BlackBerry has now reported their Q1 Fiscal Year 2022 results. As part of the announcement, BlackBerry recognized total company revenue of $174 million, IoT revenue of $43 million and Cyber Security revenue of $107 million. Additionally, licensing and other revenue reached $24 million while BlackBerry CEO John Chen noted other achievements such as BlackBerry QNX now being embedded in over 195 million vehicles.
"This quarter we aligned the business around the two key market opportunities – IoT and Cyber Security. In IoT we are pleased with the strong progress of the auto business, despite global chip shortage headwinds. Design activity remains strong, the number of vehicles with QNX software embedded has increased to 195 million, and royalty revenue backlog grew by 9% year-over-year.
Tangible progress continues to be made with BlackBerry IVY, including the launch of the IVY Advisory Council and the first investment by the IVY Innovation Fund," said John Chen, Executive Chairman & CEO, BlackBerry. "On the Cyber Security side, we announced two new significant product launches as part of our XDR strategy – BlackBerry Gateway and Optics 3.0. We continue to see strong pipeline growth for our new UES products."
First Quarter Fiscal 2022 Financial Highlights
- Total company revenue for the first quarter of fiscal 2022 was $174 million.
- Total company gross margin was 66%.
- IoT revenue for the first quarter of fiscal 2022 was $43 million, with gross margin of 84% and ARR of $86 million.
- BlackBerry QNX royalty revenue backlog increased from $450 million in Q1 FY21 to $490 million in Q1 FY22, a 9% increase year-over-year.
- Cyber Security revenue for the first quarter of fiscal 2022 was $107 million, with gross margin of 57% and ARR of $364 million.
- Licensing and Other revenue for the first quarter of fiscal 2022 was $24 million as negotiations for the sale of a portion of the patent portfolio continue.
- Non-GAAP operating loss was $23 million. GAAP operating loss was $58 million.
- Non-GAAP loss per share was $0.05 (basic and diluted). GAAP loss per share was $0.11 (basic and diluted).
- Total cash, cash equivalents, short-term and long-term investments were $769 million.
- Net cash used by operating activities was $33 million.
Business Highlights & Strategic Announcements
- Volvo Group selected BlackBerry QNX operating system and hypervisor as foundation for its 'Volvo Dynamic Software Platform', to meet the needs of the 'whole truck'.
- WM Motor, a Chinese electric carmaker, chose BlackBerry QNX to power its W6 all-electric SUV.
- BlackBerry QNX and BiTECH Automotive (formerly Bosch Car Multimedia Wuhu Co. Ltd) jointly developed a digital LCD instrument cluster for Changan's UNI-K SUV.
- BlackBerry QNX is now embedded in over 195 million vehicles, increasing from over 175 million vehicles last year.
- BlackBerry launched BlackBerry IVY Advisory Council to drive use case generation using BlackBerry IVY. Initial members include Geico, Cerence, HERE, Telus and Amazon.
- BlackBerry's IVY Innovation Fund made its first investment in Electra Vehicles, a start-up that will use data from BlackBerry IVY in its AI-driven platform to optimize battery performance.
- BlackBerry announced appointment of Mattias Eriksson as President of IoT business unit.
- BlackBerry announced BlackBerry Optics 3.0, its next-generation cloud-based endpoint detection and response (EDR) solution.
- BlackBerry further built out Extended Detection and Response (XDR) strategy with launch of BlackBerry Gateway, the company's first AI-empowered Zero Trust Network Access (ZTNA) product.
- BlackBerry's AI-driven, prevention-first BlackBerry Protect product demonstrated to block both DarkSide ransomware and Conti ransomware, even using the 2015 version of the product.
BlackBerry will provide fiscal year 2022 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.
Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the company to comparable U.S. GAAP measures and an explanation of why the company uses them.
If you missed out on the conference call held, a replay of the conference call be available at approximately 8:30 p.m. ET by dialing +1 (800) 585-8367 and entering Conference ID #2676452.