BlackBerry Q1 revenue forecast tops estimates

BlackBerry forecast Q1 revenue of US$132 million to US$140 million after stronger demand in cybersecurity and embedded software, above analysts’ US$129.9 million estimate.

Its US-listed shares rose more than 10% in premarket trading.

The company posted Q4 revenue of US$156 million, beating estimates of US$144.4 million.

QNX, Real-Time Operating System (RTOS) owned by BlackBerry, revenue rose 20% year-on-year to US$78.7 million, while secure communications revenue rose 8% to US$72.5 million.

The company said BlackBerry had completed its turnaround, and CFO Tim Foote said it would invest more in QNX, while CEO John Giamatteo said it would consider small acquisitions.

🔗 Source: Reuters

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BlackBerry’s QNX gets steady lift from long-term programs and wide use in cars

QNX revenue grew 20% as demand rose for its real-time operating system (RTOS), software designed to respond instantly to critical tasks, embedded in more than 275 million vehicles globally 1.
The software powers advanced driver-assistance systems (ADAS), which help with driving and safety tasks, and digital cockpit systems in cars from 24 of the top 25 electric vehicle manufacturers 2.
The QNX business earns per-unit royalties, which brings in revenue for each vehicle shipped with its technology 2.
A royalty backlog of about US$950 million comes from existing design wins, meaning customer selections expected to generate revenue once vehicle production ramps up over two to three years 3.

Automakers are changing how they buy software as QNX moves beyond cars

BlackBerry’s growth tracks a shift as automakers build more software in-house and rely less on traditional suppliers 4.
About 67% of recent QNX design wins came directly from automakers, which marks a change from earlier sales patterns 4.
BlackBerry is applying its automotive safety experience in other regulated industries, which already bring in about 20% of QNX revenue 3.
QNX has won deals for its General Embedded Development Platform, a software foundation for building specialized devices, in industrial automation controls and medical instruments. Johnson & Johnson plans to use QNX OS for Safety to run an AI-driven heart pump 3.