BlackBerry Reports First Quarter Fiscal Year 2025 Results
BlackBerry reported its financial results for Q1 FY2025, ending May 31, 2024. The company exceeded revenue guidance for both its IoT and Cybersecurity divisions, with IoT revenue growing 18% year-over-year to $53 million and Cybersecurity revenue reaching $85 million. BlackBerry's total revenue was $144 million, and the company's gross margin stood at 67%. Non-GAAP operating loss was $12 million and GAAP operating loss was $39 million. Non-GAAP EPS was a loss of $0.03, beating guidance, while GAAP EPS was a loss of $0.07. Adjusted EBITDA was negative $7 million. The company made strides towards operational separation of its IoT and Cybersecurity businesses and aims to be profitable on a non-GAAP basis by Q4 FY2025. Additionally, BlackBerry partnered with ETAS, collaborated with AMD, and launched new cybersecurity solutions including CylanceMDR™ and Cylance Assistant. The company provided Q2 FY2025 guidance with total revenue between $136-$144 million and full fiscal year 2025 guidance between $586-$616 million.
- IoT revenue grew 18% year-over-year to $53 million.
- Cybersecurity revenue reached $85 million, exceeding guidance.
- Total revenue was $144 million, exceeding guidance.
- Gross margin was 67%.
- Non-GAAP EPS was a loss of $0.03, beating guidance.
- BlackBerry made strides towards operational separation of IoT and Cybersecurity businesses.
- Third consecutive sequential improvement in free cash usage.
- Partnership with ETAS and AMD to enhance product offerings.
- Launch of new cybersecurity solutions like CylanceMDR™ and Cylance Assistant.
- GAAP operating loss was $39 million.
- Non-GAAP operating loss was $12 million.
- Adjusted EBITDA was negative $7 million.
- GAAP EPS was a loss of $0.07.
Insights
BlackBerry's recent quarterly financial results suggest a period of stabilization and controlled growth. The company exceeded its own revenue guidance for both IoT and Cybersecurity divisions, which implies a positive trajectory in key business areas. The significant 18% year-over-year growth in IoT revenue is notable, as it suggests increased market demand and effective sales strategies. Additionally, improved metrics such as the 2% sequential increase in Cybersecurity ARR and a third consecutive quarter of DBNRR growth to 87% indicate that the company’s subscription-based revenue model is gaining traction.
Despite these positive signs, the financial landscape is not without its challenges. The company reported a non-GAAP operating loss of $12 million and a GAAP operating loss of $39 million. Although these losses are concerning, the beat in non-GAAP EPS guidance at $0.03 and a reduction in free cash usage for three consecutive quarters suggest effective cost management and operational efficiency improvements. For retail investors, the ongoing improvement in free cash flow could be indicative of future profitability, aligning with BlackBerry's outlook of generating positive cash flow by the fourth quarter. However, the overall profitability remains a key challenge in the short term.
Furthermore, the company’s strong cash position with
BlackBerry’s performance in its core segments—IoT and Cybersecurity—is impressive, particularly the 18% growth in IoT revenues which underscores a strong demand in the connected devices market. The success in this segment is likely driven by the company’s focus on the automotive industry, where it powers over 235 million vehicles. This market is growing rapidly, with increasing demand for intelligent security solutions, suggesting further potential growth opportunities.
In Cybersecurity, the introduction of new products such as CylanceMDR™ and Cylance Assistant shows BlackBerry’s commitment to innovation and enhancing its product offerings. These innovations could improve market perception and drive future revenue. However, the market remains highly competitive with established players and the company’s ability to differentiate itself and capture more market share is critical.
Retail investors should consider the competitive landscape and BlackBerry’s positioning within it. While the company has shown it can grow its cybersecurity ARR and enhance its retention rates, achieving substantial profitability and market dominance remains a longer-term goal. Monitoring the company's new product launches and partnerships will be essential to gauge its market positioning and future growth prospects.
BlackBerry's strategic advancements in the IoT and Cybersecurity sectors are notable from a technological perspective. The partnership with ETAS and the collaboration with AMD to enhance low latency and jitter in robotics are significant moves. These initiatives not only strengthen BlackBerry's technological capabilities but also open new revenue streams in emerging markets.
The launch of CylanceMDR™ and the Cylance Assistant powered by generative AI showcases BlackBerry’s utilization of advanced technologies to address modern cybersecurity challenges. These solutions can potentially offer more effective threat detection and faster decision-making, which are critical in today’s cybersecurity landscape.
