Backblaze Earnings Analysis and Market Trends

Backblaze's revenue growth has been impressive, with a 30% increase in 2020 compared to the previous year, reaching $234 million in revenue.

This growth can be attributed to the increasing demand for cloud storage services, which has been driven by the shift towards remote work and digital transformation.

Backblaze's customer base has also seen significant growth, with the company adding 1.5 million new customers in 2020 alone.

The company's focus on providing affordable and reliable cloud storage solutions has been key to its success, with its B2 cloud storage service offering unlimited storage for just $5 per month.

Backblaze's current share price is US$6.60, which is significantly lower than its 52 Week High of US$12.65. The company's stock has experienced a 33 Year Change of -70.55%.

In the past 11 months, Backblaze's stock has dropped by 8.33%, but in the last 3 months, it has increased by 3.94%. The 1 Year Change is a more modest -1.64%. One thing to note is that the company's beta is 0.99, indicating a relatively stable stock.

Here are the key changes in Backblaze's stock performance over the past year:

BLZE's revenue has been steadily increasing over the past few years, with a notable jump in the first quarter of 2022 when revenues exceeded analysts' expectations.

The company's revenue growth has been consistent, with a slight dip in the first quarter of 2022, but overall, it's been a steady increase from $41 million in 2019 to $123 million in 2024.

Here's a breakdown of BLZE's revenue over the past few years:

As for expenses, BLZE has been consistently spending more on research and development (R&D) than on general and administrative (G&A) expenses. In the latest reported earnings, R&D expenses accounted for $39 million, while G&A expenses were $71 million.

Backblaze's share price has been on a rollercoaster ride over the years, with a current price of US$6.60. This is a significant drop from its 52-week high of US$12.65.

The company's beta, which measures volatility, is 0.99, indicating that its stock price moves in tandem with the overall market. This is relatively low, suggesting that Backblaze's stock price is not as volatile as some other companies.

In the past 11 months, the stock price has dropped by 8.33%, while over the past 3 months, it has increased by 3.94%. This means that the company's stock price has been relatively stable in the short term.

Here is a summary of Backblaze's price history over the past year:

Over the past year, BLZE's shareholder returns were a concern, returning -1.6%, which is significantly lower than the US IT industry's 20.5%.

BLZE's performance was especially underwhelming compared to the broader US Market, which saw a 31.6% return over the same period.

The 7-day return for BLZE was 3.6%, which, while not terrible, still lags behind the US IT industry's 5.9% and the US Market's 2.2%.

Here's a quick comparison of BLZE's returns in relation to the US IT industry and the US Market:

These numbers highlight the need for investors to carefully evaluate BLZE's performance and consider the broader market trends before making any investment decisions.

Backblaze's revenue has grown steadily over the years, reaching $242 million in 2020, a 44% increase from the previous year. This growth is a testament to the company's successful business model.

The company's subscription-based model has been a key driver of its revenue growth, with the average revenue per user (ARPU) increasing by 15% year-over-year. This suggests that customers are becoming more engaged with Backblaze's services and are willing to pay more for them.

Backblaze's cost of revenue has also been increasing, but at a slower rate than its revenue, resulting in a gross margin of 74% in 2020.

In the market analysis, several competitors are vying for market share.

One notable competitor is Company A, which has been in the industry for over 20 years and has a strong presence in the market.

Their product offerings are similar to ours, with a focus on quality and customer satisfaction.

Company B is another competitor that is worth mentioning, with a strong online presence and a wide range of products.

Their marketing strategies are aggressive, with regular promotions and discounts.

Company C is a relatively new player in the market, but has quickly gained traction with its innovative products and competitive pricing.

Their target market is similar to ours, with a focus on young professionals and families.

BLZE's average weekly movement is 7.9%, which is relatively stable compared to the US market's average movement of 6.3%.

This stability is a good sign for investors, as it suggests that the company's stock price is less likely to experience sudden and drastic changes.

The IT industry average movement is 8.2%, which is only slightly higher than BLZE's average weekly movement.

This indicates that BLZE's stock price is not excessively volatile compared to its peers in the IT industry.

In fact, BLZE's weekly volatility has been stable over the past year, with an average of 8% weekly movement.

This level of stability is comparable to the industry average, but lower than the market average.

Here's a comparison of BLZE's volatility with other stocks in the US market:

Overall, BLZE's price volatility is relatively stable compared to the US market and its peers in the IT industry.