Backblaze Q3 revenue up 14%, beats estimates

Backblaze

06/11/2025 12:25

Overview

Backblaze Q3 revenue grows 14% YoY, slightly beating analyst expectations

Adjusted EPS for Q3 beats analyst estimates, reflecting improved profitability

B2 Cloud Storage revenue increased 28% YoY, highlighting strong segment growth

Outlook

Company expects Q4 2025 revenue between $37.3 mln and $37.9 mln

Backblaze raises full-year 2025 adjusted EBITDA margin forecast to 18%-20%

Company narrows full-year 2025 revenue guidance to $145.4 mln to $146.0 mln

Result Drivers

B2 CLOUD STORAGE GROWTH - B2 Cloud Storage revenue grew 28% YoY, driven by price-performance and open platform, per CEO Gleb Budman

GROSS MARGIN IMPROVEMENT - Gross margin expanded by ~700 bps YoY to 62%, attributed to operational efficiencies

AI CUSTOMER EXPANSION - Secured a seven-figure expansion deal with an AI-powered video surveillance customer

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$37.20 mln
$36.93 mln (8 Analysts)
Q3 Adjusted EPS
Beat
$0.03
-$0.12 (5 Analysts)
Q3 EPS
-$0.07
Q3 Adjusted Net Income
$1.90 mln
Q3 Net Income
-$3.80 mln
Q3 Adjusted Gross Profit
$29.40 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Backblaze Inc is $11.50, about 18.8% above its November 5 closing price of $9.34

Press Release: ID:nBw1BXkT1a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)