Q1 2025 BlackBerry Ltd Earnings Call
Speaker Change: [music].
Cole: Good afternoon, and welcome to the BlackBerry First Quarter Fiscal Year 2025 results conference call. My name is Cole, and I'll be your conference moderator for today's call. During the presentation, all participants will be in a listen-only mode. We'll be facilitating a brief question and answer session towards the end of the conference. Should you need assistance during the call, please signal conference specialists by pressing the star key followed by zero. And, as a reminder, this conference is being recorded for replay purposes. I would now like to turn today's call over to Tim Foote, CFO, Cyber Security Division and Head of Investor Relations. Please go ahead.
Good afternoon, and welcome to the Blackberry first quarter fiscal year 2000, and twenty-five results conference call. My name is Colin and I'll be your conference moderator for today's call. During the presentation. All participants will be in a listen only mode. We'll be facilitating a brief question and answer session towards the end of the conference should you need assistance during the call. Please signal a conference specialist.
So by pressing the star key followed by zero and as a reminder, this conference is being recorded for replay purposes, I would now like to turn today or I would now like to turn today's call over to Jim Foote, CFO Cyber Security Division and head of Investor Relations. Please go ahead.
Tim Foote: Thank you, Cole. Good afternoon everyone, and welcome to BlackBerry's first quarter fiscal year 2025 earnings conference call. Joining me on today's call is BlackBerry's Chief Executive Officer, John Giamatteo, and Chief Financial Officer, Steve Rai. After I read our cautionary note regarding forward-looking statements, John will provide a business update, and Steve will review the financial results. We will then open the call for a brief Q&A session. This call is available to the general public via call-in numbers and via webcast in the investor information section at BlackBerry.com. A replay will also be available on the BlackBerry.com website.
Thank you Carl and good afternoon, everyone and welcome to Blackberrys first quarter fiscal year 2025 earnings conference call.
Speaker Change: Joining me on today's call, it's Blackberrys, Chief Executive Officer, Joe <unk>.
Speaker Change: And Chief Financial Officer, Steve right.
Speaker Change: After I read our cautionary note regarding forward looking statements John will provide a business update and Steve will review the financial results.
Speaker Change: We will then open the call for a brief Q&A session.
Speaker Change: Coal is available to the general public via Colin numbers, I'm, sorry, web calls and Investor information section.
Speaker Change: All of them.
Speaker Change: A replay will also be available on the Blackberry Com website.
Tim Foote: 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. We will 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.
John: Some of the statements, we'll be making today constitute forward looking statements.
John: Pursuant to the safe harbor provisions or click for U S and Canadian Securities laws.
John: Forward looking statements by using words, such as expect will should buddle intends believes and similar expressions.
John: Forward looking statements are based on estimates and assumptions made by the company in light of its experience and its the.
Reception of historical trends current conditions unexpected future developments, that's why there's other factors that the company believes are relevant.
Tim Foote: Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statement. 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. Any forward-looking statements are made only as of today, and the company has no intention and undertakes no obligation to update or revise any of them, except as required by law.
John: Many 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 annual filings and M. D N a.
John: Should not place undue reliance on the company's forward looking statements.
John: Any forward looking statements somebody only as of today and the company has no intention and undertakes no obligation to update or revise any of them except as required by law.
Tim Foote: As is customary during the call, John and Steve will reference non-GAP numbers in their summary of our quarterly results. For reconciliation between our GAP and non-GAP members, please see the earnings press release published earlier today, which is available on Edgar, CedarPlus, and BlackBerry.com.
Speaker Change: As is customary during the cold Sheldon staple reference non-GAAP numbers and a summary of our quarterly results.
Speaker Change: A reconciliation between our GAAP and non-GAAP numbers. Please see the earnings press release published earlier today, which is available on Edgar and SEDAR bus and Blackberry com websites.
Joe: With that I'll turn the call over to Joe.
Tim Foote: Terrific. Thanks, Tim.
Joe: Terrific. Thanks, Tim.
Joe: And thanks to everyone for joining us today.
John Joseph Giamatteo: And thanks to everyone for joining us today. I'm pleased to report another solid quarter for BlackBerry. We believe our strategy is working. This past quarter, we made further progress with establishing our IoT and cybersecurity businesses as standalone divisions, while at the same time, driving additional cost efficiency. We delivered our third consecutive quarter of sequentially better free cash usage despite the impact of seasonality. We also moved further along the path to profitability by improving both adjusted EBITDA and non-GAAP earnings per share.
Joe: I'm pleased to report another solid quarter for Blackberry.
Joe: We believe our strategy is working this past quarter, we made further progress with establishing our Iot and cyber security businesses as Standalone divisions, while at the same time driving additional cost efficiencies.
Joe: We delivered our third consecutive quarter of sequentially better free cash usage, despite the impact of seasonality.
Joe: We also moved further along the path to profitability by improving both adjusted EBITDA and non-GAAP earnings per share.
John Joseph Giamatteo: On the top line, both our IoT and cybersecurity divisions delivered better than expected revenue, and our cybersecurity business achieved improvement in its key ARR and dollar-based retention rate metrics. So, let me begin with the IoT division.
Joe: On the topline, both our Iot and cyber security divisions delivered better than expected revenue and our cyber security business achieved improvements in its T. A R. R and dollar based net retention rate metrics.
John Joseph Giamatteo: Revenue for the quarter was $53 million above the top end of the range we provided previously. Gross margin remains strong at 81%. As expected, due to the timing of OEM programs, development seat revenue returned to a more typical lower level than the record set in Q4. However, both royalties and professional services remain strong and at near record levels. In fact, royalties were stronger than expected and largely drove the IOT revenue outperformance.
Joe: So let me begin with the Iot Division revenue for the quarter was $53 million above the top end of the range we provided previously.
Joe: Gross margin remained strong at 81%.
As expected due to the timing of OEM programs.
Element <unk> revenue return to a more typical lower level than the record set in Q4.
Joe: However, both royalties and professional services remained strong and at near record levels and.
Joe: In fact royalties were stronger than expected and largely drove the Iot revenue outperformance.
John Joseph Giamatteo: Looking a little further, automotive accounted for approximately 80% of the total revenue in the first quarter, above the more typical 75% driven in particular by Digital Cockpit and ADAS. Meanwhile, our professional services team is operating at near record levels.
Joe: Double clicking a little further.
Joe: Automotive accounted for approximately 80% of the total revenue in the first quarter above the more typical 75% driven in particular by digital cockpit and a dash.
