(Reuters) – Canada’s BlackBerry Inc said on Wednesday its first-quarter sales beat expectations, helped by robust demand for its cybersecurity services due to growing online threats.
The company, which provides cybersecurity and data protection services to businesses and government agencies, saw its U.S.-listed shares rise 7.2% after the close.
In the past few months, companies including auto industry technology provider CDK, UnitedHealth Group’s Change Healthcare division and Live Nation Entertainment’s Ticketmaster unit have faced major data breaches.
Despite a general slowdown in tech spending, high-profile hacks have forced businesses and government agencies to increase cybersecurity spending to protect data from hackers and malware, increasing demand for cybersecurity companies such as BlackBerry.
The Waterloo-based company reported quarterly revenue of $144 million, beating analysts’ average estimate of $134.1 million, according to LSEG data.
The company reported an adjusted net loss of 3 cents a share for the quarter ended May 31, compared with analysts’ average estimate of a loss of 4 cents.
BlackBerry expects second-quarter revenue in the range of $136 million to $144 million, below the median of analysts’ expectations of $142.4 million.
The company expects second-quarter revenue of $82 million to $86 million from its cybersecurity division, which provides intelligent security software to businesses and governments.
The company reiterated its full-year 2025 sales and profit guidance.
Separately, BlackBerry partnered with Advanced Micro Devices in April to develop robotics systems for industrial and medical applications.
(Reporting by Priyanka G in Bengaluru; Editing by Alan Barona)