BlackBerry stock surges as first-quarter results top estimates on QNX, cybersecurity strength

Blackberry (TSX:BB) shares jumped astir 21% connected Thursday successful New York and Toronto aft the Canadian exertion institution posted first-quarter fiscal 2027 results that bushed expert expectations, driven by double-digit maturation crossed its QNX automotive bundle and Secure Communications divisions.

Revenue for the 4th came successful astatine $152.9 million, up 26% twelvemonth implicit twelvemonth and good supra the expert statement of $138.2 million.

Adjusted net per stock of $0.04 topped estimates of $0.03, portion adjusted EBITDA surged 144% to $36.3 million.

The institution besides reported operating currency travel of $4.6 cardinal for the quarter, marking its archetypal affirmative fiscal archetypal 4th successful 9 years, excluding a patent merchantability successful fiscal 2024.

Both QNX and Secure Communications achieved Rule of 40, a benchmark that combines gross maturation and profitability borderline and is wide utilized to measure bundle institution performance.

QNX, Blackberry (TSX:BB)'s embedded operating strategy concern serving the automotive and concern sectors, posted gross of $72.3 million, up 26% twelvemonth implicit year, with adjusted EBITDA rising 52% to $19.3 million.

Secure Communications, which serves authorities and endeavor customers, generated gross of $73.6 million, a 24% summation twelvemonth implicit year. Adjusted EBITDA for the conception much than doubled, rising 110% to $20.2 million. Annual recurring gross for the part stood astatine $220 million, with a dollar-based nett gross retention complaint of 92%.

Licensing gross was $7 million. The institution held currency and investments of $422.9 cardinal astatine 4th end.

For the 2nd quarter, BlackBerry guided for gross of $137 cardinal to $148 million, adjusted EBITDA of $20 cardinal to $30 million, adjusted EPS of $0.03 to $0.04, and operating currency travel ranging from breakeven to $10 million.

Full-year guidance calls for gross of $594 cardinal to $621 million, adjusted EBITDA of $119 cardinal to $139 million, adjusted EPS of $0.16 to $0.20, and operating currency travel of astir $100 million.