Mr. John Chen reports

BLACKBERRY REPORTS SECOND QUARTER FISCAL YEAR 2024 RESULTS

BlackBerry Ltd. has released financial results for the three months ended Aug. 31, 2023 (all figures in United States dollars and U.S. GAAP (generally accepted accounting principles), except where otherwise indicated).

Beats non-GAAP earnings expectations

Second quarter fiscal 2024:

• Total company revenue of $132-million;
• IoT (Internet of Things) revenue of $49-million;
• Cybersecurity revenue of $79-million;
• Licensing and other revenue of $4-million;
• Non-GAAP basic loss per share of four cents and GAAP basic loss per share of seven cents.

"Our IoT business continues to win new designs and add royalty backlog at a strong rate, illustrating how well positioned this business is in the medium to long term. We expect a strong finish for IoT revenue this fiscal year, with the fourth quarter forecasted to be the strongest ever. Further, we are excited by the response from beta customers to our next generation QNX Software Development Platform 8.0, and its potential to enable embedded generative AI applications," said John Chen, executive chair and chief executive officer, BlackBerry. "We also expect a strong second half for revenue in our cyber business, with a pipeline of deals that include large, mainly perpetual government opportunities that can deliver meaningful in-year revenue. Therefore, we are reiterating our full-year cyber revenue outlook."

Second quarter fiscal 2024 financial highlights

• Total company revenue was $132-million;
• Total company non-GAAP gross margin was 65 per cent and GAAP gross margin was 64 per cent;
• IoT revenue was $49-million, a 9-per-cent sequential increase; IoT gross margin was 84 per cent, increasing by 400 basis points sequentially;
• Cybersecurity revenue was $79-million, with gross margin of 54 per cent;
• Cybersecurity ARR was $279-million;
• Cybersecurity billings were $74-million;
• Licensing and other revenue was $4-million;
• Non-GAAP operating loss was $28-million and GAAP operating loss was $47-million;
• Total cash, cash equivalents, short-term and long-term investments decreased by $59-million to $519-million.

Business highlights and strategic announcements

• Foxconn-initiated group, Mobility in Harmony (MIH) consortium, selects safety-certified BlackBerry QNX and BlackBerry IVY for its next-generation electric vehicle platform.
• Mitsubishi Electric selects BlackBerry IVY to power its new automotive in-cabin system, FlexConnect.X, helping enhance road safety and enabling new customer experiences by leveraging IVY's sensor insights.
• BlackBerry IVY innovation fund invests in Israeli start-up, CorrActions, whose AI-powered application will leverage IVY sensor insights to detect potential driver awareness issues.
• BlackBerry introduces major update to its patented Cylance AI engine, further improving protection from zero-day threats.
• CylanceENDPOINT receives Gartner Peer Insights, Customers' Choice designation for Endpoint Protection Platforms, based on customer feedback, placing in the upper-right quadrant.
• BlackBerry releases its latest Quarterly Global Threat Intelligence Report, highlighting that the company's artificial-intelligence-driven cybersecurity solutions stopped 55,000 individual cyber-attacks between March and May, 2023.

BlackBerry also announced that Timothy Dattels has decided to resign from the BlackBerry board of directors, effective today.

Mr. Dattels joined the board in 2012. He chaired a special committee of the board through a review of strategic alternatives in 2013 and also served on the audit and risk management committee from 2013 to 2019.

Mr. Chen said, "We thank Tim for his long-standing contributions as BlackBerry transformed itself from a device-centric company to a cybersecurity and IoT software and services company, and we wish him the best in his future endeavours."

Mr. Dattels noted, "It's been an honour to serve with my fellow directors and I remain supportive of the company and its strategic direction."

Outlook

BlackBerry will discuss its outlook in connection with the quarterly earnings announcement further on its earnings conference call.

Conference call and webcast

A conference call and live webcast will be held today beginning at 5:30 p.m. ET, which can be accessed using a link found in the original version of this release or through the company's investor webpage or by dialling toll-free 1-877-270-2148 and entering Elite entry number 6312676.

A replay of the conference call will be available at approximately 8:30 p.m. ET today using the same webcast link or by dialling Canada toll-free 1-855-669-9658 or U.S. toll-free 1-877-344-7529 and entering replay access code 4522458.

About BlackBerry Ltd.

BlackBerry provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500 million endpoints, including 235 million vehicles. Based in Waterloo, Ont., the company leverages artificial intelligence and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint security, endpoint management, encryption and embedded systems. BlackBerry's vision is clear -- to secure a connected future you can trust.

We seek Safe Harbor.