Backblaze is a cloud storage locker for files, photos, and app data, letting anyone back up computers or build software on top of cheap, simple storage. Think of it as a no-frills warehouse for digital stuff.
Money comes from two streams: B2 Cloud Storage, billed per gigabyte used (consumption-based), and Computer Backup, a flat monthly subscription. Gross margin is roughly 62% on recent quarters, but the company still loses money overall, with net margins around -
Backblaze's edge is its low-cost, commodity-hardware design, which lets it undercut giants like Amazon Web Services and Microsoft Azure on price. That cost advantage is real but eroding as hyperscalers slash prices and add features, so the moat is eroding.
Key events, in time order
Company announces convertible notes offering; stock down 7.6% premarket
Q2 revenue up 18% to $42.7M, B2 cloud storage up 34%, raises FY guidance
Company discloses drive fleet size and failure data, reflecting AI-driven storage demand
Multiple independent sources confirm the deal, highlighting its validation of AI infrastructure strategy
Q1 revenue of $38.7 million, up 12% year over year, with B2 growing 24% to $22.4 million
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