Backblaze, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 16% year-over-year, reaching $36.3 million compared to $31.3 million in the same period of 2024. For the first half of 2025, total revenue also grew by 16%, amounting to $70.9 million, up from $61.3 million in the prior year. The company’s gross profit for the quarter was $23.0 million, representing a gross margin of 63%, an improvement from 55% in the previous year. The net loss for the quarter narrowed to $7.1 million, or $0.13 per share, compared to a loss of $10.3 million, or $0.25 per share, in Q2 2024.
The company experienced notable changes in its operational metrics, with a significant increase in customer engagement. Backblaze reported a net revenue retention rate of 109% for the total company, down from 114% a year earlier, while the B2 Cloud Storage segment saw a retention rate of 112%, down from 126%. The total customer count surpassed 500,000, with the company managing approximately 5 billion gigabytes of data across more than 175 countries. The B2 Cloud Storage revenue increased by 29% year-over-year, driven by both upselling to existing customers and new customer acquisitions.
Strategically, Backblaze launched its B2 Overdrive service, a premium cloud storage solution aimed at data-intensive workloads, and introduced enhanced cybersecurity features. These developments are part of the company's ongoing efforts to expand its market presence and cater to enterprise-level clients. The company also amended its lease agreements to support infrastructure expansion, which is expected to commence in 2026. Additionally, Backblaze announced a share repurchase program of up to $10 million, aimed at mitigating the dilutive effects of stock-based compensation.
In terms of financial health, Backblaze reported cash and cash equivalents of $32.2 million as of June 30, 2025, down from $45.8 million at the end of 2024. The company’s total liabilities increased to $106.4 million, up from $90.9 million at the end of the previous year, primarily due to increased lease obligations. The company’s operating cash flow improved to $8.5 million for the first half of 2025, compared to $5.6 million in the same period of 2024, reflecting better management of expenses and a focus on larger contracts.
Looking ahead, Backblaze remains optimistic about its growth trajectory, emphasizing its commitment to investing in research and development to enhance its platform and expand its customer base. The company plans to continue its focus on direct sales efforts and partnerships to drive further growth, particularly in international markets. However, it acknowledges potential risks related to market conditions and competition that could impact its future performance.
About Backblaze, Inc.
Backblaze, Inc. provides cloud storage and backup services through its purpose-built Storage Cloud platform, designed for ease of use, affordability, reliability, and performance. Its core offerings include B2 Cloud Storage, an Infrastructure-as-a-Service solution for scalable data storage, and Computer Backup, a subscription-based service for continuous device backup. Serving over 500,000 customers globally across industries, Backblaze leverages a self-serve and direct sales model supported by a broad partner ecosystem.
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