Canada’s BlackBerry has announced that it has exceeded first-quarter revenue estimates as of Wednesday, 26th June, driven by strong demand for cybersecurity services amid increasing online threats.
The company’s U.S.-listed shares surged 7.2% in after-hours trading following the announcement.
BlackBerry, which offers cybersecurity and data protection services to enterprises and governments, reported quarterly revenue of $144 million, surpassing analysts’ average estimate of $134.1 million, according to LSEG data.
Over recent months, notable companies including CDK, UnitedHealth Group’s Change Healthcare unit, and Live Nation Entertainment’s Ticketmaster unit have experienced large-scale data breaches. Despite a broader slowdown in tech spending, these high-profile hacks have compelled companies and government agencies to increase their cybersecurity investments, bolstering demand for firms like BlackBerry.
For the quarter ended 31st May, BlackBerry posted an adjusted net loss of 3 cents per share, compared to analysts’ average estimate of a 4-cent loss.
Looking ahead, BlackBerry anticipates second-quarter revenue to fall between $136 million and $144 million, with the midpoint slightly below analysts’ estimate of $142.4 million. The company projects second-quarter revenue for its cybersecurity unit, which provides intelligent security software to enterprises and governments, to range from $82 million to $86 million.