Backblaze (NASDAQ:BLZE) Issues Earnings Results

Key Points

• Backblaze reported EPS of $0.04 and revenue of $38.67 million (above the $37.78 million consensus), but remains unprofitable with a negative net margin of 17.56% and a negative return on equity of 27.38%.
• Traffic analysis shows a rising prevalence of elephant flows (100–400+ Gbps) and a U.S.-heavy demand profile, driving capacity upgrades (100→400 Gbps and multiples) and the launch of B2 Overdrive that can scale up to 1 Tbps to handle bursty hyperscaler traffic.
• Shares traded up to $4.64 on higher-than-average volume, institutional investors now own about 54% of the stock, and analysts are mixed — the consensus is a "Moderate Buy" with an average price target of $7.21.

Backblaze (NASDAQ:BLZE - Get Free Report) posted its earnings results on Monday. The company reported $0.04 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $38.67 million during the quarter, compared to the consensus estimate of $37.78 million. Backblaze had a negative net margin of 17.56% and a negative return on equity of 27.38%.

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 Price Performance

Shares of NASDAQ BLZE traded up $0.19 during mid-day trading on Monday, reaching $4.64. The company's stock had a trading volume of 1,017,308 shares, compared to its average volume of 731,695. The stock has a 50-day moving average of $3.80 and a two-hundred day moving average of $4.99. The stock has a market capitalization of $278.86 million, a P/E ratio of -10.09 and a beta of 1.41. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.07 and a current ratio of 1.07. Backblaze has a 1-year low of $3.26 and a 1-year high of $10.86.

Institutional Investors Weigh In On Backblaze

A number of hedge funds have recently modified their holdings of BLZE. 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. Renaissance Technologies LLC raised its position in shares of Backblaze by 94.5% in the fourth quarter. Renaissance Technologies LLC now owns 810,752 shares of the company's stock valued at $3,778,000 after buying an additional 393,936 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Backblaze by 165.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 480,281 shares of the company's stock valued at $4,457,000 after buying an additional 299,672 shares during the last quarter. Finally, Boothbay Fund Management LLC raised its position in shares of Backblaze by 619.8% in the fourth quarter. Boothbay Fund Management LLC now owns 269,663 shares of the company's stock valued at $1,257,000 after buying an additional 232,197 shares during the last quarter. 54.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Lake Street Capital restated a "buy" rating on shares of Backblaze in a research report on Tuesday, February 24th. Weiss Ratings restated a "sell (d-)" rating on shares of Backblaze in a research report on Monday, April 20th. William Blair restated an "underperform" rating on shares of Backblaze in a research report on Monday, March 23rd. Oppenheimer reduced their price objective on shares of Backblaze from $9.50 to $8.50 and set an "outperform" rating for the company in a research report on Tuesday, February 24th. Finally, B. Riley Financial upgraded shares of Backblaze to a "strong-buy" rating in a research report on Thursday, April 2nd. One research 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 assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $7.21.

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.

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