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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

December 19, 2024
Date of Report (date of earliest event reported)

BlackBerry Limited
(Exact name of registrant as specified in its charter)
Canada
001-38232
98-0164408
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
2200 University Ave East
Waterloo
Ontario
Canada
N2K 0A7
(Address of Principal Executive Offices)
(Zip Code)
(519) 888-7465
Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common SharesBBNew York Stock Exchange
Common SharesBBToronto Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 2.02 Results of Operations and Financial Condition
On December 19, 2024, BlackBerry Limited (“BlackBerry”) issued a press release announcing its financial results for the quarter ended November 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information contained in this Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
BlackBerry Limited
 
 
Date:		 December 19, 2024  
By: 		/s/ Tim Foote
 Name: Tim Foote
Title:Chief Financial Officer



Exhibit 99.1
bluelogoa07a.jpg
December 19, 2024
FOR IMMEDIATE RELEASE

BlackBerry Reports Third Quarter Fiscal Year 2025 Results
•Beats top end of revenue guidance range for both Cybersecurity1 and IoT divisions; raises bottom end of full-year guidance range for IoT
•Delivers positive adjusted EBITDA1 and adjusted EPS1 above guidance range; GAAP basic EPS improves both sequentially and year-over-year
•Achieves milestone of positive operating and free cash flow ahead of schedule

Waterloo, Ontario - BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended November 30, 2024 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

“BlackBerry achieved a significant inflection in its results this past quarter. Driven by a combination of strong revenue performance for both our Cybersecurity and IoT divisions, and continued focus on costs and efficiency, the Company delivered stronger than expected profitability and a return to positive cash flow ahead of schedule,” said John J. Giamatteo, CEO, BlackBerry. “The announcement of a definitive agreement for the sale of Cylance to Arctic Wolf is a further transformational step for the Company, placing BlackBerry on a path to accelerating profitability post-close.”

Third Quarter Fiscal 2025 Financial Highlights
•Total company revenue1 was $162 million.
•Total company gross margin1 and non-GAAP gross margin1 was 74%.
•IoT revenue grew 13% sequentially and exceeded previously-provided guidance at $62 million; IoT gross margin increased by 3 percentage points from the prior quarter to 85%.
•IoT adjusted EBITDA increased 38% sequentially to $18 million.
•Cybersecurity revenue1 grew 7% sequentially and exceeded previously-provided guidance at $93 million; Cybersecurity gross margin1 increased by 12 percentage points sequentially to 67%.
•Cybersecurity ARR1 increased by 1% sequentially to $281 million; Cybersecurity DBNRR1 increased by 2 percentage points sequentially, increasing for the fifth consecutive quarter, to 90%.
•Cybersecurity1 adjusted EBITDA increased $14 million sequentially to $8 million.
•Licensing revenue exceeded guidance at $7 million, and Licensing adjusted EBITDA was $6 million.
•Non-GAAP net income was $12 million and GAAP net loss was $11 million.
•Non-GAAP basic earnings per share increased by $0.02 sequentially to $0.02, beating the previously-provided guidance. GAAP basic loss per share improved by $0.01 sequentially to $0.02.
•Total company adjusted EBITDA1 exceeded previously-provided guidance at $23 million.


•Total cash, cash equivalents, short-term and long-term investments increased by $1 million sequentially to $266 million; Operating cash flow beat expectations and improved by $34 million year-over-year to $3 million.
1 Includes discontinued operations from Cylance business, reclassified as held for sale as at November 30, 2024.

