BB - Earnings call transcript Q3 2021

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Operator

Good afternoon. And welcome to the BlackBerry Third Quarter Fiscal Year 2021 Results Conference Call. My name is David, and I’ll 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. reminder, is a replay recorded As purposes. Instructions] this being conference for [Operator like call turn Foote, would to I now today’s Relations. BlackBerry over Investor Tim to Please go ahead.

Tim Foote

a to XXXX Thank After third results. today I update Steve will note Chen; are business Chief cautionary me And and Good and you, call regarding welcome read review Chair John Officer, David. on the our quarter conference will earnings Steve forward-looking Rai. Executive financial fiscal Executive call. Chief With afternoon. Officer, provide BlackBerry’s and statements, the John Financial

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 calling the also available will

our this to slides These we noted afternoon, live during announcements. press relate shown As earlier IV slides today’s BlackBerry release be will webcast. the recent in

the are access calling not the webcast, you via of Investor the on for those available blackberry.com. Information section on For joining at slides you the numbers, to

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

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

risk are and in results believes filings expressed or implied the including statements. expected future are developments, COVID-XX factors annual include These that forward-looking based historical Many or and to those factors company statement of discussed and the conditions the factors and from by could performance that made cause light relevant. pandemic. its other company company’s in MD&A, as company’s Forward-looking the experience differ on assumptions the actual estimates current the the materially by factors as of its trends, are perception well

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

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

see reconciliation earlier are the between and a please published to release the non-GAAP available press I’ll numbers, blackberry.com EDGAR, websites. which that, earnings For on over the John. call SEDAR and our supplement GAAP with And turn and today,

John Chen

afternoon, relatively continue delivered provided. everybody. and IV fiscal announcement. because to keep spend I’d and as and Software Tim. to BlackBerry on little third the time recent Services Good financial line growth from I’d we business Today, Total discussing we like BTS. quarter well the brief, to Thanks, the a bit build outlook more updates in our This second in as section momentum sequential quarter, We results our our delivering revenue with both like

positive flow -- deliver revenue and this company positive BlackBerry reported million. to EPS continue revenue quarter. total free $XXX of We cash

XX%. million. combination $XX Earnings Services X-X-X. was million. Gross and ARR XX%. start million was our share was is and UES, Net Services in Cash $XXX to margin as Total million, commentary base was of $XXX with Spark and was a a retention it’s churn License the was rate my UEM per cash revenue reduced at approximately the I will was at from million. November a customer endpoint and net $XXX -- security positive Group. reminder, operations $XX X%. investment around XXth offerings. ending $X.XX. business unify combination Software Software Dollar of came [ph]. generated

Citibank, the Department of India the Bank the and good Raymond well including the in made Bundesbank, Services Government IRS, the James Government as wins Raymond of Postal German Financials Financial with Rwanda. Financials, Department both progress Energy, This customer Army, and James of as Justice, Service, the quarter -- U.S. we U.S. of verticals sorry,

BlackBerry quarter upgrading Boerse, the we to we me, and Suite. wins Bank, we Spark in customer suite, released healthcare progress including Deutsche have quarter, continue in Dutch Deutsche and Excuse verticals in example including Significantly UES manufacturing. the our the ConvergeOne i.e., BlackBerry adding customer during Ministry Cyber suite, addition, UEM multiple to full other Government. the In see of

prospect Cyber and experts. the been offerings, Suite including be Further Microsoft provide Cyber cybersecurity has and Suite month. industry leading the EPP, the will significant best interest further version market. It as competitive Research Intune, with of base, Suite the of allow Cyber UEM both This the all the is mobile AI industry EDR other the together additional security to our strong, which integrated integration logo But is authentication market been UEMs. that a in Cyber Suite quarter. This player in growth rival users threat will validated MaaSXXX. IBM capabilities. investment. both Cyber is combines VMware’s traditional to Our and and only to options increasing well available existing Workspace greater Suite, us ONE, our product. protecting defense cybersecurity Cyber BlackBerry for XXX their by powered customer This new Cylance the pipeline and brings continuous UEM by with our Mobileye, has MDR against customer strengthened in and for highly major next-gen in as give Suite past early BlackBerry obviously allows and technology. while this

step enhancement marketing technology and positive a sales in will customer more investment compete we turn to As in our aggressively. of up and result receptivity, these

to I’d have Before I move to we achieved. highlight BTS, security the certifications like

