Canada’s BlackBerry (BB.TO), opens new tab, beat first-quarter revenue estimates on Wednesday driven by resilient demand for cybersecurity services in the wake of growing online threats.
U.S. listed shares of the company, that provides cybersecurity and data protection to enterprises and governments rose 7.2% after the bell.
In the past three months alone, companies, that included incremental technology provider CDK for the car industry, UnitedHealth Group’s unit Change Healthcare, and Live Nation Entertainment’s Ticketmaster unit, have become victims of massive data breaches.
High-profile hacks have made companies and government agencies increase spending on cybersecurity, since an overall slowdown in tech-spending cannot let them risk the protection of their data from such threats as hackers and malware. This fact raises demand for cybersecurity companies like BlackBerry.
The quarterly revenue generated by the company was $144 million, above the average analyst’s estimate of $134.1 million, according to LSEG data.
The company’s adjusted net loss was 3 cents per share for the three months ended May 31, missing analysts’ average estimate of a loss of 4 cents.
BlackBerry forecast second-quarter revenue between $136 million and $144 million whose mid-point is below analysts’ estimate of $142.4 million.
The company said it now expects revenue in its cybersecurity unit, which sells intelligent security software to enterprises and governments, to come in between $82 million and $86 million in the second quarter.
It maintained its full-year 2025 revenue and profit forecast.
Separately, BlackBerry entered a pact with Advanced Micro Devices, opens new tab AMD.O, last month to develop a robotic system for the industrial and healthcare sectors.
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