What happened with BLZE today?
No read yet
Uses news and trading volume to explain the day’s move and how it relates to the market.
Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.
Backblaze, Inc. helps businesses and individuals store and protect their data. B2 Cloud Storage supplies the larger share of revenue: customers use it for backups, archives, application data and data-intensive workloads, paying mainly for the amount stored or buying committed capacity. Computer Backup supplies most of the rest, automatically backing up computers and external drives for a flat subscription fee per computer.
The business depends substantially on mid-market organizations, although it also serves individuals and larger enterprises. Revenue is spread across customers rather than concentrated in one buyer. Substantially all revenue is recurring, and expansion depends on retaining customers and getting them to store more data or buy additional services. Customers sign up directly or through partners; Powered by Backblaze lets partners sell storage under their own brands while keeping the customer relationship.
Backblaze runs its own storage software on commodity hardware housed in third-party data centers. Service delivery depends on those facilities, power, bandwidth and hardware availability. With flat-rate Computer Backup, growing data volumes can raise costs without increasing subscription fees. Privacy and data-transfer rules constrain how it handles customer data; the EU Data Act also requires portability and switching rights and restricts certain data transfers and access.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Amazon’s AWS competes directly for customers paying Backblaze to store data in the cloud. Watch AWS storage prices and bundled services: cheaper offers can pressure Backblaze’s prices or lead B2 customers to store less data.
Commvault and Backblaze compete for businesses paying to back up and recover computer and cloud data. Commvault sells mainly subscriptions; its Operational Recovery package covers endpoints and cloud applications, making changes to that offering relevant to Backblaze’s business backup customers.
Rubrik competes with Backblaze for businesses’ cloud-backup and ransomware-recovery spending, though it focuses more on enterprise cyber resilience. Watch its Rubrik Security Cloud subscriptions, whose higher tiers add ransomware monitoring and coordinated recovery after cyberattacks.
Cloudflare’s R2 competes with Backblaze B2 for developers and businesses paying to store application data and archives in the cloud.
Microsoft’s Azure competes for customers paying Backblaze for cloud storage, and its prices and broader service bundles can pressure Backblaze’s storage sales. Watch Azure storage offers that could make customers store less data with B2 or buy fewer Backblaze subscriptions.
Alphabet’s Google Cloud competes for customers paying Backblaze to store data, with prices and bundled services influencing Backblaze’s ability to win and retain them. Watch Google Cloud storage pricing and bundles for pressure on B2 customer acquisition and renewals.
Dropbox competes with Backblaze for individuals and businesses paying to protect computer files through cloud file storage and backup.
Backblaze relies on Western Digital hard drives to store customers’ data, so drive availability and cost affect its capacity expansion and service costs. Watch Western Digital’s high-capacity drives sold to cloud and enterprise customers—the product line tied to Backblaze’s storage infrastructure.
Western Digital Corp. earningsWDC
Western Digital's report will show demand for high-capacity drives used by cloud and enterprise customers, a key input to Backblaze's storage capacity and costs.
Focus on Western Digital's high-capacity drives for cloud and enterprise customers, along with its comments on demand and supply. Strength in that business would suggest a supportive market for the drives, but would not establish that Backblaze can get them on time or at a particular price. Weakness would point to a less favorable backdrop. The question is whether the drive market Backblaze relies on looks supportive for expanding storage capacity.
Commault Systems, Inc. earningsCVLT
Commvault's report will show business demand for endpoint and cloud-application backup and recovery, spending that it competes for with Backblaze.
Watch Commvault's comments on demand for backup and recovery services such as Operational Recovery, which covers endpoints and cloud applications. Strong demand would suggest businesses are still paying to protect that data, supporting the market Backblaze's business backup service addresses. Weak demand would point to tighter spending, but would not prove that Backblaze is losing customers. The conclusion is whether this business segment's demand is a tailwind or a pressure point for Backblaze.
Fed Interest Rate Decision
For Backblaze, the Fed’s decision on its benchmark interest rate matters because a change can affect the cost of borrowing on its variable-rate credit facility if the company draws on it.
Expected4.0%Last release4.0%
If it comes in above expectations
If policy rates rise, borrowing on the facility would cost Backblaze more in interest, increasing the cash needed to fund its operations and infrastructure.
If it comes in below expectations
If policy rates fall, borrowing on the facility would cost Backblaze less in interest, leaving more cash available for operations and infrastructure.
Amazon.Com Inc earningsAMZN
Amazon's report will offer a read on AWS's cloud business and storage competition, which can affect Backblaze's ability to win and retain B2 customers and set prices.
Read AWS cloud growth alongside any comments on storage prices or bundled services; growth in AWS overall does not establish how storage performed. Strong cloud demand paired with more attractive storage offers would make it harder for Backblaze to win and retain B2 customers and could constrain its pricing. Weaker demand or no notable push on offers would make that pressure less evident. The conclusion is whether AWS is intensifying competition for storage customers, not whether Backblaze has already lost them.
Backblaze, Inc. earningsThis company
Backblaze's report will show whether B2 Cloud Storage is growing through more customers and greater use, while Computer Backup holds on to its customers.
Read B2 Cloud Storage revenue alongside net revenue retention, which measures whether existing customers spend more or less over time. Above 100% means their revenue is expanding; if revenue grows while retention weakens, new customers are doing more of the work. Then compare Computer Backup revenue with license counts: stability in both suggests its subscriber base is holding, while steady revenue alongside falling counts may mean price increases are masking customer losses. The conclusion is whether Backblaze's growth rests on customers continuing to use and expand its services.