-- or we Network that FIPS more last vulnerabilities awarded having including of think Certification This XXX-X. has BlackBerry. Department time software BlackBerry our at National Commercial have portfolio approval then U.S. about the quarter, Solutions been the Security BlackBerry receive security NSA U.S. have certification by comfort I Program of achieved they higher cybersecurity space a for received IN-APL state Agency, protection BlackBerry. of BlackBerry the when other give achieving by HINAPL, prospect national approval. cybersecurity of NSA, competitors Government quarter, certifications exploited being should we a the NIAP by Defense Government comes customer been vendor from in No Classified the called identified most about This degree UEM major the adds hackers. Federal to and UEM, This talked the nation product Information list, which Certification, with are our

the BTS Now its embedded QNX rate run quarter moving have year. revenue QNX is to reported sequential normal to component wins, six XX on sorry, early remained and fiscal to of in next we a XX X-X, growth. new back market. largest in BTS, design In auto a on generally track be designs, by

traffic wins controller, instrument the Seoul’s design electric [ph]. in vehicle. in handful and of system The couple including Our in we In the have domain wins expansion full designs, into Sunan ADAS system included advanced wins, a them diverse sorry, for of them a driver-assistance, the turbines, cell a kinetic a driver-assistance. management with auto from Subway and cars rail advanced continues, controller gen next-generation a power receiver which system clusters,

we’re wins Speaking market calendar of XX which EV XX vehicle of pleased the the electric with has of half together market. position first EV now share the in to with vehicles, top this very of designed XX% you QNX year. strong our the in electric has OEMs,

the We’re six. remaining working to recruit hard

quarter State primarily Secure had secure some including Moving FAA. Rehab, entire no can strength to pandemic. one California. Department the quarter, well of working, or Rehabilitation transition & claim includes Administration, the communication renews upsell accelerated the greatly have the quarter. including Corrections Army, win AtHoc by Justice. notable as now remote of I due -- Federal the as States as been well to Corrections well which Rehab the Department from obviously on and this AtHoc to Navy, strong Secusmart. Air power in Force, California -- United to of strategic was the we as as has and believe ongoing communication, & AtHoc this has that California which This a Aviation Department as of Other

U.S. We -- also of Agency, Commerce the as FEMA, Agricultural, Intelligence the U.S. renewed Federal Agency. the Management Treasury and Energy, well Defense Emergency as the Department

want $XX came to Revenue licensing. in touch quarter the on Finally, for at million. I

majority from the revenue before, the As licensing of IP our comes licensing business.

[ph] beginning the time like call, data. the spend very IV, some of of cars I’d BlackBerry generate amount which mentioned I Modern to continue As we’re excited about. at discussing huge

allow a use all the capture models IV’s mission BlackBerry analytics on because gather, and developers and intelligent and brands securely data auto to the value make is cars will to you transport a common insights costly difficult and The analyze to think I from these know. cost data application these in multiple ecosystem collect efficient across to to This prepared global easy integrations. platform. create you very to is and not a scale. on industry is interact provide without data it the a agree, with standard way and

engineer BlackBerry co-development and exclusive agreement into terms all side We AWS. have the BlackBerry have of agreement very jointly a AWS. type will with share relationships rare. key build Each the to our Under agreement -- platform. closely required. own entered with the capabilities AWS This been is of and a contributes multiyear customers revenues working entered co-marketing with we commercial and the

cars. QNX of of a XXX auto relationship, huge as as side BlackBerry On experience, footprint well over million industry brings the BlackBerry XX over as as years well

provide as are consumer a expertise as trusted end-to-end full a and the security we’re is and platform. a vast safety with largest able community a system. of cloud Combined, developer in IoT. automotive interfaces, We to software with provider leader AWS well knowledge world’s deep outstanding experience,

