Blackberry Limited · TSX:BB
Blackberry — Q1 FY2019 Earnings Presentation
22 slides from Blackberry's earnings presentation, 2018
Slide 1: BlackBerry Investor Presentation Q1 FY'19
BLACKBERRY INVESTOR PRESENTATION Q1 FY’19 BlackBerry Public investorinfo@blackberry.com
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-looking statements in this presentation are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used herein, words such as "expect", "anticipate", "estimate", "may", "wi
Slide 3: Strategy
STRATEGY 3 © 2018 BlackBerry. All Rights Reserved. 3
Slide 4: Our Vision, Our Mission, Our Value Proposition
OUR VISION A connected world, in which you are safe and your data is yours OUR MISSION To be the world’s leading provider of end-to-end mobility solutions that are the most secure and trusted OUR VALUE PROPOSITION BlackBerry provides the secure and trusted foundation for the Enterprise of Things 4 ©
Slide 5: Our Strategy
OUR STRATEGY Four synergistic growth engines, delivering the most secure and comprehensive Enterprise of Things (EoT) 1 Endpoint management 2 Embedded software 3 Appliances 4 Technology & IP licensing
Slide 6: Our Strategy Is Working: Endpoint Management
OUR STRATEGY IS WORKING Expanded reach in all operating segments in FY18 Endpoint Management (referenceable wins in FY18) 6 © 2018 BlackBerry. All Rights Reserved. 6
Slide 7: Our Strategy Is Working: Embedded Software and Licensing
OUR STRATEGY IS WORKING Expanded reach in all operating segments in FY18 Embedded Software & Asset Tracking (referenceable wins in FY18) Technology & IP Licensing (referenceable wins in FY18) 7 © 2018 BlackBerry. All Rights Reserved. 7
Slide 8: Our Strategy Is Working: Expanded and Engaged the Ecosystem
OUR STRATEGY IS WORKING Expanded & engaged the ecosystem CUSTOMERS • Over 120 Million cars • 100% of F100 largest • 100% of F100 largest media commercial banks & entertainment companies • 7/G7 governments • 100% of F100 largest • 89% of F100 medical • 16/G20 governments aerospace & defense companies
Slide 9: Our Strategy Is Working: Go To Market
OUR STRATEGY IS WORKING Expanded & engaged the ecosystem GO TO MARKET Channels Developers Engagement • 32% YoY growth in • 25% YoY growth in ISV • 167% growth in BlackBerry enterprise channels partners Security Summit attendance • 18% YoY growth in BTS • 29% YoY growth in • BlackBerry Analyst Day ch
Slide 10: Security and Mobility Leadership Recognized by Industry
OUR STRATEGY IS WORKING Our security & mobility leadership is recognized by the industry Named BlackBerry the highest scoring vendor in Named BlackBerry the highest scoring vendor in all six categories of their critical capabilities for workforce productivity & centralized content high-security mobi
Slide 11: Our Security and Mobility Strategy Is Industry Acclaimed
OUR STRATEGY IS WORKING Our security & mobility strategy is industry acclaimed J. Gold Associates IFY18, Google named BlackBerry an BlackBerry has completed a difficult BlackBerry is establishing its position as a “Enterprise Recommended” vendor. strategy pivot while delivering improving broad level
Slide 12: We Are Well Positioned for Growth
WE ARE WELL POSITIONED FOR GROWTH The Enterprise of Things era is upon us THE NUMBER OF CONNECTED ‘THINGS’ IS … MOST OF THE SPEND ON ‘THINGS’ GROWING RAPIDLY … WILL BE IN EOT ... Connected Things Exabytes data By 2021 By 2020 Consumer 51.5B 52,000 $1.29T by 2020 EoT 56% CAGR 51% CAGR … & SECURITY IS
Slide 13: Innovation to Extend Our Leadership
INNOVATION TO EXTEND OUR LEADERSHIP The BlackBerry Secure EoT Platform UEM UI Vertical Solutions Partner/ISV Apps • Connected Car • Secure manufacturing (Asset Management) • Rental Car App • Predictive Maintenance • Health Connect • Factory Automation App • Connected Factory • Static Application Sec
Slide 14: Financials
FINANCIALS 14 © 2018 BlackBerry. All Rights Reserved. 14
Slide 15: Business Outlook
BUSINESS OUTLOOK BlackBerry Enterprise BlackBerry Technology Solutions Licensing Steady revenue improvement, Double digit revenue growth, Continuous revenue improvement, access to enterprise clients increasing momentum strong future in EoT • Market leader in EMM - strong • Market leader in operating
Slide 16: Key Objectives for FY19 and Beyond
KEY OBJECTIVES FOR FY19 AND BEYOND Continue building momentum Timeless model Current performance Double-digit growth in software Accelerated growth from EoT FY18 results and services billings Recurring software & services revenue Recurring software & services ~90% revenue ~75% Positive EPS Gross mar
Slide 17: GAAP Income Statement ($M)
GAAP INCOME STATEMENT ($M) Q1-17 Q2-17 Q3-17 Q4-17 FY 2017 Q1-18 Q2-18 Q3-18 Q4-18 FY 2018 Q1-19 Enterprise Software and Services 82 84 87 91 344 92 91 97 108 388 79 BlackBerry Technology Solutions 35 38 43 35 151 36 38 43 46 163 47 Licensing, IP, & Other 25 16 30 56 127 32 56 50 58 196 63 Software
Slide 18: Non-GAAP Reconciliation ($M)
NON-GAAP RECONCILIATION ($M) Non-GAAP Adjustments (Pre-Tax and After-Tax) Q1-17 Q2-17 Q3-17 Q4-17 FY 2017 Q1-18 Q2-18 Q3-18 Q4-18 FY 2018 Q1-19 LLA Impairment Charges 501 - - - 501 - 11 - - 11 - Selective Patent Abandonment 2 - 1 1 4 1 2 - 2 4 - Goodwill Impairment Charges 57 - - - 57 - - - - - - In
Slide 19: Non-GAAP Reconciliation ($M) (Cont.)
NON-GAAP RECONCILIATION ($M) (CONT.) Adjusted EBITDA Q1-17 Q2-17 Q3-17 Q4-17 FY 2017 Q1-18 Q2-18 Q3-18 Q4-18 FY 2018 Q1-19 GAAP Operating Income (Loss) $ (655) $ (355) $ (114) $ (57) $ (1,181) $ 536 $ 22 $ (258) $ (17) $ 283 $ (65) Non-GAAP Adjustments to Operating Income 669 371 126 70 1,236 (522)
Slide 20: Amortization and Reconciliation Details ($M)
AMORTIZATION AND RECONCILIATION DETAILS ($M) CORE Charges (Recovery) Details Q1-17 Q2-17 Q3-17 Q4-17 FY 2017 Q1-18 Q2-18 Q3-18 Q4-18 FY 2018 Q1-19 Cost of Sales $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Research and Development - - - - - - - - - - - Selling, General and Administration (2) (2) (2)
Slide 21: Our Management Team
OUR MANAGEMENT TEAM John Chen Steve Capelli Sandeep Chennakeshu Charles Eagan Vito Giallorenzo Chief Executive Officer & Chief Financial Officer & Chief President, BlackBerry Technology Chief Technology SVP, Corporate Executive Chair Operating Officer Solutions Officer Development & Strategic Partne
Slide 22: Thank You
THANK YOU AS Pe