Backblaze (BLZE, Financial) has received an Outperform rating from Citizens JMP analyst Rustam Kanga, with a price target set at $7. The analyst highlights that the surge in data, propelled by advancements in artificial intelligence, is outpacing what traditional cloud computing can manage, thereby increasing the demand for cost-effective cloud storage solutions. This positions Backblaze as a favorable option for investors, given its strategic alignment with these trends and an appealing valuation compared to its industry peers.
The company is well-suited to leverage these technological shifts, providing a viable and economical alternative to conventional cloud services. The analysis suggests that the company's fiscal 2025 guidance could either be met or exceeded, offering potential for growth. This outlook presents a promising opportunity for stakeholders, aligning with a broader market expectation for enhanced cloud storage capabilities driven by AI developments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Backblaze Inc (BLZE, Financial) is $11.56 with a high estimate of $15.90 and a low estimate of $7.00. The average target implies an upside of 126.17% from the current price of $5.11. More detailed estimate data can be found on the Backblaze Inc (BLZE) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Backblaze Inc's (BLZE, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Backblaze Inc (BLZE, Financial) in one year is $6.15, suggesting a upside of 20.35% from the current price of $5.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Backblaze Inc (BLZE) Summary page.
BLZE Key Business Developments
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Backblaze Inc (BLZE, Financial) reported a 15% increase in total revenue year-over-year, with B2 cloud storage achieving 23% growth.
- The company's adjusted EBITDA margin tripled to 18% compared to the same period last year.
- Backblaze Inc (BLZE) launched B2 Cloud Storage Overdrive, a new offering optimized for high-performance use cases like AI and machine learning.
- The company signed its largest total contract value (TCV) deal ever, displacing AWS and securing a multi-million dollar contract.
- Backblaze Inc (BLZE) is experiencing significant growth in AI-related business, with AI use cases being the fastest-growing segment in Q1.
Negative Points
- Backblaze Inc (BLZE) faced misleading reports from disgruntled former employees, which the company claims are part of a market manipulation scheme.
- Some customers are taking longer to make decisions due to the current business environment, potentially impacting sales cycles.
- The company's net revenue retention (NRR) for the B2 segment decreased from 126% to 117% due to the lapping of a previous price increase.
- There is a potential impact from tariffs on US imports, which could increase the cost of sales by approximately 1.5% if implemented.
- Backblaze Inc (BLZE) is still working on improving its partner and channel demand generation efforts as part of its go-to-market transformation.
