‌$BlackBerry(BB)$‌22 Dec 2021 (Fiscal Year 2022 3rd Quarter ER)

John Chen:

Thank you, Tim. Good afternoon, everybody. Thanks for joining the call today.

I’m pleased to report that this quarter we delivered solid sequential billings and revenue growth in both our IoT and cyber business unit, and at these expectations. I’m also pleased that despite on our ongoing investment to grow the top line, EPS came in much better than expected.

Let me start my review with the IoT business unit. Revenue was $43 million, representing a 34% year-over-year growth, although noting that last year was heavily impacted by the pandemic. Gross margin was 81% and IoT ARR increased to $91 million. This is now the third consecutive quarter in which ARR has increased.

This was a very positive quarter for QNX, driven by continued strength and design wins activities. We achieved record quarterly revenue from development seats license and as well as associated professional services. In fact, demand is so strong right now that we’re expanding our professional services team by hiring additional heads into QNX. In addition to the near-term revenue benefit, these strong design wins serves as a positive leading indicator of the longer term health of the QNX business overall. Once completed, obviously, these designs will move into production and generate royalty revenue in future quarters.