Backblaze (BLZE) Stock Forecast & Price Target

Backblaze Inc. has consistently achieved total revenue growth of 20% or more year-over-year over the past five years, demonstrating strong financial performance. Expected growth in B2 revenue is projected to accelerate to at least 30% year-over-year by the fourth quarter of FY25, reflecting positive management outlook. Additionally, the growing demand for cloud storage services, particularly from AI customers who have seen a 66% year-over-year increase, coupled with a 25x year-over-year increase in AI customer data, positions Backblaze favorably in the market.

Backblaze Inc has consistently reported a lack of profitability, with historically negative free cash flow and earnings, raising concerns about its financial stability. The company's primary revenue driver, the Computer Backup service, generated 48% of revenues in the first quarter of 2025, but forecasts suggest that growth will decelerate to single-digit percentages in subsequent years. Additionally, significant infrastructure costs contribute to considerable depreciation, adversely affecting GAAP gross margins, further complicating the company's path to profitability.