BlackBerry Posts Q2 Beat: 'We Exceeded Our Expectations'

BlackBerry Ltd. BB beat estimates across the board in its second-quarter report Friday morning. 

BlackBerry reported record high quarterly revenue for BlackBerry Technology Solutions, which contributed to total Q2 revenue of $210 million, beating a $209.38-million estimate. 

Roughly 81 percent of software and services revenue was recurring in the quarter, the software company said.
Total cash plus long- and short-term investments added up to $2.4 billion, while free cash flow was $37 million before factoring in the cost of restructuring and legal proceedings. Second-quarter EPS of 4 cents outran the 1-cent estimate. 

2019 Outlook

"In the quarter, we exceeded our financial expectations driven by sequential growth in both our BlackBerry Technology Solutions and Enterprise Software and Services businesses," BlackBerry Executive Chairman and CEO John Chen said in a statement. 

The company expects the following in 2019: 

  • Total company software and service billings will likely hit double digits.
  • Total software and services revenue growth should amount to an 8-10-percent increase year-over-year.
  • Earnings per share results are expected to be positive.
  • Free cash flow is projected to be positive for the full year.

"I am very encouraged by BlackBerry's leadership opportunities in the fast-growing Enterprise of Things, and by our strategy to capitalize on these significant future opportunities with BlackBerry Spark, our platform to securely communicate and collaborate between smart endpoints," Chen said. 

Click here to see full results.

BlackBerry shares were up 7.56 percent at $10.96 after the open Friday. BlackBerry has a market cap of about $5.72 billion.

Related Links:

Facebook Returns Fire In BlackBerry Legal Battle With Patent Infringement Accusations

BlackBerry Reports 'Strong' Q4, But 2019 Guidance Is Limited, Says BMO

BlackBerry CEO John Chen. Photo by Dustin Blitchok. 

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Posted In: EarningsNewsGuidanceBlackBerry SparkBlackBerry Technology Solutions
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