Blackberry (BB) Canaccord Genuity's 46th Annual Growth Conference summary

Business transformation and growth

• Achieved 26% Q1 growth, first cash-positive fiscal Q1 in nine years, and raised full-year guidance, marking a shift from turnaround to profitable growth.

• Focused on mission-critical Secure Comms and QNX, divesting non-core activities to drive sustainable execution.

• Margin expansion and cash generation have improved, with fundamentals prioritized over stock price fluctuations.

• Employee engagement is at an all-time high, contributing to the successful turnaround.

QNX platform and backlog dynamics

• QNX royalty backlog is nearly $1 billion, with low churn and strong sequential growth expected over the next four years.

• More than half of the current backlog is projected to convert to revenue within four years, with ongoing additions from new design wins.

• Record development license sales signal robust future growth, as these are leading indicators for future royalty streams.

• SDP 8.0, the latest QNX version, offers high-performance compute, real-time determinism, safety certifications, and backward compatibility, driving customer adoption.

Alloy Kore and market expansion

• Alloy Kore represents a significant future growth opportunity, with no current backlog contribution but a strong pipeline.

• The platform simplifies integration for customers, leveraging partnerships like Vector for middleware, and is expected to accelerate backlog conversion once wins are secured.

• Alloy Kore revenue will first appear in backlog before impacting P&L, with progress tracked by surpassing the $1 billion backlog milestone.