Blackberry Limited · TSX:BB
Blackberry — Q2 FY2022 Earnings Presentation
42 slides from Blackberry's earnings presentation, 2021
Slide 1: Investor Presentation Q2 FY2022
INVESTOR PRESENTATION Q2 FY2022
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: At the Heart of the Smart City
At the Heart of the Smart City IMAGINE T HE POSSIBIL IT IES © 2021 BlackBerry. All Rights Reserved. | 3
Slide 4: Q2 FY22 Financial Summary
Q2 FY22 Financial Summary % $ $ $175M 65% ($0.06) ($14M) Revenue Non-GAAP Non-GAAP Adjusted Gross Margin1 Earnings per Share1 EBITDA1,2 $ $ % $772M $12M 95% $89M Total ending Operating Cash Flow Cyber Security DBNRR2 IoT ARR2 Cash & Investments 1. See appendix for detail and reconciliation of non-GA
Slide 5: FY22 Revenue Reporting
FY22 Revenue Reporting SOFTWARE & SERVICES LICENSING & OTHER IoT CYBER SECURITY IP Patent Licensing Portfolio of 38,000+ patents Safety-Critical Real-Time Unified Endpoint Security + Operating System Unified Endpoint Management Technology Licensing (e.g., mobility licensing arrangements) BlackBerry
Slide 6: Q2 FY22 Financial Summary
Q2 FY22 Financial Summary IoT CYBER SECURITY Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 SEGMENT FINANCIALS FY21 SEGMENT FINANCIALS FY21 FY21 FY21 FY21 FY21 FY22 FY22 FY21 FY21 FY21 FY21 FY22 FY22 Segment revenue ($M) 29 31 32 38 130 43 40 Segment revenue ($M) 119 120 130 122 491 107 120 Segment cost of sal
Slide 7: Q2 FY22 Achievements
Q2 FY22 Achievements BlackBerry has design BlackBerry IVY™ to SE Labs awarded BlackBerry® UEM wins with 24 of the deliver secure vehicle- BlackBerry highest U-Series release delivers world’s leading 25 EV based payments, AAA rating in breach BlackBerry’s industry- automakers, who leveraging vehicle
Slide 8: Investment Highlights
Investment Highlights
Slide 9: Our Journey
AI in EPP & EDR BlackBerry Our Journey IVY™ From Wireless Security to Intelligent Cybersecurity UEM UES App Containerization QNX® Secure OS in Autos Smartphone NOC Mobile Device Management
Slide 10: BlackBerry: An Internet of Things Market Leader
BlackBerry: An Internet of Things Market Leader 500M+ 195M+ 24 / 25 38K+ Endpoints protected Vehicles protected by QNX Top EV Automakers Patents and applications AI/ML 18/G20 45% #1 Fortune 100 Frost & Sullivan Industry-leading Governments connected & Customers across BlackBerry IVY named a AI/ML-dr
Slide 11: BlackBerry Customers and Partners
BlackBerry Customers and Partners TOP-TIER CUSTOMERS & PARTNERS1 Notes: 1. As at Q2 FY22. 2,200+ Partners Across Our Ecosystem
Slide 12: Total Addressable Market (TAM)
Total Addressable Market (TAM) Large, growing market opportunities IoT ~$45bn IoT 2025: ~$15bn 2021: $89bn1 2020: $45bn1 Cyber ~$44bn $38bn Cyber ~$30bn 1. Sources include IDC, Gartner, McKinsey & Company, Data Bridge Market Research, VDC Research and Berg Insight
Slide 13: Timeless Model Goals
Timeless Model Goals FY21 actuals Goals ~90% ~90% 73% ~80-85% 8% ~20-25% 16% ~25-30% 1. See form 10-K for detail and reconciliation of non-GAAP measures to U.S. GAAP. 2. See Form 10-K for definitions of key metrics.
Slide 14: IoT
ko] #2 BlackBerry QINX.
Slide 15: Enabling Safety-Critical Embedded Systems
Enabling Safety-Critical Embedded Systems QNX provides foundational software that accelerates customers’ safety certification efforts QNX Software Development QNX Neutrino RTOS QNX Hypervisor Platform A deterministic, yet flexible An embedded virtualization solution The power of QNX Neutrino RTOS fo
Slide 16: Safety Certified to the highest level
Safety Certified to the highest level QNX OS for Safety Pre-certified to ASIL-D, the highest Automotive Safety Integrity Level defined by the ISO 26262 standard for functional safety of road vehicles. Also, pre-certified to IEC 61508 SIL 3 (Industrial) and IEC 62304 Class C (Medical) A full-featured
Slide 17: Addressing Automotive Secular Trends
Addressing Automotive Secular Trends AUTOMOTIVE SECULAR TRENDS IMPACT • Cars are becoming ‘smarter.’ • ECUs are consolidating to higher-powered chips, where QNX operates. • An increasing portion of new cars have a Autonomous Digitization significant software component. (Levels 2‒5) (Via connectivity
Slide 18: Addressing Automotive Secular Trends
Addressing Automotive Secular Trends QNX enables safety-critical software in the car Digital Cockpit Acoustics Secure OTA, Jarvis, Gateways Connected Services OTA Telematics ADAS, Active Safety Control Systems V2X Traditional Growth Secure Lifecycle Management
Slide 19: IoT: BlackBerry IVY
IoT BlackBerry IVY
Slide 20: 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 21: BlackBerry IVY's Digital Ecosystem
BlackBerry IVY’s Digital Ecosystem Enabling a cross-brand, cross-model app & services ecosystem
Slide 22: 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 23: 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 security culture of innovation • Deep knowledge of embedded automotive • Unmatched mac
Slide 24: Cyber Security
Cyber Security Black Berry Spal
Slide 25: Spark Suite
Spark Suite AI-powered, prevention-first security that works smarter, not harder
Slide 26: Strong performance in independent tests
Strong performance in independent tests BlackBerry® Protect (EPP) and BlackBerry® Optics (EDR) provided Complete prevention, complete detection and zero false positives in recent breach testing performed by SE Labs SE Labs is a private, independently-owned and run testing company and applied a range
Slide 27: BlackBerry's Prevention-first technology
BlackBerry’s Prevention-first technology BlackBerry’s suite of AI-driven, prevention-first cybersecurity products neutralizes many threats before the exploitation stage of the kill-chain. By stopping malware at this stage, BlackBerry solutions help organizations increase resilience, reduce infrastru
Slide 28: What is Zero Trust?
What is Zero Trust? Zero Trust architecture delivers continuous threat protection while maximizing user productivity 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
Slide 29: Cyber Security: AtHoc
Cyber Security @ BlackBerry, AtHoc
Slide 30: 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 31: 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 automatically communicate and coordinate if there is an incident? a response and short-term workarounds to redu
Slide 32: Cyber Security: SecuSUITE
Cyber Secuni a <=> BlackBerry. SecuSUITE
Slide 33: 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 never be bothered by adware or spam calls and messages on standard iOS and calls. Android devices. Control of M
Slide 34: 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 35: Appendix (Q2 FY22 Financials)
Appendix (Q2 FY22 Financials)
Slide 36: GAAP Income Statement ($M)
GAAP Income Statement ($M) Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Cyber Security $ 119 $ 120 $ 130 $ 122 $ 491 $ 107 $ 120 IoT 29 31 32 38 130 43 40 Software & Services 148 151 162 160 621 150 160 Licensing and Other 58 108 56 50 272 24 15 Total Revenue 206 259 218 210 893 174 175 Cost of Sales
Slide 37: Non-GAAP Income Statement ($M)
Non-GAAP Income Statement ($M) Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Cyber Security $ 119 $ 120 $ 130 $ 122 $ 491 $ 107 $ 120 IoT 29 31 32 38 130 43 40 Software & Services 148 151 162 160 621 150 160 Licensing and Other 58 108 56 50 272 24 15 Total Revenue 206 259 218 210 893 174 175 Cost of S
Slide 38: Non-GAAP Reconciliation ($M)
Non-GAAP Reconciliation ($M) Non-GAAP Adjustments (Pre-Tax and After-Tax) Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Debentures Fair Value Adjustment $ 1 $ 18 $ 95 $ 258 $ 372 $ (4) $ 67 Restructuring Charges 1 1 - - 2 - - Stock Compensation Expense 14 9 12 17 52 7 12 Acquired Intangible Amortizati
Slide 39: Non-GAAP Reconciliation ($M) (Cont.)
Non-GAAP Reconciliation ($M) (Cont.) Research and development Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 GAAP research and development expense $ 57 $ 57 $ 53 $ 48 $ 215 $ 57 $ 58 Stock compensation expense 3 2 3 3 11 2 2 Non-GAAP research and development expense 54 55 50 45 204 55 56 Selling, marke
Slide 40: Non-GAAP Reconciliation ($M) (Cont.)
Non-GAAP Reconciliation ($M) (Cont.) Adjusted EBITDA Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 GAAP Operating Loss $ (645) $ (22) $ (127) $ (313) $ (1,107) $ (58) $ (141) Non-GAAP Adjustments to Operating Loss 643 81 139 329 1,192 35 111 Non-GAAP Operating Income (Loss) (2) 59 12 16 85 (23) (30) A
Slide 41: Amortization And Reconciliation Details ($M)
Amortization And Reconciliation Details ($M) Amortization of Intangibles and PP&E Details Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Cost of Sales Amortization Property, Plant and Equipment $ 1 $ 1 $ 1 $ 1 $ 4 $ 1 $ 1 Intangibles Assets 3 3 3 3 12 2 2 Total in Cost of Sales Amortization 4 4 4 4 16
Slide 42: 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