BB.TO - Earnings call 3 2024 | BlackBerry Limited

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Operator

Good afternoon, and welcome to the BlackBerry Third Quarter Fiscal Year 2024 Results Conference Call. My name is Chuck, and I will be your conference moderator for today's call. [Operator Instructions] We will be facilitating a question-and-answer session towards the end of the conference. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.I would now like to turn today's call over to Mr. Tim Foote, Vice President of BlackBerry Investor Relations. sir. ahead, go Please

Tim Foote

Chief Good our earnings and the and to results. conference on John Rai. a BlackBerry's joining Chuck. Chief provide Giamatteo; third Officer, will note Financial say to will regarding quarter Steve financial me Steve new is call XXXX call. I today's update Officer, afternoon, you, review John welcome and read everyone, After BlackBerry's that Executive cautionary Thank business I'm statements, delighted forward-looking

are call a applicable the and replay Harbor should, and statements public information expect, brief the in This open the statements we'll the model, is available general and blackberry.com. session. be will U.S. investor then by the call as available believe making on We'll via and pursuant blackberry.com will provisions using Safe We made today A indicate for of be section will, at the securities intend, via statements constitute website.Some laws. Q&A Canadian also such to forward-looking expressions. of numbers words to call-in similar forward-looking webcast

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

and company undertakes only statements.Any undue company's has as no place law. to the by except of or no required not any update obligation forward-looking should and revise forward-looking of as statements You on intention are made the them, today reliance

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

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

John Giamatteo

as and delighted to be some name from I'm hello, John will new Thanks, today President still we couple Giamatteo, past CEO. everyone. is sure time has Tim, my the have where significant Cybersecurity My to the years. me product, overall business during know unit, joining progress the of already while all BlackBerry's operational team work with as of go-to-market and made efficiency you of and you do, I'm

and and As very as challenges of BlackBerry is the we the have and I'm been President, of a the stepped things we I'll efficiencies pivotal a process. need operations into and fully to going lot take operations, separate work, But we first heart units, IoT driving my the rightsizing BlackBerry's face at to for business I've role our call. with time steps ahead us. how already this the familiar Among at this in back come of in to work later priorities Cybersecurity the forward.I've more

of secured for XX% revenue, for a revenue for from a performance year-on-year solid team a Driver new we of automakers still royalty operating off-road significant the OS be QNX will the only for design design And will a in refineries, everybody treatment. a medical, the bedside automaker. that harness Automotive. Hypervisor QNX as in BlackBerry for additional meaningfully The will Revenue This design industrial backlog. significant GEM controller ADAS product wins. for for automotive number enable a a be This driver deployed to a an Gross Advanced margin high-performance, momentum, is as XX%. X in vehicles really level We $XX average, for new our offer. wins for autonomous headwinds. of QNX Hypervisor change of years safety to launch revenue addition next-generation secured XX% on the while as levels quarter, several And to maintained track OEMs. secured supplier quarter to good and and was for quarter at will at product Black compute or business. factory RTOS pumps continue IoT software it. our to with firmly Libraries wasn't use Asian infusion discuss design We about growing with front-facing QNX high-performance that The C++ below for the remained for were processors who win remain general million. X.X was They a will the global be and be and quarter.In increased for its safety release excited secure in The our step first services, safety and X% a strongest cases particular, solution and platform one wins in STP QNX Systems, significant by a be delivering quarter win the used as of medication Channel industry strong the wastewater a IoT use be in we used well. we me will quarter at automation Let edge increased despite large developed fast. QNX would for platform. more of Development auto use In Assistance broad. performance seat speaking strong the and royalties applications this displacing The Tier main excited and leading delivered scalability was ADAS-related where represented to the for the used automation of sequentially our rival adding this design for and also camera X included number be by our world revenue that defense by quarter long-term European with XX% Revenue system.But and growing this of an Among delivery. fully about largest leading access couldn't this the critical, secured was the ADAS other a outside next-generation foundation design well.We developers and in our XX% quarter sequentially, such opportunities petroleum starting need revenue. growth ADAS. products for

out for to look other So, developments IVY. we and exciting now in on January.Turning up on for brief more information CES update this gear a as

make focused be continues than January. is third-party win IVY-based at announce on ecosystem sales in XX grow and cases to partners expect another We be and to to are with we'll CES The POCs strongly now products.Moving CES, outlook to what at there in demonstrating remain converting business. Proof-of-concept remain QX. IVY hope the and to continue well a demonstrating and use cycle strong. for We from wins IoT into customers in booths progressing X long trials progress feedback more business design XX

