Backblaze went public in November 2021 and raised $100 million. Morpheus famous that since then, “Backblaze has reported losses every quarter, its outstanding share count has grown by 80 percent, and its share price has declined by 71 percent.”
Following Morpheus’ report, Investing reported on Thursday that Backblaze shares fell 8.3 p.c.
Beyond the monetary implications for stockholders, Morpheus’ report has sparked some concern for the primarily small companies and people counting on Backblaze for knowledge backup. Today, for instance, How-To Geek reported that “Backblaze backups might be in trouble,” in reference to Morpheus’ report. The publication stated that if Morpheus’ reporting was correct, Backblaze doesn’t seem to be heading towards profitability. In its This autumn 2024 earnings report [PDF], Backblaze reported a web loss of $48.5 million. In 2023, it reported a web loss of $59.7 million.
“If Backblaze suddenly shuts down, customers might lose access to existing 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 advertising, known 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 brief sellers to manipulate our inventory worth 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 deliver reliable, high-performance services that Backblaze customers rely on, and we remain fully focused on driving innovation and creating long-term value for our customers, employees, and investors,” Thomas stated.
Backblaze will announce its Q1 2025 outcomes on May 7. Regardless of what lies forward for the corporate’s funds and litigation, dedication to the 3-2-1 backup rule stays prudent.