BlackBerry's (BB) - Get 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.
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.