SAN MATEO, Calif. - Backblaze, Inc. (NASDAQ:BLZE), known for its cloud storage solutions, is poised to become a part of the Russell 3000® and Russell 2000® Indexes starting July 1, 2024, according to a recent announcement. This inclusion marks a significant step in the company's expansion and recognition within the investment community.
The Russell Indexes are utilized by investment managers and institutional investors for creating index funds and as benchmarks for various investment strategies. With approximately $10.5 trillion in assets benchmarked against these indexes as of December 2023, the inclusion of Backblaze could potentially increase its visibility among investors.
Backblaze's CEO, Gleb Budman, commented on the milestone, highlighting the company's dedication to innovation in cloud storage and its aim to enhance shareholder value within the substantial cloud storage market.
The company, founded in 2007 and headquartered in San Mateo, California, offers secure and high-performance cloud storage services. These services are used for a variety of purposes, including application development, media management, backup security, AI workflows, and protection against ransomware.
The company prides itself on providing a modern alternative to traditional cloud providers, focusing on breaking customers free from proprietary systems and enabling open cloud workflows with preferred providers at a lower cost. Backblaze's customer base spans over 500,000 users across 175 countries.
As the company prepares to join the Russell Indexes, it continues to position itself as a contender in the cloud storage industry, competing in a market estimated to be worth $50 billion. This development is based on a press release statement from Backblaze, Inc.
In other recent news, Backblaze, Inc. reported a strong start to 2024 in its first-quarter earnings call, noting a 28% year-over-year increase in revenue to $30 million. The firm's adjusted EBITDA margin was positive at 6%, and cash usage was significantly reduced to $600,000 for the quarter.
The company's B2 cloud storage revenue grew by 47% to $14.6 million, while computer backup revenue increased by 14% to $15.3 million. Backblaze also provided optimistic guidance for the second quarter and reaffirmed its full-year revenue and adjusted EBITDA guidance.
In other developments, the company is focusing on innovation, technology, and expansion into the AI market. CFO Frank Patchel announced his retirement but will assist with the transition. Backblaze expects to maintain at least $20 million in cash by the end of 2024 and anticipates generating cash by mid-2025. They have no plans to offer dividends, focusing instead on investing in growth. These are some of the recent developments from Backblaze, Inc.
InvestingPro Insights
As Backblaze, Inc. (NASDAQ:BLZE) gears up for its inclusion in the Russell 3000® and Russell 2000® Indexes, the company's financial and market performance metrics provide valuable insights for investors considering this growing cloud storage provider.
According to InvestingPro data, Backblaze boasts a market capitalization of $239.7 million, reflecting its status as a small-cap company with potential for growth in the dynamic cloud storage market.
InvestingPro Tips reveal that two analysts have revised their earnings upwards for the upcoming period, indicating an optimistic outlook on the company's financial trajectory. Moreover, despite the challenges, Backblaze has demonstrated a high return over the last year, with a 52.51% year-over-year price total return, showcasing its resilience and appeal to investors.
While the company does not pay dividends, which may be a consideration for income-focused investors, its significant revenue growth of 21.93% over the last twelve months as of Q1 2024 suggests that Backblaze is expanding its market share and enhancing its financial performance. A strong gross profit margin of 50.37% in the same period indicates the company's ability to effectively manage its cost of goods sold and maintain profitability on its core services.
Investors interested in a deeper analysis will find additional InvestingPro Tips for Backblaze at https://www.investing.com/pro/BLZE. With these insights, coupled with the company's strategic moves such as joining the Russell Indexes, Backblaze continues to present itself as an intriguing option for those looking to invest in the cloud storage sector. For those looking to access a comprehensive suite of investment tools and data, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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