BlackBerry Limited 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: 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, “Despite 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: 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.