However, the technology sector is fast-paced and continuous innovation is required to stay ahead. BlackBerry's ability to maintain its technological edge and integrate new advancements into its product suite will be crucial. For retail investors, the company's focus on innovative solutions and strategic partnerships can be a good indicator of its long-term potential in tech-driven markets.
- Exceeds quarterly revenue guidance for both IoT and Cybersecurity divisions
- IoT achieves
18% year over year revenue growth in the quarter - Delivers sequential improvement in key Cybersecurity ARR and DBNRR metrics
- Exceeds guidance for adjusted EBITDA and non-GAAP earnings per share
- Makes significant progress in operational separation of IoT and Cybersecurity businesses
"BlackBerry's strategy is delivering results. The Company is making significant progress towards operational independence for our IoT and Cybersecurity businesses, as well as towards profitability. We exceeded our outlook range for both adjusted EBITDA and non-GAAP EPS this quarter and achieved a third consecutive sequential improvement in free cash usage. BlackBerry remains on track to be both profitable on a non-GAAP basis and generating positive cashflow in the fourth quarter," said John J. Giamatteo, CEO, BlackBerry. "Both our IoT and Cybersecurity businesses beat revenue expectations. QNX recorded solid royalty revenue while our Cybersecurity division delivered a second consecutive quarter of ARR growth, as well as further enhancing dollar-based net retention."
First Quarter Fiscal 2025 Financial Highlights
- Total company revenue was
$144 million - Total company non-GAAP and GAAP gross margin was
67% . - IoT revenue grew
18% year-over-year and exceeded previously-provided guidance at$53 million 81% . - Cybersecurity exceeded previously-provided guidance at
$85 million 59% . - Cybersecurity ARR increased by
2% sequentially to$285 million 87% . - Licensing and Other revenue was
$6 million - Non-GAAP operating loss was
$12 million $39 million - Non-GAAP basic loss per share beat the previously-provided guidance at
$0.03 $0.07 - Adjusted EBITDA was negative
$7 million - Total cash, cash equivalents, short-term and long-term investments was
$283 million $15 million $16 million
Business Highlights & Strategic Announcements
- ETAS and BlackBerry QNX® forge partnership to jointly sell and market software solutions to provide the safe and secure foundation for the Software-Defined Vehicle (SDV).
- BlackBerry announces collaboration with AMD to advance foundational precision and control for robotics industry by enabling new levels of low latency and jitter, and repeatable determinism.
- BlackBerry launches CylanceMDR™, an expert driven and AI-powered Managed Detection and Response (MDR) solution, including an innovative "On-Demand" solution.
- BlackBerry introduces Cylance Assistant, a generative AI cybersecurity advisor that will help organizations speed up decision-making and stop more threats faster with fewer resources.
- BlackBerry® UEM places in upper-right quadrant as a 2024 Gartner® Peer Insights™ Customers' Choice for Unified Endpoint Management tools for second year running.
- Independent test lab, The Tolly Group, identifies BlackBerry CylanceENDPOINT™ as detecting up to 25 percent more threats and with up to eight times less system impact than competitors.
- BlackBerry nominates Lori O'Neill, an experienced corporate director and financial expert, for election to its Board of Directors.
Outlook
BlackBerry is providing the following guidance for the second quarter (ending August 31, 2024) and the full fiscal year 2025 (ending February 28, 2025).
Q2 FY25 | Full fiscal year FY25 | |
Total BlackBerry revenue: | ||
IoT revenue: | ||
Cybersecurity revenue: | ||
Licensing & Other revenue: | Approximately | Approximately |
Adjusted EBITDA: | ( | Breakeven – |
Non-GAAP basic EPS: | ( | ( |
Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the company to comparable
Conference Call and Webcast
A conference call and live webcast will be held today beginning at 5:30 p.m. ET, which can be accessed using the following link (here) or through the Company's investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877) 883-0383 and entering Elite Entry Number 6322676.
A replay of the conference call will be available at approximately 8:30 p.m. ET today, using the same webcast link (here) or by dialing
About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company's software powers over 235M vehicles. Based in
BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow @BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com
Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com
This news release contains forward-looking statements within the meaning of certain securities laws, including under the
The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, BlackBerry's expectations regarding its financial performance, and BlackBerry's expectations regarding the planned separation of its businesses. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; BlackBerry's sales cycles and the time and expense of its sales efforts; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; potential impacts of BlackBerry's proposed business unit separation and cost reduction initiatives; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; risks arising from a failure or perceived failure of BlackBerry's solutions to detect or prevent security vulnerabilities; BlackBerry's dependence on its relationships with resellers and channel partners; litigation against BlackBerry; adverse macroeconomic and geopolitical conditions; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's ability to obtain rights to use third-party software and its use of open source software; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares.
