Skip to Content
Stock Strategist

BlackBerry Shows Some Growth

It's well on its way to becoming an enterprise software company.


BlackBerry (BB) reported better-than-expected results for its fiscal 2020 third quarter, with strength in nearly all product categories in software and services. The acquisition of Cylance along with the company’s revamping of its salesforce may be paying dividends, as BlackBerry posted sequential revenue growth across the board for the first time in the last three quarters. While such early indications of revenue growth improvement pushed the stock up after the earnings report, we continue to view BlackBerry as undervalued.

Revenue increased 18% year over year to $267 million in the quarter, mainly due to the Cylance acquisition and QNX gaining traction in additional markets. Excluding Cylance, BlackBerry’s total revenue was up 0.4% from last year, an improvement from the 1% and 0.5% declines in the first and second quarters, respectively. Revenue from Internet of Things enterprise software declined from last year but increased sequentially, which we view as encouraging. Given the company’s focus last quarter on improving its sales team via more internal training and possibly synergies across different products, we continue to expect the sales cycle to shorten and account wins to increase. Some wins during the quarter include Swiss bank Julius Baer, Canada’s Department of National Defence, and other federal agencies in Germany, Panama, Poland, Romania, Saudi Arabia, and the United States.

Ali Mogharabi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.