Q3 2025 BlackBerry Ltd Earnings Call Transcript
Key Points
- BlackBerry Ltd (BB) achieved profitability and positive cash flow for the first time in 12 quarters, excluding the impact of the Malikie sale.
- The IoT division delivered strong revenue growth of 13% year-over-year, driven by royalties and development seat licenses, particularly in the automotive sector.
- The cybersecurity division exceeded revenue expectations with $93 million, achieving 7% sequential growth, and a 10% increase in the secure communications division.
- The sale of Cylance to Arctic Wolf is expected to strengthen BlackBerry Ltd (BB)'s balance sheet and align with its strategic direction.
- Gross margins improved both sequentially and year-over-year to 74%, with the IoT division achieving an 85% gross margin and cybersecurity improving by 12 percentage points to 67%.
- The cybersecurity division faced a tough year-over-year comparison due to a significant multi-year deal with the Malaysian government in the previous year.
- The QNX business faces challenges in the automotive sector, with fluctuations in development seat licenses impacting revenue.
- The Secure Communications division is not expected to be a major growth driver, with a focus on stability rather than significant expansion.
- The company is experiencing a shift in revenue mix, which may lead to lower margins in the upcoming quarter due to increased hardware components.
- The pending sale of Cylance has led to the withdrawal of previously provided guidance for the cybersecurity division, creating uncertainty in future projections.
Good afternoon and welcome to the BlackBerry third-quarter fiscal year 2025 results conference call. My name is Alicia and I'll be your conference moderator for today's call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn today's call over to Martha Gonder, Director of Investor Relations, BlackBerry. Please go ahead.
Thank you, Alicia. Good afternoon, everyone, and welcome to BlackBerry's third-quarter fiscal year 2025 earnings conference call. Joining me on today's call is BlackBerry's Chief Executive Officer, John Giamatteo, and Chief Financial Officer, Tim Foote.
After I read our cautionary note regarding forward-looking statements, John will provide a business update, and Tim will review the financial results. We will then open the call for a brief Q&A session.
This call is available to the general public via call-in numbers and via webcast in the Investor Information section at blackberry.com. A
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
