Backblaze files IPO to grow brand, data center presence

Thursday, November 18th 2021

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“Backblaze will probably have to grow faster to keep shareholders happy, but they’re not far off where they need to be,” said Dave Raffo, a senior analyst at Evaluator Group.

He noted the company’s prospectus indicates an expectation to raise between $89.5 million to $103.4 million.

A crowded market

Backblaze business cloud storage and services compete directly with hyperscalers such as AWS, Azure and Google Cloud Platform, along with smaller cloud storage vendors such as Wasabi. Its backup offerings compete most directly with other cloud-based backup products such as Druva, Clumio, Datto and Commvault’s Metallic backup-as-a-service suite.

“They’re in a rapidly growing market and have a chance to greatly expand their revenues and income,” Raffo said. “The downside is, it’s also a highly competitive market, and they face some of the largest IT companies.”

Raffo noted that Backblaze generated $54 million in revenue last fiscal year and $31 million in revenue until June of this year, according to the filing.

“Backblaze has been more of a bootstrap company that relies on a little bit of funding and tries to keep losses down instead of taking hundreds of millions of dollars from VCs and spending lavishly to grow,” Raffo said.

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