As mentioned, the momentum achieved continued headwinds. macro strong win QX some revenue and design in despite growth was

to first in labor we on production disputes, impact naturally has a and felt fiscal was our the this expect some The which QX. volumes of had UAW customers for be largest our negative impact

we're very continue -- year OEMs million.Now, of ongoing the And slippage $XX there solutions. of me percentage let no automakers. to software have complex outlook. in XX% and while is on the these points the $XXX strong revenue $XX to delivering Cyber near-term programs XX%. said, improved of deal I'm software-defined automotive for have a towards expect QX to strong million with to a some X% Leading quarter XX to of unit. is for a second in Because the QNX we with QX Cyber. strong pushed its our taking software Gross to of sequentially timelines change sorry, year-over-year. back. major margin at headwinds, range by The challenges conservative ever, direction -- strategic in more Cybersecurity view continue business million, That strongest Revenue was was quarter growing turn This vehicles,

year-over-year it growth of a year. next pointing net last ARR before the Cyber improved million X rate total dollar-based growth XX%. in fiscal to environments, in communications and QX government an in Cyber $XXX showed governments very anticipated foothold the around or solid secure The a contract value sequential X%.The percentage decrease the While strong smallest decrease, point XX% business their was the to TCV and leading return has representing where sequential to million, billings space X years, was of $XXX to growth stabilization software world retention of data. BlackBerry a trust

that While sales the are built often has cycles, term. very partnerships are often of long this type business longer

Cylance, We to build significant full deal are included this a Malaysia the Secusmart quarter UEM, contract by provide government and of partnership to range The our a a such securing AtHoc offerings. of products. multiyear with delighted

personal pleased were U.S. of AtHoc the a Cybersecurity establish calendar the As significant XX% in land solution the to BlackBerry software Lumpur X-year the a federal management market generally XXXX.We will event Department Security. of part U.S. will is very particular, in system. Revenue basis. some power on secure some remainder of are in ratable In new on offerings Secusmart the management. share our elements products in-quarter in and DHS' result The emergency UEM notification during the with government year in Kuala to of used which communication leading deal, critical portfolio recognized be of recognition a Center AtHoc, Excellence the with significant our also Homeland endpoint contract revenue. contrast,

tailwind, significant gross in Secusmart Given to this and helping revenue improvements. drive this a part was margin the content both strong quarter,

me While the very have quarter, German of with market.Let product with land traction the Secusmart to some key its in now pleased developments Cyber. don't of overall deals we're magnitude that on of switch outside we this seeing going every necessarily core we're

been and Cyber to closing the a us the market, past of product solutions years, number couple product of bringing busy, gaps to has leading compete. team positioning Over

to threat generative the and response latest their we the This solution cybersecurity needing without understand assistance During expert to quarter, engineering. launch prompt an prioritize of of announced SOC helps AI with AI-powered in-line the quickly generative be with in customers these system. the alerts

announced additional for also secure as product our Cyber well.Moving audio of and features to Secusmart This business in encrypted QX. compliance and tools with for calls number to video group We administrative included a suite outlook now communications. enhancements along

our to government of for is lower the of expect million range because $XX likelihood, to deals some primarily We be timing large of the the pipeline. the of million the outlook, and reassessment in previous quarter. the size in revenue than of $XX This

expect $X also stabilize over on flat financials. QX Steve, expect the our you before.So, on million ARR continue call for me to who Licensing. the Steve, approximately we be over We to quarter color as briefly to and more now to Revenue sequentially. hand to provide million and Touching will to $X be let was you.

