What happened

Shares of BlackBerry Ltd. (NYSE:BB) were up 9.9% as of 1:30 p.m. EST Wednesday after the enterprise software company announced better-than-expected quarterly results.

For its third quarter of fiscal 2018, BlackBerry's GAAP quarterly revenue fell 21.8% year over year to $226 million, which translated to a net loss of $275 million, or $0.52 per share. Excluding one-time items like acquisition expenses and restructuring charges, however, BlackBerry generated adjusted net income of $0.03 per share.

Analysts, on average, were looking for breakeven adjusted earnings on lower revenue of $212 million.

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So what

BlackBerry also saw double-digit percent growth in software and services billings for the second straight quarter. And excluding IP licensing and professional services, roughly 75% of its software and services revenue came from recurring sources during the quarter.

Executive Chairman and CEO John Chen stated:

Our momentum continues, with the delivery of a strong third quarter; I am very pleased with our results. Our progress, in both our financial and strategic objectives, is notable. We achieved records in software and services revenue and total company gross margin; breaking the
records we set last quarter. We expanded our position in key verticals and geographies, with many new partners and highly competitive customer wins.

Now what

BlackBerry clarified its guidance for the full fiscal year, stating it will likely arrive at the middle to higher end of its expected adjusted revenue range of $920 million to $950 million. BlackBerry also reiterated its expectation for adjusted earnings per share to be positive for the year. 

All things considered, BlackBerry's results weren't jaw-dropping by any measure, but it's certainly moving in the right direction. And given its quarterly beat and encouraging outlook relative to the market's expectations, it's no surprise to see shares climbing today in response.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of Blackberry. The Motley Fool has a disclosure policy.