- BlackBerry (TSX:BB) reported results for fiscal Q2 2024 marked by a US$0.07 loss per share on a GAAP basis
- The company expects IoT and cybersecurity to drive revenue through 2023, though profitability has remained elusive over the past six quarters
- BlackBerry provides intelligent security software and services to businesses and governments worldwide
- BlackBerry stock (TSX:BB) is down by approximately 50 per cent over the past five years
BlackBerry (TSX:BB) reported results for fiscal Q2 2024 marked by a US$0.07 loss per share on a GAAP basis.
Q2 financial highlights
- Revenue of US$132 million
- Non-GAAP gross margin of 65 per cent and GAAP gross margin of 64 per cent
- IoT revenue of US$49 million, a 9 per cent sequential increase, with IoT gross margin of 84 per cent, increasing by 4 per cent sequentially
- Cybersecurity revenue of US$79 million with gross margin of 54 per cent
- Cybersecurity ARR of US$279 million
- Cybersecurity billings of US$74 million
- Licensing and Other revenue of US$4 million
- Non-GAAP basic loss per share of US$0.04
- Non-GAAP operating loss of US$28 million and GAAP operating loss of US$47 million
- Total cash, cash equivalents, short-term and long-term investments decreased by US$59 million to US$519 million
- Click here to view BlackBerry’s full fiscal Q2 2024 financial results
Q2 operational highlights and strategic announcements
The company has produced negative net income in each of the past six quarters, and has been nominally profitable in only two out of the past five fiscal years, as it continues to struggle in its transition from its legendary smartphones to a profitable provider of cybersecurity, IoT and data privacy.
“Our IoT business continues to win new designs and add royalty backlog at a strong rate, illustrating how well-positioned this business is in the medium to long term. We expect a strong finish for IoT revenue this fiscal year, with the fourth quarter forecasted to be the strongest ever,” John Chen, BlackBerry’s executive chair and CEO, said in a statement.
“Further, we are excited by the response from beta customers to our next-generation QNX Software Development Platform 8.0, and its potential to enable embedded Generative AI applications. We also expect a strong second half for revenue in our cyber business, with a pipeline of deals that includes large, mainly perpetual government opportunities that can deliver meaningful in-year revenue. Therefore, we are reiterating our full-year cyber revenue outlook,” Chen added.
Current and potential investors can learn about BlackBerry’s full-company outlook during a conference call at 5:30 pm ET Friday.
BlackBerry provides intelligent security software and services to businesses and governments worldwide. The company secures more than 500 million endpoints, including more than 235 million vehicles.
BlackBerry stock (TSX:BB) last traded at $6.46 per share. The stock is down by 2 per cent over the past year and down by approximately 50 per cent over the past five years.
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