Why BlackBerry Stock Fallen Today 11%

blackberry stock

Today on 21st Dec 2022, BlackBerry (NYSE: BB; TSX: BB) stock has fallen by 11%, the reason behind this is that blackberry’s November quarter results are less than expected by the stock market.

You will get all the information about Blackberry stock and company’s results in this post.

Third Quarter Fiscal 2023 Financial Key Highlights:

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

Three Months Ended
November 30, 2022August 31, 2022November 30, 2021
Revenue169168184
Cost of sales606267
Gross margin109106117
Gross margin %64.5%63.1 %63.6 %
Expenses11115366
Net Profit/ (Loss) for the period(4)(54)74
Earnings per share (EPS)(0.01)(0.09)0.13
Dividend
BlackBerry Stock Third Quarter Fiscal 2023 Financial Key Highlights

Segment Wise Company Performance (For the Three Months Ended November 30, 2022):

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

CybersecurityIoTLicensing and OtherSegment Totals
Revenue1065112169
Cost of sales4610460
Gross margin60418109
gross margin %57 %80 %67 %64 %

Segment Wise Company Performance (For the Three Months Ended November 30, 2021):

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

CybersecurityIoTLicensing and OtherSegment Totals
Revenue284313184
Cost of sales528666
Gross margin76457118
gross margin %59 %81 %54 %64 %

Business Highlights & Announcements:

  • BlackBerry expands work with AWS to elevate QNX foundational software to the cloud, accelerating time to market for mission-critical embedded systems
  • Dayin Technology selects BB QNX to develop acoustic solutions for Great Wall Motors’ premium, next-generation vehicles
  • Human Horizons selects BlackBerry QNX to power its autonomous driving controller and intelligent digital cockpit in its ultra-futuristic digital GT, HiPhi Z vehicle
  • Company launches Cyber Threat Intelligence (CTI) service to help customers prevent, detect, and effectively respond to cyberattacks
  • Company strengthens cybersecurity platform to provide customers with improved threat identification, remediation capabilities, and endpoint support. Including, a dramatically improved user experience and investigation speed from a single-pane view and significant updates across triage and analysis workflows
  • Company’s ZTNA offering, CylanceGATEWAY™, now provides data access and leakage visibility via a newly launched data loss detection module, CylanceAVERT™
  • Investment in new features and capabilities for BlackBerry® UEM continues with the addition of latest eSIM and Android management as well as enhanced Google Chromebook integration, offering reduced administrative overhead
  • NATO authorizes BlackBerry’s SecuSUITE® for Government for global NATO secure communications
  • BlackBerry SecuSUITE expands secure communications partner network in Asia Pacific, with the addition of NSI Global, Praesidum Group and Teletrol-One

Third Quarter Fiscal 2023 Financial Highlights:

  • Total company revenue was $169 million.
  • Total company GAAP and non-GAAP gross margin was 64%.
  • IoT revenue was $51 million, a 19% increase year-over-year, with gross margin of 80%.
  • Cybersecurity revenue was $106 million, with gross margin of 57% and ARR of $313 million.
  • Cybersecurity billings were $103 million.
  • Software and Services revenue in total was $157 million.
  • Licensing and Other revenue was $12 million, with gross margin of 67%.
  • GAAP operating loss was $2 million. Non-GAAP operating loss was $28 million.
  • Total cash, cash equivalents, short-term and long-term investments were $505 million.
  • Net cash used by operating activities in the quarter was $185 million, primarily due to the payment of the one-time litigation settlement from Q1 of this fiscal year.

Company Executive Chairman & CEO Reaction:

“This quarter we saw good progress in both of BlackBerry’s business units,” said John Chen, Executive Chairman & CEO, BlackBerry. “Our IoT business has strong momentum and delivered a record quarter for design-phase revenue, driven largely by design wins in core safety-critical auto and general embedded domains.

It was also a strong quarter for product development, including a significant announcement with AWS for QNX to be made available in the cloud. BlackBerry IVY is progressing well, with positive engagement following product demonstrations at both Bosch Connected World and AWS’s re:Invent conference during the quarter. In our Cybersecurity business, the rebuilding continues to gain momentum. In line with the path outlined last quarter, churn improved and there was further evidence that investments in go-to-market and the product portfolio will drive further sequential improvements and progress towards a return to ARR growth next fiscal year.”

BlackBerry Stock Technical Analysis:

Technical analysis of Blackberry stock is very important. Blackberry’s stock has fallen more than 60% in the last 1 year.

  • The stock hit a 52-week high of $9.67 in the last one year and today 21 Dec 2022 has 52 week low of $3.68.
  • If you look at this stock overall, then it is in bearish momentum.

We have given all the information about support, target, breakdown in the chart shown below.

BlackBerry Stock Technical Analysis
BlackBerry Stock Technical Analysis

Conclusion:

Those who had bought for short term in Blackberry stock should exit now by taking stop loss and this stock is very risky even for long term, keep this thing in mind.

If you are losing more then 60% in Blackberry stock, then you should try to get out with a little less loss.

Rating: 2.5/10 (Very Bad)
Our views: Sell

For More Information Click Here

Leave a Reply

Your email address will not be published. Required fields are marked *