June 27, 2024 – BlackBerry, now focusing on the Internet of Things (IoT) and cybersecurity, reported a narrower net loss than expected in its latest quarterly report, signaling the company’s efforts to restore its adjusted profitability.
The tech firm, once known for its smartphones, revealed a net loss of 42million,or7centspershare,forthefirstquarter.Whilethislossishigherthanthe11 million loss incurred in the same period last year, it represents an improvement from the $56 million loss reported in February.
On an adjusted basis, BlackBerry reported a loss of 3 cents per share, compared to an adjusted profit of 6 cents per share in the year-ago quarter. However, this adjusted loss was better than the 5-cent loss per share that analysts tracked by FactSet had anticipated.
BlackBerry shares rose 7% in after-hours trading on Wednesday following the earnings release.
“BlackBerry is on track to achieve non-GAAP profitability and positive cash flow in the fourth quarter,” said John Giamatteo, the company’s chief executive officer, in a press release.
Revenue for the quarter came in at 144million,downfrom173 million in February and $373 million in the same period last year.Nevertheless, this revenue figure is still higher than analysts’ expectations of $131.6 million.
“We are making significant progress in the operational independence and profitability of our IoT and cybersecurity businesses,” Giamatteo added, noting that the company’s IoT revenue increased by 18% year-over-year.
Looking ahead to the next quarter, BlackBerry forecast revenue in the range of 136millionto144 million, with an adjusted loss per share of 2 cents to 4 cents. In comparison, analysts tracked by FactSet expect revenue of $139.7 million and a loss of 3 cents per share.
The company’s journey towards restored profitability reflects itsongoing transformation from being a smartphone manufacturer to being a leading player in the IoT and cybersecurity domains. This shift in focus aligns with the evolving technology landscape, where the demand for secure connected devices and robust cyber defense mechanisms is consistently growing.