Steve Rai

you, Thank John.

and $X gain million long-lived BlackBerry was The revenue was be profit $XX XX%, financial assets, of revenue and operating revenue my convertible in million debentures, the IoT year. Malaysia for terms X-X, referenced. $XX will some million million comments million, profit quarter in in $X.XX for impairment recurring million intangibles, third million. Non-GAAP delivered was $XXX decreased non-GAAP compensation expenses impact of million, of $X gross was on EBITDA, our $XX amortization margin otherwise related to $X fair by the that in investments million in stock used Total November reduction million exclude one-time million.Total Licensing broadly net quarter, restructuring million, Adjusted Malaysia.Operating third was for by driven Cybersecurity expectations. unless revenue by of in in reaching as performance to non-GAAP a expense. product million. share operating million. $XXX non-GAAP the of from operating acquired was equivalents $X quarter-on-quarter, net part revenue on outlined as and the quarter also outstanding debt. due Secusmart $XX were decreased John the benefit to approximately deal the software QX, primarily of to $XXX largely flat As million $XX per non-GAAP XX, cash The as such $XX was to activities driven but revenue earnings caps excluding benefiting and for company in but basic primarily company non-GAAP improved $XXX calendar beating $XXX expenses adjustments to the XX%, noted.Total a $X was cash, at cash always, expenses value million. items that the percentage

with to communicated. parties million During as both with convertible issued were fully price back rates remains debentures the the were May million means.That coupon attractive meaningful level X.XX% rate comments, previously the option to agree. XXXX John. provides in short-term additional extend these rates $XXX debentures quarter, which mature concludes smaller debentures XXXX, February I'll of the and issued, interest Despite we at conversion $XXX repaid then my convertible XXXX This since September turn remains increases liquidity and it while of BlackBerry longer-term to in $X. XXXX an in at extension on the financing significant A of should evaluate at

John Giamatteo

Last has reassessed is you, stepping We a IPO Cyber announced change optionality in pursue shareholder Steve. the advisors IoT instead value the from on decision there subsidiary path separating and strategic increased direction that company. of by Thank to optimizing the its the Board, believe a back with IoT The we fully for week, of from and focusing businesses. business. input earlier

expenses reduce decisions, played the $XX business our having decisions flow. on we in rate is the run about in a These even streamline quarter and took structure. $XX million to cost part requires usage BlackBerry QX. return Cyber and reduce optimize receivables this have stronger with take actions positive will office cost strong operating number last profitability to million in to we back As key a part cash year. million And focus from processes, opportunity by to $XX of the almost will to In per of divisions.A QX, our collection building that us and to along tough cash this, our some stand-alone

combination to benefit a the further flow billings Given past the quarter expect full of we cash in quarter cost of operating strong QX. improve reductions, and this of

levels we're return number number has position brought our how years we product BlackBerry's in go to has we works. to a However, and averages. Furthermore, mode, key closer to Cyber. made of and ways market, acquisitions can we significantly have that business over investment now And a industry in believe an been the in pivoted see back investment particularly that to streamline office enhancements further.BlackBerry been a of

worldwide. recent despite offices we reduction cost have efforts, instance, XX For still

potential expectations let some have me QX. We the for OpEx teams.To illustrate opportunities, current duplicative outline

G&A non-GAAP company we marketing XX% be to R&D $XXX mentioned, million. revenue is opportunities while growth while long-term and across nurture significantly As a expect in $XXX XX%. excluding exciting opportunities to be million amortization but the to Both our in at G&A, the are continuing expected R&D and divisions. our On XX%, we right-size to compared to total high range the of see targets, sales to board X basis, and approximately

strongest targeting and business in drive and in strategic actions open a the good for we The years quarter Q&A. quickly future. open XXXX.So, part, now strong BlackBerry year are in much that our revenue weight sequential We that divisions took And X for and drive fully operating further and significant into ARR move our cash fully revenue BlackBerry. in IoT X are in business Cyber unit to flow the summarize will large past we position stabilize. the divisions cost from targeting messages. alternatives in we for shareholder the strong separation a structure for to growth continues believe corporate contributed a a We significantly momentum lines government The the Q&A, begun me that lower increased relating This IoT work stand-alone key and can completion to more usage GEM. secured adding to to backlog units business its to value.Let's overlay process of quarterly Cyber Operator, have please lighter calendar with you separate wins to lines? deals let helped stand-alone reductions before Auto maintained delivered royalty the we design was

Operator

sir. Yes,

from first Canaccord We with question question-and-answer [Operator Genuity. begin the Walkley And come will session. the now Mike Instructions] will

