Canadian technology company and meme stock Blackberry (TSE: BB) (NYSE:BB) reported its Fiscal Q3-2023 financial results today, and both revenue and earnings beat analysts’ estimates. Note: all figures are in U.S. dollars unless otherwise stated.
Blackberry’s revenue reached approximately $169 million compared to the consensus estimate of about $167.3 million, representing an ~8% decrease. 62.7% of its revenue came from Cybersecurity, 30.2% came from its Internet of Things (IoT) segment, and the rest came from Licensing & Other. Also, its adjusted net loss per share was $0.05, worse than the $0.00 per share achieved in the same period last year but better than the $0.08 loss that analysts were expecting.
Adjusted EBITDA was negative as well, at -$22 million compared to -$8 million last year.
Positively, Blackberry’s gross margin came in at 64.5% compared to 63.6% in the prior-year period. This is likely due to the 19% growth in IoT revenue, which carries an 80% gross margin. If BB can keep growing this segment, its profitability can improve. Blackberry ended the quarter with $449 million in cash and equivalents, along with $392 million in debt.
Is Blackberry Stock a Buy, According to Analysts?
Turning to Wall Street, BB stock comes in as a Hold based on zero Buys, three Holds, and one Sell assigned in the past three months. The average BB stock price target of C$7.42 implies 31.75% upside potential, nonetheless.
Blackberry’s results were decent but not perfect. While the company beat expectations and its gross profitability improved, its net loss widened, and total revenue fell year-over-year. Guidance was not provided in the press release and will instead be provided in the company conference call. As of right now, the stock is mostly unchanged in the after-hours session, but things can change if a poor outlook is issued.