Q3 2023 BlackBerry Ltd Earnings Call
Speaker 2: I.
Speaker 3: Good afternoon and welcome to the Blackberry third quarter fiscal year 2023 results conference call. My name is Matt and I will be your conference moderator for today's call. During the presentation, all participants will be in a listen-only mode.
Speaker 4: We will be facilitating a brief question and answer session towards the end of the conference.
Speaker 5: Should you need assistance during the call, please signal a conference specialist by pressing star zero. As a reminder, this conference is being recorded for replay purposes.
Speaker 6: I would now like to turn today's call over to Tim Foot, Vice President of Blackberry Investor Relations. Please go ahead. Tim Foot, Vice President of Blackberry Investor Relations
Speaker 7: Thank you, Matt. Good afternoon and welcome to Blackberry's third quarter fiscal 2023 conference call.
Speaker 8: With me on the call today are Executive Chair and Chief Executive Officer John Chen and Chief Financial Officer Steve Wray.
Speaker 9: After I read our cautionary note regarding forward-looking statements, John will provide a business update and Steve will review the financial results.
Speaker 10: We will then open the call for a brief Q&A session.
Speaker 11: This call is available to the general public via call-in numbers and via webcast in the investor information section at lapbray.com.
Speaker 12: A replay will also be available on the blackberry.com website.
Speaker 13: Some of the statements we will be making today constitute forward-looking statements and are made pursuant to the Safe Harbor provisions of applicable US and Canadian securities laws.
Speaker 14: We'll indicate forward-looking statements by using words such as expect, will, should, model, intend, believe, and similar expressions.
Speaker 15: 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.
Speaker 16: Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements.
Speaker 17: These factors include the risk factors that are discussed in the company's annual filings and MD&A. You should not place undue reliance on the company's forward-looking statements.
Speaker 18: Any forward-looking statements are made only out of today and the company has no intention and undertakes no obligation to update or revise any of them, except as required by law.
Speaker 19: As is customary during the call, John and Steve will reference non-GAAP numbers in their summary of our quarterly results.
Speaker 20: For a reconciliation between our GAAP and non-GAAP numbers, please see the earnings press release published earlier today, which is available on the EDGAR, CDER and Blackberry.com websites. And with that, I'll turn the call over to John . Thanks, Tim. Good afternoon, everyone, and thanks for joining the call today.
Speaker 21: This was the quarter where Blackberry made good progress based on leading indicators for both the IoT and the cyber businesses.
Speaker 22: Blackberry beat expectation for both total company revenue and earnings per share.
Speaker 23: On the IoT side, we saw the business performing very strongly, setting yet another record for design phase revenues.
Speaker 24: The strategic decision made over five years ago
Speaker 25: to position QNX as the trusted foundation for high performance edge compute, especially in auto is really bearing fruit.
Speaker 26: On the side by side, in line of what we said last quarter, we saw an improvement in the level of churn that we experienced recently.
Speaker 27: The investment being made in product and go-to-market continue to drive sequential building growth in our cyber business.
Speaker 28: Let me start my review with the IoT business unit.
Speaker 29: As mentioned, there was another strong quota.
Speaker 30: Revenue was $51 million, a 19% year-over-year increase.
Speaker 31: Gross margin was 80%.
Speaker 32: Pre-production revenue, that is revenue for development seats and professional services, set another record.
This strength is being driven by significant new design ways.
In fact, in the first six months of this fiscal year, Blackberry added more new royalty backlog than in any prior 12 months period.
And their momentum continued this past quarter with winds in a number of verticals, but particularly in the safety critical auto ADAS.
Advanced Driver Assist, and Digital Carpet Domain, where we are significantly gaining market share.
The largest wind in the quarter includes a wind with Aptiv to use the QNX hypervisor and RTOS to power a digital cockpit for a European OEM.
Other auto wins include a design with diamond truck.
An instrument cluster design win with TO1 supplier Morelli.
for a leading Japanese automaker and designed with a leading Chinese Tier 1 supplier for an 8-hour driver assist module.
In the quarter, we secure a total of 24 new design wins, with 9 in auto and 15 in the general embedded market or GEM.
In JAM, we secure design wins within MECL, industrial, as well as defense and aerospace.
Among the use cases was an autopilot flight-controlled system
a naval combat system
and retinal surgery robotics to name just a few.
