Backblaze, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $32.6 million for the third quarter, marking a 29% increase from $25.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $93.8 million, up 28% from $73.3 million year-over-year. This growth was primarily driven by increased revenue from its B2 Cloud Storage and Computer Backup services, which saw respective increases of 39% and 20% in the third quarter.

Gross profit for the third quarter was $17.8 million, representing a gross margin of 55%, up from 46% in the prior year. For the nine-month period, gross profit totaled $50.8 million, with a gross margin of 54%, compared to 47% in 2023. The company reported a net loss of $12.8 million for the third quarter, an improvement from a net loss of $16.1 million in the same quarter of the previous year. For the nine months, the net loss was $34.2 million, down from $47.5 million in 2023.

Backblaze's total assets increased to $136.2 million as of September 30, 2024, from $131.7 million at the end of 2023. However, total current assets decreased to $31.9 million, primarily due to a significant drop in cash and cash equivalents, which fell from $12.5 million to $3.0 million. Total liabilities rose to $93.4 million, up from $86.7 million, while stockholders' equity slightly decreased to $42.8 million.

The company has initiated a restructuring plan aimed at improving its cost structure, which includes a 12% reduction in workforce expected to incur costs between $4.0 million and $6.0 million. This follows a previous restructuring in early 2023 that resulted in a headcount reduction and associated costs of $3.6 million.

Backblaze continues to focus on expanding its customer base and enhancing its service offerings, with plans for international expansion and new product launches. The company reported a net revenue retention rate of 118% as of September 30, 2024, indicating strong customer loyalty and growth potential. Despite these positive indicators, Backblaze faces challenges, including intense competition from larger firms and the need for ongoing investments in infrastructure and personnel to support its growth strategy.

About Backblaze, Inc.

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