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September 24, 2020

BlackBerry ends growth slump with Q2 revenue and earnings beat

By Robert Scammell

Software company BlackBerry has reported a much-needed earnings and revenue beat in its Q2 results.

Overall adjusted revenue for the three months ended 31 August was $266m, while non-adjusted revenue was $259m.

This marks a notable revenue beat, with analysts predicting sales of $214.1m.

The Canadian multinational reported adjusted earnings per share of $0.11, while registering a $0.04 loss per share when using GAAP metrics.

Net cash generated from operating activities for the quarter was $31m.

BlackBerry revenue bounces back in Q2

BlackBerry, perhaps still most associated with its line of consumer mobile handsets, has struggled to achieve consistent growth since it pivoted to enterprise software. In the previous quarter, BlackBerry revenues were down 20% year-on-year. It was also the fifth consecutive quarter in which BlackBerry incurred a loss.

Its Q2 results mean it has achieved both sequential and year-over-year revenue growth. However, it reported a loss of $23m for the quarter, while adjusted Q2 net income was $62m.

The company noted a strong performance from its autonomous driving software this quarter, BlackBerry QNX, which was selected for use by South Korean automakers. Its remote working software also saw a spike demand.

“Continued demand for our secure, ‘Work from Anywhere’, solutions remains a major driver for our BlackBerry Spark business, which performed well this quarter.  Some signs of recovery in auto production point to sequential revenue growth and a return to a normal run rate for QNX by early next year,” said John Chen, executive chairman and CEO of BlackBerry in a statement.

“Continued QNX design wins and significant cybersecurity partnerships position the business strongly for the future.  We are also seeing positive signs from our focus on the key components of our go-to-market strategy, including: strong channel partnerships, marketing, customer success and investing in new talent for our sales force.”

BlackBerry’s share price jumped by nearly 8% following the publication of its Q2 results on Thursday. Its share price is down by nearly 20% since the start of the year.

Read more: Three top tips for optimal cybersecurity from BlackBerry’s CTO