BLACKBERRY Ltd - FORM 8-K - EX-99.2 - June 24, 2021

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EX-99.1 - EX-99.1 - BLACKBERRY Ltdq1fy22ex-991.htm
8-K - 8-K - BLACKBERRY Ltdbbry-20210624.htm

Exhibit 99.2
BlackBerry Investor Relations Income Statement Summary
GAAP Income Statement
(Three Months Ended)		Q1 FY21Q2 FY21Q3 FY21Q4 FY21FY21Q1 FY22
Cyber Security$119 $120 $130 $122 $491 $107 
IoT29 31 32 38 130 43 
Software and Services148 151 162 160 621 150 
Licensing and Other58 108 56 50 272 24 
Revenue206 259 218 210 893 174 
Cost of sales63 60 69 58 250 60 
Gross margin143 199 149 152 643 114 
Operating expenses
Research and development57 57 53 48 215 57 
Selling, marketing and administration90 79 83 92 344 73 
Amortization46 46 45 45 182 46 
Impairment of long-lived assets— 21 — 22 43 — 
Impairment of goodwill594 — — — 594 — 
Debentures fair value adjustment1 18 95 258 372 (4)
Total operating expenses788 221 276 465 1,750 172 
Operating loss(645)(22)(127)(313)(1,107)(58)
Investment loss, net— (5)(1)— (6)(2)
Loss before income taxes(645)(27)(128)(313)(1,113)(60)
Provision for (recovery of) income taxes(9)(4)2 2 (9)2 
Net loss$(636)$(23)$(130)$(315)$(1,104)$(62)
Loss per share
Basic loss per share $(1.14)$(0.04)$(0.23)$(0.56)$(1.97)$(0.11)
Diluted loss per share $(1.14)$(0.04)$(0.23)$(0.56)$(1.97)$(0.11)
Weighted-average number of common shares outstanding (000s)
Basic557,839558,882562,443566,089561,305567,358
Diluted557,839558.882562,443566,089561,305567,358
Segment Gross Margin (Three Months Ended)Q1 FY21Q2 FY21Q3 FY21Q4 FY21FY21Q1 FY22
Cyber Security
Segment revenue$119 $120 $130 $122 $491 $107 
Segment cost of sales 47 46 53 46 192 46 
Segment gross margin72 74 77 76 299 61 
Segment gross margin %61 %62 %59 %62 %61 %57 %
IoT
Segment revenue29 31 32 38 130 43 
Segment cost of sales6 6 6 5 23 7 
Segment gross margin23 25 26 33 107 36 
Segment gross margin %79 %81 %81 %87 %82 %84 %
Licensing and Other
Segment revenue58 108 56 50 272 24 
Segment cost of sales8 7 9 6 30 6 
Segment gross margin50 101 47 44 242 18 
Segment gross margin %86 %94 %84 %88 %89 %75 %
Total Segment Gross Margin145 200 150 153 648 115 
Adjustment to cost of sales(2)(1)(1)(1)(5)(1)
Total Gross Margin$143 $199 $149 $152 $643 $114 
Key Metrics (Three Months Ended)Q1 FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22
Annual Recurring Revenue
Cyber Security$370 $367 $365 $369 $364 
IoT$103 $92 $88 $84 $86 
Dollar-Based Net Retention Rate
Cyber Security101 %100 %95 %95 %94 %
QNX Royalty Revenue Backlog$450 $490 


