BlackBerry reports $144M revenue in Q1 2025

BlackBerry Limited (NYSE: BB; TSX: BB) has reported its financial results for the first quarter of fiscal year 2025, showing some significant improvements and achievements.

The company's total revenue for the quarter was $144 million, with a 67% gross margin for both non-GAAP and GAAP metrics. The IoT division saw an 18% year-over-year revenue growth, reaching $53 million, with a remarkable 81% gross margin. On the other hand, the cybersecurity division exceeded expectations, generating $85 million in revenue with a gross margin of 59%.

Furthermore, the cybersecurity division's annual recurring revenue (ARR) increased by 2% sequentially to reach $285 million, and the dollar-based net retention rate (DBNRR) increased for the third consecutive quarter to 87%.

In terms of financial performance, BlackBerry's non-GAAP operating loss was $12 million, while the GAAP operating loss was $39 million. The adjusted EBITDA was negative $7 million, and the total cash, cash equivalents, short-term, and long-term investments stood at $283 million.

The company also made significant progress in its operational separation of the IoT and cybersecurity businesses, as well as towards achieving profitability. BlackBerry's CEO, John J. Giamatteo, expressed confidence in the company's strategy, highlighting the progress towards operational independence and profitability.

Some strategic highlights and announcements include partnerships with ETAS and BlackBerry QNX to sell and market software solutions for the software-defined vehicle (SDV), collaboration with AMD to advance precision and control for the robotics industry, and the launch of CylanceMDR™, an AI-powered managed detection and response solution.

Looking ahead, BlackBerry provided guidance for the second quarter of fiscal year 2025, projecting total revenue in the range of $136 million to $144 million. For the full fiscal year 2025, the company anticipates total revenue in the range of $586 million to $616 million.

The market has reacted to these announcements by moving the company's shares -1.3% to a price of $2.21. For more information, read the company's full 8-K submission here.

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