The gross margin contracted 110 basis points to 39.7% due to inflationary pressures and production volatility caused by intermittent component delays.
And on there's like gross margin too and our labor rates remain in line with expected. So, we haven't seen anything material from that because it was such a small change to their pricing. Sentimentally we believe there's tremendous value in data. AWS is very diversified with a whole lot of products. Both metrics are trailing four quarter averages. The important thing to understand is that this time was designed to be a low impact longer-term diversification side for some of the Founder's personal holdings. Jefferies gives IBM Watson a Wall Street reality check. Number one, Universal Data Migration; across the world, there are approximately 50 trillion gigabytes of data stored across cloud providers and on-premise storage. These metrics are defined in more detail in our earnings release and filings. This was a major pain point for Fortune because repurposing historical content was becoming a significant revenue source. We had a lot of customers that signed up for that and they're experimenting with it. B2 helps thousands today by being the cloud storage, where network storage and server backups are stored. As a reminder for those on the call that may be newer to the story, we have two cloud service offerings that operate on our storage cloud. I think there hasn't been anything materially different. Consequently, we want to be cautious, considering very high inflation and various other headwinds, particularly for the mid-market. What do you think those customers are doing? Is Backblaze planning any major acquisitions or partnerships in the next quarter? So, for those not familiar, five years ago, we launched Groups. Frankly, I'd be happy if they drop them completely, would make it easier for customers to migrate away from AWS. These non-GAAP measures should be considered in addition to, and not as a substitute for our GAAP results. The Dow Jones fought back. And there's I would say, the inflation aspects are something that certainly is concerning some of the customers, they're certainly paying attention to it. 5 Stocks You Had No Clue Warren Buffett Owns. I want to thank those investors that submitted questions. Hi. And we'll continue to do that over the next years to come. It sounds like it's been the beta at this juncture. So, we started that team. Okay. And just other question for me is really around your Cloud Replication product. As we outlined during our IPO back in November, we see a large market and our opportunity as the leading independent cloud for data storage. It does look a few of those questions have already been answered; we're going to address a handful of those more popular questions in the time that remains. But so when you so perhaps you can clarify who would be eligible for something like this? We also cover the costs of the cumulative egress fees to free customers from their vendor lock-in.
Thank you, James. Then Fastly, preferentially delivers that content to the customer sites from Backblaze B2. You can learn more about these platform enhancements and our new partnerships at backblaze.com/blog. Yes Frank, it's a good question. Last quarter, you noted that you were going to increase investments in sales and marketing a bit. Please go ahead. That's helpful. Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day. Adjusted EBITDA is defined as earnings before interest, depreciation, amortization and stock-based compensation expense and other expenses or benefits that are noncash or that we deem nonrecurring. Cash, cash equivalents and short-term investments totaled $99.1 million as of March 31, 2022. It sounds like a very interesting plan. Our full-year 2022 revenue guidance range remains unchanged at $83 million to $86 million. And we talked a little bit about it then that it's a very, very small change to their egress sometimes. We've also continued to do paid advertising and testing and optimizing and scaling that. Germany Bails Out Uniper in Fallout From Russian Gas Squeeze, Fortum Faces Dilution of Uniper Stake to 56% Following Bailout, Rogers Replaces Technology Chief After Costly Network Failure, US Dependence on Taiwan Chips Is Untenable, Raimondo Says, Virgin Atlantic Wont Fly to Hong Kong Again Until at Least March 2023, UK Tory Leader Race Odds: Liz Truss Extends Lead Over Rishi Sunak, Bidens Doubts About Pelosi Trip Leave Taiwan Feeling Hurt, Indias Adani