Blackberry Limited · TSX:BB
Blackberry — Q4 FY2021 Earnings Presentation
39 slides from Blackberry's earnings presentation, Mar 30, 2021
Slide 1: Investor Presentation Q4FY2021
INVESTOR PRESENTATION Q4FY2021
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Safe Harbor Statement Some of the statements made within this presentation constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. Forward-looking statements are indicated by using words such as
Slide 3: BlackBerry Secures 96%+ of the Enterprise: Threat Landscape
70% of companies Over 50% of IoT Over 6K vendors, 30% of employees allow BYOD endpoints have creating point-to- have opened a BLACKBERRY SECURES been attacked point security gaps phishing email Human error is the cause of 90% of data breaches A new hacking attempt every 39 seconds 96%+ OF THE ENTERP
Slide 4: Q4 FY21 Financial Summary
Q4 FY21 Financial Summary $ % $ $215M $0.03 73% $804M Non-GAAP Non-GAAP Non-GAAP Total ending Revenue1 Earnings per Share1 Gross Margin1 Cash & Investments % $ ~90% $468M 91% $35M Recurring Non-GAAP Annual Recurring Dollar-Based Net Adjusted Software Product Revenue2 Retention Rate2 EBITDA1,2 Revenu
Slide 5: Q4 FY21 Achievements
Q4 FY21 Achievements BlackBerry expands its partnership BlackBerry QNX has design wins BlackBerry’s QNX Black Channel with Baidu, whose high-definition with 23 of the world’s top 25 Communications to be used in maps will run on the QNX® Electric Vehicle OEMs, who Motional’s (a JV between Hyundai Neu
Slide 6: Investment Highlights
Investment Highlights
Slide 7: 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 8: BlackBerry: An Internet of Things Market Leader
BlackBerry: An Internet of Things Market Leader 500M+ 175M+ 23 / 25 38K+ Endpoints protected Cars protected by QNX Top EV Automakers Patents and applications 73% 11% AI/ML $74M (+27 pts) (+16 pts) Industry-leading Free Cash Flow FY211 FY21 Gross Margin (and FY21 Operating Margin (and AI/ML-driven Cy
Slide 9: Investment Highlights
Investment Highlights Our mission is to enable security from IT to Internet of Leading software platform for the automotive industry Things (IoT) in large, critical markets Installed in over 175M cars across 45+ automakers Unique portfolio in a $38B TAM that is organically Design wins with 23 of wor
Slide 10: Business Transformation: From Hardware to Software
Business Transformation: From Hardware to Software FY141 FY211 Revenue $6.8B $0.9B GM %2 36% 73% Adjusted EBITDA $194M $167M %2 3% 18% FCF %2 ($393M) $74M (6%) 8% M&A BlackBerry Has Undergone a Significant Shift in Its Business Model and Financial Profile. Notes: 1. Amounts shown are non-GAAP. 2. Pe
Slide 11: 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 2,200+ partners and resellers across our ecosystem
Slide 12: Strategic Priorities
Strategic Priorities FY22 AND BEYOND – FOCUSED ON GROWTH Unlock synergies from Close pipeline Drive Professional Gain market share in Successfully bring integration of UEM and opportunities, grow Services both automotive new product Cylance and deliver on partnerships and expansion safety systems an
Slide 13: 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 U.S. GAAP. 2. See Form 10-K for definitions of key metrics.
Slide 14: Opportunities for Long-Term Growth
Opportunities for Long-Term Growth We have the right strategy, the right technology and are playing in the right markets. Accelerate Growth • Investing in growth • Sustainable revenue Opportunities • Opportunities to lead in growth large markets • Innovating and investing • Long-term value Capture t
Slide 15: BlackBerry IVY
BlackBerry IVY
Slide 16: BlackBerry IVY - Opportunity to harness data in the car
BlackBerry IVY - Opportunity to harness data in the car Diverse sensors generate huge amounts of data in unique formats
Slide 17: BlackBerry IVY's Digital Ecosystem
BlackBerry IVY’s Digital Ecosystem Enabling a cross-brand, cross-model app & services ecosystem
Slide 18: BlackBerry IVY's Addressable Market
BlackBerry IVY’s Addressable Market Access to standardized, intelligent insights leads to endless possibilities Automakers / Suppliers App Developers Consumer Services Smart Cities EV charging providers Insurance Companies Vehicle maintenance providers
Slide 19: BlackBerry IVY – Strategic Alliance for Co-Development
BlackBerry IVY – Strategic Alliance for Co-Development Why did we co-invest in this partnership to jointly build a single solution? • Trusted leader in automotive safety and • Leading global cloud provider with a culture security of innovation • Deep knowledge of embedded automotive • Unmatched mac
Slide 20: BlackBerry Spark
Black Berry Spalikg
Slide 21: Spark Suite
Spark Suite INTERACTION LAYER APPS + AGENTS + CONSOLES + MICRO-SERVICES Spark Suite Unified Endpoint Security Unified Endpoint Management Endpoint Endpoint Detection & SDK/API & Digital Rights Regulated Protection Response Custom Apps Management Controls Identity & Access Management UEM Express Suit
Slide 22: Why Unify Endpoint Security & Endpoint Management?
Why Unify Endpoint Security & Endpoint Management? TOO MANY VENDORS MOBILE IS VULNERABLE ENDPOINTS ARE CHANGING 70% 50% 40% of organizations will have of organizations will have of workers use wearables a unified console mobile threat defense as primary devices By 2024, the adoption of Windows 10, B
Slide 23: What is Zero Trust?
What is Zero Trust? AI SECURITY Behavioral Constant Analytics Monitoring HUMAN MACHINE Continuous Adaptive Authentication ZERO TRUST Policy The components work in concert as a foundation for a Zero Trust enterprise security architecture.
Slide 24: BlackBerry QNX
#2 BlackBerry QINX.
Slide 25: Secure Embedded OS to Secure the 'Edge'
Secure Embedded OS to Secure the ‘Edge’ SMART HOME SMART CAR SMART CITY Artificial Intelligence‒based Security Complex Domain Telematics Controllers Acoustics Secure Gateways Infotainment V2X CLOUD SERVICES Control Systems Instrument • OTA Clusters • Jarvis Digital Traditional Cockpit ADAS, Active S
Slide 26: BlackBerry QNX: Automotive Converging Trends
BlackBerry QNX AUTOMOTIVE CONVERGING TRENDS IMPACT • Cars are becoming ‘smarter.’ • Software is reaching more safety- critical parts of the car. Autonomous Digitization • An increasing portion of new cars have (Levels 2‒5) (Via connectivity) a significant software component. • Commoditization of har
Slide 27: Slide 27
Slide 28: Critical Event Management
Critical Event Management KEEP YOUR PEOPLE SAFE REDUCE IT DOWNTIME How do you communicate to your staff, In the event of a system outage, can you contractors, visitors and students quickly if automatically communicate and coordinate a there is an incident? response and short-term workarounds to redu
Slide 29: Critical Event Management
Critical Event Management • Notify anyone, anywhere, on any device. • Gather critical information from your people to achieve situational awareness. • Gain real-time visibility into your personnel status and location. • Communicate and collaborate with other organizations.
Slide 30: Critical Event Management
Critical Event Management END-TO-END CRISIS MANAGEMENT Plan Respond Collaborate Alert Collect Account Connect Secure Unified Mobile Flexible
Slide 31: BlackBerry SecuSUITE
a <=> BlackBerry. SecuSUITE
Slide 32: BlackBerry SecuSUITE
BlackBerry SecuSUITE Secure Voice & Messaging Sovereign Network Built to meet national security standards; Uses a closed virtual network, so you will offering end-to-end security for voice calls never be bothered by adware or spam and messages on standard iOS and calls. Android devices. Control of M
Slide 33: BlackBerry SecuSUITE
BlackBerry SecuSUITE EASY & INTUITIVE TO USE The app is easy and intuitive to use and offers high-quality voice on both Wi-Fi and cellular data. ENTERPRISE INTEGRATION It can also be easily integrated into your enterprise telephony system, making it the perfect addition to a secure working environme
Slide 34: Appendix (Q4 FY21 Financials)
Appendix (Q4 FY21 Financials)
Slide 35: GAAP Income Statement ($M)
GAAP Income Statement ($M) Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Software & Services $ 168 $ 168 $ 185 $ 170 $ 691 $ 148 $ 151 $ 162 $ 160 $ 621 Licensing and Other 79 76 82 112 349 58 108 56 50 272 Total GAAP Revenue 247 244 267 282 1,040 206 259 218 210 893 Cost of Sales
Slide 36: 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 Q3-21 Q4-21 FY 2021 Debentures Fair Value Adjustment (28) (23) (20) 5 (66) 1 18 95 258 372 Restructuring Charges 1 1 7 1 10 1 1 - - 2 Software Deferred Revenue Acquired 20 17 13 9 59
Slide 37: 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 Q3-21 Q4-21 FY 2021 GAAP Operating Loss $ (36) $ (43) $ (29) $ (41) $ (149) $ (645) $ (22) $ (127) $ (313) $ (1,107) Non-GAAP Adjustments to Operating Income 41 45 49 92 227 648 85 141 331 1,205 Non-GAAP
Slide 38: 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 Q3-21 Q4-21 FY 2021 Cost of Sales $ 1 $ 1 $ 3 $ - $ 5 $ - $ - $ - $ - $ - Selling, Marketing and Administration - - 4 1 5 1 1 - - 2 Total Restructuring Charges $ 1 $ 1 $ 7
Slide 39: investorinfo@blackberry.com
investorinfo@blackberry.com # B L A C K B E R R Y T R U S T | # S E C U R I T Y | # P R I V A C Y | # C O N T R O L