Our professional services team is operating at near record levels.
John Joseph Giamatteo: To support our customers and their development programs, we continue to invest in scaling our services team. This not only helps drive near-term revenue but also assists customers in starting production and unlocking our $815 million royalty backlog. Within Automotive, this quarter, we won a number of new design wins for digital cockpits and ADAS.
Joe: Support our customers and their development programs, we continue to invest in scaling our services team did.
Joe: Not only helps drive near term revenue, but also assist customers in starting production and unlocking our $815 million royalty backlog.
John Joseph Giamatteo: Among the largest was a top five global automaker that is utilizing the QNX hypervisor and acoustics module as well as the QNX ADAS sensor framework in a global deployment. Another win was with a leading European OEM that will leverage a high-performance Qualcomm Snapdragon chipset in the cockpit and a leading electric vehicle OEM that will deploy QNX in their latest range of SUVs and pickups. In ADAS, we secured a win with Geely, a top five Chinese automaker that will leverage the QNX RTOS and a Black Sesame chipset to power an L2 plus ADAS stack.
Within automotive this quarter, we won a number of new design wins for digital cockpit and a dash.
Joe: The largest was a top five global automaker that is utilizing the Q N X hypervisor and acoustics module as well as the Q N X Adas sensor framework in a global deployment.
Joe: Another win was with a leading European OEM that will leverage our high performance Qualcomm Snapdragon chipset in the cockpit and leading electrical vehicle OEM that will deploy Q N X in their latest range of Suvs and pickups.
Joe: In Adas, we secured a win with Geely.
Five Chinese automaker that will leverage the <unk>, our cost and our black Sesame chipset to power an L. Two plus a dashboard.
John Joseph Giamatteo: The stack includes navigation on autopilot, automated lane control, adaptive cruise control, and other high-performance features. Building on the initial design wins in Q4 for the latest next-generation version of our RTOS SDP 8.0, this past quarter, we secured further new business for this high performance, highly scalable operating system. DigiCare Biomedical, a U.S.-based medical equipment OEM, selected QNX SDP 8.0 to power a multi-parameter patient monitoring system.
Joe: The stack includes navigation on auto pilot automated lane control adaptive cruise control and other high performance features.
Joe: Building on the initial design wins in Q4 for the latest next generation version of our our TASS S. D. P. A dot O.
Joe: This past quarter, we secured further new business for this high performance highly scalable operating system.
Joe: Did you care biomedical a U S based medical equipment OEM selected QAD access T. P. Dot all the power of our multi parameter patient monitoring system.
John Joseph Giamatteo: In other non-automotive general embedded market wins, QNX will be used for an orthopedic surgical robot that will be utilized in knee, hip, spine, and other complex surgical procedures; in industrial automation, among other wins with a next generation robotic controller that will run on NXP silicon. Now last quarter, we mentioned how customers are increasingly requesting that we provide more of the software plumbing, including integrating third-party software products directly into QNX. Interest in this continues to build, and we held a number of customer workshops this past quarter.
Joe: In other non automotive and general embedded market wins shoe and X will be used for an orthopedic surgical robot that will be utilized in knee hip spine and other complex surgical procedures.
Joe: In industrial automation among other wins was a next generation robotic controller that will run on NXP silicon.
Joe: Last quarter, we mentioned how customers are increasingly requesting that we provide more of the software plumbing, including integrating third party software products directly into Q N X.
Joe: Interest for this continues to build and we held a number of customer workshops this past quarter.
John Joseph Giamatteo: Turning to market conditions, leading analysts expect global light vehicle production in calendar year 2024 to be stable compared to 2023, at approximately 90 million units. QNX's growth is being driven by a greater penetration of this total number of units, as well as increased content per vehicle as they become progressively smarter and more software defined. Despite a pullback in electric vehicle demand, global battery electric vehicle, or BEV, production is still expected to grow approximately 27% in 2024.
Joe: Turning to market conditions, leading analysts expect global light vehicle production in calendar year 2024 to be stable compared to 2023 at approximately 90 million units.
Joe: Q1, <unk> growth is being driven by a greater penetration of this total number of units as well as an increased content per vehicle as they become progressively smarter and more software defined.
Joe: Despite a pullback in the electric vehicle demand global bought a battery electric vehicle or Bam production is still expected to grow approximately 27% in 2024.
John Joseph Giamatteo: It's important to emphasize that the systems that QNX supports, the digital cockpit, ADAS, chassis, and others, are just as applicable to internal combustion engine vehicles as they are to electric vehicles. QNX is well diversified and largely agnostic to the mix of powertrains.
Joe: It's important to emphasize that.
Systems that Q&A supports the digital cockpit, a dash chassis and others are just as applicable to internal combustion engine vehicles as they are to evs.
Speaker Change: She went actually is well diversified and largely agnostic to the mix of powertrain.
John Joseph Giamatteo: That said, in the near term, the challenges automakers are experiencing in delivering software development programs continue. These industry-level challenges remain a headwind for the QNX business this fiscal year. However, despite this, we continue to expect revenue for the full year to be in the range of $220 to $235 million. For the second fiscal quarter, we expect revenue to be in the range of $50 to $54 million.
Speaker Change: That said in the near term the challenges automakers are experiencing in delivering software development programs continue.
Speaker Change: These industry level challenges remain a headwind for the Q N X business this fiscal year.
Speaker Change: However, despite this we continue to expect revenue for the full year to be in the range of $220 million to $235 million.
Speaker Change: For the second fiscal quarter, we expect revenue to be in the range of $50 million to $54 million.
John Joseph Giamatteo: We expect solid revenue from royalties and professional services with the potential for some sequential uplift in development seat license revenue. So switching now to the cybersecurity division, this was a good quarter where we continue to see the benefits from the product and go-to-market changes that we've made. We saw further modest but encouraging improvement in two key metrics for this division. Annual Recurring Revenue, or ARR, increased for the second consecutive quarter to $285 million. The Dollar-Based Net Retention Rate, or DBNRR, also increased for the third consecutive quarter to 87%.
Speaker Change: We expect solid revenue from royalties and professional services with potential for some quarters the sequential uplift in development seat license revenue.
Speaker Change: So switching now to the cyber Security Division. This was a good quarter, where we continue to see the benefits from the product and go to market changes that we've made.
We further we saw further modest but encouraging improvement in two key metrics for this division.
Speaker Change: Annual recurring revenue or <unk> increased for the can set a second consecutive quarter to $285 million.
