BlackBerry beats estimate for Q1 revenue on strong demand for cybersecurity services
CANADA’S BlackBerry beat first-quarter revenue estimates on Wednesday (Jun 26), driven by a resilient demand for cybersecurity services in the wake of growing online threats.
US-listed shares of the company, which provides cybersecurity and data protection services to enterprises and governments, rose 7.2 per cent after the bell.
Over the past few months, companies such as the car industry technology provider CDK, UnitedHealth Group’s Change Healthcare unit and Live Nation Entertainment’s Ticketmaster unit faced large-scale data breaches.
Despite the wider slowdown in tech spending, high-profile hacks are forcing companies and government agencies to amp up their cybersecurity spending to safeguard their data against hackers and malware, boosting demand for cybersecurity firms such as BlackBerry.
The Waterloo-based company’s quarterly revenue stood at US$144 million, beating analysts’ average estimate of US$134.1 million, according to LSEG data.
The company reported an adjusted net loss of 3 US cents per share for the quarter that ended May 31, compared with analysts’ average estimate of a loss of 4 US cents.
BlackBerry expects second-quarter revenue in the range of US$136 million to US$144 million, whose mid-point is below analysts’ estimate of US$142.4 million.
In its cybersecurity unit, which provides intelligent security software to enterprises and governments, the company expects second-quarter revenue to be between US$82 million and US$86 million.
It reiterated its full-year 2025 revenue and profit forecast.
Separately, BlackBerry teamed up with Advanced Micro Devices in April to develop a robotic system for the industrial and healthcare sectors. REUTERS
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