Business Highlights & Strategic Announcements
•BlackBerry and Arctic Wolf announce that they have entered into a definitive agreement for Arctic Wolf to acquire BlackBerry’s Cylance® endpoint security assets
•BlackBerry announces that QNX® embedded technology powers more than 255 million vehicles
•Hyundai Mobis selects BlackBerry QNX to power its next-generation digital cockpit platform
•BlackBerry QNX introduces software-defined functional safety platform in collaboration with Intel for industrial automation
•BlackBerry® AtHoc® is "in process" for achieving FedRAMP high authorization. Once confirmed, AtHoc will be the first critical events management solution to be authorized to secure the US government’s most sensitive, unclassified data
•BlackBerry welcomes the Government of Canada's investment in the Malaysia Cybersecurity Center of Excellence to enhance cyber resilience in Southeast Asia
•BlackBerry appointed Lisa Bahash, an automotive OEM and Tier 1 supplier veteran, to its Board of Directors

Financial Outlook
BlackBerry is providing the following guidance for the fourth quarter and the full fiscal year 2025 (ending February 28, 2025). As the sale of the Company’s Cylance business is expected to close during the fourth quarter of 2024, that business is reported this quarter as discontinued operations, and the following guidance, except for non-GAAP basic EPS, is reflective solely of the expected results of the Company’s continuing operations.

Q4 FY25Full fiscal year FY25
Total BlackBerry revenue:
$126 – $135 million$517 – $526 million
IoT revenue:
$60 – $65 million$230 – $235 million
Secure Communications revenue:$62 – $66 million$267 – $271 million
Licensing revenue:Approximately $4 millionApproximately $20 million
IoT segment EBITDA:$8 - $10 million$48 - $50 million
Secure Communications segment EBITDA$4 - $6 million$43 - $45 million
Licensing segment EBITDAApproximately $3 millionApproximately $16 million
Total Company adjusted EBITDA$10 – $20 million$60 - $70 million
Non-GAAP basic EPS:($0.01) – +$0.01($0.02) – Breakeven

Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the
Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected
Non-GAAP basic EPS for the fourth quarter and full fiscal year 2025 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release.



Conference Call and Webcast
A conference call and live webcast will be held today beginning at 5:30 p.m. ET, which can be accessed using the following link (here) or through the Company’s investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (844) 763-8275 and entering Elite Entry Number 51677.

A replay of the conference call will be available at approximately 8:30 p.m. ET today, using the same webcast link
(here ) or by dialing toll free +1 (877) 481-4010 and entering Replay Access Code 51677.

About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company’s high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management. The company is also a pioneer in leveraging Artificial Intelligence and Machine Learning to deliver advanced cybersecurity solutions to its customers.

BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow @BlackBerry.

Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com

Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com

###

This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry’s plans, strategies and objectives and BlackBerry’s expectations regarding the anticipated completion, timing and impacts of the proposed transaction between BlackBerry and Arctic Wolf.

The words “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “could”, “intend”, “believe”, “target”, “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry’s expectations regarding its business, financial performance, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, and competition. Many factors could cause BlackBerry’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: uncertainty associated with BlackBerry’s ability to complete the proposed transaction with Arctic Wolf on the proposed terms or on the anticipated timeline, or at all, and the ability to realize the expected benefits of the proposed transaction; BlackBerry’s ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; BlackBerry’s sales cycles and the time and expense of its sales efforts; the intense competition faced by BlackBerry; BlackBerry’s ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; the occurrence or perception of a breach of BlackBerry’s network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; potential impacts of BlackBerry’s ongoing cost reduction initiatives; BlackBerry’s continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; risks arising from a failure or perceived failure of BlackBerry’s solutions to


detect or prevent security vulnerabilities; BlackBerry’s dependence on its relationships with resellers and channel partners; litigation against BlackBerry; adverse macroeconomic and geopolitical conditions; network disruptions or other business interruptions; BlackBerry’s ability to foster an ecosystem of third-party application developers; BlackBerry’s products and services being dependent upon interoperability with rapidly changing systems provided by third parties; failure to protect BlackBerry’s intellectual property and to earn expected revenues from intellectual property rights; BlackBerry’s ability to obtain rights to use third-party software and its use of open source software; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry’s indebtedness, which could impact its operating flexibility and financial condition; the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry’s products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry’s suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry’s quarterly revenue and operating results; and the volatility of the market price of BlackBerry’s common shares.

