BlackBerry | Image:Waterloo EDC
BlackBerry’s profit surge: BlackBerry, based in Waterloo, Canada, surprised investors by reporting a profit for the fourth quarter, fuelled by increased demand for its cybersecurity services in the face of rising online threats and notable cyberattacks. Following this announcement, the company’s US-listed shares saw a 6.4 per cent rise after trading hours.
The company posted an adjusted net profit of 3 cents per share for the quarter ending on February 29, surpassing analysts’ expectations of a 3-cent loss, as per data from LSEG. Quarterly revenue reached $173 million, outperforming analysts’ average estimate of $154.78 million.
Security revenue growth
The cybersecurity unit, which offers security software to businesses and governments, saw a 5 per cent year-on-year (YoY) revenue increase to $92 million. Revenue from the Internet of Things (IoT) division also experienced a 25 per cent surge, reaching $66 million.
CEO John Giamatteo expressed optimism about the company’s progress in streamlining operations, aiming for profitability and efficiency. BlackBerry had previously announced job cuts and office closures in February, with plans to increase annual profits by $100 million.
IoT, cyber split
Despite cancelling its initial public offering (IPO) for the IoT business in December, BlackBerry remains focussed on separating the IoT and cybersecurity divisions into independent entities.
Looking ahead, BlackBerry forecasts first-quarter revenue to range between $130 million and $138 million, falling short of analysts’ projections of $151.12 million. For the full year 2025, the company anticipates revenue to land between $586 million and $616 million, with an adjusted loss per share ranging from 3 cents to 7 cents.
(With Reuters Inputs)
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