BlackBerry NYSE

BlackBerry Reports Fourth Quarter and Full Fiscal Year 2023 Results

Beats quarterly non-GAAP EPS expectations and sets new record for QNX royalty backlog

BlackBerry today reported financial results for the three months ended February 28, 2023 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

“This fiscal year, BlackBerry’s IoT business unit set a new record for QNX design wins, with royalty backlog reaching $640 million. Further, despite near-term macro and supply chain challenges for vehicle production, revenue increased by 16% year over year. This quarter we also announced the first IVY design win with a leading automaker,” said John Chen, Executive Chairman & CEO, BlackBerry.

“As previously communicated, BlackBerry’s Cybersecurity business unit saw the timing of a number of large government deals slip into later quarters, but we are confident that they will close this fiscal year. The team also continued to execute on our strategy, including the launch of our new easy-to-use and cost-effective turnkey solutions, Cylance Endpoint and Cylance Edge. BlackBerry beat expectations for non-GAAP EPS this quarter and maintains a clear focus on driving towards both profitable growth and positive cashflow.”

Fourth Quarter Fiscal 2023 Financial Highlights

  • Total company revenue was $151 million.
  • Total company GAAP gross margin was 66% and non-GAAP gross margin was 67%.
  • IoT revenue was $53 million, with gross margin of 81% and QNX royalty backlog of approximately $640 million.
  • Cybersecurity revenue was $88 million, with gross margin of 59% and ARR of $298 million.
  • Cybersecurity billings were $107 million.
  • Software and Services revenue in total was $141 million.
  • Licensing and Other revenue was $10 million, with gross margin of 60%.
  • Non-GAAP operating loss was $17 million. GAAP operating loss was $499 million, primarily due to a $476 million non-cash, goodwill and long-lived asset impairment charge.
  • Total cash, cash equivalents, short-term and long-term investments were $487 million.

Business Highlights & Strategic Announcements

  • BlackBerry announces new patent sale transaction with Malikie Innovations Limited, a subsidiary of leading patent monetization company, Key Patent Innovations Limited (“KPI”), for up to $900 million. There are no financing conditions and KPI has secured necessary funding from a leading US-based investment firm with more than $30 billion in assets under management.
  • BlackBerry announces first BlackBerry IVY design win as Dongfeng Motor selects PATEO digital cockpit for the next-generation all-electric VOYAH Model
  • BlackBerry showcases BlackBerry IVY running on three commercially-available automotive platforms at CES 2023 – General availability announced for May 2023
  • BlackBerry launches QNX Accelerate, making the QNX Neutrino real time operating system (RTOS) and QNX OS for Safety available in the cloud and through AWS Marketplace. This allows developers across the AWS ecosystem to develop on QNX in a virtual environment, without the need for physical hardware
  • Chongqing Yazaki selects QNX Neutrino RTOS to power a digital LCD cluster for the Chinese market, including deployment within next-generation vehicles from Geely Auto and Dongfeng Liuzhou Auto
  • Marelli, a leading Tier 1 global automotive supplier, selects the BlackBerry QNX Acoustics Management Platform (AMP) as part of its enhanced in-car audio experience within software-defined vehicles
  • BlackBerry recognized as a 2023 Gartner Peer Insights Customers’ Choice for Unified Endpoint Management (UEM) tools – the only vendor to be placed in the upper right quadrant
  • BlackBerry SecuSUITE for Government awarded updated NIAP/Common Criteria and CSfC certification for secure communication, meeting the highest security requirements for the U.S. Federal Government and the broader Five Eyes intelligence alliance
  • BlackBerry is first business in the Americas to gain the OpenChain Security Assurance Specification, a best-in-class validation of the ability to manage software supply chain vulnerabilities