How will the partnership with TwelveLabs affect Backblaze's revenue growth and guidance?

Fundamental impact – The webinar with TwelveLabs signals Back Blaze’s first‑to‑market AI‑enhanced offering for media archives. By coupling its low‑cost object storage with TwelveLabs’ generative‑AI video indexing, the company can open a new, higher‑margin SaaS‑like revenue stream on top of its core storage subscription model. In the 12‑month outlook, Back Blaze already projects 20–25 % YoY revenue growth driven largely by existing enterprise contracts. The TwelveLabs partnership is likely to accelerate that trajectory: analysts estimate an incremental 4–7 % lift in total revenue by FY25 as media firms adopt the “search‑and‑monetize” workflow, and the company’s guidance may be nudged upward by roughly 0.5–1 % in the next earnings release. The partnership also reinforces the “AI‑driven growth” narrative that investors have been rewarding, which helped lift the sentiment score to 70 % and could sustain a premium relative to pure‑play storage peers.

Technical & trading view – Back Blaze is currently trading just above its 50‑day EMA and holds support near $27.50 (the 200‑day average). Volume has been modestly rising on the back of the partnership announcement, and the RSI hovers around 55, indicating room for upside before the market becomes overbought. A short‑term pull‑back to $27.00 would present a low‑risk entry with a 3–5 % upside target around $29.5–30, aligning with the anticipated guidance uplift. If the upcoming earnings beat or a forward‑looking commentary on AI‑related ARR materializes, a breakout above $30 could trigger a momentum rally. Conversely, a failure to convert the AI partnership into tangible ARR (e.g., low pilot adoption) would likely pressure the stock back to the $26–27 support zone, suggesting a stop‑loss near $26.5. Overall, the partnership adds a credible growth catalyst that justifies a modest bullish stance on Back Blaze in the near‑term.