BB - BlackBerry FQ2 revenue slumps on weakness in cybersecurity business IoT performs well

2023-09-28 17:27:00 ET

BlackBerry ( NYSE: BB ) on Thursday reported a slightly narrower quarterly loss and a more than 20% decline in revenue.

U.S-listed shares of the Canadian technology company were down 0.5% to $4.75 after hours.

BB posted a FQ2 2024 non-GAAP loss per share of 4 cents, compared to an expectation of a loss of 5 cents. Revenue fell 21.4% Y/Y to $132M, falling short of consensus by $14.95M.

BlackBerry ( BB ) had earlier this month prepared investors for the big fall in revenue with a preliminary announcement in which it blamed the decrease on weakness in its cybersecurity business, primarily due to the inability to close certain large government deals.

Cybersecurity revenue in the quarter came in at $79M, while annual recurring revenue and billings came in at $279M and $74M, respectively. BB also reiterated its full year revenue outlook for the business.

The company's Internet of Things (IoT) business brought in revenue of $49M in the quarter, up 9% Q/Q, while IoT gross margin increased 400 basis points sequentially to 84%.

"Our IoT business continues to win new designs and add royalty backlog at a strong rate ... We expect a strong finish for IoT revenue this fiscal year, with the fourth quarter forecasted to be the strongest ever," BB top boss John Chen said in a statement .

BlackBerry ( BB ) was founded in 1984. It became a worldwide household name in the early 2000s when its range of smartphone devices became the rage for business professionals and later the general public. Competition from other smartphone makers eventually led BB to pull the plug on the business last year.

The company has since then pivoted itself into a provider of cybersecurity products along with software services such as making operating systems used in vehicles. According to its website, its systems are currently in more than 235M vehicles worldwide.

Additionally, BlackBerry ( BB ) on Thursday said Timothy Dattels had decided to resign from the board.

The company will discuss its outlook on an upcoming conference call at 1730 ET.

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