BlackBerry software has driven the positive results for a strong Q1 of the fiscal year 2019 for the company, as it posts notable increases in both non-GAAP total software and services revenue and GAAP total software and services revenue, which were reported at an amount of $193 Million and $189 Million respectively, which are increases of 14-percent and 18-percent year-over-year. These big jumps showcase that although BlackBerry no longer officially makes hardware in-house like it used to, its software continues to be a factor in helping it move forward and serve up continual growth.
Those above numbers are $217 Million for total company non-GAAP and $213 Million for total company GAAP services revenues which are also growth points for BlackBerry compared to last year’s numbers during the same period. Following these numbers BlackBerry is expecting the remainder of the fiscal year to be just as strong and it predicts that its total company software and services billing growth will move into double-digits by the end of the fiscal year. The company’s free cash flow is expected to continue being strong for the rest of the fiscal year as well, pointing to a very positive outlook for BlackBerry Limited in the future.
BlackBerry CEO John Chen attributes part of the strength of its software and services revenues specifically to the company’s BlackBerry QNX software for vehicles, which he mentions is already available in over 120 million vehicles globally. With such big success in this particular area Chen also states that BlackBerry is excited for the future services it plans to deliver for the automobile and EoT industries. BlackBerry’s revenue gains were strongest in North America at a reported $139 Million of the reported $213 Million, while Europe, the Middle East, and Africa attributed a reported $52 Million, with other regions rounding out the remaining $22 Million. While software and services was the largest segment of the revenue other areas saw increases as well. BlackBerry Technology Solutions increased to $47 Million from $36 Million at the same time last year, while “licensing, IP, and Other” increased to $63 Million from $32 Million.