Blackberry (NYSE:BB) FY Conference Transcript

Summary of Blackberry (NYSE: BB) FY Conference Call - November 19, 2025 Company Overview - Company: Blackberry - Focus: Transitioned to a software company with a strong position in foundational software for automotive applications, particularly through its QNX platform [2][3] Key Industry Insights - Automotive Software Market: Blackberry's QNX powers over 255 million vehicles globally, focusing on safety-critical and reliable software for automotive systems [2][3] - Market Growth: The addressable market for Blackberry is expected to triple from 25% to 75% within five years, indicating significant growth potential even if vehicle production declines [17][18] Financial Highlights - Revenue Backlog: Blackberry has an estimated future royalty backlog of $865 million, growing at a CAGR of over 20%, which is expected to lead to an inflection point in revenue [3][17] - Profitability: The company achieved a "Rule of 40" in the last quarter, indicating a strong balance between growth and profitability [4] Product and Technology Developments - QNX 8 Release: The latest product, QNX 8, emphasizes performance, scalability, and real-time capabilities, crucial for the increasing complexity of automotive systems [7][8] - Digital Cockpit Trend: There is a shift towards consolidating multiple systems in vehicles into a single digital cockpit, enhancing performance and safety [9][10] - Safety and Security: QNX software is certified to multiple functional safety and security standards, essential for connected automotive systems [11][13] Strategic Partnerships and Ecosystem - Collaboration with OEMs and Tier Ones: Blackberry is working closely with both OEMs and tier one suppliers, adapting to the changing landscape where OEMs are taking more ownership of software development [34][35] - Ecosystem Development: The company is focused on building a talent pool through initiatives like QNX Everywhere, which provides free access to their software for educational purposes [51][52] Challenges and Market Dynamics - Integration Complexity: The transition to centralized computing in vehicles presents significant integration challenges, which have led to varying levels of success among automakers [48][49] - Competitive Landscape: While Tesla is recognized for its software advancements, established OEMs are also making significant strides in software development [56][57] Future Outlook - Software-Defined Vehicles (SDV): The industry is moving towards SDVs, with Blackberry positioned to play a critical role in providing foundational software that supports complex automotive systems [50] - Partnerships as a Key Strategy: The future success of Blackberry will depend on forming strategic partnerships to address industry challenges and enhance software integration [50][51] Conclusion Blackberry is strategically positioned in the automotive software market with a strong backlog and growth potential. The company is focused on enhancing its product offerings while navigating the complexities of software integration in modern vehicles. The emphasis on partnerships and ecosystem development will be crucial for future success in the evolving automotive landscape.