BlackBerry Ltd Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mike Walkley - Canaccord Genuity Group Inc - Analyst : Great, thank you. Just wanted to delve in a little bit to the improving ARR on the cybersecurity business. With the endpoint market still over 40% legacy solutions, and it sounds like Cylance was part of the improvement this quarter. Can you just talk about how BlackBerry's position, relative to some of the legacy players, and how you see maybe growth in this segment over the course of the year?

Question: Mike Walkley - Canaccord Genuity Group Inc - Analyst : And just for my follow-up question. On the IoT business, strong close to the year and a lot of records in that strong royalty backlog. But you've laid out some delays and the guidance suggests maybe mid-single-digit growth this year. Based on your conversation with customers and some of these delays, are these multi-year delays as you talk about the opportunity to grow that backlog, or do you see things kind of ramping through this year and picking up in calendar '25?

Question: Mike Walkley - Canaccord Genuity Group Inc - Analyst : Understood. Thanks for taking my two questions and congrats on the cost execution.

Question: William Kerwin - Morningstar Research Services LLC - Analyst : Hi, everyone. Thanks for letting me get a question. And maybe just to keep it on the IoT business. Obviously, a lot of positive announcements at CES. Just curious how those have been received so far over the course of the past three months? And are they already gaining some traction in the pipeline as you look going forward? And just maybe as a follow-up to that, the path to get towards kind of a double-digit growth profile in this business. Understand it's still growing but slower than you would probably like.

Question: William Kerwin - Morningstar Research Services LLC - Analyst : Awesome. That makes sense. And if I could just tack one more on. Obviously, some good progress on the cost savings already. Just curious if you could cut talk through why you think the targets that you've laid out are the right size for the business? And how you see the progress going forward, I guess, longer term past, the fiscal '25? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 03, 2024 / 9:30PM, BB.TO - Q4 2024 BlackBerry Ltd Earnings Call

Question: William Kerwin - Morningstar Research Services LLC - Analyst : Awesome. Thanks so much, and congrats on the beat this quarter.

Question: Paul Treiber - RBC Capital Markets LLC - Analyst : Well, thanks very much and good afternoon. It's helpful that I think next quarter you're breaking out sales and marketing from G&A. You touched on the split of the company into IoT and cyber. What should we expect in terms of the disclosures around segmented profitability between IoT and cyber and the time frame for that?

Question: Paul Treiber - RBC Capital Markets LLC - Analyst : Okay, and my second question just relates to the future opportunities for cost savings. I mean, also with that, what's the timeframe that you're targeting to make those announcements? And does that also relate to the split of those segments so we may get everything at once? And then can you also elaborate on the nature of those reductions that you're considering?

Question: Paul Treiber - RBC Capital Markets LLC - Analyst : Thank you.