Analysts Have Made A Financial Statement On Backblaze, Inc.'s (NASDAQ:BLZE) Second-Quarter Report
The investors in Backblaze, Inc.'s (NASDAQ:BLZE) will be rubbing their hands together with glee today, after the share price leapt 25% to US$7.77 in the week following its second-quarter results. Sales hit US$21m in line with forecasts, although the company reported a statutory loss per share of US$0.37 that was somewhat smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Backblaze
Following the latest results, Backblaze's six analysts are now forecasting revenues of US$84.3m in 2022. This would be a decent 11% improvement in sales compared to the last 12 months. Losses are forecast to balloon 29% to US$1.62 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$83.9m and losses of US$1.66 per share in 2022. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
There's been no major changes to the consensus price target of US$14.40, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Backblaze, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$11.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Backblaze shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Backblaze'shistorical trends, as the 23% annualised revenue growth to the end of 2022 is roughly in line with the 27% annual revenue growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Backblaze is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$14.40, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Backblaze analysts - going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Backblaze that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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