Backblaze’s BLZE rising exposure to artificial intelligence and data-heavy workloads is shaping the next phase of its growth trajectory. As enterprises process larger datasets and train more complex AI models, the need for scalable, cost-efficient and secure storage infrastructure continues to expand. BLZE’s open-cloud architecture and predictable pricing structure are gaining appeal among AI developers and enterprises seeking flexibility beyond hyperscale ecosystems.
The company’s B2 Cloud Storage platform remains central to this shift. In the second quarter of 2025, data stored by AI customers rose 40X year over year, while the number of AI-focused clients increased 70%. These trends highlight how data-heavy workloads are reshaping storage demand and driving higher utilisation within enterprise accounts. BLZE expects third-quarter 2025 revenues between $36.7 million and $37.1 million, indicating year-over-year growth of about 29%. The Zacks Consensus Estimate for third-quarter 2025 B2 Cloud Storage revenues is pegged at $20.88 million, up 29.05% year over year, suggesting continued strength in the segment.
With data volumes expanding rapidly across AI training, analytics and media workloads, BLZE’s combination of affordability, performance and security-focused design positions it to benefit from this ongoing demand surge. As AI and data-intensive applications scale globally, these trends could help fuel BLZE’s next growth leg and reinforce its position in the evolving cloud storage market.
BLZE Faces Intense Competition in the AI-Driven Cloud Market
Backblaze faces growing competition from Dropbox DBX and Datadog DDOG as both strengthen their presence in AI-enabled cloud infrastructure. Dropbox is upgrading its enterprise suite with AI-assisted file search, automated organisation, and advanced data management capabilities aimed at supporting content-heavy workflows. Datadog continues to expand its observability and monitoring platform with analytics tailored to AI model performance and large-scale data operations. Both Dropbox and Datadog are investing heavily in scalable, AI-focused infrastructure, intensifying competition for Backblaze as demand for cost-efficient and high-performance cloud storage continues to accelerate.
Backblaze’s Price Performance, Valuation & Estimates
Shares of BLZE have increased 51.7% year to date, outperforming the Zacks Internet-Software industry and Zacks Computer and Technology sector’s return of 16.9% and 23.2%, 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 3.16X, lower than the industry’s 5.45X. BLZE 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.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