model already We some XXXX received with successful BlackBerry feedback. targeting subscription revenue is data proven positive the automakers to and important access a to competitors is model to developed in target creating difference it. that revenue usage, their An with we’re IV, process. apply to time, builder services with The expect will granted were IV discussion as that BlackBerry an allow and OEM help who revenue the With the AWS we services initial is own of over we work on well auto data -- the and the the developer between customers. communities a platform potentially with on that IV ecosystem early have -- base. with and business in apps recurring we BlackBerry We model possibly XXXX years a space recurring professional drive of be the this relationship in some as

will to market that, increase more too ASP. us outlook, for a that Steve IV to greatly let over call is very our that a With BlackBerry our addresses the of large me opportunity are details provide performance. it revenue financial confident to early While turn provide we

Steve Rai

$XXX performance John. million. and quarter you, non-GAAP non-GAAP financial of the our refer the details. total press the will unless Please be total noted. for in GAAP company in release GAAP to terms comments and otherwise My company the table third first, million $XXX Thank revenue the delivered sorry, supplemental for on for quarter We non-GAAP fiscal of revenue

company total margin quarter XX%. Third gross was

gross Our not revenue excludes non-GAAP but margin of of compensation software $X million. recognized and $X million stock acquired includes deferred expense

Third operating expenses were quarter $XXX million.

expense, million accounting $XX expenses market intangibles, is in driven acquired expense Our in a non-GAAP compensation convertible acquired operating conditions. value fair non-cash million adjustment the $XX stock which million for $XX $X on software of and deferred exclude commissions debentures, amortization by million adjustment

Third was operating million $XX non-GAAP $X.XX quarter earnings million. Non-GAAP and in income $XX was net income quarter was non-GAAP third the share quarter. per

quarter. EBITDA was I in our excluding $XX non-GAAP And the adjustments quarter, adjusted provide previously a million now breakdown will Our the of mentioned. this revenues

Software revenue Services $XXX and million. was

product due give The to view. our is is similar mix. range of that revenue BTS. recurring balance. XX% royalties due with quarter in to Product comprising the this approximately prior in proportion of XX% Software of in to the total include decrease the primarily ARR to QNX total, We a Product company quarter was remained The the to Services metric revenue Professional Software XX% ARR

was expect early there. the of our Other on We return to and see ARR $XX we revenue COVID normal Licensing run revenue year million. normalized fiscal as impact to next rate

represented a the This our to investments cash, during due debentures early debentures and period. flow on is $XXX $XXX Total cash the mainly Now convertible partially equivalents of Xst. cash of of the balance at sheet to were November performance. This cash XX, of quarter. $XXX million in debt a offset of in million September financing, $XXX issuance decrease million million and moving reduction convertible generated XXXX, redemption million and by $XXX new the

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

the million expenditures $XX I’ll million. generated call capital with cash comments cash from turn was free quarter flow $XX That operations to Third my John. million, of concludes and $X was back now and

John Chen

you, Thank Steve.

Before of noteworthy year, the I we’re current fiscal addition the provide the highlight BlackBerry excited remaining about. outlook like partnership I’d very for some IV in that to to

from quarter, is provide as highly still protection provides environment. of It to our Zoom, Umbrella the Verizon threats. This as product secure business Zoom product data antivirus and of meetings with internet secure leakage, cyber to way at and Smart their partnered Cisco aimed includes well customer. which from this In virtual secure increased which a AV Verizon BlackBerry business in offering, is small large Service. we number launch version new quarter This corporate Security BlackBerry work anywhere hold medium-sized

we the to enterprise IT integration Management reach quarter, market their Microsoft as team platform. to protect million outlook. our of will ability with Service both the ServiceNow move AtHoc and leader is of you daily I’ll the Team, AtHoc the in software, active During most X-X-X, collaboration have and with This user XXX, Now further the market. over XXX of of announced platform XX% now integration on know and assets. the enhance

$XXX company the for total we expect million, revenue around as quarter. to continue year indicated be last could We

fiscal We indicated. stronger little finish previously a than expect licensing revenue the year will

for as expect quarter as its return talked to sequentially about revenue normal fiscal continue fourth grow to next to We to the BTS in year. runway we early and

as to as well We exciting develop This new progress. quarter business and conduct partnership that, model make please, solid call QNX, per to We deliver financial we recurring I over our to as the as our which David? a session, deliver revenue like per for continue outlook. products outlined Operator model, good Q&A we roadmap. the leading industry turn our to I’d With

Operator

Securities. Chan Our question be Yes. will with [Operator first from Instructions] today TD Daniel

is line Your open.

