Backblaze raises annual outlook after Q1 results beat

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

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

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