Looking forward, we continue to see a very strong pipeline of upcoming new designs. We believe that we're in a strong position to convert this opportunity into wins given our recent success rate, our very strong reputation in the market, and of course the strain of our technology.
The industry-wide macro backdrop for auto remains mixed.
We see strength in China and India, both significant markets for QNX.
On the flip side, we see some tightening in North America and Europe , primarily due to ongoing supply chain and some demand challenges.
However, it is important to keep this in context.
While production volume is an important factor in QNX total revenue,
The auto industry's significant shift to the software-defined vehicle
And the development program that drives this has enabled us to deliver double-digit revenue growth.
This quarter we made a major product announcement for QNX in the cloud.
At the Amazon Reinvent Conference, AWS announced that QNX will be made available to system developers.
via their cloud-native virtual engineering workbench.
Being able to access QNX in the cloud greatly reduces the time to market for developers and provides significant addition market reach for BlackBerry.
QNX will be accessible by AWS large and growing community of over a million developers across multiple verticals not just auto.
We have very positive feedback from both this demonstration and early SS product made available to selected OEMs and Tier 1s.
We expect to provide more details on the general availability at CES.
Moving now to a new and exciting use cases for our CertiCom technology.
In the quarter, we deliver a electric vehicle charging station PKI, public key infrastructure solution, for a leading North America automotive OEM.
The solution enables the vehicle and EV charging stations to identify and establish trusted connectivity as well as allowing OEM to meet the new international standard for secure vehicle-to-grid innovations.
This capabilities opens a significant opportunity for Blackberry.
to secure critical smart city infrastructure in the future.
Given the strength of the IoT business going into Q4, we expect revenue to come in at the high end of the range we provided previously. We are therefore now expected our full year revenue outlook to be in a range of $205 million to $210 million.
which translate to 15 to 18% year-on-year growth. Let me now move to IVY, proof of concept trials where customers continue to progress well.
Product development also remain on track with the latest version released last week as planned.
We have some significant product demonstration of IV this past quarter. Last month at the Bosch Connected World in Berlin, the IV platform was running in a Peugeot car and enabling predictive maintenance in-car payments and Amazon Alexa virtual assistant applications.
Ivy was also shown operating in a cloud at the AWS re-invent conference in Las Vegas and the developer workshop held there were well attended by OEM and tier ones.
Feedback from both events was very positive.
We also added a new application from Roadside Telematics to the IV ecosystem this quarter. Roadside Telematics is a California-based startup aiming to use sensor data from Blackberry IV to provide automatic notification to 911 emergency service in the event of a crash.
Let me now turn to our cyber security business.
Let me now turn to our cybersecurity business. Revenue for the quarter was $106 million.
On the sequential basis, billing increased for the second concerted quarter to $103 million.
Gross margin was 57%.
AR was 313 million.
The dollar-based net retention rate was 84%.
In line with our comment last quarter, we see signs that investment in product and people are starting to pay off. The rate of churn seen recently has improved this quarter, with an uptick in renewal rates and with it an improved quarter-over-quarter change in ARR.
Turning now a bit to the macro environment.
We've seen the same as many other software companies, including those in cybersecurity, noticing some elongation of self-cycles during the past quarters.
Therefore, it is likely that the macro environment will be a headwind for the business in the near term. Although, we are likely to fare better than most given our heavy skew towards regulated customers, particularly government.
Furthermore, cybersecurity still remains an essential purchase.
Touching briefly on the OEM market specifically, this past quarter, industry analysts noted an increased adoption of UEM solutions in regulated environment.
In the quarter, despite the macro challenges, we secure a great number of multi-year transactions empiriously.
This includes overviews and account expansions.
The customer includes some of those with the highest security needs anywhere in the world.
such as multiple agencies in the U.S. Department of Homeland Security.
the US Defense Intelligence Agency, and the National Guard.
Also, the US Missile Defense Agency, the Pan-European Missile System company MBDA, as well as the NATO Headquarters, will also approve our BlackBerry Secure Voice Solution for official NATO communications.
Also within government was Shared Service Canada, the US Department of Justice, the FBI, the US Department of Treasury, as well as the US Department of Energy.
Outside of North America, we secure business with the Australian Federal Court, the Government of Ireland, the Government of Wales, the Scottish Police, and the German Ministry of Home Affairs.
In financial services, we did business with Bank of China.
credit at your code.
Blackstone Investment Management.
Singapore DBS Bank.
German KFW Bank as well as the German Federal State Bank.
Finally, I'll mention that we continue to win in other verticals too, with examples including Johnson & Johnson.
leading law firms Sullivan and Cromwell as well as Swiston and ABB a leading electric equipment manufacturer.
Some of you will hopefully have joined us for our Security Summit at the New York Stock Exchange in October . During the event, we announced the launch of a cyber threat intelligence subscription services that will provide customers with tailored threat briefings.
This service will launch in January and the initial response has been positive, particularly from the government agencies.
Turning to outlook, we expect to see improvement in both customer churn and new local acquisition continuing next quarter. We are not changing our outlook for fiber revenue and billings, but as previously mentioned, Q4 outlooks include some large potential government deals that the team is working hard to close.
As always, with larger view of this nature, timing can be predictable.
However, regardless of whether we're able to close these two in time for Q4 or if they slip in Q1, we expect to deliver a sequential building's growth in a quarter.
This would mean sequential building grows for the third quarter in a row.
What's more, we currently expect to see the value of billings in Q4 exceeding revenue.
This is a strong leading indicator and we expect a return to ARR growth in the second half of next fiscal year.
Let me now move to licensing. Revenue in the quarter came in higher than expected at 12 million. Growth margin was 67%. In the quarter, we recognized revenue related to royalties from past licensing deals, and they came in stronger than expected.
Let me now turn the call over to Steve who will provide more details on our financial.
Thank you, John . As usual, my comments on our financial performance for the third quarter will be in non-GAAP terms unless otherwise noted.
Total company revenue for the quarter was 169 million.
total company gross margin was 64%.
Operating expenses for the third quarter were $137 million.
These non-GAAP operating expenses exclude $56 million fair value gain on the convertible debentures.
$22 million in amortization of acquired intangibles, and $8 million in stock compensation expense.
Blackberry remains in a targeted investment mode.
Meaning, our capital allocation strategy is for aggressive investment in our IoT business.
to capitalize on the strong opportunities we see in front of us there, and for strategic investments in our cybersecurity business to drive both top-line growth as well as deliver profitability.
These investments are discretionary and can be eased back if required.
This strategy is starting to pay off with IoT winning record levels of new designs.
and the trajectory of the cyber business improving.
Given these investments, we continue to expect manageable EPS loss and cash usage in the near term.
The gap operating loss for the third quarter was 2 million.
the non-GAAP operating loss was 28 million.
Now turning to the balance sheet and cash flow.
Total cash, cash equivalents and investments were $505 million at November 30, 2022.
Free cash usage in the quarter before accounting for the settlement of a prior legal case was 22 million.
That concludes my comments and I'll turn the call back to John .
Okay.
All right, thank you Steve. Before we open up the line for Q&A, let me recap on the key messages.
We are pleased with the progress made.
Sorry.
because I think Steve missed a few points in his notes. Anyway, we're pleased with the progress made by both our core business unit this quarter. The IOT business unit continues to deliver strong 19% year-over-year revenue growth, despite a macro headwind.
The cybersecurity business unit trajectory is progressing, with the improved level of churn and increased in multi-year deals as well as new logos.
And finally a quick update on the IP patent portfolio sale. As we said before, there are two main interested parties. I'm pleased to say that tremendous progress has been made with Overdamp.
Catapult, who you know now has a motivated financing partners line up and all parties are currently negotiating the final documents.
The second party is a large PE firm that doesn't need external financing.
They have completed their due diligence and term sheets discussion are well advanced.
We obviously will keep you updated as things progress.
That concludes my remark. Matt, could you please open the line for Q&A?
Thank you. We will now begin the question and answer session. To ask a question, please press star 1 on your telephone keypad. Please make sure your line is unmuted. Again, press star 1 to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions.
We request that you limit yourself to one question and one follow-up.
And our first question will come from Luke Young with Baird. Please go ahead.
All right.
Good afternoon, thanks for taking the question. A couple questions related to IoT business. First, John , if you could get any additional color on the subcomponents of your auto software business in IoT. Specifically, if there's anything you'd be able to add on the pre-production parts of that business, of course, but...
Also be interested in any commentary on royalty terms looking forward and all that might lay out over the next few quarters or into next year in terms of launch activity. Betty, you're the one who said you know business. Thank you.
