BlackBerry announced today their year-end and Q4 fiscal year 2015 earnings report. Despite a decline in device sales, BlackBerry finally made it out of the red and into the black.
BlackBerry has finally achieved profitability and positive cash flow, as well as a $3.27 billion in cash reserves and equivalents at the end of FY16.
Software side of BlackBerry made up 10% of the overall quarterly profits, with $67 million (a 24% increase over the previous quarter).
This was helped by garnering 2,200 new customers, which includes:
- Delta Airlines
- First Great Western trains
- Dignity Health
- Tarpon Energy Services
- The Government of Canada
- Social Services Administration of Colombia
- Australian Transport Safety Bureau
- Essar Group (one of the largest conglomerates in India)
- Sonora Quest Labs
- Kyocera Mita
- IMS Health
Additionally, BlackBerry had customer wins from SAIC, HSBC, Citizens Property Insurance, ERGO Insurance Group, Credito Familiar and the United States Government’s Internal Revenue Service.
BlackBerry has listed these six other signs of momentum on their Inside BlackBerry blog post:
- Interest in BBM’s enterprise offerings. For instance, 400 customers are trying our new BBM Meetings mobile collaboration app, including many carriers, said Chen (note: we just released the Microsoft Outlook plug-in for BBM Meetings). As for BBM Protected, the secure, encrypted version of our popular mobile messaging app, the United States Government’s IRS is a new paying customer, said Chen.
- Customer interest in our other enterprise solutions. They include WorkLife, our solution to give enterprises a ‘soft SIM’ card to ease their financial management of employees’ BYOD phones, as well as thejust-launched BlackBerry IoT Platform in medical and logistics industries. This builds upon our foundation in the automotive industry, where our closely-related QNX platform is the longtime market leader and has just been used in its 50-millionth car infotainment system.
- The growth of BBM as a mobile commerce and advertising platform. BBM, which recently hit 100 million installations via the Google Play (Android) store, is already handling 20 billion ad requests per month, said Chen. We have also launched digital goods such as custom PINs (see a good summary of all our activity here).
- More and more telecom carriers and other partners are selling our software to their enterprise customers. According to Chen, BlackBerry added 300 reseller partners in Q4 alone. For instance, bothChina Mobile Hong Kong and 3 Hong Kong (the mobile arm of Hutchison Telecommunications) are offering Enhanced SIM-Based Licensing (ESBL) from BlackBerry. This makes it very easy for enterprise customers to get the cost of BES12, our cross-platform enterprise mobility management (EMM) platform, integrated into their monthly subscribers’ bills. This eliminates the process of migrating licenses, consolidates their operational costs into a single invoice, and other things that big organization CFOs value.
- Increasing our investments in our vaunted security. These include building up our already top-notch security team, including the hiring of a new Chief Security Officer, David Kleidermacher. Read some of hisinitial thoughts on mobile data security
- Broad carrier support for our latest smartphones. Chen noted BlackBerry Passport and Classic are being carried in more than 7,000 retail stores by 160 carriers operating in 86 countries – numbers that should only increase, he added. “That is the best carrier support we have seen in a number of years,” he said, benefiting new devices such as the coming all-touch BlackBerry Leap (watch the latest video here).
BlackBerry is certainly on the right track. It is still an uphill battle for the hardware, software, and services company, but beating Wall Street expectations by $0.09 per share is a great start.