Ontario-based BlackBerry (NYSE:BB) reported its first quarter results on June 22nd and surpassed estimates.
CEO and Executive Chairman, John Chen, remarked, “We are off to a solid start in fiscal 2019, with 14% year-over-year growth in total software and services revenue driven by strong double-digit billings and an increase in recurring revenue.”
For the quarter, Non-GAAP total software and services revenue hit $193 million, an increase of 14% year-over-year. Recurring software and services revenue hit 86%, which is up from approximately 70% in the fourth quarter of fiscal year 2018.
The company also reported that enterprise software and services business rose 18 percent to $189 million in the first quarter.
A net loss of $60 million, or 11 cents a share is compared to a profit of $671 million, or $1.23 a share in the year ago period. Excluding items, BlackBerry earned earnings per share of 3 cents, ahead of the projection from analysts that the company would break even. Revenue at $213 million was a decrease of 9.4% but was still ahead of the $208 million that analysts were looking for.
BlackBerry has been heavily focused on its QNX platform, making software for next-generation driverless cars.
Chen stated, “I am pleased that BlackBerry QNX software is now embedded in over 120 million automobiles worldwide, doubling the install base in the last three years. We are very excited about the opportunities ahead of us in automobiles and in other EoT verticals.”
It was in early June that the company said that QNX software is now embedded in 120 million cars1 that are on the road today. The press release read, “Automotive OEMs and tier ones use BlackBerry QNX technology in the advanced driver assistance systems, digital instrument clusters, connectivity modules, handsfree systems, and infotainment systems that appear in car brands, including Audi, BMW, Ford, GM, Honda, Hyundai, Jaguar Land Rover, KIA, Maserati, Mercedes-Benz, Porsche, Toyota, and Volkswagen.”
BlackBerry (NYSE:BB) had said its QNX Hypervisor for Safety, QNX Platform for ADAS 2.0, and QNX OS for Safety 2.0 are certified for ISO 26262, which is an auto functional safety standard.
Chen stated, “Three years ago, BlackBerry QNX technology was inside 60 million cars. Today, that figure has doubled as the world’s leading automakers, their tier one suppliers, and chip manufacturers have put their trust in BlackBerry. As cars are increasingly driven by software, our customers and partners rely on BlackBerry QNX technologies to provide them with the safety-certified and secure technology platform on which the future of the automotive industry is being built.”