BlackBerry Has Reinvented Itself, and It's Done So Well That It’s Making More Money Than Analysts Thought

There was a time when BlackBerry reigned supreme in the world of smartphones. The Canadian manufacturer stood out for offering elegant, robust, secure devices with a physical keyboard. Many users, especially business executives, loved the email functions and the BBM messaging app.

However, the company fell victim to the revolution brought about by the arrival of the iPhone and later Android devices, starting with the HTC Dream. As a result, BlackBerry stopped making smartphones and made an effort to refocus its business strategy. Apparently, this move is paying off.

BlackBerry Can Still Surprise Analysts

On Wednesday, BlackBerry announced its financial results for the first fiscal quarter of the year. Surprisingly, the company reported revenues of $144 million for the period ending May 31, surpassing analysts’ estimates of $134.1 million.

The company also reported an adjusted loss per share of $0.03, as opposed to the $0.04 analysts had projected. This news caused shares of the U.S.-listed Waterloo company to rise about 7.2% on Wednesday, increasing its market capitalization.

According to Yahoo, RBC Capital stated that the company’s near-term profitability projection is improving. In other words, BlackBerry is still not profitable. Despite the positive results, it’s still losing money, specifically $42 million in the first fiscal quarter.

In any case, BlackBerry is doing things right. It’s currently focused on software and cybersecurity, targeting a market segment with significant growth potential. The company’s customer base includes enterprise and governments worldwide that depend on its services.

For instance, BlackBerry offers BBMe, a secure communication platform that operates across various operating systems. Additionally, under the Cylance brand, the company provides a range of solutions for cybersecurity incident prevention, detection, and response.

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In addition, BlackBerry has also made significant strides in the mobility and transportation sector. Its ADAS QNX platform is designed for advanced driving assistance systems and autonomous driving through software. BlackBerry IVY, for its part, enables manufacturers to profit from vehicle data.

Image | BlackBerry

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