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BlackBerry Q2 Earnings Highlights

$BB (-4.35%)


๐Ÿ”น Revenue: $129.6M (Est. $120.06M) ๐ŸŸข; UP +3% YoY

๐Ÿ”น Adj. EPS $0.04 (Est. $0.01) ๐ŸŸข

๐Ÿ”น Adj EBITDA: $25.9M (20% margin); above guidance


FY Guidance:

๐Ÿ”น Revenue: $519โ€“541M (Est. $519.7M) ๐ŸŸข

๐Ÿ”น EPS (Non-GAAP): $0.11โ€“0.15 (Est. $0.09) ๐ŸŸข

๐Ÿ”น Adjusted EBITDA: $82โ€“101M

๐Ÿ”น Operating Cash Flow: $35โ€“40M


Q3 Guidance:

๐Ÿ”น Revenue: $132โ€“140M

๐Ÿ”น Non-GAAP EPS: $0.02โ€“0.04

๐Ÿ”น Adjusted EBITDA: $20โ€“28M

๐Ÿ”น Operating Cash Flow: $10โ€“20M


Q2 Segment Results:

QNX:

๐Ÿ”น Revenue: $63.1M; UP +15% YoY

๐Ÿ”น Adjusted EBITDA: $20.5M (32% margin); beat guidance

๐Ÿ”น Adjusted Gross Margin: 83% (flat YoY)


Secure Communications:

๐Ÿ”น Revenue: $59.9M; DOWN -10% YoY

๐Ÿ”น Adjusted EBITDA: $9.7M; beat guidance

๐Ÿ”น Adjusted Gross Margin: 66% (+5pp YoY)

๐Ÿ”น ARR: $213M; DBNRR 93% (flat YoY, +1pp QoQ)


Licensing:

๐Ÿ”น Revenue: $6.6M

๐Ÿ”น Adjusted EBITDA: $5.6M


Other Metrics:

๐Ÿ”น Operating Cash Flow: +$3.4M

๐Ÿ”น Total Gross Margin: 75% (+4pp YoY)

๐Ÿ”น Cash & Investments: $363.5M (down $18.4M QoQ)

๐Ÿ”น Returned $20M to shareholders via 5M share repurchase


CEO Commentary:

๐Ÿ”ธ โ€œBlackBerry delivered year-over-year revenue growth and expanded gross margins while reducing operating expenses. This combination ensured strong profitability in the second quarter, beating expectations and achieving a second consecutive quarter of GAAP profitability.โ€


๐Ÿ”ธ โ€œOur QNX division recorded a โ€˜rule of 40โ€™ quarter and progress across all our key growth initiatives.โ€


๐Ÿ”ธ โ€œOur Secure Communications division exceeded expectations at both the top and bottom line, and delivered improvements in its key metrics.โ€

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