Recently, a short seller made claims about Backblaze that were factually inaccurate, misleading, and filled with errors.
Short sellers frequently spread false or misleading information to manipulate a company’s stock price for their personal financial gain at the expense of other stockholders. Nevertheless, we want to set the record straight.
Whether you’re a Backblaze customer, investor, or you’re just getting to know us, here’s what you need to know:
The short seller largely rehashed baseless claims made by two disgruntled former employees last year.
- Out of an abundance of caution, and following industry best practices, our Audit Committee hired an independent third party law firm and forensic accounting firm, which confirmed there was no wrongdoing or issues with Backblaze’s public financial results. Since then, we have publicly filed two annual financial statements, which were fully audited and which are available on the SEC EDGAR site.
In an effort to enrich themselves, the short seller questioned the health of Backblaze.
- We have never been stronger. As reported in our last earnings call, we continue to demonstrate financial strength. Our revenue is over $127 million per year and growing. Our balance sheet is strong with over $50 million in cash and short-term investments as of December 31, 2024.
- Wall Street analysts report that the company is strong. For example, a respected analyst who has closely watched Backblaze since the IPO in November 2021, released an analysis of Backblaze after the short seller report was published. TipRanks, summarizing the report, finds the short seller claims to be unsubstantiated.
The short seller tried to push some other false narratives about Backblaze. Here are the facts:
- Your data is safe. We have successfully safeguarded customer data for more than 17 years, and continue to focus on delivering reliable, high-performance cloud solutions for our customers.
- Leading cloud storage provider. We are driving business growth by providing high value to customers. We have a track record of customer success stories that highlight how we help them improve performance, reduce costs, and transition to us from competitors, unlocking efficiencies in the process.
- Continued innovation. We continue to innovate to best serve the needs of our customers. We recently announced B2 Overdrive, a high-performance offering designed to power customers’ massive AI needs, as well as Event Notifications, Live Read, and Scalable Application Keys, amongst others.
If you want to hear more about how we’re doing and what we’re working on, check out our investor relations section.