Speaker Change: The dollar based net retention rate or D. B N. RR also increased for the third consecutive quarter to 87%.
John Joseph Giamatteo: Revenue was $85 million and above our guidance range. This outperformance was largely driven by improved ARR and another strong quarter for our Secchi smart business. Cybersecurity gross margin was 59% sequentially lower again due to the strength in SecuSmart. SecuSMART's market-leading, NSA-certified, end-to-end encryption voice solution is really resonating in mission-critical environments, especially large governments.
Speaker Change: Revenue was $85 million and above our guidance range.
Speaker Change: This outperformance was largely driven by improved IRR and other strong another strong quarter for our secchi smart business.
Speaker Change: Cyber security gross margin was 59% sequentially lower again due to the strength in second smart.
Speaker Change: Second smart market, leading NSA certified end to end encryption voice solution is really resonating in mission critical environments, especially large governments.
John Joseph Giamatteo: This quarter, BlackBerry secured two large renewals and expansions that delivered both in-quarter revenue as well as ARR. Given the strong book of business, we expect Q2 to be another solid quarter for SecuSmart. This is likely to mean that cyber gross margins will remain lower this coming quarter. For Silents, over the last couple of quarters, we focused on the segments where our win rates are strongest, and we're pleased with the traction we're getting. These segments include operational technology and small and medium-sized enterprises.
Speaker Change: This quarter Blackberry secured two large renewal and expansions that deliver both in quarter revenue as well as a R. R.
Speaker Change: Given the strong book of business, we expect Q2 to be another solid quarter for <unk> smart.
Speaker Change: This is likely to mean that cyber gross margins will remain lower this coming quarter.
Speaker Change: For silence over the last couple of quarters, we focused on the segments, where our win rates are strongest and were pleased with the traction we're getting.
Speaker Change: These segments include operational technology, and small and medium size enterprises.
John Joseph Giamatteo: Further, in managed services, we see a large opportunity in a highly fragmented market that has no clear leader. To better address this market, this past quarter, we rebranded our guard solution as Silance MDR for clarity and launched an on-demand solution that allows customers to obtain support from our MDR SOC team for issues where they need some additional help. We see this as a bridge between software only and full 24 by 7 NDR coverage.
Speaker Change: Further in managed services, we see a large opportunity in a highly fragmented market that has no clear leader.
Speaker Change: To better address this market this past quarter, we rebranded our guard solution as silence M. D. R for clarity and launched an on demand solution that allows customers to obtain support from our N D. Our sock team for issues, where they need some additional help.
Speaker Change: We see this as a bridge between software only and full 24 by seven N V. Our coverage.
John Joseph Giamatteo: We're encouraged by the pipeline that these MDR initiatives are generating as well as the amount of new business already secured. Another focus area has been to ensure customers are using the latest versions of our Silance products. These are the most feature-rich and include capabilities, such as our new AI assistant. More than 80% of Silance customer endpoints now use version 3.0 or newer, and customer satisfaction is high.
Speaker Change: We're encouraged by the pipeline that these M D. Our initiatives are generating as well as the amount of new business already secured.
Speaker Change: Another focus area has been to ensure customers are using our latest versions of our silence product.
These are the most feature rich and included capabilities, such as our new AI assistant more than 80% of silence customer end points now use version three dot O are newer and customer satisfaction is high.
John Joseph Giamatteo: This was demonstrated by Cylance recently winning Gartner's Customer's Choice Award for Endpoint Protection Platforms for the second year in a row. The impact of this, and upselling customers to our MDR offering, has helped drive a third consecutive quarter of sequential DBNRR improvement for Silam. Our UEM product delivered better than expected renewal rates. Its high security offering, especially in on-premise environments, continues to resonate with our core customers. In the quarter, we secured a number of significant renewals in government and financial services, including a top five U.S. bank, Top 5 Canadian Bank CIBC, The U.S. Transportation Security Administration, or TSA, among others.
Speaker Change: This was demonstrated by silence recently, winning gardeners customers' choice award for endpoint protection platforms for the second year in a row.
Speaker Change: The impact of this and Upselling customers to our M. D. Our offering has helped drive a third consecutive quarter of sequential D. B N RR improvement for silence.
Speaker Change: Our U M product delivered better than expected renewal rates.
Speaker Change: It's high security offering, especially in on premise environments continues to resonate with our core customers.
Speaker Change: In the quarter, we secured a number of significant renewals in government and financial services, including a top five U S Bank.
Speaker Change: Top five Canadian Bank CIBC.
Speaker Change: The U S transportation security administration or TSA among others.
John Joseph Giamatteo: Finally, turning to Ad Hoc, our critical events management platform, customer retention rates remain very strong, particularly among our federal government and emergency services customers. On the product front, this month, we launched a new geofencing feature that enables more accurate tracking of key personnel in preparation for and during critical events. Feedback from leading emergency services agencies has been very positive.
Speaker Change: Finally, turning to AD hoc our critical event management platform.
Speaker Change: Customer retention rates remain very strong, particularly among our federal government and emergency services.
Speaker Change: On the product front. This month, we launched a new Geo fencing feature that enables more accurate tracking of key personnel in preparation for and during critical events.
Speaker Change: Feedback from leading emergent services and agencies has been very positive.
John Joseph Giamatteo: In addition to revenue, costs for the cybersecurity business came in better than planned, driven in part by initiatives to significantly streamline our public cloud costs. So moving on to the outlook for the cyber business, despite a challenging macro environment that continues to elongate sales cycles across the industry, we are reiterating our full year outlook. We continue to expect cybersecurity revenue for the full fiscal year to be in the range of $350 to $365 million.
In addition to revenue cost for cyber security business came in better than planned driven in part by initiatives to significantly streamline our public cloud costs.
Speaker Change: So moving on to the outlook for the cyber business. Despite a challenging macroeconomic environment that continues to elongated sales cycles across the industry. We are reiterating our full year outlook. We continue to expect cyber security revenue for the full fiscal year.
Speaker Change: To be in the range of $350 million to $365 million.
John Joseph Giamatteo: For the second fiscal quarter, we expect revenue to be in the range of $82 to $86 billion. Let me comment briefly on our licensing business. Revenue came in a little better than we expected, at $6 million. The gross margin was at 67%.
Speaker Change: For the second fiscal quarter, we expect revenue to be in the range of $82 million to $86 million.
Yes.
Speaker Change: Well, let me comment briefly on license our licensing business revenue came in a little better than we expected at 6 million gross margin was at 67%.
