BlackBerry CEO John Chen speaks to Bloomberg about record Profit Margin
BlackBerry’s earnings call was today. You will now see headlines throughout the financial blogs as news and numbers are twisted to serve the wants of the individual authors. Through it all though, there is one number that sticks out for me, and it is a Gross Margin of 70% (non-GAAP, GAAP Gross Margin is 67%). These are amazing numbers, record numbers for BlackBerry, and the second consecutive quarter to see a record result.
Yet John Chen states that BlackBerry can do better, while realistically stating that it could take a while to get there. When asked about the 30% growth in software revenue, Chen states that he does not expect such a high percentage next fiscal year as this, he points out that the average market growth is around 10-15% and BlackBerry has committed to growing faster than the market.
Chen goes on to speak of cybersecurity, and BlackBerry’s strategy with their software and services. Instead of competing, BlackBerry is partnering. With this strategy, BlackBerry is filling a hole not filled by another, as well as making BlackBerry a key building block in the IoT world.
Watch the video below.
It appears that some are having trouble with the embedded video. As we sort this issue, please view the interview by clicking the source link.