BlackBerry (NYSE: BB) reported its third quarter financial results on Friday morning. The Company topped analysts’ earnings and revenue estimates, which sent shares higher by 10% late morning.
For the quarter, BlackBerry reported non-GAAP earnings of USD 0.03 per share on non-GAAP revenues of USD 280 Million. Analysts anticipated earnings of USD 0.01 per share on revenues of USD 271.9 Million.
While BlackBerry surpassed revenue estimates, the Company’s GAAP revenues missed expectations.
BlackBerry started its quarterly financial press release stating its non-GAAP metrics for the quarter, which is a practice normally shunned by the Securities and Exchange Commission, according to MarketWatch.
The Company reported that its non-GAAP revenue rose by 23% year-over-year, while GAAP revenues increased by 18% year-over-year.
Total non-GAAP software and services revenue was USD 275 Million, up 26% year-over-year. Third quarter recurring software and services revenue was over 90%.
At the end of the quarter, BlackBerry’s North America segment reported total revenues of USD 188 Million, accounting for 70.4% of its total revenues. In comparison, BlackBerry’s North American market only accounted for 66.8% of total revenues.
Meanwhile, BlackBerry’s Europe, Middle East and Africa saw its revenue share dwindle. The segment delivered revenues of USD 60 Million, accounting for 22.5% compared to 24.8% in the same period last year. BlackBerry’s other regions segment remained unchanged in terms of growth, however, its revenue share decreased from 8.4% to 7.1%.
“BlackBerry achieved sequential growth in revenue across all of our software businesses while generating healthy non-GAAP profitability and free cash flow as we continue to invest in our future,” said John Chen, Executive Chairman and Chief Executive Officer, BlackBerry. “I am pleased with our progress. Our pipeline is growing as we deliver against our product roadmap and execute on our go-to-market expansion.”