Backblaze (BLZE) AI Stock Analysis

• Market Cap: $318.42M
• Dividend Yield: N/A
• Average Volume (3M): 444.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 21.81%
• EPS Growth: 28.80%
• Country: US
• Employees: 346
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): -0.03
• Shares Outstanding: 54,900,000
• 10 Day Avg. Volume: 369,385
• 30 Day Avg. Volume: 444,975
• PEG Ratio: N/A
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 172.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.50
• Price Target Upside: 67.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $6.50 ▲(14.44%Upside)

Backblaze's strong revenue growth and positive sentiment from the latest earnings call are significant strengths, contributing to a positive outlook. However, ongoing profitability issues and valuation concerns due to negative earnings weigh down the score. Technical indicators suggest current bullish momentum, but overbought conditions may pose short-term risks.

Positive Factors

Financial Performance

Backblaze reported solid first-quarter results above the Street while providing second-quarter guidance roughly in line with consensus.

Revenue Growth

ARR grew 15% year-over-year, driven by continued progress across Backblaze’s recent go-to-market enhancements, sustained B2 Cloud momentum, and NRR of 113%.

Strategic Partnerships

Focus on more strategic partnerships and tailwinds from GenAI should drive sustainable growth and profitability.

Negative Factors

Accounting Allegations

The analyst disagrees with the allegations of accounting malpractice at Backblaze and sees the share pullback as a buying opportunity.

Stock Dilution

The recent secondary offering added 7.2M shares to the share count, leading to a lower $11 price target due to dilution.

Backblaze Business Overview & Revenue Model

Company Description

Backblaze, Inc. (BLZE) is a cloud storage and data backup company headquartered in San Mateo, California. Founded in 2007, the company operates primarily within the technology and cloud computing sectors. Backblaze offers a variety of services, including personal and business backup solutions, cloud storage services, and data management tools. Its core products include Backblaze Personal Backup, Backblaze Business Backup, and B2 Cloud Storage, which cater to individuals, businesses, and developers seeking reliable, cost-effective data storage and backup solutions.

How the Company Makes Money

Backblaze generates revenue through a subscription-based model, primarily from its cloud storage and backup services. The company's key revenue streams include Personal Backup, Business Backup, and B2 Cloud Storage. Personal and Business Backup services are offered on a subscription basis, allowing users to pay monthly or yearly for unlimited data backup. B2 Cloud Storage provides scalable, on-demand storage solutions priced based on usage, with fees based on the amount of data stored and the bandwidth consumed. Additionally, Backblaze partners with various software and technology companies to integrate its storage solutions, thereby expanding its customer base and driving revenue growth. Factors such as competitive pricing, ease of use, and high reliability contribute to Backblaze's ability to attract and retain customers, supporting its revenue model.

Backblaze Financial Statement Overview

Summary

Backblaze demonstrates strong revenue growth and improving cash flow, yet faces profitability challenges. Enhancing cost management and reducing dependency on debt could improve financial health. The company shows potential but must manage operational inefficiencies to achieve sustainable profitability.

Income Statement

Backblaze's revenue has shown a strong growth trend, with a 25.1% increase in TTM. However, profitability metrics like net and EBIT margins remain negative, indicating operational challenges. The gross profit margin has improved to 54.3%, which is a positive sign. Continuing to grow revenue while addressing cost efficiency could enhance future profitability.

Balance Sheet

The debt-to-equity ratio is 0.60, indicating moderate leverage. Stockholders' equity has significantly improved, but the equity ratio at 46.0% suggests potential reliance on debt financing. Improving profitability could enhance financial stability, but current liabilities remain substantial.

Cash Flow

Operating cash flow has turned positive in the TTM, a positive development from previous years. Free cash flow is positive, but the growth rate remains a concern. Cash flow ratios like operating cash flow to net income are favorable due to negative net income, but improving net income remains crucial.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
127.63M	102.02M	85.16M	67.48M	53.78M
	Gross Profit
69.34M	49.86M	43.86M	34.34M	27.98M
	EBIT
-46.29M	-57.91M	-48.41M	-18.79M	-3.73M
	EBITDA
-16.54M	-31.02M	-24.54M	-1.61M	9.22M
	Net Income Common Stockholders
-48.53M	-59.71M	-51.70M	-21.70M	-6.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.78M	29.30M	65.42M	104.84M	6.08M
	Total Assets
168.56M	131.69M	150.91M	163.58M	54.47M
	Total Debt
46.34M	46.85M	44.87M	33.25M	31.48M
	Net Debt
563.00K	34.35M	38.18M	-71.59M	25.40M
	Total Liabilities
90.94M	86.75M	82.36M	68.09M	61.31M
	Stockholders Equity
77.62M	44.94M	68.56M	95.49M	-6.84M
Cash Flow		Free Cash Flow
10.79M	-27.58M	-29.76M	-7.69M	7.84M
	Operating Cash Flow
12.51M	-7.35M	-13.78M	3.52M	12.82M
	Investing Cash Flow
-6.13M	21.66M	-73.85M	-11.19M	-4.97M
	Financing Cash Flow
22.77M	-8.84M	-6.21M	106.61M	-8.75M

Backblaze Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 5.68 is above the 20-day moving average (MA) of 5.59, above the 50-day MA of 5.01, and below the 200-day MA of 6.09, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 44.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLZE.

Backblaze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBX	75 Outperform	$8.30B	19.36	-60.11%	―	0.79%	0.59%
BLZE	66 Neutral	$318.42M	―	-74.75%	―	21.81%	28.80%
TENB	66 Neutral	$4.02B	―	-12.09%	―	11.79%	35.35%
AVPT	65 Neutral	$3.98B	―	-8.39%	―	21.70%	-67.95%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
KPLT	47 Neutral	$42.65M	―	86.76%	―	9.71%	-1.97%

Backblaze Corporate Events

Backblaze Secures $20 Million Credit Facility

On June 4, 2025, Backblaze, Inc. entered into a credit agreement with Citizens Bank, N.A., securing a $20 million senior secured revolving credit facility. This agreement, which includes various financial covenants and pledges, is intended to support the company’s working capital and general corporate purposes, potentially impacting its operational flexibility and financial strategy.

The most recent analyst rating on (BLZE) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Backblaze stock, see the BLZE Stock Forecast page.

Backblaze Holds 2025 Annual Stockholders Meeting

On May 27, 2025, Backblaze, Inc. held its 2025 Annual Meeting of Stockholders via webcast, where stockholders voted on two proposals. The first proposal involved the election of Class I directors, Barbara Nelson and Earl E. Fry, who were elected to serve until the 2028 annual meeting. The second proposal ratified Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and financial oversight strategies.

The most recent analyst rating on (BLZE) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Backblaze stock, see the BLZE Stock Forecast page.