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BlackBerry(BB) - 2025 Q3 - Quarterly Results
BBBlackBerry(BB)2024-12-19 22:16

Financial Performance - Total company revenue for Q3 FY2025 was 162million,withagrossmarginof74162 million, with a gross margin of 74%[4] - Revenue for the three months ended November 30, 2024, was 143 million, an increase from 125millionforthesameperiodlastyear,representingagrowthof14.4125 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 152millionforthesameperiodin2023[28]−CybersecurityrevenuefromcontinuinganddiscontinuedoperationsforthethreemonthsendedNovember30,2024,was152 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 114millioninthesameperiodlastyear[28]ProfitabilityMetrics−Non−GAAPnetincomewas114 million in the same period last year[28] Profitability Metrics - Non-GAAP net income was 12 million, while GAAP net loss was 11million;non−GAAPbasicEPSimprovedto11 million; non-GAAP basic EPS improved to 0.02[5] - Operating income for the three months ended November 30, 2024, was 19million,upfrom19 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,animprovementfromanetlossof(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 12million,or12 million, or 0.02 per share, compared to 3million,or3 million, or 0.01 per share, in the same period last year[29] Cash Flow and Investments - Total cash and investments rose by 1millionsequentiallyto1 million sequentially to 266 million, with operating cash flow improving by 34millionyear−over−yearto34 million year-over-year to 3 million[6] - Cash and cash equivalents as of November 30, 2024, were 189million,anincreasefrom189 million, an increase from 175 million as of February 29, 2024[21] - The company experienced a net cash used in operating activities of (25)millionfortheninemonthsendedNovember30,2024,comparedtoanetcashprovidedof(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 3million,asignificantimprovementfrom3 million, a significant improvement from (33) million in the same period of 2023[34] Segment Performance - IoT revenue grew 13% sequentially to 62million,withanadjustedEBITDAincreaseof3862 million, with an adjusted EBITDA increase of 38% to 18 million[5] - Cybersecurity revenue increased 7% sequentially to 93million,withagrossmarginimprovementof12percentagepointsto6793 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 74million,adecreasefrom74 million, a decrease from 91 million in the same period in 2023[28] Guidance and Projections - Guidance for Q4 FY2025 projects total revenue between 126millionand126 million and 135 million, and full fiscal year revenue between 517millionand517 million and 526 million[8] - IoT segment EBITDA for Q4 FY2025 is expected to be between 8millionand8 million and 10 million, while total company adjusted EBITDA is projected to be between 10millionand10 million and 20 million[8] Research and Development - Research and development expenses for the three months ended November 30, 2024, were 27million,comparedto27 million, compared to 29 million in the prior year[19] - Adjusted research and development expense for the three months ended November 30, 2024, was 26million,downfrom26 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 93million,downfrom93 million, down from 101 million in the same period last year[29] - Segment EBITDA for the three months ended November 30, 2024, was 46million,adecreasefrom46 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 23million,comparedto23 million, compared to 18 million in the prior year[31] Asset and Liability Overview - Total assets as of November 30, 2024, were 1,309million,downfrom1,309 million, down from 1,395 million as of February 29, 2024[21] - Total liabilities as of November 30, 2024, were 584million,adecreasefrom584 million, a decrease from 619 million as of February 29, 2024[21]