📋 Tender Overview
BlackBerry Limited provided its long-term financial targets in connection with its annual analyst summit event.The Company is targetingAn 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.IoTIoT 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.CybersecurityThe 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.comInvestors website here.A replay of the financial session will also be available on the BlackBerry.comInvestors 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 companys results of operations in a manner that allows for a more complete understanding of the underlying trends in the companys 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 companys annual report on Form 10-K which is available on the EDGAR SEDAR and BlackBerry.com websites.
