BlackBerry Ltd (NYSE:BB) stock fell 11.71% (As on December 21, 11:30:29 AM UTC-4, Source: Google Finance) after the company missed estimates for its outlook, even though it reported earnings and revenue beats in its fiscal third quarter. By sector, BlackBerry saw Internet of Things revenue of $55 million in the quarter, up 12% sequentially and 8% year-over-year and cybersecurity revenue came in at $114 million, up 44% and 8%, respectively. Cybersecurity billings in the quarter were $109 million and annual recurring revenue sat at $273 million as of the end of November. Licensing and other revenue accounted for $6 million in BlackBerry’s top-line figure. The company reported an operating loss of $11 million, with $271 million in cash, cash equivalents and short-term investments on hand as of the end of the quarter.

BB in the third quarter of FY 24 has reported the adjusted earnings per share of 1 cents, beating the analysts’ estimates for the adjusted loss per share of 4 cents. The company had reported the adjusted revenue growth of 3.5 percent to $175 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $165.15 million. The  IoT segment contributed $55 million, up 12% sequentially and 8% year-over-year. The Cybersecurity segment saw a more pronounced increase, with revenue reaching $114 million, a 44% sequential and 8% year-over-year growth. The company’s gross margin improved significantly to 73%, indicating enhanced profitability across its operations. The non-GAAP operating profit stood at $13 million, while the GAAP operating loss was $11 million. The company also reported a Cybersecurity Annual Recurring Revenue (ARR) of $273 million and Cybersecurity billings of $109 million.

Meanwhile, BlackBerry secures significant, multi-year deal to provide full suite of cybersecurity solutions to the Government of Malaysia. United States Department of Homeland Security awarded new PENS contract to BlackBerry, utilizing BlackBerry AtHoc critical event management (CEM) solution.

For the fourth quarter 2024, the company said it expects revenue of $150 million to $159 million in its fiscal fourth quarter, whereas analysts were expecting $200 million. For Q4 2024, IoT revenue expected to be $62 – $66 million, Cyber revenue expected to be $83 – $88 million and Licensing & Other revenue to be approximately $5 million.

The company’s strategic announcements, including the appointment of a new CEO and the divisional separation, are aimed at streamlining operations and maximizing shareholder value. The partial extension of convertible debentures and the repayment of $365 million of the 2020 debentures also reflect BlackBerry’s active management of its capital structure.