BlackBerry reported cybersecurity revenue of $106 million in the third quarter of fiscal year 2023, according to a prepared statement. Previously, BlackBerry recorded cybersecurity revenue of $111 million in Q2FY23 and cybersecurity revenue of $128 million in Q3FY22.
In addition, BlackBerry has been dealing with an extended cybersecurity sales cycle, Reuters reported. BlackBerry also is managing macroeconomic challenges that could hamper its cybersecurity revenue growth in the short term.
Following BlackBerry's release of its Q3FY23 earnings, the company's share price fell nearly 8%. However, BlackBerry recorded "good progress" in its cybersecurity and Internet of Things (IoT) business units in Q3FY23, CEO John Chen said.
At this point, Chen pointed out that "rebuilding" continues across its cybersecurity business. Chen also indicated that "churn improved" in BlackBerry's cybersecurity business and there was evidence that the company's investments in its go-to-market and product portfolio will drive sequential improvements to drive annual recurring revenue growth in the 2023 fiscal year.
BlackBerry Unveils Cyber Threat Intelligence Offering, Upgrades Cybersecurity Portfolio
Previously, BlackBerry in October 2022 announced a Cyber Threat Intelligence (CTI) offering and enhancements to its AI-based cybersecurity solutions at the BlackBerry Security Summit.
The CTI offering delivers threat intelligence that organizations can use to understand cyberattacks, threat actors and cybercrime campaigns, BlackBerry stated. It also provides intelligence reports for industries, regions and countries.
Meanwhile, BlackBerry's enhancements to its AI-based cybersecurity portfolio are designed to help organizations improve their security posture, workflows and cyber resilience, the company said. They include upgraded data context for zero trust network access to help organizations keep pace with evolving cyber threats.
BlackBerry Eyes MSSP Partnerships
Chen indicated in June 2022 that BlackBerry is seeing demand for MSSP-type services. BlackBerry also updated its partner program in June 2022 to help MSSPs deliver eXtended detection and response (XDR) services to small and medium-sized businesses (SMBs).
BlackBerry's top 20 MSSPs grew more than 50% year over year as of June 2022, vice president of Global Channel Sales Colleen McMillan said at that time. Furthermore, BlackBerry looks poised to explore new MSSP partnerships and find ways to improve its existing ones.