Backblaze (BLZE) 8 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the Backblaze second quarter 2024 earnings call. All participants will be in listen-only mode. Should you need assistance, please sit down with conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. please then question, your withdraw press two. star, To being note, this is event Please recorded. now the to Mimi I like would turn Relations. Kong, conference Investor to over Please go ahead, ma'am.

earnings to Good second and you. welcome Thank quarter afternoon, XXXX call. Backblaze's

uncertainties that IPO are factors and On the Gleb CEO, Today, Patchel, marketing risk materially, chairperson existing and statements were Form XX-Q Backblaze other Francis today will actual are acquire in the and financial financial Budman, effectively to distributed results new board, that manage initiatives, co-founder, of results chief results, and quarterly customers proceeds, with on call call me subject and include to are officer. from cause forward-looking customers. our that These about described expand discuss compete use those with Statements the and could growth, earlier report of to offerings, afternoon. retain our and including financial filings. business our strategy risks differ sales and price on our this features this ability of included changes, results our our and our in new our statements and impact and future the to partnerships financial our

of as statements them, and should on update statements as law. future that assumptions we You this on to as we undertake by obligation except call our rely today, not events. on beliefs forward-looking and make of no predictions All forward-looking required are based

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

retention to rate. page in growth press can Thank such will webcast, would also of the to which over us, or be find our slide comments our and I as the like you a additional now Gleb. our release presentation also definitions also posted investor NRR after to to joining metrics, call call. Please relations presentation related You for customer and for the turn see

everyone, thanks We had second on our XX% growth revenue today. Good in and a both. for for and joining beating EBITDA, with both Mimi. strong with Revenue BX guidance Thanks, afternoon, growth quarter XX% storage. cloud grew great us

difficult As you that a was may have have impacting about macro their negatively various companies talked heard, tech business. environment

we are that seeing However, on not our impact business.

raised we beat strongly for As guidance, our and QX, the for show, our numbers guidance guided QX year.

key I'm going of So let's focus areas business three for with to us. our talk now. start about

of First markets continue customers that our open is innovation. us new to services with deliver our accelerated pace BX Live and Read. we of In launch win QX, new

in our Marc Revenue New our in to us exciting CFO, Second, growth. accelerate help our and team call. later the Wakeam, you new about Officer, ways. more momentum Jason Chief to our drive I'll Jason and we're Marc growing efficient tell But Suidan, well-suited upmarket is

we're stories by quickly customers now, succeeding Finally, move we an we year But customers. company, deals how to more and of XX% grew we from number highlight over serve app an share an team in with for I'll are winning larger large year. developer, that the I'll explain NFL AI our upmarket.

about each areas tell me let focus. more Now, you of these of

begin with I'll First, innovation.

strategic files customers launched they're And cloud us we June, our access in the it future value service solve It why us to helps customers' Live is Read. differentiates It problems. customers. being current uploaded. while important? lets still innovation our This So and BX expands patent-pending market. In

feed either editors to sales, decades our value. advantage opportunities. has I'm and Jason Officer. that on Microsoft, event they in drives complete. to welcome building Chief recording, we customer experience easier Backblaze, to cutting graphics companies, such our event their and benefit to anywhere waiting, recently, companies, broadcasters, producers SnapLogic. are start their tags, customers. Whether which Here's integration leaders stage start goes why that producers, see like of footage opportunity have can read in-house as Revenue want already the but We we're complicated company it the including necessary. help We and producers the and Wakeam several the Jason as field. world really a of this on institutions focused with with customers, adding before helping last large editors can announced customers the last are storage, something, on-site The the broad We tech example, news services, products media InternetX, faster for working be large also partnerships, is or to and work event Take, technology, groups they're upload here. offers or customers. valuable If for growth reporter camera be a remote integrating this working the we're editing. we launched teams with this or OEM this price cloud to which or BX outlets. No their any announced products access to focusing all who in enhancing enable We and and of innovation and entertainment, away. we need with data. in innovated on other uploaded footage strengthening to access on or need to HP live month their can solutions pay With including gives the site or hardware team we're Telestream, edit at news Cloudera big a Read, can we've is expensive media and Live He's no some innovations to no into excited direct they guiding functionality complicated industry it. for that set it bring channels, only notifications, promising and and the customers take at and and initially live, Read led Along believe pretty so Live to delivering of quarter, it's numerous our to to they of direct get these

upmarket growth to experience and CRO, drive As he's momentum that bringing accelerated Backblaze. to

on previously served generating $XX,XXX significant XXX, increase comes teams mentioned now year. AI especially already XX% when stands go-to-market Nilay momentum, our of on it number to As Sales, at our of as the we customers. ARR larger opportunities. efforts end is customers the Vice President great The winning over lead quarter, now last that a the last over Patel, the our will are the call, news contributing At of in who

