Backblaze, Inc. (NASDAQ: BLZE)

Backblaze is a cloud infrastructure provider that operates a high-performance, web-scale cloud storage platform, specializing in data-intensive workloads across the modern artificial intelligence (“AI”) era. The company’s core objective is to address complex data storage requirements by mitigating vendor lock-in, operational complexity, and escalating costs for its users. Backblaze achieves this by deploying a purpose-built software infrastructure that runs on commodity hardware, enabling reliable cloud services globally. The platform is designed to simplify how customers store, use, and protect their data, allowing them to focus on core business operations. Services powered by the platform support critical functions ranging from AI workflow development and cyber-resilience planning to streamlining demanding media workflows.

The company generates substantial recurring revenue by utilizing a land-and-expand model, where increased usage and adoption of new features among existing clients drive revenue growth. Revenue is derived from the volume of data stored, managed, and backed up across its cloud services. The company has demonstrated consistent growth, with B2 Cloud Storage revenue increasing by 26% and Computer Backup cloud service revenue growing by 3% for the year ended December 31, 2025, compared to the prior year.

The company operates through two primary cloud services segments: B2 Cloud Storage and Computer Backup.

• B2 Cloud Storage: This segment provides access to the core platform, delivering high-performance, secure, and reliable object storage designed for massive scale. It supports a vast range of applications, allowing users to store and protect data using industry-standard APIs, web interfaces, or various third-party integrations. Key offerings include B2 Overdrive, which provides throughput up to 1Tbps and unlimited free egress, enabling cost-effective execution of data-intensive machine learning and AI workloads. B2 Cloud Storage also provides robust capabilities for public, hybrid, and multi-cloud data storage, simplifying data orchestration across diverse environments.

• Computer Backup: This service offers a continuous and automated solution for backing up individual devices, such as laptops, desktops, and external hard drives, making it suitable for both residential and corporate fleets. It functions on a subscription-based Software-as-a-Service (“SaaS”) model, allowing customers to back up an unlimited number of files without restrictive size or speed limitations. The service includes a lightweight local agent that unobtrusively searches for and sends new or changed data to the Backblaze Storage Cloud for secure, centralized storage and eventual restoration.

Backblaze establishes its industry position by competing primarily on cost efficiency and operational performance compared to traditional hyperscale cloud providers. The company’s key competitive advantage lies in its proprietary, web-scale software architecture, which manages global physical infrastructure and optimizes efficiency for superior price-to-performance. This model enables predictable, simplified pricing while maintaining enterprise-grade reliability, making it highly attractive to AI and ML developers who require vast, scalable data foundations. Furthermore, its open platform and commitment to multi-cloud interoperability distinguish it in the complex cloud market.

The company serves an exceptionally broad and diversified customer base, ranging from individual developers and content creators to large multinational enterprises and government agencies. The customer base spans industries including media, academic research, and gaming, relying on the platform for critical data management needs. As of December 31, 2025, Backblaze had secured over 500,000 customers across more than 175 countries. The customer base is highly diversified, a factor reinforced by the fact that no single customer accounted for more than 10% of the company's total revenue in 2025 or 2024.