The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Luke Junk - Robert W. Baird & Co. Incorporated. - Analyst
: Good afternoon. Thanks for taking the question, John. I'm hoping, near term, you could just unpack what's driving the improvement that you're
seeing in IoT royalties. Is it the new launches coming online? Is it ramping the prior launches? And given what's driving it, just how sustainable
would you think that improvement that we're seeing in the royalties is right now? Thank you.
Question: Luke Junk - Robert W. Baird & Co. Incorporated. - Analyst
: And then for my follow-up, maybe a bigger picture question. There's been some investor concern emerging about auto software suppliers and
compute and what not being supplanted by OEM partnerships potentially in the wake of VW and Rivian last night. I'd just be curious to get your
perspective on that. And especially, this is pretty real time, but I'd be maybe even more curious about just your insight from ongoing dialogue with
your customers and what the OEMs you're engaged with are thinking and saying.
Question: Luke Junk - Robert W. Baird & Co. Incorporated. - Analyst
: That's helpful color. Thanks.
Question: Paul Treiber - RBC Capital Markets - Analyst
: Thanks for taking the question. Just a comment in regards -- or a question in regards to the cost reductions. It's good to see more progress, and I
think you're up to $125 million. How do we think about the path or the opportunity to achieve the remaining $25 million to reach your target of
$150 million?
Question: Paul Treiber - RBC Capital Markets - Analyst
: And then a follow-up on the IT systems. Is that the bottleneck or the constraint in terms of the separation of the business units at this point? And
then once you get through that, will you be effectively ready to separate or split the two units?
Question: Paul Treiber - RBC Capital Markets - Analyst
: Thanks for taking the questions.
Question: Todd Copeland - CIBC - Analyst
: (technical difficulty) continue along the lines of the split of the business. When would you expect to provide segmented results for the two units
below the revenue line?
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JUNE 26, 2024 / 9:30PM, BB.TO - Q1 2025 BlackBerry Ltd Earnings Call
Question: Todd Copeland - CIBC - Analyst
: Okay, great. So you'll break it out, I guess, with the summer quarter's results and you'll present that at the Analyst Day?
Question: Todd Copeland - CIBC - Analyst
: And October 16 is when you plan to unveil the segmented reporting below the revenue line?
Question: Todd Copeland - CIBC - Analyst
: Okay. My second question is I didn't quite understand the headwind comment in IoT. So I got the upside from royalties in the quarter. But then
you went on to talk about mix of drivetrains, and that's a headwind to the business. And so I just wanted to make sure I understood what's causing
that. Is that going to cause the IoT growth rate to settle below the 18% as we go through the year? Just talk through that again please? Thank you.
Question: Todd Copeland - CIBC - Analyst
: Yeah, that does help. And those headwinds for the programs, that's not new. That's been going on for a little while, right?
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JUNE 26, 2024 / 9:30PM, BB.TO - Q1 2025 BlackBerry Ltd Earnings Call
Question: Todd Copeland - CIBC - Analyst
: And what breaks the logjam on that with what you see today? Just talk through how you're thinking about that. Thanks very much.
Question: Todd Copeland - CIBC - Analyst
: Great. Appreciate it. Thank you.
Question: Kingsley Crane - Canaccord Genuity - Analyst
: Hi. Thanks for taking the question. So between CylanceMDR and MDR on demand, can you talk more about the expansion opportunities you have
with respect to endpoint outside of bringing more endpoints under coverage?
Question: Kingsley Crane - Canaccord Genuity - Analyst
: Right. Okay. That's really helpful. And so on the cyber business as a whole, you've done a remarkable job rationalizing costs. Can you talk about
what product initiatives you are excited about investing in and how you expect those could drive growth?
Question: Kingsley Crane - Canaccord Genuity - Analyst
: Thank you. Appreciate the time. Great to see the progress.
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