Backblaze (NASDAQ:BLZE) Announces Quarterly Earnings Results

Key Points

• Backblaze exceeded quarterly expectations: The company reported adjusted earnings of $0.09 per share, above the $0.05 consensus estimate, while revenue reached $46.65 million versus expectations of $44.59 million. However, it remained unprofitable, with a negative net margin of 13.07%.
• Shares fell 2.5% to $7.40 following the results, trading well below the 50-day moving average of $12.46. Backblaze’s stock has ranged from $3.26 to $23.99 over the past year.
• Analyst sentiment remains generally positive: Eight analysts rate the stock Buy, one rates it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $19.71. Recent insider stock sales by the CEO and CFO were made to cover tax withholding on vested equity awards.

Backblaze (NASDAQ:BLZE - Get Free Report) issued its quarterly earnings results on Monday. The company reported $0.09 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.04, FiscalAI reports. Backblaze had a negative net margin of 13.07% and a negative return on equity of 16.73%. The business had revenue of $46.65 million for the quarter, compared to the consensus estimate of $44.59 million.

Backblaze Trading Down 2.5%

NASDAQ:BLZE traded down $0.19 during trading hours on Monday, hitting $7.40. The stock had a trading volume of 5,611,165 shares, compared to its average volume of 2,118,923. The business's 50 day moving average is $12.46 and its 200-day moving average is $9.20. Backblaze has a one year low of $3.26 and a one year high of $23.99. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.00 and a current ratio of 1.00. The company has a market cap of $458.06 million, a price-to-earnings ratio of -21.76 and a beta of 1.64.

Wall Street Analyst Weigh In

A number of equities analysts have commented on BLZE shares. Oppenheimer boosted their price objective on shares of Backblaze from $15.00 to $25.00 and gave the stock an "outperform" rating in a report on Tuesday, August 4th. Needham & Company LLC restated a "buy" rating and issued a $23.00 target price on shares of Backblaze in a research report on Thursday, September 10th. Citizens Jmp upped their price objective on shares of Backblaze from $16.00 to $21.00 and gave the stock a "market outperform" rating in a report on Tuesday, August 4th. B. Riley Financial lifted their target price on Backblaze from $16.00 to $24.00 and gave the stock a "buy" rating in a report on Tuesday, August 4th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Backblaze in a research note on Wednesday, August 12th. Eight equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $19.71.

Insider Transactions at Backblaze

In other news, CEO Gleb Budman sold 12,855 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $15.82, for a total value of $203,366.10. Following the transaction, the chief executive officer directly owned 2,192,103 shares of the company's stock, valued at $34,679,069.46. This represents a 0.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Marc Suidan sold 2,110 shares of the business's stock in a transaction dated 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 directly owned 349,518 shares of the company's stock, valued at approximately $5,529,374.76. The trade was a 0.60% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 4.20% of the stock is currently owned by company insiders.

About Backblaze

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.

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