BlackBerry (NYSE:BB) stock is down nearly 4% today after agreeing to stop reporting non-GAAP (generally acceptable accounting practices) earnings in response to a comment letter from the U.S. Securities and Exchange Commission. BB stock has been reporting non-GAAP earnings alongside GAAP earnings since the first quarter of fiscal year 2019.
The comment letter from the SEC said in part that “non-GAAP adjustments [were] intended to eliminate the impact” of acquisitions by the company. In the first quarter of 2019, when the company began reporting non-GAAP metrics, those adjustments by .
While BlackBerry also reported GAAP numbers during the quarter, as non-GAAP numbers. In its
, BlackBerry said:
“… the Company did not view this adjustment as misleading. Further, if the Company did not [report non-GAAP figures] its results could be less useful to investors… However, as a result of the declining quantitative impact of these adjustments as they trend to zero due to the time elapsed since its acquisitions, the Company plans to discontinue its usage of [non-GAAP figures] beginning in its upcoming fiscal year.”
BB stock was reporting non-GAAP figures , when it reported fiscal year 2021 third quarter results. Those results saw the company . It’s worth noting that non-GAAP earnings per share of 2 cents were much higher than GAAP losses of 23 cents per share.
BlackBerry is set to . Those results will still include non-GAAP figures alongside GAAP figures.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.
