Backblaze went public in November 2021 and raised $100 million. Morpheus kept in mind that ever since, “Backblaze has actually reported losses every quarter, its exceptional share count has actually grown by 80 percent, and its share cost has actually decreased by 71 percent.”

Following Morpheus’ report, Investing reported on Thursday that Backblaze shares fell 8.3 percent.

Beyond the monetary ramifications for investors, Morpheus’ report has actually stimulated some issue for the mainly small companies and people counting on Backblaze for information backup. Today, for instance, How-To Geek reported that “Backblaze backups may be in problem,” in referral to Morpheus’ report. The publication stated that if Morpheus’ reporting was precise, Backblaze does not seem heading towards success. In its Q4 2024 incomes report [PDF]Backblaze reported a bottom line of $48.5 million. In 2023, it reported a bottom line of $59.7 million.

“If Backblaze all of a sudden closes down, consumers may lose access to existing backups,” How-To Geek stated.

Backblaze reacts

Ars Technica connected to Backblaze about its reaction to issues about the business’s financials leading to lost backups. Patrick Thomas, Backblaze’s VP of marketing, called Morpheus’ claims “unwarranted.” He included:

The report is incorrect and deceptive, based mainly on lawsuits of the exact same nature, and a clear effort by brief sellers to control our stock cost for monetary gain.

Thomas likewise declared that “independent, third-party reviews” have actually currently discovered that there has actually been “no misdeed or problems” with Backblaze’s public monetary outcomes.

“Our storage cloud continues to provide dependable, high-performance services that Backblaze consumers depend on, and we stay completely concentrated on driving development and producing long-lasting worth for our clients, workers, and financiers,” Thomas stated.

Backblaze will reveal its Q1 2025 results on May 7. No matter what lies ahead for the business’s financial resources and lawsuits, dedication to the 3-2-1 backup guideline stays sensible.