Backblaze (BLZE) AI Stock Analysis

• Market Cap: $535.62M
• Dividend Yield: N/A
• Average Volume (3M): 770.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 19.08%
• EPS Growth: 28.99%
• Country: US
• Employees: 346
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.01
• Shares Outstanding: 56,500,000
• 10 Day Avg. Volume: 514,352
• 30 Day Avg. Volume: 770,771
• PEG Ratio: 0.16
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 24.28
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: -15.37
• 1Y Price Target: $9.92
• Price Target Upside: 8.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 58 Neutral
• Price Target: $10.00 ▲(9.53% Upside)

Backblaze's stock score is driven by strong technical indicators and positive earnings call highlights, offset by financial performance challenges and valuation concerns. The company's growth in AI opportunities and revenue is promising, but profitability issues and sector-specific challenges remain significant.

Positive Factors

Revenue Growth

Backblaze's consistent revenue growth highlights its expanding market presence and effective business strategies, supporting long-term stability.

AI Opportunities

The significant growth in AI-related business indicates a strong future revenue stream and positions Backblaze well in a rapidly growing industry segment.

Gross Margin Improvement

Improved gross margins reflect enhanced operational efficiencies and cost management, contributing to better profitability prospects.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, with negative net profit margins, may hinder Backblaze's ability to reinvest in growth and sustain long-term financial health.

Decline in NRR

A decline in NRR indicates potential challenges in customer retention and revenue stability, which could affect future growth prospects.

Challenges in Computer Backup Segment

Slow growth in the Computer Backup segment suggests potential market saturation or competitive pressures, impacting overall revenue diversification.

Backblaze Business Overview & Revenue Model

Company Description

Backblaze, Inc. is a cloud storage and data backup company based in California, specializing in providing affordable and reliable solutions for individuals and businesses. Founded in 2007, Backblaze offers products such as personal cloud backup, business cloud storage, and the Backblaze B2 Cloud Storage service, catering to the needs of users seeking secure data management and protection. The company's innovative approach to data storage utilizes a cost-effective model that appeals to a broad range of customers, from casual users to enterprises.

How the Company Makes Money

Backblaze generates revenue primarily through its subscription-based services. The company offers various plans for its personal backup solution, which provides unlimited backup for a flat fee, appealing to individual users. For businesses, Backblaze offers its B2 Cloud Storage service, which charges customers based on the amount of data stored and the bandwidth used for data retrieval. This pay-as-you-go model allows businesses to scale their storage needs effectively. Additionally, Backblaze has formed strategic partnerships with other technology companies to enhance its service offerings, further contributing to its revenue streams by expanding its customer base and providing integrated solutions.

Backblaze Financial Statement Overview

Summary

Backblaze shows strong revenue growth and improved cash flow generation. However, persistent net losses and negative profit margins indicate challenges in achieving profitability. The balance sheet shows moderate leverage but highlights the need for improved equity financing.

Income Statement

Backblaze has demonstrated consistent revenue growth with a notable increase from $85.16 million in 2022 to $132.27 million TTM (Trailing-Twelve-Months). However, the company remains unprofitable, with a negative net profit margin of -35.4% TTM. The EBIT and EBITDA margins are also negative, indicating operational challenges. The gross profit margin is strong at 55%, showing efficient cost management in revenue generation.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.62, suggesting a balanced use of debt. However, the company has a low equity ratio of 45.7%, indicating a significant portion of assets is financed through liabilities. The return on equity remains negative due to ongoing losses, posing concerns for the company's ability to generate shareholder value.

Cash Flow

Operating cash flow is positive at $14.03 million TTM, and free cash flow has improved to $6.35 million, highlighting better cash management. However, the free cash flow to net income ratio is not meaningful due to persistent net losses. The company shows potential to generate cash despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.29M	127.63M	102.02M	85.16M	67.48M	53.78M
Gross Profit	78.60M	69.34M	49.86M	43.86M	34.34M	27.98M
EBITDA	-20.63M	-16.54M	-31.02M	-24.54M	-1.61M	9.22M
Net Income	-43.55M	-48.53M	-59.71M	-51.70M	-21.70M	-6.62M
Balance Sheet
Total Assets	186.04M	168.56M	131.69M	150.91M	163.58M	54.47M
Cash, Cash Equivalents and Short-Term Investments	50.54M	54.91M	29.30M	65.42M	104.84M	6.08M
Total Debt	61.60M	46.34M	46.85M	44.87M	33.25M	31.48M
Total Liabilities	106.40M	90.94M	86.75M	82.36M	68.09M	61.31M
Stockholders Equity	79.64M	77.62M	44.94M	68.56M	95.49M	-6.84M
Cash Flow
Free Cash Flow	8.40M	10.79M	-27.58M	-29.76M	-7.69M	7.84M
Operating Cash Flow	15.35M	12.51M	-7.35M	-13.78M	3.52M	12.82M
Investing Cash Flow	-15.88M	-6.13M	21.66M	-73.85M	-11.19M	-4.97M
Financing Cash Flow	18.76M	22.77M	-8.84M	-6.21M	106.61M	-8.75M

Backblaze Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLZE, the sentiment is Neutral. The current price of 9.13 is below the 20-day moving average (MA) of 9.68, above the 50-day MA of 8.98, and above the 200-day MA of 6.42, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLZE.

Backblaze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCN	70 Outperform	$3.92B	33.84	-41.63%	―	13.29%	79.98%
AVPT	62 Neutral	$2.97B	―	-2.60%	―	24.41%	40.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DBX	61 Neutral	$7.42B	17.36	-60.11%	―	-0.04%	-5.07%
JG	59 Neutral	$50.43M	―	-9.11%	―	18.99%	77.96%
BLZE	58 Neutral	$535.62M	―	-69.83%	―	19.08%	28.99%
BKKT	43 Neutral	$904.80M	―	-70.04%	―	111.83%	73.52%

Backblaze Corporate Events

Backblaze Announces $10 Million Stock Repurchase Program

On August 7, 2025, Backblaze announced a stock repurchase program, allowing the company to buy back up to $10 million of its Class A common stock over the next 12 months, enhancing financial flexibility. In its second quarter of 2025, Backblaze reported a 16% overall revenue growth, with a notable 29% increase in B2 Cloud Storage revenue, and introduced new cybersecurity features and AI-powered solutions, positioning itself as a leading independent cloud storage provider.