Backblaze responds to claims of “sham accounting,” customer backups at risk
Backblaze responds to claims of “sham accounting,” customer backups at risk
arstechnica.com
Backblaze responds to claims of “sham accounting,” customer backups at risk
7 comments
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Honestly, I know a lot of companies that would be absolutely fucked if Backblaze went under in a dramatic fashion.
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Even if the report is inaccurate, Backblaze has never been profitable, which isn't great. Investors want to see a return on their investment. They'll keep pushing Backblaze to become profitable, likely eventually resulting in enshittification of some sort. We'll see if things have changed when they publish their Q1 2025 results on May 7.
One of the harsh realities in Silicon Valley is there's a lot of companies that produce great products but end up failing after going public, either because they couldn't find a good product market fit, or because they couldn't figure out how to make their idea profitable.
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I'd wager that a lot of these could be profitable, just not profitable enough. Investors don't want solid slow and steady business. They want billion dollar unicorns.
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They also often want growth beyond what the original market niche supports.
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I'm talking specifically about companies that post a loss every quarter, like Backblaze does. Backblaze's net profit in Q4 2024 was -$14.38 million. Their net profit is going up year over year, but it's still negative.
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7 comments