These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry’s Annual Report on Form 10-K and the “Cautionary Note Regarding Forward-Looking Statements” section of BlackBerry’s MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry’s forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry’s shareholders to view the anticipated performance and prospects of BlackBerry from management’s perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry’s financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry’s business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.


###


BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts) (unaudited)

Consolidated Statements of Operations
 Three Months EndedNine Months Ended
 November 30, 2024August 31, 2024November 30, 2023November 30, 2024November 30, 2023
Revenue$143 $125 $152 $391 $606 
Cost of sales31 38 33 102 239 
Gross margin112 87 119 289 367 
Gross margin %78.3 %69.6 %78.3 %73.9 %60.6 %
Operating expenses
Research and development27 28 29 85 98 
Sales and marketing23 22 25 68 77 
General and administrative38 30 45 111 133 
Amortization4 5 6 14 22 
Impairment of long-lived assets1 — 9 4 9 
Prior Debentures fair value adjustment— — (13)— 3 
 93 85 101 282 342 
Operating income19 2 18 7 25 
Investment income, net— 3 5 8 15 
Income before income taxes19 5 23 15 40 
Provision for income taxes7 1 15 16 20 
Income (loss) from continuing operations12 4 8 (1)20 
Loss from discontinued operations, net of tax(23)(23)(29)(71)(94)
Net loss$(11)$(19)$(21)$(72)$(74)
Earnings (loss) per share
Basic earnings per share from continuing operations$0.02 $0.01 $0.01 $— $0.03 
Total basic loss per share$(0.02)$(0.03)$(0.04)$(0.12)$(0.13)
Diluted earnings (loss) per share from continuing operations$0.02 $0.01 $(0.01)$— $0.03 
Total diluted loss per share$(0.02)$(0.03)$(0.05)$(0.12)$(0.13)
Weighted-average number of common shares outstanding (000s)
Basic591,240 590,549 584,331 590,537 583,559 
Diluted593,530 591,610 638,470 590,537 590,013 
Total common shares outstanding (000s)591,583 590,728 585,340 591,583 585,340 



BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)

Consolidated Balance Sheets
As at
November 30, 2024February 29, 2024
Assets  
Current  
Cash and cash equivalents$189 $175 
Short-term investments31 62 
Accounts receivable, net of allowance of $6 and $6, respectively161 179 
Other receivables6 19 
Income taxes receivable 5 4 
Other current assets39 32 
Assets held for sale, current24 37 
455 508 
Restricted cash and cash equivalents11 25 
Long-term investments35 36 
Other long-term assets73 54 
Operating lease right-of-use assets, net21 22 
Property, plant and equipment, net14 19 
Intangible assets, net51 58 
Goodwill473 475 
Assets held for sale, non-current176 198 
 $1,309 $1,395 
Liabilities 
Current 
Accounts payable $9 $16 
Accrued liabilities97 100 
Income taxes payable33 28 
Deferred revenue, current133 148 
Liabilities held for sale, current60 64 
 332 356 
Deferred revenue, non-current10 15 
Operating lease liabilities19 19 
Other long-term liabilities1 3 
Long-term notes195 194 
Liabilities held for sale, non-current27 32 
 584 619 
Shareholders’ equity
Capital stock and additional paid-in capital2,972 2,948 
Deficit(2,230)(2,158)
Accumulated other comprehensive loss(17)(14)
 725 776 
 $1,309 $1,395 



BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Statements of Cash Flows
 Nine Months Ended
  November 30, 2024November 30, 2023
Cash flows from operating activities
Net loss$(72)$(74)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization39 46 
Stock-based compensation21 28 
Impairment of long-lived assets4 11 
Intellectual property disposed of by sale— 147 
Prior Debentures fair value adjustment— 3 
Operating leases(8)(7)
Other— — 
Net changes in working capital items
Accounts receivable, net of allowance27 (63)
Other receivables13 4 
Income taxes receivable(1)(2)
Other assets(22)(58)
Accounts payable(7)(7)
Accrued liabilities5 (16)
Income taxes payable5 13 
Deferred revenue(29)(13)
Net cash provided by (used in) operating activities(25)12 
Cash flows from investing activities
Acquisition of long-term investments— (2)
Acquisition of property, plant and equipment(3)(5)
Acquisition of intangible assets(6)(12)
Acquisition of short-term investments(92)(92)
Proceeds on sale or maturity of short-term investments123 223 
Net cash provided by investing activities22 112 
Cash flows from financing activities
Issuance of common shares3 4 
Maturity of 2020 Debentures— (365)
Issuance of Extension Debentures— 150 
Net cash provided by financing activities3 (211)
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period— (87)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period200 322 
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period$200 $235 
As atNovember 30, 2024February 29, 2024
Cash and cash equivalents$189 $175 
Restricted cash and cash equivalents11 25 
Short-term investments31 62 
Long-term investments35 36 
$266 $298 


Reconciliations of the Company’s Segment Results to the Consolidated Results
The following tables show information by operating segment for the three months November 30, 2024 and November 30, 2023. The Company reports segment information in accordance with U.S. GAAP ASC Section 280 based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance of the Company’s reportable operating segments. During the third quarter of fiscal 2025, the CODM changed the measure of profit or loss used under the “management” approach in reviewing the results of the Company’s operating segments from segment gross margin to segment EBITDA. Prior period comparatives have been recast to reflect the change in metric along with the significant categories of operating expenses included within this metric, and the change in presentation relating to facilities reclassed as disclosed in Note 1 to the Consolidated Financial Statements. See Note 11 to the Consolidated Financial Statements for a description of the Company’s operating segments.
 
For the Three Months Ended
(in millions) (unaudited)
Secure CommunicationsIoTLicensingSegment Totals
November 30,ChangeNovember 30,ChangeNovember 30,ChangeNovember 30,Change
20242023202420232024202320242023
Segment revenue$74 $91 $(17)$62 $55 $7 $7 $6 $1 $143 $152 $(9)
Segment cost of sales20 23 (3)9 8 1 2 1 1 31 32 (1)
Segment gross margin$54 $68 $(14)$53 $47 $6 $5 $5 $— $112 $120 $(8)
Segment research and development11 12 (1)16 15 1 — — — 27 27 — 
Segment sales and marketing12 15 (3)11 10 1 — — — 23 25 (2)
Segment general and administrative10 9 1 9 10 (1)1 6 (5)20 25 (5)
Less amortization included in the above1 1 — 1 — 1 2 3 (1)4 4 — 
Segment EBITDA$22 $33 $(11)$18 $12 $6 $6 $2 $4 $46 $47 $(1)
The following tables reconcile the Company’s segment gross margin results for the three months ended November 30, 2024 and November 30, 2023 to consolidated U.S. GAAP results:
 For the Three Months Ended November 30, 2024
(in millions) (unaudited)
Secure CommunicationsIoTLicensingSegment TotalsReconciling ItemsConsolidated U.S. GAAP
Revenue$74$62$7$143 $— $143 
Cost of sales209231 — 31 
Gross margin (1)
$54$53$5$112 $— $112 
Operating expenses93 93 
Investment income, net— — 
Income before income taxes$19 
 For the Three Months Ended November 30, 2023
(in millions) (unaudited)
Secure CommunicationsIoTLicensingSegment TotalsReconciling ItemsConsolidated U.S. GAAP
Revenue$91 $55 $6 $152 $— $152 
Cost of sales 23 8 1 32 1 33 
Gross margin (1)
$68 $47 $5 $120 $(1)$119 
Operating expenses101 101 
Investment income, net5 5 
Income before income taxes$23 


