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BlackBerry (BB) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
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BlackBerry Limited (BB - Free Report) reported solid first-quarter fiscal 2024 (ended Jun 28) results, with the top line expanding year over year. Also, accretive design wins and partnerships with major players bode well for the Canada-based company.
The company reported adjusted earnings per share (EPS) of 6 cents against the prior-year quarter’s non-GAAP loss of 5 cents. The Zacks Consensus Estimate was pegged at a loss of 5 cents per share.
Quarterly total revenues were $373 million compared with prior-quarter revenues of $168 million. The company beat the Zacks Consensus Estimate of $159.4 million.
BlackBerry Limited Price, Consensus and EPS Surprise
Revenues from the Cybersecurity business totaled $93 million, down 17.7% year over year. The company’s Cybersecurity business was affected by weakness in the macro environment. Revenues were impacted primarily due to elongated sale cycles and additional deal reviews and approvals compared to the previous quarter.
Revenues from the Internet of Things business (IoT) totaled $45 million, down 11.8% year over year. The downtick was caused due to temporary delays as several customers reviewed their development plans to capitalize on the software-defined vehicle trend.
Licensing and Other contributed $235 million, up from $4 million a year ago. The uptick was caused due to $218 million relating to the sale of most of its non-core patents and patent applications to Key Patent Innovations Limited. Software and Services revenues declined 15.9% year over year to $138 million.
The company’s QNX platform secured seven new design wins in Auto and seven in the General Embedded Market.
BB announced a new integration between its CylanceGUARD Managed Detection and Response and Critical Event Management system, which is powered by BlackBerry AtHoc.
In addition, BlackBerry QNX software is now integrated into more than 235 million vehicles across the globe, per a report from TechInsights. This represents year-over-year growth of 20 million vehicle integrations.
Other Details
Gross profit increased 72.1% from the year-ago quarter to $179 million. Gross margin declined to 48% from 61.9%. However, when excluding the impact of the patent sale, the non-GAAP gross margin increased 22%, year over year.
Total non-GAAP operating expenses were $145 million. Adjusted operating income was $35 million against the adjusted operating loss of $27 million a year ago.
Adjusted EBITDA income came in at $41 million against the adjusted EBITDA loss of $21 million reported in the year-ago quarter.
Cash Flow & Liquidity
For the year that ended Jun 28, 2023, BlackBerry generated $99 million of net cash in operating activities compared with $42 million used in the prior-year period.
As of Jun 28, 2023, BlackBerry had $358 million in cash and cash equivalents.
Outlook
The company has reiterated its long-term financial targets. Management expects total revenues in the range of $665-$700 million for fiscal 2024.
For IoT business (excluding IVY), revenues are projected in the range of $240-$250 million for fiscal 2024. For Cybersecurity business, revenues are estimated in the range of $425-$450 for fiscal 2024.
The Zacks Consensus Estimate for Perion Network’s 2023 EPS has increased 5.6% in the past 60 days to $2.84. The company’s long-term earnings growth rate is 25%.
Perion Network’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.3%. Shares of PERI have risen 76.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 49.3% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 17.8% in the past year.
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BlackBerry (BB) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
BlackBerry Limited (BB - Free Report) reported solid first-quarter fiscal 2024 (ended Jun 28) results, with the top line expanding year over year. Also, accretive design wins and partnerships with major players bode well for the Canada-based company.
The company reported adjusted earnings per share (EPS) of 6 cents against the prior-year quarter’s non-GAAP loss of 5 cents. The Zacks Consensus Estimate was pegged at a loss of 5 cents per share.
Quarterly total revenues were $373 million compared with prior-quarter revenues of $168 million. The company beat the Zacks Consensus Estimate of $159.4 million.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
Quarter in Details
Revenues from the Cybersecurity business totaled $93 million, down 17.7% year over year. The company’s Cybersecurity business was affected by weakness in the macro environment. Revenues were impacted primarily due to elongated sale cycles and additional deal reviews and approvals compared to the previous quarter.
Revenues from the Internet of Things business (IoT) totaled $45 million, down 11.8% year over year. The downtick was caused due to temporary delays as several customers reviewed their development plans to capitalize on the software-defined vehicle trend.
Licensing and Other contributed $235 million, up from $4 million a year ago. The uptick was caused due to $218 million relating to the sale of most of its non-core patents and patent applications to Key Patent Innovations Limited. Software and Services revenues declined 15.9% year over year to $138 million.
The company’s QNX platform secured seven new design wins in Auto and seven in the General Embedded Market.
BB announced a new integration between its CylanceGUARD Managed Detection and Response and Critical Event Management system, which is powered by BlackBerry AtHoc.
In addition, BlackBerry QNX software is now integrated into more than 235 million vehicles across the globe, per a report from TechInsights. This represents year-over-year growth of 20 million vehicle integrations.
Other Details
Gross profit increased 72.1% from the year-ago quarter to $179 million. Gross margin declined to 48% from 61.9%. However, when excluding the impact of the patent sale, the non-GAAP gross margin increased 22%, year over year.
Total non-GAAP operating expenses were $145 million. Adjusted operating income was $35 million against the adjusted operating loss of $27 million a year ago.
Adjusted EBITDA income came in at $41 million against the adjusted EBITDA loss of $21 million reported in the year-ago quarter.
Cash Flow & Liquidity
For the year that ended Jun 28, 2023, BlackBerry generated $99 million of net cash in operating activities compared with $42 million used in the prior-year period.
As of Jun 28, 2023, BlackBerry had $358 million in cash and cash equivalents.
Outlook
The company has reiterated its long-term financial targets. Management expects total revenues in the range of $665-$700 million for fiscal 2024.
For IoT business (excluding IVY), revenues are projected in the range of $240-$250 million for fiscal 2024. For Cybersecurity business, revenues are estimated in the range of $425-$450 for fiscal 2024.
Zacks Rank & Stocks to Consider
BlackBerry currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Perion Network (PERI - Free Report) , InterDigital (IDCC - Free Report) and Blackbaud (BLKB - Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Perion Network’s 2023 EPS has increased 5.6% in the past 60 days to $2.84. The company’s long-term earnings growth rate is 25%.
Perion Network’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.3%. Shares of PERI have risen 76.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 49.3% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 17.8% in the past year.