GICS Sector : Technology
Backblaze, 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.
Backblaze reported a strong Q4, with revenue growth and adjusted free cash flow profitability, a significant milestone for the company. The adjusted EBITDA margin doubled to 28% compared to the prior year. The actual EPS came out at $0.06, beating estimates of $0.01. The company's financial performance was highlighted by record bookings and a significant deal with an 8-figure TCV, validating the product-market fit at scale.
Publication Date: Mar -08
The company made meaningful progress in its go-to-market transformation, with a focus on increasing awareness, driving pipeline consistency, and expanding revenue within the installed base. The launch of Flamethrower, a start-up program, and the hiring of key leadership talent were notable initiatives. Backblaze is positioning itself to take advantage of the AI opportunity, with a focus on delivering massive performance with large-scale data sets while providing cost efficiency.
The company has launched B2 Neo, a high-performance white label storage offering specifically designed for neoclouds, and has signed multiple multibillion-dollar neoclouds with significant deals. The neocloud storage opportunity alone is estimated to represent a $14 billion opportunity by 2030. Gleb Budman noted that the company views the neocloud opportunity as significant and is well-positioned to pursue it, with a white label offering that provides high performance, low cost, and durability.
With a P/S Ratio of 1.5 and an EV/EBITDA of 70.8, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 10.9%. The company's guidance for the year expects revenue to be in the range of $156.5 million to $158.5 million, with adjusted EBITDA margins expected to be 19% to 21%. The NRR is expected to be around 110% at the end of 2026, with a growth rate of 20% for B2 and the overall company.
The company's growth is driven by its ability to deliver high-performance storage solutions, its expanding pipeline, and its increasing presence in the neocloud market. The duration of the $15 million-plus deal is 3 years, and the company is not factoring in any revenue from this deal in 2026. The company's CapEx will be higher in 2026, with a percentage of revenue in the high 20s, and is financed through capital leases.
Backblaze to Announce First Quarter 2026 Results on May 4, 2026
Apr -15
Backblaze Honored On The 2026 CRN® Storage 100 List
Apr -14
Backblaze Appoints Anuj Kumar as Chief Revenue Officer
Apr -13
Backblaze Partners to Showcase Joint Solutions at the 2026 NAB Show
Apr -06
Backblaze, Inc. $BLZE Stake Increased by JPMorgan Chase & Co.
Apr -05
Backblaze Publishes Q1 2026 Performance Stats: Data Shows Cloud Storage Performance Varies Significantly by Region, With No Single Provider Dominant Across Geographies
Apr -02
Backblaze Storage Pod Enters the Historical Record: Computer History Museum Adds Original Storage Pod to Permanent Collection
Mar -31
Backblaze, Inc. (NASDAQ:BLZE) Short Interest Up 37.8% in March
Mar -31
Backblaze's subscription-based arrangements for computer backup are driven by increasing demand for cloud-based data storage, growing adoption of remote work, and rising concerns about data security and ransomware attacks. Additionally, the company's competitive pricing, user-friendly interface, and reliable backup services contribute to its 12.53% growth.
Backblaze's Consumption-based Arrangements (B2 Cloud Storage) growth of 24.67% is driven by increasing adoption of cloud storage solutions, rising demand for data backup and archiving, and the company's competitive pricing strategy. Additionally, the growing need for scalable and secure data storage, coupled with the shift towards hybrid and multi-cloud environments, contributes to the segment's rapid expansion.
Backblaze's Physical Media segment growth of 10.27% is driven by increasing demand for cloud-based data storage, rising adoption of hybrid cloud strategies, and growing need for data archiving and compliance. Additionally, the company's focus on providing low-cost, high-capacity storage solutions and expanding its partner network contribute to its growth momentum.
A cloud-based backup service that automatically backs up data from computers and external drives
A cloud-based object storage service that allows users to store and serve large amounts of data
A cloud-based backup service designed for businesses to protect their data across multiple computers and locations
Backblaze's cloud backup service is a niche product, and customers have limited alternatives. However, the company's focus on providing a low-cost, high-capacity backup solution reduces the threat of substitutes.
Backblaze's customers have some bargaining power due to the availability of alternative cloud backup services. However, the company's competitive pricing and feature set help to mitigate this power.
Backblaze's suppliers of hardware and infrastructure have limited bargaining power due to the company's ability to negotiate favorable terms and its focus on vertical integration.
The threat of new entrants in the cloud backup market is moderate, as it requires significant investment in infrastructure and technology. However, the low barriers to entry in the software industry make it easier for new competitors to emerge.
The cloud backup market is highly competitive, with several established players competing for market share. Backblaze's focus on providing a low-cost, high-capacity solution helps the company to differentiate itself in this competitive landscape.
| Value | |
|---|---|
| Debt Weight | 36.10% |
| Debt Cost | 8.09% |
| Equity Weight | 63.90% |
| Equity Cost | 10.01% |
| WACC | 9.32% |
| Leverage | 56.50% |
Value: 3.4
Growth: 6.8
Quality: 6.9
Yield: 0.0
Momentum: 5.0
Volatility: 5.3
1-Year Total Return ->
Value: 4.4
Growth: 7.9
Quality: 6.1
Yield: 0.0
Momentum: 2.0
Volatility: 4.0
1-Year Total Return ->
Value: 7.4
Growth: 7.1
Quality: 2.8
Yield: 0.0
Momentum: 3.0
Volatility: 3.3
1-Year Total Return ->
Value: 9.4
Growth: 5.1
Quality: 4.5
Yield: 0.0
Momentum: 0.5
Volatility: 3.3
1-Year Total Return ->
Value: 8.9
Growth: 6.2
Quality: 4.8
Yield: 0.0
Momentum: 1.0
Volatility: 1.0
1-Year Total Return ->
Value: 6.2
Growth: 3.2
Quality: 3.6
Yield: 0.0
Momentum: 2.0
Volatility: 2.0
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