BB - Earnings call transcript Q4 2020

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Operator

Good morning, and welcome to the BlackBerry Fiscal Fourth Quarter and Fiscal Year 2020 Results Conference Call. My name is Josh, and I will be your conference moderator for today's call.

During the presentation, all participants will be in a listen-only mode. [Operator Instructions].

As a reminder, this conference is being recorded for replay purposes.

to of call Finance. like Lee, to now President Vice would turn over today’s Christopher I Please ahead. go

Christopher Lee

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

will open session. We then a the brief call Q&A for

public This the call is via blackberry.com. be available call-in section website. information the and to A in the webcast on will also general available via at replay numbers investor blackberry.com

constitute to and statements made intend, forward-looking statements Some similar expect, the indicate laws. such of and as expressions. the applicable should, U.S. harbor will, today pursuant provisions Canadian of securities using words forward-looking We'll model, statements we'll by making and safe are believe be

those negatively which annual global and fillings to and outbreak, differ are health, the performance These activity. Company's the coronavirus the and the statements conditions or statements. and light perception well public current factors factors COVID-XX is forward-looking believes based trends, Forward-looking are the are and historical MD&A or that future results include cause materially financial expressed from of relevant. assumptions economic on in developments by factors its made experience as implied could of the that risk discussed as expected Company impacting Company's factors Company its in markets actual the and by other Many estimates

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

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

EDGAR, GAAP today, numbers, SEDAR the are available and reconciliation please published the earlier earnings on For website. which and release non-GAAP supplement our see and a blackberry.com between press

I turn call to the John. over now will

John Chen

Thanks, Chris. everybody. Good afternoon,

acknowledge enabling about contain the including everyone our speak a we taking I employees. to software by to organizations products to all I’d COVID-XX offering are doing the license like lead the number customers our has limited of overcome help who’s And working Before virus. BlackBerry taken and a they community the can BlackBerry enterprise to for steps global results, days. world around for remote of free XX and the

Now, on results. to the

non-GAAP unless numbers As financial Chris summary results stated. in of reference otherwise stated, I our will my

the to off another fiscal start growth. year billion achieved resulting We're me Company in growth profitable revenue, Let year-over-year. by in year highlights fiscal XXXX, XX% entirely. for of BlackBerry pleased some report $X.X total

$XX Services Software per expectation share the of grew Positive revenue and free raised year. million. year-over-year. cash exceeded $X.XX, flow the this during we Earnings of XX% amount

best the products products. the Perhaps past in the released news fiscal released of strong year. XX We new set is over

So, give in you ISO really the excited some QNX one that highest X.X to the I’d Hypervisor the safety Safety, for about. of which standard achieved like industry. highlights we’re

and continuous security Intelligent to security uses authentication vulnerabilities. adaptive The AI to second to BlackBerry product, overcome which provide Security, static

portfolio endpoint endpoint well as Defense detection of both, deploy our MTD Mobile as Then, technologies. AI-based CylanceOPTICS, X.X, by platform agent management capabilities CylanceOPTICS Threat and that security the single with Third, to endpoint product. product enhanced a by CylancePROTECT our integrates our followed followed response product, our

the while mobile but and not do. business sorry, the a -- we for continuity. remote excuse the must productivity the workforce. by worker workforce, have have on secure desktop owned adding And secure Workplace or AI-based and need can which entire Digital not full be virtualization, Digital a This like eliminating Workplace, personally do force deployed solution protection. the VPN for and delivers lightweight final, peers BlackBerry Our last corporate used me, is devices sales

Additionally, we more later. platform. Spark about made will speak the progress the that of I development in tremendous

highlights for positive fourth Total Services provide quarter, Software in me billing let the fiscal year-over-year Now, fourth as some and million. $XXX growth. quarter. revenue We achieved came

a and Services. Software sequential have healthy performance billing from also We enterprise

