Backblaze, Inc.

Hello and thank you for standing by. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to the Backblaze third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. I would now like to turn the call over to Mimi Kong, Investor Relations. Mimi, please go ahead.

Thank you. Good morning, and welcome to Backblaze's third quarter of 2025 earnings call. On the call with me today are Gleb Budman, co-founder, CEO, and chairperson of the board, and Mark Friedan, chief financial officer. Today, Backblaze will discuss the financial results that were distributed earlier. Statements on this call include forward-looking statements about our future financial results, the impact of our go-to-market transformation, sales and marketing initiatives, cost-saving initiatives, results from new features, our ability to compete effectively and manage our growth, our strategy to acquire new customers, retain and expand our business with existing customers, and the impact of previous price changes. These statements are subject to risk and uncertainties that could cause actual results to differ materially, including those described in our risk factors that are included in our quarterly report on Form 10Q and our other financial filings. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligation to update them except as required by law. OUR DISCUSSION TODAY WILL INCLUDE NON-GAP FINANCIAL MEASURES. THESE NON-GAP MEASURES SHOULD BE CONSIDERED IN ADDITION TO AND NOT AS A SUBSTITUTE FOR OUR GAP RESULTS. RECONCILIATION OF GAP TO NON-GAP RESULTS MAY BE FOUND IN OUR EARNINGS RELEASE WHICH IS FURNISHED WITH OUR FORM 8-K FILED TODAY WITH THE SEC. You can also find a slide presentation related to our comments in the webcast, which will also be posted to our investor relations page after the call. Please also see our press release or presentation for definitions of additional metrics such as NRR, gross customer retention rates, and adjusted free cash flows. And finally, we will be in New York to participate in the Craig Howland Alpha Select Conference on November 18th and the Needham Tech Week one-on-one event on November 20th. Thank you for joining us, and I would now like to turn the call over to Glenn.

Thank you, Mimi, and welcome everyone to the call. We delivered strong results this quarter. In Q3, revenue and adjusted dividend margin both came in above the high end of guidance, and we continue to be on track to be adjusted free cash flow positive in Q4. Overall company revenue grew 14% year-over-year, and B2 cloud storage delivered strong results, growing 28%. Now I'd like to take a step back and share how we see the AI industry evolving because AI is becoming central to both our customers and our opportunity ahead. AI is built on models, compute, and data. While just a couple of years ago, models were the domain of only a few large providers, today they are widely available with literally millions of open source options. So models are no longer a bottleneck for AI innovation. The next component of AI is compute. The GPUs that make up compute have become increasingly available, but access of scale remains challenging, and the market has also become quite fragmented with approximately 200 neoclouds, such as Corweave and Nebius, offering GPU capacity for rent. That brings us to data, the key differentiator for AI success and where Backvoiz helps companies win. Data sizes are exploding as AI expands beyond text to images, audio, and video, driving massive storage and performance needs. The teams leading in AI aren't just the ones with the most data. They're also the ones who can aggregate, clean, and organize it for today's workloads, move it to whichever neocloud they choose, all while preparing it for tomorrow's architectures. Backwise has already built one of the largest fastest and most cost-effective storage clouds on the planet, offering throughput of up to one terabit per second and priced at about one-fifth that of traditional cloud offerings. Add to that our free egress and universal data migration that allow customers to easily move their data from other cloud providers where they may feel locked in and then freely send their data to one of the 200 NeoClouds or anywhere else they needed to go. Then layer on our team actively supporting customer success, and it becomes clear why hundreds of AI companies are treating Backblaze. Highlighting this, Backblaze recently received industry recognition in both cloud security and technology innovation, including an award for B2 Overdrive. These honors reflect the strength of our technology and the pace of our innovation. Now let me share a few customer examples that bring this to life. This past quarter, we signed a new six figure deal with an AI startup focused on large scale vision language models. The team was small, but scaling rapidly and racing to finish key projects. They couldn't predict how their data volumes might grow and needed a high performance and cost effective solution that could scale with them. They started self-serve and later engaged our sales team to access even higher performance. B2 Overdrive gave them the performance they needed, and our team made it easy, freeing them up to focus on their critical projects. Another AI customer in the surveillance space expanded their commitment by almost 10x to a seven figure TCV deal. We won this customer away from a hyperscaler whose platform limited how they could automate their workflow. Our platform offers a valuable multi-file upload that streamlined their workflows. They expanded their commitment with us because we offered a predictable and cost-effective way to scale easily. Finally, we had another six-figure win. It powered by Backblade's white label deal with an app developer in the media space. This was another competitive win from a hyperscaler. The customer was growing fast and needed storage that could support millions of users. After being hit with a surprise roughly $100,000 charge for moving data with the hyperscaler, they came to Backvoice for predictable pricing and scale. Backvoice is now their storage platform and they will join our 100,000 customers who collectively serve hundreds of millions of end users to our platform. Across all these examples, the reasons customers choose Backvoice are consistent. Performance, that rivals the biggest clouds, predictable and fair pricing, and people who make it easy to get things done. Whether it's the startup training models, immediate team moving petabytes, or an enterprise scaling to millions of users, the story is the same. Faster, simpler, more affordable, and supported by a team that actually helps. Now I'll share how we see our growth opportunity. In Q3, we grew B2 28%. And for Q4, we now expect B2 to grow in the range of 25 to 28% year over year. We're proud of our growth, but this is below the 30% target we set for ourselves at the beginning of the year. To help reach our growth goals, we're launching phase two of our go-to-market transformation, focused on accelerating the velocity of both our self-serve and direct sales motions. For self-serve, We're proud of the consistent growth engine we've built. Now we're going to scale it by making it more frictionless for data heavy AI use cases and by kicking off robust developer relations. These steps are aimed to deepen our connection with the developer community and make it even easier to adopt our platform. For direct sales, we're building on the progress we've made over the past year. We're adding talent and upgrading our core systems in order to better target customers and improve sales efficiency. To accelerate this, we're also partnering with advisors and a consulting team who has helped both Snowflake and Databricks in their go-to-market execution. We're reinforcing our sales and marketing engine and remain confident in our ability to deliver consistent, durable growth over time. With that, I'll turn it over to Mark to take us through the financials. Mark.