BlackBerry first quarter revenue beats expectations, stocks rise

June 24 (Reuters) – Canadian security software provider Blackberry Ltd (BB.TO) beat Wall Street estimates for quarterly revenue on Thursday, supported by a rebound in demand for its QNX operating software and products cybersecurity.

The company’s US-listed shares rose 1.3% to $ 12.84 in extended trading.

Revenue fell to $ 174 million in the first quarter ended May 31, from $ 206 million a year earlier, but topped analysts’ average estimate of $ 171.25 million, according to data from Refinitiv- IBES.

Demand for cybersecurity services is increasing as businesses increasingly migrate to cloud computing to support remote working during the COVID-19 pandemic.

A boom in electric vehicle sales has also boosted demand for BlackBerry’s QNX software, which is primarily used in cars.

The quarter’s net loss narrowed to $ 62 million, or 11 cents per share, from $ 636 million, or 1.14 cents per share, a year earlier.

The company was also one of the “memes stocks” that received major investor attention after a social media-driven retail short-squeeze frenzy. BlackBerry shares have risen more than 90% so far this year.

Reporting by Eva Mathews and Niket Nishant in Bengaluru; Edited by Ramakrishnan M.

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