![]() With revenues trending around $70 million a year, a resulting 5 times sales multiple looked reasonable, but losses were increasing and growth was slowing down, with formidable competition hurting the business. ![]() Revenues rose another 24% in the first half of 2021 with sales reported at $31.5 million, but operating losses increased to $6.5 million. Revenues rose by 32% to $54 million in 2020 as the company saw margins deleverage, with operating losses reported at $4 million. The resulting $370 million operating asset valuation was applied to a business which generated $41 million in sales in 2019, on which a minimal operating profit of $1 million was reported, but at least it was a profit. The company went public in 2021, when the 29 million outstanding shares were valued at $16, granting the company an $470 million valuation, which furthermore included a hundred million net cash position. Secure And Safe Cloud Storageīackblaze offers a cloud-based software platform in which customers (in the case of Backblaze mostly being consumers and SMB customers) can store data in a secure and safe manner, with data being easily retrievable by these same customers. ![]() With net cash holdings depleting rapidly, and losses being substantial, I see no easy solutions here and likely financial struggles down the road, making the situation rather uninvestable from my point of view. While the company has seen solid topline sales growth in the meantime, no margin gains have been delivered upon, in fact the contrary has happened. With proof of execution sitting with the management team, management had quite something to prove here.įast-forwarding nearly a year in time, we have seen shares trade quite stagnant. ( NASDAQ: BLZE ) as it saw continued margin struggles, even as the company started to focus more on margins. In November, I concluded that I was not blazed away by shares of Backblaze, Inc.
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