Blackberry Has Increased its Profits by 157% in 1 Year

Though BlackBerry has sold its smartphone division to third-parties like TCL after being compounded by loss after loss, you’ll be happy to hear that the Canadian company is doing better than people would expect.

Last quarter, the company reported profits of $49 million, up 29% from last quarter and more than double from last year ($19 million). This was at a revenue of $214 million, down from $238 million from last year. The news was appreciated by investors, which caused its share price to increase by 16%. The result was a product of calculated measure, as BlackBerry reduced its expenses and recorded growth in key areas.

The sales/marketing expenses dropped by 6% to $106 million, while those for R&D dropped by 15%. The biggest contributor to revenue was its enterprise-software division, which brought in $92 million, followed by technology-solutions, which achieved $49 million.

Newer areas such as the QNX platform for cars should start realizing their potential from 2019, as their implementation starts. BlackBerry has partnered with companies like Jaguar, Land Rover, Qualcomm, and Baidu in order to speed up the process, with further hiring and research expected to fall in this segment.

BlackBerry has not produced a phone itself since late 2016 when it decided to forego manufacturing in favor of licensing. Unlike Nokia, which has a single partner (HMD) globally, BlackBerry operates with numerous licensors for different markets, most notable being TCL and Optiemus.

While the profit figures are a far cry from their glory days, it is good to see the company is here to stay.