BB - Earnings call transcript Q4 2019

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Operator

Good morning and welcome to the BlackBerry Fiscal Year 2019 Fourth Quarter Results Conference Call. My name is Mitchell and I will be your conference moderator for today's call.

During the presentation, all participants will be in a listen-only mode.

We will be facilitating a brief question-and-answer session towards the end of the conference. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. turn Christopher over Finance. Lee, to for our like call, today's Vice now the to presentation host I’d President of go ahead. Please

Christopher Lee

business and will Chen; call read results. regarding today and Thank fiscal then Executive After Chairman update conference to I Welcome Executive are provide Financial With fiscal Officer, forward-looking review Officer, Chief quarter Capelli. John call. the you, note results Chief will year statements, our financial on the me a cautionary and John XXXX and Mitchell. Steve fourth the BlackBerry Steve

We available session. section via Information will then the on open webcast general the to and call Investor be for the at a blackberry.com website. blackberry.com. This brief is public Q&A in numbers A call via replay call-in the also available will

statements laws. making of Harbor Safe forward-looking of today to made securities we provisions are Some be Canadian constitute pursuant and will and statements the applicable U.S. the

forward-looking model, as statements such by words and We believe, will expressions. intend, indicate using should, will, expect, similar

our the our to annual or materially statements in is expressed that MD&A. statements historical information actual forward-looking results company Forward-looking its factors perception factors well the estimates company's form, its other by or relevant. performance Report by company's made are and in and implied experience XX-F light assumptions of company as factors and in included discussed differ Annual could current future Form the are cause developments of the conditions that from expected as based Many the and believes those trends, including are risk which on on the in

Company revise on no and law. statements reliance as any obligation required not The to place You the intention company's or undue undertakes forward-looking except by forward-looking update no should has statements.

in As is John and annual non-GAAP call, results. the Steve summary numbers and customary our reference of their quarterly will during

over please and I to supplement now turn non-GAAP earnings published our call reconciliation see and the will numbers, a For today. earlier between the John. GAAP press release

John Chen

Thank everybody. you, morning Chris good

has Chris stated only earlier, reference in will non-GAAP I numbers As my summary.

quarter positive as fiscal So XXXX. BlackBerry as the and well very a had very,

start with results. me Let XXXX the fiscal

year. XXXX, the growth billing we many and we growth. in We in software XX% consecutive years free revenue revenue earnings that by we driven total share fiscal QX. of and generated reported services growth. the and violins shareholders. the and total time and profitable first pivot software we growth, we SS that fiscal our company And come company. revenue decline outlooks, it's reported a now in. successfully versus significant flow. years where total year-over-year $XX for the company This achieved the This software believe a milestone handset overcame indication four become fees. our to including have For clear both $X.XX quarter cash the growth was financial to quarter-to-quarter in the Double X% million is service we upon is digit is services services In in enterprise an growth In software -- achieved per $X.XX last total quarter X% delivered percentage revenue QX, company all This

to per the exceed and This record consensus revenue software quarter. the expectation enabling both the quarter results due and BlackBerry for services are in achievement earnings revenue to high the in total of share

IoT. platform participates are we is with of secure our machine it direction future Finally, added is for shaping next provide security learning integrated in and of fast that a generation BlackBerry Cylance security. The technologies Cylance. we market long-term endpoint our vision synergistic for which capabilities our growing completed AI Spark, the acquisition cyber the technology, communication and the

operating XX $X.XX, is XX%, an the reported as million, Total solid for million, percentage billion. quarter consecutive the a quarter. closing as $XX was fourth margin highest new revenue Gross both million, $XXX of total before quarterly as services income percentage the digit came operating was provide Cylance highlights company is Now some revenue $XXX software after Total a cash from this XX%, EPS year-over-year for Operating grew came software in the positive of ending and in fiscal. XXXX. and came quarter. X the in and billing point fiscal since for services company the let This the record well fiscal at was increase in the by as investment last for margin double me of margin at quarter. fiscal I high. acquisition came mentioned total as $X

Next, significant will primarily revenue quarter cover of declined accounting. due to services XXX and ASC impact software enterprise some the year-over-year, Fourth I highlights the business. by XX%

recall the quarter of comparative we the the impact that upfront to XXXX, worth XXX. approximately year-over-year related million that quarter reported we a fourth It $XX implementation license may of ASC You perpetual prior the last is this is in fiscal the of recognized XXX. to that noting

the continued orders Bank just Center, of Service from Air of in some the Canada, vertical, Navy, basis, quarter including and look strength Public from which vertical. we and all financial around progress announcement U.S. Scotland, After to few. In billings software in government came and Procurement expect Logistic U.S. services received the and The Billings we name government sector. Oman. underscore Federal quarter, in As major received Army, to other vertical, XXX from services Defense In the a mainly and made The orders two metrics the includes banking in in the notable XXXX. U.S. enterprise grew operational Force, over we fiscal services financial that our Police growth quarter the Service Austria customer world, government the on strongly the Agency, BLC see Computing we at a sequential [indiscernible],

SecuSUITE by for NATO selected government. were secure our solution, we First, voices for

States government creation is This company’s products that announced a and United FedRAMP of the other is that see ensure which our deploy course. in our countries and Washington are we we Government the future that reach based Solutions, model subsidiary all Second, the authorize. Blackberry within could the of with deepen will solutions DC

the positioned consistently but fiscal we regulated year, to only to demonstrated throughout As we in win the well were industry. not compete, have

largely track performer high Our revenue at our services BlackBerry September. in for grew strongest revenue digit quarter, Management sequential grew was platform Employee We're single on module a software the business, software in quarter also release which deferred Spark The services model. UEM, first the have the since we the fourth this and ratable percentage within still and enterprise Enterprise to Unified on the revenue a to basis. a transitioned

communication Blackberry the the address As a integrated platform IoT hyper needs reminder, in markets. connected to Spark is designed secure our

well driven Blackberry, me domain non-infotainment the came with Solutions services wins which digital XX move instrument QNX, will infotainment and license Assist, in one let applications. Blackberry software wins designs automotive. other are distributed Units. the has royalty Based architecture, Advanced across a across constructive In were historically are development be automotive increased we Growth recent BTS They quarter controllers our is for the of X XX both which QNX. by design and supplier, as for total So XX% Fourth embedded to Blackberry business. year-over-year as Control function trend market. to in in This wins our were cockpits, Electronic on been we customers of we the tier revenue. all the in is consolidating quarter XX Driver prominent Technology emerging the BTS wins, Three in -- ECU, by continue ADAS and the is as cluster many of mainly the grew an general selected revenue had seeing that a remaining year-over-year. automotive for where trend of software

and demand. are relevant very Our this safety certified current operating system market hypervisor for

announced of autonomous C$XXX XX safe automobile enterprise million and the During the secure next platforms. other years to of software and over develop for markets quarter, and other the generation investment we embedded future an

that's we have eight [ph] continuing of the customers we to of all investment I -- and going to the that to on a product Our this the -- serve our is added move now, including believe for stay Radar. Fleets, investment increase the ahead to and platform breath to to the Mexico, as and in Radar. In as are now expansion. And necessary international quarter future. help competition active the so safety I'm well autonomous new going continues Blackberry our brief

[ph]. We Faxovan also USA received repeated orders Bakeries, from nine and customers, including existing Bimbo

in actively perpetuity. to a We Throughout -- pipeline guess our number large refer engaged are up ramp by business going from which to it future, way, very till regarding in licensing. the continue our -- the companies I of and now from to now core revenue, as the with we other In look licensing IP we're volume. and

and strategy a to We to continue well monetize technology IP portfolio. execute our against

closer driven with early and result in quarter The licensing in actually revenue we opportunities business XX% highlighted we have on. was working you the increase performance fourth that the year-over-year. discussing been performance of the year were Our all an fiscal in by in have

also XXXX. I well individual to our contribution multiple week Enterprise a generated Cylance. was proactive acquisition security base. million of who This leadership, very based a revenue $XXX way, that expect interest in is a reach got announced small of fiscal which month, part medium managed Cylance is annual a licensing At last on customer BlackBerry a March, at Verizon a business as we're a service pleased thesis. first RSA. BlackBerry We attended business. -- experts word with attended selected positive this the validations a from start recently for to brief investment innovation the we channel, portfolio. release which and completed by steady our RSA, service off is BlackBerry By goal Cylance of February. our broaden you industry acquisition, bright around characteristics. a this recognized you their Based award of also lot security if RSA. behavioral BlackBerry on of on solution aware we Cylance of A -- to of revenue this working as CylancePERSONA, towards in the Verizon RSA Those the on managed partnership very Those cyber i.e. are and our pipeline, of year and our and guess lot as strengthen who be protection we're of

the me Before a let of Steve, to call over you key updates. personnel I couple provide turn

engagement. Boeing, as BlackBerry for an Bryan at background to as cyber-security first He specialist Officer. a VP the of has $X joined States Palma to our Pepsi, started the his and forensic a welcome Vice announced billion the an and Solutions Secret also Bryan’s President Bryan growth deliver The First, for I'm services Service. focus United pleased recently him excellent is Cisco. Senior Operating was Bryan for enabled business professional our a team. Chief addition and that of career and and his and CISO combination from Security President go-to-market Cyber of prior strong all organization to CISO

months team. for you added Stuart all last growth. as well seen, as against be the BlackBerry of have plan our to some we strategy talent for our add execute We strong the others team, will key with As Bryan to them in several to Cylance over profitable

For financial include services our will enterprise leadership CEO now the his report fiscal me. XXXX, and to the the team. performance. Solutions is Cylance provide lead turn role. business business, Steve as three lead CFO new BlackBerry to the BlackBerry software units, more will Capelli and now Cylance Steve will well our over Co-Founder of whose with will will organizing licensing conjunction will Bryan as IoT BlackBerry company Technology in Stuart, to which I call details business. the about lead

Steve Capelli

you, Thank John.

comment Before comment to like on XXXX. the I'd on fiscal quarter, I fiscal

mentioned, John outlook. we am financial I we pleased we would said XXXX what As regarding that do fiscal our did previously

the Cylance on in free More over gross closing ended a the revenue positive after cash year note flow and importantly, company cash $X total we XX%, generation growth, with high margins billion acquisition.

to fiscal quarter. non-GAAP revenue otherwise. performance the was revenue. on Note margin of $XXX quarter quarter We licensing million. non-GAAP financial will down company will GAAP a the comments primarily Fourth revenue revenue higher of due break million unless shortly. of fiscal mix the total to terms company in delivered company $XXX now XX%, and be my on gross quarter specified total I Now for fourth total

numbers record Operating $X costs not up primarily of expense non-GAAP and X% Our to a but stock exclude and fiscal million. our sequentially, quarter. of were $X for $X million Cylance compensation include gross acquired, restructuring million the our margin software revenue $XXX expenses week inclusion of about deferred million due of of in of

to and costs, acquired a and operating one-time restructuring integration million the amortization the of Non-GAAP expense, in non-GAAP settlement exclude $X Our million related fair with Non-GAAP in $XX the expenses acquisition Panasonic, in stock $X and non-GAAP adjustment million $XX was in $X and million income million a income quarter. intangibles, in value of was benefit EPS $X.XX $XX million million operating charges from comp $XX net million. debentures. on the was benefit $X of

in adjustments zero. our was revenue details. and BlackBerry adjusted software million, software adjusted a release Cylance Our the total X%. we with was software the XX% up to revenue total year services handset breakdown excluding in services was Solutions Recurring SaaS services quarter, Technology was representing a the and quarter, $XXX Please now This for for supplemental XX% of quarter revenue for XX%, last will will XX%. and EBITDA XX% GAAP of revenue and and licenses and non-GAAP definition I provide in for now margin accounted to previously refer software EBITDA the of XX% device licensing revenue, and was quarter. an $XX mentioned. accounted breakdown of total non-GAAP ratably. equates which table a in million provide recognize XX% accounted million include revenue to I quarter, the used for ago, revenue Enterprise was $X press from the further our the accounted perpetual total consistent the this

due balance were sheet the cash $X XX, closing and Cylance total $X.X from acquisition. our to cash, by billion the which investments of decreased on cash November moving flow billion, the Now performance, and equivalents to XXXX

million of and proceedings the the end before at $X considering to outlook. of my comments. operations now That million legal expenses, Free integration were $XXX $XX cash cash and the further million. $XX a quarter. positive John generated provide acquisition was position in flow was net cash restructuring Our to and impact million I'll the concludes call expenditures costs turn capital back was

John Chen

Steve. Thank you,

the I break outlook, fiscal me year by fiscal a I provide unit. XXXX for Before and year summarize will our down let business strategic priorities it

industry our to is BlackBerry our vertical For in expanded market IoT, that have have -- profitable increase to expand we vertical underweighted. that the starting been the in goal we growth, revenue drive been strong and share

profitability market goal BlackBerry increase its the course, our For burn. share to Cylance, is of while reducing and cash improving

For licensing, close a to higher of result look opportunity amount in that we revenue. recurring

innovation. expanding including our investing and We channel are reach for growth our

well probably both QNX capabilities anticipate to with the the in UEM we first. begun least product our and line. have machine AI We integrate And at at learning started the on beginning to as product as releases of XX months, UEM

between as growth to our accelerate is driven We will development business revenue in year total of fiscal XX%, the investing to growth We down believe a percentage Spark growth as come by a With between Revenue billings. follows. are in double-digit the increase is broken follows. context XX% IoT to our first look for also growth. the of internal XX%. for as XXXX unit that XX%

align than somewhere between month you'd be to faster around detail only between sharing on only silence business XXXX. the February combination million. from this X% growth be should the organic SS Service your enterprise $XX guess this million Also X% you XX%, expected closing deliver call historical XX around somewhere forward for forward million looking to expect feed with without $XX licensing recurring build XX% on call. opportunity to row summary, grow BTS UEM as upon expect base SAF a XX%. to year-over-year, the $XXX In this you of XX financial we licensing to to going expect between IoT blackberry unit I our the reporting. our we base. we help We're on with focus one We and revenue License, decrease to somewhere as model business. that ending

are stated Cylance basis, earlier, investing current with anticipate for future still a we're of investing being acquisition. full diluted and we year the profitable As Though on we a even growth. impact

call, accretive we the on second largely is and the standalone noted to that previously Blackberry acquisition operating year annual and the thereafter. unchanged. fiscal margin announcement As profile November in anticipated be gross

to fiscal year. be fiscal seasonality results our financial XXXX. fiscal capital with of expenditure anticipate of company exhibit million to This We tax anticipate we improve expense. related and million adding will We will intends $XX in last leverage XXXX operating throughout sold down change Cylance. break to the operating the and have last the are $XXX costs to total about costs we goods about we that million consistent have However, $XXX minimum year. The reported expense

So with you like the and the be Michelle, call with would please. -- Michelle? operator question to all a with definite number. that, answer would answers able final for I I to should But now up open come

Operator

Instructions] question from will Research. Fox [Operator come Steven Our Cross first from

Your is line open.

Steven Fox

morning. good Hi,

John Chen

morning, Good Steve.

Steven Fox

me from please. questions Two

consistent First when time your year sort But And a and roughly? obviously it you is Thanks. could of think forward? goes quarter-to-quarter, the free And your given the all, does John, I going the is and about to organizational out us on maybe seasonally as can change everything management cash of secondly, changes, burn should emphasis curious how we you've own on? Cylance, with if of color then was outline announced the the to when what terms in give declining we how going think their said all also your about up fairly business direction acquisition. you little you how plays maybe

John Chen

the to cash Okay, good. answer Steve. leave I burn will

and I busy. is no, about of also so more Cylance very communication that And important that sure So to I are the beaches but making the And -- the platform the we Blackberry sure reason projects company. there question the Steve, one being a I focus part need I'm is, really high golf side the in have the first some synergy, and will growth, make integrated big immensely the our think that IoT. technology. And company to internal courses buying and that maps all financial continue both And growth for on. as being into build out be

So I mean, initially, we I of work think both have were the I on and culture their well to will cultures, very well. balance now. seeding kind right

to excited at we're them. us, are Cylance very were people have and So to excited join

a there's hoping spend and lot so on more focused could to be the forward. in going work anyway, time that going strategy more So, of getting the company I

wasn't seasonality, there a there the So -- of quarter because much that's is basically. every they're that growth, of because really growing obviously,

at four less quarters if being four same you thing, lower kind And business, on a our enterprise you QX higher. the QX type look quarter so over on their. profound mathematics, -- see it being but and I basically of side little more bit profound mean,

Okay.

Steve Capelli

Okay.

first submit We we days April. Analysts submit to X by to business would done May which where all, hope of late Steven, So, a we on have that will report be before have acquisition deadline. our that is Day XX

about the weighted would gradually they for us. think expect amount accretive year But to XX a on heavily high cash, throughout profitability the year. really because in more that and in days, to losses recurring Obviously, say we're next to looking more as out would generation revenue do in or we QX the year, full mentioned have be cash So flow and decreasing moving we look QX. this have view. on at -- flow I come through, a of the you'll how basis, revenue did flow of cash better John that

Steven Fox

mail postures Great, send the when you chance. And get over some feel those beach that's helpful. of free to

John Chen

We'll do it. Okay.

Operator

Your Gus Macquarie. from Papageorgiou next question will from come

open. line is Your

Gus Papageorgiou

How guys. great a and on you quarter. guys. Hi, congrats are Thanks

licensing. couple on a Just the questions

$XXX said annually. I Steve, So you Is million that... think

Steve Capelli

for next year. No,

Gus Papageorgiou

Yes.

margin there gross it that keeping flat Cylance also for very actually that kind this week. think if -- year. trending mean, down? of only quarters. is margin, across you there Yes. -- on I the what is where strong quarter. And is we're profile the seasonality where Is a for know at What year, of next about we kind gross margin I or then, or is the gross that should pretty it any consistent For in

Steve Capelli

question. Great

QX probably we licensing did So QX. a on expect QX stronger and the the be as to the licensing uptick on QX year flat QX this an and would through model. component, I year

would on as combine a look say would greater the company, mid-XXs, say services Secondarily, at we and to proportion the two. margins, I the work professional gross XX% companies be when good if we when I you of has two number combine from. going a Cylance our forward

Gus Papageorgiou

Great, a lot. thanks

Steve Capelli

Yes.

Operator

question next Securities. with comes from TD Your Daniel Chan

open. line Your is

Daniel Chan

Thanks for taking my questions.

of So your can last XX% XX%. here? they you where the growth, kind to that doing about were What context assumptions expected of Cylance growth of are are of stated, factors they the put XX% changing in year's

John Chen

apple-to-apple small is because an [ph] I virus, because XX% then math plan the of is of bigger mentioned comparison, other or in I'm because numbers. a map to And don't one And is year although allergic remember Dan actually of their ours. we apple-to-apple you our was the comparison growth also abnormality fiscal of WannaCry it X% this, that. versus fiscal, into Petabyte number

and you're show you So, to that Steve mathematically, if interested. Chris

is So from historical actually that. than you look way to higher really their the need to X% XX% XX% at growth

Steve Capelli

so quarter the strong because way lose modeling you’ll that. your of of significantly the mention this than to is you'll see the prior think impact marketplace not we to released year less when on of and of I point it. even growing Dan, kind see, the I actually And that XXX% XXX%, then the is think that. a dated competition bars And in They reference our the do end the

John Chen

literally you a our we doubling be are number, Yes, public. growth the -- if are that we will competition map of

Daniel Chan

wondered we Okay, That's segment. helpful. enterprise to the very great. gears if Thanks. switch I could

licenses? If grew that I most that said as know when So there, more include considering you're to the customers, that expect can and segment mostly especially dropped get color it's of recurring gaining sequentially, if being some sequentially. now that should segment it occurring, UEM you you is perpetual recorded we increase?

this sequential did where from? come So decline

Steve Capelli

Sure.

mix. product So the the really it's quarter-over-quarter,

and nature As you recurring pointed that out, are there certain others are not. in that product are lines

as about to and fact last back is john that as remains the look XX%. due you mix, well billings that this you that spoke the substantial, was and fact -- see quarter, quarter XX% the and quarter-over-quarter can is recurring recurring XX% grew So

have we mix. revenue, So really that's the more immediate recurring, and less

John Chen

The of business higher actually ratable. on all And UEM percentage came they're that in. was

So or number up, -- that X% by the potentially up thus by the pushes our number of number. X% numbers ratable drops recurring revenue

Daniel Chan

just what more recurring if in, you revenue the licenses? number one was squeeze could that exclude perpetual I If

Steve Capelli

What recurring Well how we was total and the company that's report. we revenue? is XX% said

Daniel Chan

That What you… it include perpetual exclude you licenses perpetual were ratably. the as licenses record if those that to

John Chen

have -- very We few have this we very quarter perpetual.

Steve Capelli

Very few perpetual, so it would still be mid-XXs.

John Chen

Yes, will probably high-XXs. mid and

Daniel Chan

great. Thank much. very Okay, you

Operator

comes The Capital next question from from Paul Markets. RBC Treiber

is line Your open.

John Chen

Paul. Hey,

Paul Treiber

much Thanks very Hi. good morning, and guys.

in of licensing. IP Just the theme on recurring to revenue regards

time in $XXX I either the mix like mentioned think what's million outlook next quarter the of then run sort past, But level one base to and you or year the rate. the relative for recurring of versus the a year? in

John Chen

Go Steve. Yes. ahead,

Steve Capelli

Yes.

we don't our all, part IP of revenue first include So of as recurring percentages.

So kind tone I wanted of to first. set that

time million revenue, is piece recurring rest nature. the to $XX is million that more of still second one baseline it that say of $XX and we in is The

to you’ve seen, our a been to due we've as However, And kind deliver number above consistent numbers. pipeline. that's of able that due to

Paul Treiber

then… And Okay.

John Chen

one-time. still model, a in baseline your a use the of should the then basis, million come you quarter $XX the will you baseline, rest use So word above model Paul more that and $XX on should be million to

Paul Treiber

to patents XX the what Is or And the happens is then -- those And monetize to licensing in out to then, you replacing durability those like XX remaining the patents XX revenue are stream? you the in XX to years extent I picture IP patents. extend business. Okay. the sustain or can you opportunity the to of business, this so talked that think that years, to on and there's, the regards bigger about past,

John Chen

over we added patents in of it currently patents then to also a are well, XXX have there Cylance. from and application new Yes, set

filling are pipeline the we very rapidly. up So,

going a in innovation on the lot have We of, company.

be wouldn't out I running about our overly So concerned foot.

Steve Capelli

also QNX other and includes areas. And that patents

John Chen

It’s already there, yes.

Paul Treiber

Okay, thanks so much.

John Chen

Thanks. Sure.

Operator

question next from from CIBC. Todd The Coupland comes

open. Your line is

Todd Coupland

and outlook about see Enterprise together to the segments those for we Good you next I you know morning, how Solutions. wanted could I the look we up everyone. bundle two XX%. QNX should year? unpack if think But out as here to it XX%

John Chen

the UEM on of QNX range of and the the end low on high the end range.

Todd Coupland

Okay.

still from thinking demand. you in that UEM that? governmental That's about digits and how think you're regulated grow So the high-single can

John Chen

That’s absolutely. Well, better digits. high-single But I yes, little than hope correct. it's a that's

a the pipeline. product good QX lot and of on, have We sequential in I'm saw overly We we QX. concerned. a growth projects going not have new from

Todd Coupland

et Okay. And wins ramping, then, to the business you last had see years. cetera. to it's couple growth have design versus a overall you perspective wins, were on So, under you services been like? and What the okay, that growing that various have from areas like for the that is you get hard where I QNX, the revenue entertainment, of surface happening on you look XX% what's recurring us relative you to before because actually XX% at going then professional if have mix the in to XX%, and design just QNX ADAS that's

in Thanks. bridge the business? us going help what's on So

John Chen

you But of a these seat royalties And and development I than hope revenue I by win the And such you business. all throughout have Yes, to is type hope XX%, services. know a revenue and based we QNX quite upticking, UEM royalty in revenue is that, there model. faster set this going ratio something professional of QNX some well also remember brings large, have are QNX revenue, development that design is a as steady was years. as the design gradually wins

or good or be this you than more we're we unpack a little we how year a to bit that don't finished, we that's XX% just now year-over-year, into any and shouldn't year, fiscal going know me be reporting it, I So, drop want XX% last pretty higher. we might off even grew

So of difficult pinpoint it's different --- the numbers. to a little just kind exact

high-teens So environment. we growing model type the as on ourselves

Todd Coupland

differentiation lots us through last on Like understand question Cylance of noise are cetera. public, help if And some go to see story competitive a -- of sort Cylance, help just have I in the commentary? with that so, some investors market, peers like them of the sort of of et up bulking could to to of probably

John Chen

towards lot there will category, So, software, Cylance security which basically [ph]. the IoT that are third the two we Black, more the generation be like Cs, the this cyber second the to Carbon And of machine the company they in one there people and more -- endpoints, then the discovery and call attuned three a then a there first tied Stride of the generation to of are there side category is much are more are McAfee learning, refer one the Cloud themselves call and equation. three sorts. what’s have category, are lightweight and more anti-virus and player in AI will the you base, the Symantec the industry, company, And signature

definitely we anti-virus So, technology. threat second are and security newer the cyber detection prediction and generation generation, in

there analyst and protection, from EPP least remediation. predictive in number generation, on at are major called the one the ranked Cylance community, two remediation and is one on has So the EPP. the the the second called analyst been EDR more on EDR, is industry more detection -- EPP field, is is the community is one

the have our to obviously and the newest due and it, -- products RSA the -- diligence is this they the of done part they also. so refer I have set is And of reason announcement, EDR

So March. they just announced in that

handful pleased the in the pretty we're but how is top this technology and competitive is, definitely names though in So of market. with the

Todd Coupland

color. the appreciate Great,

John Chen

Sure.

Operator

come Mike will Canaccord from Walkley from question And our for Genuity. final today

line is open. Your

John Chen

Mike. Hi,

Mike Walkley

thanks. Hi,

had any closed selling your Just can talk the for to that month built XX% XX% there are that following synergies longer over just can feedback you more if into you've about guidance, now And share a Cylance of Thanks. term? in is you a initial it little from there here? customers up any cross on

John Chen

feedbacks are is Yes, A, mostly very Blackberry there strong, customers overlap interested. are very good the and laptops. very, news the PC and mobile, initial are is, Cylance on on

we provide assumed. our In now to is no there can end. So synergy end revenue math,

because Now are a from reason don't why we we assume products to PC revenue the integrating synergy have two is mobile. the

come in And will XX so product I as out first of said, the months. set and --

from catalyst And fiscal will so the next a be year growth that.

QNX a integrate have could we that fact about excited Cylance than two offering. we will Then that hopefully after wave quite the into I'm more two or So that wave.

Mike Walkley

question, just just year of a on Great, subs, total over any a platform? thanks. or quarterly -- rate you updates And you run the Radar little maybe my on have Radar Thanks. can a follow-up there after

John Chen

significant not BOCs out. it will are us to give [ph] it enough follow. well. break to numbers some rest gets the that very on it's When But now, to be Right for assured going we you

share. And business. buying couple mean always customers buy is customers have repeat speak. to the and a us but kicking so we're it large total small -- that to And all, of win win out our the But which that We happy rolling they're they new still are to going -- total tell we're very and it’s nice. ones, it's our doesn't going tire

Mike Walkley

thank Okay, you.

John Chen

thanks. right, All

be Okay. around Well thank you and your -- we'll any of to the question. part answer

So please do do statements. call closing you some give provide let me us. And

come Chris and Before you’d Day if end will I in Cylance. very Officer statement, like Chief have please of be it's Day Cylance San to everything California. the up about we filling there start The of founder there, be and is the is Product that the will an quickly know about to Analysts I and significance closing contact Ramon, Analysts April do talk

have in to and also the of going talk integration to about CTO We Cylance our UEM on product QNX.

lot they next the asked exciting technology. of A able were details being So questions summer these level has it’s provide. to pretty

of the it, security thing extremely which the competitive statement, strong portfolio onto assets has with So will closing market. ourselves software anyway, will the we of integration we the a to the obviously it is make evolved talk are that And that so in Spark us developing pleased enterprise BlackBerry platform, Cylance platform we about the BlackBerry, company. from

than We security reach. XXXX. our fiscal to there $X in generate expect more size billion solution of and our are revenue for not too company security many And

data a we significant and and privacy emerging how extremely security the is portfolio So that know market. to have relevant technology in IoT

the April. feel see the where we today. a will optimism very are much. we but in So company pretty and you this of And lot from all-in-all, that. about encouraging see Thank work you late very could hope hopefully to you good do, of Still we executing. And is are we I

Operator

for participation. Thank call. today's you your concludes This

You may disconnect. now

BlackBerry Limited (BB) 29 Mar 192019 Q4 Earnings call transcript