$XX and Gross sequentially margin was and increase margin strong million million very was these $XX for $XX had which respectively expectations on cash million, $X.XX, total of contributing ending Both at XX%. we of in than from X% of million. operating to XX%. results $XXX Operating QX. flow quarter. income was are Free compared cash came $X.XX investment was the balance as a and EPS higher

business the Let's commentary. into move

better business. on Revenue licensing Let early. with performance me in came a with business due that year-over-year expected actually X% increased than start sentence some to

temporary quarter on we related expect slowdowns this shutdowns to global trend has the due Moving BTS COVID-XX. of slowdown primarily impacted in by auto business. chain the in industry been underperformed and IoT to due production to continue supply Unfortunately, due the BTS. The unexpectedly near the auto auto business to future the sales. over the IoT to

prospects was expected unfortunately to capital customers we transactions have that leading delayed. more in large cautious development. us that the indicator two and decision-making to Customer The were and related become reliable expenditure with

quarter returns delayed our fourth these results believe fiscal -- normal. were business While two transactions to will we as environment occur quarter the impacted,

were in design We to and in the chosen quarter, XX wins. On wins the market embedded a continued were positive were note, gain XX for XX market. in automotive general BlackBerry design QNX the

wins ARPU trend were and the instrument continue provider market, of the program, Tier the future the leading be of to wins few to to digital [indiscernible] driver-assistance in will customer ADAS, safety and and vast These to the like X advanced applications. name Bosch, software certified industry. the Within Continental auto for our majority cluster the a increasing of in came continue and volume secured design of just those

as quarters, been the increased Wabtec embedded in priority, solutions a at including Within And verticals, in leader by a noted year. market GE the priority we last chosen market, with has a Transportation last us for demand two in who stated global strategic and in saw general industrial general being BlackBerry. embedded Corporation, the medical transportation merged growth

continued the of on A in update fiscal in new radar resulting customers the the shipped X year. brief We growth both saw new revenue. units our business. number service we XX added customers, in and quarter, In

Additionally, customers. from repeat we buying continue have existing to steady

and to in Services The our in teens Enterprise executed on percentage. growth Moving team high sales Software a billing business. well, resulting sequential

Our fourth level its billing at highest quarter fiscal ESS was in XXXX.

endpoint ESS AtHoc. was by billing well all both the performance strong as led The strength the as UEM, the across from management businesses,

stable. regulated On business financial government front, such healthy the customer services our remains healthcare as and industry and

our notably vertical. as the manufacturing most We as also industry the utility vertical, business, strength non-regulated in experienced energy well and

size several new and both logos in upsell situation. added wins, large We competitive

company; Europe; Let Hopkins producers XXX provider General professional in Aramco healthcare defense leader; the of Saudi a leading steel transporters aerospace the highlight EVN CGI, Healthcare, world's Dynamics, few. me largest and a electricity global Steel, and Arabia; Group, of of a one consulting a and services in Fortune one producers. Nippon Johns and largest

building for well, is the MTD, products Defense, the pipeline for new Threat and the as notably BlackBerry Mobile our Our Security. Intelligent

current gen the the to following the is least, the or our protects generation the players whether sequentially Billing especially AV is cloud-only, and up Cylance only Cylance increased compatible on comp. protect AV Number all endpoints, to with being competitive and anticipated. connected in year-over-year reasons. other connected hybrid reasonably device highly mobile operating we best against lightweight of Number of cloud players tough three, we're next not. next solution when endpoint slightly Now, was the desktop. as because solution both we Revenue one, market. last they managed, Other deployment against We're Number two, not the models. cloud. BlackBerry’s BlackBerry business. support system, And on-premise are instead but on legacy our

quarter over customers. XXX of won Cylance new strong logo. new a was This

sell in relationships, based in that in Some environment insurance through Group, was won a Securities, of Services our service Fonterra Fortune the exporters. States. to health world's to managed Unfortunately, won vertical Financial name Australia. name. have Group, care don't the Hartford permission include notable company, leverage was a through dairy their we with Mizuho which in the Midwest Co-operative new the Verizon. opportunity leader organization a XXX financial logos A A partner state of cross services United largest competitive and our UEM