T. Michael Walkley

on congratulations John, to CEO. the promotion

John Giamatteo

you. Thank

T. Michael Walkley

or the your put outlook some to larger off for on longer And been these given taking this the want Cybersecurity guidance. probability XXXX? of a just the Cybersecurity, deals some guidance providing I deals. tougher just know of government what some for grows the not should which lumpiness deals the long-term rate to this of how think common Are in, year think dig up about off environment you're to in lost? with given is do guess, start the But business you I guess we close, into of I within 'XX? large for this is maybe of have what I you business run macro

John Giamatteo

across first lumpiness around I board. of them a questions and did things. to and the Great the And of Or A One, couple the think things. deals go away? timing? the question it they couple of is

I way it think a number timing-related more of them the activities. tends to That be are is.

German now tends the whether things continuing kinds down similar Secusmart happening and timing a in government some that's it's have U.S. a our the with dynamics I right of things resolution number of -- with slow that in the are little more business.So, of which, footprint activity think them we happening to think a government, big related. the there bit I obviously, are

there's And go -- for or iOS an IoT operate where system. some as to operating solution. a they particular addressable of deal market to a of in an one lowers us solution the little them, Android another they decided bit make that And than more adapt decision towards

So the a offer. longer to of a of a way some to little on with represent, what tends I customer other DHS it bit it's moving use and little a -- Malaysia with as way pretty things. lumpy different governments, But would think perspective, less went does timing, it's it's our works. technology the bit I address lumps that term how that's that we a a and this into that fortunate enough of far business that.As naturally couple We're just quarter,

want love I'd forecast and to are to realistic this some be give you And as I just as it. to about this opportunities and But and you balanced prudent my business as to can. these in that role best you pragmatic why of is new bit of and view that's into I try a transparency a have, of give I commitment move transparent, be is my say higher which guidance. the the So, I possibly give much able commitment to

T. Michael Walkley

X a Or bigger really work made the some have allocating know time, a you it you're businesses been business can separately? you side, but short sounds in leaving that costs seat thinking are sounds alone? to IoT, picture. you like hard maybe but Cybersecurity for maybe the follow-up you you've already a And about I on question on streamline them It areas for you've like just that the also? cutting CEO how decisions does towards on reporting resources

John Giamatteo

Yes.

that's back coming trajectory. think it's into I dig much growth it. something business it's worth probably I of -- mean, the been I we stable place. to fair IoT next in a more to as more definitely a is It's say quarter think

in So you naturally, We to day we give in on seeing take IoT that this job we're But quarter. the don't the want all. time, we'll more into since back new little with next momentum that insights disrupt role, more side it's some the come account. at me a you X to

T. Michael Walkley

role on success in holidays call. new happy and everybody your for the Best to

John Giamatteo

Same to you. you. Thank

Operator

Markets. Paul Capital will from with question next Treiber come The RBC

Paul Treiber

mean at Just you for question, in strategic just I QNX company do an mean specifically or What a Cyber, high-level by separating segments that? positioned some regards and are entire the you to you here? segment looking the divesting better mentioned alternatives. of

John Giamatteo

I it gives us, more Paul, think just flexible.

some we optionality convergence corporate had that which I blended. of a the we think out the We they've IoT, we bit had in had have Cyber, there. been strategy, past, think a little limits I sometimes

X a whatever independent, their us just them interim, them our options that's shareholder gives the very So, more units, the optionality, for will to a in in that We decisive of whether a on making focused felt and value think getting of aligned -- Board or large us they gives maximize sale, be, better towards have that consider profitability, going best large, independently options future. that's TAMs may the whether spin-off we the -- industry. our business decision we're driving around respective each and kind approach better

Paul Treiber

the them. do on just on helpful. is question, think do QX about your just as cash an short to improving X consumed comments should and term be Second and with in cash But liquidity restructuring as converts when how here, we option separate any flow managing payouts. you flow But particularly how businesses, think much extend with the into liquidity cash you about how cash

Steve Rai

So, Paul. couple a of things,

the in updates, be position next respect on being generating provide quarter, our looking more liquidity financing different term get very So, the there in to Obviously, will put exploring we're worked. which positive obviously execute with plan. as those to and goal is concretely year-end, be plans to be on the We've we'll pursuing flow. should Certainly, of John a got and color and structure. financing longer-term the course, access is sufficient the actively to we're in and said, the which that options to place, capital to both at cash of kind businesses short

isn't but So, a -- in on time, there period of a there after shouldn't short plans. significant be the drag a those we're relatively business working

Paul Treiber

And me. question then for just last a

mean, I Cyber to couple you've years. John, the of been business for a ahead back of Just

the the investments in seen you in Where of trajectory you see how at the trying And of product business? mind terms forward to product, growth going with do and see strategically customers? in share capture You've that business do terms in go-to-market.

John Giamatteo

company whole there's maybe really in vision we the the the holistic delivered caught how number attention out partner different bought but But our that a one it thing of like them were maybe overall right there. number business Cyber with. they one I call And and different address product actually and deal into the of their a of an The interesting convinced to we out unit, that Yes. different portfolio, example dynamics how have Malaysia we of the better portfolio. will because was solution was -- product products a

that our government in the gaining Smart our AtHoc portfolio looking and the which think in some of Germany think the all really need outside very Seki direction. issues. on back are is some like it be. year, the get that's some got this where like right UES, in that, on wins entire a focused of step do there solutions.But big accounts in a the government to firing approach business, product been German we've I market we business quality certain cylinders to strong helpful to is very, for a platform share, So, portfolio, nice set is are There gaps we've we broad Cylance

So, is number them little and mature less have a that each UEM of a a has bit product very growth.

for we But business different that an holistically, of factors projection Cyber of So come a grow. back to We're within growth hard looking next sometimes to why there's with to business, about dynamics for closely think opportunity which quarter. very this we'll lot year's think at next run AOP, what because these kind a and handicap we in it. as in the it's you of plans is

to you hopefully, back a quarter, more come few details we'll with So, but next that you snippets. gives

Operator

next come will Baird. from Luke The with Junk question

Luke Junk

start to want IoT. with I

in a environment high the at on automotive. bookings you Just comment level could hoping

a demand if on is software seeing we've for gen? realizing of wondering that have quarters preexisting been all macro with that now, Just you're side, EV dealing been any interplaying the but issues EV at impact few with moderating these

John Giamatteo

EV the EV, Yes. big We've of there's projects, seen of the some delays by some big been definitely that some next-generation OEMs.

headwinds wins, -- otherwise, about when a more well you -- positioned this an seeing I think believe, when GEM design I for be automotive some I headwinds other our about the some that there's market, headwinds we're backlog come one, think pulled from weather say UAW, we strikes opportunity. -- we're things some of But are more of underlying come getting, up would all on bit couple as a you seeing subside really to that we result, well we're the manufacturers are some of that us we Very more rolling start well for of think it. in this really all, market, of business, we when of the and inevitably bit which with our to the the now. think with design stronger that to how well you absolutely, backlog, which good of So between positioned IoT the number are new a really to last royalties, of more back think designs, But sophisticated and the these into just between been future. right I the that's positioned. -- a in the lines have wins the IVY off think some think these of that of as going fundamentals time we we're I strong and I But little and think is position time.And vehicles. their a quarters, we're sets couldn't things these on

Luke Junk

just hoping coach looking at question. segment having should level, at overall flows, the we approach And color a looking structure, then between time I'm waiting player at I sort cost really mentality? a on of operations of understand your -- bigger the you picture just your and the to of appreciate cash those sorts BlackBerry of think things. John, And

John Giamatteo

an player really strong great got in interesting A way We've coach strong -- we leadership. do great IoT, mentality. a built it. that's We there. maybe to a business team Well, describe

we back absolutely, anything financial, to the to that them can give want support resources the So provide. bigger the company

So, definitely they of need support driving to a a companies look them their that things to that's at their it there their And structure forward. company with business as X all with holding on businesses. drive the own own, kind

maybe child. but know call coach, don't that certainly player if I you So, parent

do and and for reach need to run we get stars up your they to everything the it. do children want and we're everything can going You to to them give

Operator

Tripat will from question come Equities The with Chowdhry Global next Research.

Trip Chowdhry

questions. had quarter. a of couple very I a And good

Traditional then set wondering come was I of coming a Cylance are Cybersecurity. going And technologies what on these monetize are of I models, and to AI, have which threats we very pose having see kind First to now these on follow-up. machine you a the transformer market into cybersecurity, new and including marketplace. new plan new capitalize new generative BlackBerry or of BlackBerry And generative because challenges BlackBerry created these which are learning that expansion addressed a these technologies? well. to how does in

John Giamatteo

absolutely. underpins the generation play I secure, machine that Yes, ML, It's technology are we Trip. ever Thanks, one the machine the invent would on where cyber was, actually our our that our differentiators We creator role a the to has that learning, AI, of think things best rates Cylance in big we're is entire they've say, learning seventh this our industry. AI been. portfolio. efficacy AI of our of of one is of our think

something invest So, we just how how our SOC much intelligence, cyber AI into closely, some notification our these analysts, the closely. a in quickly comes even but we watch help capabilities. EDR our technology threat we more customers using up, When -- that our identify incorporate we can issues this technology. only is We not of

very to us has for to continue revenue. going it think we So, way a invest and in We're role to big a as it our leverage to it play. grow

Trip Chowdhry

even Lucid, The link. them name The these software traditional today, cars, second Porsche also continues and including system to its too. has previous generation about some these in weakest of got generation be Including and software the asked software EVs Fisker, the as you question companies, is like and people companies, new new not place. of

these And they can't path themselves pretty it skills. software was established I in preventing failure the still embracing -- don't have the much fully are is what to wondering QNX? -- going of even and from on when they the So, like automakers do even they BlackBerry why

Any these just it. jumpstart decision buy quarter. this not good should appreciate And they I on again, thoughts, Why are versus embracing execution think be have make QNX software-defined companies and the vehicles? thanks, can a I'll no-brainer.

John Giamatteo

want to done has come it. same wondering if team the everybody. We because our over feel that OEMs, the just that was -- vehicles us. good and there's the for job. and sales bring team Trip, their just you We're I Absolutely. for good join for love technology a I fortunate for is software-defined customers in It's good good great and

have well. where I with have We design big wins over QNX positions us today, really the with that entrenched vehicles XXX our million think today, customers very

I And market. fair share getting I had. think the to there's our think be more we're of

we ever strikes on I everything in better when to next-generation has think just think I things capacity capability. in little the year software processor even and there like of think positioned and back leverages this that's these X.X, more them I next-generation recent having they some most share, have maybe a the that more that couldn't floodgates before, EV and release, SDP pull vehicles with and that than open capture market that whatever, going be bit.But been headwinds the them and bring particularly economy with with our

We're over. all to more wins all hopeful and to future. be continue we're in we're to something announcing and design be you going over So, the more guys for

Operator

The question with will Coupland next CIBC. Todd from come

Thomas Ingham

cash a couple had of to for What's expectation restructuring questions. the Cyber? relating just I cash costs

Steve Rai

not going through working that. within will it's to It handle But we're be to available So, resources. astronomical. our means with be well the

Thomas Ingham

-- that will be that fourth in And booked to expected is the quarter?

Steve Rai

that. working through we'll You'll stay an provide tuned. have update. to We're But

Thomas Ingham

expected the with flow timing is And the on? point, at getting positive to you're what get Cyber this track yourself cash

John Giamatteo

Todd, that's to something to going back I you have to come on. we're think

over to the in years. done working probably us of I it's for of more last comprehensive a couple quarter best update plans of made course through we're great work. strides are some that the We've think that give got next And you after now. We -- we've more

Thomas Ingham

year. to said, separation sounded It right. wanted I make expected you you just had I then this like sure the complete next have to And fiscal

the XX the line whatever just through rough you put other take to and So, talk to time that? on Can it's place. going optimization it little redundancies, us sounds you like a through a offices plans want while to work in

John Giamatteo

Yes.

to year some as really go us. a getting units this other the running -- within are to going of of X capabilities stand-alone, we there's bit can and we into process, position things up longer. where some quick then money, teams And business majority the through functions be I it's those there'll a the would can one us But success for that that think the going think and ones where quickly will and I be be one, some mid-calendar the aligned, be low-hanging little save to we think et on have things going I think I take do that it's that some get fruit, wins, cetera.

