Backblaze (NASDAQ:BLZE) Posts Quarterly Earnings Results

Backblaze (NASDAQ:BLZE) issued its earnings results on Monday. The company reported $0.04 earnings per share (EPS) for the quarter, FiscalAI reports. Backblaze had a negative net margin of 17.56% and a negative return on equity of 27.38%. The firm had revenue of $38.67 million during the quarter, compared to analysts’ expectations of $37.78 million.

Here are the key takeaways from Backblaze’s conference call:

• Backblaze added geo enrichment to its traffic dataset, revealing a heavy U.S. concentration and country-level hotspots (e.g., Germany, Netherlands, Singapore, Finland, U.K.) that the company uses to inform where to place connectivity and capacity.
• The company highlighted the rising prevalence of elephant flows—large single transfers (often 100–400+ Gbps)—which are now a primary driver of network behavior and planning.
• Backblaze is scaling infrastructure and products to match demand, upgrading port capacities (100?400 Gbps and multiples thereof) and offering B2 Overdrive with S3-compatible links that can scale from 100 Gbps up to 1 Tbps.
• Neocloud and hyperscaler traffic is bursty and unpredictable (occurring any time), which complicates capacity planning compared with steady CDN/hosting/ISP traffic, and the company cannot see content-level activity so cannot determine application-specific migrations.

Backblaze Stock Performance

BLZE traded up $0.19 on Monday, reaching $4.64. The stock had a trading volume of 1,872,750 shares, compared to its average volume of 741,414. The business’s 50-day moving average price is $3.80 and its two-hundred day moving average price is $4.99. Backblaze has a 12-month low of $3.26 and a 12-month high of $10.86. The company has a market cap of $278.86 million, a P/E ratio of -10.09 and a beta of 1.41. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.26.

Analysts Set New Price Targets

A number of research firms have weighed in on BLZE. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Backblaze in a report on Monday, April 20th. B. Riley Financial raised shares of Backblaze to a “strong-buy” rating in a report on Thursday, April 2nd. Lake Street Capital reaffirmed a “buy” rating on shares of Backblaze in a report on Tuesday, February 24th. William Blair reaffirmed an “underperform” rating on shares of Backblaze in a report on Monday, March 23rd. Finally, Oppenheimer cut their price objective on shares of Backblaze from $9.50 to $8.50 and set an “outperform” rating for the company in a report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $7.21.

Institutional Trading of Backblaze

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in shares of Backblaze by 5.2% in the third quarter. Vanguard Group Inc. now owns 2,693,508 shares of the company’s stock valued at $24,996,000 after purchasing an additional 134,034 shares during the period. Wasatch Advisors LP acquired a new stake in shares of Backblaze in the third quarter valued at about $17,021,000. Pillsbury Lake Capital LLC acquired a new stake in shares of Backblaze in the fourth quarter valued at about $8,058,000. Geode Capital Management LLC grew its position in shares of Backblaze by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 1,341,863 shares of the company’s stock valued at $6,255,000 after purchasing an additional 53,583 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. grew its position in shares of Backblaze by 20.1% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 953,914 shares of the company’s stock valued at $8,852,000 after purchasing an additional 159,324 shares during the period. Institutional investors and hedge funds own 54.03% of the company’s stock.

About Backblaze

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. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as public, hybrid, and multi-cloud data storage; application development and DevOps; content delivery and edge computing; security and ransomware protection; media management; backup, archive, and tape replacement; repository for analytics, artificial intelligence and machine learning; and Internet of Things.