How BlackBerry’s Software and Services Business Performed in Q2
Revenue rose over 34% YoY in fiscal 2Q18
While BlackBerry’s (BBRY) overall revenue in fiscal 2Q18 fell almost 30% YoY (year-over-year), revenue generated from its Software and Services segment rose over 34% YoY to $185 million. The Software and Services business has three verticals: Enterprise Software and Services, BlackBerry Technology Solutions and Licensing, and IP & Other.
Revenue from BlackBerry’s Enterprise Software and Services business vertical rose 8.3% YoY in fiscal 2Q18 to $91 million. Revenue from BlackBerry Technology Solutions was flat YoY at $38 million, whereas revenue from the Licensing, IP & Other vertical rose 250% YoY to $56 million in fiscal 2Q18.
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The Software and Services business is BlackBerry’s largest, accounting for over 75% of total revenue. BlackBerry expects revenues from its Software and Services segment to rise 10%–15% in fiscal 2018.
Why is BlackBerry optimistic about long-term growth in this business?
Over the last few quarters, BlackBerry has made significant progress in key growth areas such as Unified Endpoint Management (or UEM), connected car, IoT (Internet-of-things), licensing, and cybersecurity. BlackBerry’s Software billings growth in fiscal 2Q18 was strong as the company secured several wins in the auto segment.
Further, BlackBerry stated that it has invested in its sales channel. While Licensing revenue grew significantly in fiscal 2Q18, BlackBerry was also recognized as a leader in mobile security by Gartner.