John Chen

Oh! Dan. Hi,

Daniel Chan

The Thanks the -- did my on it, if a know don’t you for questions. Thanks hi. missed taking metric for you growth? it, my but if I -- mentioned guys I taking provide billings

John Chen

missed did not. We No. We it. really

provided haven’t We that.

Daniel Chan

causing declining you Okay. talked Steve, you’re BTS. And how that’s to then because about on including it and just why BTS it’s what Can the from drop? declining, there you remind of ARR us

John Chen

go The Go ahead. ahead. Steve. ahead, numbers -- Go

Steve Rai

Sure.

John Chen

Yeah.

Steve Rai

we The our basically company part four it’s we quarters is -- a into trailing well, of metric. a include Software Services. the QNX that -- ARR it, for total So metric, And feeds that --

So there affecting. a lag is

COVID move we’ve metric recover. back the effect with got it but as lag been a into forward got, impact it’s consistently and the So that that’s discussing, making we

John Chen

Dan?

Operator

of Walkley with Next Genuity. the question Mike from comes line Canaccord

Your line is open.

John Chen

Hi. Hi, Mike.

Mike Walkley

Thanks John. for question my Hi. and Thanks. Hi, taking good…

John Chen

Sure.

Mike Walkley

to to call swishes for the … healthy. holiday on and everybody season stay the

John Chen

Yeah.

You too.

Mike Walkley

Yeah. Thank you. Yeah.

getting shared excitement does you’re in ASP building car, early on to question kind lots to over of it IV, interest things gap But high-teens the around know you’ve you yet, developing do the for it. How sizing John. ASPs that longer for really a I per just of $XX it’s how and days, this term help see Just me, car well? not because close time. as go

John Chen

the all really is laid don’t earliest the revenue out we said, I have As because get believe year will kind the our the yet, I XXXX. model revenue, of

OEM with increase into analyzed do to platform to edge ASP only of do decisions not over many we cloud take daters datas all the and up. to long-term. it in and how time or depending advantage either combination make then lot real to help sensor has and gap lot we very or It it very base sensor big way. these of datas the So to the collect those the this do and -- expect could and a in close spin a in But the could application certain a also the a on sensor

the application OEM Tier platform using X So build so will will other going an parties. and the our is the to third application, build

ASP could are instances So then that there obviously vehicle. if more are increase our applications, per there more

hopeful chunk going us part that a good also forward. not it’s of it, recurring this revenue only very we’re of So bringing a have but

Mike Walkley

question with launched you my longer up BlackBerry, follow software kind have new also guys of just term Great. Thanks, several security John. modules. different And

excited ability look feeding launched new that expand you As they the with about last over quarters? you’ve they’re to sales opportunities upsell leading back some land they the are at you your the are force, and their in with are what of customers? several and of modules terms What that to what

John Chen

Yeah.

all our So, now. because first hacks vulnerability a cybersecurity timely on product off, is going to and market, of on the offering side, very the the right is suite the

more We and of there. protection environment out invited to and been going nowadays switch to all on cases because cyber the the hacking have attention that’s the

successfully, on this guess, That’s say is for this to not the knock So, been is haven’t of example, wood, the a we yet. I point. This challenge. say, to at intruded not just state affair

our terms of on sales is focused somewhere UEM to all which X% So of medium-term, we on force in industry our -- for the when base, of UEM accounts space. shares upgrading analysts between listen analysts XX% who -- a of depending very you -- on market to are

we very So upgrading are that. busy

sell very the release our So IBM them Mobileye, with UES And UEM. the talking we’re soon we first. on to UES by But probably of time, UEM, at months, MaaSXXX. platform they Intune, same going start the and way, literally the on top competitors sequentially. and in all Microsoft will Not to then we’re HR AirWatch

And fact so So that’s -- of of that’s cybersecurity another part the aspect are that the play. part we it. -- the that

So that the opportunities years busy should next of us lot us keep of give after couple a going and market. the for

Mike Walkley

Is last I’ll UEM other just the feedback UES, one platforms. going What to for Thanks. level offer the the those mobile the you’re And capabilities is Okay. CDC pass interest or to similar even on for line, that? market? able just question,

John Chen

current that customers of they reasonably specific the quantitative in. makes whoever, already investment, when that levels mean, to invested sense. gives The UEM time, I speak at interest a But I their ability It same high. question. them they have think and groups to to customers all I answer are your don’t protect whatever an make

this then pros with laid best protection. uses your is in from got which the we data about and cyber out so, If and believe the the and in technology have I you’re certification best BlackBerry governments of obviously, bunch cons of each and -- comfortable the of the Security, on vendors in terms technology protection happy and we all we

out to gave do to no hurry they of a the a them world having long-term. in wanted of there’s best rip the even if it that that big course, without to So there’s -- which do all no investment,

value investment. So that add keep what to helps this and their they have -- to

So everybody’s look at to at. happy about least choice at their

Mike Walkley

for thanks the Great. and question. my Best wishes for year taking

John Chen

you. Thank Sure.

Operator

comes question Research. from of next Your Equities the Global Chowdhry Trip with line

line open. Your is

John Chen

Trip. Hi, Trip. Hi,

Trip Chowdhry

this reasonable was view you both partnership hand very developer point get phenomenal, IV think John. the from execution This and I Hello, -- strong view, the is platform. do the was so developers that can in of question is off to your When of quarter expect? John. sometime Amazon, strongest a start My from point AWS on Hello, Zoom. they hoping that Do think XXXX? the is community more of and pre-alpha that companies, versions could capitalizing platform you that, in on imagination excitement and two

John Chen

I I quarter, third -- we -- a have beta third will quarter, a September day. know good ready sorry, is Thank version year, next our our you, be quarter, in that quarter September Trip. question. quarter third

will version. developer a We have

have before a to hoping that. We’re developer version

to the about I able say say, be hands will application be on would next that. lay mid-year to So their provider year, safe that

Trip Chowdhry

and we name Beautiful. them. an can eye embracing applications OEMs, think see kind of you and of a If how that And as forward in did EV we also can keep platform? move terms you what you possible, on not OEM, your they’re some few name

John Chen

say that and and people, XX with they my in groups -- the it’s been gotten I me company OEMs. but contact -- feedback this, have of initial would XX different positive of have a think about group them. so don’t we appreciate I naming And Well, will in

up, not obviously So XX but commit I sign following -- the will to that thing. will all

try As excited a Amazon was getting to I will we to and very very getting making have announcement customers strong the are Both are and and has sign to it. today. customer when, feedback -- public presentation up, we busy in make us obviously, agree

Trip Chowdhry

and the best. Congratulations Beautiful. all

John Chen

you. Thank

Operator

Markets. question Treiber Paul with line Next Capital comes the RBC from of

open. line Your is

John Chen

Paul. Hi,

Steve Rai

Hi, Paul.

Paul Treiber

Hi, evening. John. Good

John Chen

evening. Good

Paul Treiber

relationship, to the I the co-marketing? know open revenue. could on A that, couple maybe itself, of from at magnitude exclusivity other questions, speak some future? But duration of also giving the terms not of for up then follow providers the partnership and the new to you’re of co-development the on of in the cloud to to details period details you Amazon And then commitment agreement related point it and you allow the Amazon’s up Amazon in

John Chen

Yes.

of the like number the be platform, They or exclusive same They years exclusive the party with product. So and in of auto Amazon us. using develop sector not that will we area agreed Cloud will on will using be with we in and with other -- multiple with any developing analytical data the market platform. that same

with Not It broad exclusively very up and But does as a the and out exclusivity And clouds. BlackBerry the OEM this relationship, presenting we help pointed and a lot X for us. do at AWS will won’t hold agreement. provider I allow is is that is a co-development the meaning will to us with the ecosystem get it’s transact or co-marketing going least the this. application a assigned to that Tier have agreement we of lean probably to They one in that it commercial the deal up other meaning both product particular or of the out, So open It’s customer. on the to will done. until the dimension. done engineers

how a will, on particular I well as Conference. IoT, of keynote the AWS, of he this our number AWS He this the information. specifically he relationship speaker his relationship. the where with bit of will Jassy, made Head how quite you with keynote. expands public CEO to and starting you a -- as the time at On Reinvent refer describes Andy If It’s

very that the come see it the from serious. comes only Amazon. can side, This cloud you but are seriousness from So side not at IoT they also

Paul Treiber

those details. Very for right. you All interesting. Thank

the cybersecurity high globally you and that? How or -- of do from just then I’m see other from various the BlackBerry against Secondly, work-from-home could how to it’s uptake and at also -- all BlackBerry revenue trend? the And to transitioned in the what’s And little looking been that revenue that benefited the retention then benefiting driving in applications. transition -- the work-from-home? net fell, It a net dovetail I think versus you quarter retention? quarter, how bit

John Chen

Yeah.

you only UEM of cover license, a the would to doing I the So of in everybody because that we’re well, their a work shutdown, customers remotely. -- expand our work-from-home of tell to wanted lot in and initially number licenses COVID-XX to

As you know, most of our customers government. are large the institutional, in in the banking industry, as well as

are So the volumes quite that high time. at

it looking areas. from then gradually, One sectors remote systems. seriously voice in shifted work two the alert I at emergency the government and to say, area, and the technology secure then both and secure regulated the Now, industry other voice we home, all

Now and by to I their be are want the government space, -- able recently larger user, to that they focused the where a to employees focused reasonably it’s enterprise, but reach to think now be used constituents. other it’s have now to in expanded medium

of clearly areas benefited important. So situation, we see very situation the in communications but those pandemic pick from is good realization pandemic the drove up that very is the secure unfortunately the

lot. So Cyber Suite. is indirect there effect of course, And we then, on the there see a

to Suite, ran and as all you we and been just believe we that. know, caught tests we enough EDR, released we’ve Although, up behind but the Cyber an show we

So some you those area. coming revenue from see should start

kind are remote. the those from to So the of related area work

Paul Treiber

one that… mention Cylance should legacy think The that lines, the you -- is the so between we was And -- didn’t just reading business.

John Chen

sorry, Suite, sorry. a… Yeah, sorry, Cyber the that of part That’s sorry, was

Paul Treiber

the there, Cylance that retention The from net -- products, cyber the churn just slight is revenue driven some older you the there? drop made older

John Chen

company That number is total the number.

our the It -- the just not so Cylance product. a older product. is combination of side not it’s called it’s So enterprise

Paul Treiber

my for question. Okay. Thanks taking

John Chen

Sure.

Operator

from the Todd line comes question of with CIBC. Next Coupland

Your open. line is

John Chen

Todd. Hi,

Todd Coupland

John, evening. there. Hey, good

John Chen

evening. Good

Todd Coupland

wanted about just QX I to the ask you outlook.

John Chen

Yeah.

Todd Coupland

for $XXX so the million year.

than -- a higher. for or call out you know, the don’t according to IP being FactSet so is it’s higher $XX million year, then and where street I So

So I’m up Services mix, Software will that within be sequentially? And wondering

John Chen

Yes.

Todd Coupland

you And characterize. sort of Okay. can

John Chen

when expectation that, current a that sequentially. I answered the trouble is model always lawyers, it [Inaudible] get my I it is with up and

Todd Coupland

characterize for and few takes I Okay. little that? us sort bucket on a the know that just that? there, And you puts can the in of pieces there’s expose within

John Chen

Yeah. and have believe We be well. AtHoc combination those believe secure up we that flat. And UEM do the a pieces. communication major quarter will SecuSMart. sequential are It’s will of relatively BTS kind to a of continue and will

Todd Coupland

Yeah.

loosening you’ve And COVID fiscal are sort But for -- about cetera, other vaccine, talked you questions in broadly, guess, were deciding, new about there is now earlier. decisions, of decisions slowing there as customers loosen the are to I this -- those and as thinking past the a just the some for of sort I the about know you next Okay. that enterprise up? about you some enough on of your et year, next post enterprise year where start can see you thinking Can talk so? or just

