BlackBerry (BB 11.93, +0.23) has climbed 2.0% in pre-market after beating quarterly expectations and reaffirming its guidance.
The Canadian technology company reported above-consensus first quarter earnings of $0.03 per share on revenue which declined 11.1% year-over-year to $217 million, but was ahead of market expectations.
Going forward, the company expects that total software and services billings growth for the fiscal year will be in the double digits while non-GAAP earnings are expected to be positive. The company expects positive free cash flow before the impact of restructuring and legal proceedings. Software and services revenue growth is expected between 8.0% and 10.0%.
BlackBerry saw continued growth in recurring revenue, which made up 86.0% of total quarterly revenue, up from 70.0% in the previous quarter and up from 79.0% one year ago.
The company noted that more than 120 million vehicles now use the company's QNX operating system. In addition, all seven G7 governments and 16 G20 governments use software provided by BlackBerry.
BlackBerry has continued touting the security of its software in an environment where devices of all kinds are being connected to the internet at an increasing rate. The company expects 51.5 billion connected things by 2021, which translates to compound annual growth rate of 56.0%. The company estimates that 52,000 exabytes of data will be transmitted through these devices by 2020.
Free cash flow before considering the impact of restructuring and legal proceedings was reported at $3 million. The company ended the quarter with $1.70 billion in net cash.
Looking at the geographic breakdown, North America revenue ($139 million) made up 65.3% of total revenue, up from 54.0% of sales one year ago. Europe, Middle East, and Africa revenue ($52 million) made up 24.4% of total revenue, down from 29.8% of revenue one year ago. Revenue from other regions ($22 million) made up 10.3% of total sales, down from 16.2% of sales one year ago.