Backblaze, Inc. (NASDAQ:BLZE) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders will be ecstatic, with their stake up 25% over the past week following Backblaze, Inc.'s (NASDAQ:BLZE) latest quarterly results. The results look positive overall; while revenues of US$21m were in line with analyst predictions, statutory losses were 8.9% smaller than expected, with Backblaze losing US$0.37 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Backblaze

Taking into account the latest results, the consensus forecast from Backblaze's six analysts is for revenues of US$84.3m in 2022, which would reflect a solid 11% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$1.62 per share. Before this earnings announcement, the analysts had been modelling revenues of US$83.9m and losses of US$1.66 per share in 2022. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

There's been no major changes to the consensus price target of US$14.40, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Backblaze at US$18.00 per share, while the most bearish prices it at US$11.50. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 27% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Backblaze is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Backblaze. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Backblaze going out to 2024, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Backblaze you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.