John Chen

Yeah.

loosen is out in plan, our out of for next will [ph] the operating year. building a we process they assumption new and are Our ALT

point From to of So up get start and normal. our we it already seeing that. assumption that the sector back loosen will auto view,

I I combined and reasonably I channel I am kind and BlackBerry about marketplace sure. didn’t channel which earlier, reaching robust terms in of said like will on topic side. to commercial a that start it it’s Cyber is, the Security we that So also double wants the so that we talk very have seeing Cylance channel the we down a along of to everybody didn’t in programs put of program of and and interest put. have but number products time, in But and program script, my together. a it we have ourselves the

we’re for able year. be to will the the leap doing that things execute and few with both a growth are there So growth next see the

Todd Coupland

say, question, and is thesis, not few specific that stock office, from once work really but certainly to in how about you Last it’s you’re out, three opportunity major companies there? you’ve by September, it’s thinking can tech guess, come just that Okay. the curious, back -- office seen a Have days the to I perspective my BlackBerry decided work-from-home? you still

John Chen

No.

year seems we next really far will We least we another we be And say, at -- would decided. could September been although of speaking have not talking few times… have away.

Todd Coupland

Yeah.

John Chen

that. ��before

but we’re minded. applicator. that’s be So there guy. is I open a I’m like In But recognize flexibility. some the just build also together -- an I’m that are there open an should team. people applicator would I’m we old reality fashioned to who -- an we’re fact person, build me. that, to the and a business together

So willing of lose doesn’t couple productivity, I’m long a try as it things. as to

Todd Coupland

Yeah.

Okay.

John Chen

Okay.

Todd Coupland

much. Appreciate your Thanks very comments.

John Chen

you. Thank Absolutely.

Operator

James. next question with the Your comes from Steven Raymond line Li of

line is open. Your

John Chen

Steve. Hi,

Steven Li

Hey, Hey. you. Thank John.

the your first, $XXX non-GAAP Correct? outlook, revenue million clarification number. a Just that’s

John Chen

Yeah. Yes. That’s number? a non-GAAP revenue Correct.

Steven Li

software And grow you and sequentially well that QX? said you BTS enterprise to little in bit expect grow a as to sequentially Okay.

John Chen

Yes. what I said. That’s

Steven Li

do the higher ARPU Okay. other would some the modules And right. IV to it IV, you a as compared you All or expect of same to in John be on see bit range?

John Chen

No. Oh!.

In terms of the ASP?

Steven Li

Yes.

John Chen

-- is maybe Oh! the In is me, than reset I okay. here fair, be -- hoping I’m order that let higher to am hoping for following.

high from single-digit double So hypervisors, -- clusters, literally dollars per low low IDI or that dollars module anywhere ranges to module. [inaudible], is single-digit our current ADAS, whether double-digit the

So…

Steven Li

Yeah.

John Chen

spectrum. to the the end that’s range. So that be towards I of would this more expect higher

thinking said, I no, when IDI. oh, earlier, I So about was

IDI this more. to lot So this a will compared be

Steven Li

Right.

but you and -- then with split AWS. will that And Okay.

John Chen

I will AWS. Correct. revenue have split with Yes.

Steven Li

it. Got Okay.

lot. a Thanks Okay.

John Chen

Sure.

Operator

like I’d back Chen, to for BlackBerry the CEO Chairman Executive over closing remarks. call John turn of to and

John Chen

Well, Thank thank you, you. David.

and the -- a attending your I of know you’re most Coast. evening this our say we I evening, meeting on much if very sheltering that. -- But for East and call Board today’s I am apologize for own have So to today. had West on your early early now B, Coast, thank the is in we everyone you it’s

doing we’re one all. reason is inconvenient hope hour. it this not overly at I why to this you So

and family like Before I year. you your every and wish off, see a each of next to I’d holidays hope I sign and you person very safe one to happy in and

So a you. have day. with Thank that, good

Operator

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

may You disconnect. now

BlackBerry Limited (BB) 18 Dec 202021 Q3 Earnings call transcript