Backblaze (BLZE) 15 Feb 242023 Q4 Earnings call transcript

Good day, and welcome to the Backblaze's Fourth Quarter and Fiscal Year 2023 Earnings call. All participants will be in listen-only mode. (Operator Instructions.) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions.) This event is being recorded. I would now like to turn the conference over to Mimi Kong, Investor Relations and Corporate Development. ahead. go Please

afternoon, Fiscal Good to Fourth Backblaze's Thank XXXX and Earnings and Year call. Quarter you. welcome

sales On the These this Patchel, that call with those are our CEO included uncertainties to rely no business risks with and actual customers. our factors could except this not including and law. as price All future financial me and use today annual are differ as new distributed were forward-looking other of on Backblaze discuss on materially, earlier predictions XX-K our make we based risk of manage forward-looking to on update Board; are to existing that our IPO statements marketing and and offerings subject changes, and the results, cause our from results Officer.Today, and results features Form and our proceeds, that customers financial in filings.You report ability in financial we call statements new statements and Statements by our our Gleb described the events. and are of that statements and undertake today, include assumptions this and and forward-looking of Financial on Frank as of beliefs on impact partnerships Chief required obligation afternoon. them, future our expand should will effectively the acquire to call and initiatives, results Chairperson retain strategy Budman, compete to growth Co-Founder, about our

X-K GAAP Reconciliation release, in today be to in with SEC. results non-GAAP substitute measures include of should Form Our a GAAP the filed which with These found considered results. measures. to our as not will non-GAAP our furnished earnings discussion today for and was our addition non-GAAP financial may be

also see related page and You retention gross posted our of customer be metrics of definitions NRR, the call.Please comments presentation rate, or Investor after to which Relations our ARPU. can release slide find in number our for a will the also additional to as presentation webcast, also such press customers

Before to now mention latter investors joining in turn calls, addressing Technologies to call gathered for call, questions through I also our as would portion turn Gleb, the like I will I'd we over the platform. prior the that Thank in call from to the like be to us. over that we of Gleb. And Say you

for joining Thanks, everyone, us Mimi, and thank you, today.

strong BX are QX product delivered having Storage with particularly very XX% year-over-year. and Cloud our We results. growth new growth revenue features pleased of with We accelerated

financial dramatically first strength also cash adjusted EBITDA We public demonstrated continued profitability as reduced company a as and the we usage. reached time for

year take are to In addition, results. to at moment on least hand.I $XX cash a exit with of reiterating key million want our forecast to some highlight we this

significant delivered we innovations. First,

Second, up we've the to continued mid-market. move in

we've I time just foundation to about shift we're strong forced instead used our beating end than Finally, is of X%, year a businesses us want moment suit in being their larger talk a less to a $X our We've cash we provide to about seeing come QX, to build that profitability they the the cash, to seeing guidance because shift.We're traditional position. positioning achievements in adjusted three financial want providers take accomplished closed in million platforms. needs the stay to of used cloud same our of cloud X%, These using best us that market. advantage for the while of prior We our take million achieved improving usage. the ahead, $X.X the accelerated in and this of to rate EBITDA and high overall at improving the XX% while dramatically of growth quarter. prior which we

about unique to solutions it's businesses, optimize into what use some functionality. these fit case. For specialized They're their able of

are For indirectly. traditional to companies customer technical their and BX. providers some, with platform providers. increasingly egress, open excessive our that able egress of complex back from expensive use performance are ecosystem. of cloud turn, Backblaze, open massive the were and savings grow $XXX,XXX into platform and to providers fees. the that which help to and $XXX,XXX financial. over best-of-breed integration Backblaze, migrating wanting to support. companies, and won't each in innovation. Backblaze previous with to we're with invest customer to away year. These achieve in egress customer global best-of-breed end free for other are develop scalable is They cloud switching their save referred commitment that to year this compete grow this partners in And they top couldn't customers some one streaming cloud CDN restraints an download users. The to to traditional business, Even storage media a it's cloud the able share to to open use can them data Together which about reasons Backblaze.Turning cloud by base with constraining as positioned are our more Download others story it's ecosystem, trust highlights the can our that are that great well switch platforms.Our with due drive providers on cloud growth which they value By customer seeing from was convinced and leaving of fees stored AWS, limitations deliver was a features data.I interoperability, their to previous solution movement their fees, their free impressively, easy this the and is want industry Their to approach. customers the keep That's on customer built defined XX by functionality, a service million to over affordability companies that of with with was

on from We providing legacy businesses functionality need solutions. move are and to performance focused the away

