Backblaze raises annual outlook after Q1 results beat

Backblaze

04/05/2026 21:25

Overview

Cloud storage provider's Q1 revenue rose 12%, beating analyst expectations

Adjusted EPS for Q1 was $0.04, beating analyst expectations

Company raised full-year 2026 revenue and adjusted EBITDA margin outlooks

Outlook

Backblaze sees Q2 revenue between $39.8 mln and $40.2 mln

Company expects Q2 adjusted EBITDA margin between 21% and 23%

Backblaze raises 2026 revenue outlook to $161.5 mln-$163.5 mln

Company raises 2026 adjusted EBITDA margin guidance to 23%-25%

Result Drivers

B2 CLOUD STORAGE GROWTH - B2 Cloud Storage revenue rose 24% YoY, driven by increased demand and higher annual recurring revenue

AI CUSTOMER TRACTION - Co cited growing traction with AI customers, including new contracts contributing $1.5 mln in annual contract value and a 76% YoY increase in AI customer count

LARGE CUSTOMER EXPANSION - ARR from large customers grew 72% YoY, with a 51% increase in customers generating $50,000+ in ARR

Company press release: ID:nBw9tPDYRa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$38.7 mln
$37.79 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.04
-$0.09 (5 Analysts)
Q1 EPS
-$0.10
Q1 Adjusted Net Income
$2.7 mln
Q1 Net Income
-$6.1 mln
Q1 Adjusted Gross Profit
$30.7 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "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 $8.00, about 79.8% above its May 1 closing price of $4.45

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)