Backblaze secures $20 million credit facility with Citizens Bank

SAN MATEO, Calif. - Backblaze, Inc. (NASDAQ: BLZE), a company specializing in cloud storage solutions with a market capitalization of $319 million and impressive revenue growth of 22% over the last twelve months, has announced the closing of a $20 million senior secured revolving credit facility with Citizens Bank. This financial move, completed as of March 31, 2025, aims to enhance the company’s liquidity and support its strategic growth initiatives. According to InvestingPro analysis, the company maintains a moderate debt level with a debt-to-equity ratio of 0.62.

The new credit line provides Backblaze with additional financial flexibility, complementing its strong liquidity profile, which includes over $50 million in cash and marketable securities. The terms of the credit facility offer a borrowing capacity at an interest rate based on an adjusted Secured Overnight Financing Rate (SOFR) plus a margin of 3.25%, or an alternate base rate plus a margin of 2.25%. The initial term of the loan is two years, with a potential one-year extension available. InvestingPro data shows the company maintains a healthy current ratio of 1.09 and boasts a robust gross profit margin of 55.4%, though it’s currently not profitable on a trailing twelve-month basis.

Marc Suidan, CFO of Backblaze, expressed enthusiasm about the partnership with Citizens, highlighting the credit facility’s role in bolstering the company’s financial position at a competitive cost of capital. This development follows a $37.5 million oversubscribed equity offering in November 2024, further solidifying Backblaze’s financial foundation.

The credit agreement includes standard provisions such as representations, warranties, and covenants, including financial covenants, as well as customary closing and administrative fees.

Backblaze, headquartered in San Mateo, CA, offers cloud object storage solutions that support a variety of uses, including application development, media management, AI workflows, and ransomware protection. Founded in 2007, the company serves over 500,000 customers across 175 countries.

Citizens Financial Group, Inc., the parent company of Citizens Bank, is a longstanding financial institution with $220.1 billion in assets as of March 31, 2025. It provides a range of banking services to individuals, small businesses, and corporations in the United States.

This financial agreement is based on a press release statement and represents a strategic step for Backblaze in its ongoing growth and expansion efforts in the cloud storage market. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with additional ProTips and detailed metrics, including exclusive Fair Value assessments and financial health scores. The Pro Research Report available on InvestingPro provides an in-depth analysis of Backblaze’s market position and growth potential among 1,400+ top US stocks.

In other recent news, Backblaze Inc. reported its first-quarter 2025 earnings, showing a solid performance with revenue reaching $34.6 million, surpassing the anticipated $34.22 million. The company also reported an adjusted earnings per share of -$0.03, better than the forecasted -$0.06. This represents a 15% year-over-year revenue growth, largely driven by strong performance in its B2 segment, which saw a 23% revenue acceleration. Additionally, Backblaze’s AI segment emerged as the fastest-growing area, with a 66% increase in the customer base.

Backblaze has also announced a private preview of its new enterprise web console designed to enhance cloud storage security. The console includes features like role-based access controls and mandatory multi-factor authentication, aiming to simplify the management of B2 Cloud Storage for enterprises. In other developments, Backblaze has raised its full-year revenue guidance to a range of $144-$146 million, reflecting confidence in sustained growth. The company also increased its adjusted EBITDA margin guidance to 17-19%, with plans to achieve positive free cash flow by Q4 2025.

Furthermore, Backblaze’s strategic focus on emerging technology markets is highlighted by its AI initiatives, with the AI segment’s rapid expansion underscoring this focus. The company has also launched a new offering called B2 Cloud Storage OverDrive, aimed at providing high-performance storage solutions for large datasets and high-performance throughput. Analyst feedback from firms such as Needham and Craig Hallum Capital Group has been positive, with no recent upgrades or downgrades noted. These developments reflect Backblaze’s ongoing efforts to provide modern and secure cloud storage alternatives, positioning the company for continued growth in the competitive cloud storage market.

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