Backblaze Inc (NASDAQ:BLZE) stock fell 0.88% (As on Dec 14, 11:05:07 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 21. Both of the cloud services performed well, led by B2 Cloud Storage, which grew revenue rapidly at 59% and Computer Backup, which continued strong double-digit growth at 13%, resulting in total company growth of 25% to $17.3 million. B2 has higher growth rate, NRR and other key metrics than the Computer Backup business. NRR was 110% with B2 at 129% and Computer Backup at 103%. Gross customer retention was 91% overall, 92% for B2 Cloud Storage and 91% for Computer Backup.  And as the mix shift continues towards B2, it drives even stronger metrics for the whole company. The primary driver of growth for both products is new customers and secondarily, growth in spend by existing customers. Computer Backup also benefited from the start of its price increase effective for about half of the quarter. Further, nearly all of the revenues are recurring, which provides good business predictability with annual recurring revenue, or ARR, totaling $71 million as of Q3.

Moreover, Adjusted EBITDA totaled $0.8 million or 5%, down from $2.8 million or 20% last year. This reduction reflects expenses for pre-IPO professional services and higher investments in both sales and marketing and R&D as the company continues to increase investments, pursuing the large market potential. Near-term investments were funded in part by the $10 million safe financing or a simple agreement for equity, which the company closed in quarter three, and the company used some of the proceeds to pay off short-term debt. This instrument converted to equity at the IPO. In addition, the IPO added $103 million of cash after fees and expenses in quarter four.

BLZE in the third quarter of FY 21 has reported the adjusted loss per share of 32 cents, beating the analysts’ estimates for the adjusted loss per share of 20 cents, according to Refinitiv Ibes Data (analyst estimates). The company had reported the adjusted revenue growth of 25 percent to $17.3 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $17 million.

The company expects revenue to be in the range of $17.7 million to $18.2 million vs Q4 Revenue View $17.6 Million, according to Refinitiv Ibes Data (analyst estimates). BLZE expects quarter four adjusted EBITDA margin to be in the range of minus 10% to minus 6%.