Backblaze, Inc. (NASDAQ:BLZE), a cloud storage provider, traded slightly higher on Thursday following Tuesday's earnings report, when the company raised its full-year 2026 revenue and Adjusted EBITDA outlook.
- Where are BLZE shares going?
B2 Cloud Storage Drives Growth
Backblaze reported first-quarter adjusted EPS of four cents, beating analyst estimates for a nine-cent loss, while revenue rose 12% year-over-year to $38.7 million, above estimates of $37.79 million.
B2 Cloud Storage revenue increased 24% to $22.4 million, while Computer Backup revenue remained relatively flat at $16.2 million.
Adjusted EBITDA rose to $10.1 million, or 26% of revenue, from $6.4 million, or 18% of revenue, a year earlier. Net loss narrowed to $6.1 million from $9.3 million.
Backblaze raised full-year 2026 revenue guidance to $161.5 million-$163.5 million from prior guidance of $156.5 million-$158.5 million, above analyst estimates of $157.5 million.
The company also expects second-quarter revenue of $39.8 million to $40.2 million, ahead of estimates of $38.16 million.
AI Customer Momentum Accelerates
Backblaze said AI customer count grew 76% year-over-year during the quarter. The company added an AI training data company and a generative AI video creation company, together contributing about $1.5 million in annual contract value.
ARR from customers generating more than $50,000 annually increased 72% year-over-year, while the number of those customers rose 51%.
Outlook Raised
The company raised full-year 2026 revenue guidance to $161.5 million-$163.5 million from prior guidance of $156.5 million-$158.5 million.
Backblaze also raised its Adjusted EBITDA margin outlook to 23%-25% from 19%-21%. Second-quarter revenue is expected to be between $39.8 million and $40.2 million.
CEO Gleb Budman said, "We are seeing growing traction with AI customers," adding that "Backblaze is emerging as a compelling storage platform of choice for the AI economy."
BLZE Technical Outlook: Momentum and Key Chart Levels
Backblaze’s current price is significantly above its 20-day SMA of $4.38, indicating a strong bullish trend, with shares trading 71.6% above this moving average.
The RSI is currently at 87.79, suggesting the stock is in overbought territory and may pull back in the near term.
- Key Resistance: $8 — Nearby level where rebounds can stall.
- Key Support: $5.98 — Aligns with the 200-day SMA, providing a strong floor for price action.
BLZE Earnings Preview And Analyst Price Targets
Backblaze is slated to provide its next financial update on Aug. 6 (estimated).
- Revenue Estimate: $39.94 million (Up from $36.30 million)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $10.25. Recent analyst moves include:
- Lake Street: Buy (Raises target to $11 on May 5)
- Citizens: Market Outperform (Maintains target to $8 on May 5)
- Needham: Buy (Raises Target to $8.50 on May 5)
BLZE Stock Price Activity: Backblaze shares were up 0.14% at $7.41 at the time of publication on Thursday, according to Benzinga Pro data.
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