It didn't come across clearly. So Luke, breaking down IOT revenue, you've obviously said that the pre-production piece is at record levels. Any other comments? I'm guessing around royalties.
Oh, I could tell you a typical year, a typical quarter or year actually, in our general guidelines about 40% of our revenue coming from royalty, 40% coming from developers, seeds as well, labourless job acquisition.
Sorry, and then 20% come from oil, come from services. That's kind of a rule of thumb.
It didn't come across very clear on the microphone. So, Luke, sorry about that.
Perhaps the question Luke if I can rephrase is, is there any colour on
on royalties given the strength that we've seen in design phase.
Um...
Well, royalty is pretty much tied to production. The industry auto production...
basically where proportionately
about the same, meaning that we expect with 85 million cars being built this year
so
It's a little, probably about 10-15% down from previous pre-COVID years.
So that gives you some guideline of what the royalty is like.
I'll just leave it there given that connection and take it offline. Thank you.
Our next question will come from Mike Walkley with Canaccord Genuity. Please go ahead. Hi Mike. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi. Hi.
Hey John , just maybe a follow-up on the on the IOT question. Just based on you know some of the record level you're seeing for the design phase revenue and particularly in ADES, you know as these cars go into production in future years, you know how should investors think about maybe...
the magnitude of royalty per car versus your current infotainment system today? Yeah. So, yeah, that's a good question. So, the ARPU, which is you asking basically the ARPU questions, you know, our target at ARPU remains to be $25 a car.
And of course, we were quite a big business from it. However, if you look at the infotainment world, the infotainment world is now down to probably $1 to $2 a car.
But on the other hand, ADAS is probably pushing high single digit dollars, eight, nine, seven, eight, nine dollars. So that's how, and any newer features, you know, carpet, clusters.
vehicle to vehicle communications and stuff. They all have reasonable dollar amount tied to it. Certainly a factor above the infotainment.
Right, that's helpful. My follow-up question, just on the cybersecurity business and more maybe the endpoint and competitive landscape, I know there's a share for silence to gain from the max fees and trend micro, but there's several next generation competitors that are...
pretty price aggressive and they're also talking about elongated deal cycles. Could you kind of update us on what you're seeing and what's giving you that confidence to return to ARR growth in the second half of next year?
Yeah, we have a pretty elaborate model and spreadsheet between the cyber business units and the finance organization of the company. And it looks like that returning to ARR second half of next year is quite real.
I mean AR growth, sorry, you'll be AR growth of second AR next year. Probably pretty stable in the first half. And that's obviously based on the pipeline we have today. You know, we factored in a little bit of the push out.
And then of course the renewal of some of the government contract. One of our challenges is we have so many government contracts and they typically buy on an annual basis.
because that's all the budgets they have and they can only
They only spend what they have approved, but just on.
So that's one thing that we face. But on the other hand, the good news in there is that the government customers are quite steady and stable and their buying patterns are pretty steady also.
Thanks. Maybe one last question and I'll pass the line. John , just your thoughts on the macro environment heading into next year. You guys have ample cash on the balance sheet and if you end up selling the licensing business, you should have more cash on the balance sheet. But as you look into a challenging macro, how are you guys thinking about...
balancing investment for growth versus preserving free cash flow. Good questions. Where we are right now and you listen to what Steve had outlined it we are in a kind of a very careful investment mode. In IOT we are definitely investing and hiring.
We are winning.
a lot of the deals. I wouldn't say all the deals, but
a majority of the deals, particularly in the ADAS world and the corporate world, in the hypervisor world. So...
We believe the momentum, you know, the kind of tailwind is there for us and we wanted to capture it. So we will be hiring Engineers, we'll be hiring professional services people. We're expanding our sales force partner programs and everything else. On the cyber side, John Gio Martel is balancing the growth.
of the ARR and the billings.
balancing that with the profitability. So the growth will, the investment there will still be there, but probably it'll be a little slower with an eye to the bottom line, given the uncertainty of the macro, as you pointed out. So it's kind of a little bit of a tale or two city here. One is just keep growing.
because we got the momentum. And the other one is we want to do a more balancing, more guarded growth.
Great. That makes sense. Thanks for taking my questions, and happy holidays to everybody on the call. Thank you. Same to you.
Our next question will come from Todd Coopland with CIBC. Please go ahead. Hi, Todd. Hey there, John . Good evening. Can you hear me? Okay. Yeah. All right.
Sounds like the CIBC.
Internet mic is working fine.
I wanted to ask you.
I wanted to ask you
About first on first on the cyber business. So you're basically saying flat year on year in the first half
with some growth in the second half.
How much more work is needed to bring the updated sales team?
whatever other new product bundles you're contemplating to actually get to those ranges that you're talking about.
I think we are net growing.
the salesforce, meaning that salesforce size is increasing modestly.
And so,
We don't have to have any
mysterious program or a very aggressive program of some sort in order to achieve what I just said. I think you know we we all feel pretty comfortable and the cyber business unit feel comfortable they'd be able to be fratish in the first half. Only reason that is fratish by the way.
As a reminder, we were expecting growth in the past for the first half. It's because of the so-called elongating sales cycle. So we expect it to be faddish for six months and then picked up again. And that's really a lot more macro driven rather than us having to do some.
special things. So by and large, we have a roadmap of technology, but none of the stuff that I talk about depending on a particular product.
I think the products are in pretty good shape.
We do need to continue to drive the channel, continue to increase the professional services, particularly the MSB. I think those are the two things that needs to happen, but it's part of our plan to make happen anyway.
So nothing really special.
That's helpful.
then I had a question on I guess the movements on the balance sheet.
So, I think in the past, the price for the patent licensing business is 600M.
Does that potentially change if the second party comes in? Like if they get into the mix here, is the takeaway that...
you're going to get to 600 or possibly higher? or is it just
they get there first and they can close the deal. What's the message on that?
Yeah, I'm sorry, I shouldn't comment on it. I know the questions and I understand, of course I have the answer, but it's been unfair to both parties while we're negotiating in parallel.
So if you don't mind, just hold off of that until we made the announcement. I'm expecting the announcement of the conclusion of this relatively soon.
I see.
But the takeaway is that...
The confidence level with the second party has gone up from the last time we talked about this where financing was in question.
to where the probability of getting that 600 million has gone up materially with that and then the initial party getting financing.
Yes, again I can't go into the structure but the initial party, the confidence level had, to the right, had dramatically gone up.
Should we take away, given the delay and the two parties here, that the structure that was announced before is potentially open to some adjustments?
Okay Should we should we take away Given the delay and the two parties here that this structure That was announced before is is potentially open to some adjustments We're a minor
I see. Okay. Okay. And then just sort of one follow-up balance sheet question. One of the DeVentures is due in about a year. Any messaging on
Paying it down versus refinancing at this point. I think we're going to pay it down. Yeah, the message is pay that down. Okay. All right. Great. Thanks very much. Go.
Our next question will come from Trip Chaudhry with Global Equities Research. Please go ahead. Hi Trip. Hello. This is a very good quarter considering the backdrop. Two questions I have. Whenever we are in a recession, the federal government...
usually opens up their budgets, the budgets increase to offset collapse of the economy.
Have you seen any federal government agency or across the globe who may have at least not reduced their budgets and may be thinking of increasing their budgets yet? Or you haven't seen anything like that so far?
Well, it's a mixed bag, Trip. So as far as cyber investment, I have not seen government back away from it, particularly the government that we deal with, which is
probably about G7, G25, depending on the level that we're at.
5i country for example. So, we have not seen the budget being cut or reduced in IT spending and cyber spending. So that's good news. There are some very selected pockets.
NATO spending a little bit more, Germany spending a lot more, from an IT defense point of view.
And Canadian government also spends more in supporting Ukraine, for example. So, US, the money there is a little bit more driven towards the more social programme.
So, it's kind of a, I can't give you a yes or no answer. It kind of depends on the various governments that we're keeping very close tab with. And, but on the overall scale, I haven't seen the government reduce their IT budget yet.
Very good. Second question, as we are seeing a lot of new vehicles coming into the market, and each one of them have at least two or three features. One, either the screens are really very big in the vehicle or they have multiple screens. Do you think that changes the royalty stream for you, like if a vehicle...
say just three years, four years back only had one tiny screen. Now on an average there are three or four screens, front entertainment, rear seat entertainment, overhead entertainment, you name it. Video conferencing, this, that. Do you think there is a potential to increase some royalties because the multi screen.
bring me more copies. However, there is a trend in software-defined vehicle, either for redundancy purposes or multi-MPU purposes, particularly as the capacity requirement goes up, they are using more copies of QNX.
So it is more of an architectural point rather than a display point.