John Joseph Giamatteo: We understand from Maliki, the party that purchased our non-core patent portfolio, that they're making good progress in ramping up their efforts. And while we aren't expecting any further revenue from that arrangement this fiscal year, it does present a significant potential upside for future years. So before I turn the call over to Steve, let me provide a quick update on the efforts to separate and streamline our two core businesses. Significant progress was made this past quarter in separating and tailoring internal processes to fit the two businesses.
Speaker Change: We understand from a leaky the party that purchased our noncore patent portfolio that theyre, making good progress in ramping up their efforts.
Speaker Change: And while we aren't expecting any further revenue from that arrangement. This fiscal year. It does present, a significant potential upside for future years.
Speaker Change: So before I turn the call over to Steve Let me provide a quick update on the efforts to separate and streamline our two core businesses.
Speaker Change: Significant progress was made this past quarter in separating and tailoring internal processes to fit the two businesses.
John Joseph Giamatteo: This includes further delegating decision-making authority to the divisional management teams; work has begun on a number of IT systems projects that we expect to deliver both a more custom-fit product for each of the two businesses as well as drive significant cost reduction. On costs, non-GAAP OPEX this past quarter came in at $109 million, a sequential decrease of $4 million.
Speaker Change: This includes further delegating decision, making authority to the divisional management teams.
Speaker Change: Work has begun on a number of I T systems projects that we expect to deliver both a more custom fit product for each of the two businesses as well as drive significant cost reductions.
Speaker Change: On costs non-GAAP Opex. This past quarter came in at 109 million a sequential decrease of $4 million.
John Joseph Giamatteo: The $109 million was $21 million better than the $130 million baseline we gave you during the last earnings call, or $84 million better on an annualized basis. This demonstrates the significant impact of the actions that we've taken. All of this comes against the backdrop of improving fundamentals, as illustrated by improvements in cybersecurity, ARR, and DBNRR. However, we haven't stopped there. This past quarter, we took further actions that will, in the fullness of time, drive incremental annual cost savings of approximately $20 million.
Speaker Change: But $109 million was $21 million better than the 130 million baseline. We gave you during the last earnings call or 84 million better on an annualized basis.
This demonstrates the significant impact of the actions that we've taken.
Speaker Change: All of this comes against the backdrop of improving fundamentals as illustrated by improvements in cyber security a R. R and D. B N R. R.
However, we haven't stopped there.
Speaker Change: This past quarter, we took further actions that will in the fullness of time drive incremental annual cost savings of approximately $20 million.
John Joseph Giamatteo: The actions taken included reductions in back office headcount and facilities. The $20 million of additional cost reduction builds on the $50 million from Q3 of last year and $55 million from Q4, meaning a total of approximately $125 million to date. This is a significant achievement by the BlackBerry team, and I'm proud of how far we've come in such a short period of time. Given the progress that we've made and continue to make, we are reiterating our expectation of generating positive cash flow and adjusted EBITDA in our fourth fiscal quarter. So, let me now turn the call over to Steve, who will discuss our finances in more detail.
Speaker Change: The actions taken include reductions in back office head count and facilities.
Speaker Change: The 20 million of additional cost reduction builds on the $50 million from Q3 of last year and $55 million from Q4 <unk>.
Speaker Change: Meeting a total of approximately $125 million to date.
This is a significant achievement by the Blackberry team and I'm proud of how far we've come in such a short period of time.
Speaker Change: Given the progress that we've made and continue to make we are reiterating our expectation of generating positive cash flow and adjusted EBITDA in our fourth quarter fiscal our fourth fiscal quarter.
So let me now turn the call over to Steve who will discuss with you our financials in more detail Steve.
Steve Rai: Thank you, John, and good afternoon, everyone. As a reminder, unless otherwise noted, all numbers provided during my remarks, except for revenue, will be non-GAAP. Total company revenue was $144 million, which exceeded the upper end of our previously provided outlook range. As John mentioned, revenue was comprised of $53 million for IOT. $85 million for cybersecurity, and $6 million for licensing and others. Software products were approximately 85% of revenue, and Professional Services was the balance at approximately 15%. Of the software product component, approximately 80% was recurrence.
Steve Rai: Thank you John and good afternoon, everyone.
Steve: As a reminder, unless otherwise noted all numbers provided during my remarks, except for revenue will be non-GAAP.
Steve: Total company revenue was $144 million, which exceeded the upper end of our previously provided outlook range.
Steve: As Jon mentioned revenue was comprised of $53 million for Iot.
Steve: $85 million for cyber security and 6 million for licensing and other.
Steve: Software product was approximately 85% of revenue.
Steve: And professional services was the balance at approximately 15%.
Steve: Of the software product component approximately 80% was recurrence.
Steve Rai: We're pleased that such a meaningful portion of our business is repeatable and reliable. Total company gross margin was 67%. As John mentioned, we continue to make great progress on cost reduction. Operating expenses came in $4 million lower sequentially at $109 million. Research and Development was 28% of revenue for the quarter, Sales and Marketing 25%, and G&A 20%.
Steve: We're pleased that such a meaningful portion of our business is repeatable and reliable.
Steve: Total company gross margin was 67%.
Speaker Change: As John mentioned, we continue to make great progress on cost reductions.
John: Operating expenses came in 4 million lower sequentially at $109 million.
Speaker Change: Research and development was 28% of revenue for the quarter.
Speaker Change: Sales and marketing, 25% and G&A was 20%.
Steve Rai: Non-GAAP operating loss was $12 million, and Adjusted EBITDA meaningfully beat expectations at negative $7 million. We beat expectations for net cash used in operations at $15 million, won five, and free cash usage was 16 million, a one million sequential improvement compared to Q4. Given the timing of some larger customer payments, we do expect a sequential increase in operating cash usage in Q2, although still significantly better than the $56 million used in Q2 last year. For the second half, we expect operating cash flow to improve sequentially in Q3, before achieving positive operating cash flow in Q4, as John mentioned.
Speaker Change: Yeah.
Speaker Change: non-GAAP operating loss was $12 million.
Adjusted EBITDA meaningfully beat expectations at negative $7 million.
Speaker Change: We beat expectations for net cash used in operations at $15 million.
Speaker Change: One five.
Speaker Change: Free cash usage was $16 million.
Speaker Change: 1 million sequential improvement compared to Q4.
Speaker Change: Given timing of some larger customer payments, we do expect a sequential increase in operating cash usage in Q2.
