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BlackBerry's Software Gains Prominence in the Auto Industry

Zacks Equity Research
·3 min read

Yesterday, BlackBerry Limited BB stated that its flagship QNX software is currently deployed in more than 175 million vehicles around the world. The feat marks an increase of 25 million cars since the Waterloo, Canada-based company reported its automotive footprint in June 2019. The cybersecurity software and services company continues to invest in product development and go-to-market strategy to drive long-term sustainable growth.

BlackBerry is positioned to benefit from a surge in the business, while providing one of the most secure mobile enterprise solutions in the market. Its QNX technology includes QNX Neutrino OS, QNX Platform for ADAS, QNX OS for Safety, QNX CAR Platform for Infotainment, QNX Platform for Digital Cockpits, QNX Hypervisor 2.0 and QNX acoustics middleware. Leading automakers, including Toyota TM, General Motors GM and Honda HMC, use the QNX software in their advanced driver assistance, digital instrument clusters, connectivity modules, handsfree and infotainment systems.

BlackBerry engaged with Strategy Analytics, a research and industry analyst firm, to verify the volume of QNX deployments based on the number of QNX products that are shipped in the automotive market as well as the number of cars that contain QNX products and technology. It’s worth noting that majority of QNX software products that are used in automotive ECUs are licensed on a per-unit royalty basis. BlackBerry aims to maintain its leadership within the industry as the premier software platform provider for connected and autonomous vehicles.

Moreover, as a leading player in enterprise mobility management, BlackBerry is widely recognized for its productivity and security innovations. The company offers one of the most secure mobile enterprise solutions in the market through a broad portfolio of products and services. It offers an end-to-end software and services platform for the Enterprise of Things.

With a holistic growth model, focusing both on organic and inorganic initiatives, BlackBerry aims to expand its share in the enterprise mobility market. The company’s Cylance products, including CylanceGUARD, are helping customers combat cybersecurity and privacy risks as the number of BYOD endpoints increases in a remote working environment.

It is to be seen to what extent has the COVID-19 pandemic, which led to the slowdown in the auto industry supply chain, impacted BlackBerry’s top line in first-quarter fiscal 2021. The company will report results today, after the closing bell.

BlackBerry has a long-term earnings growth expectation of 51.8% compared with 17.2% of the industry. The stock has returned 35.6% compared with the industry’s growth of 3.3% in the past three months.

BlackBerry currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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