Here's why Backblaze. customers these choose

continued platform at or look reliability helps performance First, or strength and functionality, win deals. innovation us or our whether security the you of our our

no elsewhere tiers, for customers using build and And enables third, support solutions egress, cloud delete their one-fifth their complex prefer. they services our Second, they clouds, open our reinvest of margins no just free or businesses of can the tremendous their at total business. ownership to with the fees, cost which pricing save increase cost cloud lets traditional with customers amount in a

about chose uses this of that gaming a a QX data me from this The large be these to spend of used companies good AI customers to be illustration to fees and it's has by But needs somewhere It customer's readily landscapes data inexpensive. space, it is the make Azure, without decrease that be to In to render when need characteristics for of is transferable to use for previously They but that few Let egress ideal data their cases. A accessible quarter. also AI AI and storage park available, company immediately simplify Backblaze migrated share both their platform, their GPU platform AWS that franchises. a year. able storage Backblaze's to of $XXX,XXX that all to examples XD data Backblaze desired have they volumes needed. keep their major per cloud.

seamlessly instead win deal developer had developer to QX, a and driven business instead championship space, and a to may AWS's wanted. were last NFL features by expensive quarter. deal about a that photo and Backblaze's team AWS's complicated media data ARR their the call AWS, with before and and an the proprietary can product puzzles. which that and of worry NFL a and fees, formats. tools. won had locked you customers' retrieval with tiers, problems one developer designing customers last had continue were is what the entertainment storage to easily Three they solve plus fees, now working works place shared of retrieval features, Because this Frank. timing, and we pricing, used off sharing decisions up pricing storage AWS's major older building with With on different data platform We remember focus consideration which products retrieval that the This storage ARR pricing had footage in how other They team. us. their In signed another we $XX,XXX migrated within I story they Backblaze to egress an accessible by $XXX,XXX is In now of hand all structure in is that meant data in fees, also. In footage we accessed. they won app team When have performance items their some that QX,

Index, recent which our the Russell XXXX milestone the company's in growth. out call inclusion is to wanted another I First, in

as and on years CFO. forward. a we the than I'm all impressive, Marc lead wealth Marc Second, Marc join of Backblaze also Backblaze growth announced XXth. that before and as to just a strategic in a officially to will at Suidan August public company to as initiatives PricewaterhouseCoopers. His and identifying opportunities more driving of knowledge starting next CFO strategic press excited our for financial is from tech partner happy senior share XX be leadership across release call, He'll help we're as brings

He successfully Finally, turn earnings a and ahead last through guided This with the his following grateful our together. I'll our accomplished thanks I call of all I'm is that team, the retirement. to to for IPO, Frank With his us and to us led special finance we call Frank. over Frank? that, want XX give quarters. built us,

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

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

from was the BX expansions guidance. ramp-up BX The Our in QX renewals driven by revenue end and totaled X, faster-than-expected Reserve, Quarter a for $XX.X of million, better-than-expected in above high B and deals $XX.X signed the storage reflecting our was computer an million, XX% revenue backup. growth. lower totaled XX% XX% represents storage cloud This same increase XX% year-over-year backup growth. year. BX of reflecting period Computer churn last million, for $XX.X revenue versus new

computer NRR, Turning Gross BX backup. retention customer Net company was XXX% now increased for year Revenue XXX% from and for XX% storage Retention, ago. at overall, cloud XXX% XX% With NRR to XXX%. storage a at total BX or backup our to and computer cloud XX% with