Overtakes Gates to Become Worlds Fourth-Richest Person, Worlds Frothiest Housing MarketCools in Global Warning Signal, Sothebys to Hold First Singapore Auction After 15 Years, UK Blames France as Travelers Face Hours-long Port Delays, Lagardes Whatever It Takes Sequel Isnt a Hit Yet, The Populist Experiment in Italy Has Failed, Ghosts of 2012 Haunt Europe as Rate Hikes Begin, The AI Platform Behind a Bezos-Backed Startups Vegan Burgers, The $260 Swatch-Omega MoonSwatch Is Reviving the Budget Brand, Despite Abes Push, Women Still Largely Absent From Japan Boards, Planned Parenthood Workers at 28 Clinics Vote to Unionize, Trucker Protest Keeps Dockworkers From Work at Key California Hub, NikolaFoundersFirst Fuel Cell Semi Truck Lacked a Fuel Cell, A Green Hydrogen Economy Depends on This Little-Known Machine, Why Neighborhoods and Small Businesses Thrive in Tokyo, Pennsylvania County Could Become First to Divest From Wells Fargo Over Abortion, Decentralized Finance Versus Traditional Finance: Key Differences, Bitcoin Shows Signs of Larger Advance Toward $25,000, Three Arrows Founders Break Silence Over Collapse of Crypto Hedge Fund. We really don't guide gross margin for the whole year, but you should think of it in the range that we've been talking about now. I would now like to turn the conference over to your speaker host, James Kisner, Vice President of Investor Relations. Is there any color you can give us around this? And what type of customers are you seeing this? Utility water sales increased 14% Y/Y. In the past, Big Cartel used Amazon S3 for storage and Fastly for their content delivery network. Please. Statements on this call include forward-looking statements that include our future financial results, use of our IPO proceeds, results from new product and partner announcements, our ability to compete effectively, acquiring new customers in retain and expand our business with existing customers, hiring and retaining key personnel, and effectively manage our growth. No, not necessarily. In terms of the company in two years' time, we need to continue to grow the company with both of our cloud offerings and with a particular focus on B2 Cloud Storage and our opportunity there. We recently had a key milestone launching the beta of Cloud Reapplication. I would now like to read questions that came from non-institutional investors. Thanks for taking the question. So, we haven't seen too much on that front. Okay. To submit questions, please visit: https://app.saytechnologies.com/backblaze-2022-q2. Our partner ecosystem continues to grow, which I'd like to underscore by describing two new partnerships in addition to the joint solution with SoDA I mentioned earlier. We are monitoring it very closely, but we're okay for a first half of all of our purchases this year.
We also will be doing the B. Riley Institutional Investor Conference on May 25th and May 26th in Los Angeles. We work with Beam, Commvault and Catalogic and others for virtual machine backups. B2 Reserve also makes it easier for channel partners to include B2 when they sell backup, storage or other products that work well with B2. So, I wouldn't really look I don't really look at what they are doing in relation to all of that. Just to also clarify Erik, we don't outlay some large amount of cash preemptively. And so we've it's early. Next one is also for Gleb. Founded in 2007, the company is based in San Mateo, CA. And our next question coming from the line of Zach Cummins with B. Riley. Thank you for your participation. And by switching to us, it will actually be lower cost for them to keep the data for that 12-month period. An archive of the webcast will be available shortly after its completion on the Investor Relations page of the Backblaze website athttps://ir.backblaze.com. As the leading independent cloud for data storage, at Backblaze, we continue to make it astonishingly easy to store, use and protect data.
Can you speak about some of the specific actions that you've taken and what your plans are for the balance of 2022? By unlocking an improved customer experience for these Alliance Partners, our Partner API allows them to easily build additional cloud services into their product portfolio, which in turn drives increased demand for Backblaze B2 as the cloud storage back end for those services. We're sponsoring the [indiscernible] developer-focused GlueCon events coming up. We take a look at China's international projects and what they mean for the rest of the world.
