BlackBerry reported a net loss of US$42 million for its first quarter, as its revenue also fell significantly from a year ago.
The company’s Q1 financial results showed a deepening net loss of US$42 million, or seven cents per share, compared to a net loss of US$11 million, or two cents per share, in the same period last year.
Revenue for the quarter ended May 31 was US$144 million, a significant drop from US$373 million a year earlier.
The breakdown of BlackBerry’s revenue showed US$85 million generated from its cybersecurity business, US$53 million from its IoT division, and US$6 million from its licensing segment.
“BlackBerry’s strategy is delivering results. The Company is making significant progress towards operational independence for our IoT and Cybersecurity businesses, as well as towards profitability. We exceeded our outlook range for both adjusted EBITDA and non-GAAP EPS this quarter and achieved a third consecutive sequential improvement in free cash usage. BlackBerry remains on track to be both profitable on a non-GAAP basis and generating positive cashflow in the fourth quarter,” said John J. Giamatteo, CEO, BlackBerry.
“Both our IoT and Cybersecurity businesses beat revenue expectations. QNX recorded solid royalty revenue while our Cybersecurity division delivered a second consecutive quarter of ARR growth, as well as further enhancing dollar-based net retention.”
First Quarter Fiscal 2025 Financial Highlights
- Total company revenue was $144 million.
- Total company non-GAAP and GAAP gross margin was 67%.
- IoT revenue grew 18% year-over-year and exceeded previously-provided guidance at $53 million; IoT gross margin was 81%.
- Cybersecurity exceeded previously-provided guidance at $85 million; Cybersecurity gross margin was 59%.
- Cybersecurity ARR increased by 2% sequentially to $285 million; DBNRR increased sequentially for third consecutive quarter to 87%.
- Licensing and Other revenue was $6 million.
- Non-GAAP operating loss was $12 million and GAAP operating loss was $39 million.
- Non-GAAP basic loss per share beat the previously-provided guidance at $0.03 and GAAP basic loss per share was $0.07.
- Adjusted EBITDA was negative $7 million.
- Total cash, cash equivalents, short-term and long-term investments was $283 million; Operating cash usage was sequentially flat at $15 million, while free cash usage decreased sequentially for the third consecutive quarter to $16 million.
Business Highlights & Strategic Announcements
- ETAS and BlackBerry QNX forge partnership to jointly sell and market software solutions to provide the safe and secure foundation for the Software-Defined Vehicle (SDV).
- BlackBerry collaborates with AMD to advance foundational precision and control for robotics industry by enabling new levels of low latency and jitter, and repeatable determinism.
- BlackBerry launches CylanceMDR, an expert driven and AI-powered Managed Detection and Response (MDR) solution, including an innovative “On-Demand” solution.
- BlackBerry introduces Cylance Assistant, a generative AI cybersecurity advisor that will help organizations speed up decision-making and stop more threats faster with fewer resources.
- BlackBerry nominates Lori O’Neill for election to its Board of Directors.
Looking forward, BlackBerry projects its revenue for the next quarter to be between US$136 million and US$144 million. For the full fiscal year, the company expects to achieve revenue in the range of US$586 million to US$616 million.
