Q3 2021 BlackBerry Ltd Earnings Call
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Ladies and gentlemen, todays conference is scheduled to begin shortly please continue to stand by thank you for your patience.
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Oh Oh.
And the games and I will be your conference moderator for today's call.
During the presentation, all participants will be on a listen only mode.
We will be facilitating a brief question answer session warranty and that the conference.
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I would now like to turn todays call on what the template Blackberry Investor Relations. Please go ahead.
Thank you David Good afternoon, and welcome to Blackberrys third quarter fiscal 22000 people on Earth.
Income from school.
With me on the call today are executive Chairman and Chief Executive Officer, John Chen.
Chief Financial Officer, Steve right.
Also agreed on a cautionary note regarding forward looking statements John will provide a base and sounds like you Steve will review the financial results.
They like from a cold for a brief Q and a session.
This call and the payable to the general public arc home and numbers and gone and what's cost and even faster information section of flow.
Pretty don't call the.
The replay will also be available on the Blackberry Dot com website.
No accident on press release earlier this often day starts will be shy and during todays likes what costs.
These slides for like the recent Blackberry I'd announcements.
And I used to be and also on them, but calls joining by the cold and numbers. The slides are available for you to access on the Investor information section from pretty topical.
And what the statements, we'll be making today constitute forward looking statements and are made pursuant to the safe Harbor provision for flexible U.S. and Canadian Securities laws.
Moving to indicate forward looking statements by using words, such as expenses will should model in tight and lean and similar forward.
Forward looking statements are based on estimates and assumptions made by the company and lots of his experience and its perception of historical trends current conditions and expected future developments. This winter and other factors took a complete bleeds and relevant.
Moving factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward looking statements. These factors include the risk factors discussed in the company's on new fundings and Mdna, including the case at 19 and Delek.
You should not place undue reliance on the company's forward looking statements. The company has no intention undertakes no obligation to update or revise any forward looking statements expenses required by law on.
As is customary joining the call John and Steve will reference non-GAAP numbers in a summary of our quarterly results.
For a reconciliation between our GAAP and non-GAAP numbers. Please see the earnings press release and supplement published earlier today, which are available on Edgar and SEDAR and Blackberry Telecom website and.
With us and turn the call price to John Thank.
Thank you Ken.
Good afternoon everybody.
Today, I'd like to keep the financial and business updates relatively brief because I like to spend a little bit more time discussing our recent Blackberry Ivy announcement.
This third fiscal quarter, we continued to build on the momentum from our.
Second quarter delivering results in line with our outlook we provided.
We delivered sequential revenue growth both in the total software and services area.
Section and as well as the Bts we.
We continue to deliver positive EPS and positive free cash flow this quarter.
Thanks, Larry and reported total revenue income.
On the revenue of 224 million.
Software and services revenue came in at 168 million and 168 license was 56 million gross margin was 70% earnings per share was positive two cents cash generated from operations was 29 million total ending cash and investment and November thirtyth.
Was $757 million.
I'll start by this my business commentary with the software and services group.
Hey, ARLP was approximately 475 million.
On the base net retention rate was 90% net customer churn reduced to around 1%.
Spark is the combination of <unk> as a reminder, is a combination of value yen and you, yes that unify endpoint security offerings. This quarter. We made good progress in both the government and financial services verticals with customer wins, including US Army you as opposed to service the IRS.
The department of Energy and Department of Justice as well as Raymond James final.
Hi, Nice shows maybe just on actual site Citibank, the German Windus Bank, the bank of India, and the government a reminder in.
In addition, we have and customer wins, and other verticals, including healthcare and manufacturing.
Similarly, we.
We continue to see progress and upgrading Blackberry you young customer to the food Spark Street.
Are you, adding on how you yet Sweet example, in the quarter, including Deutsche Bank Deutsche Boerse on virtual Warren and multiple ministry of the Dutch government.
Significantly during the quarter, we release Blackberry cyber suites.
Our AI powered side, this week, which combined with our industry, leading EVP IAR and MDR product.
