However, how BlackBerry expands its market share and converts that into financial growth remains to be seen. That represents an attractive growth rate of 19% compound annual growth rate (CAGR). BlackBerry IVY is another flagship cloud-based platform that will allow automakers to improve the performances of connected vehicles.Īccording to a BlackBerry presentation, its total addressable market will be close to US$89 billion by 2025. Its QNX operating system for cars has been a game-changer and is already embedded in 200 million cars globally. IoT is a network of smart devices that collect, store, and use data, which increases productivity and customer experience.īlackBerry operates in high-growth areas but could not convert that into financial growth for the last several years. The segment obtains higher profit margins and also offers attractive growth prospects. Licensing segment contributes the rest.Īmong these three, IoT certainly looks like a bright spot. The cybersecurity segment contributes around two-third of the consolidated revenues, while IoT accounts for 23%. However, declining revenues and rising losses only indicate that the turnaround is not as fruitful.īlackBerry is a $7 billion tech company that operates in the cybersecurity and Internet of Things (IoT) domain. Growth potential for the long termīlackBerry has seen several efforts of a business overhaul in the last decade. Since 2012, it has reported a net profit on just two occasions. BlackBerry’s bottom line has been in the red for the last several years. On the bottom line front, BB reported US$144 million in net losses, against a net loss of US$23 million in the same period last year. To stress the point further, its total revenues in 2016 were US$2.16 billion, while the number squeezed to a mere US$777 million in the last 12 months, a decrease of 18%. BB’s revenues have fallen by 23% year over year in the last 12 months. The declining revenue growth should concern BB investors. This was a drop of more than 32% compared to the same period last year. Perhaps its recent quarterly numbers might create a fresh downward pressure on the stock, at least in the short to medium term.īlackBerry posted total revenues of US$175 million for the quarter that ended on August 31, 2021. However, it is sitting on massive gains of 85% for the last 12 months, thanks to the meme stock rally. What’s next for BlackBerry stock?īlackBerry stock has fallen almost 35% since January this year. If you were hoping for a BB stock rallying on the quarterly numbers, you might have to wait a bit longer.

The mobile handset maker-turned cybersecurity company posted widened loss and a remarkable drop in revenues during the second quarter of fiscal 2022. BlackBerry (TSX:BB) (NYSE:BB) has failed to impress the street with its quarterly performance this time as well.

Written by Vineet Kulkarni at The Motley Fool Canada

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