These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.
BlackBerry Limited Incorporated under the Laws of ( | |||||
Consolidated Statements of Operations | |||||
Three Months Ended | |||||
May 31, 2024 | February 29, 2024 | May 31, 2023 | |||
Revenue | $ 144 | $ 173 | $ 373 | ||
Cost of sales | 48 | 44 | 194 | ||
Gross margin | 96 | 129 | 179 | ||
Gross margin % | 66.7 % | 74.6 % | 48.0 % | ||
Operating expenses | |||||
Research and development | 42 | 40 | 54 | ||
Sales and marketing | 38 | 41 | 45 | ||
General and administrative | 40 | 53 | 54 | ||
Amortization | 12 | 12 | 15 | ||
Impairment of goodwill | — | 35 | — | ||
Impairment of long-lived assets | 3 | 4 | — | ||
Debentures fair value adjustment | — | — | 22 | ||
135 | 185 | 190 | |||
Operating loss | (39) | (56) | (11) | ||
Investment income, net | 5 | 4 | 3 | ||
Loss before income taxes | (34) | (52) | (8) | ||
Provision for income taxes | 8 | 4 | 3 | ||
Net loss | $ (42) | $ (56) | $ (11) | ||
Loss per share | |||||
Basic | $ (0.07) | $ (0.10) | $ (0.02) | ||
Diluted | $ (0.07) | $ (0.10) | $ (0.02) | ||
Weighted-average number of common shares outstanding (000s) | |||||
Basic | 589,821 | 587,523 | 582,812 | ||
Diluted | 589,821 | 587,523 | 582,812 | ||
Total common shares outstanding (000s) | 590,171 | 589,233 | 583,237 | ||
BlackBerry Limited Incorporated under the Laws of ( | ||||
Consolidated Balance Sheets | ||||
As at | ||||
May 31, 2024 | February 29, 2024 | |||
Assets | ||||
Current | ||||
Cash and cash equivalents | $ 143 | $ 175 | ||
Short-term investments | 86 | 62 | ||
Accounts receivable, net of allowance of | 148 | 199 | ||
Other receivables | 21 | 21 | ||
Income taxes receivable | 3 | 4 | ||
Other current assets | 57 | 47 | ||
458 | 508 | |||
Restricted cash and cash equivalents | 17 | 25 | ||
Long-term investments | 37 | 36 | ||
Other long-term assets | 59 | 57 | ||
Operating lease right-of-use assets, net | 27 | 32 | ||
Property, plant and equipment, net | 19 | 21 | ||
Intangible assets, net | 145 | 154 | ||
Goodwill | 561 | 562 | ||
$ 1,323 | $ 1,395 | |||
Liabilities | ||||
Current | ||||
Accounts payable | $ 6 | $ 17 | ||
Accrued liabilities | 112 | 117 | ||
Income taxes payable | 29 | 28 | ||
Deferred revenue, current | 174 | 194 | ||
321 | 356 | |||
Deferred revenue, non-current | 32 | 28 | ||
Operating lease liabilities | 33 | 38 | ||
Other long-term liabilities | 1 | 3 | ||
Long-term notes | 194 | 194 | ||
581 | 619 | |||
Shareholders' equity | ||||
Capital stock and additional paid-in capital | 2,957 | 2,948 | ||
Deficit | (2,200) | (2,158) | ||
Accumulated other comprehensive loss | (15) | (14) | ||
742 | 776 | |||
$ 1,323 | $ 1,395 | |||
BlackBerry Limited Incorporated under the Laws of ( | |||
Consolidated Statements of Cash Flows | |||
Three Months Ended | |||
May 31, 2024 | May 31, 2023 | ||
Cash flows from operating activities | |||
Net loss | $ (42) | $ (11) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Amortization | 13 | 16 | |
Stock-based compensation | 8 | 9 | |
Impairment of long-lived assets | 3 | — | |
Intellectual property disposed of by sale | — | 147 | |
Debentures fair value adjustment | — | 22 | |
Operating leases | (2) | (1) | |
Other | (3) | — | |
Net changes in working capital items | |||
Accounts receivable, net of allowance | 51 | 3 | |
Other receivables | — | 4 | |
Income taxes receivable | 1 | — | |
Other assets | (13) | (62) | |
Accounts payable | (11) | (3) | |
Accrued liabilities | (5) | (14) | |
Income taxes payable | 1 | 1 | |
Deferred revenue | (16) | (12) | |
Net cash provided by (used in) operating activities | (15) | 99 | |
Cash flows from investing activities | |||
Acquisition of long-term investments | — | (1) | |
Acquisition of property, plant and equipment | (1) | (2) | |
Acquisition of intangible assets | (1) | (8) | |
