BlackBerry Q2 Earnings: Revenue, EPS Beat Estimates Driven By Strength In IoT, Cybersecurity

BlackBerry Ltd BB reported second-quarter financial results Thursday after the bell. Here’s a rundown of the report.

Q2 Earnings: BlackBerry reported second-quarter revenue of $145 million, beating analyst estimates of $141.42 million. The company reported breakeven second-quarter earnings on an adjusted basis, beating analyst estimates for a loss of 3 cents per share, per Benzinga Pro.

IoT revenue was $55 million, up 12% year-over-year. Cybersecurity revenue totaled $87 million in the quarter, up 10% year-over-year. Licensing revenue came in at $3 million.

BlackBerry ended the quarter with $265 million in cash, cash equivalents and short- and long-term investments.

“BlackBerry reached a significant milestone on our path to profitability by recording breakeven adjusted EBITDA and non-GAAP EPS. This result was achieved through a combination of stronger-than-expected, double-digit revenue growth for both IoT and Cybersecurity, as well as tremendous ongoing progress in rationalizing our cost structure. Operating expenses for the quarter were 24% lower than the baseline for the prior year,” said John Giamatteo, CEO of BlackBerry.

“QNX delivered strong royalty revenue again this quarter, and there was year-over-year revenue growth for the secure communications products in our Cybersecurity division.”

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What’s Next: BlackBerry expects third-quarter revenue of $146 million to $154 million. BlackBerry sees third-quarter IoT revenue of $56 million to $60 million, cybersecurity revenue of $86 million to $90 million and licensing and other revenue of approximately $4 million.

The company also guided for breakeven third-quarter earnings, plus or minus one cent per share.

BlackBerry anticipates full-year revenue of $591 million to $616 million. The company anticipates a full-year adjusted earnings loss of 2 cents to 5 cents per share.

Management will hold a conference call to discuss these results at 5:30 p.m. ET.

BB Price Action: BlackBerry shares were up 0.79% in after-hours, trading at $2.56 at the time of publication Thursday, according to Benzinga Pro.

Photo: Courtesy of BlackBerry.