Is further strengthened by the continuous authentication and the mobile threat defense capabilities. This obviously is highly competitive against both traditional and the nexgen player in the cyber security and market.
This has been validated by 451 research and other industry experts.
Cyber suite brings together the best of Blackberry and silence technology.
Further cypress, we will be available inversion day integrate with all major you yemm offerings, including Microsoft in June.
We and whereas workspace one mode.
Mobileye and as far as Ivy and massively 60.
These integration will allow back very doable by additional security two uses of our rivals.
Yeah.
And this week, it's only be and the market for a month, but early interest and strong both in the new logo and existing customer base with significant pipeline growth this past quarter.
Cibers fees, obviously allows us to give our prospect and customer greater options for increasing their cyber security, while protecting their euafme investment.
And so we sell these technology enhancement and positive customer receptivity, we will in turn step on our investment in sales and marketing to compete more aggressively.
Before I move to VTS I'd like to highlight the security sales indications we have achieved.
This quarter Blackberry, you yet achieved the National Security agency and essay commercial.
Commercial solutions for classified program approval.
This AD share portfolio U.S. government. So patients we have receipt flow back very value yam, including the NIAP certification. The department of Defense Information network approval product list, which I think we talk about last quarter.
On call I, and Bash, Hcl, and all that Cheyenne El fees.
And ran from.
Just 140 twos 140 day shoot.
No other software vendors and the cyber security space has been awarded Multitiered Security service station by the Us government Denbury.
February of shipping and its a certification comes at a time and most of our major competitors have been identify having on the booties set up being exploited by next year by nation State access this should give our customer and prospect a higher degree of comfort about the cyber security protection They received from Blackberry.
Now moving on to Bts, QNX and largest simple and the Bts reported sequential revenue growth here on an ex remain on track to be back to its normal run rate by early next fiscal year.
In the quarter, we have 17, new designs one seven.
Our design wins, sorry, facing auto and 11 and generally embedded market.
Our expansion into gem continues which were diverse wins, including a controller system for power turbine.
And next generation sale on receiver system, and a rail traffic management system on the sole source and non subway.
In auto we have design wins and full kinetic causing electric vehicle.
The wins included instrument instrument clusters, and couple of them and domain controller, a handful of that and aid us design.
The advanced fibrosis side events or others. So.
Speaking on the electric vehicles, we are very pleased to share with you our strong position in the market.
QNX now had design wins with 19 of the top 25 electric vehicle Oems, which together had 61% of the market in the first half of this calendar year.
We are working hard to recruit the remaining six.
Moving on to secure communication, which includes AD hoc and secondly, smart.
Secure communication had a strong quarter.
This strength was primarily due to ongoing transition to remote working we had cash which has been obviously gravy and accelerated by debt and data.
And how has some strategic wins this quarter, including the California Department and correction and we have the limitation.
A rehab and.
And finally collection and rehab.
As well as the California Department of Justice.
I believe that no one now can claim topology and tie to stay on California.
Other notable renewals and upsells on that and all in the quarter, including the United States Army Navy as well as the Air Force.
As well as the Federal Aviation Administration every day, we also renewals and the U.S. Defense Intelligence Agency Us departmental car on the energy Treasury and agricultural as well as the FINMA Federal emergency management as each agency.
Finally, I want to touch on licensing revenue for the quarter. We came in at 56 million EPS before the majority of the licensing revenue comes from our IP licensing business.
As I mentioned at the beginning of the call I'd like to spend some time discussing Barry I Ivy, which we are very excited about.
Hi, Good morning cars continue generating huge amount of data I think you all agree and no.
The auto industry is not prepare to capture and create value from the analytics because these stator, it's difficult to call ecolab and interact with with our very costly integrations.
Blackberry on lease mission is to make it easy to gather securely transport and analyze these stator in a standard and a cost efficient way across multiple brands and models on a common platform.
This will allow the developers' ecosystem to use the data to provide intelligent insights and.
And application on a global scale.
We have entered a enter into a multi year exclusive co development and co marketing agreement with VW assets.
This type of agreement, it's where.
