Backblaze (BLZE) is positioned as an attractive investment prospect, particularly for those looking to capitalize on rebound opportunities within small and mid-cap growth stocks. Despite a recent dip in its stock price due to concerns over growth deceleration, the company's updated financial outlook, especially its enhanced profit forecasts, suggests a robust underlying performance.
Looking ahead, Backblaze has adjusted its revenue forecast for fiscal year 2025, expecting to achieve between $145.4 million and $146 million, representing a 14% year-over-year increase. While the growth of its B2 Cloud Storage segment is anticipated to moderate to 25–28% in the fourth quarter, the company's profitability is on an upward trajectory. The adjusted EBITDA margin is now projected to be in the range of 18–20% for FY25, which would equate to an estimated EBITDA of $27.7 million. Moreover, analyst consensus for fiscal year 2026 anticipates continued revenue growth of 11% and an improved EBITDA margin of 21%. Currently, with its stock trading at $5 per share, Backblaze's valuation metrics—1.4 times enterprise value to FY26 revenue and 6.2 times enterprise value to FY26 EBITDA—underscore its appeal as a long-term investment.
This revised outlook, emphasizing stronger profitability and a compelling valuation, highlights Backblaze's potential for significant returns. The company's strategic focus on optimizing its financial performance, even amidst shifting growth rates, signals a mature and well-managed approach. For investors who believe in the enduring value of cloud storage solutions and the ability of companies to adapt and thrive, Backblaze represents a timely and promising opportunity to support innovation and progress in the digital infrastructure landscape.