The following is a summary of the Backblaze, Inc. (BLZE) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Backblaze reported Q3 revenue of $32.6 million, a 29% increase year-over-year, with B2 Cloud Storage contributing $16.2 million, marking a 39% increase.

• Adjusted EBITDA was $3.7 million or 12% of revenue, showing significant improvement from -3% the previous year.

• The company aims for strong financial positioning with cash, investments, and restricted cash totaling $25.6 million at quarter end.

Business Progress:

• New data center region announced for Canada to boost data sovereignty for Canadian customers.

• Opti9 partnership to leverage the largest Veeam Managed Service Provider in Canada for enhanced service delivery.

• Significant growth in data stored by AI customers, doubling year-over-year with significant revenue contributions from this segment.

Opportunities:

• Expansion into the Canadian market presents opportunities for increased data sovereignty services for regional customers.

• Aggressive cost-cutting and strategic restructuring of their go-to-market strategy to fuel growth and profitability.

Risks:

• Churn seen early in the quarter, affecting B2 Cloud Storage revenue.

• Cost-cutting measures include a 12% reduction in workforce, which could impact operational efficiency if not managed carefully.

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