result, up million, was $XXX ARR X% As year-over-year. a

retention previously other said, I be with over quarter to year-over-year has the We And only continue in momentum portfolio market. believe customers. group like dollar-based XX% the rates ended the as XX%. subscription we will a Our growth BlackBerry capabilities BlackBerry net [ph] with Cylance now, active continue

call the to me you Spark platform turn over update Before the Cylance on integration. let and Steve, I our

progress made of tangible the platform. in IoT We secure Spark, a development have

zero platform machine trust layer that mobile of announced Unified our learning endpoints. Endpoint automation This across to and deliver we the past fixed February, within auto release AI, leverages Spark and Security or security UES the

work amount of the customer products, EDR; the data Secure set large EPP; address contextual is Platform, apply policy our of products Authentication, shared which dynamically the environment. These analyze on initial to Endpoint to DLP, are Mobile Defense, as MTD, seamlessly define known Endpoint Gateway. supported The based Continuous Loss and UES Prevention, risk, decision Threat together and layer by Protection Web Response, Detection risks a make Data X and and the controls of

Gartner Gartner their just XX% EDR UES by sees with will We and noted to development Threat development from and consolidation invest combined of is with year. line have council will organization X solution see XX% organization -- Gartner. and the line. up and that management platform during convergence this the platform the of combined also stack marketplace organization endpoint Unified X tools with forming Endpoint single XX% in of by the XXXX offerings stack in years to Our calling XXXX, need next which Security. by indicated is a MTD a noticed a EPP this Mobile Defense

entire unified these UEM Accordingly, progression, organization, sales Given IoT our product into and ready March importantly, teams to very believe message, was coverage, we most now and integrated customer and a R&D clearer product segment, go-to-market the our leads richer go just have business successfully after We ago. to a XXXX, offerings. the including UES team a and we sales marketplace broader effective synergies are which differentiated Cylance the month and increase opportunities. roadmap, X,

from value security any The management fixed more or with and a of that BlackBerry endpoint, highest a any mobile, to on any simpler a provides productive experience location user level network? is over proposition Sparks yet customer

market. complete have under you BlackBerry quarters much architecture ship that especially time in to UES actually to is We was you provide have you larger a development. of could with ready several our competitive the because it, tell on the UEM. now the the asked I about not solution products we're over only at players. Today, differentiated the in me working BlackBerry Many prospect than technology landscape, answer against past work

using competitors’ Intune, security be the than serving will with X future be enjoying the or of for competitors to both and as the of that management may customer BlackBerry Namely, customer give solution new our UES best worlds. other the roadmap, However, often of that Therefore provides. UEM we AirWatch made in recognize part higher compatible benefit investment products UEM our while products. more and our

changes our a non-BlackBerry direct competitor and UES continued market objective believe industry leadership dynamics, also, and regulator will maintain because We to And to the on the commitment due our is of in and is the to gain products. share, not UES complementary UEM management. BlackBerry competitive focus UEM our now security but

in believe addressable market, In total our including area. spot time, that architecture the expands IoT security we

about to Steve our over me provide to With details financial performance. turn more that, let

Steve Rai

Thank you, John.

for on release Please and and supplemental will refer quarter non-GAAP unless comments details non-GAAP reconciliation. to performance in noted. fiscal the table terms otherwise financial the press in for be GAAP the My our the

total revenue break GAAP We of and delivered of shortly. fourth $XXX total Company $XXX revenue I quarter Company million. non-GAAP million will revenue down

gross Fourth quarter Company XX%. margin total was

the continue invest operating demonstrate in particular and we of non-GAAP $XX the Our in stock entire not development expenses million recognized and gain discipline cross million. revenue And product million. million across operating quarter includes down at same $X acquired excludes continue to expense Fourth we leverage, deferred Company and to time, Cylance. go-to-market. $X At software of sequentially margin $XXX by but of gross compensation were

$XX operating of amortization exclude Our expenses non-GAAP GAAP to per about $X.XX million impact acquired intangibles, which in to equates earnings share.

of $XX value commissions software million $X million acquisition acquired, long-term integration exclude and non-GAAP charges, million impairment our charge deferred in on costs, in $X million expenses operating $X costs, fair in and convertible stock expense, restructuring to in asset $XX goodwill expense related $X debenture. for compensation adjustment the in million Additionally, million a the

per also operating Non-GAAP earnings was share net the Fourth income and quarter was non-GAAP $X.XX quarter in million, $XX fourth quarter. income non-GAAP $XX million. was

quarter, this million $XX was an excluding EBITDA the adjusted adjusted non-GAAP margin This XX%. Our mentioned. to equates EBITDA adjustments of previously

service breakdown XX% total continued Total the Company was legacy a given were business. revenue million, our to revenue expected fees, wind representing this of down revenue. provide is quarter. which of $XXX and Software Other in and revenue million, $X decline solely access now Services I'll of comprised were the of

and revenue services Recurring the excluding Services was Software revenue, licensing about quarter. in professional XX% IP and

equivalents Now, cash at our and $XXX moving $XX cash Total November by were cash, and XXXX, XX, to million balance February flow sheet which performance. XXXX. XX, investments million from increased

Our net position was quarter. cash of the at $XXX end million the

free were generated of restructuring and was was from operations million. $X costs million. acquisition capital proceedings quarter million before positive expenses, Fourth cash and impact integration the Cash flow considering and expenditures $XX $XX legal

our provide That financial for concludes back comments. XXXX. call outlook fiscal to John I'll turn my the to

John Chen

Thank you, Steve.

there's due provide agree, on uncertainty Therefore, for not BlackBerry XXXX fiscal COVID-XX. basis. specific a any a of the daily things it’s almost you are as changing all global I'm Currently, to the lot financial outlook to economy on across proven sure

However, make on to I'd some like macro our business. comments

revenue business workers continued be could dramatic the headwinds We product and other this to likely the or in continued industries. in how challenges enterprise negative remote capital global Our impacted workers. auto, of the and impact portfolio continuity sales. a well delay the services by well-suited same will expansion because auto of At partially offset, remote meet of as the to anticipate by number the driven most our as negatively time, be spending production is

offering for Situation product, productivity our new services the Workspace, as and and is Digital voice well SecuSMart, crisis entire including product, which the which communication crisis. text These security known managing is We solution. Cylance, best and the products secure Response solution, lifecycle AtHoc, are including of UEM solution

more demand. is our existing in being the working as and our we and cloud-based deployed. inquires customer, a managed licenses increases from and which detection growing including new in In are to of offering comes in and experiencing More fact, risks cybersecurity increased number endpoints Cylance transaction environment. are customer helping products Furthermore, response daily resulting CylanceGUARD, combat privacy remote BYOD

overall The While to past investment the year-over-year, in balancing has strongly track focused long-term predict Company profitability on it the financial business remains uncertain record XXXX. in in team the and the difficult managed and growth. for is management health a times volume through fiscal has

tough on the second anticipate XXXX, the our As it fiscal related to a the stronger due we value linger into our quarter shape versus changes year. this creation. to current of crisis of may business. half impact global the and a quarter, year fiscal the we strategy looking XXXX, This COVID-XX anticipate first do the profitability but thesis of any second half the long-term we and beyond growth When believe BlackBerry of of not fiscal first do

for I Q&A. would to now like up open Josh?

Operator

first We question Chan Instructions] will Our session. the now [Operator comes Securities. TD with Daniel begin question-and-answer from

Daniel Chan

particular, how capital are are for plans uncertainty, In the requirements? your the convert? much need about and what Given do how thinking macro you you

John Chen

Yes.

the after $XXX convert, We cash off we of all have paying million equivalent. have --

down made quite so, back $XX will payment. have couple stress we environment, test I'll year is our interest paying about news balance go Obviously, for million a in we some cash The one, of a save will good assumptions. a under And we back convert. the Number convert bit. pay that would a probably assumptions

And isn't We of as part very the you is of work I Last you the probably know also weeks, there than no do. better really well, being know is, assume available. financing much market done. reason couple

to is headcount we I for why back dramatic earlier, products. we growth. to starting cutback have of assume said the and up balance We or and no We will This But, things loosen very investment will we profitability a it’s think future. long-term assume normal, believe I no bit. little know pass, this we're know we going come to and strategy competitive financing.

put we want don't want So, don't the ourselves future. At financial same a to time, difficult in position. to we compromise the

So, disrupt that. to we're thesis. But that overhaul balancing we're our to saying we're going going working be investment not anything to

the revenue kind expect and which down extreme we not in modeling, anticipating. as of we are we background, quite you do by XX%, of comfortable, by through and just that’s anybody by coming XX%, would those we to condition, very in ran scenario XX%, a believe are Given

quite and able are last We liquidity the the be to for comfortable to years. -- financial health health couple of a

Daniel Chan

sense improving your of I want us it you that whether bit year-over-year? like Maybe see things you software and give anticipated? to are a way the gears side. give developing there. your sense shift enterprise us to a segment channel? how a go-to-market little software sounds the It the well enterprise of you Can Is grew

John Chen

I -- think and numbers. just Yes. I it's don't year-over-year have the

from healthy double-digit good. than are -- tell growth So, so seems I QX, we that very saw what a businesses can QX, you and over better billings perspective, The there.

We have a hiccup.

overcame hiccup. we think, the I

got very that people business. the businesses fall on more not through was going have -- for doing diligent renew We crack. us we the let committed it infrastructure back, A after won't up the our new for of and being doing some both build We stuff. this while really

as to think layers now, in logo. we overcome, So, after -- the have the are going of I and all logo the the renew that said, those new want I sell both business, new number

product, our which the could UEM Cylance, vice to sell now the more UES They We combination technology. have products, the believe included AI portfolio could as and of of UES sell. force a sales sales rep -- makes sales lot versa. I has UEM Cylance rep now The things force a the combined -- and we IoT other the UEM, mainly sell AtHoc one, bigger because now sales of into even the of this exciting more And now. Cylance with each

the align So, we good how territories. we good focus, about the feel we about feel

So, going is majority of our sales direct. still

in channel year. but are We towards probably this will of or that building that's probably the -- business, maybe the end midyear benefit kick year

Operator

next Daniel America. And question Bank comes your from of Bartus with

Daniel Bartus

to First, about the ask security. competitive I environment wanted endpoint for

one the well. like it seems CrowdStrike Microsoft endpoint business moves VMware potentially. and that to UEM you have integrate your And can as follow like on others security hand, with approach very So, the growing we And they have similar a the then, Cylance. classic have

security the the quick curious a have So yet get an update Cylance. on And it I UEM customers? combined would and follow-up. be to with you're if seeing a landscape great And for real just competitive I'm conversation is

John Chen

a is That Okay. good.

So, -- while it label, a little why win the of I to took sorry, to we not lay out, deals. label to lay out, some it Cylance

As I said Cylance in over quarter. logos XXX earlier, new has secured the

against it the we're names want where win the rate don't looks basically the And Cylance summarize, who A, looks leader; always somebody. we the waiting name I cloud. B, comes on like, so, And to need won, to winning against. don't we're it mobile like we’re

endpoint, the So, we that's protection secure and differentiators. do both on And the online. offline

of a the We have and now service managed full products. suite

that So, a is factor. also

those this detection UES, jumped whole and that feel is also tools Endpoint win. me, when surface, The and on-premise, So, threat those and three protection. I they it’s at of Gartner. combination is market confirmed exactly fixed, cloud of going Unified That's and look that called is manages where and things, a name of the the I by set has, which verified combination and the Security, are whole the management and and managed mobile out among the are segment, what -- portfolio other UEM at with Cylance

advantage there. of more players, big deals. against So, on of us of hopefully out then And happen big therefore that early win some and of hoping our we'll just And product. fair share the be provider I’m give competitive a we competitors much our to the

product. will traditional have that are security for about than our And cheaper license of provide look you we most are competitors lot me about that a example, better Finally, a the ELAX some question there be site we a licenses. much and everything year offer, for site you -- ELAX if asked [ph] of at

is not unlike ELAX. So, ELAX pretty,

So, competitive I out there. that could we believe be

Daniel Bartus

thinking strength. X% When that quickly Great. just turned really then to this you the or might XX%. And so we That's down very year, on helpful. And be out licensing year-over-year. entered guys surprise, segment then, it up were

at through throughout 'XX importantly, kind wondering, was you could the the this just some I changed fiscal So, licensing walk year. did come strength of what And expense strength? more if of

