Will AI and Data-Heavy Workloads Fuel Backblaze's Next Growth Leg?

Core Insights - Backblaze (BLZE) is experiencing growth driven by increasing demand for artificial intelligence and data-heavy workloads, necessitating scalable and cost-efficient storage solutions [1][3] - The B2 Cloud Storage platform is pivotal to this growth, with a significant rise in data stored by AI customers and an increase in AI-focused clients [2][7] - Backblaze's competitive positioning is challenged by companies like Dropbox and Datadog, which are enhancing their AI-enabled cloud infrastructure offerings [4] Company Performance - In Q2 2025, data stored by AI customers increased 40 times year over year, and the number of AI-focused clients grew by 70% [2] - Backblaze anticipates Q3 2025 revenues between $36.7 million and $37.1 million, reflecting approximately 29% year-over-year growth [2] - Year-to-date, Backblaze shares have risen by 51.7%, outperforming the Zacks Internet-Software industry and the Computer and Technology sector [5] Valuation Metrics - Backblaze's forward 12-month price-to-sales ratio stands at 3.16, which is lower than the industry average of 5.45 [9] - The Zacks Consensus Estimate for Q3 2025 indicates a loss of one cent per share, representing a 90% improvement year over year [11]