• BlackBerry Ltd (NYSE:BB) (TSX:BB) reported first-quarter FY23 revenue decline of 3.5% year-over-year to $168 million, missing the consensus of $177.25 million. Adjusted EPS was $(0.05), beating the consensus of $(0.07).
• 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.