BlackBerry(US:BB)2024-12-20 21:19Financial Performance - For the three months ended November 30, 2024, total segment revenue was $391 million, a decrease of 35.5% compared to $606 million for the same period in 2023[60]. - The Company reported a net loss of $19 million for the three months ended November 30, 2024, compared to a net income of $23 million for the same period in 2023[62]. - For the three months ended November 30, 2024, the company's revenue was $143 million, a decrease of 9% compared to $152 million for the same period in 2023[76]. - The net loss for the three months ended November 30, 2024, was $11 million, an improvement from a net loss of $21 million in the prior year, marking a 10% reduction[76]. - The company reported a net loss of $11 million, or $0.02 per share, for the three months ended November 30, 2024, compared to a net loss of $21 million, or $0.04 per share, for the same period in 2023[112]. - The company's revenue for the third quarter of fiscal 2025 was $391 million, a decrease of $215 million compared to $606 million in the same quarter of fiscal 2024[163]. Expenses and Cost Management - Research and development expenses for the three months ended November 30, 2024, were $36 million, down from $44 million in the same period of 2023, reflecting a decrease of 18.2%[60]. - Operating expenses decreased to $93 million from $101 million, representing an 8% reduction year-over-year[76]. - Research and development expenses for the three months were $27 million, down from $29 million, reflecting a 7% decrease[87]. - Total operating expenses for the nine months ended November 30, 2024, were $282 million, down from $342 million for the same period in 2023, a reduction of 17.6%[90]. - Adjusted operating expenses decreased by $9 million year-over-year to $79 million in Q3 fiscal 2025, primarily due to lower salaries and benefits expenses[134]. - General and administrative expenses decreased by $22 million, or 16.5%, in the first nine months of fiscal 2025 compared to the same period in fiscal 2024[180]. Revenue Streams and Growth Expectations - The Company anticipates revenue growth in fiscal 2025, driven by new product launches and market expansion efforts[44]. - BlackBerry IVY, an emerging intelligent vehicle data platform, is expected to enhance automakers' capabilities in accessing and utilizing vehicle sensor data[47]. - The licensing business remains a key component, managing a global patent portfolio that provides competitive advantages[47]. - The recurring software product revenue percentage was approximately 80% for the three months ended November 30, 2024, an increase from approximately 70% for the same period in 2023[97]. - The Company expects Secure Communications revenue to be between $62 million and $66 million in Q4 fiscal 2025[126]. - The company now expects IoT revenue for fiscal 2025 to be between $230 million and $235 million, up from the previous range of $225 million to $235 million[139]. Cash Flow and Financial Position - The company reported a free cash flow of $3 million for the three months ended November 30, 2024, compared to a usage of $33 million in the same period in 2023[93]. - The company had $266 million in cash, cash equivalents, and investments as of November 30, 2024, down from $298 million as of February 29, 2024[112]. - At November 30, 2024, cash and cash equivalents increased by $14 million to $189 million compared to $175 million at February 29, 2024[185]. - Current assets decreased by $53 million to $455 million at November 30, 2024, primarily due to a $31 million decrease in short-term investments[185]. Market and Strategic Initiatives - BlackBerry QNX continues to be a preferred supplier for safety-critical embedded systems, targeting industries such as automotive and medical devices[47]. - The Company expects IoT EBITDA to be in the range of $40 million to $45 million in fiscal 2025, with an EBITDA margin of approximately 18%[132]. - The Company has no intention to update or revise forward-looking statements unless required by applicable law, indicating a stable outlook for its strategic initiatives[44]. - The company is exploring opportunities for the Cylance business as it revisits capital allocation priorities[75]. Performance Metrics - Cybersecurity Annual Recurring Revenue (ARR) reached approximately $281 million as of November 30, 2024, up from $273 million a year earlier, indicating an increase of 2.9%[94]. - The Cybersecurity Dollar-Based Net Retention Rate improved to 90% for the three months ended November 30, 2024, compared to 82% for the same period in 2023, representing an increase of 8%[94]. - Secure Communications Annual Recurring Revenue (ARR) was approximately $215 million as of November 30, 2024, an increase from $199 million as of November 30, 2023[123]. - Cybersecurity Dollar-Based Net Retention Rate (DBNRR) was 90% as of November 30, 2024, up from 82% as of November 30, 2023[124]. - Secure Communications DBNRR was 95% as of November 30, 2024, an increase from 91% as of November 30, 2023[124].