Backblaze Inc. Shares Surge After Strong Earnings and CoreWeave Deal

Backblaze Inc. saw its shares rise nearly 27% on Tuesday following second-quarter financial results that surpassed Wall Street expectations. The company reported revenue of $42.7 million, an 18% year-over-year increase, driven largely by a 34% surge in B2 Cloud Storage revenue to $26.6 million. Adjusted earnings per share reached $0.08, significantly exceeding the predicted $0.02, while adjusted EBITDA nearly doubled to $12.8 million.

In response to the growth, the company raised its full-year revenue guidance to approximately $173 million and increased its adjusted EBITDA margin target to 28%. The financial performance coincided with a new strategic partnership, as the company entered into a collaboration with CoreWeave Inc., an AI cloud infrastructure developer. The agreement is valued at $335 million over more than five years and includes the acquisition of warrants by CoreWeave Inc. valued at approximately $22 million.

Chief Executive Officer Gleb Budman attributed the company's positioning to the specific needs of the artificial intelligence sector, noting that AI workloads require a capacity storage layer capable of scaling to exabytes with attractive economics.