BlackBerry Limited (BB) reported the third quarter of fiscal 2025 non-GAAP earnings per share (EPS) of 2 cents. The figure was better than the company’s estimate of a loss of 1 cent to EPS of 1 cent. In the year-ago quarter, it reported a non-GAAP EPS of 1 cent. The Zacks Consensus Estimate was pegged at a loss of 2 cents per share. Cost discipline aided the bottom-line performance.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly revenues (including Cylance business, reclas ...

Financial Data and Key Metrics - The company achieved positive EBITDA and EPS in Q3, marking a return to profitability for the first time since Q3 FY2022 [11] - Operating cash flow improved by $136 million year-to-date (Q1-Q3) compared to the previous year [11] - Total revenue for Q3 was $162 million, exceeding the upper end of the guidance range [28] - Gross margins improved to 74% sequentially and year-over-year [28] - Positive operating and free cash flow of $3 million was achieved, one quarter ahead of schedule [33] Business Line Performance IoT Division - IoT revenue was $62 million, 13% year-over-year and sequential growth, driven by royalties and development seat licenses [13][14] - Key design wins included a German luxury automaker and a major Asian auto OEM for QNX hypervisor and operating system [15] - QNX SDP 8.0 gained traction with over 10 silicon vendors committing to support it [16] - IoT EBITDA was $18 million, a 38% sequential increase, with gross margins expanding to 85% [29][30] Cybersecurity Division - Cybersecurity revenue was $93 million, exceeding guidance, with 7% sequential growth (10% for Secure Communications) [21] - Secure Communications ARR increased by 3% sequentially and 8% year-over-year to $215 million [25] - Cybersecurity EBITDA was $8 million, with Secure Communications EBITDA at $22 million (30% margin) [30] - Dollar-based net retention rate (DBNRR) for Secure Communications was 95% [26] Licensing Division - Licensing revenue was $7 million, slightly above guidance, with gross margins at 71% [27][31] - EBITDA for Licensing was $6 million [31] Market Performance - Automotive sector led IoT growth, with strong performance in digital cockpit and ADAS [14] - Industrial automation, medical, and rail verticals showed progress, with new logos like Universal Signaling and Progress Rail [18] - Secure Communications saw strong renewals in government and financial sectors, including KfW, Scottish Police, and Johns Hopkins University [22][23] Strategic Direction and Industry Competition - The sale of Cylance to Arctic Wolf is expected to strengthen the balance sheet and align with the company's strategic direction [12][13] - Focus on IoT growth, particularly QNX, with increased R&D and sales investments [47] - Secure Communications is positioned as a stable business, with growth opportunities in AtHoc and Secusmart [80][84] Management Commentary on Operating Environment and Future Outlook - Management highlighted the company's pivot to profitability and positive cash flow as a significant milestone [11][39] - The sale of Cylance is seen as a transformational move to address financial challenges and focus on core growth areas [12][13] - The company expects Q4 revenue for Secure Communications to be $62-$66 million and IoT revenue to be $60-$65 million [35] - Adjusted EBITDA for Q4 is projected to be $10-$20 million, with full-year EBITDA expected to be $60-$70 million [36] Other Important Information - The company will participate in CES 2025, showcasing QNX developments in automotive and other industries [91] - FedRAMP high certification for AtHoc is expected to strengthen the company's competitive position in the U.S. federal market [72][73] Q&A Session Summary Question: Segment EBITDA and guidance adjustments [43] - The segmented EBITDA results are pre-corporate overhead, with corporate costs around $9 million in Q3 [51] - The sequential step down in EBITDA is due to a shift in revenue mix, with higher-margin Secusmart licenses in Q3 and more hardware components expected in Q4 [45][46] Question: Capital allocation post-Cylance sale [55] - The company plans to strengthen the balance sheet and invest in IoT growth, with potential for small tuck-in M&A and share buybacks [57][59] Question: QNX revenue mix and outlook [61] - QNX revenue mix is approximately 20% development, 20% services, and 60% royalties, with fluctuations in development seat licenses [62] - The company expects an uptick in development seat revenue as OEMs address design challenges [64] Question: Secure Communications DBNR and performance [66] - Secure Communications DBNR improved to 95%, driven by strong renewals and expansions in government and financial sectors [67] - The segment is expected to stabilize further post-Cylance sale [69] Question: FedRAMP high certification for AtHoc [70] - The certification process is nearing completion, with potential to strengthen the company's position in the federal market and open new opportunities [72][73] Question: Secure Comms ARR growth and Q4 guidance [76] - Secure Comms ARR has been trending up, with an 8% year-over-year increase in Q3 [77] - Q4 guidance reflects a stable business, with growth opportunities in Secusmart's software-based model [80][84] Question: IoT royalty strength and macro backdrop [86] - IoT growth is driven by content per vehicle rather than vehicle production volume, making it less dependent on macroeconomic conditions [87] Question: Tax losses from Cylance [88] - The company retains significant tax losses, providing a shelter for future U.S. profits [89]

