BlackBerry expects sales to double in five years
18 May 2022
IoT growth expects sales to outpace cybersecurity as the primary driver of revenue growth at BlackBerry Ltd. over the next five years.
The Waterloo, Ontario-based company, which issues its financial reports in U.S. dollars, forecasts that its revenue, excluding licensing contributions, should reach US$1.2 billion in fiscal 2027 and US$886 million in 2025, respectively, representing a significant increase from the US$655 million it earned in fiscal 2018.
The company expects sales to increase by 13% per year on average over the next five years, as detailed at its annual analyst summit.
With an anticipated growth to US$770 million in five years from US$477 million in fiscal 2022, cybersecurity is anticipated to be the largest component.
Its projected CAGR, though, is only half of the IoT’s predicted 20%. From $178 million in IoT sales in 2016, we anticipate $443 million in sales in 2017. This estimate does not include any potential contributions from BlackBerry IVY.
Additionally, BlackBerry plans to spend roughly 30% of revenue on R&D in 2023, generate positive adjusted earnings per share and cash flow starting in 2025, and continue to grow its adjusted gross margin by at least 100 basis points annually until fiscal 2027.
BlackBerry and Magna International Inc. also announced a partnership on advanced driver assistance (ADAS) solutions on Wednesday.
The auto parts maker will receive QNX software and engineering services from BlackBerry. There was no mention of the deal’s worth.
John Wall, co-head of BlackBerry Technology Solutions, said in a press release, “With software now being a driving force in the automotive industry, delivering compelling solutions that are seamlessly integrated into a vehicle allows OEMs to differentiate themselves.”
The senior vice president of Magna Electronics, Sharath Reddy, said that collaborations like this one help with the speed in bringing the services to market, and that Magna’s ADAS expertise and unique ability to integrate system solutions into various vehicle applications gives them a competitive advantage.