John Chen

The good Yes. it's because a very the was and mean, unfortunately, a good is very problem well just I it's like and that to you of -- it all enterprise transactions. that is predict I be hard more business than margin, know kind little the lumpy timing to conservative. somewhat

conservative. that because of So, always I'm

But in the been prefer still plan to would is think, it that it it to mark and XXX I I year. honestly. didn’t but I hoping about expect the I hard predict. strong really mean, better. to for a quarter, entire for do strong FYXX come this It's

Operator

next comes question Paul Capital Please go Markets. from RBC Your with Treiber ahead.

Paul Treiber

that BTS bit understand the in other there, contracted? that a there volume quarter? little items Just segment trying royalties tools licenses guess to or in may I And the to the like predominantly professional services, and or the more. are of decline the speak that from of production driven have like magnitude you then, nonrecurring Could is

John Chen

unfortunately, it's bit a Paul, of everything. little

royalties off, are down. So,

you figures by But still auto little little type. revenue it about it. are down. started the delayed. start -- going then, X a the didn’t sales projects. the won I call seats and believe all. And away at because looking they to new more that And projects the has the been you, of OEM. were lot immediate be We delayed Tier these the It's project developer They developer We we at business no become There's a higher, remind get the one-time, been They'll have the has and just projects, seats been a go that gone delayed, concerned. once those to are we cautious. question they have

That that. to because that they deploy And services, start they them also of course projects. down got down, normally, come help then, seats new once slowed the with of so professional and some slowed it has to the developer of portion

last is it to situation. don't unusual long. it rather And expect a I So,

is plan the do you of game Our course, a the from have which remote working Then the get they basis. remote also. work more professional to customers, authorization services on are to

so, go developer to than get should And because seats. that. be jam after need we And they buy is able then growth second will more to to thing

and the with just our going working are customers those come So, because not continue auto obviously, mean, is back. end. will two to I they this

So, come be. another It expect what a But it that's may they will back. quarter take quarter. I to about

Paul Treiber

helpful. That's

to you the Just longer shifting that and promotions of of in some to COVID-XX, Some you on in provide the regards that conversion potential uptake what you've implemented, expect update? or could announced, terms term? metrics

John Chen

are give the all is to Okay. guys -- record these need. to This mean, some in $XX and first least Customers pipelines, this but the people we the million, with In pipeline that cases, came know saw a yell good you because are this. update. going I actually is me strong my us one time. our think, you week, at appeal grew are probably process in I able, I'll at

So, I'm you not know. don’t anything that

So I we a have said, I don't software lot companies. is -- different so and of that situation do

this that So, want this, you I'm But, piece from whole benefit a that that crisis. all standoutish like have I very in environment to do an know not we are saying anything unfortunately, of business very just to you unique. and

so, in do And that okay area. we

tell will And only you. I metrics share could anybody you. the so, what that's than That's about with more

Operator

from Canaccord go with Walkley Genuity. ahead. Your comes next Please question Mike

Mike Walkley

kind on of be you like structure. the things we feel here, sounds good that. run How OpEx maybe imagine about should to a invest rate quarter to guys bit given OpEx type lack than think looking team an year but is want projects, rate of little entertainment cost a investment about? up level? place for again, expected the the like on with is calendar the Just could lower But, and in there following little for It and think this lower this just travel, a long-term, at

John Chen

calculate levels. a not did We have number we of that. I know

we of areas some course hire there of billable. don't are probably carriers, plan, people this of our lately, quota still that We but replacement attrition offers in example, for given headcount. make be were in we where environment, of hiring -- we'll people So actually

revenue us hired like help data it's specific, on could that recently a the just very the areas, strong we other So very scientist. And side. unless then,

might, have And references for global home from it so, much difficult the might and excellent it's down. not probably we And the and the we are because like just and just and the we that. people of course, we’ll a always home from And down, But be looking everybody's partly, takes work slow areas, slowing we -- working longer. to now. check it's processing, so interview check just do background other

say So, And be are of there areas out, some XX%, goes other you traveling that we in. of reduction Like look areas. and that conservative, that. there take carefully at cost spending some capital facilities, all. could we pointed is total. built out, Obviously, I'd natural infrastructures, very our Nobody that will at travel down costs kind literally probably even