Although it's still significantly better than the 56 million used in Q2 last year.
Speaker Change: For the second half, we expect operating cash flow to improve sequentially in Q3.
Speaker Change: Before achieving positive operating cash flow in Q4 as John mentioned.
Steve Rai: We expect adjusted EBITDA for Q2 to be in the range of negative $5 million to negative $15 million, with non-GAAP EPS of negative two cents to negative four cents. For the full fiscal year, we are reiterating our expectations. We expect adjusted EBITDA to be in the range of breakeven to positive $10 million, and Non-Gap EPS to be between negative three cents and negative seven cents. With that, I'll pass the call back to John.
Speaker Change: We expect adjusted EBITDA for Q2 to be in the range of negative 5 million to negative $15 million.
Speaker Change: And non-GAAP EPS of negative <unk> to negative four cents.
Speaker Change: For the full fiscal year, we are reiterating our expectations.
Speaker Change: We expect adjusted EBITDA to be in the range of breakeven to positive $10 million.
Speaker Change: non-GAAP EPS to be between negative three.
Speaker Change: Negative seven cents.
With that I'll pass the call back to John.
Steve Rai: Terrific. Thank you, Steve.
John: Terrific. Thank you Steve So why don't we go ahead and proceed now to Q&A. So Karl if you don't mind opening the lines. We can take some questions certainly and we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad. Please make sure. Your line is now.
Operator: Certainly, and we will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. Please make sure your line is unmuted.
John Joseph Giamatteo: So why don't we go ahead and proceed now to Q&A? So, Carl, if you don't mind opening the lines, we can take some questions.
John: Muted again press the Star then one to ask a question.
John: For just a moment to allow everyone the opportunity to signal for questions and we request that you. Please limit yourself to one question and one follow up.
Operator: Again, press star then 1 to ask a question. We'll pause for just a moment to allow everyone the opportunity to signal for questions, and we request that you please limit yourself to one question and one follow-up. And our first question today will come from Luke Junk with Baird. Please go ahead.
Speaker Change: And our first question today will come from Luke junk with Baird. Please go ahead.
Luke L. Junk: Good afternoon. Thanks for taking the question. John, I'm hoping on your turn you could just unpack what's driving the improvement that you're seeing in the IOT royalties. Is it some new launches coming online? Is it ramping up prior launches? And given what's driving it, just how sustainable would you think that improvement is?
Luke L. Junk: Good afternoon. Thanks for taking the question John and hope in the near term you could just unpack, what's driving the improvement that you're seeing in Iot royalties at the new launches coming online is it ramping of prior launches given what's driving it just how sustainable would you think that improvement that we're seeing in the royalties as right now thank you.
Speaker Change: No.
Speaker Change: Okay.
John Joseph Giamatteo: Yeah, no, that's really being driven by, you know, obviously the $815 million backlog and a number of major design wins that have some pent-up demand, but it's a bit of both. It's, you know, existing design wins, things that are rolling off the line, as well as some new implementations. So overall, we're really pleased to see kind of more broadly across both sides of the business that, you know, volume that picked up a little bit in the first quarter.
Speaker Change: Yeah No I.
It's really being.
Speaker Change: Being driven by obviously, the $815 million back over a number.
Speaker Change: A major design wins that have some pent up demand.
Speaker Change: But it's a bit of both it's a.
You know existing design wins things that are rolling off the line as well as some some new implementations so.
Speaker Change: Overall, we're really pleased to see kind of more broadly.
Across both sides of the business that.
Speaker Change: Volume it picked up a little bit in the first quarter.
Luke L. Junk: And then for my follow-up, maybe a bigger picture question, you know, there's been some investor concern emerging about auto software suppliers and compute and why they might not be supplanted by OEM partnerships, potentially, in the wake of VW and Rivian last night. I'd be curious to get your perspective on that. And especially, you know, this is pretty real-time, but I'd be maybe even more curious about just your insight from ongoing dialogue with your customers and what the OEMs you're engaged with are thinking. And
Speaker Change: And then for my follow up maybe a bigger picture question. You know there's been some investor concern emerging about auto software suppliers, and compute and whatnot being supplanted by only in partnerships potentially in the wake of VW and retina and last night, just be curious to get your perspective on that and especially you know this.
Speaker Change: Is pretty real time, but it would be maybe even more curious about just your insight from ongoing dialogue with your customers and what the Oems you're engaged with their thinking and thing. Thank you.
John Joseph Giamatteo: I think in a lot of ways, our customers kind of look to us as a trusted advisor who understands the software side of this business better than anyone. So we work really closely with them, we're definitely collaborating with them on future designs both from EV as well as internal combustion, but you know overall, we kind of feel like we're becoming an increasingly trusted advisor to them on these kinds of matters, and going deeper into their organization, we're providing a little bit more value around, you know, software-defined vehicle capabilities.
Speaker Change: Yeah, our I think in a lot of ways, our customers kind of look to us as a trusted.
Speaker Change: Advisor, who understands the software side of this business.
Speaker Change: You know better than anyone so we work really closely with them, where we're definitely are collaborating with them on you know our future designs, both from EV as well as an internal combustion but.
Speaker Change: Overall, we kind of feel like we're becoming an increasingly more trusted adviser to them on these kind of matters and going deeper into their organization, where for providing a little bit more value around software defined vehicle capabilities.
Unknown Executive: And I'll just probably add to that, Luke, if I may, that I don't think those recent announcements really change anything. The competitive moat around this QNX business continues to remain very deep. And to John's point, if anything, we're in a fairly strong position here where OEMs are coming to us and asking us to do more. So yeah, I don't see any significant headwinds as a result of announcements like last night.
Luke L. Junk: And I would just probably add to that Luke if I may, but I don't think but some.
Some of those regions announcements really change anything.
Luke L. Junk: The moats are competitive moats around this Q&A business continues to remain very deep.
John: I got to John's point, if anything we are in a fairly strong position here.
Speaker Change: Oems are coming to us and I'll turn it off to stay more so.
Speaker Change: I don't see any significant headwinds as a result of our announcement slide golf clubs.
Unknown Executive: That's just a couple of colors.
Speaker Change: That's a helpful color symptom.
Speaker Change: Okay.
Operator: And our next question will come from Paul Treiber with RBC Capital Markets. Please go ahead.
Speaker Change: And our next question will come from Paul Treiber with RBC capital markets. Please go ahead.
