SAN MATEO, Calif. - Backblaze, Inc. (NASDAQ: BLZE), a company specializing in cloud storage solutions, has announced the appointment of Jason Wakeam as its first Chief Revenue Officer. Wakeam, who brings nearly 30 years of experience in global leadership, joins Backblaze at a time when the company is looking to expand its market share and explore new revenue opportunities.
Wakeam's career includes key positions at SnapLogic, where he was Vice President of Global Sales, as well as leadership roles at Cloudera (NYSE:CLDR), Microsoft (NASDAQ:MSFT), and Hewlett-Packard. His track record of fostering growth and innovation in technology companies is expected to be a significant asset to Backblaze as it seeks to scale its business.
In his new role, Wakeam will be responsible for leading the company's sales strategy and driving business growth. He succeeds Nilay Patel, who has shifted to lead the New Markets team with a focus on artificial intelligence.
Gleb Budman, CEO and Chairperson of the Board at Backblaze, expressed confidence in Wakeam's capabilities, citing his impressive history of propelling businesses forward. Wakeam's expertise is anticipated to be pivotal in supporting larger customers as they transition from traditional cloud services to an open cloud ecosystem.
Wakeam shared his enthusiasm for joining Backblaze, highlighting his eagerness to contribute to the company's growth and innovation efforts. His appointment is a part of Backblaze's strategy to enhance its position in the market and to serve an increasing number of mid-market customers.
Backblaze, headquartered in San Mateo, California, prides itself on offering secure and high-performance cloud object storage that enables a wide range of applications, including AI workflows, media management, and data protection. Since its inception in 2007, the company has grown to serve over 500,000 customers across 175 countries.
This news is based on a press release statement from Backblaze, Inc.
In other recent news, Backblaze Inc. has demonstrated robust growth in the first quarter of 2024, with a 28% year-over-year increase in revenue, reaching $30 million. The company's B2 cloud storage revenue grew by 47% to $14.6 million, and computer backup revenue increased by 14% to $15.3 million. Operational efficiencies were highlighted, with an adjusted gross margin improvement to 77% and a positive adjusted EBITDA at $1.9 million.
Oppenheimer maintains an Outperform rating on Backblaze but has lowered the price target to $11 from $13. The firm predicts that Backblaze's second quarter revenue for 2024 will align with the company's guidance of $30.7-31.1 million, a year-over-year increase of approximately 25.7% at the midpoint.
Backblaze's CFO, Frank Patchel, has announced his retirement but will assist with the transition. The company provided Q2 guidance, expecting revenue between $30.7 million and $31.1 million and an adjusted EBITDA margin of 6% to 8%. The full-year 2024 revenue guidance is between $126 million and $128 million, with an adjusted EBITDA margin of 8% to 10%.
Backblaze aims to maintain at least $20 million in cash by the end of 2024 and anticipates generating cash by mid-2025. The company is focusing on innovation, technology, and expansion into the AI market, seeing it as a long-term growth opportunity. Despite a cautious stance on the macroeconomic environment, Backblaze has not observed major shifts in customer behavior. These are the recent developments in the company.
InvestingPro Insights
As Backblaze, Inc. (NASDAQ: BLZE) welcomes Jason Wakeam as its first Chief Revenue Officer, the company's financial health and market performance are essential factors to consider in the context of its expansion goals. With Wakeam's experience and the company's focus on growth, here are some key insights from InvestingPro that may shed light on what lies ahead for Backblaze:
InvestingPro Data shows Backblaze's market capitalization stands at $269.14 million, indicating its size and presence in the market. Despite the company's efforts to innovate and expand, analysts following Backblaze have not projected profitability for this year.
This is reflected in the company's negative P/E ratio of -3.79 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -5.58. Furthermore, the company's revenue growth remains robust, with a 21.93% increase over the last twelve months as of Q1 2024 and a quarterly revenue growth of 28.1% for Q1 2024.
InvestingPro Tips for Backblaze highlight that two analysts have revised their earnings estimates upwards for the upcoming period, suggesting optimism about the company's future performance. Moreover, while Backblaze does not currently pay a dividend, it has demonstrated a strong return over the last month, with a 14.46% increase in its stock price. However, it is important to note that the company operates with a moderate level of debt and its short-term obligations exceed its liquid assets, which could be a point of consideration for potential investors.
For readers interested in a deeper dive into Backblaze's financials and future outlook, there are additional InvestingPro Tips available. By visiting https://www.investing.com/pro/BLZE and using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable insights that could inform investment decisions.
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