QX, In efficiency as furthering this storage is storage cloud de at to Also, the commitment and customer, on of scale customers QX, BX, to which greater uniquely that support BX without data the launched we open use hidden by to the than Backblaze for at For in team enables of Backblaze are to ecosystem how upload we faster stored positioned the Xx offering provider their only open for or the platform egress We XX% storage the cloud.We innovating they is finding introduced customers center to where shard cloud our cloud over choose. be stash cloud believe software. performance facto has we of storage fees gotchas. to Backblaze free up every greater and the Amazon speeds data up amount and XX hardware years, excelled SX. in

computer hundreds month.With availability, done, We're recently backup We our the gives enterprise have weeks administrative is of more early for This few easily IT into to admins only that also received additional their enterprise I'm but I'm excited control, we're per we've thousands really businesses feedback manage or for what's computers. team launched greater an proud by computer meet a encouraged of but the compliance and has control. set even a for what backups from customers. next. ability $X per requirements tools feature

use platform Our cases. team our and enhances new performance the continually serve to our of improves products

success. with us For and integrated instance, with companies of our while providers, already a number team GPU succeeding compute leading on we're AI isn't are that resting

storage. increased and demand our to innovate evolving architecture on AI-related the better to serve continue of storage workflows We

industry. bring addition protection excited about data the of at the We Chief former and are XX David Ngo in coming to as and lead Officer. also CTO team even experience Product Metallic David to and storage brings David for aboard strategic new over help innovation our of partners. the our the customers leadership and of is Commvault greater years is

for delivered ourselves we've talk upmarket. and So, like to moving I'd about significant innovation up set more.Next,

larger continue of channel helps program. is $XXX,XXX-plus latter deals. smaller to increase channel our identify that First, QX. and closed our build and to velocity our A we example great we a in with deals Working the both deal on to partners close

that our to of approach partners data their identified NFL update looking One to team was storage. channel an

of helped improve you generated way work and the you the together that customer Bowl during with video and of many we with this our Working football of data data. the weekend, other professional watched partner, they As last imagine incredible games. all probably can simplify channel amount Super

partnership launched lets BX the without Backblaze cloud any the of Powered or Program. add Powered managing storage storage new we on businesses by by our hassle product of offerings Second, complexity front, their just cloud infrastructure. to

the partnerships For their customers service these edge it transcoding to example, an compute help offerings, excited types early they by businesses for get features, winning because are distribution to are storage include we platform Powered expand the with channels a larger access customers larger for discussed, performance customers, of and provider. delivering easy we and to make provider I'm cloud their as I've Backblaze have access looking and best-of-breed new and for. successfully provide deals with cloud been customers and customers.Finally,

the winning sales program. toward next these adding As we're at growing the step new company customers accordingly, our approach and updating sales commission headcount including takes scale,

the market innovate, for cash support dramatically call explosive open we time, of our to the cloud. continue a our will the continuing and new proud financial company pass sales to we've be the is in the same Patel, results. very full its Nilay have accelerated right data the serve. growth, Backblaze go-to-market cases.I'm the to to ensure search At up the the usage.I'll path help cases focus we the in ground aimed review SVP board, revenue great up helps I executive initiatives, that will underway charts the currently benefits Nilay We led to VP adjusted to from beyond and during of Nilay time in pass of achieved hiring position help are Head of Sales, storage smooth is position An and the approach, profitability Frank Sales enhancing and by the to a transition. what also open current our time as moving BX on of Sales. accomplished efforts improved XXXX public is turn a our our AI build as million. use dramatically Nilay for a reduced which new our as now the reap use to the its AI organization Once his now $XXX customers cloud customers financial agreed go-to-market to baton managing which is lead EBITDA company first up of and we to growth

everyone, us Thank today. you, Gleb, thanks, and joining for

to fourth two unless referring will growth adjusted our noted, year-on-year. are release. to on We is which the our I quarter otherwise metrics: and focused key Turning results, revenue growth be in earnings non-GAAP metrics EBITDA, remain and defined financial mentioned rates

