Backblaze, Inc. announced its financial results for the first quarter ended March 31, 2025, on May 7, 2025. The company reported a 15% year-over-year increase in total revenue, reaching $34.6 million.
B2 Cloud Storage revenue grew 23% year-over-year to $18.0 million, marking the second consecutive quarter of accelerating organic growth. Adjusted EBITDA margin tripled to 18% in Q1 2025 from 6% in Q1 2024, demonstrating significant progress towards profitability.
The company's AI customer base grew 66% year-over-year, with their data growing 25x, making AI use cases the fastest-growing part of the business. Backblaze also signed its largest Total Contract Value (TCV) deal ever in Q1 2025, a multimillion-dollar, multiyear contract displacing AWS.
Backblaze reiterated its full-year 2025 revenue guidance of $144 million to $146 million. The company also raised its full-year adjusted EBITDA margin guidance from 16%-18% to 17%-19%, reflecting strong performance and anticipated cost efficiencies.
The company remains on track to achieve adjusted free cash flow positive status in Q4 2025. This milestone is expected to be supported by accelerating B2 growth, operating leverage from cost controls, and a reduction in depreciation expense.
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