Mike Walkley

follow-up my question. Just

revenue share is Just kind run calendar know, laid this might it up? there good circling was of rate out recurring number solid a with you you be strong, this but what as heading into year Thank which the back I to the licensing, for XXX year. a is? the the us Can recurring year you. coming piece, just feels for pretty

John Chen

it's came XXX I that because lot a year, you various it’s lot this credibility, to of believe don't time XXX. different whole and be we they I'm quarters. so year, Yes. time had about said years this model, to will tell realized about going believe last of fiscal the tell me planning coming you, -- is everybody But so XXX of on and have a my I I I a more. for probably I I as bit hope going year. In year, ton things, in a mean, Last year, through the the reasonable. little play of I in

Operator

Your from comes next PI question Financial. Gus Papageorgiou with

Gus Papageorgiou

questions. a what little a tell that you can us for? impairment, was $XX the couple Just million on bit, goodwill Steve, just

Steve Rai

the the there to were BBM no going I we operating think The piece. down that were it from time that. been were known that while And licensed. service to It year, we consumer we the This back was consumer. to shut impairment back has certain was a it amounts BBM the longer that naturally agreement. arrangement. in under licensing we a during since was eventually, $XX And to And allocate related the impairment was and And results receive that some had goodwill million.

Gus Papageorgiou

And and auto. guess then, I the just, on QNX

in is car of the seeing the you think should this are volumes pushed the volume short-term, a I it's modules. issue for your the we obviously, that but back is more growth ASP plan up adopt manufactures QNX pressure you increase think the here car do you Do again kind go should should as that still share short-term also software and under year we the market So, but for as -- in then -- ASP of part increase just should but to you increase or year? next well, get see going guess ASPs

John Chen

all we when look OCA. ADAS, ASP. clusters, design talk gone volume five short-term than win in wins in business. a a higher not base, It traditional up. Those about quarters Because instrumentation, the IBI ARPU hypervisors, ASP back the wins. announced in those the has last we results about you talked four, We the The the ARPU, is if three, carry

Gus Papageorgiou

Okay.

is they’re getting largely… deferred not this at just So, all,

John Chen

could we that see. Not

versus at it’s We less volume. -- are based really volume point, more on basically this

Operator

next question Please with ahead. from comes Steep Your Scotiabank. go Paul

Paul Steep

in? there? you a give bit to one seeing follow-up. what I'll you and Obviously And quick I’m you're us a -- AtHoc little that’s about talk maybe that John, assuming one area we've one seen then, lift can

John Chen

and Yes, this. like environment AtHoc

not and really followed a of are actually meant forces the federal the government, -- I then, And including government those the is States it strong who our we of meant United kind in over federal United AtHoc is in have haven't And very million in a for Canada I space, federal the of course and States X seats more and AtHoc government. forth. federal you -- of so government armed Everbridge, business, getting in -- really But which us in. security we and coordinate company privacy. the do, got on the we're we federal market, do lot they the into. and a beginning them don't exactly the are but to countries, they state, parliament out a and and which more GXX are really other we haven’t of public government local company, AtHoc There's a see space, uses of interested and called what education and we So

hiring we're that So, people building up.

like so, we which And we management looks proud our are a we're which of just latest lifecycle competitive. product, very opportunity And of, is growth. it that released this And of crisis. the is quite

a engine. be I is And so, growth good to going anyway, so think this

Paul Steep

or the area, looks to Cylance where then, marketing, are and Cylance, be, And and few head we being? one in operations current people title little field would think it the letting about talk got things you means? force? bit around, like Thanks. you changed any would a going last me environment? about would to then, You've How hold how you And sort growth just just see what a is capital secondly, recapture that of Great. or presumably to in the on saves maybe for of of the sales, integrated organization it the obviously redirect do go should you sales changes to any cost you from that to

