Weekly News

How Will BlackBerry's Business Trend Over The Next Three Years?

February 23,2018 05:18

BlackBerry is seeing its business gradually stabilize as growth in the Software business offsets declines in the Smartphone and Service Access Fee businesses. In this note, we take a look at some of the trends that could drive the company's revenues ...and more »



Great Speculations Buys, holds and hopes Opinions expressed by Forbes Contributors are their own.

Trefis Team , Contributor

BlackBerry is seeing its business gradually stabilize as growth in the Software business offsets declines in the Smartphone and Service Access Fee businesses. In this note, we take a look at some of the trends that could drive the company’s revenues and EPS over the next three years. We have also created an interactive dashboard analysis outlining our forecasts. You can modify the graphs with blue dots to arrive at your own estimates.
Software Segment To Drive Growth
Blackberry’s Software segment is likely to be the biggest driver of its earnings going forward. The bread-and-butter Enterprise Mobility Management business should continue to see growth in orders from government agencies and customers in regulated industries, and the shift towards a subscription-based model should ensure revenue stability. BlackBerry has also been betting on emerging areas such as autonomous vehicles and the Internet of Things, leveraging its QNX software platform, which could prove to be a long-term growth driver for the company (related:Why BlackBerry’s Autonomous Driving Deal With Baidu Is Significant). Blackberry’s smartphone operations will play a diminishing role in its revenue mix going forward following its decision to switch to a licensing model. Service Access Fee revenues will also likely trend towards zero, as customers abandon their legacy BlackBerry devices.

Trefis

We have a $9 price estimate for BlackBerry which is below the current market price following a substantial rally in the company’s stock over the past year.
What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
More Trefis Research
Like our charts? Explore example interactive dashboards and create your own

business casual business business insider business lease business english business model canvas business formal business class business card mockup business plan

Share this article

Related videos

Top 10 Brands That Failed
Top 10 Brands That Failed
Always On - Future trends in personalized health
Always On - Future trends in personalized health

DON'T MISS THIS STORIES