There that to want them and that's might But things. little things bit straggling untangle set we feel some we be as move possibly within up how unwind be and to about get there'll IT-related fast think I longer some take the properly a divisions. we as can.

Operator

The TD Daniel with Chan next question will from come Cowen.

Daniel Chan

to 'XX, much the of isn't by to think there some business incentive calls lot a QX to out fiscal your flow time work is positive cash which for considering how I contract John, do. get you

organic I appreciate that cuts of you that thinking about. some So, you're the cost highlighted

considering profitability. at if wondering there Just other the sales your you're said really business options any weighing to it wasn't In to predecessor point. asset any particular, are bring this

there wondering thinking Just are options of outside organic about? cost the cuts whether you're other

John Giamatteo

Yes.

all different options. I want I it's new As look just just, fresh this, but of come into not a fresh, to our approach, at --

that I of those you that me, think, are be Daniel, things organic should our -- majority obviously, the mentioned, time. to the

where let's up the things, of a -- a The perspective, be to couple some of and streamline have way? coming assets or in answer take a just big it to for look time, sense company there from At is the the yes. not the other going is and monetize whether they other visions decide I've the this that I've opportunity to of That's some come me Let's years, do we with the is money running. be. been to part with -- same in different at company or should get make

going things. probably stuff. XX% at cash the to something I those I find of the all we'll would come XX-XX, take the to can organic for spirit XX% other in open flow that's a kind the of things, at. of extent But kinds be of that from looking some positive absolutely look we getting think But to XX%, is to XX%,

Daniel Chan

alone? just by Can you cost to cuts get targets your

John Giamatteo

you cost, little part revenue, to year little been the to a of the revenue part focusing us we've go But I'd the trying more these ways -- get on How honestly, a between of lumpy, a us the love love side for better of cost I'd been to of positive. now. maybe things X since from taking a trying down. place that is is And get about equation the flow assets, focus things. There's the cash to and getting some to. all to bit growth business. of on we'll has at that of Obviously, as structure back But looking quarter. we to next come to more drive growth of cost into you out mentioned,

Daniel Chan

declined. been to the even What or And the it's metric pointed now. as out, that it's called going a And to its stabilized the ARR continues quarter. was for has think declines? expectation growing And you that of What's little slowing, maybe on But you bit, you giving continued by that confidence I source it's to decline. quarter? next next out stabilizing the stabilize it's have by

John Giamatteo

UES some mostly Yes. from customers, churn. We've come had from some a has I of perspective, had little the say, customers. We've UEM our had would ARR that a of bit UES -- we've smaller -- churn some stabilizing

So, on. we're rates is focused renewal something that

product, the improving stable. it more be will that making of Some

it. That's customers stay Our the part of equation. with will

move they stabilizing some to moved The that really between that have and believe have the on, were that on. we'll going customers will point.And out, the maybe low flushed customers other vocally moved bet to get do and on. be may That said said they're I and get unhappy is products

we net board, us that now I We're We've moving wins hitting where start new better in will on moving that other in will to other point. bottoming the the out. the -- And think getting us now really start Malaysia like we're to as a wins some direction. that a we point had hit we're direction. get logo

be know point. where next a I seeing we But might I to for so at we're quarter into for really off am be prospects behind go leveling or as that hope that optimistic we year. this we looking So, and growth

Operator

I Mr. Giamatteo, conference sir. would our ahead, concludes question-and-answer turn This any the back BlackBerry go CEO of for session. John Please closing to over remarks. like to

John Giamatteo

Thank you, operator. Perfect.

Vegas just both exciting let by number in X as MotorTrend well. well me that a showcasing as our in Innovator the Software-Defined January QNX Awards reminding of today we'll from be So, and just to at hosting be XX, as developments everybody IoT the IVY Vehicle will division finish CES Las

on Wednesday, January an featuring XX, be team. investor-focused leadership IoT members there'll So, Q&A of the

stream.So, can look speaking to forward thank details everyone. further for us you in on out how look you for earlier please New all the I and So, soon. Year here you again via joining live join to Bye, today,

Operator

you Thank The for conference presentation. concluded. today's has attending now

disconnect. now may You

BlackBerry Limited (BB) 20 Dec 232024 Q3 Earnings call transcript