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BlackBerry Surges After Reporting a Non-GAAP Revenue Beat

BlackBerry sees revenue jump during the third quarter as the Canadian security software company booked more business.

BlackBerry's (BB) - Get BlackBerry Limited Report stock price soared Friday after the one-time mobile phone company, which now focuses on security software, posted a revenue beat, albeit with numbers that don't comply with generally accepted accounting principles, better known as GAAP.

Shares of BlackBerry jumped 8.78% to $6.32 a share after the Canadian tech company, which also makes software for driverless cars, reported non-GAAP revenue of $280 million for the third quarter, for an increase of 23% from the same period last year.

That beat the nearly $272 million quarterly revenue estimate of analysts surveyed by FactSet.

However, BlackBerry's GAAP-compliant revenue numbers, while an 18% increase over the same period last year, rang in at $267 million, or $5 million short of the estimate of analysts.

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BlackBerry also reported non-GAAP earnings of 3 cents a share and operating earnings of $20 million.

While that beat the penny a share estimate of analysts surveyed by Zacks Investment Research, BlackBerry's GAAP-based earnings were not as rosy, weighing in at a loss of $29 million, or 7 cents a share.

The loss includes $35 million in "acquired intangibles amortization expense," as well as $15 million in stock compensation expenses and $10 million in restructuring charges, the company said. BlackBerry also reported free cash flow of $41 million for the quarter. 

In its third-quarter earnings report, BlackBerry explained its decision to emphasize non-GAAP compliant numbers along more standard numbers that adhere to generally accepted accounting principles.

"The Company believes the presentation of these non-GAAP numbers enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods," BlackBerry stated.