BlackBerry pleases its memes followers with first quarter earnings beat

The shares of BlackBerry Ltd. rose about 1% in the extended session on Thursday after the company reported a weaker-than-expected adjusted quarterly loss and better-than-expected sales.

BlackBerry BB,
said it lost $ 62 million, or 11 cents per share, in its first fiscal quarter, compared to a loss of $ 636 million, or $ 1.14 per share, in the previous year’s quarter. Adjusted for one-time items, the company lost 5 cents per share.

Sales fell to $ 174 million from $ 206 million a year ago.

Analysts polled by FactSet had expected BlackBerry to report an adjusted loss of 6 cents per share on sales of $ 172 million.

The company highlighted its continued pivot from hardware producer to security software company, touting $ 107 million in revenue from its cybersecurity unit in the quarter.

“This quarter, we have aligned business around two key market opportunities: IoT and cybersecurity,” BlackBerry CEO John Chen said in a statement.

Although it told the Securities and Exchange Commission that it would stop doing so in 2021, BlackBerry continued its practice of reporting non-GAAP income or income that did not comply with generally accepted accounting principles.

On a non-GAAP basis, BlackBerry’s operating loss was $ 23 million, or 5 cents per share. Using GAAP, the losses more than doubled to $ 58 million and 11 cents per share, respectively.

Regardless of accounting practice, the online results seemed to appeal to supporters of the meme action. The after-hours move reversed a 3.5% loss in the regular trading Thursday, and sentiment volume from the exchanges and social media skyrocketed after the company’s disclosure.

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