Backblaze, Inc. (NASDAQ:BLZE), a company specializing in cloud storage and computer backup services, reported a recent stock sale by its Chief Financial Officer, Patchel Francis P. According to the latest filings, the CFO sold shares of the company's Class A Common Stock over a span of three days.
The transactions, which took place from August 21 to August 23, involved the sale of 10,871 shares at weighted average prices that varied each day. On the first day, 3,370 shares were sold at an average price of $6.34. The following day saw 3,261 shares sold at an average of $6.22, and on the final day, 4,240 shares were disposed of at an average price of $6.45. The sales resulted in a total of approximately $68,997 in proceeds for the CFO.
These sales were not discretionary on the part of Patchel Francis P. They were conducted to cover tax withholding obligations related to the vesting of restricted stock units, as mandated by Backblaze's equity incentive plans. The company's policy requires such tax obligations to be satisfied through a "sell to cover" transaction.
Investors may take note of the price ranges for these sales, which were between $6.22 and $6.45. The detailed price ranges for the shares sold were from $6.245 to $6.445 on August 21, from $6.145 to $6.35 on August 22, and from $6.22 to $6.64 on August 23.
Backblaze's CFO now holds 148,245 shares following these transactions, as indicated in the SEC filing. The shares are held directly, affirming a personal stake in the company's performance.
The transactions were reported in compliance with SEC regulations, and the company has offered to provide full information regarding the number of shares sold at each separate price within the stated ranges upon request.
In other recent news, Backblaze has exceeded Q2 expectations with a significant 27% increase in revenue, marking a strong growth trajectory for the company. The cloud storage provider's B2 Cloud Storage segment saw a substantial 43% rise in revenue. The company also announced key executive appointments, including Jason Wakeam as Chief Revenue Officer and Marc Suidan as CFO.
Backblaze's large customer accounts have notably increased, with a net revenue retention rate of 114%. The company's adjusted EBITDA profit marked its third consecutive quarter of profitability. Backblaze has raised its annual revenue guidance to between $126.5 million and $128.5 million, indicating confidence in its continued growth, particularly in its B2 Cloud Storage business, which is expected to grow by 40%.
In terms of future outlook, Backblaze expects Q3 revenue to be between $32.4 million and $32.8 million. The company aims to reach total cash usage breakeven by mid-2025 and become free cash flow positive shortly thereafter. These recent developments suggest a positive trajectory for Backblaze, as it continues to navigate the competitive cloud storage market with strategic initiatives and financial discipline.
InvestingPro Insights
Backblaze, Inc. (NASDAQ:BLZE) has been navigating a challenging financial landscape, as reflected in several key metrics and analyst observations. According to InvestingPro data, Backblaze currently holds a market capitalization of $264.82 million. Despite a positive revenue growth of 24.02% over the last twelve months as of Q2 2024, concerns arise from the company's profitability issues. The P/E ratio stands at -4.07, with an adjusted P/E ratio for the same period at -5.71, indicating that the company is not generating profits relative to its share price.
The company's Price/Book ratio, as of Q2 2024, is 6.27, which suggests that investors are paying a premium for what is perceived as a company with valuable assets, despite its lack of profitability during the last twelve months. This aligns with one of the InvestingPro Tips, which highlights that Backblaze is trading at a high Price/Book multiple. Furthermore, an InvestingPro Tip points out that the company's stock has taken a significant hit over the last six months, with a price total return of -33.77% during that period.
Investors should also be aware of the company's liquidity situation. A critical InvestingPro Tip indicates that Backblaze's short-term obligations exceed its liquid assets, which could raise concerns about the company's ability to meet its short-term liabilities. Moreover, analysts contributing to InvestingPro have revised their earnings upwards for the upcoming period, suggesting a potential shift in the company's financial trajectory.
For those looking to delve deeper into Backblaze's financial health and future prospects, there are additional InvestingPro Tips available on the platform. In total, there are 8 tips listed on InvestingPro (https://www.investing.com/pro/BLZE), providing more nuanced insights into the company's operations, debt levels, and stock performance.
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