BlackBerry Forecasts Its Annual Revenues Will Double Within Five Years

BlackBerry (BB) has forecast that its revenues will nearly double over the next five years as
growth in cybersecurity and the internet of things (IoT) accelerates.

The Waterloo, Ont.-based technology company, which reports its earnings in U.S. dollars, says
it expects its annual revenues to reach $1.2 billion U.S. in fiscal 2027, nearly double the $655
million U.S. earned last year.

The projected revenues were outlined during BlackBerry’s annual analyst summit. If the
projections prove accurate, it would represent a 13% compounded annual growth rate (CAGR)
over five years.

Cybersecurity is expected to be the largest driver of growth for the company, increasing to $770
million U.S. in five years from $477 million U.S. in fiscal 2022.

Internet of Things revenues are forecast to reach $443 million U.S., more than double the $178
million earned in 2021.

BlackBerry is also targeting an average increase of at least 100 basis points in adjusted (non-
GAAP) gross margin annually to fiscal 2027, investing about 30% of revenue on research and
development in 2023, and generating positive adjusted earnings per share and cashflow
beginning in 2025.

Year to date, BlackBerry’s stock is down 36% at $7.59 a share.