BlackBerry (NYSE: BB), a provider of security-focused software and services for enterprises, just wrapped up its fiscal 2019 with strong fourth-quarter results. The quarter helped the company meet all of its financial targets for the year, including 10% software and services revenue growth, significantly higher earnings per share, and $83 million in free cash flow.
Here's a look at BlackBerry's fiscal fourth-quarter results, which were released Friday morning.
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BlackBerry's fourth-quarter results: The raw numbers
Non-GAAP gross margin
Fiscal years shown. Data source: BlackBerry's fiscal fourth-quarter results.
What happened with BlackBerry this quarter?
- BlackBerry's non-GAAP revenue rose 8% year over year to $257 million.
- GAAP revenue increased 9% year over year.
- Highlighting the company's momentum in software and services, non-GAAP software and services revenue hit a record high of $248 million, up 14% year over year.
- BlackBerry's non-GAAP earnings per share increased from $0.05 in the year-ago quarter to $0.11.
- Helping BlackBerry's profitability was a non-GAAP gross margin of 82%, up from 79% in the year-ago quarter.
- Free cash flow generated during the quarter amounted to $20 million.
- BlackBerry's net cash balance at the end of the period was $400 million.
What management had to say
BlackBerry CEO John Chen was pleased with the quarter, noting that results were driven by record-high software and services revenue.
During the company's earnings call, Chen also highlighted the company's recent acquisition of Cylance as a notable achievement.
Finally, we completed our acquisition of Cylance. Cylance is a next-generation endpoint security technology which participates in the fast-growing market, and they provide technologies that are shaping the future direction of cybersecurity. The AI and machine learning capabilities we added are synergistic with our long-term vision for BlackBerry Spark, our integrated secure communication platform for the IoT.
Management is optimistic about fiscal 2020, guiding for full-year revenue to rise 23% to 27% year over year.
The company also provided an outlook for its recently acquired Cylance business, forecasting BlackBerry Cylance to grow revenue 25% to 30% year over year compared to the 12-month period ending February 28, 2019. This growth is on a base of about $170 million, management said.
In fiscal 2010, BlackBerry expects to be able to invest aggressively while simultaneously being profitable. "[W]e are investing for current and future growth," explained Chen during the company's earnings call, "Though we are investing, we still anticipate being profitable on a full-year basis, even with the diluted impact of the Cylance acquisition."
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