BlackBerry reports FY 2023 results

BlackBerry has released its financial results for the full year 2023, with a revenue of US$656.0m, down 8.6 per cent from the previous year. The company’s net loss for the year amounted to US$734.0m, a sharp decline from the US$12.0m profit recorded in FY 2022, resulting in a loss of US$1.27 per share, down from US$0.021 per share profit in the previous year.

Despite falling short of analyst revenue estimates by 1.1 per cent, BlackBerry’s earnings per share (EPS) exceeded expectations by 1.0 per cent. Looking ahead, the company expects to see an average annual growth rate of 15 per cent in revenue over the next two years, compared to a 15 per cent growth forecast for the software industry in Canada.

In the fourth quarter of FY 2023, the company reported a total revenue of $151 million. IoT revenue amounted to $53 million, cybersecurity revenue was $88 million, and licensing and other revenue was $10 million. Non-GAAP basic loss per share was $0.02, while GAAP basic loss per share was $0.85, primarily due to an $0.82 non-cash goodwill and long-lived asset impairment charge.

During the fiscal year 2023, BlackBerry’s IoT business unit reported a record QNX design win, with royalty backlog reaching $640 million. Despite macro and supply chain challenges for vehicle production, revenue increased by 16 per cent year over year. The cybersecurity business unit experienced delays in closing a number of large government deals, but the team remained focused on executing its strategy, including the launch of new easy-to-use and cost-effective turnkey solutions, Cylance Endpoint and Cylance Edge.

BlackBerry’s total company GAAP gross margin for the fourth quarter was 66 per cent, with a non-GAAP gross margin of 67 per cent. IoT revenue generated a gross margin of 81 per cent, while cybersecurity revenue gross margin was 59 per cent, with an ARR of $298 million. Cybersecurity billings amounted to $107 million, while software and services revenue in total was $141 million. Licensing and other revenue had a gross margin of 60 per cent.

Additionally, BlackBerry announced a new patent sale transaction with Malikie Innovations Limited, a subsidiary of Key Patent Innovations Limited, for up to $900 million. The transaction is not subject to any financing conditions, and KPI has secured all necessary funding from a leading US-based investment firm.

BlackBerry’s shares have increased by 17 per cent from a week ago, and the company remains focused on driving towards both profitable growth and positive cash flow.

The sources for this piece include an article in Yahoo.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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