Mr. John Giamatteo reports

BLACKBERRY REPORTS THIRD QUARTER FISCAL YEAR 2024 RESULTS

BlackBerry Ltd. today released financial results for the three months ended Nov. 30, 2023 (all figures in United States dollars and U.S. GAAP (generally accepted accounting principles), except where otherwise indicated).

"This was a good quarter for BlackBerry. Our IoT business delivered solid revenue growth and continued its impressive design win momentum. We showed particular strength in automotive, especially in ADAS where we continue to expand our market position," said John J. Giamatteo, chief executive officer, BlackBerry. "We also saw a strong quarter for the cybersecurity business, securing large strategic deals with leading government agencies that helped drive strong sequential revenue growth and margin expansion. Work has commenced to fully separate and significantly right-size our businesses, and we expect to further reduce operating cash flow usage in Q4."

Third quarter fiscal 2024 financial highlights

• Total company revenue was $175-million.
• Total company non-GAAP and GAAP gross margin increased to 73 per cent.
• IoT (Internet of Things) revenue was $55-million, a 12-per-cent sequential and 8-per-cent year-over-year increase; IoT gross margin was 84 per cent.
• Cybersecurity revenue was $114-million, a 44-per-cent sequential and 8-per-cent year-over-year increase; cyber gross margin improved by 14 percentage points sequentially to 68 per cent.
• Cybersecurity ARR (annual recurring revenue) was $273-million.
• Cybersecurity billings were $109-million.
• Licensing and other revenue was $6-million.
• Non-GAAP operating profit was $13-million and GAAP operating loss was $11-million.
• Total cash, cash equivalents, short-term and long-term investments was $271-million.

Business highlights and strategic announcements

• BlackBerry appoints cybersecurity industry veteran, and president of BlackBerry's cybersecurity division, John Giamatteo as chief executive officer.
• Process under way to establish fully standalone IoT and cybersecurity divisions, separating centralized functions and right-sizing cost structures to increase options for maximizing shareholder value.
• BlackBerry announces partial extension of convertible debentures, fully repaying $365-million of the 2020 debentures and issuing $150-million of short-term debentures on substantially identical terms.
• BlackBerry secures significant, multiyear deal to provide full suite of cybersecurity solutions to the government of Malaysia.
• United States Department of Homeland Security awards new PENS contract to BlackBerry, utilizing BlackBerry AtHoc critical event management (CEM) solution.
• BlackBerry launches generative AI-powered cybersecurity assistant to increase efficiency and reduce fatigue for CISO teams.
• BlackBerry announces enhancements to BlackBerry SecuSUITE for government, including encrypted video and group audio calls.

Outlook

BlackBerry is providing guidance for the fourth quarter of fiscal 2024 (ending Feb. 29, 2024).

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 through the company's investor webpage or by dialling toll-free 1-877-883-0383 and entering elite entry No. 7908097.

A replay of the conference call will be available at approximately 8:30 p.m. ET on Dec. 20, 2023, using the same webcast link (available in original release) or by dialling Canada toll-free 1-855-669-9658 or United States toll-free 1-877-344-7529 and entering replay access code 1117356.

About BlackBerry Ltd.

BlackBerry provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500 million end points, including over 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 end point security, end point management, encryption and embedded systems. BlackBerry's vision is clear -- to secure a connected future you can trust.

We seek Safe Harbor.