Financial Performance - Total company revenue for Q3 FY2025 was $162 million, with a gross margin of 74%[4] - Revenue for the three months ended November 30, 2024, was $143 million, an increase from $125 million for the same period last year, representing a growth of 14.4%[19] - Total revenue for the three months ended November 30, 2024, was $143 million, a decrease of 5.9% compared to $152 million for the same period in 2023[28] - Cybersecurity revenue from continuing and discontinued operations for the three months ended November 30, 2024, was $93 million, down from $114 million in the same period last year[28] Profitability Metrics - Non-GAAP net income was $12 million, while GAAP net loss was $11 million; non-GAAP basic EPS improved to $0.02[5] - Operating income for the three months ended November 30, 2024, was $19 million, up from $18 million in the same period last year[19] - Net loss for the three months ended November 30, 2024, was $(11) million, an improvement from a net loss of $(19) million in the prior year[19] - Adjusted net income for the three months ended November 30, 2024, was $12 million, or $0.02 per share, compared to $3 million, or $0.01 per share, in the same period last year[29] Cash Flow and Investments - Total cash and investments rose by $1 million sequentially to $266 million, with operating cash flow improving by $34 million year-over-year to $3 million[6] - Cash and cash equivalents as of November 30, 2024, were $189 million, an increase from $175 million as of February 29, 2024[21] - The company experienced a net cash used in operating activities of $(25) million for the nine months ended November 30, 2024, compared to a net cash provided of $12 million in the prior year[23] - Free cash flow for the three months ended November 30, 2024, was $3 million, a significant improvement from $(33) million in the same period of 2023[34] Segment Performance - IoT revenue grew 13% sequentially to $62 million, with an adjusted EBITDA increase of 38% to $18 million[5] - Cybersecurity revenue increased 7% sequentially to $93 million, with a gross margin improvement of 12 percentage points to 67%[5] - Cybersecurity ARR increased by 1% sequentially to $281 million, with DBNRR rising to 90%[5] - Secure Communications revenue for the three months ended November 30, 2024, was $74 million, a decrease from $91 million in the same period in 2023[28] Guidance and Projections - Guidance for Q4 FY2025 projects total revenue between $126 million and $135 million, and full fiscal year revenue between $517 million and $526 million[8] - IoT segment EBITDA for Q4 FY2025 is expected to be between $8 million and $10 million, while total company adjusted EBITDA is projected to be between $10 million and $20 million[8] Research and Development - Research and development expenses for the three months ended November 30, 2024, were $27 million, compared to $29 million in the prior year[19] - Adjusted research and development expense for the three months ended November 30, 2024, was $26 million, down from $27 million in the same period of 2023[30] Operational Metrics - Operating expenses for the three months ended November 30, 2024, were $93 million, down from $101 million in the same period last year[29] - Segment EBITDA for the three months ended November 30, 2024, was $46 million, a decrease from $47 million in the same period in 2023[26] - Adjusted EBITDA from continuing and discontinued operations for the three months ended November 30, 2024, was $23 million, compared to $18 million in the prior year[31] Asset and Liability Overview - Total assets as of November 30, 2024, were $1,309 million, down from $1,395 million as of February 29, 2024[21] - Total liabilities as of November 30, 2024, were $584 million, a decrease from $619 million as of February 29, 2024[21]

Remuneration of Executive Corporate Officers In accordance with Article L.22-10-13 of the French Commercial Code and the recommendation 26-1 of the AFEP-MEDEF Code of Corporate Governance Clichy, France – December 17, 2024 – In its meeting of December 11, 2024, chaired by Nikos Koumettis, the Board of Directors of SOCIÉTÉ BIC, upon the joint recommendations of the Remuneration Committee and Nominations, Governance and CSR Committees, decided the following in relation to the remuneration to be paid to Gonz ...

BlackBerry Limited (BB) recently inked a definitive agreement to sell its Cylance endpoint security assets to Arctic Wolf. Following the divesture announcement, BB’s shares jumped 15% and closed the trading session at $3.1 on Dec. 16.Cylance, an artificial intelligence (AI)-driven endpoint security pioneer, is renowned for its advanced prevention technology, which safeguards thousands of organizations worldwide. Arctic Wolf, which specializes in AI-powered security operations, aims to integrate Cylance's ad ...

Shares of one-time smartphone leader BlackBerry (BB 12.83%) stock soared 16% through 11:40 a.m. ET Monday morning after the company announced it will sell its Cylance endpoint security assets to private cybersecurity operator Arctic Wolf.With its smartphone business out of the picture, BlackBerry has morphed into a specialist in software for cyber and Internet of Things (IoT) applications. It's the former business that interests Arctic Wolf, which will pay effectively $160 million to acquire it. The dealArc ...

Arctic Wolf has acquired Cylance, BlackBerry’s beleaguered cybersecurity business, for $160 million — a significant write-down from the $1.4 billion BlackBerry paid to acquire the company in 2018. Under the terms of the deal, which is expected to close in BlackBerry’s fiscal Q4, BlackBerry will sell its Cylance assets to Arctic Wolf for $160 million in cash. BlackBerry will get ~$80 million at closing and the rest of the tranche a year later, along with roughly 5.5 million common shares in Arctic Wolf. “We ...

BlackBerry Limited (BB) is scheduled to report third-quarter fiscal 2025 results on Dec. 19.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus Estimate is pegged at a loss of 2 cents per share, unchanged in the past 60 days. The company reported earnings per share of 1 cent in the prior-year quarter.The company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise of 131.25%.Factors at Play ...

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BlackBerry (BB) closed the latest trading day at $2.76, indicating a -0.72% change from the previous session's end. This change lagged the S&P 500's 0.54% loss on the day. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.66%.The cybersecurity software and services company's shares have seen an increase of 13.93% over the last month, surpassing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5%.Investors will be eagerly watching for the performance of Blac ...