BlackBerry reports Fiscal 2020 Q3 results

BlackBerry Reports Fiscal 2020 Third Quarter Results

• Total company non-GAAP revenue of $280 million, or 23% growth year-over-year; total company GAAP revenue of $267 million, or 18% growth year-over-year
• Total non-GAAP Software and Services revenue of $275 million, or 26% growth year-over-year; total GAAP Software and Services revenue of $262 million, or 21% growth year-over-year; both are record quarterly highs
• Total company non-GAAP earnings per basic and diluted share of $0.03; GAAP loss per basic share of $0.06 and GAAP loss per diluted share of $0.07
• Total company free cash flow generated of $37 million, as reported

WATERLOO, Ontario, Dec. 20, 2019 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended November 30, 2019 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

Third Quarter Fiscal 2020 Results

• Total company non-GAAP revenue for the third quarter of fiscal 2020 was $280 million, up 23% year-over-year. Total company GAAP revenue for the third quarter of fiscal 2020 was $267 million, up 18% year-over-year. Total non-GAAP software and services revenue was $275 million, up 26% year-over-year. Total GAAP software and services revenue was $262 million, up 21% year-over-year. Third quarter recurring non-GAAP software and services revenue (excluding IP licensing and professional services) was over 90%. Non-GAAP gross margin was 77% and GAAP gross margin was 74%.
• Total company non-GAAP operating earnings was $20 million. Total company GAAP operating loss was $29 million. Non-GAAP earnings per share was $0.03 (basic and diluted). GAAP net loss was $0.06 per basic share and $0.07 per diluted share. GAAP net loss includes $35 million for acquired intangibles amortization expense, $15 million in stock compensation expense, $10 million in restructuring charges, a benefit of $20 million related to the fair value adjustment on the debentures, and other amounts as summarized in a table below.
• Total cash, cash equivalents, short-term and long-term investments was $970 million as of November 30, 2019. Free cash flow generated, before considering the impact of acquisition and integration expenses, restructuring costs and legal proceedings, was $41 million. Cash generated from operations was $40 million and capital expenditures were $3 million.

"BlackBerry achieved sequential growth in revenue across all of our software businesses while generating healthy non-GAAP profitability and free cash flow as we continue to invest in our future," said John Chen, Executive Chairman and CEO, BlackBerry. "I am pleased with our progress. Our pipeline is growing as we deliver against our product roadmap and execute on our go-to-market expansion."

Outlook

BlackBerry will provide fiscal year 2020 outlook in connection with the quarterly earnings announcement on its earnings conference call. The earnings call transcript will be made available on our website and on SEDAR.

Conference Call and Webcast

A conference call and live webcast will be held today beginning at 8 a.m. ET, which can be accessed by dialing 1- 877-682-6267 or by logging on at BlackBerry.com/Investors. A replay of the conference call will also be available at approximately 11 a.m. ET by dialing 1-800-585-8367 and entering Conference ID #9608207 and at the link above.

About BlackBerry

BlackBerry (NYSE: BB; TSX: BB) is a trusted security software and services company that provides enterprises and governments with the technology they need to secure the Internet of Things. Based in Waterloo, Ontario, the company is unwavering in its commitment to safety, cybersecurity and data privacy, and leads in key areas such as artificial intelligence, endpoint security and management, encryption and embedded systems. For more information, visit BlackBerry.com and follow @BlackBerry.