Quarter growth. BX including increase backup introduction be year-over-year. XX% Our of changes revenue determined million, storage revenue pricing impact X revenue cannot growth. The $XX.X made of the for to XX% of exact QX was the represents Computer a cloud totaled changes. our we increase million, QX the $XX XX% offerings. number million, reasons, totaled $XX.X an of product reflecting reflecting price

However, of X.As a computer Quarter both have it we believe organic BX common churn. in growth price for the without price see been backup an cloud would to customer storage to and similar is increase result the adjustment, increase

any We basis value revenue customer margin due not did prior XXX and our gross and history higher the our a of Quarter and consistent backup retention, implementation. free how from the did was data differentiates in prior or was total XX%, have rate which We which extended products offering XXX%, sequentially expansions. reductions utilization us over of strong services see gross with Cloud likely to price customer illustrated popular version we of points is However, to our customer announcement and incremental X down company due believe adjusted P&L, increase, in at XXX%, data churn increase our or the for This lesser further features company. of at expected. XX% incremental BX license the our total retention continued and net all speaks Xx our center strong and across to primarily quarter.Working the to increased by rate price which see Quarter the retention to about extent, these the competition.Turning X computer and storage improved NRR egress NRR, XXX% was at some to

our of the This EBITDA compares The revenue $X.X and at of is as in cash, QX this itself revenue million we a a as in a to totaled at restricted negative million of beat guidance positive operating with beat This And million X% due loss favorably profitability prior end company. XXXX. $X.X a and Gleb was the first of have Cash and headcount-related expenses. to $XX.X was QX lower-than-expected growing X%. of quarter, the balance of time reached public of the X or XX% Quarter a or savings.Turning sheet. significantly adjusted $XX.X short-term XXXX This investments, revenue EBITDA high limited adjusted mentioned, of the to increase benefited result the end including from versus higher churn million XXXX. end

Our represents our in for of the at of quarter million Quarter cash in X.Moving guidance. over $X $X.X on which XX% usage usage came reduction a to significant million, from

the For expect revenue range we to million $XX of the first be in to million. quarter, $XX.X

X%, expenses adjusted in EBITDA typically payroll due to a quarter reflecting compensation-related is QX and expect a performance and continued quarter We strong between for margin X% other expenses. taxes high which

is full year-over-year revenue to is in this adjusted narrowed range EBITDA. adjusted million XXXX, for and $XXX million, guidance Because guidance, revenue confidence guidance XX%. year we the range our of growth.The full XX% the $XXX to X% EBITDA the with reflecting midpoint year have For

year-end XXXX, million at we capital principal payments cash. having XX% leases about This forecast project in For $XX includes revenue. on least of lease of cash

in options. We an about additional also ESPP $X.X anticipate and exercising amount proceeds employees from stock million

from $X.X stock in received we reference, Quarter million proceeds X. For option

to XXXX, breakeven flow the pass to mid-XXXX.I back by now will cash we forecast beyond Looking call continue Gleb.

Thanks, Frank. delivering excellent innovation, and driving EBITDA achieving product growth adjusted team has done In the an revenue summary, profitability. job

take the are on ready on cloud ahead market capture positioned our the Operator, customers ecosystem. to call. mission help our We leverage uniquely and to execute we're to open now massive opportunity questions

Instructions.) (Operator We will Craig-Hallum. session. Chad question-and-answer question first from comes the with Our Bennett begin now

was the leverage playing job the on Good to phenomenal. out. quarter. Great number I see EBITDA mean that

Just minimal a in talked to terms as of about to you result the price -- Frank, I churn know really increases uptick nonexistent of date. in

the of guide, the in, that two segments that just there for directionally segments, Just about first anything relative to growth thinking factoring you And to expecting change on is the respect churn rates Fiscal what of you in two then or either to on any the kind those with QX business? blush are at in there XXXX? you're XXXX difference did in Fiscal side

the for thanks question. Chad,

you prior a first. address didn't in because some to very that we the churn didn't me have. the pleased rate were would and with and some QX. have have surprised our customer we some when increase churn, increase Let We you churn price had think pleasantly would you retention had in we announcement expected which was increase And as exactly implementation, at the the at which have and increase same see

good. very was that So

we January four with with have months over So, experience now five. it over of

in So, any we're rate. churn expecting not increase that

about if think So, look you of relatively if we But data XX%, did reduction we certainly have high there the -- and reductions X% will see, very license at remain we company, that X%. we what at in customer range. you -- look did a that have that the at did retention to small

thinking fourth quarter about rates? and two you're how Got terms the relative Frank, that growth it. of in just And then segments, to

