Blackberry (BB) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase summary

Leadership and organizational focus

• New CEO and CFO appointed, emphasizing leadership stability and transformation.

• Company restructured into two autonomous business units: IoT (QNX) and Cybersecurity.

• Divisional leadership teams established with dedicated governance and IT systems.

• Clear focus on IoT and cybersecurity, discontinuing non-core initiatives.

• $125 million in costs removed over nine months, supporting profitability and cash flow goals.

IoT and QNX business performance

• QNX powers over 235 million vehicles globally, with a growing royalty backlog now at $815 million.

• QNX business model features long-term revenue streams, with design wins generating revenue for up to 10 years.

• Backlog has grown about 20% annually, indicating strong future revenue potential.

• New products like SDP 8.0, QNX Sound, and QNX in the Cloud are expanding the addressable market and increasing ASP per vehicle.

• Expansion opportunities identified in medical devices and industrial automation as these sectors adopt advanced software.

Cybersecurity business and product evolution

• Cybersecurity division segmented into secure communications (UEM, AtHoc, Secusmart) and AI-driven endpoint security (Cylance).

• Secusmart transitioned from hardware-based to software-based encryption, broadening its market beyond military to enterprise.

• UEM remains strong in government and financial sectors, with a focus on markets requiring on-premise data sovereignty.

• Cylance expanded from AI-based prevention to include EDR, MDR, and XDR services, addressing evolving customer needs.

• Recent global security events have increased customer interest in vendor diversification and secure endpoint solutions.