BlackBerry released its latest earnings report before opening bell this morning, posting an adjusted result that’s approaching breakeven. The struggling smartphone vender reported non-GAAP losses of 3 cents per share and revenue of $557 million, representing strong beats not only on the bottom line but the top line as well. Analysts had been expecting losses of 15 cents per share and only $489.06 million in revenue.
Shares of BlackBerry climbed by as much as 8.33% to $8.45 per share in premarket trading at the NASDAQ this morning.
BlackBerry cuts losses
BlackBerry’s GAAP losses for the third quarter, which ended Nov. 28, were 17 cents per share, compared to last year’s 28 cents per share. Total revenue increased 14% quarter over quarter. GAAP revenue was $548 million, including a purchase accounting write-down of referred revenue in connection with recent acquisitions. Non-GAAP software and services revenue skyrocketed 183% year over year and 119% quarter over quarter to $162 million. Adjusted EBITDA was $114 million. BlackBerry had $2.71 billion in cash and investments including the AtHoc and Good Technology acquisitions.
The company said it had 2,713 “enterprise customer wins” during the third quarter and that about 70% of the quarter’s revenue was recurring.
“I am pleased with our continued progress on BlackBerry’s strategic priorities, leading to 14 percent sequential growth in total revenue for Q3,” said BlackBerry CEO and Executive Chairman John Chen in a statement. “We delivered accelerating growth in enterprise software and higher revenue across all of our areas of focus.”
BlackBerry management remains optimistic
Chen said the BlackBerry Priv, their Android-based flagship device and the last hope for their smartphone business, has been “well received” since they launched it in November.
“BlackBerry has a solid financial foundation, and we are executing well,” he added. “To sustain our current direction, we are stepping up investments to drive continued software growth and the additional PRIV launches. I anticipate this will result in sequential revenue growth in our software, hardware and messaging businesses in Q4.”
BlackBerry still expects to be cash flow and adjusted EBITDA positive