As a reminder, Cloud Reapplication makes it easy for customers to keep a copy of their data geographically distributed to support disaster recovery, compliance objectives or to help move the data closer to end users for faster access. Just to reiterate what I just want to say that our B2 business and our B2 product growth is really very good. Your line is open. But given their mission to support independent business owners, they felt ethically conflicted about using Amazon for obvious reasons. The answer isnt fully clear, though; markets have fallen for most of this year, but the last few days have seen the best trading in weeks. And then second, Cloudflare is obviously a very important partner for you guys, but they announced there are three solutions back in September. Will the Products Group management be overhauled in a way it's used for the MSP or IT industry with a better management and better [indiscernible], automation that can use in commercial spaces that easily can be used in the residential? Thank you, Gleb and Frank for those answers. It's a fair question, and we would like to be proactive and transparent. And so to the extent that they're continuing to try to run their businesses, we are trying to help them with their different initiatives. Backblaze B2 contributed sales of $7 million, reflecting 48% growth. But we're seeing pipeline scale. Frank? Customers of diversified cloud providers often want to leave, but have been locked in through the complexity of getting their data out and excessive egress fees. I assume that's you're reiterating that. And the commitment is that they keep the data with us for one-year. Big Cartel's mission is to make it simple for artists and creators to build a unique online store and sell their work. Over the years, Fortune has amassed hundreds of thousands of hours of video that they serve for future use. What would be an example of how you can reduce the egress cost? Bloomberg Daybreak, anchored from New York, Boston, Washington DC and San Francisco provides listeners with everything they need to know. Last one for Gleb. [Operator Instructions] Our first question coming from the line of Ittai Kidron with Oppenheimer. We continued to innovate to make it even easier for managed service providers and mid-market IT organizations to handle their storage needs. I'll now turn the call over to Frank Patchel, who can review the financial results of the quarter in more detail. We work with partners such as MSP360 and Retrospect for server backup. Is the goal of the company and team focused on home and residential user groups with continued development in the storage back end available through S3, or will the company a shared marketplace, both residential and commercial? The Backblaze Storage Cloud provides a foundation for businesses, developers, IT professionals, and individuals to build applications, host content, manage media, backup and archive data, and more. Earnings season is now in full swing, but most of the big hitters at Wall Streets quarterly extravaganza will report the periods financials next week. Thank you, Gleb, and thanks, everyone, for joining us today. But basically, NRR is the growth of the recurring revenue for an initial set of customers, while gross customer retention measures retention of customers. Wedbush's Daniel Ives thinks Apple will be able to meet expectations despite the albatross hanging round its neck. An example of why our new Universal Data Migration service is so valuable. Your line is open. I think that question is getting at whether we'll make our products more attracted to managed service providers and to company's IT departments. Hi, Victor, nice meeting you. Apple stock popped. B2 Cloud Storage is primarily focused on supporting businesses and developers. Over to Gleb. After the speaker's presentation, there will be a question-and-answer session. We've been we've put out a request for customers who were interested in the beta. But it's certainly on people's minds. Some of them are to get their systems into the cloud. Groups is a functionality, which made it easier for MSP, managed service products and for companies IT departments to manage multiple users, companies or departments. Okay. I wanted to revisit the gross margin. Eric, I'm going to repeat your question as Frank didn't hear the last bit of it. And if you've observed any adjustments from peers to their pricing strategy recently that might affect the value proposition from Backblaze? We're the time line of getting it launched in the first half of this year, which is our target before and we're still on track to do that. The 76% was slightly ahead of what you had guided. Can you maybe just expand on some of the dynamics that help drive that? In early 2021, we started our outbound sales effort to complement those models. James Kisner, CFA Vice President, Investor Relations and Corporate Development ir@backblaze.com, Jeanette FosterCommunications Managerpress@backblaze.com. We developed a solution that manages SoDA services, giving customers the security and support they need to move their data over. Badger Meter (BMI) delivered earnings and revenue surprises of 7.55% and 1.71%, respectively, for the quarter ended June 2022. Pairing CTERA's enterprise cloud services platform with Backblaze B2 provides customers a path to cloud adoption without the painful step of rebuilding their data structures and workflows in the cloud. On the call with me today are Gleb Budman, Co-Founder, CEO and Chairperson of the Board; and Frank Patchel, Chief Financial Officer. Our discussion today will include non-GAAP financial measures. And I continued to be enthusiastic about our opportunity there. With nearly two exabytes of data storage under management, the company currently works with more than 500,000 customers in over 175 countries. Another recent partner announcement was our joint solution with CTERA. Further, Amazon S3 had recent service outages that caused the company to worry about having Amazon S3 as a single point of failure for storing customer content. Yes, the Computer Backup side, we continue to grow that business through acquiring more customers, but the acceleration in growth there is proven in strong price increase that we did last year as it continues to roll through the entire base. Got it.
