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

As you might know, Backblaze, Inc. (NASDAQ:BLZE) just kicked off its latest quarterly results with some very strong numbers. Results overall were solid, with revenues arriving 2.5% better than analyst forecasts at US$36m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.13 per share, were 2.5% smaller than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the nine analysts covering Backblaze are now predicting revenues of US$145.9m in 2025. If met, this would reflect an okay 6.3% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 25% to US$0.57. Before this latest report, the consensus had been expecting revenues of US$145.2m and US$0.61 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

Check out our latest analysis for Backblaze

There's been no major changes to the consensus price target of US$11.11, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Backblaze, with the most bullish analyst valuing it at US$15.90 and the most bearish at US$7.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Backblaze's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Backblaze's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. So it's pretty clear that, while Backblaze's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Backblaze going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Backblaze (1 can't be ignored) you should be aware of.

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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.