February and eight Ws engineer has been working very closely to jointly build the platform.
Under the terms of our agreement Blackberry, and we will Blackberry will own all the commercial relationships with customers and we share revenues were eight everywhere.
Each side contributors the key capabilities required.
On the back very side very very QNX brings over 20 years of auto industry experience as well as relationship as well as a huge footprint of over 175 million cars.
We are a trusted leader with a deep knowledge of automotive safety and security software system.
Eight and Bill as is the world's largest cloud provider with a vast developer community and outstanding expertise and consumer experience interfaces as well as aiotv.
Combined we're able to provide a full end to end platform.
We expect and ecosystem on apps and services developed on the Blackberry IP platform over time, we will work available as a proven.
Proven due to a successful developer communities to help drive the process.
With Blackberry Ivy, we are creating a recurring revenue data on business.
Recurring revenue model had is targeting revenue on a usage as well as a subscription base.
And important different strategic Blackberry Ivy and competitors in this space is that we allow the OEM to on the data.
And with that the relationship with their customers.
We already and discussion with some automakers, who will granted early assets and we have received positive initial feedback.
The target is to be in the 2023 auto models on 2023 years model.
And with possibly potentially some professional services prior to it.
While it is too early for us to provide a revenue outlook. We are confident that Blackberry IP addresses a very large market opportunity they will greatly increase our EPS speed.
With that let me turn the call with his fees to provide more details of our financial performance.
Thank you John.
My comments on our financial performance for the first.
Sorry for the fiscal quarter will be and non-GAAP terms unless otherwise noted please refer to the supplemental table and the press release for the GAAP and non-GAAP details.
We delivered third quarter non-GAAP total company revenue of $224 million.
And GAAP total company revenue of $218 million.
Third quarter total company gross margin was 70%.
Our non-GAAP gross margin include software and deferred revenue acquired but not recognized of $6 million and excludes stock compensation expense of $1 million.
Third quarter operating expenses were 142 million.
Our our non-GAAP operating expenses exclude $32 million and amortization of acquired intangibles and $11 million and stock compensation expense 4 million for software deferred commissions expense acquired and.
$95 million fair value adjustment on the convertible debentures, which is a noncash accounting adjustment driven by market conditions.
Third quarter non-GAAP operating income was $14 million and third quarter non-GAAP net income was 11 million.
Non-GAAP earnings per share was two cents and the quarter.
Our adjusted EBITDA was 31 million this quarter, excluding the non-GAAP adjustments previously mentioned.
And I will now provide a breakdown of our revenue in the quarter.
Software and services revenue was 168 million.
Software product revenue remained in the and the range of 80% to 85% of the total with professional services comprising the balance.
The proportion of software product revenue that is recurring was approximately 83% due to product mix.
The decrease and they are this quarter similar to the prior quarter is primarily due to bts.
We include QNX royalties and our our our metric to give a total company if you will.
And we expect to see the impact of coated.
On our normalized early next fiscal year as we return to our normal revenue run rate debt.
Licensing and other revenue was $56 million.
Now moving to our balance sheet and cash flow performance.
Total cash cash equivalents and investments were $757 million at November Thirtyth 2020.
A decrease of $220 million during the quarter.
This is mainly due to the early redemption of the $605 million of convertible debentures.
And issuance of $365 million from new convertible debentures on September Onest.
And this represented a $240 million reduction and debt financing partial.
Partially offset by cash generated in the period.
Our our net cash position increased to $392 million at the end of the quarter.
And third quarter free cash flow was $27 million.
And cash generated from operations was 29 million on capital expenditures of 2 million.
That concludes my comments and ill now turn call back to John.
Thank you Steve on beef.
Before I provide our outlook for the remaining of the current fiscal year I'd like to highlight on low versus the partnership in addition to the Blackberry Ivy that we're very excited about.
This quarter, we partner with zone to provide a Blackberry secure version of zone, which is highly secure way to hold virtual meetings and this new work from anywhere environment. It provides increased protection from corporate data leakage as flow cyber threats.
In the quarter over rice and launch their business Internet secure offering which includes our very smart Avi anti virus product and Cisco umbrella security service. This new product is aimed at a rise in large number of small and medium sized business customer.
During the quarter, we announced the integration of AD hoc with both Microsoft team and service now and now platform.
And as most of you know is the market leader and collaboration software with over 115, one on 515 million daily active user.
And and now platform at 51% of the IP service management market.
This integration will further enhance and how its reach and ability of enterprise to protect assets.
I will now move on to our outlook. We continue to expect total company revenue for the year to be around $950 million as we indicated last quarter.
We expect licensing revenue will finish the fiscal year little stronger than period Ssli irrigated.
We expect revenue for Bts and continue to grow sequentially in the fourth quarter and as we talk about as to return to its normal run rate early next fiscal year.
This quarter, we continue to make good progress, we delivered solid financial as per our outlook.
We are developing exciting new business model the recurring revenue model for QNX as well as partnership which why aligned and we deliver industry leading products has per hour, we'll now.
With that I'd like to turn the call over to our operator to conduct the Q and a session fees David.
Yes, and we will now begin the question and answer session and ask a question on press star one on and telephone and.
Using and Speakerphone. Please make sure you on teams turned off from a volume signals from internal equipment.
And then press star one to ask and question.
We'll pause for just a moment to allow everyone and opportunity to signal for questions.
We request that you limit yourself to one question and one follow on.
Our first question today will be from Daniel Chan with TD Securities. Your line is open.
Hi, dancing with high on that.
Interesting my question and the I don't know if you guys mentioned it both from missed it did you provide.
Metric on the billings growth.
No. We did not we have issued and Mr., we haven't provided.
Okay.
And then on the air are declining Steve you talked about how it's declining because of Bts can you just remind us what your including their from Bts and why that's causing it to drop.
And the numbers the glass plant, but seizure.
So the.
We are a are ours and total company.
Net metric well from for software and services be the.
The QNX.
Part of it we include basically a trailing four quarters.
That feed into into that metrics on it. So there is a lag.
Effective.
So and cover the coated.
Impacted that we've been discussing consistently that that's got a lagged effect, making it back into into the metric as we move forward and recover.
Ben.
Next question comes from the line of Mike Walkley with Canaccord Genuity Your line zone.
Yes.
And might take and John Thanks for taking my questions and insurance wishes to every day on the call for the holiday season and to stay healthy.
Yes, future due to that thank you.
Just a question for me just to building on I'd lots and lots of interest and excitement around it.
I know you're not sizing it yet because its early days John but.
And as you've shared longer term, but getting to kind of ASP fees into the high teens and $20 per car you. How does this help close the gap if things go really well how do you see ASP per per car developing over time.
And as I said, we don't really have all our cash.
And of the revenue.
Laid out yet because the earliest we will get the revenue I believe is the.
Model year 2023.
So.
We do expect is to.
How close the gap in a very small increase ASP at a very big way.
It has to do a lot to do with non lead a base.
Platform to collect sensor daters and.
And analyzed it over the edge and in the cloud and OEM.
OEM could Dan and take advantage of all these sensor daters.
And the combination of those candidates are still to make certain decision.
Decisions and.
And why the Ida real time on the long term, but he also depending a lot on how many application could we spin up.
So.
And the OEM is going to build the application to tier one will do the application using our platform and and so other third parties. So if they are more applications and obviously they are more instances.
That could increase our speed per vehicle.
So.
We're very hopeful that this not only have a recurring.
Service by this also bring us.
A good chunk of revenue going forward.
Okay and John just my follow up question kind of longer term also with with Blackberry you guys have launched several new day.
Different software security modules as you look at your sales force what does a feeding back to you and turns their ability to land and expand on customer.
Customers and what are the leading with and whether it's from the upsell opportunities that there that they're excited about it we with the new modules that you watch over the last several quarters.
Yes, so first off on the product side.
Our cyber security suite.
It's a very timely offering share.
On market.
Cause of all the tax and the Rahnavard is going on right now.
We.
Have been invited to more cases nowadays.
Because of the environment and and the attention switched to.
Cyber protection and other hacking that's going on out there.
So so for example, and knock on wood we.
We havent been.
And we Havent been successfully.
I guess intruded yet that's not to say this is not a challenge.
This is just to say its state sales the affair this point.
And so on a medium term where we.
Our sales force are very focused on upgrading.
Our OEM base, which accounts for.
Depending on who you listen to out of.
In terms of analysts industry analysts and somewhere between 9% to 12% on the market share. So.
Uhhuh on space.
So we are very busy upgrading that so there is seldom the EPS on top the yen.
And then it will very soon and.
Clearly, we're talking and months, we will release our.
[music].
Are you yet platform.
On to.
The competitors.
Uhhuh and which are into and mobile Lion air.
Airwatch.
And Ivy mastery 60 and.
Not all at the same time by the way sequentially.
While we are probably going to start with Microsoft Force.
So thats another aspect of it.
And and the fact that we're our.
So thats the part that part of the cyber security play.
So that should keep us busy for the next couple of years.
And give us a lot of opportunities going after the market.
Okay, and just one last question our capacity lines. It just on the EU, Yes, we are going to other new OEM platforms.
What is the feedback or interest level for that and if PTC is even able to offer those similar capabilities for the mobile market.
And there's the into service are reasonably high I mean, I don't have a.
Specific.
Quantitative answer to your question, but when I, when I speak to customers and make or groups of customers. At the same time are they all think dynamic sensitive give down and ability to protect occur and investment who have whatever ATM that they already invested in if you are happy and comfort.
But with.
Your pros and cons on each of the vendors about this day, Chris and USIS, Blackberry Security, which we believe is the best.
And is the best that a bunch in terms of technology and I laid out on all the certification we got from governments and so obviously, we have the best technology and and protection in cyber protection, So that give them the best simple world without having to.
Recalled and investment which of course there is no.
Net.
No big hurry to do that even if they wanted to do and in the long term. So that this this this how to add value to what they have and.
Keep the investment so so everybody is happy about.
And he said that choice to look at.
And it.
Total debt sources for that for the year and taking my questions.
Just came from.
Your next question comes from the line per.
Chowdhry with global equities recent new lines on Hydro Heidrick Hello, Hello. John. This is this quarter was phenomenal both from an execution point of view and from partnership point off your two strongest companies Amazon EBITDA Lewis and zone.
My question is more on the book.
I'd product on.
And then do you think that developers can get a high and all flow three and from volume so that the excitement and the developer community is very strong and I was hoping that they could start capitalizing the machination on your platform sometime and Twentytwenty. One do you think that the neuberger expect.
I mean good question. Thank you could you know.
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I know that we will have a beta version and be ready and third quarter and next year third quarter on quarter, sorry, I'll quarter third quarter.
It's a it's a September September day, we will have.
A developer version, we're hoping to have a developer version and before that so I would say these fees safe to say that about midyear next year the.
The application provider will be able to later hands on that.
Beautiful and upsell and terms all flow.
Some OEM easy OEM you didnt on NIM them, if possible can you name a few.
That you think you can keep an eye on as we move forward and see what kind of applications and hotel and basing your platform.
Well on.
I don't think day.
They will appreciate me naming them.
And I might and so.
And I would say does.
The initial groups of company that we have been in contact with and account and positive feedback. It is in a group of about 20 people 20 different Oems.
So youre.
Obviously that not all 20 will sign up but I will commit to the following day.
As we getting.
Customer sign up.
Now we will try to make.
Make a public announcement.
When when obviously the customer has to agree agree to it.
Both.
Our assets on an us very excited.
And.
As you know is very busy and making presentation and getting strong feedback today.
Good on fall from durations and on the best.
Thank you.
Your next question comes from the line of Paul treatment with RBC capital markets. Your line I thought I'd.
Hi, John Good evening and good evening.
And we'll follow on questions on the Amazon relationship on.
I know you're not giving details on revenue per could you speak to the and the details of the partnership itself in terms of moving the duration of the exclusivity period, and then maybe the magnitude of Amazon commitment for co development in co marketing and and ultimately that's on the agreement allow you to open it up from Amazon to other cloud providers.
