HomeMarket NewsSmall CapsThe Resurgence of BlackBerry: A Financial Analysis

The Resurgence of BlackBerry: A Financial Analysis

Actionable Trade Ideas

always free

BB BlackBerry 1

BlackBerry LimitedΒ BB shares have surged in premarket trading following the release of its fourth-quarter FY24 financial results.

The company reported revenue of $173 million, surpassing last year’s $151 million and also beating the consensus estimate of $154.8 million.

Notably, IoT revenue hit a new quarterly record of $66 million, marking a 25% year-over-year increase, while Cybersecurity revenue grew by 5% year-over-year to $92 million.

Adjusted gross margin saw a significant improvement, expanding to 75% from 67% compared to the previous year. IoT gross margin held steady at 85% year-over-year, and Cybersecurity ARR rose by 3% quarter-over-quarter to $280 million.

The company’s adjusted EBITDA also showed impressive growth, standing at $21 million, a stark improvement from last year’s $(12) million.

Also Read:Β BlackBerry Gears Up For Q4 Print; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Surpassing expectations, the adjusted EPS came in at $0.03, outperforming the anticipated loss of $(0.03).

CEO John J. Giamatteo highlighted the success of the IoT division, stating, β€œDespite industry delays, our IoT division achieved record revenue for the quarter, with significant growth in new QNX royalty backlog, resulting in a 27% year-over-year increase to approximately $815 million.”

As of the end of FY23, BlackBerry held $298 million in cash, cash equivalents, short-term, and long-term investments.

Outlook: Looking ahead to the first quarter of FY25, BlackBerry expects revenue in the range of $130 million to $138 million (versus an estimate of $151.1 million) and an adjusted EPS between $(0.04) and $(0.06) compared to the consensus loss of $(0.02).

For fiscal year 2025, the company anticipates revenue between $586 million and $616 million (est. $647.22 million) and an adjusted EPS loss of $(0.03) to $(0.07) versus the estimated $(0.02).

Related:Β BlackBerry’s FY25 Revenue Guidance May Fall Short Of Expectations – Analyst Flags Weakness In Cybersecurity Unit

In March 2023, BlackBerry inaugurated a Cybersecurity Center of Excellence (CCoE) in Kuala Lumpur.

Price Action: Pre-market trading shows BB shares rising by 7.47% to $3.02 as of the latest check on Thursday.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.