BlackBerry Blows Away Fiscal Q3 2022 Revenue Estimates as Cybersecurity and IoT Products Are in Demand

UTC by Daria Rud · 3 min read
BlackBerry Blows Away Fiscal Q3 2022 Revenue Estimates as Cybersecurity and IoT Products Are in Demand
Photo: Depositphotos

For a three-month period that ended on November 30, 2021, BlackBerry’s total revenue made up $184 million. It has plunged compared to $218 million a year earlier, however, it has exceeded analysts’ average expectation of $177.25 million.

Canadian software and Internet of Things (IoT) company BlackBerry Limited (NYSE: BB) has released its fiscal Q3 results. The company has shown good performance, beating Wall Street’s estimates for its cybersecurity services and Internet of Things products. Let us have a look at the figures BlackBerry has provided.

BlackBerry Fiscal Q3: Highlights

For a three-month period that ended on November 30, 2021, BlackBerry’s total revenue made up $184 million. It has plunged compared to $218 million a year earlier, however, it has exceeded analysts’ average expectation of $177.25 million.

Of the total revenue, cybersecurity products brought $128 million. Further, IoT unit has brought $43 million, licensing and other revenue accounted for $13 million. Notably, in the fiscal second quarter, BlackBerry saw an 86% year-over-year drop in licensing and IP revenues.

BlackBerry CEO John Chen commented:

“This quarter BlackBerry delivered solid sequential billings and revenue growth for both the IoT and Cybersecurity businesses, beating expectations for the second consecutive quarter. We also beat expectations on earnings, despite the ongoing investment to drive future top line growth.”

The net profit in the third quarter totaled $74 million, in contrast to a loss of $130 million last year.

As BlackBerry has stated, it sees a growing demand for its cybersecurity services as a result of the shift to remote working. And more companies are migrating to cloud-based solutions to support remote work.

Besides, BlackBerry has made numerous partnerships in terms of IoT development. It has signed agreements with German multinational company BMW AG (ETR: BMW), Zuora Inc. (NASDAQ: ZUO), Google LLC (NASDAQ: GOOGL), and Qualcomm Inc. (NASDAQ: QCOM).

John Chen said:

“In IoT our QNX business achieved a quarterly record for design-related revenues, performing stronger than expected despite ongoing industry supply chain headwinds. On the Cybersecurity front we saw further traction for our recent unified endpoint security product launches with additional head-to-head wins against other next-gen players. I am excited about how the current organization is executing to take advantage of the market opportunities.”

In the fourth quarter, BlackBerry expects Blackberry to solve automotive supply chain issues and strong demand for QNX car software that automakers like Volkswagen AG (XETRA: VOW), BMW and Ford Motor (NYSE: F) are using.

BlackBerry Stock’s Performance

After the company released its quarterly results, its stock closed 4.17% up at $9.25. However, after hours, BB shares plunged by 2.05% to $9.06. The company’s market cap is $5.03 billion. Year-to-date, BlackBerry stock is 39.52% up.

The market performance of BlackBerry is not bad, but its shares are still far from the 52-week high of $28.77 that the company reached on January 27.

Business News, Internet of Things News, Market News, News, Stocks
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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