BlackBerry reported on Tuesday third quarter earnings that beat analysts’ forecasts and revenue that fell short of expectations.
“This quarter BlackBerry delivered solid sequential billings and revenue growth for both the IoT and Cybersecurity businesses, beating expectations for the second consecutive quarter. We also beat expectations on earnings, despite the ongoing investment to drive future top line growth,” said John Chen, Executive Chairman & CEO, BlackBerry.
“In IoT our QNX business achieved a quarterly record for design-related revenues, performing stronger than expected despite ongoing industry supply chain headwinds. On the Cybersecurity front we saw further traction for our recent unified endpoint security product launches with additional head-to-head wins against other next-gen players. I am excited about how the current organization is executing to take advantage of the market opportunities.”
Third Quarter Fiscal 2022 Financial Highlights
- Total company revenue for the third quarter of fiscal 2022 was $184 million.
- Total company non-GAAP and GAAP gross margin was 64%.
- IoT revenue for the third quarter of fiscal 2022 was $43 million, with gross margin of 81% and ARR of $91 million.
- Cybersecurity revenue for the third quarter of fiscal 2022 was $128 million, with gross margin of 59% and ARR of $358 million.
- Licensing and Other revenue for the third quarter of fiscal 2022 was $13 million, beating expectations. Gross margin was 54%.
- Non-GAAP operating loss was $24 million. GAAP operating profit was $51 million.
- Non-GAAP breakeven earnings per share (basic and diluted). Basic GAAP profit per share was $0.13 and diluted GAAP loss per share was $0.05.
- Total cash, cash equivalents, short-term and long-term investments were $772 million.
- Total net cash position was $407 million.
- Net cash used by operating activities was $19 million.
Factor Affecting the Company
BlackBerry partnered with Deloitte to help original equipment manufacturers and those building mission-critical applications secure their software supply chains. Per the deal, Deloitte will use BlackBerry’s software composition analysis tool, BlackBerry Jarvis, to provide Open-source Software, Common Vulnerabilities and Exposures, and Software Bill of Materials analysis for its clients across the medical, automotive and aerospace industries.
During the quarter, BlackBerry enhanced the integration of BlackBerry Unified Endpoint Manager (UEM). Microsoft 365 so that enterprises can benefit from BlackBerry’s leadership in security while using Microsoft’s products. BlackBerry UEM enables organizations and end users to be productive from anywhere securely.
BlackBerry QNX is the market leader for safety-certified embedded software in automotive. The technology is in production programs with 45 original equipment manufacturers, and the software is embedded in more than 195 million vehicles globally. Such developments are likely to have had a positive impact on BlackBerry’s top line in the quarter.
BlackBerry was selected by Mahindra & Mahindra (“M&M”), a leading automotive company in India, to power a Cockpit Domain Controller. The platform will power M&M’s new XUV700 SUV, which will provide a more intuitive and intelligent in-car driving experience to consumers of India. This has been a significant automotive market expansion in India for BlackBerry.