Technology (QQQ) company BlackBerry (BBRY) stock rose ~23.0% in September 2017 to close the month at $11.19. It’s trading 68.0% above its 52-week low of $6.65 and 4.7% below its 52-week high of $11.74. BlackBerry announced its fiscal 2Q18 results on September 28, 2017, and the stock rose ~20.0% in the next two trading days.

BlackBerry reported non-GAAP (generally accepted accounting principles) revenue of $249.0 million with EPS (earnings per share) of $0.05. Analysts expected revenue of $221.2 million and EPS of $0.00 in fiscal 2Q18.

Software and Services segment drove revenue in fiscal 2Q18

Although BlackBerry’s revenue fell ~30.0% YoY (year-over-year) in fiscal 2Q18, revenue for its Software and Services segment rose ~34.0% YoY to $185.0 million. After its smartphone sales started to fall significantly in the last few years, driven by competition from Apple (AAPL) and Samsung (SSNLF), BlackBerry decided to pivot toward the software space.

BlackBerry’s Software and Services segment accounts for 75.0% of its total revenue. The company expects revenue growth for this segment at 10.0%–15.0% in fiscal 2018. BlackBerry has made significant progress over the last few months in key growth areas such as UEM (Unified Endpoint Management), connected car, IoT (Internet of Things), licensing, and cybersecurity.