Backblaze Surges 2% After Hours — Here's Why

Backblaze Inc. (NASDAQ:BLZE) shares climbed 2.1% to $6.31 in after-hours trading on Thursday.

Check out the current price of BLZE stock here. 

The move followed the company's third-quarter earnings release.

Solid Financial Results

Backblaze’s B2 Cloud Storage division was the main driver of its $37.2 million in revenue for the quarter that ended on September 30, an increase of 14% year over year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $8.4 million, representing 23% of revenue, up from 12% a year earlier.

The gross margin of the California-based company increased by about 700 basis points to 62%.

See Also: What Drove Akamai’s 7% Overnight Surge?

Profitability and Cash Flow Milestones

CEO Gleb Budman said the results "exceeded the high end of guidance," citing disciplined cost management and growing demand from AI and data-heavy customers.

Backblaze reported its first non-generally accepted accounting principles (GAAP) net income of $1.9 million, narrowing its net loss to $3.8 million from $12.8 million a year earlier.

With $50.3 million in cash and marketable securities, the company is expected to achieve free-cash-flow positivity in the fourth quarter, according to the press release.

Moderate Growth Outlook

The company forecasted fourth-quarter revenue between $37.3 million and $37.9 million, with an adjusted EBITDA margin of 20%–22%.

Stock Performance

Backblaze shares have gained 1.31% year to date and 36.73% over the past six months.

They have traded between $3.94 and $10.86 over the past year and carry a market capitalization of $349.17 million.

Price Action: According to Benzinga Pro data, the cloud storage and data backup company closed Thursday at $6.18.

Benzinga Edge Stock Rankings indicate that BLZE has a negative price trend across all time frames. Here is how the stock fares on other parameters.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.