Mr. John Giamatteo reports

BLACKBERRY REPORTS FOURTH QUARTER AND FULL FISCAL YEAR 2024 RESULTS

BlackBerry Ltd. has released its financial results for the three months and fiscal year ended Feb. 29, 2024 (all figures in United States dollars and U.S. GAAP (generally accepted accounting principles), except where otherwise indicated).

• Delivers year-over-year revenue growth for both IoT (Internet of Things) and cybersecurity divisions;
• IoT division reports record revenue quarter and QNX royalty backlog of $815-million;
• Cybersecurity division stabilizes ARR, with sequential growth and DBNRR improvement;
• Significantly improves operating cash usage sequentially and expects to be cash flow and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) positive for FY25;
• Non-GAAP (generally accepted accounting principles) earnings per share beats expectations.

"BlackBerry delivered a solid finish to the fiscal year, setting a number of new records in the process. Despite industry delays to automotive software development programs, our IoT division delivered its strongest ever quarter for revenue, as well as its best year for adding new QNX royalty backlog from design wins that resulted in 27-per-cent year-over-year growth to approximately $815-million," said John J. Giamatteo, chief executive officer, BlackBerry. "We also took small, but important steps forward for the cybersecurity division, with ARR stabilizing and even increasing by 3 per cent sequentially. At a corporate level, we are making good progress with efforts to both separate the divisions and drive towards profitability, and operating cash usage more than halved sequentially this quarter."

Fourth quarter fiscal 2024 financial highlights

• Total company revenue was $173-million;
• Total company non-GAAP and GAAP gross margin increased to 75 per cent;
• IoT revenue was an all-time quarterly record $66-million, a 25-per-cent year-over-year increase; IoT gross margin remained at 85 per cent;
• Cybersecurity revenue was $92-million, a 5-per-cent year-over-year increase; cybersecurity gross margin was 65 per cent;
• Cybersecurity ARR increased sequentially by 3 per cent to $280-million;
• Licensing and other revenue was $15-million;
• Non-GAAP operating profit was $16-million and GAAP operating loss was $56-million;
• Non-GAAP basic earnings per share was three cents and GAAP basic loss per share was 10 cents;
• Adjusted EBITDA was $21-million;
• Total cash, cash equivalents, short-term and long-term investments was $298-million, and cash used by operations decreased by 52 per cent sequentially to $15-million.

Full year fiscal 2024 financial highlights

• Total company revenue was $853-million, including $218-million relating to the sale of legacy patent portfolio in Q1;
• Total company non-GAAP and GAAP gross margin was 61 per cent;
• Non-GAAP operating profit was $36-million and GAAP operating loss was $125-million;
• Non-GAAP basic earnings per share was five cents and GAAP basic loss per share was 22 cents.

Business highlights and strategic announcements

• BlackBerry QNX announces general availability of QNX Software Development Platform (SDP) 8.0, its scalable, high performance foundation for next-generation automotive and IoT systems;
• Stellantis, BlackBerry QNX and AWS launch virtual cockpit, transforming in-vehicle software engineering;
• BlackBerry launches QNX Sound, an audio and acoustics innovation platform for software-defined vehicles;
• Mobility in Harmony (MIH) consortium, a Foxconn initiative, selects BlackBerry IVY to power its next-generation electric production vehicles;
• BlackBerry is first mobile device management vendor to receive BSI clearance for BlackBerry UEM Brightsite usage with Apple iNDIGO;
• BlackBerry's new Cybersecurity Center of Excellence (CCoE) in Kuala Lumpur will offer SANS training courses to help grow and up-skill cyber work forces in Malaysia;
• BlackBerry completes $200-million, five-year 3.00-per-cent convertible notes private offering, and fully repays $150-million of short-term extendable debentures;
• BlackBerry appoints Philip Brace, an IoT technology industry veteran, to its board of directors.

Outlook

BlackBerry is providing the following guidance for the first quarter (ending May 31, 2024) and the full fiscal year 2025 (ending Feb. 28, 2025).

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 on-line or through the company's investor Web page or by dialling toll-free 1-877-883-0383 and entering Elite Entry No. 6322676.

A replay of the conference call will be available at approximately 8:30 p.m. ET today, using the same webcast or by dialling Canada toll-free 1-855-669-9658 or United States toll-free 1-877-344-7529 and entering replay access code 8962207.

About BlackBerry Ltd.

BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company's software powers over 235 million vehicles. Based in Waterloo, Ont., the company leverages AI (artificial intelligence) and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy, and is a leader in the areas of end-point security management, encryption and embedded systems. BlackBerry's vision is clear -- to secure a connected future you can trust.

We seek Safe Harbor.