BlackBerry's Stock Heads For Worst Day In Over A Year After Revenue Outlook Disappoints -- MarketWatch

BlackBerry Ltd. (BB) shares tumbled 14.5% in premarket trading, as the cybersecurity company's weaker-than-expected outlook overshadowed better-than-expected fourth-quarter revenue and adjusted earnings.

The stock was headed for a seventh-straight loss, which would be the longest losing streak since the eight-day stretch that ended Oct. 9, 2023. It was also on track for the biggest one-day selloff since it plunged 17.5% on Jan. 24, 2024.

For the first quarter, BlackBerry estimates revenue of $107 million to $115 million, below the FactSet consensus estimate of $125.1 million. For the full year, the company expects revenue of $504 to $534 million, compared with the FactSet consensus estimate of $535.4 million.

For the three months ending Feb. 28, 2025, BlackBerry's adjusted fourth-quarter profit of 3 cents a share beat the FactSet consensus estimate of 0 cents a share.

Revenue was $141.7 million, down from $152.9 million in the prior year's quarter. Analysts surveyed by FactSet were looking for revenue of $129.7 million.

"BlackBerry closed out this transformational fiscal year with another quarter of strong financial performance from all three divisions: QNX, Secure Communications and Licensing," said BlackBerry CEO John Giamatteo, in a statement. "We also took a big step forward by completing the sale of the Cylance business to Arctic Wolf, a win-win for all parties, and significantly strengthening our balance sheet in the process."

BlackBerry completed the sale of its Cylance cybersecurity platform to Arctic Wolf in February.

The company's total cash and investments increased by $144 million sequentially to $410 million. BlackBerry attributed this in part due to improved operating cash flow, and in part due to approximately $80 million received from the first tranche of cash from the Cylance sale.

Revenue from QNX, which is BlackBerry's recently rebranded Internet of Things segment, was $65.8 million, compared with $65.9 million in the prior year's quarter, and above the FactSet consensus estimate of $61.7 million. Secure Communications revenue was $67.3 million, down from $71.6 million in same period last year, but above the FactSet consensus of $62.5 million. Licensing revenue was $8.6 million, down from $15.4 million in the prior year's quarter, but above the FactSet consensus of $3.5 million.

-James Rogers

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April 02, 2025 08:34 ET (12:34 GMT)

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