BlackBerry had their Q4 FY 2015 earning’s call this morning, and it went surprisingly well. We posted the official press release of the report as soon as we got our hands on it. But, if you’re anything like me, you probably skimmed through it just to see if there were profits.
The good news is, there were profits. And the company beat Wall Street expectations by US$ 0.09 per share.
BlackBerry beat expectations due to a large mix of software versus hardware. Software made more money per dollar spent, which is why the company was able to make a profit in spite of the fact that fewer devices were sold.
In fact, there was an increase in software profits of 20% when compared to Q4 FY 2014. The Q4 FY 2015 period saw a 24% increase and $67 million profits originated from software. The revenue breakdown for the quarter was approximately 42% for hardware, 47% for services and 10% for software.
This shows that the software side of things is proving to be profitable, and BlackBerry can succeed as more than just a handset maker. Software profit margins are likely to be larger than hardware, as there’s a lesser investment required.
What do you guys think this could mean for the future of the company? Let us know in the comments below!