BB - BlackBerry shares down on guiding Q4 and FY revenue below consensus

2023-03-07 05:53:16 ET

BlackBerry ( NYSE: BB ) shares slumped ~3% in the premarket session on Tuesday after announcing preliminary Q4 result.

The company sees Q4 revenue of ~$151M below consensus of $166.4M and FY revenue to be ~$656M vs. consensus of $679.28M.

Q4 IoT revenue expected to be approximately $53M;  Cybersecurity revenue to be approximately $88M; Cybersecurity billings expected to increase sequentially for third quarter in a row to approximately $107M; Licensing and Other revenue expected to be approximately $10M.

FY2023 IoT revenue expected to be approximately $206M; Cybersecurity revenue to be approximately $418M; Cybersecurity billings to be approximately $401M; Licensing and Other revenue to be approximately $32M.

Q4 and FY2023 revenue for IoT business unit is expected to be in line with the previous given outlook of approximately 16% year-over-year growth.

The company's results are expected to include up to $440M, a material non-cash, one-time goodwill impairment charge for the Spark reporting unit.

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 John Chen, Executive Chairman & CEO, BlackBerry. "The IoT business unit closed the year strongly, and we expect to deliver year over year revenue growth of approximately 16%, in line with outlook. Given the current macro backdrop, BlackBerry's management has taken proactive steps this quarter to both balance investments and manage costs to drive towards profitable growth."

The company is all set to release its Q4 earnings results on March 30.

Looking at the stock action, BB have gained about 20.5% so far this year, but it is still down ~37% for the past 12 months.

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