BlackBerry up 10% after FQ4 beats, signs of auto recovery (NYSE:BB)

BlackBerry (NYSE:BB) jumps 10.4% pre-market after fiscal Q2 results that beat on the top and bottom line, which included sequential revenue growth partially due to the auto market recovery.

Total adjusted revenue was up 2% Y/Y to $266M. Software and Services sales dropped 38% to $158M.

Recurring software product revenue held steady at about 90%.

Gross margin was 76.8%, compared to the 72.1% in last year’s quarter.

Net cash from operating activities totaled $31M. Cash and equivalents were up 82% Y/Y to $837M.

“We are pleased to report sequential and year-over-year revenue growth this quarter, exceeding expectations, despite the ongoing challenges from COVID-19. Continued demand for our secure, ‘Work from Anywhere’, solutions remains a major driver for our BlackBerry Spark business, which performed well this quarter.  Some signs of recovery in auto production point to sequential revenue growth and a return to a normal run rate for QNX by early next year.  Continued QNX design wins and significant cybersecurity partnerships position the business strongly for the future,” says CEO John Chen.

Guidance will come on the earnings call at 8 AM with a webcast here.

Press release.

Previously: BlackBerry EPS beats by $0.09, beats on revenue (Sep. 24 2020)

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