BlackBerry Ltd (NYSE: BB) released its Q4 2018 earnings results before opening bell this morning. On a non-GAAP basis, BlackBerry earnings amounted to 5 cents per share on $233 million in GAAP revenue or $239 million in non-GAAP revenue. Analysts had been looking for adjusted earnings of 1 cent per share on $196.2 million in GAAP revenue. In the year-ago quarter, BlackBerry earnings amounted to on $226 million in revenue.
Image source: BlackBerry (screenshot from video via YouTube)
BlackBerry earnings results for Q4 F2018
On a GAAP basis, BlackBerry posted losses of 6 cents per share, but that’s an improvement from the 10 cents per share the Canadian firm reported last year. The company took a restructuring charge of $28 million during the quarter and recorded a $34 million positive adjustment on the fair value of its debentures. BlackBerry had about $2.4 billion in cash and cash equivalents at the end of Q4.
Software and services revenue soared to a new record high of $212 million on a GAAP basis or $218 million on a non-GAAP basis. BlackBerry said about 70% of the Q4 F2018 software and services revenue was recurring, excluding professional services and IP licensing. The company also set a new record for gross margin, which soared to 79% on a non-GAAP basis and 76% on a GAAP basis.
The company took about 3,500 orders from enterprise customers during the quarter and won several contracts for QNX design and partnerships, including with NVIDIA and Baidu. BlackBerry also launched its software-as-a-service tool Jarvis, which targets the automotive industry, and expanded its partnership for Radar with Fleet Complete’s BigRoad Freight Program, which provides support for more than 500,000 truck drivers.
“Customers and partners recognize our technology innovation and market leadership,” Executive Chairman and Chief Executive John Chen said in a statement on the BlackBerry earnings results. “BlackBerry’s market opportunities in unified endpoint management and embedded software are significant and synergistic, and our innovation and execution give us confidence to be a leader in the Enterprise of Things.”