BlackBerry reports $4million net loss in Q3 2023

BlackBerry reported a net loss of US$4 million in the quarter ended Nov. 30, down from its US$74 million gain in the same quarter last year.

That amounts to a loss of nine cents per diluted share, compared to a five-cent diluted loss last year. company reported total revenue of US$169 million, down from US$184 million a year earlier.

Revenue of $169M (-8.2% Y/Y) beats by $2.22M, while total company GAAP and non-GAAP gross margin was 64%. IoT revenue was $51 million, a 19% increase year-over-year, with gross margin of 80%, while Cybersecurity revenue was $106 million, with gross margin of 57% and ARR of $313 million.

Cybersecurity billings were $103 million, Software and Services revenue in total was $157 million, Licensing and Other revenue was $12 million, with gross margin of 67%.

GAAP operating loss was $2 million. Non-GAAP operating loss was $28 million, Total cash, cash equivalents, short-term and long-term investments were $505 million and Net cash used by operating activities in the quarter was $185 million, primarily due to the payment of the one-time litigation settlement from Q1 of this fiscal year.

“This quarter we saw good progress in both of BlackBerry’s business units,” said John Chen, Executive Chairman & CEO, BlackBerry.

“Our IoT business has strong momentum and delivered a record quarter for design-phase revenue, driven largely by design wins in core safety-critical auto and general embedded domains. It was also a strong quarter for product development, including a significant announcement with AWS for QNX to be made available in the cloud.

BlackBerry IVY is progressing well, with positive engagement following product demonstrations at both Bosch Connected World and AWS’s re:Invent conference during the quarter.

In our Cybersecurity business, the rebuilding continues to gain momentum. In line with the path outlined last quarter, churn improved and there was further evidence that investments in go-to-market and the product portfolio will drive further sequential improvements and progress towards a return to ARR growth next fiscal year.”

Business Highlights & Strategic Announcements

BlackBerry expands work with AWS to elevate BlackBerry QNX foundational software to the cloud, accelerating time to market for mission-critical embedded systems
Dayin Technology selects BlackBerry QNX to develop acoustic solutions for Great Wall Motors’ premium, next-generation vehicles
Human Horizons selects BlackBerry QNX to power its autonomous driving controller and intelligent digital cockpit in its ultra-futuristic digital GT, HiPhi Z vehicle
BlackBerry launches Cyber Threat Intelligence (CTI) service to help customers prevent, detect, and effectively respond to cyberattacks
BlackBerry strengthens cybersecurity platform to provide customers with improved threat identification, remediation capabilities, and endpoint support. Including, a dramatically improved user experience and investigation speed from a single-pane view and significant updates across triage and analysis workflows
BlackBerry’s ZTNA offering, CylanceGATEWAY, now provides data access and leakage visibility via a newly launched data loss detection module, CylanceAVERT
Investment in new features and capabilities for BlackBerry UEM continues with the addition of latest eSIM and Android management as well as enhanced Google Chromebook integration, offering reduced administrative overhead
NATO authorizes BlackBerry’s SecuSUITE for Government for global NATO secure communications
BlackBerry SecuSUITE expands secure communications partner network in Asia Pacific, with the addition of NSI Global, Praesidum Group and Teletrol-One