BlackBerry Limited's (BB) Management Presents at JPMorgan's 19th Annual Tech/Auto Forum Conference (Transcript)

Summary of BlackBerry Limited Conference Call Company Overview - BlackBerry has transitioned from a smartphone manufacturer to a security-focused enterprise software and services provider, with a strong emphasis on automotive software, particularly QNX [3][5] - The company’s software platform, Spark, is designed to connect, secure, and manage IoT endpoints, representing a $38 billion addressable market [5][6] Key Products and Technologies - QNX is a foundational product with a real-time operating system (Neutrino) and a hypervisor for CPU virtualization, both certified for safety-critical applications [7][8] - QNX is utilized in various sectors, including automotive, medical, and industrial, with applications in ADAS, digital cockpits, and critical infrastructure [8][9] Market Trends and Opportunities - The automotive industry is experiencing trends such as increased connectivity, electrification, and automation, leading to a growing role of software in vehicles [10][11] - By 2030, it is projected that 50% of a vehicle's Bill of Materials (BOM) will be electronics, with 30% being software [10] - The consolidation of electronic control units (ECUs) into domain controllers is a significant trend, creating more opportunities for QNX [11][12] BlackBerry IVY - BlackBerry IVY is a cloud-connected, cross-platform in-car software that allows automakers to access vehicle sensor data and create new insights [14][15] - The collaboration with AWS is a 50-50 joint development, emphasizing that IVY is OS and cloud agnostic [17][18] - IVY aims to create a standardized API for vehicle data access, facilitating an ecosystem for app developers and smart city applications [15][21] Competitive Landscape - QNX faces competition from traditional safety-based operating systems (e.g., Green Hills, Wind River) and various Linux distributions [36] - QNX's safety certification gives it an edge over Linux, which lacks the necessary safety certifications for automotive applications [37] Financial Outlook and Market Engagement - The first vehicles equipped with IVY are expected to launch in 2023, with a focus on generating recurring revenue through a subscription model [23] - BlackBerry is currently engaged with 19 of the top 25 EV producers, holding a 61% market share in the EV sector [34] - The company aims to leverage its existing customer base while also attracting new customers with its OS-independent and cloud-agnostic approach [28] Conclusion - BlackBerry is well-positioned to capitalize on macro trends in IoT and automotive software, with a strong focus on security and safety [41] - The company’s strategic partnerships and innovative products like IVY are expected to drive future growth and enhance its competitive position in the market [41]