What Backblaze (BLZE) Said on Its Q3 Earnings Call
Backblaze (BLZE) reported Q3 earnings, highlighting a 230% YoY increase in AI search engine visits. CoreWeave and another neocloud customer began ramping on its platform, with CoreWeave's $335M contract. Q3 gross margin was 64%, up from 62% YoY. GAAP net loss narrowed to $2M, while non-GAAP net income was $6.7M. Cash flow from operations was $23M YTD. Q4 revenue guidance is $49.8M-$50.2M, with full-year revenue guidance raised to $177.8M-$178.2M.
How this was made
The 30-second read
Why it matters
The guidance raise signals stronger demand for B2 storage and AI workloads, likely prompting a short‑term rally.
Market read
Backblaze's upgraded outlook may lift the broader cloud‑storage sector and AI‑infrastructure stocks.
What to watch
Capital‑expenditure timing and margin pressure from early equipment depreciation could temper upside.
Background
Backblaze reported Q3 results, highlighted a $335 million CoreWeave contract, and raised its FY2026 revenue and EBITDA margin guidance.
Ticker impact
Backblaze raised full-year revenue and EBITDA margin guidance after its Q3 earnings call, adding $5 million to revenue outlook and expanding margin targets.
upside pressure as investors price in higher revenue and margin expectations
The company disclosed higher guidance and a sizable contract with CoreWeave, indicating future cash flow growth.
Market effects
Boosts outlook for cloud storage and AI‑infrastructure providers, potentially lifting peers.
Positive for US tech sector, especially data‑storage and AI‑related stocks.
Limited to tech‑focused investors; no broad macro impact.
Counterpoint
Guidance may be optimistic if AI demand softens or competition intensifies.
Key entities
- companyBackblaze, Inc.
US‑listed cloud storage provider (NASDAQ:BLZE).
- companyCoreWeave
AI infrastructure provider entering a multi‑year contract with Backblaze.