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Backblaze, Inc. (BLZE)
:BLZE
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Backblaze
(NASDAQ:BLZE)
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Rating:66Neutral
Price Target:
$8.00
▼(-18.28% Downside)
Backblaze's overall stock score is driven by strong technical momentum and positive earnings call insights, particularly around AI-driven growth and strategic execution. However, ongoing profitability challenges and a negative valuation score due to losses weigh down the overall score. The stock repurchase program adds a positive note to the corporate events.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.
AI Opportunities
AI-driven growth highlights Backblaze's ability to capitalize on emerging tech trends, enhancing its competitive position and revenue potential.
Gross Margin Improvement
Improved gross margins reflect operational efficiencies and cost management, contributing to better profitability prospects.
Negative Factors
Profitability Challenges
Ongoing losses and negative margins indicate difficulty in achieving profitability, which may hinder long-term financial stability.
Decline in NRR
A decline in NRR suggests potential challenges in customer retention and revenue sustainability, affecting future growth.
Challenges in Computer Backup Segment
Slow growth in the Computer Backup segment indicates potential market saturation or competitive pressures, impacting overall growth.
Backblaze (BLZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$590.99M
Dividend YieldN/A
Average Volume (3M)794.84K
Price to Earnings (P/E)―
Beta (1Y)1.39
Revenue Growth19.08%
EPS Growth28.99%
CountryUS
Employees346
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.01
Shares Outstanding56,500,000
10 Day Avg. Volume958,800
30 Day Avg. Volume794,836
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.54
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda-14.21
Forecast
1Y Price Target
$9.30Price Target Upside-5.01% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Backblaze Business Overview & Revenue Model
Company DescriptionBackblaze, Inc., a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as backups, multi-cloud, application development, and ransomware protection. In addition, the company offers Backblaze Computer Backup that automatically backs up data from laptops and desktops for businesses and individuals, which provides a subscription-based Software-as-a-Service and serves use cases, including computer backup, ransomware protection, theft and loss protection, and remote access. It serves the public cloud IaaS storage and Data-Protection-as-a-Service markets. The company was incorporated in 2007 and is headquartered in San Mateo, California.
How the Company Makes MoneyBackblaze 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
Backblaze's earnings call reflected strong financial performance with significant growth driven by AI opportunities and successful execution of their go-to-market strategy. However, there are concerns about the sustainability of AI-driven growth and challenges in the Computer Backup segment, which may affect future performance.Q2-2025 Updates
Positive Updates
Exceeding Revenue and EBITDA Guidance
Backblaze delivered a strong Q2, exceeding both the revenue and adjusted EBITDA guidance for the second consecutive quarter. Total revenue was $36.3 million, up 16% year-over-year, with B2 revenue at $19.8 million, up 29% year-over-year. Adjusted EBITDA margin doubled year-over-year to 18%.
Significant AI Opportunities
AI customers grew 70%, and data stored by these customers increased 40x year-over-year. Three of the top 10 customers are now AI companies, highlighting the significant impact of AI on financial metrics this quarter.
Go-to-Market Transformation Success
The number of customers generating over $50,000 in ARR increased by 30% year-over-year. The pipeline doubled year-over-year, with a growing increase in six-figure opportunities entering the pipeline quarter-over-quarter.
Innovative Product Launches
Backblaze launched B2 Overdrive, securing a six-figure customer within two months of its launch. They also introduced security-focused features such as Anomaly Alerts, Enterprise Web Console, and Bucket Access Logs.
Improvement in Gross Margin
Gross margin improved to 63% from 55% in the prior year, driven by changes in estimates of asset lifespan and operational efficiencies.
Negative Updates
Decline in NRR
Net Revenue Retention (NRR) for B2 Cloud Storage dropped to 112% from 126% in the prior year and 117% in the prior quarter, mainly due to the lapping effect of a previous price increase.
Challenges in Computer Backup Segment
Computer Backup revenue grew by only 4% year-over-year. A decline in this segment is expected in the low to mid-single digits on a quarterly basis moving forward.
Potential Variability in AI Customer Growth
While AI customer growth was a significant driver this quarter, there is potential variability in future quarters, creating some uncertainty in sustaining growth rates.
