Backblaze went public in November 2021 and raised $100 million. Morpheus famous that since then, “Backblaze has reported losses each quarter, its excellent share rely has grown by 80 %, and its share value has declined by 71 %.”
Following Morpheus’ report, Investing reported on Thursday that Backblaze shares fell 8.3 %.
Past the monetary implications for stockholders, Morpheus’ report has sparked some concern for the primarily small companies and people counting on Backblaze for knowledge backup. Right this moment, for instance, How-To Geek reported that “Backblaze backups is perhaps in hassle,” in reference to Morpheus’ report. The publication stated that if Morpheus’ reporting was correct, Backblaze doesn’t seem like heading towards profitability. In its This autumn 2024 earnings report [PDF], Backblaze reported a internet lack of $48.5 million. In 2023, it reported a internet lack of $59.7 million.
“If Backblaze instantly shuts down, prospects would possibly lose entry to present backups,” How-To Geek stated.
Backblaze responds
Ars Technica reached out to Backblaze about its response to issues concerning the firm’s financials leading to misplaced backups. Patrick Thomas, Backblaze’s VP of selling, referred to as Morpheus’ claims “baseless.” He added:
The report is inaccurate and deceptive, based mostly largely on litigation of the identical nature, and a transparent try by quick sellers to control our inventory value for monetary acquire.
Thomas additionally claimed that “impartial, third-party opinions” have already discovered that there have been “no wrongdoing or points” with Backblaze’s public monetary outcomes.
“Our storage cloud continues to ship dependable, high-performance companies that Backblaze prospects depend on, and we stay totally targeted on driving innovation and creating long-term worth for our prospects, staff, and buyers,” Thomas stated.
Backblaze will announce its Q1 2025 outcomes on Could 7. No matter what lies forward for the corporate’s funds and litigation, dedication to the 3-2-1 backup rule remains prudent.