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Can Cybersecurity Innovations Help Backblaze Sustain Growth Ahead?
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Key Takeaways
Backblaze is leveraging cybersecurity innovations to drive growth in its B2 Cloud Storage platform.
AI-powered Anomaly Alerts and access tools are boosting security-led enterprise adoption.
The Zacks Consensus Estimate projects third-quarter 2025 B2 revenues at $20.88M, up 29.05% year over year.
Backblaze’s (BLZE - Free Report) strategic pivot toward cybersecurity innovations positions the cloud storage provider for sustained expansion as it captures rising demand at the intersection of data protection and artificial intelligence. BLZE continues to build momentum with offerings such as AI-powered Anomaly Alerts, which automatically detect unusual data transfers that may indicate ransomware or data exfiltration attempts.
This capability aligns with a growing enterprise focus on proactive threat prevention within cloud environments. Complementary tools like the Enterprise Web Console, enabling role-based access control and Bucket Access Logs, offering deeper visibility into data usage, further strengthen Backblaze’s enterprise security architecture. Collectively, these capabilities enhance the competitiveness of its B2 Cloud Storage platform while preserving its appeal for predictable pricing and operational simplicity.
Backblaze’s security-led innovation cycle is shaping the foundation for its next growth phase. After a 16% year-over-year revenue increase in the second quarter of 2025, led by a 29% rise in B2 Cloud Storage, BLZE expects third-quarter revenue between $36.7 million and $37.1 million, up 28-30% year over year. B2 growth is projected to approach 30% by year’s end, supported by expanding enterprise adoption and higher retention from security-driven workloads.
The Zacks Consensus Estimate for third-quarter 2025 B2 Cloud Storage revenues is pegged at $20.88 million, up 29.05% year over year, reflecting continued confidence in the company’s growth trajectory. With cybersecurity now central to its product strategy, Backblaze’s innovation-led approach appears well equipped to sustain growth ahead and strengthen its position within the evolving cloud storage market.
Competition in Cybersecurity-Focused Cloud Services
Backblaze faces competition from Dropbox (DBX - Free Report) and Datadog (DDOG - Free Report) , which are also intensifying their focus on cybersecurity-driven innovation. Dropbox is strengthening its enterprise platform with enhanced threat detection, access management, and compliance capabilities, while Datadog continues to expand its security monitoring and anomaly detection tools within cloud-native environments. Both Dropbox and Datadog are integrating AI-based analytics to provide deeper visibility into data activity, reflecting the growing convergence of cloud performance and cybersecurity. This underscores the increasingly competitive environment in which Backblaze is advancing its own security-led growth strategy.
Shares of BLZE have increased 66% year to date, outperforming the Zacks Internet-Software industry and Zacks Computer and Technology sector’s return of 19.7% and 24.4%, respectively.
BLZE’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Backblaze is trading at a forward 12-month price-to-sales ratio of 3.47X, lower than the industry’s 5.57X. JD carries a Value Score of F.
BLZE’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BLZE’s third-quarter 2025 loss is pegged at a penny per share, unchanged over the past 30 days. The earnings figure suggests a 90% improvement year over year.
Image: Bigstock
Can Cybersecurity Innovations Help Backblaze Sustain Growth Ahead?
Key Takeaways
Backblaze’s (BLZE - Free Report) strategic pivot toward cybersecurity innovations positions the cloud storage provider for sustained expansion as it captures rising demand at the intersection of data protection and artificial intelligence. BLZE continues to build momentum with offerings such as AI-powered Anomaly Alerts, which automatically detect unusual data transfers that may indicate ransomware or data exfiltration attempts.
This capability aligns with a growing enterprise focus on proactive threat prevention within cloud environments. Complementary tools like the Enterprise Web Console, enabling role-based access control and Bucket Access Logs, offering deeper visibility into data usage, further strengthen Backblaze’s enterprise security architecture. Collectively, these capabilities enhance the competitiveness of its B2 Cloud Storage platform while preserving its appeal for predictable pricing and operational simplicity.
Backblaze’s security-led innovation cycle is shaping the foundation for its next growth phase. After a 16% year-over-year revenue increase in the second quarter of 2025, led by a 29% rise in B2 Cloud Storage, BLZE expects third-quarter revenue between $36.7 million and $37.1 million, up 28-30% year over year. B2 growth is projected to approach 30% by year’s end, supported by expanding enterprise adoption and higher retention from security-driven workloads.
The Zacks Consensus Estimate for third-quarter 2025 B2 Cloud Storage revenues is pegged at $20.88 million, up 29.05% year over year, reflecting continued confidence in the company’s growth trajectory. With cybersecurity now central to its product strategy, Backblaze’s innovation-led approach appears well equipped to sustain growth ahead and strengthen its position within the evolving cloud storage market.
Competition in Cybersecurity-Focused Cloud Services
Backblaze faces competition from Dropbox (DBX - Free Report) and Datadog (DDOG - Free Report) , which are also intensifying their focus on cybersecurity-driven innovation. Dropbox is strengthening its enterprise platform with enhanced threat detection, access management, and compliance capabilities, while Datadog continues to expand its security monitoring and anomaly detection tools within cloud-native environments. Both Dropbox and Datadog are integrating AI-based analytics to provide deeper visibility into data activity, reflecting the growing convergence of cloud performance and cybersecurity. This underscores the increasingly competitive environment in which Backblaze is advancing its own security-led growth strategy.
Backblaze’s Price Performance, Valuation & Estimates
Shares of BLZE have increased 66% year to date, outperforming the Zacks Internet-Software industry and Zacks Computer and Technology sector’s return of 19.7% and 24.4%, respectively.
BLZE’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Backblaze is trading at a forward 12-month price-to-sales ratio of 3.47X, lower than the industry’s 5.57X. JD carries a Value Score of F.
BLZE’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BLZE’s third-quarter 2025 loss is pegged at a penny per share, unchanged over the past 30 days. The earnings figure suggests a 90% improvement year over year.
Backblaze, Inc. Price and Consensus
Backblaze, Inc. price-consensus-chart | Backblaze, Inc. Quote
Backblaze currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.