Backblaze responds to claims of “sham accounting,” customer backups at risk

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.