In BlackBerry's (NYSE: BB) first quarter of fiscal 2020, it served up more growth in its software and services segment. In addition, the security-focused company showed what it can do with its recent acquisition of endpoint security specialist Cylance. This was the first full quarter with Cylance as a part of BlackBerry.
Here's a look at the results.
Image source: Getty Images.
BlackBerry's first-quarter results: The raw numbers
Non-GAAP (adjusted) revenue
Non-GAAP gross margin
(200 basis points)
What happened with BlackBerry this quarter?
- Non-GAAP revenue increased 23% year over year to $267 million.
- GAAP revenue increased 16% year over year to $247 million.
- BlackBerry Cylance contributed $51 million and $32 million in non-GAAP and GAAP revenue, respectively.
- Excluding revenue from Cylance, non-GAAP software and services revenue increased 8% year over year.
- Including Cylance, non-GAAP software and services revenue increased 35% year over year.
- BlackBerry's non-GAAP gross margin narrowed from 76.5% in the first quarter of fiscal 2019 to 74.5%.
- Cash, cash equivalents, and long-term investments at the end of the quarter were $935 million.
What management had to say
CEO John Chen said the company's fiscal first-quarter results represented a "good start" to fiscal 2020.
He added: "We are ahead of our schedule in our Cylance integration, while investing in the right opportunities to drive long-term growth and profitability for BlackBerry. Customers are looking forward to our robust product cycle this year, with over 30 new secure communication products and services to be released."
In a separate press release on Monday, BlackBerry notably said its QNX automotive software solutions are now in more than 150 million cars, up from 120 million in June of last year.
The quarter was solid enough for BlackBerry to reaffirm its fiscal 2020 outlook.
Total fiscal 2020 non-GAAP revenue is expected to grow 23% to 27% year over year, "driven by a double-digit percentage increase in billings," management forecast in BlackBerry's fiscal first-quarter earnings release. Broken down by non-GAAP revenue segments, this includes 12% to 16% growth in the Internet of Things, 25% to 30% growth in BlackBerry Cylance, a 5% decline in licensing, and $10 million to $20 million in service access fees.
More From The Motley Fool
- 10 Best Stocks to Buy Today
- The $16,728 Social Security Bonus You Cannot Afford to Miss
- 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
- What Is an ETF?
- 5 Recession-Proof Stocks
- How to Beat the Market