Yes.

we our Quarter going kind the increase rate as growth was what X. on of near growth price as go, in without far So, rates think our

high of how at So, increase, side see the pleased in single double the low very increase, better projecting in XXXX, that XXXX. through and year then we're we're we and price digits. range And that organic with were rate digits, XX% price to forward and XX% BX and on the computer we're same growth was low the the in the fiscal backup, or that expecting organic it in with the that's

one maybe then if Gleb. for And could, I it. follow-up, Got

of actually you're into deal it's mid-market. improvement kind the just any seeing you you the up, characterize of speak mid-market? cited couple seeing to of demand the on you're there the a is very characterization you're a seeing it's I wins. BX pipeline mid-market the reserve, you I whether moving two just seeing of use -- and that you more year maybe from maybe ago, magnitude in Gleb, increase growth or highlighted the additional a weren't cases You it or or in But guess, sizes interesting think call, few times, can

question, said Frank growth because Yes. Chad. about for by to talking rates was the Thanks the businesses a XX%. high the the maybe say think and I way, just of And

sure number, through And came is make it to high so, audio, being not think a it's across I growth which XXs that just a organic the XX% high rate.

So just heard correctly. to make sure was that

upmarket important These they the they've typically move that some storage areas strong where which do the We're in that egress they're We are a backup we're to and we're seeing rate.In exit media fact are in so need growth we're application for of a more is the The storage, an to general, we're seeing still are BX, one very on from for providers component leg arm very often seeing we're obviously that contracts scale and movement. charged in the on I able are movement excited an of combination a that about upmarket various customers, a and in market other that clouds, like and compute customers them the seeing customers. to want of they the customers, or of some XX% in around application storage seeing terms ways. data traditional because customers is gotten XXXX, growth savings that for We're off and in providers, in think market to be we're particular that the for entertainment committed attraction. not and seeing seeing seeing storage movement, that. CDNs of be using cloud

media that's $XXX,XXX, use an case. an probably example some the so, deal company, of a application that minutes larger the that's call developer. few type on seeing we're gave And I traction. the more it's storage And a where It's but saved customer streaming the application around ago

The with Jason next Blair. question from comes William Ader

Yes.

for customers, coming you question Are sense media you? investments that upmarket of these is salespeople? they case for just you're these made it the are customers. you me Just part a Gleb? talked the just to some the First how of use in of you've for landing us -- streaming finding give about, Is how some

Yes. question, Jason. the Thanks for

we cloud and media at benefit video mark ago music those that large So, a way they have workflows a that, companies of data, volumes that been started that photos, footage, have use significantly and and flows. media the data from because while case has around entertainment typically storage as looking

media we customers with their do archives backups and that and entertainment So, have us.

have them We companies workflows access need one that you their with especially distributed, all more where production become next be, environment are.And some so pre-COVID flow office that it are they work of they that also cloud has data assets to media the doing using entertainment times offerings. means distribution that to do their media regardless and also in actually place and used a media taking us can sit would an of which all cloud together that our in all access where step in that do they much that in storage

for see it an as them. we So, evolution

methods a combination up developing leveraging most basic also they're a us our also publish, entertainment is we archive the content but through actually level we've more the same them has the events. But finally it], a we're continue around then to end terms blogs all that millions lot then motions, finding of being customers. use where a is community, active then to first and layered marketing readers it, it's they lot customers, and that media workflows of come The in [pulling the we which doing backups including attract those to which media archives from of of the where on so, of them, distribution.And production, case our it's of and archive data

So, as other events we such places. at present New Vegas. that Amsterdam NAB other events and Las in York in been media We've media and

traditional with So investing off of of those partner legacy transition the that effort for and help. support they of deals off in been clouds then they or them also with find relationships good to is And we to that. to on-premise they media a that They that sometimes out off and top layers they on, channel need LTO, systems of then want on those bring us, have work companies, where we've the customers. us

a when the I need AI-related is BX Great. quick helpful. then for guess for speed, thought of second Great. side. just or always because That's about just the cases. Gleb we especially used required flash question use being the I on you, some storage And inferencing that talk AI for of Backblaze

