BlackBerry Chalks Out FY23-FY26 Financial Targets

BlackBerry Ltd BB announced long-term financial targets yesterday, expecting 3-year CAGR revenue growth of 12% to 15% from FY23-FY24.
For 2024, the company expects revenues of $665 million-$700 million (consensus: $701.40 million), with projected revenues of $240 million - $250 million from IoT and $425 million - $450 million from Cybersecurity.
For 2026, Blackberry projects revenues of $880 million - $960 million, with expected revenues of $340 million - $370 million from IoT and $540 million - $590 million from Cybersecurity.
BlackBerry projects an average increase in adjusted gross margin of over 200 basis points per year to FY26.
Also, the company expects significant improvements in adjusted EPS loss and cash flow usage in FY24 and targets to achieve adjusted profitability in Q4 FY24.
The company expects to generate positive full-year adjusted EPS and cash flow from FY25.
In March, BlackBerry reported Q4 FY23 revenue of $151.00 million, missing the consensus of $156.65 million, and adjusted EPS loss of $(0.02), beating the consensus loss of $(0.07).
Price Action: BB shares are trading flat at $5.38 premarket on the last check Thursday.