I got it, I got it, I got it, very nice. And then from the same token, I think if we go from 5G to 6G, the royalty stream because of more use cases and more QNX copies and the didn't see and resiliency.
we may directionally see per vehicle royalties to directionally go up rather than go down? Oh yeah, I don't see. I mean, there are two points to it. Number one, we have not seen the royalty of your QNX going to go down anytime soon. In fact, more coffee expected per car and the...
then I'm hopeful that that will bring us also a good revenue stream.
Excellent, excellent. Thank you very much. We look forward to seeing you all at the CES conference. Thank you.
Our next question will come from Paul Tryber with RBC Capital Markets. Please go ahead. Hi Paul. Hi there John . I just hoping you can speak to on a cyber business the mechanics around NDR you know which declined sequentially versus your comment on improved churn. You know can you speak to some of the moving parts there and then
Specifically, can you break out churn or the trends there in terms of UEM versus EPP?
breakout churn or the trends there in terms of UEM versus EPP?
Good question.
In general, as we have indicated in the beginning of the year, the churn is coming from the UEM base small-medium enterprise.
We have seen that as a consistent scheme.
consistent theme, but that has slowed down now quite a bit. At least the last quarter we have seen the slowing.
In fact, we are seeing the bigger deal going a little bit more multiyear with us.
I think UEM is now definitely stabilized. It's also being viewed more strategically by the market. And Gartner actually recently wrote a note on it and we are seeing the same thing. Customers are starting to see
to treat UEM rather than a price item, is now starting to look at it a little bit more strategically, particularly on the cybersecurity side as a factor of the cybersecurity. The last quarter, something has happened that causes the infrastructure, the mobile infrastructures management and endpoint management.
to be relooked at in importance. You probably know this obviously, a number of banks in the United States has been fined for using messaging technology that are not the most secure or archivable. I think that forces all the banks CIOs starting to look at.
the completeness of their infrastructure. So obviously the UEM is a technology that's been around for a long time. This is not just BlackBerry UEM, other established players, UEM also obviously.
So I'm answering your question in kind of a long roundabout way. The churn slowed down, still kind of contained within the SMB and the UEM space.
And
And we as I said, we see a slow down. We haven't seen it anywhere else. We definitely have not seen it on EPP
EPP seems to be holding its own.
It's helpful to understand that. Just on your point about the settlement with the banks, I mean does it seem like when you look at banking or regulated industries, it seems like there's a shift away from bring your own device to corporate owned devices. Do you see that in other industries other than just banking and then
How do you see that, relatively speaking, helping BlackBerry from a product positioning or from a competitive position?
So when the banks go to corporate issues, they are typically looking at high level security and archivability. And that's where our strain comes in.
So we're known to be the most secure mobile platform that exists. So, and I think there's not a lot of debate over that in the industry. So that helped us a lot. And as far as I'm seeing in the industry, maybe different government branches and law enforcement.
I have not seen
other major verticals that go to corporate issue device.
or at least swing back from a BYOD to a copper issue devices.
Okay, thank you for taking the questions and happy holidays.
I would like to turn the call back over to John Chen, Executive Chair and CEO of Blackberry, for closing remarks. Okay, well thank you. Thank you, operator. As we pointed out, Blackberry will be a CES in Las Vegas, where we'll have a number of exciting announcements and demonstrations.
by IoT business, including the IV running in a Jeep Cherokee. On the 5th of January , Blackberry will be co-hosting a Software Defined Vehicle award with Motortran, a leading auto industry analyst.
the IV running in a Jeep Cherokee. On the 5th of January , Blackberry will be co-hosting a software-defined vehicle award with MotorTran, a leading auto industry analyst.
In fact, if you guys want to get in there, I don't know whether we have tickets, but please contact Tim. There's a big event on the 5th evening in Vegas.
The award recognized those who had made outstanding contributions to the automotive industry through software. I know there has been a 1919 award. So the following day, by the way, which is the 6th, at 1 p.m. Pacific time, we will be hosting a hybrid investor Q&A session with management at the booth.
This event will be streamed and investor will be able to hear details about the exciting new developments. Please make sure you register for the stream on backberry.com slash investor webpage.
Thank you all again for joining today's call, especially those of you on the East Coast where I know it's getting late. I hope you and family have a happy and safe holiday, and see you next year.
This concludes today's call. Thank you for your participation. You may now disconnect.