Blackberry Limited · TSX:BB
Blackberry — Q4 FY2022 Earnings Presentation
44 slides from Blackberry's earnings presentation, 2022
Slide 1: Investor Presentation Q4 FY2022
INVESTOR PRESENTATION Q4 FY2022
Slide 2: 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 expect, will, should,
Slide 3: At the Heart of the Smart City
At the Heart of the Smart City IMAGINE T HE POSSIBIL IT IES © 2022 BlackBerry. All Rights Reserved. | 3
Slide 4: Q4 FY22 Financial Summary
Q4 FY22 Financial Summary % $ $ $185M 68% $0.01 $20M Revenue Non-GAAP Non-GAAP Adjusted Gross Margin1 Earnings per Share1 EBITDA1,2 $ $ % $770M $10M 91% $93M Total ending Operating Cash Flow Cybersecurity DBNRR2 IoT ARR2 Cash & Investments 1. See appendix for detail and reconciliation of non-GAAP me
Slide 5: Q4 FY22 Financial Summary: IoT
Q4 FY22 Financial Summary: IoT IoT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SEGMENT FINANCIALS FY21 FY22 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Segment revenue ($M) 29 31 32 38 130 43 40 43 52 178 Segment cost of sales ($M) 6 6 6 5 23 7 7 8 8 30 Segment gross margin ($M) 23 25 26 33 107 36 33 35 44 148 Segment gros
Slide 6: Q4 FY22 Financial Summary: Cybersecurity
Q4 FY22 Financial Summary: Cybersecurity CYBERSECURITY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SEGMENT FINANCIALS FY21 FY22 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Segment revenue ($M) 119 120 130 122 491 107 120 128 122 477 Segment cost of sales ($M) 47 46 53 46 192 46 49 52 47 194 Segment gross margin ($M) 72 74
Slide 7: Q4 FY22 Financial Summary: Licensing & Other
Q4 FY22 Financial Summary: Licensing & Other LICENSING & OTHER Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SEGMENT FINANCIALS FY21 FY22 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Segment revenue ($M) 58 108 56 50 272 24 15 13 11 63 Segment cost of sales ($M) 8 7 9 6 30 6 6 6 5 23 Segment gross margin ($M) 50 101 47 44 242
Slide 8: Q4 FY22 Achievements
Q4 FY22 Achievements First proof-of-concept BlackBerry IVY Announced expansion BlackBerry releases trial for BlackBerry IVY™ demonstrated running of collaboration with annual threat report, with Chinese automaker on auto-grade hardware Marelli, a leading Tier 1 highlighting a and leading Tier 1 at C
Slide 9: FY23 Revenue Reporting
FY23 Revenue Reporting SOFTWARE & SERVICES LICENSING & OTHER IoT CYBERSECURITY 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) Intelligent
Slide 10: Investment Highlights
Investment Highlights © 2022 BlackBerry. All Rights Reserved. | 10
Slide 11: Our Journey
AI in EPP & EDR BlackBerry Our Journey IVY™ From Wireless Security to Intelligent Cybersecurity UEM Unified Endpoint Security App Containerization QNX® Secure OS in Autos Smartphone NOC Mobile Device Management © 2022 BlackBerry. All Rights Reserved. | 11
Slide 12: 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 13: BlackBerry Customers and Partners
BlackBerry Customers and Partners TOP-TIER CUSTOMERS & PARTNERS1 Notes: 1. As at Q3 FY22. 2,200+ Partners Across Our Ecosystem © 2022 BlackBerry. All Rights Reserved. | 13
Slide 14: 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 © 2022 BlackBerry. All Rights Reser
Slide 15: Timeless Model Goals
Timeless Model Goals Q4 FY22 actuals Goals ~80% ~90% Non-GAAP Gross Margin1 (%) 68% ~80-85% Non-GAAP Operating Margin1 (%) 4% ~20-25% 11% ~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. © 2022 BlackBerry. All
Slide 16: IoT
IoT © 2022 BlackBerry. All Rights Reserved. | 16
Slide 17: 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 18: 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 19: 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 20: 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 © 2022 BlackBerry. All Rights Reserved.
Slide 21: IoT
IoT © 2022 BlackBerry. All Rights Reserved. | 21
Slide 22: 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 © 2022 BlackBerry. All Rights Reserved. | 22
Slide 23: BlackBerry IVY's Digital Ecosystem
BlackBerry IVY’s Digital Ecosystem Enabling a cross-brand, cross-model app & services ecosystem © 2022 BlackBerry. All Rights Reserved. | 23
Slide 24: 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 © 2022 BlackBerry. All Rights Reserved. | 24
Slide 25: 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 26: Cybersecurity
Cybersecurity © 2022 BlackBerry. All Rights Reserved. | 26
Slide 27: Spark Suite
Spark Suite AI-powered, prevention-first security that works smarter, not harder Cylance Cylance Cylance Cylance Persona Protect Optics Cylance Managed Detection & Response © 2022 BlackBerry. All Rights Reserved. | 27
Slide 28: Strong performance in independent tests
Strong performance in independent tests BlackBerry® Protect (EPP) and BlackBerry® Optics (EDR) were tested against a range of hacking attacks designed to compromise systems and penetrate target networks in the same way as criminals and other attackers breach systems and networks and provided “Comple
Slide 29: 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 30: 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 31: Cybersecurity
Cybersecurity © 2022 BlackBerry. All Rights Reserved. | 31
Slide 32: 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. © 2022 BlackBerry. All Rig
Slide 33: 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 34: Cybersecurity
Cybersecurity © 2022 BlackBerry. All Rights Reserved. | 34
Slide 35: 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 36: 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 37: Appendix (Q4 FY22 Financials)
Appendix (Q4 FY22 Financials) © 2022 BlackBerry. All Rights Reserved. | 37
Slide 38: GAAP Income Statement ($M)
GAAP Income Statement ($M) Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Q3-22 Q4-22 FY 2022 Cybersecurity $ 119 $ 120 $ 130 $ 122 $ 491 $ 107 $ 120 $ 128 $ 122 $ 477 IoT 29 31 32 38 130 43 40 43 52 178 Software & Services 148 151 162 160 621 150 160 171 174 655 Licensing and Other 58 108 56 50 272 24
Slide 39: Non-GAAP Income Statement ($M)
Non-GAAP Income Statement ($M) Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Q3-22 Q4-22 FY 2022 Cybersecurity $ 119 $ 120 $ 130 $ 122 $ 491 $ 107 $ 120 $ 128 $ 122 $ 477 IoT 29 31 32 38 130 43 40 43 52 178 Software & Services 148 151 162 160 621 150 160 171 174 655 Licensing and Other 58 108 56 50 27
Slide 40: Non-GAAP Reconciliation ($M)
Non-GAAP Reconciliation ($M) Non-GAAP Adjustments Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Q3-22 Q4-22 FY 2022 Debentures Fair Value Adjustment $ 1 $ 18 $ 95 $ 258 $ 372 $ (4) $ 67 $ (110) $ (165) $ (212) Restructuring Charges 1 1 - - 2 - - - - - Stock Compensation Expense 14 9 12 17 52 7 12 6 5
Slide 41: 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 Q3-22 Q4-22 FY 2022 GAAP research and development expense $ 57 $ 57 $ 53 $ 48 $ 215 $ 57 $ 58 $ 57 $ 47 $ 219 Stock compensation expense 3 2 3 3 11 2 2 2 2 8 Adjusted research and development ex
Slide 42: 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 Q3-22 Q4-22 FY 2022 GAAP Operating Income (Loss) $ (645) $ (22) $ (127) $ (313) $ (1,107) $ (58) $ (141) $ 51 $ 146 $ (2) Non-GAAP Adjustments to Operating Income (Loss) 643 81 139 329 1,192 35 111 (75)
Slide 43: Amortization Reconciliation ($M)
Amortization Reconciliation ($M) Amortization of Intangibles and PP&E Details Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Q3-22 Q4-22 FY 2022 Cost of Sales Amortization Property, Plant and Equipment $ 1 $ 1 $ 1 $ 1 $ 4 $ 1 $ 1 $ - $ 1 $ 3 Intangibles Assets 3 3 3 3 12 2 2 3 1 8 Total in Cost of Sale
Slide 44: investorrelations@blackberry.com
investorrelations@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