Key takeaways from Blackberry’s FY Q3 2022 earnings call

On Dec. 21, 2022, Blackberry reported its Q3 FY2022 earnings results. The company reported US $184 million of revenue (+5.1% sequentially vs Q2 FY2022) with $43 million for the IoT business (+7.5% sequentially) and $128 million (+6.7% sequentially) for the Cyber Security business. For the Q4 FY2022 guidance, Blackberry expects $50 ~ $55 million for its IoT business (+16% ~ +28% sequentially) and $125 ~ $135 million for its Cyber business (-2.3% ~ +5.5% sequentially). CEO John Chen feels good about the IoT business and points out that despite the soft revenue guidance for the Cyber business for Q4 FY2022, the company expects sequential billings growth for both the IoT and the Cyber business for Q4. During Q&A, CEO John Chen hopes that the recent and anticipated billings growth will lead to good growth in Annual Recurring Revenue (ARR) in the Cyber business. In addition, the company comments that their IVY product, which could bring in significant recurring revenue along with the secular EV/AV and Smart City trends, is on track according to the road map.

Previously, I wrote that Blackberry’s stock price could become 10x in the long term (see the post here) and I still believe that will be the case.

Note: I’m long BB. This is not financial advice.