Update shared on 23 Nov 2025
Fair value Decreased 10%Analysts have adjusted their price target for Backblaze downward, lowering it from $11.74 to $10.55 per share. They cite moderating revenue growth expectations and a slightly higher discount rate in recent forecasts as the reasons for this adjustment.
Analyst Commentary
Recent analyst updates on Backblaze have provided varied perspectives, reflecting both optimism and caution regarding the company's near-term prospects and valuation outlook.
Bullish Takeaways
- Analysts remain optimistic about Backblaze's position within the analytics, data, infrastructure, and security software sector. They anticipate solid quarterly results across these areas.
- Ongoing feedback from industry channels points to robust deal flow in the third quarter and healthy pipeline generation heading into the fourth quarter.
- There is confidence in the company's ability to deliver revenue upside and modestly increase fiscal year guidance, indicating underlying business momentum despite competitive dynamics.
- For the longer term, outlooks are bullish with expectations that Backblaze will continue to capitalize on market opportunities and demonstrate durable growth over time.
Bearish Takeaways
- Some analysts have adopted a more cautious stance, citing moderating revenue growth expectations which may weigh on valuation multiples.
- Price targets have been reduced in light of slightly higher discount rates and updated financial forecasts. This reflects a less aggressive growth trajectory.
- There is concern that ongoing competition within the crowded software landscape could limit the company's near-term execution and growth acceleration.
What's in the News
- Backblaze announced a strategic integration of its B2 Cloud Storage platform with Shareio, allowing creators to securely store and monetize digital content without restrictive or expensive platforms (Client Announcements).
- The company reported a $258,000 impairment of long-lived assets for the three months ended September 30, 2025 (Impairments/Write Offs).
- Backblaze updated full-year 2025 earnings guidance, narrowing expected revenue to between $145.4 million and $146.0 million (Corporate Guidance, Lowered).
- For the fourth quarter of 2025, Backblaze provided revenue guidance of $37.3 million to $37.9 million (Corporate Guidance, New/Confirmed).
Valuation Changes
- Consensus Analyst Price Target has fallen from $11.74 to $10.55 per share, reflecting more conservative revenue assumptions.
- The discount rate has risen slightly from 9.16% to 9.69%, indicating a marginally higher risk premium applied to future cash flows.
- Revenue growth expectations have decreased from 13.33% to 10.69%, suggesting a slowdown in projected top-line expansion.
- Net profit margin has improved from 6.37% to 6.97%, pointing to greater expected operational efficiency.
- The future P/E multiple has declined from 82.74x to 71.68x, indicating lower valuation levels based on projected earnings.
Disclaimer
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