BlackBerry’s Surprising Profit Resulting from Increased Demand for Cybersecurity Services

BlackBerry’s Surprising Profit Resulting from Increased Demand for Cybersecurity Services

(Reuters) – Canada’s BlackBerry Group reported a surprise fourth-quarter profit on Wednesday, helped by increased demand for its cybersecurity services amid rising online crime and high-profile hacks.

The company’s U.S.-listed shares rose 6.4% after the bell.

The company reported adjusted net income of 3 cents per share for the quarter ended Feb. 29, compared with analysts’ average estimate of a loss of 3 cents, according to LSEG data.

The Waterloo-based company’s quarterly revenue was $173 million, beating analysts’ average estimate of $154.78 million.

Revenue from the cybersecurity unit, which provides intelligent security software to businesses and governments, rose 5% year over year to $92 million, while revenue from its Internet of Things (IoT) business jumped 25% to $66 million.

“We are making good progress in our efforts to both separate divisions and move toward profitability, and operating cash burn has been reduced by more than half sequentially this quarter,” said CEO John Giamatteo in a statement.

The company announced in February that it had cut 200 jobs and closed some offices, and was targeting a $100 million increase in annual profit.

In December, the company abandoned plans for an IPO for its IoT business, but still plans to split the IoT and cybersecurity businesses into fully standalone divisions.

BlackBerry expects first-quarter revenue in the range of $130 million to $138 million, lower than analysts’ estimate of $151.12 million.

BlackBerry expects full-year 2025 revenue of $586 million to $616 million and an adjusted loss per share of 3 cents to 7 cents.

(Reporting by Priyanka G in Bangalore; editing by Maju Samuel)

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