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| Statement |
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| So it's not a huge financial impact for us, but it is, we believe, a huge benefit to customers in kind of how they think about the open cloud |
| Additionally, we anticipate adjusted EBITDA will be positive for the full year next year as we continue to drive top and bottom line growth |
| Regarding our recent price increase, while still early, churn has generally been in line with our expectations, and we see the price change as a net positive for revenue, adjusted EBITDA, gross margin, and cash usage |
| Next quarter, we expect to accelerate revenue growth, reduce cash usage by about half sequentially, and reach positive adjusted EBITDA, all of which I will discuss in further detail |
| And third, our team continues to innovate on our storage cloud, delivering a dramatic increase in upload performance and making our B2 cloud storage up to 30% faster than Amazon Web Services storage offering, while continuing to be just one-fifth the price |
| Since we're such a good value for them as customers look to optimize their costs and their workflows, we're a great way to do that |
| We are also improving our full year adjusted EBITDA guidance to a range of negative 6% to negative 4% |
| So we feel very good about our ability to compete successfully |
| The beat was due to gains in operating efficiencies and to a lesser extent, some one-time gains |
| As I mentioned earlier, our pipeline is the highest ever |
| We delivered a strong Q3 |
| Next, I'm excited to share a recent important innovation in our storage platform, which we call “shard stash” that led to a significant performance improvements for B2 cloud storage |
| For self-serve, we have completed overhauling our website infrastructure and have seen encouraging results with increased year-over-year growth in new customers |
| We had a strong Q3, expect to see higher revenue growth in Q4 and 2024, and are on track to be adjusted EBITDA positive in quarter four with dramatically lower cash usage |
| We think this is very important to the open cloud concept, and it's really going to boost the business overall for that reason |
| So that's certainly strong material value to the customer |
| The HYCU partnership helps extend our reach within the multi-billion-dollar data protection as a service market |
| So feeling pretty good about where things stand from a macro for us |
| This breakthrough increases efficiency for customers and helps free up resources for other tasks |
| Q4 is expected to be our first quarter of positive adjusted EBITDA as a public company |
| Nice results |
| Are there any plans to up the marketing game to attract new customers and companies to your product? Gleb Budman So we actually believe we're getting good awareness within our target market |
| Second, we've made great progress on our financial performance, particularly adjusted EBITDA and cash, as Frank will detail later |
| And we certainly believe that we have a significant opportunity to continue to help in that space |
| So, the -- we were modeling in just a modest -- more modest there, and we are -- and our B2 was -- we modeled in a churn rate, and so far, we are better than that model churn rate, but it's very early, and that's why we didn't want to say more about it yet |
| So we believe that we provide, obviously, a tremendous amount of value to the customer simply because we provide a very easy-to-use storage platform, and that storage platform is one-fifth the price point of AWS for the storage |
| These are major accomplishments to be proud of |
| Q3 was highlighted by surpassing the $100 million in ARR milestone |
| economy specifically, which is obviously experiencing some economic pressure on interest rates and inflation, etcetera, that challenge in many ways is an opportunity for us as we believe that we're well positioned to help customers when they're affected by those pressures |
| So I believe that that position as an open cloud provider for storage is an increasingly good place to be when customers want their data accessible to all these different model providers |
| Statement |
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| Working down the P&L, adjusted gross margin was 74%, down from 76% last year |
| This quarter, it was actually below the previous |
| This quarter, adjusted EBITDA loss of 841,000, or negative 3% of revenue, compared to a loss of $1.9 million, or negative 8% in quarter three of 2022 |
| And part of that is that our headcount growth has really been slowing |
| Similar to prior quarters, the primary driver of the decrease in gross margin year-on-year is due to the costs associated with our new and expanded data centers |
| Following our announcement, we saw new customers engage with us directly because high egress fees charged by other providers are a major pain point for them |
| Mimi Kong Now, before I hand the call back to Gleb, I understand there were some audio issues today |
| So those are the three factors and this pushes a churn in there |
| One of our joint customers with Coreweave is an application developer using AI to reinvent how 3D motion capture works |
| But in general, I think they -- what they've been doing is S3 has kind of been the default offering, and then they've had slower versions, things like Glacier, which are slower, but not necessarily things that are faster |
| During our testing, it was very stable, so it's not the kind of thing where it moved around wildly during our testing, nor did we see any performance improvements on their front during that period, but that period was fairly short in terms of how S3 performance compared this year to last year to two years ago |
| Mimi Kong What do you anticipate will be the hardest hurdles in the coming years? And what are the challenges that should be anticipated? Gleb Budman So as we scale and we continue to become a much larger business, ensuring that we continue to maintain our great culture is certainly something I'm paying a lot of attention to |
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