $ 1.9 million in Q3 2020 . • Net loss per share was $ ( 0.32 ) compared to $ ( 0.10 ) in Q3 2020 . ● Adjusted EBITDA was $ 0.8 million , or 5 % of revenue , compared to $ 2.8 million and 20 % of revenue in Q3 2020 . • Cash and cash equivalents were $ 4.7 million as of September 30 , 2021. This does not include net cash proceeds of $ 103 million from our IPO in November 2021 . Third Quarter 2021 Operational Highlights : • Annual recurring revenue ( ARR ) was $ 70.8 million , an increase of 28 % YoY . o B2 Cloud Storage ARR was $ 24.6 million , an increase of 58 % YoY . o Computer Backup ARR was $ 46.2 million , an increase of 16 % YoY . • Net revenue retention ( NRR ) rate was 110 % compared to 116 % in Q3 2020 . o B2 Cloud Storage NRR was 129 % compared to 139 % in Q3 2020 . o Computer Backup NRR was 103 % compared to 109 % in Q3 2020 . • Gross customer retention rate was 91 % compared to 90 % in Q3 2020 . o B2 Cloud Storage gross customer retention rate was 92 % in both Q3 2021 and Q3 2020 . o Computer Backup gross customer retention rate was 91 % compared to 90 % in Q3 2020 . Financial Outlook Based on information available as of December 13 , 2021 , for the fourth quarter of 2021 we expect : • Revenue between $ 17.7 million to $ 18.2 million . • Adjusted EBITDA margin between -10 % to -6 % . Conference Call Information : Backblaze will host a conference call today , December 13 , 2021 , at 2 p.m. PT ( 5 p.m. ET ) to review its financial results . Attend the webcast here : https://edge.media-server.com/mmc/p/ds4nhqpx Register and listen via phone here : http://www.directeventreg.com/registration/event/1851278 Phone registrants will receive dial - in information via email . An archive of the webcast will be available shortly after its completion on the Investor Relations section of the Backblaze website at https://ir.backblaze.com . About Backblaze Backblaze is a leading independent cloud provider that makes it astonishingly easy for businesses and consumers to store , use , and protect their data . With nearly two billion gigabytes of data storage under management , the company currently helps approximately 500,000 customers in over 175