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BLACKBERRY LIMITED

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Delayed Toronto Stock Exchange  -  04:00 2022-06-24 pm EDT
7.400 CAD   +5.87%
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BlackBerry Provides Long-term Financial Targets

05/20/2022 | 04:03am EDT

BlackBerry Limited (NYSE: BB; TSX: BB) today provided its long-term financial targets in connection with its annual analyst summit event.

The company released the following guidance:

Revenue Targets:

FY22

Actual

FY25

Target

FY27

Target

5-year CAGR

$M

$M

$M

%

IoT*

178

307

443

20%

Cybersecurity

477

579

770

10%

Total BlackBerry**

655

886

1,213

13%

Excludes potential revenue from BlackBerry IVY

** Excludes revenue from Licensing & Other for comparability

The Company is targeting:

An average 100+ basis points increase in non-GAAP gross margin per year to FY27.

Non-GAAP operating margin of approximately 20% by FY27.

Investing approximately 30% of revenue on Research & Development in FY23.

To be modestly non-GAAP EPS and cashflow negative in FY23 due to investment plans.

To be approaching breakeven non-GAAP EPS and cashflow in FY24.

To generate positive non-GAAP EPS and cashflow beginning in FY25.

IoT:

IoT Serviceable Addressable Market (SAM) is expected to grow at approximately 8-12% per year from FY23 to FY26.

Revenue growth for the IoT business unit is expected to exceed the market growth rate resulting in an increase in market share above the current level of 26% in core automotive domains.

Revenue from production-based royalties is expected to grow faster than revenue from the pre-production design phase, increasing the portion of total revenue from royalties.

The SAM for BlackBerry IVY is expected to be approximately $800 million in FY25.

BlackBerry is targeting its first IVY design wins in FY23.

Cybersecurity:

The SAMs for endpoint security and managed cybersecurity services are expected to grow at 15% and 14%, respectively, per year to FY27.

Revenue for the Cybersecurity business unit, excluding UEM, is expected to grow with a 5-year CAGR of approximately 16% to FY27.

Churn in the UEM customer base is expected to negatively impact revenue and Annual Recurring Revenue (ARR) in FY23, but the impact is expected to become less significant from FY24 onwards.

Approximately 20% of the UEM customer base is in non-core verticals, and those customers, representing annual revenue in the region of $40 million, are exhibiting higher than average churn.

Approximately 64% of the Cylance customer base currently buys 1 Cylance module, and approximately 27% buy 2 modules. Management is targeting selling additional modules to these customers.

The presentation used during the financial session of the analyst summit, held at 4pm ET today, can be found on the BlackBerry.com/Investors website here.

A replay of the financial session will also be available on the BlackBerry.com/Investors website at approximately 8pm ET today.

This press release refers to certain non-GAAP measures. The company believes that these non-GAAP measures, which may be defined differently by other companies, explain the company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the company's business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. For a reconciliation between the non-GAAP measures used in this presentation and measures determined in accordance with GAAP, and an explanation of why the company uses them, please see the company's annual report on Form 10-K, which is available on the EDGAR, SEDAR and BlackBerry.com websites.

For more information, follow @BlackBerry on Twitter, Facebook or LinkedIn and view the company's corporate video which highlights how BlackBerry addresses today's enterprise security challenges.

About BlackBerry

BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including over 195M vehicles. Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems. BlackBerry's vision is clear - to secure a connected future you can trust.

BlackBerry. Intelligent Security. Everywhere.

For more information, visit BlackBerry.com and follow @BlackBerry.

Investor Contact:

BlackBerry Investor Relations

+1 (519) 888-7465

investorrelations@blackberry.com

Media Contact:

BlackBerry Media Relations

+1 (519) 597-7273

mediarelations@blackBerry.com

(C) 2022 Electronic News Publishing, source ENP Newswire

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Financials (USD)
Sales 2023 687 M - -
Net income 2023 -542 M - -
Net Debt 2023 333 M - -
P/E ratio 2023 -6,33x
Yield 2023 -
Capitalization 3 307 M 3 307 M -
EV / Sales 2023 5,30x
EV / Sales 2024 4,70x
Nbr of Employees 3 325
Free-Float 98,2%
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Managers and Directors
John S. Chen Executive Chairman & Chief Executive Officer
Steve Rai Chief Financial Officer
Charles Eagan Chief Technology Officer
Christopher Hummel Chief Information Officer
Randall Cook Secretary, Chief Legal, Compliance & Risk Officer
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