EL7.AI
Stocks•5 June 2026•
1 min read

Backblaze Pivots to AI as B2 Cloud Storage Revenue Surges

Key Facts

1B2 Cloud Storage ARR grew 28% YoY, now accounting for 58% of total revenue.
2The company's AI customer base increased by 76%, driving accelerated growth.
3The company raised its adjusted EBITDA margin guidance to a range of 23–25%.

Amid a structural shift in cloud demand, Backblaze is successfully transitioning from a legacy backup provider to a high-growth AI-driven Infrastructure-as-a-Service (IaaS) provider. The company's B2 Cloud Storage ARR grew 28% year-over-year, now accounting for 58% of total revenue. This acceleration is supported by a 76% increase in the AI customer base, leading management to raise its adjusted EBITDA margin guidance to a range of 23–25%.

This strategic pivot aligns with broader industry trends where peers like Snowflake and DigitalOcean are aggressively integrating generative AI capabilities. Per market data, Backblaze's positioning in the neocloud data-lake layer offers a cost-effective alternative to major providers like AWS, attracting a significant surge in AI-related workloads that require high-performance, low-cost storage solutions.

Looking ahead, macro catalysts include Fed Chair Powell's speech on May 31, 2026, and the US ISM Manufacturing PMI on June 1, 2026, both of which could dictate the near-term trajectory for mid-cap technology stocks.