Backblaze Inc. (NASDAQ:BLZE) shares are trading higher Tuesday after the company reported better-than-expected third-quarter financial results on Monday after the market closed and raised its fiscal 2026 revenue guidance above estimates. The company also issued fourth-quarter revenue guidance above estimates.
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Backblaze Tops Earnings, Revenue Estimates; B2 Cloud Storage Revenue Up 47%
Backblaze reported third-quarter adjusted earnings per share of 9 cents, beating the consensus estimate of a loss of 8 cents. The company reported revenue of $46.654 million, up 26% from a year earlier, beating the consensus estimate of $44.590 million. B2 Cloud Storage revenue rose 47% to $30.5 million, while Computer Backup revenue fell 2% to $16.2 million.
Gross profit was $29.8 million, a 64% margin, up from 62%. Adjusted EBITDA rose to $15.2 million, a 33% margin, from $8.4 million, and the net loss narrowed to $2.4 million from $3.8 million. Annual recurring revenue rose 29% to $190.7 million, with B2 ARR up 53% to $126.8 million, and cash and marketable securities totaled $230.2 million.
“B2 revenue growth accelerated to 47% year over year, up from 28% a year ago, reflecting broad-based momentum across our customer base,” said Gleb Budman, Backblaze’s co-founder and CEO.
Backblaze Adds Record Self-Serve Customers, Signs Four AI Deals
Backblaze said it added a record number of net new B2 self-serve customers, four times as many as a year earlier. The number of customers contributing more than $50,000 each in annual recurring revenue rose 57% to 254, and the company signed four large agreements across AI and core workloads. Net revenue retention was 105%, compared with 107% a year earlier, and B2 net revenue retention was 115%, compared with 116%. Budman said Backblaze is solidifying its role as the capacity tier for AI infrastructure companies and AI builders.
Backblaze Raises 2026 Revenue Outlook, Guides Q4 Above Estimates
Backblaze raised its fiscal 2026 revenue guidance to a range of $177.8 million to $178.2 million from $172.0 million to $174.0 million, versus the consensus estimate of $172.963 million. For the fourth quarter, it expects revenue of $49.8 million to $50.2 million, versus the consensus estimate of $46.988 million.
Backblaze Shares Rush Higher
BLZE Price Action: At the time of publication, Backblaze shares are trading 8.24% higher at $8.01, according to data from Benzinga Pro.
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