BlackBerry Ltd (BB) delivered positive news after the bell on Thursday, reporting its second-quarter financial results. The company exceeded analysts’ expectations on both revenue and earnings, highlighting a strong performance in its core businesses.
BlackBerry generated $145 million in revenue during the quarter, surpassing the anticipated $141.42 million. This achievement was fueled by robust growth in its two key segments: cybersecurity and IoT.
The cybersecurity division experienced a 10% year-over-year surge in revenue, reaching $87 million. Meanwhile, IoT revenue climbed by 12% to $55 million. Licensing revenue contributed $3 million to the overall earnings.
Despite exceeding expectations, the company reported breakeven earnings on an adjusted basis for the second quarter. This performance was particularly impressive, as analysts had predicted a loss of 3 cents per share.
John Giamatteo, BlackBerry’s CEO, attributed the positive results to the company’s strategic approach. He highlighted the “stronger-than-expected, double-digit revenue growth for both IoT and Cybersecurity, as well as tremendous ongoing progress in rationalizing our cost structure.”
Looking ahead, BlackBerry expressed confidence in continued growth. The company anticipates third-quarter revenue between $146 million and $154 million. This projection includes estimated IoT revenue of $56 million to $60 million and cybersecurity revenue of $86 million to $90 million. Licensing and other revenue is expected to reach approximately $4 million.
In terms of earnings, BlackBerry projects a breakeven third quarter, with a potential variance of one cent per share.
For the full year, BlackBerry forecasts revenue in the range of $591 million to $616 million. However, the company anticipates an adjusted earnings loss of 2 cents to 5 cents per share.
Management will provide further insights into these results during a conference call scheduled for 5:30 p.m. ET.
BlackBerry shares saw a positive response in after-hours trading, rising by 0.79% to reach $2.56 at the time of publication.
