Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The BlackBerry logo on a office tower in Irvine, California, U.S., Oct. 20, 2020.

MIKE BLAKE/Reuters

BlackBerry Ltd.’s quarterly software-and-services revenues are gradually returning to prepandemic levels as the company doubles down on its efforts to be a key component of the growing market for processing data in sensor-filled cars.

In early December, BlackBerry struck a deal to partner with Amazon.com Inc.’s cloud-services division to co-develop IVY (the Intelligent Vehicle Data Platform), which could help automakers read and process data from vehicle sensors to find ways to improve the driving experience.

If successful, the software could become a significant new revenue stream by building upon BlackBerry’s QNX connected-car operating system. Between the IVY announcement on Dec. 1 and Thursday’s market close, BlackBerry shares jumped nearly 40 per cent.

Story continues below advertisement

Chief executive officer John Chen told analysts on a conference call Thursday evening that the market opportunity for IVY could be “very large,” with the potential to become a platform for a full ecosystem of in-car apps and services. BlackBerry would maintain all of IVY’s customer relationships, he said, but Amazon would share in revenues. “This type of agreement is rare,” he said.

He added that he expects BlackBerry IVY to begin appearing in 2023 vehicle models.

The company’s total revenue fell 18 per cent year-over-year to US$218-million in the quarter that ended in November, it said Thursday. Its loss more than tripled to US$130-million, or 23 US cents a share, driven in part by fair-value adjustments to long-term debt.

But the company touted the fact that its software-and-services revenue, which includes both its cybersecurity and connected-car operating-system business lines, rose for the second quarter in a row after falling in its first quarter of the pandemic. The division brought in US$162-million last quarter, and US$151-million the quarter prior.

The company also reported an adjusted, non-Generally Accepted Accounting Principles profit of 2 US cents a share, beating analyst consensus of 1 US cent. Investors nudged its New York-listed shares up 0.48 per cent to US$8.30 in after-market trading early Thursday evening.

Under Mr. Chen, BlackBerry has shifted from making its namesake smartphones to effectively becoming a data-security company for large organizations, with an additional focus on operating systems for connected cars and industrial clients.

But BlackBerry has spent the past few months working on deals that could reshape the company even more, including the Amazon partnership.

Story continues below advertisement

In November, both The Globe and Mail and IAM, an intellectual-property trade journal, also reported that the company – Canada’s largest patent holder – was looking to sell most of its 38,000 patents, estimated to be worth more than US$450-million.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies