Blackberry Limited · TSX:BB
Blackberry — Q2 FY2021 Earnings Presentation
23 slides from Blackberry's earnings presentation, September 2020
Slide 1: BlackBerry Investor Presentation Q2 FY'21
BlackBerry Investor Presentation Q2 FY’21 BlackBerry Public investorinfo@blackberry.com
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Some of the statements we'll be making today constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. We'll indicate forward-looking statements by using words such as expect, will, should, model,
Slide 3: BlackBerry secures 96%+ of the enterprise threat landscape
Over 6K vendors 30% of employees have 70% of companies 4M+ cybersecurity creating point-to-point opened a phishing email allow BYOD skills gap globally security gaps Over 50% of IoT 97% of cyberattacks endpoints have been are through the attacked endpoint Human error is the 79% of employees use caus
Slide 4: Q2 FY21 Financial Summary
Q2 FY21 Financial Summary $ % $ $266M $0.11 78% $977M Non-GAAP Non-GAAP Non-GAAP Total ending Revenue1 Earnings per Share1 Gross Margin1 Cash & Investments % $ ~90% $486M 92% $81M Recurring Non-GAAP Annual Recurring Dollar-Based Net Adjusted Software Product Revenue2 Retention Rate2 EBITDA1,2 Revenu
Slide 5: Q2 FY21 Achievements
Q2 FY21 Achievements Customer wins for new Partnerships with Vodafone, BlackBerry QNX and Desay BlackBerry Spark® Suites, Bell and TELUS. SV Automotive together continue to build, including: TELUS will partner to sell developed the autonomous • US Air Force BlackBerry® AtHoc®, the most driving domai
Slide 6: BlackBerry's Value Proposition
BlackBerry’s Value Proposition BlackBerry will be the must-have software provider for endpoints – how they are built, secured, managed, connected, and integrated via our open and OS agnostic ecosystem. BlackBerry will deliver a OUR AMBITION … “whole product” experience that helps organizations reali
Slide 7: BlackBerry: An Internet of Things Market Leader
BlackBerry: An Internet of Things Market Leader $1B+ 500M+ 175M+ 38K+ Cybersecurity Endpoints protected2 Cars protected by QNX2 Patents and applications2 company1 76% 7% ~90% 26% (+29 pts) (+12 pts) Recurring software product Y/Y Software and FY20 Gross Margin (and FY20 Operating Margin (and revenue
Slide 8: Investment Highlights
Investment Highlights Our mission is to enable security from IT to Internet of Things (IoT) in large, critical markets Unique portfolio in a $38B TAM that is organically growing1 Zero-trust based platform for security and management of all endpoints and users Combining next-generation AI with mobile
Slide 9: Business Transformation: From devices to software
Business Transformation: From devices to software FY141 FY201 Revenue (% YoY) $6.8B $1.1B (38% decline) (20% increase) GM %2 36% 76% Adjusted EBITDA $194M $149M %2 3% 14% FCF %2 ($393M) $14M (6%) 1% M&A BlackBerry Has Undergone a Significant Shift in Business Model and Financial Profile Notes: 1. Am
Slide 10: BlackBerry's Customers and Partners
BlackBerry’s Customers and Partners Top-Tier Customers Top-Tier Partners 18/20 #/# G20 GOVERNMENTS 9/10 #/# TOP GLOBAL BANKS 9/10 #/# TOP AUTOMAKERS
Slide 11: BlackBerry's Secure IoT Platform
BlackBerry’s Secure IoT Platform TRUSTED IOT SECURITY SERVICES Apps • AI Insights • Labs • Pro Serv Continuous Endpoint Endpoint Detection Mobile Threat Data Loss Secure Internet Authentication Protection & Response Defense Prevention Gateway UNIFIED ENDPOINT SECURITY Common Cloud & Platform Mobile
Slide 12: BlackBerry Spark
BlackBerry Spark Solving the enterprise’s top priorities INTELLIGENT MOBILE & SCALE ACROSS ONE SOLUTION TECHNOLOGY CLOUD FIRST THE ENTIRE IOT for UEM & UES, to that evolves ahead of for secure, remote to address the simplify risks, complexity your needs business continuity expanding landscape & cost
Slide 13: BlackBerry QNX
BlackBerry QNX Secure embedded OS to secure the ‘edge’ Cloud Services OTA Jarvis Artificial Intelligence Based Security Complex Domain Telematics Controllers Acoustics Secure Gateways Infotainment Smart Home V2X Control Systems Instrument Clusters Traditional Digital Cockpit ADAS, Growth Active Safe
Slide 14: BlackBerry Secure Communications
BlackBerry Secure Communications Keeping you safe, secure and your data private
Slide 15: Strategic Priorities
Strategic Priorities FY21 and beyond – Focused on growth Unlock synergies from integration of Close pipeline opportunities, grow Gain market share in both automotive UEM and Cylance and deliver on partnerships, and increase market safety systems and other general Spark, our end-to-end, unified platf
Slide 16: Timeless Model Goals
Timeless Model Goals Goals Recurring Software Product Revenue2 (%) ~90% Gross Margin1 (%) ~80–85% Operating Income1 (%) ~20–25% Adjusted EBITDA1 (%) ~25–30% 1. See appendix for detail and reconciliation of non-GAAP measures to US GAAP 2. See Form 10-Q for definitions of key metrics
Slide 17: Opportunity For Long Term Growth
Opportunity For Long Term Growth W E H AV E T H E R I G H T S T R AT E G Y, T H E R I G H T T E C H N O L O G Y A N D A R E P L AY I N G I N T H E R I G H T M A R K E T S • Investing in growth Accelerate Growth Sustainable Revenue Opportunities • Opportunities to lead in large markets Growth • Innov
Slide 18: Appendix – Q2 FY21 Financials
Appendix – Q2 FY21 Financials
Slide 19: GAAP Income Statement ($M)
GAAP Income Statement ($M) Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Software & Services $ 168 $ 168 $ 185 $ 170 $ 691 $ 148 $ 151 Licensing and Other 79 76 82 112 349 58 108 Total GAAP Revenue 247 244 267 282 1,040 206 259 Cost of Sales 70 68 69 70 277 63 60 Gross Profit 177 176 198 212 763 143 1
Slide 20: Non-GAAP Reconciliation ($M)
Non-GAAP Reconciliation ($M) Non-GAAP Adjustments (Pre-Tax and After-Tax) Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Debentures Fair Value Adjustment (28) (23) (20) 5 (66) 1 18 Restructuring Charges 1 1 7 1 10 1 1 Software Deferred Revenue Acquired 20 17 13 9 59 8 7 Software Deferred Commission Acq
Slide 21: Non-GAAP Reconciliation ($M) (Cont.)
Non-GAAP Reconciliation ($M) (Cont.) Adjusted EBITDA Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 GAAP Operating Income (Loss) $ (36) $ (43) $ (29) $ (41) $ (149) $ (645) $ (22) Non-GAAP Adjustments to Operating Income 41 45 49 92 227 648 85 Non-GAAP Operating Income 5 2 20 51 78 3 63 Amortization 53
Slide 22: Amortization And Reconciliation Details ($M)
Amortization And Reconciliation Details ($M) Restructuring Charges Details (Pre-Tax) Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Cost of Sales $ 1 $ 1 $ 3 $ - $ 5 $ - $ - Research and Development - - - - - - - Selling, Marketing and Administration - - 4 1 5 1 1 Total Restructuring Charges $ 1 $ 1 $
Slide 23: "== BlackBerry.
"== BlackBerry.