P&L, the GAAP the adjusted and down GAAP XX% data all-time and XX% last at optimization. center increase This to The year. capital highs depreciation margin Quarter nearly causing price margin gross additions, X. and up Moving reached driven XX% XX% both respectively, also improvement gross from identical margin benefited low expenses from gross by and was

our profit, year. It headcount a expense consecutive marked $X.X rising by prudent the million, to continued of adjusted revenue from high quarter operating were new third one-point top-end the guidance XX-point period revenue. last low improvement principally a X% higher Results and over driven EBITDA growth, performance and This time also management. or was a beat this to same the

an first the half million first at end. Total cash, and investments, XX% was cash restricted totaled $XX.X last million, the usage Turning cash sheet, quarter improvement $X.X from year's half. to for approximate balance

to our forecast million in for have total end. cash strong $XX at of confidence year least continue We at

by the accounts beginning total the expectations. in and largely million larger timing rise customer cash QX with in was half, by now terms million, for front. year, This beginning the the at market, as increased deferred now of improving of the billed from million. impacted one- are QX $X first up backup quarters our payment card. From $X increase renewals, customer across in of line immediately receivable, terms two-year the which moderating our $X.X a positively deferred collected revenue were fluctuation versus reflects by increase usage $X.X a and increase affects move-up to since revenue, was million, computer impacted unevenly This the the $X.X or accounts with paid In with stemming cash at year. occur Our million credit renewals with

year. equipment Our data long-term and due center for $X.X since three of QX. short-term, the This by as pandemic as the from leases decreased concluding to years lease purchases in finance including liability, build-up ago, our new lease fewer million is reduction new beginning well required leases

to revenue margin be in EBITDA, third-quarter third-quarter expected the increasing XX%. is to X% between be we of ahead, million. Continuing our million range $XX.X and to Looking expect of adjusted $XX.X trend

annual increase year, prior expect now are raising between we $XXX our million the total For $XXX.X from $XXX an $XXX.X million. and our of guidance to million, and revenue guidance

see XX%. to for BX at continue growth We full-year about

to also performance guidance now of outlook EBITDA QX and be the X% adjusted conclude, improvement XX%. of X% with pleased XX%, expect to for of prior We in increase very an the the year. range over to the our our the To remainder in I'm

Before the call to thanks. moment I Gleb, to a I my hand to like would back express take

the execution and and Backblaze First, amazing back partners board now I entire opportunity. for being our the Gleb call want Gleb. for four members And these this for turn giving leadership great to Thanks and team to team I'll me to teamwork. thank Backblaze past incredible over years over to the and

your I Frank. also and We're to questions. to a many us. I'd open working trust at for like up build to and putting customers I Oppenheimer the moment together Conference with Operator? excited week for take in and for investors Street And to Conference to our Lake thank to serve September. want that, thank of customers. Backblaze to in team Thanks, our our next whole you it want see

Yes, thank you.

now [Operator & from question Ittai first session. the will Instructions] today's begin and And comes Kidron answer Oppenheimer Company. with We question

and pleasure. been Hey, guys. good luck. And, Great Frank, quarter. It's congratulations a

maybe you, start Frank, with then. So I'll

a you're way the mean, I break of traction breakdown seeing activity? buckets? do you it you how around into can, the with you there. for mentioned the there different down between you appreciate churn, it's color lower upside expansion upside, over to you Is BX. If components respect would the that good to think allocate extremely the clearly the I How better

as upside guidance, Ittai? as to far our our Well,

Yes.

our our rate was and strength very areas. churn number remains was And actually above expectations, the forecast It Largest that it budget. was Yes. good. a of across fact our

that's say product, which referring has channel that's Reserve, the really excellent backup. And So rates what computer I on then would thought. above we originally to our BX had number one. BX side, had And is renewal

previously a have they So more storage resellers. with renewing than they had. our for been that's And also partnering

then one, end very So quarter. the in service on that had was are And the nice came were a accounts service. very are quickly. largely how from third they sales part impact of to coming receipts as major our to well. And quarter which quickly the just on the The of

So was see that nice it to well. as

year on point, some use logos look Maybe compare you you how on vertical, this profile translating into do market. Yes. understand when last you the about Help a that would for adding add now Gleb, size, color the you. at think maybe here company you contrast, ago, is either different can How move-up me a market how case? versus by customer push-up you're

Yes, thanks, Itai.

with at $XX,XXX ARPU XXX So just an us company And have driven entirely one paying almost is slightly each. self-serve now we would we customers to I look over say we I $XXX. think way were over went public, a when was it that

the looked we just So that's team dramatic company that in first hired AE enterprise difference second focused the way of we've a mid-market from years couple ago. a team up the the assembled, and quarters. The

that lead We CRO as got team that by this us year. an experienced the end joining up-market to be ramped we've expect Jason fully And of to momentum.

