- BlackBerry (TSX:BB) reported a Q4 2024 profit
- The Waterloo, Ontario-based tech firm announced an adjusted net profit of 3 cents per share for the quarter ended Feb. 29, compared with a forecasted average estimate of a loss of 3 cents
- The company also exceeded expectations on quarterly revenue, which was US$173 million, beating analysts’ average estimate of US$154.78 million
- BlackBerry stock opened trading at C$4.03 per share
Thanks to demand for cybersecurity services amid growing online crimes and high-profile hacks, BlackBerry (TSX:BB) reported a Q4 2024 profit.
The Waterloo, Ontario-based tech firm announced an adjusted net profit of 3 cents per share for the quarter ended Feb. 29, compared with a forecasted average estimate of a loss of 3 cents, from economists. The company also exceeded expectations on quarterly revenue, which was US$173 million, beating analysts’ average estimate of US$154.78 million. Total revenue for the fiscal year was US$853 million, including US$218 million relating to the sale of legacy patent portfolio.
Revenue from its cybersecurity unit, which provides intelligent security software to enterprises and governments, rose 5 per cent year-over-year to US$92 million, while revenue from its internet of things (IoT) business rose 25 per cent to US$66 million.
“Despite industry delays to automotive software development programs, our IoT division delivered its strongest ever quarter for revenue, as well as its best year for adding new QNX royalty backlog from design wins that resulted in 27 per cent year-over-year growth to approximately US$815 million,” BlackBerry’s CEO, John Giamatteo, said in a news release. “We also took small, but important, steps forward for the cybersecurity division, with ARR stabilizing and even increasing by 3 per cent sequentially. At a corporate level, we are making good progress with efforts to both separate the divisions and drive towards profitability, and operating cash usage more than halved sequentially this quarter.”
The company’s leadership was targeting a US$100 million increase in annual profit and had cut 200 jobs and exited some offices, while also ditching its initial public offering plans for its IoT business.
The company expects Q1 2025 revenue in the range of US$130 million to US$138 million, below analysts’ estimate of US$151 million. Full-year 2025 revenue is expected to be in the range of US$586 million to US$616 million and adjusted loss per share of 3 cents to 7 cents.
BlackBerry made headlines on Thursday after a lawsuit was filed by former employee that accused the company of hiring Giamatteo despite accusations of sexual and workplace harassment against him that were known to BlackBerry’s board of directors. As of this publishing, BlackBerry has not issued a response.
BlackBerry Ltd. provides intelligent security software and services to enterprises and governments around the world and secures more than 500 million endpoints including more than 235 million vehicles.
BlackBerry stock opened trading at C$4.03 per share and is nearly 12 per cent higher over the past month, but is down 38.55 per cent since this time last year.
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