BlackBerry's (BB, Financial) QNX division has introduced the QNX Hypervisor 8.0, a cutting-edge solution designed to simplify and expedite the development of embedded software. This virtualization technology is built on the advanced QNX Software Development Platform 8.0, which provides essential capabilities for managing and creating intricate embedded software projects.
The microkernel architecture of the QNX Hypervisor 8.0 allows for the simultaneous operation of multiple operating systems, such as Android, Linux, and QNX, on a single system-on-a-chip. This comprehensive virtualization framework includes features like virtual memory, CPUs, and para-virtualized devices, ensuring the isolation and protection of critical systems.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for BlackBerry Ltd (BB, Financial) is $4.24 with a high estimate of $6.00 and a low estimate of $2.71. The average target implies an upside of 2.74% from the current price of $4.13. More detailed estimate data can be found on the BlackBerry Ltd (BB) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, BlackBerry Ltd's (BB, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BlackBerry Ltd (BB, Financial) in one year is $3.42, suggesting a downside of 17.19% from the current price of $4.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BlackBerry Ltd (BB) Summary page.
BB Key Business Developments
Release Date: April 02, 2025
- Total Revenue: $141.7 million, beating the top end of guidance.
- QNX Revenue: $65.8 million, exceeding guidance.
- Secure Communications Revenue: $67.3 million, surpassing guidance.
- Licensing Revenue: $8.6 million, above expectations.
- Adjusted EBITDA: $21.1 million for Q4; $39.3 million for the full fiscal year.
- EPS: Positive $0.03 for Q4; Positive $0.02 for the full fiscal year.
- Operating Cash Flow: $42 million, significantly exceeding expectations.
- Total Cash and Investments: Increased by $144 million to $410 million.
- QNX Gross Margin: 83% for Q4; 84% for the full fiscal year.
- Secure Communications Gross Margin: 64% for Q4; 66% for the full fiscal year.
- QNX Royalty Backlog: Approximately $865 million, indicating future revenue growth.
- Secure Communications ARR: $208 million, up $6 million year over year.
- Net Cash Position: In excess of $200 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BlackBerry Ltd (BB, Financial) exceeded revenue expectations across all divisions, with total company revenues reaching $141.7 million.
- The QNX division achieved a strong performance, with revenue beating guidance at $65.8 million and a growing royalty backlog of approximately $865 million.
- The Secure Communications division also surpassed expectations, with Q4 revenue at $67.3 million and new business secured with government agencies and leading banks.
- BlackBerry Ltd (BB) successfully closed the Cylance transaction with Arctic Wolf, receiving $80 million in cash and 5.5 million common shares, which strengthened its balance sheet.
- The company achieved a significant cost reduction, exceeding its target by removing over $150 million from its run rate, leading to improved profitability with adjusted EBITDA of $39.3 million for the year.
Negative Points
- Despite strong performance, the Secure Communications division experienced a year-over-year revenue decline in Q4 due to a tough comparison with the previous year's large deal with the Malaysian government.
- The QNX division faces uncertainty in the automotive sector due to recent tariff changes, which could indirectly impact BlackBerry Ltd (BB) through supply chain and macroeconomic demand challenges.
- The Secure Communications division's annual recurring revenue decreased by $7 million sequentially, and the dollar-based net retention rate decreased marginally.
- Licensing revenue, while above guidance, was affected by a one-time bad debt expense due to a legacy contract dispute, impacting adjusted EBITDA.
- The company anticipates a seasonal low for cash flow in Q1, with expected operating cash usage between $20 million to $30 million, influenced by various one-time factors.
