Backblaze (NASDAQ:BLZE) Issues Earnings Results

Backblaze (NASDAQ:BLZE) posted its earnings results on Monday. The company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of $0.05 by $0.04, FiscalAI reports. The business had revenue of $46.65 million during the quarter, compared to the consensus estimate of $44.59 million. Backblaze had a negative net margin of 13.07% and a negative return on equity of 16.73%.

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

• Q3 exceeded expectations, with revenue up 26% year over year to $47 million, adjusted EBITDA margin expanding to 33%, and full-year revenue guidance raised to $177.8–$178.2 million. Full-year adjusted EBITDA margin guidance also increased to 30%–31%.
• B2 Cloud Storage growth accelerated to 47% year over year, with B2 ARR reaching $127 million and net revenue retention improving to 115%. Growth was broad-based across self-serve, sales-led, and larger customers, although the May price increase contributed approximately 12 percentage points to B2 growth.
• CoreWeave and another large neocloud customer have begun ramping under multi-year minimum commitments, with the larger neocloud starting ahead of schedule. Management expects the neocloud agreements to contribute more meaningfully in the first half of 2027, with CoreWeave reaching its committed run rate by July 2027.
• AI-builder momentum strengthened, with the pipeline of new AI builders doubling sequentially in Q3 and four agreements exceeding $500,000 in ARR. Three existing AI customers more than doubled their original commitments within a year, supporting management’s confidence in 40%-plus B2 growth in 2027.
• Backblaze is accelerating capacity investment to support contracted demand, with fourth-quarter PP&E spending expected to reach $65 million–$83 million and capital expenditures projected at 55%–65% of revenue for the full year. Depreciation from capacity added ahead of customer ramps is expected to reduce GAAP gross margin by 3–6 percentage points over the next four to five quarters, while Computer Backup revenue is still expected to decline at a low-single-digit rate in Q4.

Backblaze Stock Performance

BLZE traded down $0.19 during trading on Monday, hitting $7.40. The company’s stock had a trading volume of 6,044,081 shares, compared to its average volume of 2,122,652. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.34. Backblaze has a one year low of $3.26 and a one year high of $23.99. The firm has a market cap of $458.06 million, a PE ratio of -21.76 and a beta of 1.64. The business’s 50 day simple moving average is $12.46 and its 200-day simple moving average is $9.20.

Insiders Place Their Bets

In other news, CFO Marc Suidan sold 2,110 shares of the business’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $15.82, for a total transaction of $33,380.20. Following the completion of the sale, the chief financial officer owned 349,518 shares of the company’s stock, valued at $5,529,374.76. The trade was a 0.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gleb Budman sold 12,855 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $15.82, for a total value of $203,366.10. Following the completion of the sale, the chief executive officer owned 2,192,103 shares of the company’s stock, valued at $34,679,069.46. This trade represents a 0.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 4.20% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Citigroup restated a “market outperform” rating on shares of Backblaze in a research note on Monday, September 14th. Citizens Jmp upped their price objective on Backblaze from $16.00 to $21.00 and gave the company a “market outperform” rating in a research report on Tuesday, August 4th. Weiss Ratings reissued a “sell (e+)” rating on shares of Backblaze in a report on Wednesday, August 12th. B. Riley Financial increased their target price on Backblaze from $16.00 to $24.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $23.00 target price on shares of Backblaze in a research report on Thursday, September 10th. Eight research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.71.

Backblaze Company Profile

Backblaze, Inc provides cloud storage and data backup services for businesses, developers and individual users. The company’s offerings are designed to help customers protect, store, manage and access data without maintaining their own extensive storage infrastructure.

Its primary products include Backblaze Computer Backup, a subscription service that automatically backs up data from computers, and Backblaze B2 Cloud Storage, an object-storage platform used for applications such as backup, archiving, content storage and media workflows.