BB:CC - BlackBerry Q4 earnings preview: Cybersecurity will remain pressure point but all eyes on patent selloff details

2023-03-29 10:58:27 ET

BlackBerry ( NYSE: BB ) is scheduled to announce Q4 earnings results on Thursday, March 30th, after market close.

The consensus EPS Estimate is -$0.07 (-800.0% Y/Y) and the consensus Revenue Estimate is $150.97M (-18.4% Y/Y).

Over the last 2 years, BB has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time.

Over the last 3 months, EPS estimates have seen 2 upward revisions and 2 downward. Revenue estimates have seen 0 upward revisions and 2 downward.

Blackberry ( BB ) predicted quarterly revenue of about $151M in its March 6 announcement of preliminary results .

Q4 IoT revenue is expected to be approximately $53M; Cybersecurity revenue will be approximately $88M with sequentially higher billings of $107M; and licensing and other revenue $10M.

"Macro challenges were a key factor for BlackBerry's cybersecurity business unit this quarter, with elongated sales cycles in government causing some large deals to slip into later quarters," said CEO John Chen.

Verdant Peak Research sees continued growth in IoT, and a decline in cybersecurity in a "tempered fashion" although management has been seeing lower churn rates.

In the days following the preliminary results, Blackberry ( BB ) struck a deal to sell substantially all of its non-core patents and patent applications for up to $900M.

Investors can expect more details from management on the timeline of the sale and planned use of proceeds from the deal.

However, a recent SA contributor analysis suggested the value estimated by Blackberry ( BB ) may be a tall ask given the remaining shelf life and age of the patents involved.

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