Backblaze Q1 2026: AI-Driven Storage Surge

Backblazes Q1 2026 earnings showcased a remarkable performance, with revenue surpassing expectations at $38.7 million. B2 Cloud Storage, their primary growth driver, saw a 24% year-over-year increase, contributing to a 28% rise in annual recurring revenue to $158 million. Adjusted EBITDA reached $10 million, reflecting a robust 26% margin. The companys focus on AI as a growth catalyst paid off, with AI customers up 76% year-over-year and over a third of new bookings coming from this sector. Backblaze secured significant AI infrastructure deals, such as a nearly $1 million ARR win with a training data provider in just eleven days. Theyre also integrating into tools like Hugging Face and MLflow to attract developers. Analysts praised the strong start, with net revenue retention at 110% for B2 and a 51% increase in customers with over $50,000 ARR. Backblaze raised full-year revenue guidance to $161.5-$163.5 million and adjusted EBITDA margins to 23-25%. Q2 is projected to bring in $39.8-$40.2 million, with B2 growth accelerating to around 20% year-over-year. Backblazes strategic moves, such as updated pricing and a new Chief Revenue Officer, are driving upmarket momentum. The company is well-positioned to capitalize on the AI boom, leveraging its performance-per-dollar expertise and targeting free cash flow positivity this year. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/db51de98a4ddf2b7