BlackBerry beats estimate for revenue on strong demand for cybersecurity services

The result of large-scale data breaches

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, Reuters reports.

U.S.-listed shares of the company, which provides cybersecurity and data protection services to enterprises and governments, rose 7.2% after the bell.

Over the past few months, companies such as the car industry technology provider CDK, UnitedHealth Group’s (UNH.N), opened a new tab Change Healthcare unit, and Live Nation Entertainment’s (LYV.N), opened a new tab Ticketmaster unit faced large-scale data breaches.

Despite the wider slowdown in tech spending, high-profile hacks are forcing companies and government agencies to amp up their cybersecurity spending to safeguard their data against hackers and malware, boosting demand for cybersecurity firms such as BlackBerry.

With hope for the cybersecurity unit

The Waterloo-based company’s quarterly revenue stood at $144 million, beating analysts’ average estimate of $134.1 million, according to LSEG data.

The company reported an adjusted net loss of 3 cents per share for the quarter that ended May 31, compared with analysts’ average estimate of a loss of 4 cents.

BlackBerry expects second-quarter revenue in the range of $136 million to $144 million, whose mid-point is below analysts’ estimate of $142.4 million.

In its cybersecurity unit, which provides intelligent security software to enterprises and governments, the company expects second-quarter revenue to be between $82 million and $86 million.

It reiterated its full-year 2025 revenue and profit forecast.

Separately, BlackBerry teamed up with Advanced Micro Devices (AMD.O), and opened a new tab in April to develop a robotic system for the industrial and healthcare sectors.