Q2 2021 BlackBerry Ltd Earnings Call
Ladies and gentlemen, this is the operator todays conference is scheduled to begin momentarily until that time your lines will be again placed on him musical. Thank you for your patience.
[music].
Good morning, and welcome to the Blackberry second quarter fiscal year 2021 results Conference call. My name is James and I will be your conference moderator for today's call during the presentation all present.
Oh, okay.
All participants will be in listen only mode, we will be.
We will be facilitating a brief question and answer session towards the end of the conference.
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I like to turn the call over to Jim for Investor Relations. Please go ahead.
Thank you James Good morning, and welcome to Black brings second quarter fiscal Twentytwenty, One earnings conference call.
With me today on the call, our executive Chairman and Chief Executive Officer, John Chen and Chief Financial Officer, Steve right.
Oh, sorry, I read all cautionary notes regarding forward looking statements John will provide a business update and Steve will review the financial results.
Well then open the call for a brief <unk> session.
This call is available to the general public five cold in numbers and five webcast in the Investor information section of Blackberry Dot com.
A replay.
So on the block freaked out calling what website so.
Some of the statements, we'll be making today constitute forward looking statements and are made pursuant to the safe Harbor provisions of applicable U.S. and Canadian Securities laws.
Indicate forward looking statements by using words, such as expect will should model intend believe and similar expressions.
Forward looking statements are based on estimates and assumptions made by the company in light of its experience and its perception of historical trends current conditions and expected future developments as well as other factors that the company believes are relevant many.
Many factors could cause the company's actual results or performance to tick up materially from those expressed or implied by the forward looking statements. These factors include the risk factors discussed in the company's new fundings and M.D. unite including the Capex 19 pandemic.
You should not place undue reliance on the Companys, who wouldn't looking statements. The company has no intention and undertakes no obligation to update or revise any forward looking statements, except as required by law.
As is customary joining the call John and Steve will reference non-GAAP numbers and a summary of our quarterly results.
For a reconciliation between GAAP and non-GAAP numbers. Please see the earnings press release and supplement published earlier today, which are available on the Edgar SEDAR and black free Dot com websites and with that I'll turn the call Dave It's a joke.
Thanks, Tim Good morning, everybody and thank you for joining us and I hope everybody is safe and well this past quarter, we delivered strong revenue and EPS results, beating expectations. Despite the continued challenge related to tackle the 19.
We start with financial highlights in the quarter and then move on to the business commentary.
As usual I will reference some financial performance in non-GAAP in the non-GAAP numbers.
Blackberry reported total revenue of 266 million, increasing both sequentially and year over year.
The course box platform performs well maintaining the work from anywhere momentum from Q1.
QNX continue to be a negative to be negatively impact by the temporary slowdown in the auto production, but but we are seeing signs of recovery more more on this later.
As we mentioned during our first quarter earnings call, we anticipated licensing to EPS strong second quarter and it did reporting revenue of 108 million.
Second quarter total company billings showed strong sequential growth in all parts of the business, except for QNX, which remain flat sequentially gross.
Gross margin increased by six percentage points sequentially to 78% due to the revenue mix earnings per share came in at 11 cents.
Cash generated from operations was 31 million.
Total ending cash and investment as on August 31st was 977 million 977.
The company continues to be financially healthy and in a strong position to focus on our long term strategy.
Let me start now bye bye bye, providing business commentary with the software and services group revenue for the quarter was 158 million.
They are was approximately 486 486 million dollar based net retention was 92% net customer churn was approximately 3% billings.
Billings growth was sequential what's strong sequentially at 23%.
I thought I had mentioned earlier at a core component of the software and services group as far as.
Spark suite combines Blackberry unify endpoint management, the yen and unify endpoint security you, yes, we combined the two products in one single pane of glass.
This box, we will launch at the end of our first fiscal quarter and since then customer interest has been strong and demand is growing in a quarter or a number of high profile customer purchases, our smart suite, including the United States Air Force, which upgraded over 19000 used.
Is from New York Amtrust blocks read out a way to us, including UK Ministry of defense, the Royal Canadian Mint Banco de Mexico.
<unk>, New Zealand Ministry of Foreign Affairs, Foreign Affairs, and trade sorry, you use either administrative entrees, a roast Royce lifespan Society Generale and disability. He just just to name a few of them given.
Given this early success in upgrading customer to us Fox suite, we are optimistic about being able to secure a significant number of further updates from the rest of our installed base.
In parallel we're also aggressively targeting new logos and more on that later also.
Blackberry continues to have the trust of goldman's around the world during the quarter Oh, you Young suite was added to the department of Defense Information Network approved product list. They know they caught it as a P.L. Blackberry.
Blackberry is the only you yen vendor has achieved these love this level approval today.
This achievement is based on the completion of cyber security and interoperability certifications.
This approval this will provide us better assets and a more streamlined that people process.
This should naturally lead to a greater revenue opportunity going forward.
The latest release of you. He has also recently achieved the very important and I have a credit certification accreditation.
We have recognized a strong industry wide demand for manish detect and respond surfaces and known that's MDR cross and solid.
Cross in solitary recently estimated MDR market you have a cagar.
A compounded annual growth rate on existing percent and for annual revenue to reach about 2 billion.
By about 2024 our M.
Our MDR offering we caught off guard well.
Wow relatively new continues to perform well to take advantage of this opportunity we plan to greatly enhance our channel programs certified partners will be able to deliver a managed service and threatened hunting on the AI driven cyber security solution.
Greatly increasing our scale this way.
This would differentiate us against our major competitors, who prefer to provide water services themselves.
Moving onto Bts, a as you know much of the Bts business really is relying on the strength or the auto industry. The largest piece of the Bts business is QNX. We have recently seen some recovery into production volumes on the very low level during our first fiscal quarter. This.
Make such awesome needs makes us optimistic that the Bts business, we show sequential revenue improvement and could be close to normal early next fiscal year.
Despite.
Auto production volumes being down and moderate QNX continued to win new designs and develops significant partnerships in the quarter. We have 19, new designs win five in auto and 14 in a generally embedded market we called the gem.
Alongside infotainment, the new auto wins in the quarter include design for digital cockpit.
Instrument cluster and domain controller, which all typically has a higher yet fees.
Average selling price.
The new Gen wins include designed for next generation Blood Analyzer next generation factory Robotics, and also we Schneider electric boy solar solution Gateway.
Furthermore, we are pleased to announce that together with the Se is say SB automotive we have developed the autonomous driving domain controller well expand.
X. fun, Moto, new well mizumoto numbers in both photos new P. Seven it's a high performance electric vehicle.
Expire some of you may know that it has recently be listed successfully on the New York Stock Exchange is one of Chinas, leading electric vehicle manufacturers.
[noise] QNX will also be used by stride mission and industry leader in AI based camera perception technology in a number of the next generation eight daus.
That's advanced driver assist and audit autonomous vehicle system from South Korea automakers.
[noise] QNX remains in a very strong position for the medium and long term. Despite this short term macro challenges.
Moving onto AD hoc how critical event management platform that helps protect people and key business is up and running this.
This market is large and growing and our technology is already well proven in the federal government sector. We.
We see significant growth opportunities within both federal and state government as well as Indiana buys new wins in the quarter, including the New York Stock Exchange the office of the director of National Intelligence.
And the Edmonton Police services.
During the quarter, we were awarded a new authority to operate all 18 show for the US Department of.
Transportation, bringing the total to 14 for the back very AD hoc that Ram cloud.
There was this was also a strong quarter for high security sub specie, Sweet voice and messaging offerings, where.
Well, we both strengthen our position in the United States and extended our leadership position in Germany.
Major wins in the quarter, including United States Department of Homeland Security.
The U.S. a internal revenue services in the United States Federal Emergency Management Agency FEMA. These contracts with pepper the publicly awarded through our partner khaki CAC I.
Second we also we see to a government of Canadian Canada Security certification clearing the way for us to provide this technology to the Canadian government at large.
Including Canada, Blackberry Secchi Sweet Cecchi Smart technology is now used by 17 governments around the world.
We have spoken about our focus on go to market for some quarters now so go to market as many components and has taken time to get all of them all optimized.
Bringing in some new talent, it's just part of the process and.
And we did that successfully along with making sure mindsets and incentives aligned to our growth plans equally is important. We have also we ran our customer success and marketing programs as well as our partnership and channel programs.
A good example of progress where it may not lie I like to say one in the channel program side.
As you all recall you know device days, making a hardware we have strong relationship with telcos and they are becoming increasingly interesting interested now you know you you, yes, and AD hoc products, we recently announced a partnership with talus, who we sell a secure to secure AD hoc critical event.
Richmond solution across Canada. This.
This partnership as previously announced partnership with Bell and Vodafone.
So things are coming together nicely across all the component of our go to market. We are now seeing results and.
And an increase in both business pipeline and and new business pipeline conversion rates.
Moving onto the licensing another's revenue for the quarter was $108 million as I mentioned earlier the majority of licensing revenue comes from IP licensing business. So.
So with that let me turn the call would receive to provide more detail about our financial performance.
Thank you John.
My comments on our financial performance for the fiscal quarter will be a non-GAAP terms unless otherwise noted.
And also please refer to the supplemental table in the press release for the GAAP and non-GAAP details.
We delivered second quarter non-GAAP total company revenue of $266 million and GAAP total company revenue of 259 million.
Second quarter total company gross margin was 78%.
Versus the 75% reported in that.
Second quarter of fiscal 2020.
The increase is primarily due to the strong performance of our licensing business this quarter as expected.
Our non-GAAP gross margin include software deferred revenue acquired but not recognized of $7 million and excludes stock compensation expense of 1 million.
Second quarter operating expenses were 144 million.
Continue to invest in our go to market strategy as John described and and while at the same time keeping control over operating expenses given the level of uncertainty in the macro environment.
In addition, our non-GAAP operating expenses exclude 32 million and amortization of acquired intangibles 8 million and stock compensation expense 3 million for software deferred commissions and expenses acquired.
1 million in restructuring costs and.
And 18 million charge related to the fair value adjustment on the convertible debenture.
And 21 million impairment of long lived assets related entirely to real estate and given the recent experience in working from home, we identified efficiencies and how much office space, we need going forward.
Second quarter non-GAAP operating income was $63 million.
Second quarter non-GAAP net income.
Was 62 million.
Non-GAAP earnings per share was 11 cents in the quarter and our adjusted EBITDA was 81 million this quarter, excluding the non-GAAP adjustments previously mentioned this equates to an adjusted EBITDA margin of 30%.
I will now provide a breakdown of our revenue in the quarter.
Software and services revenue was 158 million.
Software product revenue remained in the range of 80% to 85% of the total with price.
With professional services comprising the balance.
The proportion of software product revenue that was recurring remained approximately 90%.
And licensing revenue was 108 million.
Now moving to our balance sheet and cash flow performance total cash cash equivalents and investments were $977 million at August 31, two.
2020, which was an increase of $22 million from May 31, 2020.
Our net cash position was 362 million at the end of the quarter.
Second quarter free cash flow before considering the impact of acquisition and integration expenses restructuring costs and legal proceedings was 29 million in cash.
And cash generated from operations was 31 million and capital expenditures were 2 million.
That concludes my comments and I'll now turn the call back to John for additional comments.
Thank you Steve.
After the end of the quarter Blackberry completed the early redemption of the existing $605 million of convertible debenture and issue a new debenture with 365 million.
This represents a $240 million reduction.
In debt.
And interest expense savings of approximately 16 million on an annualized basis.
The terms of the new convertible debenture are competitive with the available terms for the market. It all.
Offering as a time to refinance was announced.
The board undertook a lengthy process to consider a range of refinancing options and sought independent financial and legal advice.
The level of potential dilution before and after the refinance you five cents, probably sorry, and after the REO financing is essentially the same.
The new three years convertible debentures gives the company additional liquidity during this and surgeon pandemic period and flexibility to continue to invest in the business and strategy should suitable opportunity present themselves.
We anticipate being free cash flow positive for the fiscal year.
As seen imperious quarter, we're not providing a detailed financial outlook for fiscal 2020 2021 due to the ongoing uncertainty from over 19. However, we.
We can provide a falling directionally statements.
We continue to expect total company revenue for the year to be around 950 million as we indicated last quarter.
Given the strong performance of the licensing business. This quarter, we expect licensing revenue to finish the fiscal year modestly above the 250, Mark that we had forecasted that we mentioned in the last earnings call for <unk>.
For software and services, excluding Dts, we expect a slight revenue growth in the second half second fiscal half versus the first fiscal out for Bts, we expect revenue to sequentially improve during the second half of the fiscal year and to return to its normal run rate where the early next fiscal year.
I also like to take this opportunity to highlight two product development items, which we feel very excited about we expect by the end of the year, our unify endpoint security the U.S. suite will be available as you you and nonstick.
Yes, it's a combination of the best of Blackberry security.
Including mobile threat defense is secure web gateway and the silence inkjet next generation AI and machine learning.
We believe that this will greatly expand our addressable markets because new local customer will be able to benefit from the high level of security that Blackberry you, yes delivers without having to replace the yen platform.
I will now critical event management platform, which is a second.
Product related announcement I like to highlight.
The product AD hoc. We also made great progress, we recently announced the release of our Blackberry AD hoc public Safety addition, and Blackberry AD hoc E U cloud these.
These developments will further strengthen our ability to compete with a major competitor in the space.
This quarter has shown that despite the challenges of Cobra 19, the company has been able to deliver a strong sequential billings and revenue growth and profitability.
Further the company continues to strengthen all the element others go to market building strong partnership and positioning ourselves for the long term we would.
We remain confident that our technology is strong the product we compete in a large and growing and we are excited about our execution.
I would like to now open for Q and eight operator can I have your system piece.
And we will now begin the question and answer session cost. Good question you May Press Star one on your telephone keypad, if you're using a speaker phone. Please make sure that your mute function is turned off to allow your signal to reach our equipment again press star one to ask your questions.
Pause for just a moment to allow everyone an opportunity to signal for questions. We were.
We request that you limit yourself to one question and one follow up.
And our first question for today will come from Daniel Bardas with Bank of America.
I had please your line is open.
Good morning, Dan Hey.
Hey, good morning, guys. Thanks for taking the question first.
First you know impressive outperformance on the license in line. This quarter. Just wondering if you could just remind us what the recurring base. We should think about there going forward and you know this is a strategy still striving for recurring new deals versus one time deals yes.
Yes, yes.
Yes, so the strategy is absolutely driving recurring.
Deal.
Over one time deal.
We estimated roughly the combination of that with a healthy portion of recurring can be roughly about 50 million a quarter. That's we normally gunning for in and and given take we were looking for 250 million a year and licensing revenue.
We don't always get to it.
The difficulty is that we do always got to get all the all the revenue come in as recurring so that the Q2 for example, but do unfortunately, it's a onetime deal, but he will recur a number of years down the road. So it's not it's not a forever one only one time forever, but he has recurring but.
It's not an annual recurring that the way you think about it probably come back three years from now or something like that so it's all different depending on the customer.
Got you that's that's really helpful and then from.
For my follow up I, just want to understand the dynamics of the.
The R.R. it looks like it's down a little bit quarter over quarter versus the business improving quarter over quarter. So just on the RPD can you kind of help me think about which pieces of that maybe grew quarter over quarter, and maybe where the pressures coming from on they are in twoq. Thank you yeah, we have laws.
Some of the business base due to the kind of the small medium enterprise.
On the call with 19, they either delayed or they have gone on the lower cost solution.
We typically see us pretty solid in the bigger picture company Big organization.
Thank you.
Sure I would also add that Q QNX was also contributed to the.
You know to the decline in that metric. That's that's a good point, yes. Good access also contributed to the decline yes, that's a good point.
Our next question comes from the line of Mike Walkley with Canaccord go ahead. Please your line is open.
Hi, Thanks for taking my job.
Hi, gentlemen, thanks for taking my question sure just to just following up on that when you talk about the second half software services revenue recovering versus the first half can you maybe rank order for us the biggest contributors to the recovery of that QNX without us restarting or maybe some other businesses that you're seeing growth also.
Yeah. So we are actually you know.
I guess cautiously bullish that's.
That's probably a better word.
And pretty much.
Pretty much all line of our business is of course, the IP, we will not have the same repeat you know, but but IP is exactly what we think is going to be so.
On QNX. The continued design wins that we can now see the activities in that develop let's see.
That will hopefully bring us more professional services opportunity and then as well as some of the the return on their production will give us that uptick in royalty I think it's going to be modestly increasing I mean, it will be a number up kewpie number will be a little better than Q2, and Q4 will be.
A little bit in Q3 and then.
And then we'll start going back to a normal state.
And and you know you probably say go into trouble asking me, whether or not we'll say is probably around a 50 million dollar quarter type.
What early next year fiscal year.
So those are that's one one part of the component I, we see a lot of demand on cecchi sweet.
The work from home, it's actually also driven a higher demand and sensitivity about secure messaging technology as well as secure voice technology, we're seeing quite a bit of demand out there in the lots of pipeline, we feel good about execution on the spar side.
Tom and team is doing very well and I mentioned in my script that we're seeing good demand from customer who upgrade from our you yeah.
Very interested in that and all suites are quite elaborate because we have six different pillars and you could go from one to six and so.
Yet even if you come in at one they give us good upsell opportunities down the road. So did the customer engagements are very good customer success teams are doing well. So and then of course add hall is now quite topical in it.
In a market also so you know without getting way overly bullish I mean, I'm still cautious about people.
A little cautious regarding regarding spending capital and all that.
Multiple sectors.
We have shown some of those cautiousness, but overall and our pipeline growing growing nicely our engagement it seems to be going quite nicely. We're all getting used to now you know.
Sally remote so sweet.
So.
Knock on wood things seem so.
Seems coming together.
Okay. Thanks, that's helpful and just a follow up question. Since you you mentioned AD hoc can you just update us and you know, it's very strong position with federal government. How do you argue that platform transitioning more into the enterprise you have to go to market there and how do you see that transitioning to compete better in that segment because that can be quite a large opportunity also.
Yes, yes, very much so so.
So we have traditionally been very strong and the federal government is.
It, particularly in the United States and then of course lately. We have got we added Canada I think that this is an opportunity you guys scalable in in all the other countries around the world, especially to the G. Seven and you and and so forth. You also have very strong opportunities regarding because.
Data privacy law and the alert system that they will need then and lifecycle system really you know we're falling home also give us some.
Some kind of demand generations. So we.
We just need to get the team together to go after it is all these opportunities it's not a lack of opportunities out there. So.
So and then eventually we'll get to enterprise Psi Oh, we do have a plan to do that but right now as we speak today. We are we have that we have two teams focusing on.
Government.
In addition to U.S. government and Canadian government.
And hope to replicate the same level as the Psas.
Great. Thank you.
Yeah.
Oh I forgot to mention state government. That's also a very big stake of them in at a little bit more price sensitive, but but is still a big opportunity out there big especially when people are now knowing that their pandemic situation Oh, we got the right again, you got to get ready for any time soon.
Events out there good or bad for that matter.
Yes, it makes sense. Thank you.
Sure.
And again as a reminder, if you would like to ask a question. Please press star followed by the number one on your Touchtone telephone.
Our next question comes from the line of trip Chowdhry with Global Equities Research go ahead. Please your line is open.
Hi, chip. Thank you. Thank you. Thank you very solid quarter.
Thank you analytics confusion.
I have two very quick questions. The first is still solid been X bank.
Uh-huh and update it.
It is now Oh, very essential part of any modern vehicles.
The QNX or like maybe providing a X being bad Oh, what they update features.
I don't know I don't know Thats specific Oh, I know I know, we work about honors on the cockpit platform.
You know QNX has a very good OTI, a and one that you know a couple of chip manufacturers using so, but it's actually related to a X spine.
I don't I don't know that specific answer we could find out the answer for you.
But but.
But I don't have that data nobody nobody.
The second one is regarding Apple this also had solid wins.
I was wondering if you can highlight one or two technologies that makes I talk battling that you'll complicate the average.
Right. Thank you.
I I think hold true to our.
Oh, a value add and heritage you know add Hawk. The reason why we're successful in the federal government because of the level of security certifications.
And also we are pretty sure that the at home messaging system, although slightly more expensive than others.
Are the most secure messaging system I see that dead. The dead people cannot change messages or have hacked into the messaging system change they change, what's being sent out and safety return messages and and and so.
So.
It's a two way communication, obviously, so that everything.
The advantage that AD hoc provide it's absolutely into security and privacy side.
Beautiful excellent. Thank you very much and all the best Thanks. Thank you a trip.
Our next question comes from the line of Daniel Chan with TD Securities Go ahead. Please one is open I didn't.
Hi, Daniel.
<unk>.
It sounds like your your sales channel efforts are starting to bear fruit, where do you think you are in building out a that sales channel and what else is there left to do.
Uh huh.
I feel pretty good I mean, [laughter] to glasscock that so so.
As you know that I've been working on this for the last couple of years, So I and I had a couple of whole start and.
And and but but this time around as I pointed out it's a very.
You'd elaborate multi.
You know multi air disciplinary ears.
Collaborations and it has to come together in order to work well, it's not just about adding more people on the street you know as I said earlier, the incentive plans and.
Andy assigned territorial assignments and then it goes into the partner in the channel isn't it everything that you know the marketing at everything that comes together I feel I feel very good about where we are we should see eco.
Equal or better than than market growth rate next year.
You know assuming things into March in the macro market doesn't deteriorate at from where it is today, we see our pipeline growing.
The people are are yeah, more engaging in a in a in a in a how should I say to in the script is way me, maybe that's a way to say it you'll do the training you came through so.
Few pretty good about that and we have some really strong plans.
Even insider sales force you know regarding how we look at renewal with this new logo and it's all factored all of that so I would say that now we just need to see the work you as some results.
Okay. That's helpful. Thanks, Don and.
And then I wanted to switch gears, a little bit to silence its been almost a year since you've launched the DDR solution that was supposed to close the gap with some of your competitors. So just want to get an update from you to see how that DDR solution is going and if there's anything else that needs to be done to make that successful yeah. The biggest.
Yes, thanks, though so the silence misys laws is brought a flattish.
And again, you know EPA were the top leader all E.D.R., we caught up with the with the competition are there's one pieces missing that.
That will will kick into a growth gere wishes to cloud based.
They are the how enablement of the optics optics product, which is the E. D are brought up.
That will come through I did towards the end of this calendar year or beginning of next calendar year, we already we got the social priming to sell it.
And so so that will also be an element that will help the MD outside the managed services side also so that's the only thing that's missing right now everything else that caught up.
Great. Thank you.
Sure.
Our next question comes from the line of Paul Treiber with RBC Capital markets. Go ahead. Please your line is open hey.
Hey.
Hey, John Hi.
Hi.
High level questions. One just following on the last question when you look at the peers in this space specifically, you, we m. and cyber security now with co, but they are seeing an acceleration in material acceleration in growth.
In comparison and it seems that Blackberry is not seeing that that same magnitude of growth acceleration and so what in your view is the reason why Blackberry isn't seeing at your material growth acceleration in uranium and cyber security it at the moment.
Well, we've seen some good growth in the EU, yeah, mostly come from the installed base.
And and you know to kill people buying more seats.
We did see that that activity now we're focusing on upgrading them to you, yes, so that they could use the site and its technology and that you could you know the gateway technology and it maybe is the is the reason about where we are in the sales motion a as I said, we feel good about the receptivity we feel good about the win.
Which I I neighbor feels so maybe there's a little bit of time lag and as we fix up all engine.
And then a product releases or the U.S. and and all that so, but but we don't see any problem with the U.M. side.
People buying more seats, but.
The newer local is harder to come by but the existing installed base. The growth. So quite quite you know quite reasonable I would say.
And so I take it as as implying that you expect to hold market share in both those markets in that in the medium term.
Yeah, we were holding our market share.
And we have.
A plan a reasonable good plan to go after new logos, you know the big with the U.S. platform.
One of the way to Holden you know to do that.
Is to make the you you are you yet you yeah, Matt not state and.
And but on the UI and site, we're going to push more on the cloud based implementation and so so we have we have a little brand of both you know when one from the installed base and one for the new logo.
And just my last question and it sort of dovetails impact, but longer term like it looks like you're making a more permanent shift to work from home with the real estate changes that you've done it and like do you think that there's a permanent shift for all companies to work from home or do you see it as temporary and if there is a permanent shift to work from home how are you.
Justin blackberries longer term strategy to really drive Dyer address it and is that is cloud much more important in their work from home environment.
Yeah, Karl and mobility.
A euro and mobility is kind of you know where our strength has always been.
So we think well while the physical answer your first question on Mack Cali.
Personally I believe a if everybody work from home forever. It will it will hurt productivity it will hurt innovations.
But I think there will be a hybrid model at being developed and most of the people. There are a lot of Ah varied.
You know well known CEO and I think that was a wall Street Journal article yesterday or earlier. This week, you know interviewing them and most of them has said that they probably want the Ida everybody go back to work Oh or a hybrid of sorts and so I just.
Trend well something that we could benefit from we could benefit from because I think whether you're working from home or you are dude.
Doing you know at the office all remotely you will deal with mobility at and so secure mobility and why mobility.
Endpoint security, Oh, definitely something that we don't need to change our product road map or or adjusted or what are we doing messaging. So are you Ben event management, and all you, yeah animal or or the U.S. side of equation that I, you know I'll I'll I'll platform. So just fine for Ida.
The usage I think I think it's again you know I look at this thing as mobile computing and.
And and securing that mobile computing.
In in EPS, many facet as possibly can to help activity to help you know assuring data privacy and all that it is something that we do and we do a bad so.
There will be there will be a good space was.
Okay. Thank you.
Sure.
Now I'd like to turn the call back over to John Chen Executive Chair and CEO of Blackberry for closing remarks, okay well. Thank you. So the only thing I have is I like to remind everybody that we have our Blackberry annual security summit.
This was a seven oh.
On October 5th 270.
This virtual event will feature live and on demand session, including keynote address.
Blackberry executive product down most case study, we have exciting outsized speaker line up also including a high level U.S. government official who we speak about cyber security legislative developments and that distinguish industry analysts from Gartner, we would talk about the market more in detail Monty.
Tells the speakers any event can be found on our website that very dotcom Slash security summit, one where a security somebody is one word this event will demonstrate why Blackberry, so important and critical and today's cyber security landscape. We hope to see many of you. There. Thank you very much for joining us for the call today and.
Have a great day.
This concludes.
Today's call you may now disconnect.
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