BlackBerry has released its financial results for the full year 2023, with a revenue of US$656.0m, down 8.6% from the previous year. The company’s net loss for the year amounted to US$734.0m, a sharp decline from the US$12.0m profit recorded in FY 2022, resulting in a loss of US$1.27 per share, down from US$0.021 per share profit in the previous year.
Despite falling short of analyst revenue estimates by 1.1%, BlackBerry’s earnings per share (EPS) exceeded expectations by 1.0%. Looking ahead, the company expects to see an average annual growth rate of 15% in revenue over the next two years, compared to a 15% growth forecast for the software industry in Canada.
In the fourth quarter of FY 2023, the company reported a total revenue of $151 million. IoT revenue amounted to $53 million, cybersecurity revenue was $88 million, and licensing and other revenue was $10 million. Non-GAAP basic loss per share was $0.02, while GAAP basic loss per share was $0.85, primarily due to an $0.82 non-cash goodwill and long-lived asset impairment charge.
During the fiscal year 2023, BlackBerry’s IoT business unit reported a record QNX design win, with royalty backlog reaching $640 million. Despite macro and supply chain challenges for vehicle production, revenue increased by 16% year over year. The cybersecurity business unit experienced delays in closing a number of large government deals, but the team remained focused on executing its strategy, including the launch of new easy-to-use and cost-effective turnkey solutions, Cylance Endpoint and Cylance Edge.
BlackBerry’s total company GAAP gross margin for the fourth quarter was 66%, with a non-GAAP gross margin of 67%. IoT revenue generated a gross margin of 81%, while cybersecurity revenue gross margin was 59%, with an ARR of $298 million. Cybersecurity billings amounted to $107 million, while software and services revenue in total was $141 million. Licensing and other revenue had a gross margin of 60%.
Additionally, BlackBerry announced a new patent sale transaction with Malikie Innovations Limited, a subsidiary of Key Patent Innovations Limited, for up to $900 million. The transaction is not subject to any financing conditions, and KPI has secured all necessary funding from a leading US-based investment firm.
BlackBerry’s shares have increased by 17% from a week ago, and the company remains focused on driving towards both profitable growth and positive cash flow.
The sources for this piece include an article in Yahoo.
