BlackBerry Slightly Overvalued
We're maintaining our fair value estimate after the firm reported in-line results.
Total revenue came in at $233 million, down 19% year over year. With revenue from handheld devices and service access fees continuing to dwindle away, as expected, the 16% year-over-year growth in software and services revenue, which accounted for 91% of the company’s total revenue, was encouraging. According to management, BlackBerry enterprise software is gaining further traction in the government vertical, which brought in 40% of total enterprise software revenue. Plus, the firm recently announced a partnership with Microsoft providing additional security and a more consistent user interface and experience for Microsoft apps on Android and iOS mobile devices, which we think could help BlackBerry sign additional enterprise clients.
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