BlackBerry Swings to a Loss in 1Q16 but Keeps On Swinging
BlackBerry had high hopes for BBM Messenger
The BBM, or BlackBerry (BBRY) Messenger service, provides a number of secure applications to enterprises and consumers alike. The company previously forecast that it would earn $100 million in revenues from its BBM service in fiscal 2016. However, during the fiscal 1Q16 earnings call, BlackBerry’s management noted that BBM is taking longer to contribute than expected. Needless to say, it didn’t meet its target.
BBM Meetings and BBM Protected: Part of BlackBerry’s eBBM suite
This is a setback for the company that just last year had made enhancements to the service, especially for enterprises. In November 2014, BlackBerry launched BBM Meetings, a mobile app that allows voice and video conferences for groups of up to 25 people. This service is compatible with BlackBerry smartphones and also works on Apple (AAPL) iOS, Google (GOOGL) Android, and Microsoft (MSFT) Windows Phone smartphone operating systems.
BlackBerry claims that BBM Meetings is more cost-effective than WebEx, the leading web and video conferencing application from Cisco Systems (CSCO).
In June 2014, BlackBerry launched BBM Protected, a secure mobile messaging solution for enterprises. Both BBM Meetings and BBM Protected are part of BlackBerry’s eBBM suite, as the above graphic shows.
BlackBerry had plans to sell these BBM products as two enterprise solution bundles—the Secure Productivity bundle and the Enterprise Communicator bundle. The Secure Productivity bundle includes VPN Authentication, BBM Protected, BlackBerry Blend, and Advantage Level Support for $6 per user per month. The Enterprise Communicator bundle includes BBM Meetings, BBM Protected, and Advantage Level Support for $12 per user per month. Advantage Level Support provides software upgrades and issues resolution for both bundles.
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