William Blair analyst Jason Ader has reiterated their bullish stance on BLZE stock, giving a Buy rating today.
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Jason Ader has given his Buy rating due to a combination of factors that highlight Backblaze’s strong performance and promising outlook. The company reported impressive second-quarter results, surpassing market expectations with a notable increase in revenue and annual recurring revenue (ARR), particularly driven by the growth in B2 Cloud sales. This growth was fueled by a significant AI customer expanding its data storage needs, alongside enhanced go-to-market strategies that have successfully driven sales upmarket.
Additionally, Backblaze’s financial health is underscored by its first-ever quarter of positive non-GAAP earnings, alongside a raised full-year revenue guidance. The company’s management has expressed confidence in the continued acceleration of B2 Cloud sales, with expectations of substantial growth by year-end. Furthermore, the announcement of a $10 million stock repurchase plan, which is anticipated to be cash neutral, reflects a strategic move to enhance shareholder value. These factors collectively support the Buy rating, indicating a positive trajectory for Backblaze’s stock.