John Chen

Yes.

back lot sales who team we I'm to between infrastructure like throw reps and when And around so the the So, that of combine A first you very Cylance. their pleased then the pick save luxury got I into legacy to BlackBerry infrastructure and costs traditionally management, it -- the management the two off, called organizations helps hiring have own that a will world.

equation the UEM tend and for is for fine -- pick a customer us. Spark, services which for they out run combination to field us marketing And sales, is the and with to works products. know So, Cylance

managers, So, to have the the a manager number we that. now or versus forth, -- And one have as we do so one cascade other down luxury regional levels, so picking of organization and person. right, we we country obviously of

are person structure us pick also an person. us geographies have person. there time, of very both gives a that gives At actually mind, cleaner that, opportunities and out and and the my promising strong and a very better opportunity same the to there regions number So in

which the AtHoc the to one side are deploy to QNX. of of solution two and a able SecuSMart We're business,

in solution So leading some have team Asia-Pac good example, we a like, really now for by people.

the simplification overall the And and we organizations. are taking of the of talent pool so, advantage

Operator

with comes Your next go Global Chowdhry Equities ahead. Please question from Trip Research.

Trip Chowdhry

your quick first, a in execution regarding good Very have I two terrible questions, environment. digital workplace.

the I they that the think, to those Do in in free is use -- sort more role? half. that? put I second second X question you're they on you you is an is, could you if video remarks and this be getting The rest? for viewing give you Any privacy. engagement prepared relationship OEM with uplift? have As Do in terrible mentioned providing think product product see think could companies Workplace, like issues thoughts playing Digital some months. Zoom Do are you to be Zoom business or some important of your popular, but security that

John Chen

Thank you.

us. new question slightly just it's the Digital not Workplace, been good of We product months. first we've on And early more a to Digital is It’s than probably of big So, to dent. process working make some this no home, brand Workspace. for movement it through remote a enough license tell, couple from seeing but released

on quarter it this, reserve huge I already, their from probably one has And a not two wait to put will comment CylancePROTECT or it. up every VPN So, because But by having BYOD, those on way. it's highly the to On certainly my we're putting in, now. and integrating a on deal. deal of we're with it picked of now able we're and environment being till desktops,

certainly hopeful thing. I'm so, the right we’re doing And

area. one So, that's

And privacy, is there container. works not Zoom in a and part is picking of Zoom of obviously yes, and and our other meaning concerns, the were Zoom just program, that because our up too. some bit quite players size it. security Zoom containerized reason of

will privacy it. a If security of and customer customer, already UEM both Zoom, BlackBerry secured, you UEM you be data the the running our in are

Trip Chowdhry

to wonderful, know. good That's really

we're container, it talking container, underlying way platform Endpoint have provides. dockers the as a into some in they your context? is customer whatever service containerized security the provide, So, is will of Is think the of default, if put same or Unified that about this containers different by I'm and Management, to in of is that context Basically, the I I about say correct it? level the

John Chen

Yes.

the was application I So, technology of combination device there. is software, and we the mobile a referring management. container to And is management our endpoint container use management which

of agent. outside protect wraps infusion and thread application the that around So, that every and

about So that I'm talking container.

Operator

the questions. have turn to closing Chairman Executive the to of would over for I time all is BlackBerry CEO That for we like John Chen, back call and remarks.

John Chen

your we Day, webcast you in you in Okay. just unfortunately thank of be But, much coming shut We Analyst webcast at speaking very April because Thank you. XXst, for need time on look -- April forward with to be to XXst. fun. which I the today. was It on having now will place. work our

add stay to crisis like your these this you pass. take together safe I’d one to And hope statement, and Lastly, healthy I this we through work challenged opportunity stay family to shall as and times.

very to forward for with interacting much Thank looking time. So, you. of you your all

Operator

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

now may You disconnect.

BlackBerry Limited (BB) 31 Mar 202020 Q4 Earnings call transcript