Paul Treiber: Thanks for taking the question. Just a comment on or question about cost reductions. It's good to see more progress, and I think you're up to $125 million. How do you think about the path or the opportunity to achieve the remaining $25 million to reach your target of $150 million?
Speaker Change: Thanks for taking the question just a comment in regards to our question in regards to the cost reductions. It's good to see more progress and I think youre right Europe to $125 million.
Speaker Change: How do we think about the path or the opportunity to achieve the remaining 25 million in two weeks you target them and they've got $150 million.
John Joseph Giamatteo: Yeah, thanks for the question, Paul. We feel really good about it. I think we've got a comprehensive program around it. We've obviously executed on the $125 million. We're taking further actions to simplify some of the more complex things. I think I mentioned before things like our IT systems that are kind of hardwired into both of the divisions, but as we go to the next level of unwinding some of that and building, you know, capabilities that are just right for the size of those businesses.
Paul Treiber: Yeah. Thanks for the question, Paul we feel really good about it I think.
Paul Treiber: We've got a comprehensive.
Paul Treiber: Program around it.
Speaker Change: Obviously, you executed on the $125 million, we're taking further actions to simplify some of the more complex things I think I'd mentioned before things like our it systems that are kind of hard wired into both of the divisions as we go to the next level.
Speaker Change: Unwinding some of that in building.
Speaker Change: The abilities that are just right for the size of those businesses. We are we see a good a good line of sight to getting to that.
John Joseph Giamatteo: We see a good line of sight to getting to that additional $25 million. So, just as you said $50 million in Q3, we did an additional $55 million in Q4. $20 million in Q1, and we feel really good about our line of sight to get to the rest.
Speaker Change: Additional 25 million so.
Speaker Change: Just as you said $50 million in Q3, we did an additional 55 in Q4 $20 million in Q1, and we feel really good about our line of sight to get to the west.
John Joseph Giamatteo: And then a follow-up on the IT systems, is that the bottleneck, or the constraint in terms of the separation of the business units at this point? And then once you get through that, will you be effectively ready to separate or split the two units?
Speaker Change: And then.
Speaker Change: Follow up on the I T system to see is that the the bottleneck or the constraint in terms of the separation of the business units at this point and then once you once you get through that will you be effectively ready to to separate us what are the two units.
John Joseph Giamatteo: Yeah, I think so. I think, you know, when you have systems like Microsoft or Salesforce.com or NetSuite from Oracle that permeate both parts of the businesses, unwinding, you know, we have existing agreements at the parent level, unwinding that, aligning them into, you know, the divisions, I think is the next step of really firmly separating the two. But that being said, I will tell you where we are now from where we were at the beginning of the year.
Speaker Change: Yeah, I think so I think you know like when you have systems like Microsoft or our Salesforce dot com or net suite from Oracle that permeates both parts of the businesses unwinding, Yeah, we have existing agreements at the parent level unwinding that allow.
Speaker Change: Many of them into.
Speaker Change: The owned.
Speaker Change: The divisions I think is the next step of really firmly separating the two but that being said I will tell you where we are now from where we were in the beginning of the year.
John Joseph Giamatteo: These are systems that kind of connect the two business units to one another because of the nature of how the parents, you know, licensed them over the years. But operationally, we've got their separate leadership teams with their separate governance structures. They're operating, I would tell you, faster from a decision-making perspective than we've ever seen them operate. And in my mind, that's the bigger lift and the bigger benefit is the fact that these teams can be much more agile and quicker to market opportunities than maybe we were when we were all one big kind of integrated BlackBerry.
Speaker Change: These are systems that kind of.
Speaker Change: Connect the two business units the one another because because of the nature of how the parents.
Speaker Change: In a licensed them over there over the years, but operationally.
Speaker Change: You've got to separate leadership teams, where they are separate governance structures. There are operating I would tell you you know faster from a decision making perspective than we've ever seen them operate and in my mind. That's the bigger you know honestly, that's the bigger lift in the bigger benefit is the fact that these.
Speaker Change: His teams can be.
Speaker Change: The much more agile and and and quicker to market opportunities than maybe we were when we were all one big kind of integrated Blackberry.
Paul Treiber: Thanks for taking the questions.
Speaker Change: Thanks for taking the questions.
Paul Treiber: Thanks, Paul.
Operator: And our next question will come from Todd Coupland with CIBC. Please go ahead.
Paul Treiber: Our next question will come from Todd Coupland with CIBC. Please go ahead.
Todd Adair Coupland: I'll continue along the lines of the split of the business. When would you expect to provide segmented results for the two units below the revenue line?
Todd Adair Coupland: We continue along the lines of the split of the business and when would you expect to provide segmented results for the two units below the revenue line.
John Joseph Giamatteo: Yeah, Todd, that's a great, great question. It's top of mind for us. You know, honestly, we've kind of got some pro forma things here in the room right now that we're working on, and we're getting them ready for prime Time and planning on introducing them to all of you at our analyst update in October.
Todd Adair Coupland: Todd that's great Great question top of top of mind for us.
Todd Adair Coupland: In all honestly, we've kind of got some pro forma things here in the in the in the room right. Now we're working on are and where we're getting them ready for prime time and planning on introducing it.
Speaker Change: To all of you at our analyst update in October.
John Joseph Giamatteo: Okay, right. So you'll break it out. I guess with the summer quarter, the summer quarter's results, and you'll present that at analyst day.
Speaker Change: Okay great.
Speaker Change: So.
Speaker Change: Youll break it out.
Speaker Change: Yes, with the summer corner summer quarters results and you'll present that at the analyst day.
Operator: So we'll have an earnings call, Todd.
Speaker Change: So we'll have an earnings call dogs as normal so that will be at the end of September and then just a couple of weeks later.
Speaker Change: Then from Brahma the rock Jones, our prepared remarks, actually which says it will.
Speaker Change: Have an investor day.
October 16th October 16.
Operator: October 16th. And October 16th is when you plan to unveil the segmented reporting below the revenue line. Correct. Absolutely.
Speaker Change: Over 16, because when you plan to unveil.
Speaker Change: The segmented.
Speaker Change: Reporting below that below the revenue line.
Correct.
Speaker Change: Okay.
Speaker Change: My second question is I didn't quite understand.
Speaker Change: The headwind comment and Iot So I got the the upside from royalties in the quarter. But then you went on to talk about mix of Drivetrains and that's a headwind to the business and so I just wanted to make sure I understood.
Speaker Change: What's causing that and is that going to cause the iot growth rate to settle below the 18% as we go through the year just just talk through that again. Please thank you.
