Blackberry jumped in extended trading: what’s fuelling the stock?

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on Dec 21, 2021
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  • BlackBerry reported better-than-expected results for its fiscal third quarter.
  • The Canadian firm will likely offer future guidance on the earnings call.
  • Shares of the company are up about 5.0% in extended trading on Tuesday.

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Shares of BlackBerry Ltd (NYSE: BB) jumped 5.0% in extended trading on Tuesday after the cybersecurity company reported better-than-expected revenue for its fiscal third quarter.

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Q3 financial performance

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BlackBerry generated $43 million in revenue from IoT, $128 million from cybersecurity, and $13 million in “other” revenue, including licensing, for a total quarterly revenue of $184 million. Its GAAP operating profit printed at $51 million that translates to 5 cents of diluted GAAP loss per share.

In comparison, analysts had called for 6 cents of per-share loss on $177 million in revenue. The Canadian company valued its cash, equivalents, and investments at $772 million at the end of Q3. Gross margin in the recent quarter stood at 64%.

The Waterloo-headquartered is expected to offer future guidance on the earnings call. The news comes a day after BlackBerry launched managed extended detection and response (XDR) service – a major update to its managed detection and response (MDR) service.

CEO John Chen’s remarks

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In the earnings press release, CEO John Chen said the company’s Q3 results were particularly impressive as they topped expectations despite ongoing investments aimed at boosting top-line growth in the future.

In IoT, our QNX business achieved a quarterly record for design-related revenues despite industry supply chain headwinds. On the Cybersecurity front, we saw further traction for our recent unified endpoint security product launches with additional head-to-head wins against next-gen players.

In October, Blackberry signed a supply chain agreement with Deloitte. BB is up roughly 45% on a year-to-date basis. Once a meme stock, it traded at a high of $25 a share in late January on the retail traders’ driven short squeeze.

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