At some point and future yes.
Yes, so we agreed.
Also on a number of years.
That.
We will be exclusive with.
Using Mike using the Amazon cloud.
And developing that product they will be exclusive with us they will not market or develop with and then any other party and with the same in the auto sector and in the same area, our data platform and analytical platform. So it's a very broad agreement.
It does allow us to open it up for other cloud.
But we probably won't do that until this particular one is done.
Non meaning the exclusive serious John is as we said the product out and presenting to the customer.
It's a co development and co marketing agreement exclusively on both automation.
On and as I pointed out.
Blackberry will hold a commercial relationship meaning that we will transact.
On the deal with day OEM on a tier one.
On the application provider will will lean on the help of VW adds to GAAP.
On the ecosystem up and going with us.
They have a lot of engineers and scientists.
If you will I will refer you to a number of keynote speaker at the Ada rule as reinvent conference it's public information.
On the starting with any Jessie the CEO.
And and how he described.
Our relationship with day Ws.
As well as.
They had on the IOTV when he made his keynote each facility expand.
On a bit on time on how that this particular this relationship. So you could see that they are very serious serious has not only comes on the cloud side, but it comes on the Iot T side also at Amazon.
All right. Thank you for those detailed very interesting secondly, and I'm just looking at the transition and work from home globally and in all the uptake.
Various cyber security and in others.
Other applications on.
And how do you how do you see Blackberry benefiting from that and and also or how high Blackberry benefited from that trend and and could you dovetail that.
Against the net revenue retention on the quarter.
What's been driving the net retention and so I think a little bit in the quarter versus its transition to work from home.
Yes.
So.
And the I really tell you that.
The Euafme license.
We're doing well.
Initially on the income in the Carbonite and shutdown because a lot of our customers.
Wanted to expand there are a number of licenses to to cover everybody to work from home and rubber moly.
You know most of our customers on larger institutional and in the banking industry as well as in the.
And the government so the volume so quite high.
At that time, and now gradually shifted to two other areas one and the secure voice technology area and say, we work removed from home both.
Both government and all the regulated industry sectors.
Seriously looking at the secure voice.
And then and then the emergency alert system and now I think its used to be that are reasonably focus by user of recently focus and the government space, but now the it's now expanded to.
Medium to larger enterprise, where they want to be able to reach share their employees and on the construction. So so we see very good pickup in those areas that that clearly is benefited from the.
Unfortunately, the pandemic situation, but the pandemic situation drove the.
Realization and all of secure communications is very important so there we see a lot.
And then of course debt.
EBITDA indirect effect on.
On cyber cyber Sweet, although you know, we just released a cyber three.
And.
Which we have been behind and DDR, but we believe we are caught up and we ran and non cash to show that.
So you should see some revenue start coming from from those area.
So those are kind of.
The area related to the work were from remote.
And then just reading between the lines. The one you didn't mention was on.
Legacy silence business. The so is that day should we take that kratos cyber straight sorry, sorry, sorry.
Sorry that was a net revenue retention and.
The fight drop there is that is that driven from that the order cyber.
The silence products.
Some churn there.
On that number it's the total company and number.
So it's not it's not just the so called the older site silex product.
Is it is a combination of our enterprise product.
Okay. Thanks for taking my question John.
Your next question comes from the line and Todd Coupland, we'll see I can see your line is open item.
Hi, Todd Hey, there John good evening.
I just wanted to ask you I just wanted to ask you about the Q4 outlook.
950, 950, so volume for the year search on an hour 20 million or so higher than where street is for the year. According to Factset.
And then you called out IP being higher so.
I'm wondering within that mix.
And we'll software and services.
Be up sequentially, yes.
Yes.
Okay.
And can you sort of clarify.
Yes, I always get a total lawyers.
And said that it is my expectation and the car model that it is up sequentially. Okay.
Okay and can you characterize sort of the puts and takes within that I know, there's a few pieces and the buckets. There just just debt.
Most outlooks for us on that.
Yeah, we believe secure communication will continue to do well.
It's a combination of AD hoc and sexy smart.
And we believe that you yam will be relatively flat.
Bts will have a sequential quarter.
And those are kind of the major major pieces.
Yes, okay and on.
You've talked in the past about sort of a cold bid slowing and new customers deciding and his year.
For me I guess enterprise decisions just broadly I know there were some other questions and office earlier, but as you are thinking about the next fiscal year.
Zero is there enough loosening now so.
Sort of.
Post the vaccine et cetera, where you can start to see some of those enterprise decisions loosen up can you just talk about your your thinking on that per that for the next year or so.
Yes.
Our assumption is day will they will lose lose and up and we are in the process of building out.
And new operating plan our LP for next year also our assumption that it will loosen up and get back to normal from the auto sector point of view, we already start seeing that.
So that we will start seeing it also on on the commercial side I am on reasonably sure.
Cyber security is like I said earlier, it's a topic that everybody want to talk about.
And so we have to kind of double down on that ourselves.
In terms of reaching the marketplace.
And we are along with a number of products and and channel programs, and which I'd and for the 30 in the interest of time I didn't put it in my script, but we have a very robust channel program that combined finance and and and Blackberry Channel program together. So so there are a few things.
So we are doing we believe will both cedar growth and be able to execute for the growth next year.
Okay.
And last question, it's I guess, it's now really stock specific.
Two certainly my thesis, but just curious.
I've seen a few major tech companies come out and say back to the office by September and work three days in the office you can still wanted from home and you have you decided how you're thinking about Blackberry from that perspective once once that opportunity is there.
No we have not decided so.
September of next year seems to be a little far away.
And.
Well, let me per se, we would've been talk is where wed be speak and at least and that are three times debt.
Debt before that.
So, but we're open oil we're open minded I.
And what applicator.
And the old fashion guide and the applicator that we should be together to build services together to build the team.
In person and that's that's just me.
But I also recognize the fact that there are some reality and and and there are there.
People, who would like to flexibility so solid EPS it doesn't lose productivity I'm willing to try and couple of things.
Okay.
I appreciate your comments, thanks, very much upsell. Thank you.
Your next question comes from the line Steven with Raymond James Your line is open.
Hi, Steve.
Good day and.
And John just a clarification first the 950 outlook, that's non non-GAAP revenue number correct.
Yes debt debt to non-GAAP revenue number, yes got it okay, and and you'd expect the bts to grow sequentially and you said enterprise software is right to grow a little bit sequentially in Q4.
Yes that that's why I said, okay, all right and John on on IB.
Do you see as a as a bit higher ARPU compared to some of the other modules or would you expect it to be in the same range.
All know internationally in terms of the ASV, yes.
So on them.
Hi.
I am hoping.
Okay.
And I'm, hoping is higher then okay.
On to be fair, let me let me.
Maybe reset garofolo volume, so you know that Alker and module, whether its hypervisor eightoz clusters.
Appears ipi ranges anywhere from the low single digit dollars too.
Literally.
High single digit or double low double digit dollars per module.
So and so so thats the range I would expect this to be more towards the higher end of that spectrum.
So when I when I said also noteworthy as I was thinking about it.
So so this compared to ipi this will be a lot more.
Right, Okay, and then and when you exclude batteries are mws.
Yes, I will have to have a revenue split with VW EPS correct. Okay got it okay. Thanks, a lot Jeff.
And I would like to turn the call back over to John Chang Executive Chair and CEO of Blackberry for closing remarks on thank you. Thank you David So thank you very much everybody attending today's call and I and I know they saw it this.
This is if we had to seeing now on the on your own early evening and most of your early evening of you on the East Coast I apologize for that and but am sheltering and the west coast and B, We had our board meeting today. So so this is one reason why are we doing at this hour and hopefully it's not overly inconvenient to you are now.
Before I sign off I would like to wish you and your family, a very safe and happy holidays, and I hope to see each and every one of you and person next year, so with that have a good day. Thank you.
This concludes today's call. Thank you for your participation you may now disconnect.
Okay.
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