Because of rising demand for its cybersecurity and Internet of Things technology, BlackBerry Ltd (BB.TO) outperformed Wall Street sales projections for the third quarter on Tuesday.
BlackBerry Ltd.’s shares rose in late trading after the cybersecurity and Internet of Things company’s (IoT) quarterly results exceeded expectations.
As more enterprises and government organizations switch to cloud-based solutions to facilitate remote work during the COVID-19 epidemic, demand for cybersecurity software has been strong.
BlackBerry lost five cents per share on revenue of $184 million in the quarter ended November 30, compared to a loss of 23 cents per share on revenue of $218 million in the same quarter the previous year. Analysts expected a loss of seven cents per share on $173.6 million in revenue.
Read Also: Top 10 UK Stocks to Buy Now
BlackBerry’s Internet of Things segment brought in $43 million in revenue in the quarter, while its cybersecurity division brought in $128 million. Licensing and other revenue totaled $13 million, bringing the total to $13 million.
According to Executive Chairman and CEO of BlackBerry, John Chen, BlackBerry’s IoT and Cybersecurity businesses both generated strong sequential billings and revenue growth in this quarter, exceeding forecasts for the second quarter in a row. Despite continuous investment to fuel future top-line growth, BlackBerry also exceeded earnings forecasts.
BMW Group signed a multi-year agreement to use BlackBerry QNX technology to develop autonomous driving functions in a variety of makes and models throughout the quarter. To reduce developer difficulty and time to market, BlackBerry QNX cooperated with Google LLC and Qualcomm Inc. to modularize Android Automotive OS with safety-critical apps on the QNX Hypervision.
As part of its upgraded BlackBerry Guard-managed extended detection and response solution, BlackBerry partnered with Exabeam Inc. to make telemetry data from numbers of network units more accessible.
BlackBerry made a $74 million profit in the third quarter, compared to a $130 million deficit the year before.
Investors, on the other hand, didn’t seem to appreciate what they heard. Despite better-than-expected quarterly results, BlackBerry shares fell in after-hours trading after initially rising as high as 3% after the earnings report was released, however, they eventually recovered to a 1.5 percent decrease. The timing of the later dip suggests that the investor call’s outlook was less optimistic than predicted.
What Does Blackberry’s Future Hold?
Blackberry is starting to curl upward again, and bulls are hoping to see it cross back over the pattern resistance level for a major breakout move. This move could signal the start of an uptrend in Blackberry’s stock. Bears want the stock to go below the pattern support level. This indicates that the stock is experiencing significant weakness and is likely to fall further.
BlackBerry is a worldwide security technology and solutions provider for enterprises and governments. The organization protects over 500 million endpoints, which include 195 million automobiles. The company, based in Waterloo, Ontario, uses Machine learning and artificial intelligence to create new cybersecurity, security, and data protection solutions, and is a pioneer in endpoint security, encryption, endpoint management, and embedded systems. BlackBerry’s mission is simple: to ensure a secure connected future.