______________________________
(1) See “Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures” for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended November 30, 2024 and November 30, 2023.
The following tables reconcile the Company’s segment EBITDA results for the three months ended November 30, 2024 and November 30, 2023 to consolidated U.S. GAAP results:
 For the Three Months Ended
(in millions) (unaudited)
November 30, 2024November 30, 2023
Total Segment EBITDA$46 $47 
Adjustments (1):
Stock compensation expense4 7 
Restructuring expenses7 9 
Less
Corporate general and administrative expense9 10 
Amortization6 7 
Impairment of long-lived assets1 9 
Prior Debentures fair value adjustment— (13)
Investment income— (5)
Consolidated income from continuing operations before income taxes$19 $23 
______________________________
(1) See “Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures” for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended November 30, 2024 and November 30, 2023.


Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures
In the Company’s internal reports, management evaluates the performance of the Company’s business on a non-GAAP basis by excluding the impact of certain items below from the Company’s U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company’s financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company’s operating results and underlying operational trends.
Readers are cautioned that revenue from continuing and discontinued operation, Cybersecurity revenue from continuing and discontinued operations, adjusted gross margin, adjusted gross margin percentage, Cybersecurity gross margin from continuing and discontinued operations, adjusted gross margin from continuing and discontinued operations, adjusted gross margin percentage from continuing and discontinued operations, adjusted operating expense, adjusted operating expense from continuing and discontinued operations, adjusted net income (loss), adjusted earnings (loss) per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income (loss), adjusted EBITDA from continuing and discontinued operations, adjusted Cybersecurity EBITDA from continuing and discontinued operations and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures should be considered in the context of the U.S. GAAP results.
Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended November 30, 2024 and November 30, 2023
A reconciliation of the most directly comparable U.S. GAAP financial measures for the three months ended November 30, 2024 and November 30, 2023 to adjusted financial measures is reflected in the table below:



For the Three Months Ended (in millions)November 30, 2024November 30, 2023
Revenue$143 $152 
Cylance revenue19 23 
Revenue from continuing and discontinued operations$162 $175 
Secure Communication revenue$74 $91 
Cylance revenue19 23 
Cybersecurity revenue from continuing and discontinued operations$93 $114 
Gross margin$112 $119 
Stock compensation expense— 1 
Adjusted gross margin$112 $120 
Gross margin % 78.3 %78.3 %
Stock compensation expense— %0.6 %
Adjusted gross margin % 78.3 %78.9 %
Secure Communication gross margin$54 $68 
Cylance gross margin8 10 
Cybersecurity gross margin from continuing and discontinued operations $62 $78 
Gross margin$112 $119 
Cylance gross margin8 10 
Stock compensation expense— 1 
Adjusted gross margin from continuing and discontinued operations$120 $130 
Gross margin %78.3 %78.3 %
Cylance gross margin(4.2)%(4.6)%
Stock compensation expense— %0.6 %
Adjusted gross margin % from continuing and discontinued operations74.1 %74.3 %


Reconciliation of U.S. GAAP operating expense for the three months ended November 30, 2024, and November 30, 2023 to adjusted operating expense and adjusted operating expense from continuing and discontinued operations is reflected in the table below:
For the Three Months Ended (in millions)November 30, 2024November 30, 2023
Operating expense$93 $101 
Restructuring charges7 9 
Stock compensation expense4 6 
Prior Debentures fair value adjustment
— (13)
Acquired intangibles amortization2 2 
LLA impairment charge1 9 
Adjusted operating expense$79 $88 
For the Three Months Ended (in millions)November 30, 2024November 30, 2023
Operating expense$93 $101 
Add:
Cylance operating expenses31 39 
Less:
Restructuring charges7 9 
Stock compensation expense4 6 
Prior Debentures fair value adjustment— (13)
Acquired intangibles amortization2 2 
LLA impairment charge1 9 
Cylance stock compensation expense2 1 
Cylance acquired intangible amortization7 7 
Cylance LLA impairment charge— 2 
Adjusted operating expense from continuing and discontinued operations$101 $117 
Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss per share for the three months ended November 30, 2024 and November 30, 2023 to adjusted net income and adjusted basic earnings per share is reflected in the table below:
For the Three Months Ended (in millions, except per share amounts)November 30, 2024November 30, 2023
Basic earnings (loss)
per share		Basic earnings (loss)
per share
Net loss$(11)$(0.02)$(21)$(0.04)
Restructuring charges7 9 
Stock compensation expense6 8 
Prior Debentures fair value adjustment— (13)
Acquired intangibles amortization9 9 
LLA impairment charge1 11 
Adjusted net income$12 $0.02$3 $0.01






Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended November 30, 2024 and November 30, 2023 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:
For the Three Months Ended (in millions)November 30, 2024November 30, 2023
Research and development$27 $29 
Stock compensation expense1 2 
Adjusted research and development expense$26 $27 
Sales and marketing$23 $25 
Stock compensation expense1 — 
Adjusted sales and marketing expense$22 $25 
General and administrative$38 $45 
Restructuring charges7 9 
Stock compensation expense2 4 
Adjusted general and administrative expense$29 $32 
Amortization$4 $6 
Acquired intangibles amortization2 2 
Adjusted amortization expense$2 $4 


Adjusted EBITDA from continuing and discontinued operation, and adjusted Cybersecurity EBITDA from continuing and discontinued operations for the three months ended November 30, 2024 and November 30, 2023 are reflected in the table below. These are non-GAAP financial measures and non-GAAP ratios that do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies..
For the Three Months Ended (in millions)November 30, 2024November 30, 2023
Net loss$(11)$(21)
Non-GAAP adjustments to net loss
Restructuring charges7 9 
Stock compensation expense6 8 
Prior Debentures fair value adjustment
— (13)
Acquired intangibles amortization9 9 
LLA impairment charge1 11 
Total non-GAAP adjustments to net loss23 24 
Amortization13 14 
Acquired intangibles amortization(9)(9)
Investment income, net— (5)
Provision for income taxes7 15 
Adjusted EBITDA from continuing and discontinued operation$23 $18 
For the Three Months Ended (in millions)November 30, 2024November 30, 2023
Net loss$(11)$(21)
Non-GAAP adjustments to net loss
Restructuring charges79
Stock compensation expense68
Prior Debentures fair value adjustment
—(13)
Acquired intangibles amortization99
LLA impairment charge111
Total non-GAAP adjustments to net loss23 24 
Amortization1314
Acquired intangibles amortization(9)(9)
Investment income, net—(5)
Provision for income taxes715
Less:
IoT Segment EBITDA1812
Licensing Segment EBITDA62
Corporate general and administrative expense(9)(10)
Adjusted Cybersecurity EBITDA from continuing and discontinued operation$8 $14 




Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the nine months ended November 30, 2024 and November 30, 2023
A reconciliation of the most directly comparable U.S. GAAP financial measures for the nine months ended November 30, 2024 and November 30, 2023 to adjusted financial measures is reflected in the table below:
For the Nine Months Ended (in millions)November 30, 2024November 30, 2023
Gross margin$289 $367 
Stock compensation expense2 3 
Adjusted gross margin$291 $370 
Gross margin % 73.9 %60.6 %
Stock compensation expense0.5 %0.5 %
Adjusted gross margin % 74.4 %61.1 %
Reconciliation of U.S. GAAP operating expense for the nine months ended November 30, 2024 and November 30, 2023 to adjusted operating expense is reflected in the table below:
For the Nine Months Ended (in millions)November 30, 2024November 30, 2023
Operating expense$282 $342 
Restructuring charges 16 17 
Stock compensation expense14 22 
Prior Debentures fair value adjustment — 3 
Acquired intangibles amortization6 9 
LLA impairment charge4 9 
Adjusted operating expense$242 $282 
Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss per share for the nine months ended November 30, 2024 and November 30, 2023 to the adjusted net income (loss) and adjusted basic earnings (loss) per share is reflected in the table below:
For the Nine Months Ended (in millions, except per share amounts)November 30, 2024November 30, 2023
Basic loss per shareBasic earnings (loss) per share
Net loss$(72)$(0.12)$(74)$(0.13)
Restructuring charges 16 17 
Stock compensation expense21 28 
Prior Debentures fair value adjustment— 3 
Acquired intangibles amortization26 29 
LLA impairment charge4 11 
Adjusted net income (loss)$(5)$(0.01)$14 $0.02


