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Feb 29, 2024

BlackBerry Q4 2024 Earnings Report

BlackBerry reported a solid finish to the fiscal year, with year-over-year revenue growth in both IoT and Cybersecurity divisions, and sequential improvements in operating cash usage.

Key Takeaways

BlackBerry's IoT division achieved a record revenue quarter, and the Cybersecurity division stabilized ARR with sequential growth. The company is progressing towards profitability, with operating cash usage more than halved sequentially.

IoT division reported a record revenue quarter and QNX royalty backlog of $815 million.

Cybersecurity division stabilized ARR, with sequential growth and DBNRR improvement.

Operating cash usage significantly improved sequentially, with expectations to be cashflow and adjusted EBITDA positive for FY25.

Non-GAAP earnings per share beat expectations.

Total Revenue
$173M
Previous year: $151M
+14.6%
EPS
$0.03
Previous year: -$0.02
-250.0%
GAAP Gross Margin
79.9%
Non-GAAP Gross Margin
80.4%
Gross Profit
$129M
Previous year: $100M
+29.0%
Cash and Equivalents
$175M
Previous year: $295M
-40.7%
Free Cash Flow
-$17M
Previous year: -$12M
+41.7%
Total Assets
$1.4B
Previous year: $1.68B
-16.9%

BlackBerry

BlackBerry

BlackBerry Revenue by Segment

Forward Guidance

BlackBerry is providing the following guidance for the first quarter (ending May 31, 2024) and the full fiscal year 2025 (ending February 28, 2025).

Positive Outlook

  • Total BlackBerry revenue: $130 - $138 million
  • IoT revenue: $48 - $52 million
  • Cyber revenue: $78 - $82 million
  • Licensing & Other revenue: Approximately $4 million
  • Adjusted EBITDA: ($15) - ($25) million

Challenges Ahead

  • Total BlackBerry revenue: $586 - $616 million
  • IoT revenue: $220 - $235 million
  • Cyber revenue: $350 - $365 million
  • Licensing & Other revenue: Approximately $16 million
  • Non-GAAP basic EPS: ($0.03) - ($0.07)

Revenue & Expenses

Visualization of income flow from segment revenue to net income