“Backblaze is delighted to now help all organizations optimize their infrastructure in B2 Cloud Storage by eliminating, without unnecessary costs or complexities, their biggest barrier to choosing a new provider.” “Vendor lock-in is the #1 challenge organizations face with existing storage solutions-Universal Data Migration is here to answer that challenge,” said Nilay Patel, VP of Sales and Partnerships at Backblaze. Backblaze (NASDAQ:BLZE) shareholders have endured a 79 loss from investing in the stock a year ago. This turnkey service expands upon earlier work by Backblaze to support subsidized cloud-to-cloud data migration as well as transfers via internet and its Backblaze Fireball rapid ingest device. The art and science of stock market investing requires a tolerance for losing money on some of the shares you buy. Raymond James Maintains Outperform on Backblaze. These offerings are now rolled up in the universal service.In an era of blockbuster market debuts preceded by astronomical private financing rounds, Backblaze is a throwback to a time when sub-billion-dollar companies routinely went public to raise capital and build their profile in an effort to win the trust of customers. In the year that ended June 30, Backblaze's revenue totaled $59.9 million, with second quarter sales up about 17% to $16.2 million, according to the company's prospectus.īackblaze raised just $100 million in its offering, less than one-twentieth the amount raised this year by companies including GlobalFoundries, Robinhood and Bumble. Backblaze shares climbed 24% in their debut on Thursday and another 12% on Friday, lifting the price to $22.31 and giving the company a market cap of around $650 million. Over 100 technology companies have listed on U.S. exchanges this year and, by the standards of its peers, Backblaze is a micro-cap. At least 21 tech companies to debut in 2021 are worth over $10 billion. Coinbase is valued above $70 billion, Roblox is over $50 billion and Affirm topped $40 billion. Those companies all routinely tapped venture investors for hefty amounts of capital on their way to the public exchanges. Rivian raised $2.5 billion in a pre-IPO round in July. Backblaze, by contrast, had raised less than $3 million from outside investors between its formation in 2007 and earlier this year, when it issued $10 million in convertible notes.īut when Amazon went public in 1997, the company was generating $16 million in quarterly revenue. Until about a decade ago, when the private markets started to balloon with new entrants, it was still common for tech companies to go public with valuations below $1 billion.īackblaze executives had other reasons to go public in a highly-competitive market that features the biggest cloud services in the world from Amazon, Microsoft and Google. Backblaze currently stores two exabytes of data - that's 2 million terabytes - and has a half-million paying customers.īudman said the IPO presented a clear opportunity to open Backblaze's books to customers and prove that it's mature enough to be a long-term technology provider. He said the fresh capital will help the company expand its sales team as it faces off against industry heavyweights. Its B2 business, which competes with Amazon's S3 cloud storage offering, grew 61% in the second quarter. "I actually hope us showing this is possible for a mid-market company opens the path for more companies to do this," Budman said. "It used to be that other companies went public at other sized scales. It is expected to price during the week of November 8, 2021.I think people have been scared of it and so waited longer and longer. Riley Securities are the joint bookrunners on the deal. Oppenheimer & Co., William Blair, Raymond James, JMP Securities, and B. It plans to list on the Nasdaq under the symbol BLZE. The company has attracted over 480,000 customers, who use its Backblaze Storage Cloud platform across more than 175 countries on its approximately 2 exabytes, or 2 trillion megabytes, of data storage under management.īackblaze was founded in 2007 and booked $60 million in revenue for the 12 months ended June 30, 2021. It provides these cloud services through a purpose-built, web-scale software infrastructure built on commodity hardware. At the midpoint of the proposed range, Backblaze would command a fully diluted market value of $644 million.īackblaze states that it is a leading storage cloud platform, providing businesses and consumers cloud services to store, use, and protect their data. The San Mateo, CA-based company plans to raise $100 million by offering 6.3 million shares at a price range of $15 to $17. Backblaze, which provides cloud storage for consumers and SMBs, announced terms for its IPO on Tuesday.
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