BlackBerry Limited BB shares are trading higher after it reported fourth-quarter FY24 results.
Revenue of $173 million came better than $151 million a year ago, beating the consensus of $154.8 million.
IoT revenue reached an all-time quarterly record of $66 million, up 25% Y/Y, and Cybersecurity revenue rose 5% Y/Y to $92 million.
Adjusted gross margin expanded to 75% from 67% a year ago, with IoT gross margin remained flat Y/Y at 85%. Cybersecurity ARR increased 3% Q/Q to $280 million.
Adjusted EBITDA stood at $21 million, significantly better than $(12) million a year ago.
Adjusted EPS came in at $0.03, beating the consensus loss of $(0.03).
John J. Giamatteo, CEO, said, “Despite industry delays to automotive software development programs, our IoT division delivered its strongest ever quarter for revenue, as well as its best year for adding new QNX royalty backlog from design wins that resulted in 27% year-over-year growth to approximately $815 million.”
As of FY23, the company had cash, cash equivalents, short-term and long-term investments of $298 million.
Outlook: For first-quarter FY25, BlackBerry sees revenue of $130 million – $138 million (vs. estimate of $151.1 million) and adjusted EPS of $(0.04) – $(0.06) vs. consensus loss of $(0.02).
The company expects FY25 BlackBerry revenue of $586 million-$616 million (est. $647.22 million) and adjusted EPS loss of $(0.03)-$(0.07) vs. $(0.02) estimate.
In March 2023, BlackBerry opened a Cybersecurity Center of Excellence (CCoE) in Kuala Lumpur.
Price Action: BB shares are up 7.47% at $3.02 premarket on the last check Thursday.
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