shifted terms think So of from looks the its and we've also for in public I go-forward. company materially adoption what time customer the the like

read about, Maybe that me your Got the remarks. prepared last one talked line on Gleb, to for it. BX in you've

this this this? there's few that's or or needed relating And second, use certain or just collect, pricing what's all, of interesting. different to then a you've business be this? more compute model for more a would power examples cases you model of First to around talked special that Is this, storage the how do verticals about

percent you interested your had base? your how base capability how you at this? is think look your would highly If to in or base, this to What applicable be customer applicable broadly of

We're new. Read. is excited Live about It

it the to GA this by mode year. end expect and out of preview We come of into

use important it. working files it take But and of new. enables who large an quite serves because to still growing it's it of is set So with anyone customer cases advantage

that. we're with it's one that's most from the terms this of broadcast focus value functionality. to starting Live our is attributable verticals, both because overall and the innovation of and Read good It value example of us, because differentiates to the strategy that a is In and goal a media key so directly seeing it closely part for us, provides customers it is

usage the for business charge terms we of In of Read. Live model,

at and we prices. then is uploaded, storage BX the So $XX terabyte per list standard charge

thing nice value a the differentiated and the So at customers, is and provides higher same unique to margin for offering it Backblaze. it with it's time

" And comes Leopold the Simon James. next from with Raymond question

I is for last Victor follow that Hi, wanted up This Simon guys. to just Truitt Leopold. on question.

common guys something For you the know, as this Is recognized, kind an guess, or, this opportunity? opportunity you as that you did about have of you how know, develop that, for did would that identify opportunity? this I Live specific inquired existing Read, previously you kind this how and function of you you? opportunity need, customers know, know, you be something you an know, guys a that identify

case in our specific businesses to in with Live but are team challenges a them being with team necessarily they'll when A lot tune a that is in say ask they talks sometimes the customers the identified get way say prospects ideal that solution. And to functionality, without prospects offer able their which about, oftentimes I'll for probably and that customers to the right, this trying struggling of all we feature is what the or was and Victor, comes times our direct Read. time. with something,

they their using to struggling on-premises about work understanding were talking have and cloud some Our with solution they uploaded could any team it. equipment fully to and customers was challenges files with, or with the them talking with were were with wait until they're what to with before deal they having into having

about potentially for being to they solved, started be files be customer the our this completed. they And customers waiting in cloud and while could so challenge to as leveraging growing start the enable up without the to team of ways it actually able it talking were came with innovation

kind was it with of a best So solution. approach of up the coming unique

the know typically you last that I that's much could heightened couple competitors. base Backblaze impact fairly broader And more severe headwinds material Okay, concerns the a periods see over more on true have this resilient we hold the guys where macro that have still Does noted weeks? helpful. given to your of the is contractions, especially for

a macro talking the seen had challenges the customers on it's companies question good it's Yeah, other because impact about we've other them. or and

not us, I think seen for have we that.

saw, you guided guided our strongly we up As for the beat QX, QX, to year. we we

the thing for And also we're seeing the reason are they're is product and seeing. offering. seeing is think strong the product we get not platforms So strong that from value believe we're that They TTO. same that I customers what our

about but long choose products it. where as to do. concerned in customers enable and they they not may are offerings to need macro, they're It's to environment there optional. so to would an looking do less, use finally, the can we it, say they they store to that, which other need as invest have data, not that And And ways I be actually for with more potentially them behind,

more from think any concerns. macro insulated we So are potential I

demand Okay, any changes observed in far? so that's changes And helpful. you or haven't trends

And that would in from guidance, I you've on of we seen execution. the no. top think I results our moreover, as say layer the

that even beat and internal team one QX, yet. closed still our with newer been in deals. with So our And forecasts the not was having board for Jason team on AE actually sales

about enthusiastic on team fully able AE ramped leverage board. being we're that's that So fully to Jason with