Unknown Executive: Yeah, of course, so I'll take this one. So the point there, Todd, was that we're largely agnostic about the drivetrain and there's obviously a lot of talk at this point around some softness on the EV side of the house. The point there was that if we see some softness in EV, that almost certainly means there's going to be strength in hybrid or ICE engines. So we don't actually see that as necessarily a headwind due to the diversification that QNX enjoys.
Speaker Change: So.
Speaker Change: Titus from say the point that I told was that we're agnostic largely to the drivetrain and there's obviously a lot of talk at this point around some softness on the EV side of the house.
Speaker Change: Point there was if we if we see some softness in EBITDA or my suddenly means is going to be strengthen hybrid all used engines. So we don't actually see that as necessarily a headwind due to the.
Diversification that <unk> enjoys.
Unknown Executive: We did reiterate, however, that the programs that we've been talking about that have been delayed, well, we still see that. We'd say there are some signs, some encouraging signs that things are getting better on that front, but it's still very much a headwind. So when we reiterated our four-year outlook, you need to keep those headwinds in mind when thinking about it. Does that help?
Speaker Change: We did reiterate however, though that the programs that we've been talking about that.
Speaker Change: In July as well, we still see that.
Speaker Change: We can say.
Speaker Change: There are some signs some encouraging signs that things are getting better from but it's still very much a headwind. So when we we reiterated our full year outlook you need to keep those headwinds in mind when thinking about it.
Unknown Executive: Yeah, that does help and those headwinds for the programs that that's not new, that's been going on for a little while, right? Yeah, we've been talking about that for several quarters now, and what breaks the logjam on that with what you talked through.
Speaker Change: Yeah that does help in those headwinds for the programs that that's not new that's been going on for a little while right. Yeah, we've been talking about that for several quarters now.
Speaker Change: And what breaks the logjam on that with what you see today, just just talked through how youre thinking about that thanks very much.
Unknown Executive: Well, it's going to vary by OEM. Ultimately, we've described it as really having to go through a huge transformation from being traditional automakers turning to be software developers, and what they've had to do is ramp up their software development teams, Todd, and that comes with huge challenges, and it's not an easy task. So, yeah, we've been talking about this for a while. Ultimately, this is not going to be a problem forever, the OEMs will get their hands around it, and they will make progress, and I think we're seeing some early signs that that's happening.
Speaker Change: It's going to vary by OEM ultimately.
Speaker Change: We've described it is ready to having to go through a huge transformation from being traditional also make because it's starting to be software developers.
Speaker Change: And what they've tried to do is ramp up software development to install them on that.
Speaker Change: It comes with huge challenges some as well an easy task so yeah.
Speaker Change: Yeah, we've been talking about this for some time I think.
Speaker Change: Ultimately this is not going to be a problem forever.
Speaker Change: But we'll get our hands around it and it will make progress.
Speaker Change: I think we're seeing some early signs of that happening on all sides, we're definitely committed to helping all of our customers.
Unknown Executive: On our side, we're definitely committed to helping all our customers, and the demand for our professional services is possibly an indicator of that, and we're helping to fire that engine by adding some additional headcount into that side of the business. So, we're doing everything we can to help lighten the load for OEMs, but ultimately, they're going to get there in the end regardless. So, stay tuned on that one.
Speaker Change: The demand from professional services is possibly an indicator.
Speaker Change: We're helping to fire that engine by adding some additional head count and so that side of the business. So.
Speaker Change: So we're doing everything we can to help lighten the load for Oems that ultimately, they're going to get the NDA and regardless so.
Speaker Change: Stay tuned on that one.
Operator: I appreciate it. Thank you.
Speaker Change: Great appreciate it thank you.
Operator: And once again, if you would like to ask a question, please press star and then 1. Our next question will come from Kingsley Crane with Canaccord Genuity. Please go ahead.
Speaker Change: And once again, if you would like to ask a question. Please press Star then one on.
Speaker Change: Our next question will come from Kingsley Crane with Canaccord Genuity. Please go ahead.
Kingsley Crane: Hi, thanks for taking the question. So between Silance MDR and MDR on demand, can you talk more about the expansion opportunities you have with respect to endpoints outside of bringing more endpoints under coverage?
Kingsley Crane: Hi, Thanks for taking the question so between silence MBR in India are on demand can you talk more about the expansion opportunities you have with respect to endpoint outside of bringing more endpoints under coverage.
John Joseph Giamatteo: Well, I think obviously a multifaceted approach that we, from the growth of the Silance business, certainly we've got a large installed base of Silance customers, many of them which are just licensing today, you know, our software directly and upselling and upgrading them to MDR services is one kind of track that we're running hard on. You know, another thing we do is, you know, focusing on particular verticals where we tend to perform, you know, exceptionally well. I think on OT, I think on healthcare customers. Customers that have, you know, old operating systems that have a variety of different devices, healthcare devices that need to be secured with a small agent and the AI capabilities that we provide is another, you know, very, very focused target for us to do there.
Kingsley Crane: Well.
Speaker Change: I think yes, obviously, a multifaceted approach that we are.
Speaker Change: From the growth of the silence business certainly we've got a large installed base of <unk> customers that many of them, which are just licensing today, our software directly and upselling and upgrading them to MTR services is.
Speaker Change: There's one kind of tracks that we're that we're running hard on.
Speaker Change: Another is you know focusing on particular.
Speaker Change: Verticals, where we tend to perform exceptionally.
Speaker Change: Well I think on <unk> I think on health care customer.
Speaker Change: Customers that have all operating.
Speaker Change: Operating systems that have a.
Speaker Change: A variety of different devices health care devices that need to be secured with a small agent and the AI capabilities that we provide is a is another you know very very focused targets for us to do there and then third I would say is you know kind of that mid and small law.
John Joseph Giamatteo: And then third, I would say is, you know, kind of the mid and small level market. These are smaller companies that are, you know, say, 2000 seats or smaller. They generally don't have, you know, the cyber talent, or the cyber resources to manage those environments.
Speaker Change: Market. These are smaller companies that are say 2000 seats are smaller.
Speaker Change: They generally don't have you know.
Speaker Change: The cyber talent the cyber resources.
Speaker Change: To manage those environments. So we see that as a huge opportunity, it's a growing market and Dr. As a growing space because they're looking for vendors like us to provide more of that capability. So those are probably kings of the three main tracks that we're.
