Can Cybersecurity Innovations Help Backblaze Sustain Growth Ahead?

Backblaze’s BLZE 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 ServicesBackblaze faces competition from Dropbox DBX and Datadog DDOG, 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 & EstimatesShares 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 PerformanceImage Source: Zacks Investment ResearchFrom 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 ValuationImage Source: Zacks Investment ResearchThe 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. QuoteBackblaze currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dropbox, Inc. (DBX): Free Stock Analysis Report Datadog, Inc. (DDOG): Free Stock Analysis Report Backblaze, Inc. (BLZE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks