BLACKBERRY LIMITED BlackBerry Investor Relations Supplement
GAAP Income Statement | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
(Three Months Ended) | ||||||||||||
Cybersecurity | $ | 107 | $ | 120 | $ | 128 | $ | 122 | $ | 477 | $ | 113 |
IoT | 43 | 40 | 43 | 52 | 178 | 51 | ||||||
Software and Services | 150 | 160 | 171 | 174 | 655 | 164 | ||||||
Licensing and Other | 24 | 15 | 13 | 11 | 63 | 4 | ||||||
Revenue | 174 | 175 | 184 | 185 | 718 | 168 | ||||||
Cost of Sales | 60 | 63 | 67 | 61 | 251 | 64 | ||||||
Gross Margin | 114 | 112 | 117 | 124 | 467 | 104 | ||||||
Operating expenses | - | |||||||||||
Research and development | 57 | 58 | 57 | 47 | 219 | 53 | ||||||
Selling, marketing and administration | 73 | 83 | 77 | 64 | 297 | 82 | ||||||
Amortization | 46 | 45 | 42 | 32 | 165 | 27 | ||||||
Debentures fair value adjustment | (4) | 67 | (110) | (165) | (212) | (46) | ||||||
Litigation settlement | - | - | - | - | - | 165 | ||||||
Total operating expenses | 172 | 253 | 66 | (22) | 469 | 281 | ||||||
Operating Income (Loss) | (58) | (141) | 51 | 146 | (2) | (177) | ||||||
Investment income (loss), net | (2) | (1) | 25 | (1) | 21 | (1) | ||||||
Income (Loss) before income taxes | (60) | (142) | 76 | 145 | 19 | (178) | ||||||
Provision for income taxes | 2 | 2 | 2 | 1 | 7 | 3 | ||||||
Net Income (Loss) | $ | (62) | $ | (144) | $ | 74 | $ | 144 | $ | 12 | $ | (181) |
Earnings (Loss) per share | ||||||||||||
Basic earnings (loss) per share | $ | (0.11) | $ | (0.25) | $ | 0.13 | $ | 0.25 | $ | 0.02 | $ | (0.31) |
Diluted loss per share | $ | (0.11) | $ | (0.25) | $ | (0.05) | $ | (0.03) | $ | (0.31) | $ | (0.35) |
Weighted-average number of common shares outstanding (000s) | ||||||||||||
Basic | 567,358 | 568,082 | 571,138 | 575,883 | 570,607 | 576,877 | ||||||
Diluted | 567,358 | 568,082 | 631,971 | 636,716 | 631,440 | 637,710 | ||||||
Segment Gross Margin (Three Months Ended) | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
Cybersecurity | ||||||||||||
Segment revenue | $ | 107 | $ | 120 | $ | 128 | $ | 122 | $ | 477 | $ | 113 |
Segment cost of sales | 46 | 49 | 52 | 47 | 194 | 53 | ||||||
Segment gross margin | 61 | 71 | 76 | 75 | 283 | 60 | ||||||
Segment gross margin % | 57% | 59% | 59% | 61% | 59% | 53% | ||||||
IoT | ||||||||||||
Segment revenue | 43 | 40 | 43 | 52 | 178 | 51 | ||||||
Segment cost of sales | 7 | 7 | 8 | 8 | 30 | 8 | ||||||
Segment gross margin | 36 | 33 | 35 | 44 | 148 | 43 | ||||||
Segment gross margin % | 84% | 83% | 81% | 85% | 83% | 84% | ||||||
Licensing and Other | ||||||||||||
Segment revenue | 24 | 15 | 13 | 11 | 63 | 4 | ||||||
Segment cost of sales | 6 | 6 | 6 | 5 | 23 | 2 | ||||||
Segment gross margin | 18 | 9 | 7 | 6 | 40 | 2 | ||||||
Segment gross margin % | 75% | 60% | 54% | 55% | 63% | 50% | ||||||
Total Segment Gross Margin | 115 | 113 | 118 | 125 | 471 | 105 | ||||||
Adjustment to cost of sales | (1) | (1) | (1) | (1) | (4) | (1) | ||||||
Total Gross Margin | $ | 114 | $ | 112 | $ | 117 | $ | 124 | $ | 467 | $ | 104 |
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Key Metrics (Three Months Ended) | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | Q1FY23 | |||||||
Annual Recurring Revenue | ||||||||||||
Cybersecurity | $ | 364 | $ | 364 | $ | 358 | $ | 347 | $ | 334 | ||
IoT | $ | 86 | $ | 89 | $ | 91 | $ | 93 | $ | 94 | ||
Dollar-Based Net Retention Rate | ||||||||||||
Cybersecurity | 94% | 95% | 95% | 91% | 88% | |||||||
Cybersecurity Total Contract Value Billings | $ | 77 | $ | 104 | $ | 112 | $ | 125 | $ | 89 | ||
QNX Royalty Revenue Backlog | $ | 490 | $ | 560 | ||||||||
Non-GAAP Income Statement | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
(Three Months Ended) | ||||||||||||
Cybersecurity | $ | 107 | $ | 120 | $ | 128 | $ | 122 | $ | 477 | $ | 113 |
IoT | 43 | 40 | 43 | 52 | 178 | 51 | ||||||
Software and Services | 150 | 160 | 171 | 174 | 655 | 164 | ||||||
Licensing and Other | 24 | 15 | 13 | 11 | 63 | 4 | ||||||
Revenue | 174 | 175 | 184 | 185 | 718 | 168 | ||||||
Cost of Sales | 59 | 62 | 66 | 60 | 247 | 63 | ||||||
Adjusted Gross Margin | 115 | 113 | 118 | 125 | 471 | 105 | ||||||
Operating expenses | ||||||||||||
Research and development | 55 | 56 | 55 | 45 | 211 | 51 | ||||||
Selling, marketing and administration | 69 | 74 | 74 | 62 | 279 | 77 | ||||||
Amortization | 14 | 13 | 13 | 10 | 50 | 4 | ||||||
Total adjusted operating expenses | 138 | 143 | 142 | 117 | 540 | 132 | ||||||
Adjusted Operating Income (Loss) | (23) | (30) | (24) | 8 | (69) | (27) | ||||||
Investment income (loss), net | (2) | (1) | 25 | (1) | 21 | (1) | ||||||
Adjusted Income (Loss) before income taxes | (25) | (31) | 1 | 7 | (48) | (28) | ||||||
Provision for income taxes | 2 | 2 | 2 | 1 | 7 | 3 | ||||||
Adjusted Net Income (Loss) | $ | (27) | $ | (33) | $ | (1) | $ | 6 | $ | (55) | $ | (31) |
Adjusted EBITDA | $ | (6) | $ | (14) | $ | (8) | $ | 20 | $ | (8) | $ | (21) |
Adjusted earnings (loss) per share | ||||||||||||
Basic and diluted earnings (loss) per share | $ | (0.05) | $ | (0.06) | $ | (0.00) | $ | 0.01 | $ | (0.10) | $ | (0.05) |
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Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures
Non-GAAP Adjustments (Three Months Ended) | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
Debentures fair value adjustment | (4) | 67 | (110) | (165) | (212) | (46) | ||||||
Restructuring charges | - | - | - | - | - | 1 | ||||||
Stock compensation expense | 7 | 12 | 6 | 5 | 30 | 7 | ||||||
Acquired intangibles amortization | 32 | 32 | 29 | 22 | 115 | 23 | ||||||
Litigation settlement | - | - | - | - | - | 165 | ||||||
Total Non-GAAP Adjustments | $ | 35 | $ | 111 | $ | (75) | $ | (138) | $ | (67) | $ | 150 |
Adjusted Gross Margin | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
GAAP revenue | $ | 174 | $ | 175 | $ | 184 | $ | 185 | $ | 718 | $ | 168 |
Total cost of sales | 60 | 63 | 67 | 61 | 251 | 64 | ||||||
Non-GAAP adjustments to cost of sales | (1) | (1) | (1) | (1) | (4) | (1) | ||||||
Adjusted Gross Margin | $ | 115 | $ | 113 | $ | 118 | $ | 125 | $ | 471 | $ | 105 |
Adjusted Gross Margin % | ||||||||||||
Research and development | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
GAAP research and development expense | $ | 57 | $ | 58 | $ | 57 | $ | 47 | $ | 219 | $ | 53 |
Stock compensation expense | 2 | 2 | 2 | 2 | 8 | 2 | ||||||
Adjusted research and development expense | $ | 55 | $ | 56 | $ | 55 | $ | 45 | $ | 211 | $ | 51 |
Selling, marketing and administration | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
GAAP selling, marketing and administration expense | $ | 73 | $ | 83 | $ | 77 | $ | 64 | $ | 297 | $ | 82 |
Restructuring charges | - | - | - | - | - | 1 | ||||||
Stock compensation expense | 4 | 9 | 3 | 2 | 18 | 4 | ||||||
Adjusted selling, marketing and administration expense | $ | 69 | $ | 74 | $ | 74 | $ | 62 | $ | 279 | $ | 77 |
Amortization | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
GAAP amortization expense | $ | 46 | $ | 45 | $ | 42 | $ | 32 | $ | 165 | $ | 27 |
Acquired intangibles amortization | 32 | 32 | 29 | 22 | 115 | 23 | ||||||
Adjusted amortization expense | $ | 14 | $ | 13 | $ | 13 | $ | 10 | $ | 50 | $ | 4 |
Adjusted EBITDA | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
GAAP operating income (loss) | $ | (58) | $ | (141) | $ | 51 | $ | 146 | $ | (2) | $ | (177) |
Non-GAAP adjustments to operating income (loss) | 35 | 111 | (75) | (138) | (67) | 150 | ||||||
Adjusted operating income (loss) | (23) | (30) | (24) | 8 | (69) | (27) | ||||||
Amortization | 49 | 48 | 45 | 34 | 176 | 29 | ||||||
Acquired intangibles amortization | (32) | (32) | (29) | (22) | (115) | (23) | ||||||
Adjusted EBITDA | $ | (6) | $ | (14) | $ | (8) | $ | 20 | $ | (8) | $ | (21) |
Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income (Loss) | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
and Adjusted Earnings (Loss) per Share | ||||||||||||
GAAP net income (loss) | $ | (62) | $ | (144) | $ | 74 | $ | 144 | $ | 12 | $ | (181) |
Total Non-GAAP adjustments (Three months ended, after-tax) | 35 | 111 | $ | (75) | $ | (138) | (67) | 150 | ||||
Adjusted Net Income (Loss) | $ | (27) | $ | (33) | $ | (1) | $ | 6 | $ | (55) | $ | (31) |
Adjusted Earnings (Loss) per Share | $ | (0.05) | $ | (0.06) | $ | (0.00) | $ | 0.01 | $ | (0.10) | $ | (0.05) |
Shares outstanding for adjusted earnings (loss) per share reconciliation | 567,358 | 568,082 | 571,138 | 575,883 | 570,607 | 576,877 |
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Pre-Tax Restructuring Details
Restructuring charges | Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | ||||||
Cost of Sales | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
Selling, marketing and administration | - | - | - | - | - | 1 | ||||||
Total restructuring charges | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 1 |
Amortization of Intangibles and Property, Plant and Equipment Details
Q1FY22 | Q2FY22 | Q3FY22 | Q4FY22 | FY22 | Q1FY23 | |||||||
Cost of sales amortization | ||||||||||||
Property, plant and equipment | $ | 1 | $ | 1 | $ | - | $ | 1 | $ | 3 | $ | - |
Intangible assets | 2 | 2 | 3 | 1 | 8 | 2 | ||||||
Total in cost of sales amortization | 3 | 3 | 3 | 2 | 11 | 2 | ||||||
Operating expenses amortization | ||||||||||||
Property, plant and equipment | 3 | 3 | 4 | 2 | 12 | 4 | ||||||
Intangible assets | 43 | 42 | 38 | 30 | 153 | 23 | ||||||
Total in operating expenses amortization | 46 | 45 | 42 | 32 | 165 | 27 | ||||||
Total amortization | ||||||||||||
Property, plant and equipment | 4 | 4 | 4 | 3 | 15 | 4 | ||||||
Intangible assets | 45 | 44 | 41 | 31 | 161 | 25 | ||||||
Total amortization | $ | 49 | $ | 48 | $ | 45 | $ | 34 | $ | 176 | $ | 29 |
Adjusted income (loss) before income taxes, adjusted net income (loss), adjusted Gross Margin, adjusted gross margin percentage, adjusted Operating Income (Loss), adjusted Net Income (Loss), adjusted EBITDA, and adjusted Earnings (Loss) Per Share, adjusted research and development expense, adjusted selling, marketing and administrative expense, and adjusted amortization expense do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures and non-GAAP ratios enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company's filings on SEDAR and EDGAR.
The company makes no commitment to update the information above subsequently.
Key metrics such as Annual Recurring Revenue ("ARR), Dollar-Based Net Retention Rate ("DBNRR"), Cybersecurity total contract value ("TCV") billings and QNX Royalty Revenue Backlog do not have a standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies. The Company regularly monitors a number of financial and operating metrics, including key metrics, in order to measure the Company's current performance and estimate future performance.
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BlackBerry Ltd. published this content on 23 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 June 2022 22:05:11 UTC.
