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BlackBerry reports surprise profit on demand for cybersecurity services

In Business
April 04, 2024

(Reuters) – Canada’s BlackBerry reported a surprise profit for the fourth quarter on Wednesday, helped by higher demand for its cybersecurity services amid growing online crimes and high-profile hacks.

U.S.-listed shares of the company rose 6.4% after the bell.

The company reported an adjusted net profit of 3 cents per share for the quarter ended Feb. 29, compared with analysts’ average estimate of a loss of 3 cents, according to LSEG data.

The Waterloo-based company’s quarterly revenue stood at $173 million, beating analysts’ average estimate of $154.78 million.

Revenue in the cybersecurity unit, which provides intelligent security software to enterprises and governments, rose 5% year-on-year to $92 million, while revenue from its internet of things (IoT) business jumped 25% to $66 million.

“We are making good progress with efforts to both separate the divisions and drive towards profitability, and operating cash usage more than halved sequentially this quarter,” CEO John Giamatteo said in a statement.

The company said in February it had reduced 200 jobs and exited some offices, and was targeting a $100 million increase in annual profit.

In December the company scrapped its initial public offering (IPO) plans for its IoT business, but still expects to split the IoT and cybersecurity businesses into fully standalone divisions.

BlackBerry expects first-quarter revenue in the range of $130 million to $138 million, below analysts’ estimate of $151.12 million.

BlackBerry expects full-year 2025 revenue in the range of $586 million to $616 million and adjusted loss per share of 3 cents to 7 cents.

(Reporting by Priyanka G in Bengaluru; Editing by Maju Samuel)

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