Acquisition of short-term investments | (49) | (66) | |
Proceeds on sale or maturity of short-term investments | 25 | 39 | |
Net cash used in investing activities | (26) | (38) | |
Cash flows from financing activities | |||
Issuance of common shares | 1 | 2 | |
Net cash provided by financing activities | 1 | 2 | |
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period | (40) | 63 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 200 | 322 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ 160 | $ 385 | |
As at | May 31, 2024 | February 29, 2024 | |
Cash and cash equivalents | $ 143 | $ 175 | |
Restricted cash and cash equivalents | 17 | 25 | |
Short-term investments | 86 | 62 | |
Long-term investments | 37 | 36 | |
$ 283 | $ 298 | ||
Reconciliations of the Company's Segment Results to the Consolidated Results
The following tables show information by operating segment for the three months ended May 31, 2024 and May 31, 2023. The Company reports segment information in accordance with
For the Three Months Ended (in millions) (unaudited) | |||||||||||||||
Cybersecurity | IoT | Licensing and Other | Segment Totals | ||||||||||||
May 31, | May 31, | May 31, | May 31, | ||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
Segment revenue | $ 85 | $ 93 | $ 53 | $ 45 | $ 6 | $ 235 | $ 144 | $ 373 | |||||||
Segment cost of sales | 35 | 37 | 10 | 9 | 2 | 147 | 47 | 193 | |||||||
Segment gross margin | $ 50 | $ 56 | $ 43 | $ 36 | $ 4 | $ 88 | $ 97 | $ 180 | |||||||
Segment gross margin % | 59 % | 60 % | 81 % | 80 % | 67 % | 37 % | 67 % | 48 % | |||||||
The following table reconciles the Company's segment results for the three months ended May 31, 2024 to consolidated
For the Three Months Ended May 31, 2024 | |||||||||||
(in millions) (unaudited) | |||||||||||
Cybersecurity | IoT | Licensing and Other | Segment Totals | Reconciling Items | Consolidated | ||||||
Revenue | $ 85 | $ 53 | $ 6 | $ 144 | $ — | $ 144 | |||||
Cost of sales | 35 | 10 | 2 | 47 | 1 | 48 | |||||
Gross margin (1) | $ 50 | $ 43 | $ 4 | $ 97 | $ (1) | $ 96 | |||||
Operating expenses | 135 | 135 | |||||||||
Investment income, net | 5 | 5 | |||||||||
Loss before income taxes | $ (34) | ||||||||||
______________________________
(1) See "Non-GAAP Financial Measures" for a reconciliation of selected |
The following table reconciles the Company's segment results for the three months ended May 31, 2023 to consolidated U.S. GAAP results:
For the Three Months Ended May 31, 2023 | |||||||||||
(in millions) (unaudited) | |||||||||||
Cybersecurity | IoT | Licensing and Other | Segment Totals | Reconciling Items | Consolidated | ||||||
Revenue | $ 93 | $ 45 | $ 235 | $ 373 | $ — | $ 373 | |||||
Cost of sales | 37 | 9 | 147 | 193 | 1 | 194 | |||||
Gross margin (1) | $ 56 | $ 36 | $ 88 | $ 180 | $ (1) | $ 179 | |||||
Operating expenses | 190 | 190 | |||||||||
Investment income, net | 3 | 3 | |||||||||
Loss before income taxes | $ (8) | ||||||||||
______________________________
(1) See "Non-GAAP Financial Measures" for a reconciliation of selected |
Reconciliation of Non-GAAP Measures with the Nearest Comparable
In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of certain items below from the Company's
Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expense, adjusted net income (loss), adjusted earnings (loss) per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income (loss), adjusted EBITDA, adjusted operating income (loss) margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by
Reconciliation of non-GAAP based measures with most directly comparable
A reconciliation of the most directly comparable
For the Three Months Ended (in millions) | May 31, 2024 | May 31, 2023 | ||
Gross margin | $ 96 | $ 179 | ||
Stock compensation expense | 1 | 1 | ||
Adjusted gross margin | $ 97 | $ 180 | ||
Gross margin % | 66.7 % | 48.0 % | ||