So, of on to just just you misperception talk part? a my whether can kind it's

obviously, run companies flow of to some aspects models, that requires closely our other blog, question. multiple, AI really has -- of is work the multiple workflows of Yes, today. training at lot then and to are very on high-performance And the it's storage not a good at lot of the actually the But on generally the of not with it. optimal which published us a the least AI. that we fits. case lot a we've the And compute. of the published build starts data iterations for different with including data That's a There's use good to speeds development located high workflows model. That use

to around from That itself where will used to before gets BX served original that from and sometimes generating they partnerships it's the place data.We us processing into they of store BX. that put training. the gets for and they data then types processed existing for customers, clouds combination flows two, that AI for they it some back as seen are one, use of other Backblaze use that it's upload of, backups also model follow from the is archive And customers data that the have data. where a locations assets retention and data for into longer-term It's combination to part have, stored customers up application send being cameras, then as information, our with the in sometimes and GPU often we've egress so, workflow it's Then systems those Backblaze. data free of sometimes

for generated of there a it's in help to and is it's the data that still definitely object we which early cases So, and there think opportunities -- use being AI of fit there. some the are amount for storage in we the the cloud tremendous is great some we out a which is have that for not, we're think that AI innings all but

The next question comes Raymond from James. with Simon Leopold

is works? have for This I guys want on question. kind use and follow Or Did of I some in are? on Chiu today you currently that were exposure kind you want of just say what the mentioning on cases just AI? solutions to your just focused AI that Victor to of specifically elaborate of Simon. you up AI for specific functions that the and your features AI initiatives kind kind

Yes. Victor. the Thanks question, for

Gleb. is this So,

to answer So, yes is both. the short

AI look needs, of want of is key AI we're that some locations the that's durable, part that storage to sure be somewhere, customers data a storage of you to delivered needs for it a at value making to top-tier year, we that of key. sure is be and data to that in affordable needs the to If platform their who back other it a all needs providing available did platform delivered first customers them to component last be right? sourced what So fundamentally providing high-performance have we service making to is

the value was investing add BX of helpful to So, to piece which that a stash, built, that to we've shard higher behind way QX, continuing for platform.And performance been platform. is in work, which we launched

X So part sure we're these workflows storage cloud customers as that's is Step that. how how understanding use in kind supporting Step that object of different run our of and to X. making to

are the different as understanding workflows is better.The partnered been and partnered studies around them mentioned, we've there that use we how on partnerships. CoreWeave. We blog I third that mentioned so, with and to on, with Vultr. We and And our working stories thing landscape

of cloud we we head our it clouds is of usage. new as the customers. data them of also hire on Chief the supporting also last at getting product Product product looking is the his Officer, There's I focusing our talked we And sales ecosystem partner then the opportunities David our and focus with, and to their open area So, move this At part customers AI some as for which part entire going have which we head between road I but make help that, a these a lot amount map there's generated. side. initiatives, is GPU easy AI new platform of core, who's of most to about, of data Ngo, it important tremendous that But And us really just once be that. is see use believe cases data. of ways mentioned, in go-to-market around of to job customers additional things, we sales, to kind of providing includes that. beyond both a that for robust their then all We the one. platform do opportunity help It's a

have base. kind around public of and I helpful. from scrutiny guess cloud industry-wide have heard More question. who spending kind cloud entire commentary That's cost we've of industry an their Great. from of optimization one providers increased very a number And I general customer of just kind noted around cloud trend more recently,

if So And curious the case? any kind of just think not, similar do observed why if that's dynamics? you've you

complicated So, I With certainly a seen seen we've a and different the think from confusing that. that lot been that we clouds, and traditional are in -- highly, often well, the been on impact commentary as customers, understand of -- of that they've traditional the what they priced, they're lot the paying it's and for. cloud, priced high to for and are offerings them their have with we've

very customers were unsure heard were bills. many by They cloud I we've from were were paying on.So, always their you're of always going And our spending made that been the always the easy they and Backblaze understand affordable differences transparent. one in and We've say they so, point. is that it for, what been what to surprised dollars think has price where we've

customers that. of think that as effectively, have always I been part So, optimized our

they're that think not as we're a some trends of And to same seeing. so, subject I result, the

in attributed is as a to Frank believe did. QX, to and Now data X% reduction increase we which mentioned, we incremental we in X% the price largely see did licenses that execution

