Security software and services company BlackBerry Ltd. (NYSE: BB) sunk in pre-market trading after its preliminary Q2 revenues fell short of estimates. The company announced preliminary Q2 revenues of $132 million, which fell short of consensus estimates of $150.1 million.
In fiscal Q2, BlackBerry expects its Internet of Things (IoT) revenues are estimated to be around $49 million, up by 9% on a quarter-over-quarter basis while cybersecurity business revenues are likely to be around $80 million. Licensing revenues are likely to be around $3 million.
John Chen, Executive Chair & CEO, BlackBerry commented, ““Like many software companies, our Cybersecurity business has experienced elongated sales cycles, particularly in BlackBerry’s core government vertical, where we have a strong market position. Given the product mix, delays in closing certain large deals are expected to impact revenue recognized in the quarter. However, we expect to close these deals this fiscal year and are therefore reiterating the full-year outlook for the Cybersecurity business unit given previously.”
Looking forward, the company reiterated its FY24 outlook for the IoT business unit and now expects revenues in the range of $225 million to $240 million.
Analysts remain sidelined about BB stock with a Hold consensus rating based on a unanimous four Holds.