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Cloud object storage company Backblaze files to go public

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DeMarcus Cousins #15 from the LA Clippers speaks to Roy Rogers, Assistant Coach of the Clippers, before Game 6 of 2021 NBA Playoffs at STAPLES Center, Los Angeles, on June 30, 2021.

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Backblaze filed for public listing on Nasdaq Monday. The company backs up files on computers of people and offers cloud storage that can be used by companies to store and retrieve data. It plans to trade its shares under the symbol “BLZE.”

While it’s not a big cloud company Backblaze is growing. More organizations are willing to use data center equipment which they do not own. This partly explains why Backblaze can be paid based upon how often they use the product. Backblaze will join the public market if it successfully completes its initial public offerings. DigitalOceanIn providing cloud services to small businesses

Backblaze’s prospectus stated that the market was looking for alternative public cloud vendors to “traditional, diversified” ones. These public cloud vendors are increasingly focusing on large enterprises. This has led to significant complexity and pricing issues that leave behind middle-market companies.

Backblaze was established in 2007 and launched online backup services in 2008. Apple’sMacOS MicrosoftWindows and that is how the company was able to grow. It entered the object storage market, competing against the biggest companies in the world, including Microsoft. Amazon GoogleMicrosoft and Microsoft both offer cloud computing services to schools, government agencies, companies and businesses.

Backblaze, which is located in San Mateo California, hasn’t won over Amazon Web Services’ biggest cloud storage customers. Backblaze’s cloud storage service B2 has been adopted by some smaller organizations like American Public Television and California’s Kings County.

The Backblaze websiteAccording to Amazon S3, data storage with the B2 storage option costs 76% less than AWS’s S3 service. Data download fees are also 80% lower at 80%. Amazon S3 has a low gross margin of 50%, according to one analyst’s estimateBackblaze has a gross margin overall of 50%, whereas.

Backblaze gets less than one-third its revenue through B2. However, B2’s revenue increased 60% over the previous year while online backup grew by 12% in that same time period. In addition, customers who have been with B2 for a long time are more likely to stick with it than backup. Additionally, the average annual revenue per user of B2 is also higher.

September CloudflareThis content distribution network allows companies to instantly serve up content from different data centers across the globe with ease. saidThe company would offer its own storage service, R2.

Backblaze recorded a $2.4million loss on $16.2million in revenue during the second quarter. Although revenue increased 24% over the previous quarter, it was still a loss of $2.4 million compared to the $1.9million. Backblaze was able to issue $10 million worth of convertible notes during a private round of funding in August. It had previously raised just $3 million outside investor backing before that. Only 228 workers were employed by the company at the end the second quarter.

The lead underwriters for the initial public offer are Oppenheimer and Co. William Blair, Raymond James and William Blair.

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