Frank. add is I this one Yes, would item.

greater scrutiny attention the data a cost on play because storage and us there's market. benefits course, good in Of have value we such

and So, that commentary. attention we really appreciate that

comes question next Erik from with JMP. The Suppiger

are you for of much annual And is do that on have AWS customers customers customers, they're of doing typically what new portion hyperscalers? completely, or I'm pricing? just it off off, of off that likes their curious Azure or on contract migrating the customers. off base they're if secondly, are and you larger have how they for those moving of They're sense was their off month-to-month applications, AI I and storage your moving mixture completely. the a then on believe then those applications a are they moving First month-to-month. they're these customer of And just

Erik, of this part first who's the new pricing. on the the is Frank. I'll question, take

group, So, contracts is customers. BX BX in client of the is the on are advance. The on that on base Reserve our it which committed group our they're pay side, the or pay-as-you-go rest

price increase. went they But all on So, were by they unaffected the immediately.

immediately the that quarter. So was beginning that of at pay-as-you-go affected the group

are the graduating them XX% of two year XX% are immediately they they renewal. group, backup year, increase, computer or the approximately either then are upon had one as far and and monthly, As it and

data off And moving it providers about then, Erik, they're or you're And both. and of types. say other question your traditional asking actually off? both the We've is mix whether they're the cloud of customers, their a seen I whether upmarket fully will to migrating for

storage obviously And of is customers have storage, one different important significant they handful So, one a the cloud. networking. a it's who really, scenario of and services, seen don't who have million doing Often, compute need things of that them. being they're inside -- we've traditional

give use of they'll a one were for kept of out other like and their so storage. their or storage. like fully to Cloudflare, network an but much actually They'll for open compute the they migrate default, were part their cloud, for you Bunny other companies whole able Backblaze traditional Vultr that leverage their go them use they'll for increase so, where preferred of to networking then the bill to and they add And use stack.We've and the for because us that and I'll entire by full DigitalOcean us their the their And were made also but their they some as added they by decrease of the (inaudible). out have in data to AWS, freedom use half bill still getting and for side us or data to example, clouds on us Fastly, continue they their but overall someone they cut of money services, infrastructure way, they a paying save switching a customer, the they actually seen CoreWeave Amazon the storage and enough us, able to durability provider also they

of trying kind It their both. what to depends see we So, they're on infrastructure. do with

you partnership? So, work bandwidth is as more the upmarket, for you that move going opportunities and this strengthen to with create to alliance to

Yes.

a of more upmarket, in we're the I doing in part think we're customers. with consultative these discussion so because

know, business. of the are traditional we you as with and doing it. so, large choose have a providers of those moving many doing And having them but also, off cloud they what do, to are they're conversations customers without self-serve that And

of we're you having infrastructure sense forward you, more sense the that how the makes Mr. discussion you your term? And Customer, ones, to future? in With want of strategic do for work you a for long go what as market in

Street question comes Eric Capital with next The from Markets. Martinuzzi Lake

where gross expect XXXX outlook. the curious Yes. full was margin know for the you year? do view, the Good to quarter and I on ranging

gross We Yes. range. be XX% in to before range the we're non-GAAP. our saying going very that say were the was now to mid-XX% be comfortable that upper going And to margin it's previously

of seeing a that X% as we're about point and half improvement is approximately about increase. to the that So, attributed price

Got then did a backup you. [XXX]. And customers $XXX,XXX decline year-end, versus of in were to down I $XXX,XXX computer the you see as

what the is explanation there? So,

the Yes. question. Thanks for

quarter. So, X% earlier, first to of all, mentioned in usage X% the think as I decline Frank saw we license a

will you're heavily future metric is number servicing number in on customer as at six that by retention product the that is What about relevant say talking gross whether something general because is is high stayed it's a going it's that, upmarket into the imagine that of more the into that by driven looking rate. forward number, same we're increasingly us the consistent the focused businesses customer so in at, number customers going So, that customer that which on influenced I that you -- we line, number one can is whereas pays so, particular consumer consumer are treated businesses.And one customer figures.

equal. especially customers all given I are guide, get it. created not the sounds It it's just like

just we the to functionality Exactly, which consumers yes. of and we again, metric. Enterprise customers And not computers, launched of an the individual their number customer help as is mentioned, Control, pure for manage and all licenses what customers' the larger drives are consumer relevant a individual

