SAN MATEO, Calif. - Backblaze, Inc. (NASDAQ:BLZE), a company specializing in cloud storage solutions, has announced the appointment of Marc Suidan as its new Chief Financial Officer, effective August 16, 2024. Suidan brings over two decades of financial expertise to the role, having previously served as CFO of The Beachbody Company (NYSE:BODi) and holding leadership positions at PricewaterhouseCoopers and McKinsey & Company.
Gleb Budman, CEO and Chairperson of Backblaze, expressed his enthusiasm for Suidan's arrival, citing his extensive experience in guiding companies through periods of financial growth. Budman highlighted Suidan's strategic background as an asset for Backblaze's mission to provide customers with more freedom in cloud computing and data management.
Suidan succeeds Frank Patchel, who is set to retire in the third quarter of 2024. Patchel has been commended for his significant contributions, including leading the company through its initial public offering and subsequent years of expansion.
In his statement, Suidan acknowledged Backblaze's unique position in the cloud services industry and expressed eagerness to contribute to the company's continued growth and profitability. His track record includes driving shareholder value and innovation, particularly in the technology and media sectors, including SaaS cloud companies.
Backblaze, headquartered in San Mateo, California, prides itself on offering a modern alternative to traditional cloud providers. The company's services enable customers to develop applications, manage media, secure backups, and more, while promoting an open cloud ecosystem.
In other recent news, Backblaze Inc. has experienced significant developments. The company reported robust Q1 growth, with a 28% year-over-year increase in revenue, reaching $30 million. In particular, the B2 cloud storage revenue grew by 47% to $14.6 million, while computer backup revenue increased by 14% to $15.3 million. Operational efficiencies were highlighted, with an adjusted gross margin improvement to 77% and a positive adjusted EBITDA at $1.9 million.
Analyst firm Oppenheimer maintained an Outperform rating on Backblaze but lowered the price target to $11 from $13. The firm anticipates that Backblaze will report second quarter revenue for 2024 that aligns with the company's guidance of $30.7-31.1 million. This figure represents a year-over-year increase of approximately 25.7% at the midpoint.
Furthermore, Backblaze's CFO, Frank Patchel, announced his retirement, but he will assist with the transition. The company provided Q2 guidance, expecting revenue between $30.7 million and $31.1 million and an adjusted EBITDA margin of 6% to 8%. The full-year 2024 revenue guidance is between $126 million and $128 million, with an adjusted EBITDA margin of 8% to 10%.
InvestingPro Insights
As Backblaze, Inc. (NASDAQ:BLZE) welcomes Marc Suidan as its new CFO, the company's financial landscape presents a mix of challenges and opportunities. According to real-time data from InvestingPro, Backblaze currently has a market capitalization of $211.91 million, reflecting the size of the company in the competitive cloud storage market. Despite the company's significant revenue growth over the last twelve months, with a 21.93% increase as of Q1 2023, profitability remains elusive.
An InvestingPro Tip highlights that analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about the company's financial prospects under Suidan's financial stewardship. This revision may be indicative of strategic initiatives that could positively impact Backblaze's bottom line. Additionally, with a gross profit margin of 50.37% as of Q1 2023, the company demonstrates a strong ability to retain revenue after the cost of goods sold, which could be a key focus area for the new CFO.
However, it's worth noting that the stock has experienced significant volatility, with a price total return of -48.44% over the last three months. This could reflect investor concerns about the company's short-term financial health, as another InvestingPro Tip points out that short-term obligations exceed liquid assets, potentially raising liquidity issues that the new CFO will need to address.
For readers interested in deeper financial analysis and additional insights, there are more InvestingPro Tips available at https://www.investing.com/pro/BLZE, which can provide a comprehensive view of Backblaze's financial performance and future outlook.
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