BlackBerry Beats Q1 Revenue Expectations, Says Well-Positioned To Invest And Drive Growth - BlackBerry (NYSE:BB)

Editor's note: This story has been updated to reflect current Street revenue estimates for BlackBerry.
BlackBerry Ltd BB BB reported first-quarter FY23 revenue decline of 3.5% year-over-year to $168 million, beating the consensus of $160.70 million. Adjusted EPS was $(0.05), beating the consensus of $(0.06).
IoT revenue was $51 million (+19% Y/Y), with a gross margin of 84% and ARR of $94 million, while royalty revenue backlog increased by 14% Y/Y to ~$560 million.
Cybersecurity revenue was $113 million (+6% Y/Y), with a gross margin of 53% and an ARR of $334 million. The dollar-Based Net Retention Rate for Cybersecurity was 88%.
The gross margin contracted to 61.9% from 65.5% in 1Q22.
Adjusted operating loss totaled $(27) million in Q1, compared to $(2)3 million a year ago.
Adjusted EBITDA loss widened to $(21) million from $(6) million in 1Q22.
BB's net cash used by operations for Q1 was $(42) million, compared to $(33) million in 1Q22.
Total cash, cash equivalents, short-term and long-term investments were $721 million at the end of the quarter.
"The IoT business maintained its momentum of new design wins in rapidly growing core Auto domains, including Advanced Driver Assistance Systems and Digital Cockpits, and delivered a third consecutive record quarter for pre-production revenues. The Cybersecurity business demonstrated solid traction in the market by recording double-digit year-over-year billings growth. Given its exciting market opportunities, and synergies as the two markets continue to converge, the Company is well-positioned to invest and drive growth," stated John Chen, Executive Chairman & CEO, BlackBerry.
Price Action: BB shares are trading higher by 0.19% at $5.38 during the post-market session on Thursday.

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