Blackberry shares are trading higher after-hours: here’s why

Shares of Blackberry Ltd (NYSE: BB) jumped 10% in extended trading on Wednesday as the cybersecurity company reported its financial results for the second quarter that topped Wall Street estimates.

Financial performance

Blackberry said its net loss widened to $144 million in Q2 that translates to 25 cents per share. In the comparable quarter of last year, its net loss stood at a much lower $23 million or 4 cents per share. On an adjusted basis, the Waterloo-based company lost 6 cents per share.

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The $5.41 billion firm generated $175 million in revenue in its recent quarter versus the year-ago figure of $259 million. In comparison, analysts had called for 8 cents of per-share loss on $162 million in revenue.

Revenue from individual business segments

Other notable figures in Blackberry’s earnings press release include $40 million in IoT revenue, $120 million in cybersecurity revenue, $15 million in licensing and other revenue, and $12 million of positive operating cash flow.

New president for the cybersecurity division

The Canadian firm hired John Giamatteo as the president of its cybersecurity division. Giamatteo has previously served at McAfee as the chief revenue officer.  

The company left its full-year guidance unchanged.

CEO John Chen’s remarks

Commenting on the financial update, CEO John Chen said:

In IoT, design activity for our QNX products remains very strong, demonstrating both our industry leadership position and secular trends, such as ECU consolidation. In Cyber Security, we received strong third-party validation of the effectiveness of our AI-driven, prevention-first suite of products, illustrating progress made with recent product launches.