BlackBerry forecasting annual revenues nearly doubling in five years
WATERLOO, ONTARIO — BlackBerry Ltd. is forecasting that revenues will nearly double over the next five years with growth from internet of things (IoT) outpacing cybersecurity.
The Waterloo, Ont.-based company, which reports in U.S. dollars, says it expects revenues excluding contributions from licensing should reach US$1.2 billion in fiscal 2027 and US$886 million in 2025, up from US$655 million last year.
The projected revenues outlined during its annual analyst summit represent a 13 per cent compounded annual growth rate over five years.
Cybersecurity is expected to be the largest component, increasing to US$770 million in five years from US$477 million in fiscal 2022.
However, its compounded annual growth is forecast to be half of the 20 per cent CAGR for IoT. IoT revenues, excluding potential contributions from BlackBerry IVY, are expected to reach US$443 million, from US$178 million last year.
BlackBerry is also targeting an average increase of at least 100 basis points in adjusted (non-GAAP) gross margin annually to fiscal 2027, investing about 30 per cent of revenue on research and development in 2023, and generating positive adjusted earnings per share and cashflow beginning in 2025.
This report by The Canadian Press was first published May 18, 2022.
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Provided Content: Content provided by Canadian Press. The Globe and Mail was not involved, and material was not reviewed prior to publication.