Company Guidance
During Backblaze's second quarter 2025 earnings call, the company reported exceeding both revenue and adjusted EBITDA guidance for the second consecutive quarter. Total revenue reached $36.3 million, marking a 16% increase year-over-year, while B2 revenue grew by 29% year-over-year to $19.8 million. The adjusted EBITDA margin doubled to 18% year-over-year. The company emphasized its progress towards becoming adjusted free cash flow positive by Q4 and highlighted a 30% year-over-year increase in customers generating over $50,000 in ARR. Backblaze's go-to-market transformation and AI-related opportunities significantly contributed to its growth, with AI companies now comprising 3 of its top 10 customers and data storage by these customers growing 40x year-over-year. The company also reported a gross margin improvement to 63% from 55% in the prior year, driven by a reassessment of its hardware's estimated useful life. Looking ahead, Backblaze raised its 2025 annual revenue guidance to a range of $145 million to $147 million, attributing the upward revision to better-than-expected B2 performance.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.65
Positive
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.50
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 132.27M | 127.63M | 102.02M | 85.16M | 67.48M | 53.78M |
| Gross Profit | 72.79M | 69.34M | 49.86M | 43.86M | 34.34M | 27.98M |
| EBITDA | -22.31M | -16.54M | -31.02M | -24.54M | -1.61M | 9.22M |
| Net Income | -46.80M | -48.53M | -59.71M | -51.70M | -21.70M | -6.62M |
Balance Sheet | ||||||
| Total Assets | 170.16M | 168.56M | 131.69M | 150.91M | 163.58M | 54.47M |
| Cash, Cash Equivalents and Short-Term Investments | 53.23M | 54.91M | 29.30M | 65.42M | 104.84M | 6.08M |
| Total Debt | 47.84M | 46.34M | 46.85M | 44.87M | 33.25M | 31.48M |
| Total Liabilities | 92.40M | 90.94M | 86.75M | 82.36M | 68.09M | 61.31M |
| Stockholders Equity | 77.77M | 77.62M | 44.94M | 68.56M | 95.49M | -6.84M |
Cash Flow | ||||||
| Free Cash Flow | 6.35M | 10.79M | -27.58M | -29.76M | -7.69M | 7.84M |
| Operating Cash Flow | 14.03M | 12.51M | -7.35M | -13.78M | 3.52M | 12.82M |
| Investing Cash Flow | -3.48M | -6.13M | 21.66M | -73.85M | -11.19M | -4.97M |
| Financing Cash Flow | 19.05M | 22.77M | -8.84M | -6.21M | 106.61M | -8.75M |
Backblaze Technical Analysis
Positive
9.79
Price Trends
7.65
Positive
6.52
Positive
6.19
Positive
Market Momentum
0.73
Positive
60.66
Neutral
60.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLZE, the sentiment is Positive. The current price of 9.79 is above the 20-day moving average (MA) of 9.40, above the 50-day MA of 7.65, and above the 200-day MA of 6.19, indicating a bullish trend. The MACD of 0.73 indicates Positive momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLZE.
Backblaze Risk Analysis
Backblaze disclosed 55 risk factors in its most recent earnings report. Backblaze reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Backblaze Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | 8.20B | 19.11 | -37.18% | ― | -0.04% | -5.07% | |
66 Neutral | $590.99M | ― | -69.83% | ― | 19.08% | 28.99% | |
63 Neutral | 3.62B | -78.90 | -12.83% | ― | 11.41% | 33.76% | |
62 Neutral | 3.24B | -299.61 | -1.90% | ― | 24.41% | 40.20% | |
53 Neutral | 83.17M | -2.45 | 59.15% | ― | 13.23% | -1.78% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
BLZE
Backblaze
9.54
3.16
49.53%
DBX
Dropbox
31.42
6.11
24.14%
TENB
Tenable Holdings
29.57
-10.35
-25.93%
KPLT
Katapult Holdings
17.31
6.87
65.80%
AVPT
AvePoint
15.35
3.64
31.08%
Backblaze Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Backblaze Announces $10 Million Stock Repurchase Program
Positive
Aug 7, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.