BlackBerry sales growth for IoT swings surprise profit

BlackBerry unexpectedly makes money from growing sales of IoT and cybersecurity products. The company's revenue increased in the fourth quarter of its fiscal year.

After BlackBerry Ltd. shocked investors with an adjusted profit in its most recent quarter and revealed robust sales growth for its cybersecurity and internet-of-things businesses, the tech company's shares surged more than 6% during Wednesday's extended session.

BlackBerry experienced a loss of $56 million in Q3, down from $495 million in Q1 last year. However, after adjusting for one-time factors, the company made three cents per share. A FactSet survey predicted an adjusted loss per share of 4 cents. Revenue increased from $151 million to $173 million, with $66 million for the internet-of-things business and $92 million for the cybersecurity company, a 25% and 5% increase year over year.

BlackBerry, once a status symbol in corporate circles, has shifted its focus to the internet of things, cybersecurity, and car software. The company projected a first-quarter fiscal loss per share of 4-6 cents on revenues between $130 million and $138 million, contrasting with FactSet's projected adjusted loss per share of 3 cents on $148 million in sales. For the fiscal year 2025, BlackBerry projected a per-share adjusted loss of 3 cents to 7 cents on revenues of $586 million to $616 million. Compared to the S&P 500 SPX, BlackBerry's shares have lost 38% over the last 12 months.