WATERLOO, ON, May 18, 2022
/CNW/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today provided
its long-term financial targets in connection with its annual
analyst summit event.
The company released the following guidance:
|
FY22
Actual
|
FY25
Target
|
FY27
Target
|
5-year
CAGR
|
|
$M
|
$M
|
$M
|
%
|
IoT*
|
178
|
307
|
443
|
20%
|
Cybersecurity
|
477
|
579
|
770
|
10%
|
|
|
|
|
|
Total
BlackBerry**
|
655
|
886
|
1,213
|
13%
|
|
|
|
|
|
* Excludes potential
revenue from BlackBerry IVY™
|
|
** Excludes revenue
from Licensing & Other for comparability
|
|
|
|
|
|
|
|
|
The Company is targeting:
- An average 100+ basis points increase in non-GAAP gross margin
per year to FY27.
- Non-GAAP operating margin of approximately 20% by FY27.
- Investing approximately 30% of revenue on Research &
Development in FY23.
- To be modestly non-GAAP EPS and cashflow negative in FY23 due
to investment plans.
- To be approaching breakeven non-GAAP EPS and cashflow in
FY24.
- To generate positive non-GAAP EPS and cashflow beginning in
FY25.
IoT:
- IoT Serviceable Addressable Market (SAM) is expected to grow at
approximately 8-12% per year from FY23 to FY26.
- Revenue growth for the IoT business unit is expected to exceed
the market growth rate resulting in an increase in market share
above the current level of 26% in core automotive domains.
- Revenue from production-based royalties is expected to grow
faster than revenue from the pre-production design phase,
increasing the portion of total revenue from royalties.
- The SAM for BlackBerry IVY is expected to be approximately
$800 million in FY25.
- BlackBerry is targeting its first IVY design wins in FY23.
Cybersecurity:
- The SAMs for endpoint security and managed cybersecurity
services are expected to grow at 15% and 14%, respectively, per
year to FY27.
- Revenue for the Cybersecurity business unit, excluding UEM, is
expected to grow with a 5-year CAGR of approximately 16% to
FY27.
- Churn in the UEM customer base is expected to negatively impact
revenue and Annual Recurring Revenue (ARR) in FY23, but the impact
is expected to become less significant from FY24 onwards.
- Approximately 20% of the UEM customer base is in non-core
verticals, and those customers, representing annual revenue in the
region of $40 million, are exhibiting
higher than average churn.
- Approximately 64% of the Cylance customer base currently buys 1
Cylance module, and approximately 27% buy 2 modules. Management is
targeting selling additional modules to these customers.
The presentation used during the financial session of the
analyst summit, held at 4pm ET today,
can be found on the BlackBerry.com/Investors website here.
A replay of the financial session will also be available on the
BlackBerry.com/Investors website at approximately 8pm ET today.
This press release refers to certain non-GAAP measures. The
company believes that these non-GAAP measures, which may be defined
differently by other companies, explain the company's results of
operations in a manner that allows for a more complete
understanding of the underlying trends in the company's business.
However, these measures should not be viewed as a substitute for
those determined in accordance with GAAP. For a
reconciliation between the non-GAAP measures used in this
presentation and measures determined in accordance with GAAP, and
an explanation of why the company uses them, please see the
company's annual report on Form 10-K, which is available on the
EDGAR, SEDAR and BlackBerry.com websites.
For more information, follow @BlackBerry on Twitter, Facebook or
LinkedIn and view the company's corporate video which highlights
how BlackBerry addresses today's enterprise security
challenges.
About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides intelligent security
software and services to enterprises and governments around the
world. The company secures more than 500M endpoints including over 195M vehicles. Based in Waterloo, Ontario, the company leverages AI
and machine learning to deliver innovative solutions in the areas
of cybersecurity, safety and data privacy, and is a leader in the
areas of endpoint security, endpoint management, encryption, and
embedded systems. BlackBerry's vision is clear - to secure a
connected future you can trust.
BlackBerry. Intelligent Security. Everywhere.
