BlackBerry reported better-than-expected adjusted earnings for the sixth straight quarter, as the smartphone pioneer's shift to the higher-margin software business paid off, sending shares soaring more than 15 percent.
The Canadian firm also said on Friday it expects to be profitable on an adjusted basis for the second year in a row, and generate positive free cash flow in the year ending February 2018.
Waterloo, Ontario-based BlackBerry has focused on building a robust software business after scrapping production of its once-iconic smartphones, which lost favor with the arrival of sleek and fully-touchscreen handsets.
The company outsourced the development of its smartphones last year, signing a deal with Indonesia's BB Merah Putih to make and distribute new BlackBerry-branded devices. It has also signed similar deals with China's TCL and India-based Optiemus Infracom.
Adjusted revenue from the software and services unit, which includes mobile device management products and the QNX industrial operating system, rose 12.2 percent to $193 million in the fourth quarter ended Feb. 28, from the preceding quarter.
QNX is crucial to BlackBerry's efforts in the self-driving vehicle industry. The company already has a partnership with Ford Motor to develop autonomous driving software, and CEO John Chen hopes to forge such deals with carmakers around the world.