2023-03-31 07:36:19 ET
Blackberry ( NYSE: BB ) shares fell over 4% premarket on Friday after the Canadian software firm reported mixed fourth quarter results .
The company generated revenue of $151M that fell 18.4% Y/Y but was in line with analysts' estimates. IoT and cybersecurity businesses contributed $53M and $88M (down from $122M in year-ago period) in revenue, respectively.
Cybersecurity business saw the timing of a number of large government deals slip into later quarters. Owing to strong billing growth from others, non-government verticals, including financial services, cyber billings increased overall for the third consecutive quarter.
Blackberry ( BB ) incurred adjusted net loss of $13M in Q4 vs. $6M income in the prior year quarter. Adjusted EBITDA was also negative $12M.
For the coming fiscal year, the firm will be focused on driving towards both profitable growth and being cash flow positive. "The outlook for the coming year is for a significantly lower EPS loss and cash flow usage," noted CFO Steve Rai in the earnings call .
Speaking on the results, analyst John Butler from Bloomberg Intelligence said: "Blackberry is still struggling for growth in its cybersecurity unit amid tough competition and a weak economy."
Noting impact from the delay of several large government deals, Butler warned that some of this backlog may never convert to revenue, as share loss may have added to the miss.
Shares of Blackberry ( BB ) have lost 46% in value over the past year
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Blackberry stock dips as results fail to impress