BlackBerry’s Optimism about Enterprise Software and Services
Revenues from BlackBerry’s (BB) Enterprise Software and Services business fell from $91.0 million in fiscal Q2 2018 to $88.0 million in fiscal Q2 2019.
Revenues declined in fiscal Q2 2019
BlackBerry’s (BB) Enterprise Software and Services is the company’s largest business segment. Revenues from this business fell from $91.0 million in the second quarter of fiscal 2018 to $88.0 million in the second quarter of fiscal 2019. However, its sales rose 11.0% sequentially.
BlackBerry has shifted to a subscription-based business model and changed its accounting standards for sales reporting. As a result, BlackBerry reports sales over the life of a contract and not upfront.
Steve Capelli, BlackBerry’s CFO, stated during the company’s earnings call, “We anticipate the headwind from this accounting and sales model changes to impact enterprise software revenue for the remainder of fiscal year 2019. We expect better year-over-year comparisons in fiscal 2020 as we lap the accounting and sales model changes.”
BlackBerry is optimistic about its integrated and scalable mobile-first solution that secures the enterprise ecosystem on a single platform.
BlackBerry named as a major player by IDC
The chart above shows that market research firm IDC named BlackBerry as a major player in the enterprise mobility management space. BlackBerry faces competition from Cisco Systems (CSCO), Microsoft (MSFT), and Citrix (CTXS). At the end of 2017, BlackBerry accounted for 18.0% of this market, followed by Microsoft at 9.0% and Citrix at 9.0%. BlackBerry was also recognized for its innovation and was named as a leader in the 2018 Gartner Unified Endpoint Management Magic Quadrant report.