* Drawbacks: No file sharing between servers, no collaboration feature, no local backup option, no choice for backup of a specific file. These are all drawbacks that need to be taken into consideration. If most customers use some sort of collaborating feature then this company is only targeting a niche market. So this need to be looked into furthe to get a better understanding of what the market is using before choosing between AWS or backblaze. If collaboration is important then this is not a fair comparison.
* Dilution have been steadily going up for about 2 years and in parallel net income been going down. why?
On the drawbacks in the system: While collaboration isn't a feature, I think it's important to remember that BLZE's main customers are SMBs. These guys likely don't have as robust requirements as large companies would want. However, BLZE is trying to go after larger clients and on their earnings call they alluded to continuing to add more features to entice these clients to move to the platform. The product has historically been very feedback-driven, so it's likely that if customers want the feature, Backblaze will deliver.
For dilution: It's definitely a concern, but the company is in a much better place financially than they were a year ago. They have positive EBITDA margins, and they expect to be cash-flow generating in mid-2025. They have also decreased cash burn tremendously, and even accounting for SBC, they only used $4.9 million of cash this quarter vs. $13 million a year ago. Given their current cash reserves, I think the company should be able to deliver without needing to dilute shareholders again before being cash flow positive.
Hey sorry, just getting to this. Looks like the CFO departure wasn't the problem; he's planning to retire, and it doesn't seem like there's a history of that at BLZE, so nothing should be too crazy there. He's also staying behind to help train the new guy.
In terms of what caused the drawdown, it was likely what the market thought was soft guidance for the B2 storage segment specifically. We even had some analysts ask about it on the call. While they didn't quite raise dramatically, the quarter was a very good one and the expected numbers they guided to seem to be in the middle of what analysts were expecting.
For me it seemed like they executed pretty good and the B2 storage grows a lot and will soon dominate the company income over time. I will keep my stocks and pick up some more a bit at a time.
Good article:)
Good stuff
pushback;
* Drawbacks: No file sharing between servers, no collaboration feature, no local backup option, no choice for backup of a specific file. These are all drawbacks that need to be taken into consideration. If most customers use some sort of collaborating feature then this company is only targeting a niche market. So this need to be looked into furthe to get a better understanding of what the market is using before choosing between AWS or backblaze. If collaboration is important then this is not a fair comparison.
* Dilution have been steadily going up for about 2 years and in parallel net income been going down. why?
Thanks for the feedback!
On the drawbacks in the system: While collaboration isn't a feature, I think it's important to remember that BLZE's main customers are SMBs. These guys likely don't have as robust requirements as large companies would want. However, BLZE is trying to go after larger clients and on their earnings call they alluded to continuing to add more features to entice these clients to move to the platform. The product has historically been very feedback-driven, so it's likely that if customers want the feature, Backblaze will deliver.
For dilution: It's definitely a concern, but the company is in a much better place financially than they were a year ago. They have positive EBITDA margins, and they expect to be cash-flow generating in mid-2025. They have also decreased cash burn tremendously, and even accounting for SBC, they only used $4.9 million of cash this quarter vs. $13 million a year ago. Given their current cash reserves, I think the company should be able to deliver without needing to dilute shareholders again before being cash flow positive.
The. 30% down after the results suprised me. Was it the departure of the CFO that caused it?
Hey sorry, just getting to this. Looks like the CFO departure wasn't the problem; he's planning to retire, and it doesn't seem like there's a history of that at BLZE, so nothing should be too crazy there. He's also staying behind to help train the new guy.
In terms of what caused the drawdown, it was likely what the market thought was soft guidance for the B2 storage segment specifically. We even had some analysts ask about it on the call. While they didn't quite raise dramatically, the quarter was a very good one and the expected numbers they guided to seem to be in the middle of what analysts were expecting.
Thanks, for the response:)
For me it seemed like they executed pretty good and the B2 storage grows a lot and will soon dominate the company income over time. I will keep my stocks and pick up some more a bit at a time.