BlackBerry surprised investors with a profit in its latest quarter, driven by significant sales growth in its cybersecurity and internet-of-things businesses. The company’s revenue also saw a notable increase in its fiscal fourth quarter, leading to a more than 6% rise in its stock value during the extended session on Wednesday.
According to Chief Executive John J. Giamatteo, the fiscal fourth quarter marked the ‘strongest-ever quarter’ for BlackBerry’s internet-of-things division. Additionally, the company made strides in advancing its cybersecurity division, demonstrating a positive trajectory towards profitability.
Despite posting a loss of $56 million, or 10 cents a share, in the quarter, BlackBerry’s adjusted earnings of 3 cents a share surpassed analysts’ expectations of a 4 cents per share loss. The company’s revenue also exceeded forecasts, reaching $173 million compared to the expected $150 million.
Notably, BlackBerry’s internet-of-things business reported a 25% year-over-year revenue increase, amounting to $66 million, while its cybersecurity business saw a 5% year-over-year growth, generating $92 million in revenue.
Once known for its iconic devices, BlackBerry has strategically shifted its focus to internet-of-things, cybersecurity, and vehicle software after facing stiff competition from other smartphone manufacturers. The company’s outlook for the fiscal first quarter includes a projected per-share loss between 4 cents and 6 cents on sales ranging from $130 million to $138 million.
Looking ahead to fiscal 2025, BlackBerry anticipates an adjusted loss between 3 cents and 7 cents per share on sales totaling $586 million to $616 million. These projections differ slightly from FactSet consensus, reflecting the company’s ongoing efforts to realign its business and drive future growth.
Despite a 38% decline in its stock value over the past 12 months, BlackBerry remains committed to its strategic transformation, aiming to capitalize on the evolving market landscape and emerging opportunities in the technology sector.