Kingsley Crane: So we see that as a huge opportunity. It's a growing market. MDR is a growing space because they're looking for vendors like us to provide more of that capability. So those are probably the three main areas that we're focused on to, you know, keep that silenced business, the renewal rates, and the AIR moving in the right direction.
Speaker Change: We're focused on two key.
Speaker Change: Hit that.
Speaker Change: That silence business the renewal rates in the they are moving in the right direction.
John Joseph Giamatteo: Right, okay, that's really helpful. And so on the cyber business as a whole, you've done a remarkable job rationalizing costs. Can you talk about what product initiatives you are excited about investing in and how you expect those to drive growth?
Speaker Change: Right. Okay, that's really helpful and so on the cyber business as a whole you've done a remarkable job rationalizing costs can you talk about what product initiatives. You are excited about investing in and how you expect those to drive growth.
John Joseph Giamatteo: Yeah, I mean, I would say, you know, everything we just talked about in silence has been an investment over the course of the past few years. But one thing, you know, I would call out that maybe we don't talk enough about is our SecchiSmart, you know, our SecchiSuite portfolio, which has been really working well for us on that. We pivoted that business from a very hardware-centric type of approach to a more software token-based approach, which we found opens up a tremendous amount of new use cases and a tremendous amount of new opportunities.
Speaker Change: Yeah, I mean, I would tell you everything we just talked about within silence has been investments over the course of the past few years, but one thing I you know I I would call out that maybe we don't talk enough about is our second smart.
Speaker Change: Our second suite portfolio, which.
Speaker Change: We've been really working well for us on that is we pivoted that business from a very hardware centric type of approach to a more software a token based approach, which we found us open up a tremendous amount of new use cases, and a tremendous amount of new opportunities.
John Joseph Giamatteo: So this is a business, and when you look back a few years, it was primarily coming out of this special relationship we had with the German government. When you look at the overall diversification of that business globally with some of our deployments in Canada and the US and Malaysia and Bangladesh and others that we've got some interesting pipeline, that's an investment that we made in the SecuSuite platform, you know, to really address a completely different segment of the market. That'd be another one; I would say above and beyond that.
Speaker Change: So you know this was a business when you look back a few years is primarily coming out of this special relationship we had with the German government. When you look at the overall diversification of that business globally with.
Speaker Change: Some of our deployments in Canada, and the U S and Malaysia.
Speaker Change: Bangladesh and others that we've got some some interesting pipeline.
Speaker Change: That's an investment that we made in the <unk> suite.
Speaker Change: Platform to really address a completely different segment of the market. That's a that that'd be another one I would say above and beyond that and then we're very excited you know AD hoc we were leasing our geo fencing capability, that's a unique capability that.
John Joseph Giamatteo: And then, you know, we're very excited about, ad hoc, you know, releasing our geofencing capability. It's a unique capability that differentiates our solution from other solutions that are out there in the market. And we've seen a tremendous amount of demand from governments, police organizations, and emergency services. So, you know, it's probably something we haven't talked enough about, but the investments we've made in AdHoc and in SecchiSmart have driven growth and driven some nice pipeline for us.
Kingsley Crane: Thank you. I appreciate the time. It's great to see the progress.
Speaker Change: Differentiates our solution from other solutions that are out there in the market and we've seen a tremendous amount of demand and governments police organizations.
Speaker Change: Emergency services.
Speaker Change: Yeah, it's probably something we haven't talked enough about but investments we've made in our AD hoc and in secchi smart that have driven growth and driven some nice pipeline for us.
Speaker Change: Thank you appreciate the time, great to see the progress.
Speaker Change: Yeah.
Operator: And this will conclude our question and answer session. I'd like to turn the conference back over to John Giamatteo, CEO of BlackBerry, for any closing remarks. Terrific. Thank you.
John: And this will conclude our question and answer session I would like to turn the conference back over to John do you have out there for CEO for Blackberry for any closing remarks terrific. Thank you Carl.
John Joseph Giamatteo: Terrific. Thank you, Carl.
Speaker Change: Let me just quickly one more time summarize the quarter.
John Joseph Giamatteo: So let me just quickly, one more time, summarize the quarter. We still have a lot of work to do. We know that, but we do believe our strategy is starting to deliver results. We have made significant progress in separating our IOT and cyber business and towards profitability. Cash usage in the quarter was better than expected, and we improved both adjusted EBITDA and non-GAAP EPS, and revenue for both IOT and cyber beat expectations. IoT had a number of design wins in the quarter, including SDP 8.0. And we saw further small but important improvements in our key metrics, like cyber ARR and DBNRR.
John: We still have a lot of work to do we know that but we do believe our our strategy is starting to deliver results. We made significant progress in separating our Iot and cyber business and towards profitability cash usage in the quarter was better than expected and we.
John: Improved both adjusted EBITDA and non-GAAP EPS.
John: Our revenue for both Iot and cyber beat expectations.
John: Iot had a number of design wins in the quarter, including S. Tpa Dot O and we further and we saw further small but important improvements in our key metrics like cyber.
John: R and D B N R R.
John Joseph Giamatteo: So before we end the call, I guess we've kind of preempted this in one of the previous questions. But you know, we do want to let you know that we're excited to be hosting an investor day at the New York Stock Exchange on October 16, where during this event, we'll perform a deep dive on the products, the markets, some of the financial profiles that we talked about before, both divisions, and I'm sure you'll find it valuable. The event will be hybrid, with the sessions being live streamed on the day. So thanks again for joining us today. We'll look forward to seeing you next time. This concludes today's call.
John: So before we end the call I guess, we've kind of preempted. This in one of the previous questions but.
John: You know, we do want to let you know that we're excited to be hosting an investor day at the New York Stock Exchange on October 16th.
John: During this event, we will perform a deep dive on the products the markets some of the financial profiles that we've talked about before.
John: Both divisions and I'm sure, you're all going to find it valuable.
Unknown Executive: The event will be hybrid, with the sessions being live streamed on the day. So thanks again for joining us today.
Speaker Change: The event will be hybrid with recessions being live streamed on the deck.
Speaker Change: So thanks again for joining us today, and we look forward to seeing you next time.
Unknown Executive: We'll look forward to seeing you next time.
Unknown Executive: This concludes today's call.
Operator: This concludes today's call. Thank you for your participation, and you may now disconnect.
Speaker Change: This concludes today's call. Thank you for your participation and you may now disconnect.
unknown: ?? ?? ?? ?? ?? ?? ??
Unknown Executive: Thank you for your participation, and you may now disconnect.
Speaker Change: [music].