Backblaze (BLZE) Citizens JMP Technology Conference 2026 summary

Business performance and transformation

• Revenue growth for B2 Cloud Storage improved from 21% to 24% year-over-year, with free cash flow margin shifting from -13% to +11%.

• Rule of 40 score increased from 9% to 35% in one year, with ongoing efforts to further improve.

• B2 Cloud Storage is now the majority of the business, but leadership believes it should be growing faster.

• Go-to-market transformation doubled pipeline from $15M in 2024 to $30M in 2025, targeting $60M in 2026.

• The business is building new B2B sales and marketing capabilities, moving beyond its consumer and self-serve roots.

Product innovation and market positioning

• New features for computer backup, such as Advanced Installer and Command Line Interface, target managed service providers to stabilize business customer count.

• B2 Neo enables white-labeling for Neocloud providers, leading to the largest TCV deal and multiple new partnerships.

• Overdrive, a high-performance storage solution, repositions the brand as a performant platform, supporting AI/ML use cases.

• Flamethrower, a startup credit program, launched to drive platform adoption with minimal acquisition cost.

• Publishing performance and network statistics increases market credibility and supports brand repositioning.

Market opportunity and customer dynamics

• Neocloud market expected to grow 46% annually to $230B in five years, with $14B addressable storage opportunity.

• Neocloud providers face technical and economic limitations, making them receptive to new storage solutions.

• Largest TCV deal expected to add 300 basis points of growth by FY2027, with development work benefiting future deals.

• Customer base is diversified, with 119,000 self-serve users and strong ARR growth in larger customer cohorts.

• Large deals ($500K+ ARR) have longer, less predictable sales cycles and are excluded from forward guidance.