And question comes Ader next from Jason WB. the with

and about your And of kind to the second talk half. of breakdown congrats retirement. a the little Frank, on wanted the just half to you, I the business second in bit

backup want BX math XX% you the in to rate guidance this the you around single-digit backup given imputes is And growth foremost, year. correct that for the that my there. XX%. computer and And make business computer had just a said of sure I year, originally gave growth First in

changed? what So

say repeat you – you that percentage the Jason? you could Did said,

growth in Yeah, BX. in I you script XX% that think said you the expect

the then So just I gave and you line. guidance – revenue full of kind – for for obviously

in original digits low So double kind single-digit given guidance that the you just backup growth the versus for computer year. I imputed had of the

what's Okay, of so is price happening the we've end our increases. the year, XX% then is the that remember, lapsed And correct. in

difference. So kind that's of the

Yeah, would backup. out figure you're I'm that to originally mean, – why going be? grow faster than but to. computer you would to guided that That's on I what trying

constantly to that that what increase Okay, retention higher expectations. renewing. yes, going forecasts, given happen we a churn actually rate above The that we our budgets that growth is to rate But expected solid has our And be higher. for been little is reason customers caused experienced we've happening. over last bit our a That's in have a has our year. that period. had And remember and two-year price a very

so less Okay, churn. basically better it's renewals,

Yes.

also which the bit to to to of which then is below the is for over in for just a the been the anything is QX what year XXXX year. you comparison? QX year is XX% where one quite year. you've understand, And for anomalous gave imputed about rate and there QX half be year comparison? over year, I the time first in a you've guidance want for is for there something and growth making in where of was going on tougher based Like, guided The Okay. QX,

Hey, Jason, this is Gleb.

general, expect in to In So all, we're XX%. guiding QX grow QX you we BX about first I the, think, of know, obviously, not just today.

both BX. for the for The price And good the we the for full is BX. that's QX of XX% year still and lapse for for rate backup so about feel increase QX. And growth both BX, the computer

so piece there's that And it. of

two we've a you got we're year, strong think to. know, also and there's strong I a for general, in things paying we've know, attention had, QX know, strong QX, QX, just You you

this is transitions. AEs, the the we've two things about all of the have We And, enthusiastic been larger ramping that of timing the pay-as-you-go sales other to year we upsells forecasting, establishes transition. And cognizant we is be but to we're in transition know, want you of because starting one on opportunity for longer-term with of on One implications put it doing at Jason sight, the the visibility more but some relationships of contracts. some of is move doing them We're coming are of them, board. inter-revenue committed also these as with some then to with committed him customers, more and them line them, longer-term that for some of longer-term contracts. those discount

two sensitive being just the this year. through of end happening we're So to those transitions

Gotcha.

Okay.

then trying QX, QX, conservative, just these let's factors. based to to you're you're So call but on guiding just specifically some of not be, it

say I'd at least them. cognizant of

the question And Riley next Zach with comes Cummins B. Securities. to

Thanks congrats, my and your on for Ethan in Wydell questions checking for this Cummins. Zach is Frank, calling retirement. Hi,

that same out are the So there for changes churn? any you incremental you doing mentioned you're that in but headwinds companies, seeing are other

lower. Churn very slightly is

can our You gross customer retention. in see

above above forecast. our So, updated but it's budget original and our

us. So been lesser a very driver it's we're it's that but pleased just there, for

in how little That and sense. secondly, And makes new your maybe maybe longer-term on with growth a could aspirations? bit it. hire Got Jason clicks your elaborate you CRO then

This Yep. Gleb. is

which where headed where is headed. excited very of we've I'm we're him joining. set him and about an He So experiences, been with brings upmarket

direct unique channels, that having He partnerships, sales expertise OEM is really So experience. with also him. in he and brings

different ways So, that we which to are go market. the

SnapLogic of more nibble also and ramped smaller, that he to larger move of So and getting being companies like all with and brings him. momentum, seeing in how them And large-scale at and revenue the organizations expertise in Microsoft but them, combination Cloudera being making HP quickly.

driving having I board to seen been he moment great only think And and the but he's brings experiences a on for us. effectiveness. impact structuring, planning, an been here, terms in we've sets he's in of brief of organization as our that that already

about him excited I'm very So on board. having

the Got it. Appreciate color.

