BB.TO - Earnings call transcript Q2 2025

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Operator

Good day, and welcome to BlackBerry's Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Martha Gonder, Director of Investor Relations, BlackBerry. Please go ahead.

Martha Gonder

Thank you, Dave. welcome Call. Second and XXXX Fiscal everyone, Conference Earnings afternoon, to Quarter BlackBerry's Year Good

on call Foote. me John will and our Joining review today's note will Chief John Executive cautionary results. update, Financial Giamatteo; provide Officer, the a Officer, and forward-looking financial Tim regarding After business read is I statements, Blackberry's Tim Chief

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

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

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

the risk that the include factors These filings are company's discussed factors and in annual MD&A.

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

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

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

turn to And the call over with that, John. I'll

John Giamatteo

company. on Perfect. your as the of and Thanks, congratulations Investor Relations for new Director Martha, role

quarter as strategy. delivered on BlackBerry growth. and as with from as benefit plan. our sequential QX solid year-over-year the well in the year-over-year good was Both ahead ongoing non-GAAP making divisions profile significant our the drove progress revenue another in and this achieving we're of improvements IoT cost for delivering EBITDA, improve of actions combination The BlackBerry adjusted breakeven to and EPS cybersecurity

Likewise, revenue we product IoT million, came year-over-year sequential improved also $XX provided. than representing quarter, margin delivered growth the operations exceeded mix. that division percentage sequentially point used XX% of in growth, favorable expected. This Gross of the and the XX% past due also cash by guidance top end to and X by range to X% better

has of built to improvement quarter wins similar the a the of revenue a in secured that significant that of and royalty from backlog royalties stronger consequence considerable years. year-over-year. the that royalty were we've This followed better-than-expected portion a in trend part amount results. we've strong driven recent in sequentially is design Production-based This last growth and both

hold as QX, programs. seat is for side, of flip driven by back development revenue generally experienced in some somewhat software to programs in the recent months, term. development seat development consumption we've delays these timing seat in of seen as but the automaker revenue QX remained significant in near improvement have delays. ramp-up quarters, On subdued. And Development the the mentioned recent these continue We've

includes provide functionality a Driver and Among number that and critical that subsidiary with ADAS on applications. QX, Hyundai, recognized identifying the digital Assistance follow-on largest milli-wave Hypervisor them, OEMs particular, running frameworks that foundation a revenue we the will a in Hyundai wins power Korea's a design that of Among wins. to Japan, addition we South quarter, design large new future wins in camera design leading to safety of we chipset automotive a secured and year and secured the Qualcomm will announced ADAS secured we Mobis, or X number cluster, for QNX radar In in in of objects. automaker, for Systems cockpit infotainment safety surround secured In digital to last integrated wins advanced with win revenue. generate Advanced virtual

X.X QNX product We've recent traction seen SDP QNX portfolio is the we're QNX speaking, products is a the in flagship X.X incredibly maintaining investments their high since with next-generation of new while years, new renowned for. the our lead announced further these product but made step in and has launch. in in change our design Generally quarter, number increase portfolio CES we've being provides automotive of launches product product functional relatively for In January. wins adoption we platform. resulting performance a secured in time, in large pleased with in at the level a next-generation in SDP long that the customers safety significant

buses. One design generation of in world's an from the upgraded OEMs X.X industrial next of for to guiding X.X SDP shuttle for largest SDP system to used their be airport optical

machine we a for SDP to specialized secured unit presses. addition, control tablet design manufacturer the pharmaceutical win with for a German In power X.X

acoustics from announced new enabling as we both is for audio of QNX Swedish hardware audio quarter, revenue they're the platform. savings Sound, that potential for development expensive exciting During developer building announced Sound bill a well net their into by as Hypervisor. of streams The a software-defined which cockpit new HaleyTek, Android-based QNX experiences. architecture. value-add digital an QNX QNX's our custom foundation significant Sound the eliminating true infotainment is material proposition, systems

for a which the we you announced in may specific our in cockpit automakers that product in a quarters. and engineers early recall Finally, of twin develop QNX that cloud to had Stellantis deployment, will gain traction to in number coming This their the side, a leveraged sale feel of optimistic discussions digital general. We're with now on this that product the industry productized have architecture. was

took past with opportunity to automotive we relevant drive the step verticals market. a large presence we on market, build adding call core in our to quarter, adjacent experience see our another also space. addition our embedded help by efforts what strong in go-to-market forward this In a we or executive senior general to This

