About Backblaze and Important Investor Information
Backblaze, Inc. (NASDAQ: BLZE) is a leading provider of cloud object storage solutions designed to support artificial intelligence (AI) infrastructure and large-scale, data-intensive workloads. For more than two decades, the company has combined advancements in hardware engineering, cloud software, and operational expertise to build a storage platform that delivers high performance, scalability, and cost efficiency without locking customers into proprietary ecosystems.
As organizations increasingly adopt AI technologies, machine learning, analytics, and cloud-native applications, the demand for scalable and affordable storage continues to grow. Backblaze has positioned itself as a key infrastructure provider by offering an object storage platform capable of managing massive amounts of data while maintaining predictable pricing and reliable performance.
Today, more than 500,000 customers rely on Backblaze to securely store, protect, and manage their business-critical information. These customers range from individual professionals and small businesses to large enterprises, software developers, media organizations, educational institutions, and technology companies operating in over 175 countries. Through its cloud platform, Backblaze supports hundreds of millions of end users by providing dependable storage services for applications requiring rapid data access, high availability, and long-term durability.
The company’s platform has become increasingly important in the AI era, where organizations require storage systems capable of handling petabytes and even exabytes of data generated by AI training models, inference workloads, media processing, scientific research, and enterprise applications. By focusing on openness, affordability, and scalability, Backblaze aims to help customers modernize their infrastructure while avoiding unnecessary complexity or vendor lock-in.
Forward-Looking Statements
This announcement contains forward-looking statements as defined under the U.S. Securities Act of 1933 and the Securities Exchange Act of 1934. These statements describe management’s expectations regarding future events, financial performance, business strategy, operating results, market opportunities, product development, customer growth, and long-term business objectives.
Forward-looking statements generally include words and phrases such as “anticipate,” “expect,” “believe,” “estimate,” “plan,” “intend,” “forecast,” “project,” “target,” “may,” “could,” “should,” “will,” “likely,” and similar expressions that indicate future expectations rather than historical facts.
Such statements are based on management’s current assumptions, market observations, historical experience, and expectations regarding future developments. However, because these projections relate to future events, they involve known and unknown risks that could cause actual results to differ materially from those described in this release.
Several factors may influence the company’s future operating and financial performance. These include its ability to successfully execute sales and marketing initiatives, attract new customers, retain existing customers, and expand relationships with larger enterprise clients. Continued growth in customer data volumes and increasing adoption of AI-powered applications are expected to drive demand for cloud storage, but the pace of this growth may vary depending on market conditions.
Rapid technological change also presents both opportunities and challenges. The AI industry continues to evolve quickly, requiring ongoing investment in infrastructure, software development, and product innovation. Success will depend on Backblaze’s ability to introduce new capabilities, improve existing services, and maintain competitiveness in a market characterized by constant innovation.
Competitive pressures remain an important consideration. The company competes against both established cloud infrastructure providers and emerging storage vendors, many of which possess greater financial resources, broader product portfolios, or larger customer bases. Maintaining market share will require continuous innovation, effective pricing strategies, and the delivery of high-quality customer experiences.
Operational risks also exist. The company must continue expanding its storage infrastructure while maintaining service availability, protecting customer data, and ensuring platform reliability. Potential service disruptions, cybersecurity incidents, software defects, hardware failures, or network interruptions could adversely affect customer confidence and financial performance.
Supply chain conditions, particularly those affecting servers, storage hardware, networking equipment, and data center infrastructure, may also influence the company’s ability to expand capacity efficiently. Likewise, changing international trade policies, tariffs, and geopolitical developments may affect equipment procurement, operating costs, or customer demand.
Backblaze also faces risks related to hiring and retaining highly skilled employees, particularly engineers, software developers, cybersecurity specialists, and cloud infrastructure professionals. Continued access to experienced talent remains critical for supporting product innovation and operational excellence.
Broader macroeconomic conditions—including inflation, interest rates, economic slowdowns, regional conflicts, changing regulatory requirements, and fluctuations in capital markets—may also influence customer spending decisions and business performance.
Because of these uncertainties, investors should not place undue reliance on forward-looking statements. Actual financial results, strategic achievements, customer growth, or operational performance may differ materially from current expectations.
The company undertakes no obligation to publicly revise or update these statements following the publication of this announcement unless required by applicable securities laws. Investors are encouraged to review Backblaze’s filings with the U.S. Securities and Exchange Commission, including annual and quarterly reports, for additional information regarding the risks and uncertainties affecting the business.
Understanding Non-GAAP Financial Measures
Alongside financial information prepared under Generally Accepted Accounting Principles (GAAP), Backblaze reports several supplemental non-GAAP financial measures intended to provide investors with additional insight into the company’s underlying operating performance.
Management believes these alternative performance metrics help remove the impact of certain non-cash expenses, one-time items, restructuring costs, acquisition-related expenses, and other unusual events that may not accurately reflect ongoing business operations. While these measures should not replace GAAP financial information, they may help investors better evaluate operating trends, compare results across reporting periods, and assess the effectiveness of management’s long-term strategy.
The principal non-GAAP metrics reported by Backblaze include adjusted gross profit and adjusted gross margin, adjusted EBITDA and adjusted EBITDA margin, non-GAAP net income or loss and earnings per share, adjusted free cash flow, and other adjusted operating expense measures.
Adjusted gross profit excludes selected expenses such as stock-based compensation, depreciation, amortization, and restructuring charges to provide a clearer picture of the profitability generated from the company’s core cloud storage services.
Similarly, adjusted EBITDA removes financing costs, taxes, depreciation, amortization, stock-based compensation, foreign currency gains or losses, restructuring expenses, legal settlements, and certain non-recurring items. Management believes this measure better reflects underlying operating performance and facilitates meaningful comparisons with previous reporting periods.
Because future non-GAAP guidance depends on unpredictable factors—including stock compensation, hiring activity, market conditions, and other variable expenses—the company cannot provide precise reconciliations between future GAAP and non-GAAP results without unreasonable effort.
Accordingly, investors should evaluate both GAAP and non-GAAP financial information together when assessing the company’s overall financial condition, operating performance, and long-term growth prospects.
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