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SQL Server 2016 Managed Backup to Azure - On demand backup fails

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We are running SQL Server 2016 Std edition in Azure, and have configured Managed Backup (previously SmartAdmin from 2014).

When running the backup on demand stored procedure, one of our databases fails with the following message:

EXEC managed_backup.sp_backup_on_demand @database_name = 'mydatabase', @type = 'Database'

Msg 45202, Level 17, State 3, Procedure sp_add_task_command, Line 65 [Batch Start Line 37]
Timed out after 120 seconds waiting for Smart Admin job to complete. Please run the stored procedure again.

We are patched up to SQL Server SP1 + CU1.

What gives?


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