Reconciliation of U.S GAAP research and development, sales and marketing, general and administrative, and amortization expense for the nine months ended November 30, 2024 and November 30, 2023 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:
For the Nine Months Ended (in millions)November 30, 2024November 30, 2023
Research and development$85 $98 
Stock compensation expense4 6 
Adjusted research and development expense$81 $92 
Sales and marketing$68 $77 
Stock compensation expense2 2 
Adjusted sales and marketing expense$66 $75 
General and administrative$111 $133 
Restructuring charges16 17 
Stock compensation expense8 14 
Adjusted general and administrative expense$87 $102 
Amortization$14 $22 
Acquired intangibles amortization6 9 
Adjusted amortization expense$8 $13 
Adjusted EBITDA from continuing and discontinued operations for the nine months ended November 30, 2024 and November 30, 2023 are reflected in the table below. These are non-GAAP financial measures and non-GAAP ratios that do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.
For the Nine Months Ended (in millions)November 30, 2024November 30, 2023
Net loss$(72)$(74)
Non-GAAP adjustments to operating loss
Restructuring charges16 17 
Stock compensation expense21 28 
Prior Debentures fair value adjustment
— 3 
Acquired intangibles amortization26 29 
LLA impairment charge4 11 
Total non-GAAP adjustments to net loss67 88 
Amortization39 46 
Acquired intangibles amortization(26)(29)
Investment income, net(8)(15)
Provision for income taxes16 20 
Adjusted EBITDA from continuing and discontinued operation$16 $36 




The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company’s capital requirements and provides an additional means to reflect the cash flow trends in the Company’s business.
Reconciliation of U.S. GAAP net cash used in operating activities for the three months ended November 30, 2024 and November 30, 2023 to free cash flow (usage) is reflected in the table below:
For the Three Months Ended (in millions)November 30, 2024November 30, 2023
Net cash provided by (used in) operating activities$3 $(31)
Acquisition of property, plant and equipment— (2)
Free cash flow (usage)$3 $(33)
Key Metrics
The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company’s current performance and estimated future performance. Readers are cautioned that annual recurring revenue (“ARR”), dollar-based net retention rate (“DBNRR”), and recurring revenue percentage do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies. Each of Cybersecurity ARR and DBNRR includes both continuing operations and discontinued operations.
For the Three Months Ended (in millions)November 30, 2024
Cybersecurity Annual Recurring Revenue$281 
Secure Communications Annual Recurring Revenue$215 
Cybersecurity Dollar-Based Net Retention Rate90 %
Secure Communications Dollar-Based Net Retention Rate95 %
Recurring Software Product Revenue Percentage80 %



v3.24.4
Cover
Dec. 19, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Dec. 19, 2024
Entity Registrant Name BlackBerry Limited
Entity Incorporation, State or Country Code Z4
Entity File Number 001-38232
Entity Tax Identification Number 98-0164408
Entity Address, Address Line One 2200 University Ave East
Entity Address, City or Town Waterloo
Entity Address, State or Province ON
Entity Address, Country CA
Entity Address, Postal Zip Code N2K 0A7
City Area Code 519
Local Phone Number 888-7465
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001070235
Amendment Flag false
Title of 12(g) Security Common Shares
Trading Symbol BB
Security Exchange Name NYSE
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