Securities. Cummins next Riley question with B. The from Zach comes

on the the on quarter Congrats guide.

few structure you your changing moving questions initiatives for me. Gleb, about a some were of and some the salespeople. of for commission talking Just potentially upmarket of

maybe you now? changes potential make outside you ongoing any to can you So, need about leadership sort right upmarket? And change investments move as of that's the talk incremental of

Yes.

this path. So, we've down taking steps been

So, we of you provide. were deals probably us, XX% how our we all it public, when sales-assisted somewhat had that motion and was of business talked that was and nascent for self-serve. but And larger, were remember we seeing were -- about customers customers larger we the from service liking a went we

effort. the stand so, team And sales to putting were be behind more some sales using said start we the focus we a up proceeds going of and to

groups SDRs, changed steps that team funnel stood the sell to and solutions Reserve BX allowed in that executives, account sales the motion. channel team, the terms And way helped We've territories. only up motion of an adding us And we the assist opposed of as were the team through time to done so, and then engineers contracts have outbound an leads sales to We've into guide sales introducing the and also actually divided that built we operations structure, up committed sell was as ability which type aspects that was them staffed of BDRs, two some and well. some it the to sales important the we the in SDR a self-serve of the some up out team. over some things we've of that team team, of

enable So last those the looking organizations and a sell making are years organizations.We're of sell large been sales. number the for sales we've to of over help to to the team changes to two new head

sales a to recs to the that, those number of account have larger addition execs open we to sell senior team for organizations. In on

commission program We we talked about. the that have

have focus operations of things to are we cloud are of And there upmarket. things continuing done some some kind supportive that moving these that the part being entire organizations, so, and doing are as things around others company just and we that other move of customer upmarket. the And in support, of also marketing, are

obligations? me in business, mean, principal you other of Understood. million see end And usage. just the your some improved and Frank, capital Nice the I for through lease just expectations me terms at target this upcoming the aside of can is in for payments CapEx some cash of the question reaffirm around final walk year. key to the $XX profitability inputs from of for

Sure.

to And about had And side, there. reason for recall, is expecting less equipment up is previously if million $XX the that that or using On during the flat to declining, and, that, at you saying range. at very the buffer what than -- I it we're to pandemic CapEx what actually up is that spent slightly time. built the for million pandemic the the million midpoint $XX we reason $XX of still And to when the similar new equipment additional been we're this is million incur year. example, $XX we slightly

side, continuously data using platform. that the the our still largely done be on X.And Quarter are innovation where centers, improving we're will So, then which in after our engineers

is to a in the benefit expect of we year, especially deletes. in this that areas faster One get

you time the could drive. hard any data on So, store delete quick, same you data can new

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that answers think it. all I No, of

our turn I This concludes session. over like Kong. the conference Mimi question-and-answer to would back to

in to to this backup you, this sync. share Last At price go given files, a Microsoft able us to MXXX solution is we question some back And time, when of another Gleb. Thank and year, and is, able in, Microsoft OneDrive as how part they looks for like to is over has the option. Backblazes' to to change syncs like you. OneDrive would think and Carbonite I'd resulting one from but of It similar submitted to docs, improved are such Technologies. made popular lays, be Say get cost backup longer backup questions be? being how and one might the what programs backup storage desktop PICs set launches holders for equivalent What other that implications is? leading no

Okay.

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the be single all would couple is the this today. over last the what question strategy of Gleb, impactful quarters? for then And most next

single component I that moving would then if the believe a efforts sure us, is open and and we us. will lot doing, most And that innovation is cloud done for but as the step. to we're to something impactful, a of call not certainly a key value do deliver the this that key it I'm talked we provide customers we've with about a we channel continue for upmarket growth believe is So of trend along

in So, leaning are of those the things strategies, key into. we're that impactful terms

The other AI we've some one level. at talked obviously is about

effectively selling I of And a age. opportunity that, picks-and-shovels the the think We going long-term that is AI be for us. significant to are

call right. back And it I'm All going the that's hand for those Gleb. to to questions.

to everybody, See right. Thank questions you, operator, ready you through Thank the you, Mimi. platform, to All analysts next Thank quarter. we're investors end the for the questions. ask the now call. that us. our Say to Technologies that you And joined

conference for today's The attending has now concluded. presentation. Thank you

may disconnect. now You