in have this, unlikely that we've automakers potential extended QNX on functionality bandwidth efforts we multiple quick their have of fully auto development systems proof software working update IVY. near even are a focusing When like about for on delivering see it have but major delays is for that Finally, year new material are Despite they progressed impact less and IVY. on cycles of had IVY. IVY, term. fiscal concepts on greater this core a with program an on number we'll revenue The the time, OEMs opportunities spoken that

required we've the integrated the initial through the into only team. R&D side, development, investment sales efficiencies for its the our cost expertise and core the believe QNX On and now of but We IVY that reach leverages QNX not is drives also this significant efforts team.

Let quarter a of Secusmart move performance revenue to and components hoc secure management groups top UEM for and BlackBerry's critical that delivered we meaning was X voice All increased Cybersecurity Similar product the provided ad growth. and me now by driven and year-over-year the Revenue XX% and range end X over events year-over-year reflect communications. quarter solid was collectively, million, $XX exceeded This IoT, this guidance management, is strong our a growth division. XX%. encrypted endpoint data. by That key cyber. was to the last we heritage

that with cloud-based services. sovereignty and our deployments, UEM significant deployments due year-over-year strong resonate competition invest target particularly And product mature the to as ceased to is to our need for financial this competition, niche to moat. have in in and other and This with where UEM and typically security most most helped UEM QX. are providers growth concern. our While market continue we of is on-premise the in a a the the We sequential revenue enhance market both and features has deepen there particular, strength data, deliver competitive see government strategically

this our in and still broader new logos is there with offsetting While some we are base, expansions. customer customer churn

of the the deployments both Force for In the speaks as U.K. important ad Corps of other to and product Department U.S. and Enforcement, XXX%, agencies, Air hoc with among quarter, rates integrated Ministry a the we a U.S. large in at of remained had very with expansion which of a growing sequentially renewal with and with of Energy, quarter, Engineers Immigration number to the Ad Customs as year-over-year. Department States Army revenue Similarly, expansion our We including Renewal U.S. significant the and well deals. federal and government secured close U.S. a solid Defense. particular, renewal United how in upsells in secured Hoc estate the high is particular.

buy the within hardware had from solution government, driven This commonly customers on-premise, Secusmart therefore, Revenue these business Because coincide means the good be QX is typically of its is strength the the there a and the been most licenses ahead along typically been Finally, software revenue QX line has with in deals both our where with quarter-to-quarter. device by year-to-date. deployed customer used. sold new variability prior core that can with fiscal from for base year. meaningfully some has full these our refresh largely cycles. in German tied was fact top Together upfront. and This licenses are to recognized hardware, to Secusmart

applications. traction purchasing However, government solution net product for our our major this Europe software-only for we SecuSUITE past a saw military in in logo new further quarter, with deployment

That this traction only, market. And security to services. now me this remains quarter, in we customers And this MDR see not communications churn continued we're our product decline managed Let endpoint the with business. year-over-year move some customer from drove the Services, purchases from in This pleased competitive Cylance said, quarter. adopting or Managed to ongoing Cylance very base that revenue. a our secure

product a focused needs Our launched From and wide Pro their CylanceMDR offerings offering. right MDR provide newly budgets. suit options up with XDR of to our range to on-demand customers our

and We've was and heavily base some product customer a we the Cylance upsell this in years, offsets choice recent the pleased winner Gartner's of that evaluation. New recognized our solution quarter. by our saw recent customer's logo in of we're churn in as MDR in customers invested

metrics rate, at XX%. flat the to $XXX annual DBNRR percentage by year-on-year or consecutive revenue, and Cyber X terms net largely point In for sequentially million. key quarter remains business, our X ARR, by points recurring fourth improved percentage retention of dollar-based for stable, The or year-over-year

largely the themology XX% guidance comment This patents to margins relates of portion on million. licensing Let Gross noncore business, the came remained with briefly [ for a legacy me that at broadly the portfolio in of this revenue sale deals our after allowing predate generated $X in on revenue. ]. of amortization line at which that

the knowledge Tim Tim other Head of finance senior both Now announced and positions continuing well division had appointed finance deep role. forward. was moving previously the a financial BlackBerry's I well and broadly, more the as the him we this forward look our as financial number BlackBerry, to we and appreciation strategy as for that of the are my shareholder focused served base as of Investor and Foote BlackBerry cybersecurity quarter, on CFO new a analysts during CFO. for -- Relations. keep BlackBerry the in strong of really This function including as as Tim what with partnership position in

that, our financials. can with turn the So over more Tim, provide call who to around let some me color

Tim Foote

that good my amount as proud focused everyone. value. a continue opinion, and increase our John, be role underappreciated. significant is is In seeing priority to in top you, I'm to My we this execute Thank as strategy, value joining has clear on recognized. on incredibly And call I'm to that this BlackBerry it's CFO. of afternoon, shareholder

except As be will the reference revenue, I'll non-GAAP. usual, numbers for

As million we've made That results, with million. the quarter expenses was not we of million as $XXX million. baseline tremendous the for XX% at recent decreasing million, that range past our quarter. cost $XXX quarter a only reductions. earlier, was This met cost $XX lower last but XX%. upper to on BlackBerry's than exceeding provided $XXX to that or consistent range operating Total year, company reference Total the exceeded the this end point OpEx $XX structure progress is second provided company margin gross guidance revenue of mentioned John we year-on-year prior

a gave to lower Cost a million. further XX% as of 'XX operations. number we the for OpEx headcount half. of guidance facility also than during September, is $XXX quarterly average And second back-office the focus going It the streamline announced we FY reductions closures we into continue key and remains

line of management needle team has while to to drive significantly the growth. at managing new top The costs at time, the the reducing BlackBerry same thread even managed stabilize and

As profitability cash a result, usage. we've and delivered substantially improved

basis. $XX beat quarter QX, a non-GAAP is loss the $X For million, million operating at adjusted this EBITDA finishing breakeven the was quarter. and Adjusted expectations on EBITDA year-on-year better for by

also EPS continues at to Further, guidance beat Non-GAAP improve. breakeven. cash usage

operating cash that a to timing our certain sequential we that receipts payments,we You may largely usage. during due increase of recall in earnings call, and last expected outlined cash

cash better $XX improving prior year. from operating expected, sales. better QX is for in to usage This than than the first allowing million sequentially patent better However, million. the the usage for last cash $X total, came operating by the in million before And for is year $XX million proceeds half than $XXX

provide financial the fiscal year now QX as whole. a me Let and outlook for

For IoT, this sequentially we million. in and $XX the expect increase range to million revenue $XX to of quarter be to

guidance raising full to million. $XXX is that the range are the our For for IoT such year, million the end revenue, we range now bottom of $XXX

at range million million. million revenue $XX For be million, for to reiterating and $ Cyber, expect we to to full of range XXX the guidance $XX we're the QX $XXX year in

in expect EBITDA $XX And to or to year, between adjusted range between negative QX non-GAAP in expect be positive non-GAAP higher to range EPS, range million positive to $X.XX negative we million. to minus positive for we adjusted fiscal breakeven $XX $X.XX. be of now breakeven the full EBITDA profitability, in to of $X.XX of terms to EPS up The $X.XX. the the be and In

expect to now And QX. and the a in flow improvement sequential in that, me cash return for to to let cash BlackBerry QX positive for flow we John. Finally, and call EBITDA with return

John Giamatteo

Thanks for that, Tim.

with expectations our the move quickly me be we BlackBerry. This divisions to takeaways quarter. let IoT was Before prior good top and line The past work growth. hard this and quarter from than cost for Cyber Q&A, Both a summarize key team that expenses paying the significantly with lower has a million below off managing is done really and operating year-on-year now delivered year $XXX quarter.

in cash significant the before the incredibly the the last $XXX non-GAAP on was path everyone than patent half that the for ourselves the and made a at of significantly position finally, EPS we by quarter the $XX reached proud year-on-year better burn stronger a impact quarter. Blackberry And allowing year as second this achieving into for both half year. to progress profitability first the EBITDA fiscal sale. million for better million BlackBerry going has of milestone for of find and I'm breakeven

let's Q&A. with that, And move to

So please operator, up open the Dave, can you lines?

Operator

first Instructions] from question Our [Operator Canaccord comes Kingsley with Crane Genuity.

William Kingsley Crane

continued execution. the Congrats on

the launch that containers product on what HaleyTek question, new integration we magnitude wins? and business? think of QNX can How opportunity First unlocking design about the up does and open side of

Tim Foote

Yes. Excellent answer I question. Yes. Should that, John?

environment in that familiar something of containers So is sort Kingsley, honest. with a the something quarters. TAM, few to the of expansion we've part are cloud last in Docker heard a very containers fair the that it's ongoing the amount industry It's of -- of is working be just Ultimately, The in approach. sort type this expansion. people

we way are as as towards So the QNX people a move safety-certified containers cloud, of towards obviously looking working.

a this that. So is evolution natural of

from the What showed see that productized we did And at some with was second we the was traction what It in of cloud Stellantis part to question? you things as we're we Sound? remarks that around CES. Yes. side mentioned starting his the John of

HaleyTek. So

this up side sales on that new opens there is we it this we're and of cycles launched year, products sound So the earlier of another another long just things, pleased X that are here, aspect. although the

stack narrative, layers saying and which just each want the is only one past, and those but we've middleware elements sockets, QNX vehicle definitely system, we Sound content more in the of talked of is the about more and operating adding more in not the So about elements. up every

a this vehicles, seeing is obviously, traction, progress. commit to actually into So significant build product seeing someone

pleased that. with we're So

William Kingsley Crane

financials, a then guidance increase on cyber QX modest a sequential the And QX. our just sharper That's to before increase Awesome. in markedly implies good for hear.

I lighter think -- that's quarter. seasonally been historically a been

anything be consider just year that we would So should there this helpful.

Tim Foote

Good question. Yes.

some So for QX at is seeing. through hump I continuation it's growth in Traditionally, the sequential drive it's But actually, we're just strongest standpoint. deals, from actually, say billing the had onetime the of -- QX. Kingsley would QX if trend see a QX, what year, midpoint, which kind helped actually you significant a we the of of you'll last take QX. us, midpoint,

Operator

Baird. question And from comes with next the Luke Junk

Luke Junk

the First, in quarter, a great progression, the question EBITDA I breakeven to sooner expected a related reaching just than achievement.

to to year? OpEx it the in guess that guidance that full to coming with range would in million. some maybe timing I maintained of the at $XX upside if seems down we Just of trying half? sort reconcile than being back quicker trajectory, full seem the to the I you offset EBITDA some should considering the look breakeven anticipated, year suggest be had be to and something in there or

Tim Foote

Yes.

we're guidance with trying here, Luke. obviously our to So be prudent

So delighted breakeven still of the to in make full to terms We're QX year to at ahead was do got a of in negative we But be EBITDA. QX. midpoint, little a bit X%. schedule the positive

can take QX that improvements So assume from and into QX going sequential if into you QX there'll -- QX. be you

helps. that hopefully, So

Luke Junk

hoping you go-forward IVY things. It Maybe organization could while into X there you key also does. in QNX just second, of talent integrating And the kind on on those reducing just organizational if just of square more basis, just double-click changes then the the that balancing to a cost? relative could and retaining

John Giamatteo

last is a Look, -- we've out was team focused that this dedicated into a very the project. holistic over lot of we really, actually as a by we virtue John. really platform few and IVY Yes. building the did It's invested on years, IVY it

looking to a you where to lot the a that level, deliver and the to market. meaning we're a to came conclusion the we think certain you're baseline, I of a once now there's product that capabilities get features

by it's other members, very on that or side. R&D the operational sales front-end of that bringing side kind synergistically felt the some QNX team there's we whether efficiencies sales, together gain like could We on with

we efficiency so some I we've the progress right first platform those of that. made the of to moving to leveraging half So that since the along think much this the kind that in do was time came that conclusion of year on

Operator

Capital next with RBC question And the from Markets. comes Treiber Paul

Paul Treiber

reorganizing you what's you're systems quarter, go Could mentioned some the an just from on the here? changes organizational provide up you last process? the of and an splitting structure, separation and to working IT through update remaining I to think perspective operational that

John Giamatteo

Yes, progress Paul. on made tremendous We that.

aligning dive course of deep fruit kind the that we've reviews having the got solutions splitting of that. And it to components networking, There the just weeks. BUs. it think are we're couple some We've the We of low-hanging lot within fact, organization. some on the achieved the of in largely our out, a cyber within place. over that CISO some last In of of protection

before, probably some of a takes are think I that things more bit a naturally we more bit to intertwined little mentioned unravel. time little these

move we're the cost, right introduce the at same on So the BUs, to far too agile move them strike trying operate go we dissynergies. let resources, them where in start a the don't put these them balance very But to into time, way.

we right the striking balance, operating. is where we're business the So like of kind feel

significant the can that how You want, we we're the making But at same see it. we're that time, generating wins, driving the and costs design out revenues the of progress business. the we operate the

we saying it an just -- much progress to don't we're introduce eye So with are look balance made of but sake cost now want right start on at right the that, we at this it towards point. don't overstep costs for striking reducing at structure We'll in things our so separated. the continue additional to feel we to like

right that strike to balance. trying we're So

Paul Treiber

helpful understand. That's to

organizations, profitability the Just in think as here? you How of seeing two? you we sort untangle between the about differences that on -- X structural should are

Tim Foote

Yes.

fresh lot XX, say take has us color definitely I a say on into So opportunity Day will going to whole we're providing process given October this if the to is look. would around tune that the Investor you And divisional a on profitability. be more

if then, okay, Paul. that's until it leave we'll So

Paul Treiber

Sure.

for Just me. one one last

of about higher expectations? think it up look upside that the revenue a future of prior Was view? Cyber, And major does relative was guidance? from -- Was of drivers versus on of quarter. then your pull how this mix do it the catch driver primary quarters the timing that Just to that like the is of it quarters? Was forward that license point from we one from

John Giamatteo

Yes.

with some device it a hardware, think and I generated through cycle to was renewed that UEM had on. helpful we the and German We're hoc orders the license some both as that business. a with customers did our the ad customers, the of upside that they're business of mentioned. combination business some we this expansions durability But we they refresh and were and large some were encouraged working quarter. of that the Secusmart encouraged of really

license, and been kind I the think quarter service particular it's this broad-based really So achievement for hardware. was of across

Operator

next with Our comes Cowen. question Chan TD from Daniel

Daniel Chan

the but Any of not of countries? it proposed hardware? software just and from potential Chinese potential the maybe U.S., auto impact in other ban And the to expanding

Tim Foote

an for news a important It's also well closely. of say guess good very proud market good company is a very more The China But we're slightly kind definitely the fair neutral QNX us. being Obviously, really it's in watching closely. something from I diversified is watching standpoint. and geographically we're us bucket. to puts an question. for Canadian industrial we're

-- the develops we what see what to that. from So need

Daniel Chan

design potential revenue impacting should we several in think or programs, that years? And the programs canceled delayed now, then the about you're how seeing royalty those

Tim Foote

trends Yes, still not OEMs it the quickly and the developing production. about secular stage into business. us good a to question very is very for is way news think moving it's The long-term work is how of away. Ultimately, timing, can of this ultimately Dan, get then good this software a actually are just gone it, the It's much The we question. has that there. this a

know, stream in next winner for we've locked and revenue years. the XX design, got you we a of As kind

base. got which us a really $XXX our backlog, million in solid we've already And gives

that continue not and kind powering like, as to that We're the So make have in away, this bumps these secular industry kinks gone work are if progress. we'll this of through. road, confident trends get very the you in

Daniel Chan

I in of Just this over ARR in may. if on of changed reverse X trajectory reverse kind Cybersecurity, What and questions a months of improved to that sequentially. The last kind declined QX of the couple quarter, momentum? kind

John Giamatteo

good say, was That's would a I relatively overall, good -- Yes. flat. question. year-over-year really

some quarter-to-quarter, in probably of or be from going think with the we've of it quarter is I churn there's is that little more associated bumps variability, of a over to of the bit the X. course experienced Cylance some that last

So some at the that that. of was probably time, UEM downward pressure. with But same seen of some of of the and part offsetting the trends some we've that we're AtHoc,

of always last we're there'll I the based they serve. businesses So bit couple of from the a think, markets than more that But be, just perspective, little in that of on much it's stable from a variability nature years. the it's quarter-to-quarter pleased been and long-term our

Daniel Chan

the color see And upsell improving Nice cross-sell? job the better? you a and with be Is Or doing revenue better net Any one last for churn are retention to is me. would it improving. because the getting helpful.

John Giamatteo

a bit bag. little of all a Combination it, of of mixed

think some UEM in That's upsell a with there's some Cylance some good hoc really of side, the on good the side. offset churn. I upsell the really ad little -- bit definitely some

any points to want direction. not stabilizing So it good see It's to right right good whatever, it direction. to but quarters where by for be it's moving in consecutive it's and we of see moving in across portfolio, X the means, the the still

Operator

Equities Global with Chowdhry Trip from comes question Research. next The

Trip Chowdhry

exciting quarter. very A

they're start-up. way much business that shape look technologies new every you if these at X point have give is very from because the team as which opportunities the a perspective, they a I very different if different be and on your let you well a that you thinking company have I very is narrative future and if create a you emerging at better in analysts' other is the a looking points sense thinking BlackBerry doing on underappreciated say is the here. versus your based are so start-up, think if Why platforms the are, understood, is not I I'm backward questions, and to I and the lot I opportunity at a Black new me a was X, look you think could thinking X just traditional versus way looking there

First, Jony the no now it devices. less we can of -- there's months. extrapolating, but And and instance one popular the This than road. those is be There's are Ive devices. I'm AI one has down generative X, that to where fast create forward, only trying an last new emerged over iPhones emergence could that's right X OpenA if thing

being and think lot call models there that old in have and prone Second, when you It happening. coming, are intelligence as product talked videos being are opportunity in about AIs that much paradigm they if it, in a language models now small is generative the AI of injections is on-premises remarks, we and situation. McAfee, when you is extrapolate including that that so for now from came it because on of a you PCs, terms have a wonderful just is example, CEO good is an UEM injection new AI who prepared very done for you Intel

exciting there getting the are at many offline. that problems the new BlackBerry thinking technologies is the is dead can go thing and startup, -- we have. way only others should is we now. experiences as I'm that you something So The be a with looking But attacking

really and know this you it? right initial it I are Of you're go it. happen I want well, to you to have course, sharpest one Tim, I and on in our BlackBerry what thought eyes. views CFOs. technologist the is about would your if thinking since was being very say, created industry most I and of So of front capture

nice a me on congratulations from and all that's So quarter.

Tim Foote

want No, thanks so much. you John, to... did

John Giamatteo

at product really look one a a I with AI-centric. is can Trip, it you businesses growth, that helped the as talk really a we step and resonate, in, what Just has I back thing taking start-up, a whether -- what I we about taking of turbocharge are would as how us things one And given X think portfolios the BUs, a dynamic that got back next-generation in around from can strategy to pull it's lead to interesting that describing you're which which insights our setting on. we've and are maybe and some markets whole ones allocation, really this more more to growth things us capital ones on up

tune and about, we'll we're Trip. Day, definitely and the of portfolio look invest at the that in Investor capital a more allocation of kind you're more on the how things to talking at more shaping details that investments our company kinds So share in upcoming of where some our for

Operator

with Li The Raymond next Steven comes question from James.

Steven Li

cyber, you your John, are I'm in But can I And year-over-year you managed say drove mishear not I Did services heard sure revenues. I think if more offering. adopting or misheard the elaborate? decline on you. Cylance' customers that I

John Giamatteo

Yes.

me -- Steven. clear, I maybe wasn't Let

components. Just within silane there's kind of X

on Our had in some when basis. product-centric customers very our was the license general. That it endpoint company, we've capability out our that's EDR where some some trends a the rates, business, And area the bought market classic That's -- That's protection, of we've renewal with sluggishness. built optics. company, product historical we've part it just product-only seeing had as the we're and defections. that very the the in a where we where

don't where us own customers that existing from the an resources we their to scenario for it manage they upside perspective. where wherewithal we moving or are some have people is and MDR MDR, the from But product-only to that do saw look environments, to manage

the customer the only of the of on the but quarter, interesting seen business, segment some that was good we've conversions, So wins actually weakness product that base. downside good in some offset pipeline, some part by our of of kind

Operator

over This answer to question any concludes closing to would like turn for our the conference Giamatteo I session. back remarks. and John

John Giamatteo

Terrific. Thank Dave. you,

opportunities allocation as groups will in Investor event, wrap them. our and time, and first take that X we depth Day this positioned as IoT product want just have York for before we to the and about for review into deeper expertise We'll providing Cybersecurity everybody both we're to capital and explain as performance the of of Stock on capitalize our Exchange and 'XX. be our cyber where upcoming October for at outlook our showcase and they At going to XX. market dive the the cybersecurity I fiscal our remind segmented New the divisions teams new are products a 'XX on So priorities year also well the P&Ls IoT up, both our

is Investor web up the the you event page. to sign general The via public can on and Relations available webcast,

joining for you seeing look next So to forward time. thanks all today again and

Operator

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

now disconnect. may You

BlackBerry Limited (BB) 26 Sep 242025 Q2 Earnings call transcript