So given that B2 has a very high revenue per user, very high revenue retention rate and the overall growth rate is very high, we do expect B2 to eventually overtake Backup as the larger business in the coming years. Fortune Media needed a place to keep these extensive video archives cost effectively. Our Q1 revenue totaled $19.5 million, an increase of 27% year-on-year. Hi guys this is Victor in for Simon. It's not that we think they're placing it someplace out. At this time all participants are in a listen-only mode. After learning about Backblaze and our partnership with Fastly, which includes free egress to them, Bit Cartel recognized an opportunity to adopt an alternative to Amazon that fit Big Cartel's ideals and ethos as well as their use case. What Percentage Of Backblaze, Inc. (NASDAQ:BLZE) Shares Do Insiders Own? We're really committed to being a great value. Sales growth was most notable in ultrasonic meters, ORION Cellular endpoints, and BEACON SaaS revenue. Yes. James Kisner is the senior vice president and senior analyst at Jefferies & Company. As such, we think for modeling purposes that looking at the average absolute dollar growth of the last four quarters sequentially is a reasonable estimate of growth for B2 Cloud Storage for quarter two. Europe, Menlo Park, China), Where the person is located (e.g. Based on their feedback, Backblaze was certified as a Great Place to Work this February. Maybe I'll start before we finish, Frank. There isn't. We had said that our gross margin was increasing very slightly over time that would simply because the expenses for headcount and other areas of the data centers we're not growing as fast and that's likely still the case. To help Canadians better manage their finances, BMO today announced the launch of its new Pre-Authorized Payments Manager on the BMO Mobile Banking app. I want to take a moment to thank our talented and dedicated team of employees who make all of this possible. These NRR and gross customer retention metrics were all within one point or two points of the values for Q4 2021. Number three, Partner API. So, what we're thinking that is that the customers are not creating as much data for storage. At tiers of [Technical Difficulty] we're seeing a similar trend. A reconciliation of GAAP to non-GAAP results may be found in our earnings release, which was furnished with our Form 8-K filed today with the SEC. Or, you could check out the Journal of Retirements in-depth study of Cramers Charitable Trust performance and see that Cramers por. Just where is the stock market going, thats the question investors are trying to answer. We're also pleased to announce that Backblaze is planning to participate in a stock purchase program, which rewards individual shareholders who hold a minimum amount of shares for a specified period of time with exclusive gifts. Snap Inc. has never been an investor-friendly company as long as those investors weren't their founders, and the parent company of the Snapchat app made that even clearer Thursday. B2 Reserve is attractive to customers who are more accustomed to paying for storage on an annualized basis, such as an on-premise offering or those that just want more predictable pricing. Well, just to reiterate, we don't guide for B2 growth, but we wanted to be transparent about what we were seeing so that everyone could understand B2 growth and how your models could be accurate in that regard. ET) to discuss the results. When in the quarter have you seen this?
And so will the biggest of them all; Apple (AAPL) will deliver its third fiscal quarter results (June quarter) after the close on July 28th (Thursday).
Or what are they doing with the data if they're not storing it at Backblaze? We are executing on the strategy we laid out by investing significantly in our products and platform and in our sales and marketing efforts. But if you had to attribute it to factors, would you say it was aided mostly by the price increase or maybe better-than-expected customer ends than maybe you originally anticipated, curious for your thoughts there? And kind of are you still on that same time line to get this fully launched in the second half of this year? And then the other item that we highlighted last quarter was our partner marketing team. Does Backblaze currently compete for any large government contracts? Most people think of Fortune Magazine when they think of Fortune Media, but one of Fortune's most valuable assets is its extensive video archive, which includes conference recordings, executive interviews, panel discussions and more. Generally, we're focused on our significant organic opportunities, but we keep an open mind to anything that can accelerate our strategy. Before handing over to Frank, there are two customer stories I want to share with you that demonstrate the value that B2 Cloud Storage can bring for businesses.
I encourage everyone to read that at backblaze.com/blog. Backblaze makes it astonishingly easy to store, use, and protect data. There is no reason for them to do that. So today, already thousands of our customers use Computer Backup for laptops and desktop backup and B2 Cloud Storage for their network and server backup needs and being able to use this makes it easy and cost-efficient storage available for both types of use cases. Adjusted EBITDA was a loss of $3 million or 15% of revenue, down from the positive $2.1 million or 14% in quarter one of 2021. As a result of the partnership between Backblaze and Fastly, Big Cartel's infrastructure costs have gone down even as they doubled their storage footprint. Okay. So, an example of that is that we bundle together multiple clients and set up direct connect systems where it will be complicated and likely not cost efficient for them to do that on a one-off basis. Customers love our B2 Cloud Storage, but some are not set up to purchase in a pay-as-you-go consumption model. So, how should I think about gross margin because I'm sure your cost of building your data centers that is rising on a peer-to-peer basis? that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligation to update them except as required by law.
