To The Moon

$BlackBerry(BB)$ has changed from a smartphone manufacturer to a software supplier in the past decade, and now most of its revenue comes from network security services, QNX embedded operating systems for vehicles and other Internet of Things (IoT) software.

BlackBerry's revenue fell 14% in fiscal year 2021 (as of February 2021), decreased by 20% in fiscal year 2022, and is expected to decline by 9% in fiscal year 2023. The main reasons for the continuous slowdown are the macro headwind, fierce competition from other network security companies, and the interruption of the auto industry, which temporarily inhibits QNX growth. The company squeezed out meager profits in fiscal year 2022, but it is expected that there will be another annual net loss in fiscal year 2023.

BlackBerry seems to be in a bad situation, but with the stability of the auto industry, its prospects may become bright. QNX is still the most widely used vehicle embedded operation system in the world. Its partnership with Amazon Web Services (AWS) IVY to power new networked vehicles may eventually achieve results in the next few years. BlackBerry also plans to use QNX's dominant position in the automotive market to launch a vehicle-oriented version of its Cylance network security service.

BlackBerry's stock price is not expensive, 3 times lower than next year's sales, and any good news may push up its stock price. Its $2.3 billion low corporate value may also make it an attractive acquisition target for large technology companies.

Summary

- BlackBerry's QNX can still drive its long-term growth.

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