Backblaze (BLZE) investor relations material

Key quarterly drive statistics

• Over 340,000 drives tracked, with about 1,000 failures and a 1.24% quarterly annualized failure rate.

• Failure rate increased from last quarter but remains lower year-over-year.

• New 26TB drives entered production, with 9,400+ new drives over 20TB deployed and a 0.85% AFR for this group.

• Four-terabyte drives, averaging nearly 10 years old, are being phased out, impacting lifetime failure rate calculations.

• Lifetime annualized failure rate rose to 1.39% due to older drives exiting the pool and new models being tracked.

Failure investigation and data methodology

• A spike in failures led to investigation, revealing two distinct issues, including a power cycle problem mitigated by reducing cycle frequency.

• Failure is logged if a drive present yesterday is missing today, with exclusions for routine maintenance and drives returning before quarter end.

• Day-one failures are not captured in the dataset, a rare but notable caveat for users.

• Users are advised to check logline data for a complete understanding of drive failures.

Media & entertainment and AI-driven data growth

• Media workflows are generating exponentially more data due to AI, with assets now carrying thousands of metadata attributes.

• AI upscaling and multiple asset versions (2K, 4K, 8K) significantly increase storage needs per title.

• Infrastructure must adapt to handle increased data, with Drive Stats aiding in building smarter, more resilient systems.

• Efficient storage and retrieval are critical as creative teams iterate and generate more data.