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BlackBerry Ltd T.BB

Alternate Symbol(s):  BB

BlackBerry Limited is a Canada-based company, which provides intelligent security software and services to enterprises and governments worldwide. The Company leverages artificial intelligence (AI) and machine learning to deliver solutions in the areas of cybersecurity, safety, and data privacy and specializes in the areas of endpoint management, endpoint security, encryption, and embedded systems. It operates in three segments: Cybersecurity, IoT, and Licensing and Other. Cybersecurity consists of BlackBerry UEM and Cylance cybersecurity solutions (collectively, BlackBerry Spark), BlackBerry AtHo, and BlackBerry SecuSUITE. The Company’s endpoint management platform includes BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces solutions. The IoT consists of BlackBerry QNX, BlackBerry Certicom, BlackBerry Radar, BlackBerry IVY and other Internet of things (IoT) applications. Licensing and Other consists of the Company’s intellectual property arrangements and settlement award.


TSX:BB - Post by User

Post by nellybbon Jun 27, 2024 1:45pm
299 Views
Post# 36109296

The ship is beginning to turn

The ship is beginning to turn

The ship is beginning to turn:

  • IoT revenue has proven to be resilient against multiple headwinds. Blackberry has demonstrated that they're able to expand their product mix (e.g. QNX Sound) to capture more revenue per vehicle.
  • Cyber revenue has stabilized. The wild swings, often downwards, that have haunted the business over the years have subsided.
  • Product quality has improved. QNX SDP 8 is now arguably the best embedded software platform on the market. The cyber suite has enjoyed a number of improvements (UX, platform support, among others) that have collectively increased customer retention to near record levels.
  • Costs are down to sustainable levels. finally in line with industry-average R&D spending as percentage of revenue.
  • Executive confidence is here. John G and team have delivered on all of their major commitments for the past couple of quarters. A stark contrast to years prior.

Liftoff analysis and why October might be a critical inflection point:

  • Share price: Even if revenue remains flat in the mid term, the improvements to cost and near-inevitability of positive cash flow would warrant a higher stock price when comparing financial metrics to Blackberry's peers.
  • We've stabilized revenue. But for how long are we going to be flat? Does the existing combination of product mix and market demand warrant a possibility of 10%+ sustained y/y growth for the coming years? We'd all like to see much more than 10% growth, but BB must show that they're capable of not just consolidation and optimization of existing business, but also generation of incremental revenue.
  • I expect Blackberry to show a growth plan in October, aligned with when they will break out business performance below the revenue line. This would be a reasonable time to do so, as they would have (1) further cemented trust in the leadership team through potentially 4 quarters of hitting their milestones. (2) come within striking distance of profitability, and (3) understood realistic growth drivers in their core businesses for FY2026-2027.
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