BlackBerry Reports Second Quarter Fiscal Year 2023 Results – QNT Press Release

Delivers strong year-over-year revenue growth for IoT business unit and double-digit sequential billings growth for Cybersecurity business unit

Second Quarter Fiscal 2023:

  • Total company revenue of $168 million.
  • IoT revenue of $51 million.
  • Cybersecurity revenue of $111 million.
  • Licensing & Other revenue of $6 million.
  • Non-GAAP basic loss per share of $0.05, GAAP basic loss per share of $0.09.

WATERLOO, ON, Sept. 27, 2022 /PRNewswire/ — BlackBerry Limited (NYSE:BB, TSX:BB) today reported financial results for the three months ended August 31, 2022 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

"This was a solid second quarter for BlackBerry, where we delivered both revenue in line with, and EPS ahead of, expectations," said John Chen, Executive Chairman & CEO, BlackBerry. "Our IoT business continues to gain market share, and design-phase revenue remained at near-record levels. A major design win in the quarter was with Volkswagen, who chose QNX for their new VW.OS, to be deployed across all Volkswagen group brands. IVY remains firmly on track, with the latest product release in August, proof of concept trials progressing well and the IVY fund continuing to invest in exciting ecosystem partners. In our Cybersecurity business we delivered double-digit sequential billings growth, including securing significant business in both government and financial services, as well as in the middle market. We're executing on our plan and we're seeing the decisions made in recent quarters starting to pay off, with Cybersecurity ARR expected to resume growth early next fiscal year."

Second Quarter Fiscal 2023 Financial Highlights

  • Total company revenue was $168 million.
  • Total company non-GAAP gross margin was 64% and GAAP gross margin was 63%.
  • IoT revenue was $51 million, a 28% increase year-over-year, with gross margin of 82%.
  • Cybersecurity revenue was $111 million, an 8% decrease year-over-year, with gross margin of 55% and ARR of $321 million.
  • Cybersecurity billings increased 15% sequentially to $102 million and grew 6% year-over-year in the first half of the fiscal year.
  • Software and Services revenue in total was $162 million.
  • Licensing and Other revenue was $6 million, with gross margin of 67%.
  • Non-GAAP operating loss was $22 million. GAAP operating loss was $47 million.
  • Total cash, cash equivalents, short-term and long-term investments were $699 million.
  • Net cash used by operating activities was $23 million.

Business Highlights & Strategic Announcements

  • Volkswagen Group's software powerhouse, Cariad, selects BlackBerry QNX for its VW.OS, part of a unified software platform to be deployed in all Volkswagen Group brands
  • PATEO, a leading Chinese Tier 1, selects BlackBerry QNX for its intelligent cockpit, Pateo Connect+, to be mass produced in more than ten individual models across five automakers
  • NETA Auto (Hozon's EV brand) selects BlackBerry QNX for the digital cockpit and ADAS sockets in the NETA S, next generation EV Sedan aimed at the Chinese market
  • MotorTrend and BlackBerry announce inaugural Software-Defined Vehicle Innovator Awards to celebrate innovators and pioneers leading the auto industry's transformation to software
  • BlackBerry QNX extends support for the Aerospace & Defense market by achieving conformance with the global open standard "Future Airborne Capability Environment" (FACE) certification
  • BlackBerry and L-SPARK announce four smart mobility start-ups for their BlackBerry IVY connected car accelerator program
  • BlackBerry and LeapXpert collaborate to enable the BlackBerry® Dynamics™ platform to provide secure communications through leading messaging applications such as iMessage, WhatsApp and SMS
  • University of California, Irvine and BlackBerry awarded grant funding from the National Science Foundation (NSF) Convergence Accelerator program to develop secure 5G infrastructure solutions
  • Frost and Sullivan, a leading industry analyst, awards BlackBerry its 2022 Global Market Leadership Award for its Mobile Threat Defense (MTD) solution, CylancePROTECT Mobile™


BlackBerry will discuss its fiscal year 2023 outlook in connection with the quarterly earnings announcement on its earnings conference call.

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 U.S. GAAP measures and an explanation of why the company uses them.

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 by dialing +1 (877) 400-4403 or by logging on at
A replay of the conference call will also be available at approximately 8:30 p.m. ET by dialing +1 (800) 770-2030 and entering Conference ID #1566649 and at the link above.

About BlackBerry

BlackBerry (NYSE:BB, TSX:BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including more than 215M vehicles.  Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems.  BlackBerry's vision is clear – to secure a connected future you can trust.

BlackBerry. Intelligent Security. Everywhere.
For more information, visit and follow @BlackBerry.  

Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
[email protected]

Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives including its expectations with respect to increasing and enhancing its product and service offerings. 

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, and BlackBerry's expectations regarding its financial performance.  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 enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; the failure or perceived failure of BlackBerry's solutions to detect or prevent security vulnerabilities; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; litigation against BlackBerry; BlackBerry's dependence on its relationships with resellers and channel partners; acquisitions, divestitures and other business initiatives; the impact of the COVID-19 pandemic; 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; BlackBerry's ability to obtain rights to use third-party software and its use of open source software; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry being found to have infringed on the intellectual property rights of others;  the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; BlackBerry's indebtedness; 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; regulations regarding health and safety, hazardous materials usage and conflict minerals; foreign operations, including fluctuations in foreign currencies; adverse economic, geopolitical and environmental conditions; the fluctuation of BlackBerry's quarterly revenue and operating results; the volatility of the market price of BlackBerry's common shares; and rising inflation.

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 or 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 the company 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 Ontario

(United States dollars, in millions except share and per share amounts) (unaudited)

Consolidated Statements of Operations 

Three Months Ended

Six Months Ended

August 31, 2022

May 31, 2022

August 31, 2021

August 31, 2022

August 31, 2021


$                168

$                 168

$                 175

$                336

$                 349

Cost of sales






Gross margin






Gross margin %

63.1 %

61.9 %

64.0 %

62.5 %

64.8 %

Operating expenses

Research and development






Selling, marketing and administration












Impairment of long-lived assets



Gain on sale of property, plant and equipment, net



Debentures fair value adjustment






Litigation settlement








Operating loss






Investment loss, net






Loss before income taxes






Provision for income taxes






Net loss

$                 (54)

$               (181)

$               (144)

$              (235)

$               (206)

Loss per share


$             (0.09)

$              (0.31)

$              (0.25)

$             (0.41)

$              (0.36)


$             (0.10)

$              (0.35)

$              (0.25)

$             (0.45)

$              (0.36)

Weighted-average number of
common shares outstanding (000s)













Total common shares outstanding (000s)







<td xmlns="" class="prngen8" colspan="1" …

BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions) (unaudited)

Consolidated Balance Sheets

As at

August 31, 2022

February 28, 2022



Cash and cash equivalents

$                           431

$                           378

Short-term investments



Accounts receivable, net of allowance of $4 and $4, respectively



Other receivables



Income taxes receivable



Other current assets





Restricted cash and cash equivalents



Long-term investments



Other long-term assets



Operating lease right-of-use assets, net



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