Canada’s BlackBerry (BB.TO) exceeded first-quarter revenue expectations on Wednesday, driven by strong demand for cybersecurity services amidst rising online threats.
After trading hours, U.S.-listed shares of the company, known for its cybersecurity and data protection services for enterprises and governments, surged 7.2%.
Recent months have seen high-profile data breaches affecting companies like CDK Global in the automotive industry, UnitedHealth Group’s Change Healthcare unit, and Live Nation Entertainment’s Ticketmaster unit. Despite a broader slowdown in tech spending, these incidents have spurred increased cybersecurity investments by companies and government agencies, benefiting firms like BlackBerry.
For the quarter ended May 31, the Waterloo-based company reported quarterly revenue of $144 million, surpassing analysts’ average estimate of $134.1 million, according to LSEG data. BlackBerry reported an adjusted net loss of 3 cents per share, better than analysts’ expected loss of 4 cents.
Looking ahead, BlackBerry expects second-quarter revenue between $136 million and $144 million, with its cybersecurity unit projecting revenue of $82 million to $86 million. The company reaffirmed its full-year 2025 revenue and profit forecasts.
In April, BlackBerry also announced a partnership with Advanced Micro Devices (AMD.O) to develop robotic systems for industrial and healthcare sectors.