For more information, visit BlackBerry.com and follow
@BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com
Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com
This news release contains forward-looking statements within the
meaning of certain securities laws, including under the U.S.
Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws, including statements regarding
BlackBerry's plans, strategies and objectives including its
expectations with respect to increasing and enhancing its product
and service offerings.
The words "expect", "anticipate", "estimate", "may", "will",
"should", "could", "intend", "believe", "target", "plan" and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are based on estimates and
assumptions made by BlackBerry in light of its experience and its
perception of historical trends, current conditions and expected
future developments, as well as other factors that BlackBerry
believes are appropriate in the circumstances, including but not
limited to, BlackBerry's expectations regarding its business,
strategy, opportunities and prospects, the launch of new products
and services, general economic conditions, the ongoing COVID-19
pandemic, the Russia Ukraine conflict, competition, and
BlackBerry's expectations regarding its financial
performance. Many factors could cause BlackBerry's actual
results, performance or achievements to differ materially from
those expressed or implied by the forward-looking statements,
including, without limitation, risks related to the following
factors: BlackBerry's ability to enhance, develop, introduce or
monetize products and services for the enterprise market in a
timely manner with competitive pricing, features and performance;
BlackBerry's ability to maintain or expand its customer base for
its software and services offerings to grow revenue or achieve
sustained profitability; the intense competition faced by
BlackBerry; the occurrence or perception of a breach of
BlackBerry's network cybersecurity measures, or an inappropriate
disclosure of confidential or personal information; the failure or
perceived failure of BlackBerry's solutions to detect or prevent
security vulnerabilities; BlackBerry's continuing ability to
attract new personnel, retain existing key personnel and manage its
staffing effectively; litigation against BlackBerry; BlackBerry's
dependence on its relationships with resellers and channel
partners; acquisitions, divestitures and other business
initiatives; the impact of the COVID-19 pandemic; network
disruptions or other business interruptions; BlackBerry's ability
to foster an ecosystem of third-party application developers;
BlackBerry's products and services being dependent upon
interoperability with rapidly changing systems provided by third
parties; BlackBerry's ability to obtain rights to use third-party
software and its use of open source software; failure to protect
BlackBerry's intellectual property and to earn expected revenues
from intellectual property rights; BlackBerry being found to have
infringed on the intellectual property rights of others; the
substantial asset risk faced by BlackBerry, including the potential
for charges related to its long-lived assets and goodwill;
BlackBerry's indebtedness; tax provision changes, the adoption of
new tax legislation or exposure to additional tax liabilities; the
use and management of user data and personal information;
government regulations applicable to BlackBerry's products and
services, including products containing encryption capabilities;
environmental, social and governance expectations and standards;
the failure of BlackBerry's suppliers, subcontractors, channel
partners and representatives to use acceptable ethical business
practices or comply with applicable laws; regulations regarding
health and safety, hazardous materials usage and conflict minerals;
foreign operations, including fluctuations in foreign currencies;
adverse economic, geopolitical and environmental conditions; the
fluctuation of BlackBerry's quarterly revenue and operating
results; the volatility of the market price of BlackBerry's common
shares; and rising inflation.
These risk factors and others relating to BlackBerry are
discussed in greater detail in BlackBerry's Annual Report on Form
10-K and the "Cautionary Note Regarding Forward-Looking Statements"
section of BlackBerry's MD&A (copies of which filings may be
obtained at www.sedar.com or www.sec.gov). All of these factors
should be considered carefully, and readers should not place undue
reliance on BlackBerry's forward-looking statements. Any statements
that are forward-looking statements are intended to enable
BlackBerry's shareholders to view the anticipated performance and
prospects of BlackBerry from management's perspective at the time
such statements are made, and they are subject to the risks that
are inherent in all forward-looking statements, as described above,
as well as difficulties in forecasting BlackBerry's financial
results and performance for future periods, particularly over
longer periods, given changes in technology and BlackBerry's
business strategy, evolving industry standards, intense competition
and short product life cycles that characterize the industries in
which BlackBerry operates. 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.
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SOURCE BlackBerry Limited