SAN MATEO, CA—Backblaze, Inc. (NASDAQ:BLZE), a $357 million market cap company specializing in cloud storage and computer backup services, has terminated its revolving credit agreement with City National Bank, according to a recent 8-K filing with the Securities and Exchange Commission.
According to InvestingPro data, the company operates with a moderate debt level and maintains a current ratio of 0.54. The agreement, originally established on October 21, 2021, was concluded on Monday, with no outstanding amounts at the time of termination.
The decision to terminate the credit line follows Backblaze's successful completion of a follow-on public offering in November 2024, through which the company secured approximately $37.5 million in net proceeds, after underwriter discounts and commissions but before other fees and expenses.
The company has shown strong revenue growth of 27.4% over the last twelve months, reaching $122.6 million, though InvestingPro analysis indicates it remains unprofitable during this period. The credit facility was fully collateralized by cash held by the company, and the proceeds from the offering provided the liquidity necessary for Backblaze to repay the credit in full.
The termination of this financial arrangement signifies a shift in the company's capital structure and liquidity strategy. Backblaze, listed on the Nasdaq Stock Market under the ticker symbol NASDAQ:BLZE, has not disclosed any immediate plans for the use of the newly raised capital. However, the additional funds may offer the company increased flexibility for future investments or operational needs.
This move comes as Backblaze continues to navigate the competitive landscape of the prepackaged software industry, where it operates under the SIC code 7372. The company's headquarters are located at 201 Baldwin Avenue, San Mateo, California, and it is incorporated in the state of Delaware.
For deeper insights into Backblaze's financial health and strategic positioning, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports.
In other recent news, Backblaze, Inc. has reported impressive financial results alongside substantial amendments to its bylaws. The cloud storage and data backup service provider disclosed a robust 29% revenue growth in its third quarter of 2024, reaching $32.6 million. Particularly, the B2 Cloud Storage segment saw a 39% revenue increase, totaling $16.2 million, with a record adjusted EBITDA margin of 12%.
In terms of future projections, Backblaze anticipates its fourth-quarter revenue to fall between $33.5 million and $33.9 million, with an annual revenue ranging from $127 million to $128 million. Analyst consensus from InvestingPro indicates a Strong Buy rating for the company, despite recent downward revisions of earnings expectations.
In addition to financial developments, Backblaze has also implemented amendments to its bylaws. These changes include administrative updates to streamline operations, adjustments for compliance with Rule 14a-19 under the Exchange Act, and modifications to centralize decision-making.
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