In This Article:
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Total Revenue: $141.7 million, beating the top end of guidance.
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QNX Revenue: $65.8 million, exceeding guidance.
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Secure Communications Revenue: $67.3 million, surpassing guidance.
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Licensing Revenue: $8.6 million, above expectations.
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Adjusted EBITDA: $21.1 million for Q4; $39.3 million for the full fiscal year.
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EPS: Positive $0.03 for Q4; Positive $0.02 for the full fiscal year.
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Operating Cash Flow: $42 million, significantly exceeding expectations.
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Total Cash and Investments: Increased by $144 million to $410 million.
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QNX Gross Margin: 83% for Q4; 84% for the full fiscal year.
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Secure Communications Gross Margin: 64% for Q4; 66% for the full fiscal year.
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QNX Royalty Backlog: Approximately $865 million, indicating future revenue growth.
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Secure Communications ARR: $208 million, up $6 million year over year.
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Net Cash Position: In excess of $200 million.
Release Date: April 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BlackBerry Ltd (NYSE:BB) exceeded revenue expectations across all divisions, with total company revenues reaching $141.7 million.
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The QNX division achieved a strong performance, with revenue beating guidance at $65.8 million and a growing royalty backlog of approximately $865 million.
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The Secure Communications division also surpassed expectations, with Q4 revenue at $67.3 million and new business secured with government agencies and leading banks.
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BlackBerry Ltd (NYSE:BB) successfully closed the Cylance transaction with Arctic Wolf, receiving $80 million in cash and 5.5 million common shares, which strengthened its balance sheet.
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The company achieved a significant cost reduction, exceeding its target by removing over $150 million from its run rate, leading to improved profitability with adjusted EBITDA of $39.3 million for the year.
Negative Points
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Despite strong performance, the Secure Communications division experienced a year-over-year revenue decline in Q4 due to a tough comparison with the previous year's large deal with the Malaysian government.
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The QNX division faces uncertainty in the automotive sector due to recent tariff changes, which could indirectly impact BlackBerry Ltd (NYSE:BB) through supply chain and macroeconomic demand challenges.
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The Secure Communications division's annual recurring revenue decreased by $7 million sequentially, and the dollar-based net retention rate decreased marginally.
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Licensing revenue, while above guidance, was affected by a one-time bad debt expense due to a legacy contract dispute, impacting adjusted EBITDA.
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The company anticipates a seasonal low for cash flow in Q1, with expected operating cash usage between $20 million to $30 million, influenced by various one-time factors.