1. Backblaze authorized a $10 million share repurchase program until August 2026. 2. Cash for repurchases comes from employee stock option exercises, ensuring cash neutrality. 3. The company aims to become free cash flow positive by Q4 2025. 4. Leadership highlights reducing equity dilution from stock compensation as a priority. 5. Growing B2 Cloud Storage growth enhances financial stability and potential revenue.
Share repurchase programs typically signal confidence and can support stock prices. Similar moves in tech sectors have historically led to price increases, such as Apple's buyback initiatives boosting shareholder value.
The buyback program indicates strategic financial management and investor confidence, likely influencing investor sentiment positively towards BLZE.
The share repurchase program will positively impact stock value over time, particularly as free cash flow becomes positive in 2025, suggesting sustained value creation.
Cash proceeds from option exercises and ESPP purchases will be used to fund this program, thus making it cash neutral
Backblaze, Inc. (NASDAQ:BLZE), the cloud storage innovator providing a modern alternative to traditional cloud providers, today announced that its Board of Directors authorized a share repurchase program to purchase up to $10 million of shares of its common stock through August 1, 2026.
With the company on track to turn Adjusted Free Cash Flow positive in Q4 of 2025, using cash from employee exercised stock options and purchases under the Employee Stock Purchase Plan to buy back common stock in the market will help preserve the cash balance of the company, while reducing equity dilution.
"With our progress solidifying our Balance Sheet, and our acceleration of our B2 Cloud Storage growth, we are now expanding our focus to manage our equity dilution from stock compensation. When looking at our metrics, we are excited about the pace of improvement across key pillars to transform our financial model, including liquidity, free cash flows and revenue growth acceleration," said Marc Suidan, Chief Financial Officer.
The program will be funded through the cash proceeds from stock options exercised by employees and employee purchases under the Employee Stock Purchase Plan, which is intended to be cash neutral to the company. The shares may be repurchased from time to time in open market transactions, privately negotiated transactions, or by other means, including automatic purchase plans pursuant to Rule 10b5-1, in accordance with applicable securities laws. The timing, number of shares repurchased, and prices paid for the shares under this program will be generally determined by management based on its evaluation of general business and market conditions as well as corporate and regulatory limitations, prevailing stock prices, and other considerations. The Share Repurchase Program may be suspended, modified, or discontinued at any time and does not obligate the Company to acquire any particular amount of common stock.
About Backblaze
Backblaze is the cloud storage innovator delivering a modern alternative to traditional cloud providers. We offer high-performance, secure cloud object storage that customers use to develop applications, manage media, secure backups, build AI workflows, protect from ransomware, and more. Backblaze helps businesses break free from the walled gardens that traditional providers lock customers into, enabling them to use their data in open cloud workflows with the providers they prefer at a fraction of the cost. Headquartered in San Mateo, CA, Backblaze (NASDAQ:BLZE) was founded in 2007 and serves over 500,000 customers in 175 countries around the world. For more information, please go to www.backblaze.com
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