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BlackBerry Tops Forecasts

September 23, 2021

BlackBerry reported financial results for the three months ended August 31, 2021. The firm's Q2 revenue was down at $175 million from last year's $259 million. But, Wall Street was only looking for $163.5 million in revenue.

The Canadian company's net loss widened to $144 million, or 25 cents per share, from $23 million, or 4 cents per share, a year earlier. BlackBerry posted a loss of 6 cents per share, topping expectations of loss of 7 cents.

"Revenue for all businesses beat expectations this quarter. The Cyber Security business unit delivered robust sequential billings and revenue growth and the IoT business unit performed well in the face of global chip shortage pressures," said John Chen, Executive Chairman & CEO, BlackBerry. "We are already seeing benefits from establishing the two key business units and are delighted to appoint John Giamatteo as President of Cyber Security. Giamatteo, who was previously President and Chief Revenue Officer at McAfee, adds leading industry expertise. In IoT, design activity for our QNX products remains very strong, demonstrating both our industry leadership position and secular trends, such as ECU consolidation. In Cyber Security we received strong third-party validation of the effectiveness of our AI-driven, prevention-first suite of products, illustrating progress made with recent product launches."

BlackBerry has appointed John Giamatteo as President of the Cyber Security business unit. With this strategic hire the company adds significant industry experience. Giamatteo will join the company on October 4th and report to Executive Chairman and CEO John Chen. He will be responsible for business unit strategy, engineering, and go-to-market.

Giamatteo brings to BlackBerry over 30 years of experience with technology companies. Most recently he served as President and Chief Revenue Officer of McAfee, where he was responsible for sales, marketing, and customer success. During his time with McAfee, he delivered strong double-digit growth across its Enterprise, SMB and Consumer businesses as well as significant margin expansion across the portfolio. Prior to that he served as Chief Operating Officer at AVG Technologies, a leading provider of Internet and mobile security. Giamatteo also held leadership positions with Solera Holdings, RealNetworks, Inc. and Nortel Network Corporation.

"I'm excited to be joining BlackBerry and to be leading the Cyber Security business unit. Never has the threat of cyberattacks been higher, nor more in the minds of management," said Giamatteo. "BlackBerry's AI-driven, prevention-first technology is well placed to scale to meet the constantly evolving cybersecurity needs of companies everywhere. I'm very positive about the opportunities that we have as a company."

Tom Eacobacci, BlackBerry's President and COO, has decided to pursue other opportunities and will leave the Company on October 29th. BlackBerry thanks Tom for his hard work and contributions in his time at the Company.

 

Second Quarter Fiscal 2022 Financial Highlights
  • Total company revenue for the second quarter of fiscal 2022 was $175 million.
  • Total company non-GAAP gross margin was 65% and GAAP gross margin was 64%.
  • IoT revenue for the second quarter of fiscal 2022 was $40 million, with gross margin of 83% and ARR of $89 million.
  • Cyber Security revenue for the second quarter of fiscal 2022 was $120 million, with gross margin of 59% and ARR of $364 million.
  • Licensing and Other revenue for the second quarter of fiscal 2022 was $15 million as negotiations for the sale of a portion of the patent portfolio continue. Gross margin was 60%.
  • Non-GAAP operating loss was $30 million. GAAP operating loss was $141 million, primarily due to a non-cash accounting adjustment to the fair value of the convertible debentures, resulting from market and trading conditions, of $67 million.
  • Non-GAAP loss per share was $0.06 (basic and diluted). GAAP loss per share was $0.25 (basic and diluted).
  • Total cash, cash equivalents, short-term and long-term investments were $772 million.
  • Net cash generated from operating activities was $12 million.

Business Highlights & Strategic Announcements

  • BlackBerry has design wins with 24 of the world's leading 25 Electric Vehicle (EV) automakers. This has increased from 23 of the top 25 last quarter following an EV win with Daimler.
  • BlackBerry IVY™ to deliver highly secure vehicle-based payments, leveraging direct access to vehicle sensor data and edge processing to create a "digital fingerprint". Delivered through a partnership with Car IQ.
  • Nobo Technologies selects BlackBerry QNX® Neutrino® as foundation for new Digital Cockpit Controller for Great Wall Motors' Haval G6S SUV. Great Wall Motors is China's largest producer of SUV vehicles.
  • sTraffic, Korea's leading solution developer for transportation infrastructure systems, selects QNX® OS for Safety as the foundation for their train traffic management system that includes unmanned train operations.
  • BlackBerry launches BlackBerry® Jarvis 2.0® composition analysis tool. Delivered as a more user-friendly SaaS offering, Jarvis 2.0 empowers OEMs to validate and ensure the quality of their multi-tiered software bill of materials.
  • BlackBerry awarded highest AAA rating by SE Labs in breach test of BlackBerry® Protect (EPP) and BlackBerry® Optics (EDR). The breach test adopted a range of real-world hacker tactics and BlackBerry's AI-driven products delivered complete prevention and detection with zero false positives.
  • BlackBerry® UEM integrates with Microsoft 365, delivering BlackBerry's industry-leading security to Microsoft's productivity products.
  • BlackBerry® AtHoc® critical event management platform used as foundation for autonomous flood risk and clean water monitoring solution.
  • BlackBerry updates SecuSUITE capabilities to protect group phone calls and messages for governments and businesses from high risk eavesdropping.

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