Non-GAAP Adjustments (Three Months Ended, Pre-Tax and After Tax)Q1 FY21Q2 FY21Q3 FY21Q4 FY21FY21Q1 FY22
Debentures fair value adjustment1 18 95 258 372 (4)
Restructuring charges1 1 — — 2 — 
Stock compensation expense14 9 12 17 52 7 
Acquired intangibles amortization33 32 32 32 129 32 
Goodwill impairment charge594 — — — 594 — 
LLA impairment charge — 21 — 22 43 — 
Total Non-GAAP Adjustments$643 $81 $139 $329 $1,192 $35 
Adjusted Gross MarginQ1 FY21Q2 FY21Q3 FY21Q4 FY21FY21Q1 FY22
GAAP revenue$206 $259 $218 $210 $893 $174 
Total cost of sales63 60 69 58 250 60 
Non-GAAP adjustments to cost of sales(2)(1)(1)(1)(5)(1)
Adjusted Gross Margin$145 $200 $150 $153 $648 $115 
Adjusted Gross Margin %70 %77 %69 %73 %73 %66 %
Adjusted EBITDAQ1 FY21Q2 FY21Q3 FY21Q4 FY21FY21Q1 FY22
GAAP operating loss$(645)$(22)$(127)$(313)$(1,107)$(58)
Non-GAAP adjustments to operating loss643 81 139 329 1,192 35 
Adjusted operating income (loss)(2)59 12 16 85 (23)
Amortization50 50 49 49 198 49 
Acquired intangibles amortization(33)(32)(32)(32)(129)(32)
Adjusted EBITDA$15 $77 $29 $33 $154 $(6)
Reconciliation from GAAP Net Loss to Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per ShareQ1 FY21Q2 FY21Q3 FY21Q4 FY21FY21Q1 FY22
GAAP net loss$(636)$(23)$(130)$(315)$(1,104)$(62)
Total Non-GAAP adjustments (three months ended, after-tax)643 81 139 329 1,192 35 
Adjusted Net Income (Loss)$7 $58 $9 $14 $88 $(27)
Adjusted Earnings (Loss) per Share$0.01 $0.10 $0.02 $0.02 $0.16 $(0.05)
Shares outstanding for adjusted earnings (loss) per share reconciliation557,839558,882562,443566,089561,305567,358
Adjusted income (loss) before income taxes, adjusted net income (loss), adjusted gross margin, adjusted EBITDA and adjusted earnings (loss) per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company’s filings on SEDAR and EDGAR. The Company makes no commitment to update the information above subsequently.

Key metrics such as annual recurring revenue (“ARR”), dollar-based net retention rate (“DBNRR”), and QNX Royalty Revenue Backlog do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies. The Company regularly monitors a number of financial and operating metrics, including key metrics, in order to measure the Company’s current performance and estimate future performance. In the first quarter of fiscal 2022, the Company discontinued its use of software deferred revenue acquired in its key metrics as the Company no longer reports non-GAAP revenue. For purposes of comparability, the Company’s key metrics for prior year have been updated to conform to the current year’s presentation.



BlackBerry Investor Relations Pre-Tax Restructuring Details
Q1 FY21Q2 FY21Q3 FY21Q4 FY21FY21 Q1 FY22
Cost of sales$— $— $— $— $— $— 
Selling, marketing and administration1 1 — — 2 — 
Total restructuring charges$1 $1 $— $— $2 $— 
BlackBerry Investor Relations Amortization of Intangibles and Property, Plant and Equipment Details
Q1 FY21Q2 FY21Q3 FY21Q4 FY21FY21Q1 FY22
Cost of sales amortization
Property, plant and equipment$1 $1 $1 $1 $4 $1 
Intangible assets3 3 3 3 12 2 
Total in cost of sales4 4 4 4 16 3 
Operating expenses amortization
Property, plant and equipment4 5 4 4 17 3 
Intangible assets42 41 41 41 165 43 
Total in operating expenses amortization46 46 45 45 182 46 
Total amortization
Property, plant and equipment5 6 5 5 21 4 
Intangible assets45 44 44 44 177 45 
Total amortization$50 $50 $49 $49 $198 $49 
The information above is supplied to provide meaningful supplemental information regarding the Company’s operating results because such information excludes amounts that are not necessarily related to its operating results. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company’s filings on SEDAR and EDGAR. The Company makes no commitment to update the information above subsequently.


BLACKBERRY Ltd Reports