Stock compensation expense | 0.7 % | 0.3 % | ||
Adjusted gross margin % | 67.4 % | 48.3 % |
Reconciliation of
For the Three Months Ended (in millions) | May 31, 2024 | May 31, 2023 | ||
Operating expense | $ 135 | $ 190 | ||
Restructuring charges | 8 | 5 | ||
Stock compensation expense | 7 | 8 | ||
Debentures fair value adjustment | — | 22 | ||
Acquired intangibles amortization | 8 | 10 | ||
LLA impairment charge | 3 | — | ||
Adjusted operating expense | $ 109 | $ 145 |
Reconciliation of
For the Three Months Ended (in millions, except per share amounts) | May 31, 2024 | May 31, 2023 | ||||||
Basic loss per share | Basic earnings (loss) per share | |||||||
Net loss | $ (42) | $ (11) | ||||||
Restructuring charges | 8 | 5 | ||||||
Stock compensation expense | 8 | 9 | ||||||
Debentures fair value adjustment | — | 22 | ||||||
Acquired intangibles amortization | 8 | 10 | ||||||
LLA impairment charge | 3 | — | ||||||
Adjusted net income (loss) | $ (15) | $ 35 | ||||||
Reconciliation of
For the Three Months Ended (in millions) | May 31, 2024 | May 31, 2023 | ||
Research and development | $ 42 | $ 54 | ||
Stock compensation expense | 2 | 2 | ||
Adjusted research and development expense | $ 40 | $ 52 | ||
Sales and marketing | $ 38 | $ 45 | ||
Stock compensation expense | 2 | 1 | ||
Adjusted sales and marketing expense | $ 36 | $ 44 | ||
General and administrative | $ 40 | $ 54 | ||
Restructuring charges | 8 | 5 | ||
Stock compensation expense | 3 | 5 | ||
Adjusted general and administrative expense | $ 29 | $ 44 | ||
Amortization | $ 12 | $ 15 | ||
Acquired intangibles amortization | 8 | 10 | ||
Adjusted amortization expense | $ 4 | $ 5 |
Adjusted operating income (loss), adjusted EBITDA, adjusted operating income (loss) margin percentage and adjusted EBITDA margin percentage for the three months ended May 31, 2024 and May 31, 2023 are reflected in the table below:
For the Three Months Ended (in millions) | May 31, 2024 | May 31, 2023 | ||
Operating loss | $ (39) | $ (11) | ||
Non-GAAP adjustments to operating loss | ||||
Restructuring charges | 8 | 5 | ||
Stock compensation expense | 8 | 9 | ||
Debentures fair value adjustment | — | 22 | ||
Acquired intangibles amortization | 8 | 10 | ||
LLA impairment charge | 3 | — | ||
Total non-GAAP adjustments to operating loss | $ 27 | 46 | ||
Adjusted operating income (loss) | (12) | 35 | ||
Amortization | 13 | 16 | ||
Acquired intangibles amortization | (8) | (10) | ||
Adjusted EBITDA | $ (7) | $ 41 | ||
Revenue | $ 144 | $ 373 | ||
Adjusted operating income (loss) margin % (1) | (8 %) | 9 % | ||
Adjusted EBITDA margin % (2) | (5 %) | 11 % |
______________________________
(1) Adjusted operating income (loss) margin % is calculated by dividing adjusted operating income (loss) by revenue. |
(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue. |
The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business.
Reconciliation of
For the Three Months Ended (in millions) | May 31, 2024 | May 31, 2023 | ||
Net cash provided by (used in) operating activities | $ (15) | $ 99 | ||
Acquisition of property, plant and equipment | (1) | (2) | ||
Free cash flow (usage) | $ (16) | $ 97 |
Key Metrics
The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company's current performance and estimated future performance. Readers are cautioned that annual recurring revenue ("ARR"), dollar-based net retention rate ("DBNRR"), and recurring revenue percentage do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies.
For the Three Months Ended (in millions) | May 31, 2024 | |
Cybersecurity Annual Recurring Revenue | $ 285 | |
Cybersecurity Dollar-Based Net Retention Rate | 87 % | |
Recurring Software Product Revenue Percentage | ~80 % |
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SOURCE BlackBerry Limited
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