Shares of BlackBerry Ltd (NYSE: BB) jumped 5.0% in extended trading on Tuesday after the cybersecurity company reported better-than-expected revenue for its fiscal third quarter.
Q3 financial performance
BlackBerry generated $43 million in revenue from IoT, $128 million from cybersecurity, and $13 million in “other” revenue, including licensing, for a total quarterly revenue of $184 million. Its GAAP operating profit printed at $51 million that translates to 5 cents of diluted GAAP loss per share.
In comparison, analysts had called for 6 cents of per-share loss on $177 million in revenue. The Canadian company valued its cash, equivalents, and investments at $772 million at the end of Q3. Gross margin in the recent quarter stood at 64%.
The Waterloo-headquartered is expected to offer future guidance on the earnings call. The news comes a day after BlackBerry launched managed extended detection and response (XDR) service – a major update to its managed detection and response (MDR) service.
CEO John Chen’s remarks
In the earnings press release, CEO John Chen said the company’s Q3 results were particularly impressive as they topped expectations despite ongoing investments aimed at boosting top-line growth in the future.
In IoT, our QNX business achieved a quarterly record for design-related revenues despite industry supply chain headwinds. On the Cybersecurity front, we saw further traction for our recent unified endpoint security product launches with additional head-to-head wins against next-gen players.
In October, Blackberry signed a supply chain agreement with Deloitte. BB is up roughly 45% on a year-to-date basis. Once a meme stock, it traded at a high of $25 a share in late January on the retail traders’ driven short squeeze.
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