Business & Investment

BlackBerry Revenue: Dark Cloud or Ray of Light?

According to the company’s recent earnings announcement, BlackBerry (TSX: BB)(NYSE: BB) Income figures were disastrous in most cases. The company missed expectations and earnings growth fell. Indeed, investors don’t seem to like this stock right now.

But I think BlackBerry’s growth treatise is still fascinating. This is what the current situation of the company is.

Fourth Quarter Revenue Takeaway: Another Rough Quarter

In a difficult year to navigate, BlackBerry reported disappointing numbers in its fourth quarter earnings announcement, which ended February 28, 2021. The company reported a loss of US $ 315 million while generating US $ 51 million in net cash from its operating activities.

BlackBerry reported a net loss of $ 0.56 per share, compared to $ 0.07 per share in the previous year. Quarterly non-GAAP revenue was reported at $ 215 million, while GAAP revenue was $ 210 million.

On an adjusted basis, the company reported a profit of $ 0.03 per share. This is very close to what analysts expected this quarter. This slowdown is temporary and I think it is affected by several market factors. BlackBerry reported that it would have had higher licensing revenue without negotiations to sell part of its patent portfolio.

However, investors should also review the announcement section to estimate the 2022 outlook. The company has announced several product launches and partnerships aimed at diversifying BlackBerry’s growth outlook.

The sun is shining on the BlackBerry horizon

It cannot be denied that the company’s stock price is inconsistent with the fundamentals.However, BlackBerry offers investors incredible value Growth potential, Revealed when assessing the partnership revealed along with a call for revenue.

For example, this company Baidu Powers next-generation self-driving cars. BlackBerry’s focus on enterprise security products and its new partnership offers BlackBerry the potential to become a leader in growth segments within the IoT sector. In December 2020, BlackBerry Amazon Web Services will develop Intelligent Data Platform (IVY), a scalable cloud software platform for the connected car market.

BlackBerry’s QNX software division has become one of the first commercial microkernel operating systems for automatic vehicles. Scania chose QNX for its next-generation heavy-duty vehicle, Sony At CES, the next Vision-S announced that it will also feature this technology.

Conclusion

Yes, the earnings were terrible. The BlackBerry stock was sold out accordingly.

However, I think there is a ray of light in this dark cloud of uncertainty.

The catalyst for BlackBerry’s long-term growth is still there. This still has room for improvement as we strategically move from a hardware-centric business model to a software-first company. Therefore, I think BlackBerry investors simply have to put up with this stock.

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This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content.

John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors.Stupid contributor Chris Macdonald There are no positions in any of the listed stocks. David Gardner I own shares in Amazon and Baidu. Tom Gardner I own a stake in Baidu. Motley Fool owns and recommends shares in Amazon and Baidu. Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: Amazon has a long January 2022 call for $ 1920, and Amazon has a short January 2022 call for $ 1940.

BlackBerry Revenue: Dark Cloud or Ray of Light?

https://www.fool.ca/2021/04/06/blackberry-earnings-dark-cloud-or-ray-of-light/ BlackBerry Revenue: Dark Cloud or Ray of Light?

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