The company’s updated guidance follows a third-quarter performance that showed narrowing losses. Backblaze reported a quarterly loss of $2.4 million, or 4 cents a share, an improvement over the $3.8 million loss recorded during the same period last year. On an adjusted basis, the firm delivered earnings of 9 cents per share, significantly higher than the 5 cents projected by FactSet analysts.

Total revenue climbed 26% to $46.7 million, driven largely by the firm's B2 cloud storage division. That segment reported a 47% increase, generating $30.5 million in revenue. Prior to Monday's rally, Backblaze shares had already gained 59% year to date, despite closing the regular session down 2.5% at $7.40.