Operator, do others? we more questions any have from

Yes, we Jeff with Craig-Hallum from Group. do. Van Capital One Rhee

the margins ticking And great. see Yeah, great to up.

magnitude across a impacts looks trajectory AI of board. as to it the for of little give better, a with impacts? trend. great start driver, little a maybe sense me, or just Just of a and trying sense A magnitude of Can the get those couple the tuned more you AI finely the You Gleb, referenced impacts. just

Yeah.

One I fundamentally terms help I data two happening it's we the those out of of things. that usage. are things right? in say driving efforts large So opportunity that data market are obviously is creation a are think just AI all and would there And size, There, with.

GPU kind earlier I clouds their of that's clouds. us the and data first the to different that example us. related just that needing think them the is are shared I it. And call in AI customer, to they're So that are we of And because of companies cases. part saving data the AI the use then you that well switching can GPU of $XXX,XXX by positioned And these with use the it the part store use different $XXX,XXX, in for help to with

use somewhere needs AI that were a their actually they by their GPU keeping because is AWS that's GPU having capacity they're cases, that diversity and use more for their this for effective at as becoming while limited but huge And organization not an another have accessible. constrained and to enough to savings also data providers So moment them allows needing of provider. being

AI cases. with we're positioned customers So to their help really think well I use

years to now us that how to those going use the of not including that. AI they're capex and I'll a the mention take company, GPU right years can is thing up seen ramping it's the discussion potentially use service out to capex that not other build case the parts. lot that in cases, industry on and we're where I've AI The We're is dramatically are and spending enabling saying they GPU use a get on outs. because a GPU for That's case companies return

having use supporting the do we not we're benefit the requirements capex of those cases. while get So same

the come it BX joining about different to be you motion skills, from in you Wakeam but Great, a that's it now and could touched kind you the envision what get XX months. to we and Jason what of is helpful. company, selling broadly wonder maybe I if just talk at to And on his back direction speaking,

we we the were started, path we Sure, so almost originally, when down entirely were going self-serve. when

blog, to ourselves months order existed CDW other entering channel So through use others few technology earlier service. recently, working account, then By, create how of the with a was the case layered at Powered motion events clicking into then offerings. starting website company either because out and email XX% on to a That channels, time the enabled it, this use Backblaze address, different time today people and a that, to pipeline and to in us new targeted and other to up which continue of top then through us then finding of motion. the just the about leads channel entering PR our And a driver by and heard executive showing the then trying an selling and selling new credit business. about motion bringing works various companies part password, was made On direct we card make that or layered motion. that part motion they've was of the team outbound and it the coming and investments people's last most business resellers, Direct to close. We go-to-market and year, people layered out a that for selling to top like is still reaching we of verticals a self-serve business the significant we've at drive the places, IPO. It's SDRs, account our targeted optimize to of ago, the on of

about edge into we companies of companies, BX and media providers service transcoding part and starting talked that compute to are go-to-market. products So cloud integrate as their their

motions. the taking efficiency will of up those I success So on those we've as up the the moving that the the but motions, organizations been those that that layering. sizes are not all Jason market well but ones, sales-led going ones, of increasing are those to in ways effectiveness and the us into sales-led continue to the of as larger and believe drive self-serve, And

Hagen Markets. you. the Street from question next Mark And Thank with Capital Lake comes

Frank, in today. for Eric

positive XXXX, of there any changes So the of was sort Jason that may addition I'm the wondering if to thoughts there's cashflow sales kind wondering, or still any looking, looking we're and then expecting hires. new that with of that's if at just of just happen kind there. or mid-XXXX and we're change the

the first far reduction have last pleased, an our first we as really total that year. we're this cash the so year XX% of for half Yeah, usage of half cash, versus in course, as

to total the of balance continue XXXX. million be year-end the cash we We of cash XX that and usage or at half second project will XXXX middle break-even by

usage cash But we and XXXX, in from that positive define expect and cash free total thereafter total shortly investing. and we remember also So, as be financing cashflow operations, cash as to well.

question comments. closing Gleb that answer Thank would return floor I the to session. any you. does Budman like for conclude And and to the

the trust for us finally, a to I helping for week thank want joining send of the Frank big thank that thank and I us. for to also to also company want at see you next our work us you Oppenheimer Conference everybody I you building us in in this to on into We're and Backblaze many years for to your excited all our thank for the call. at And supporting and and Conference these Street Lake of want putting into September. put So they've past investors customers to customers. supporting

I'd that, we close with like to So call. operator, can thank and you, the say

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