EX-99.2 3 ex-992.htm EX-99.2 Document


Exhibit 99.2
BlackBerry Investor Relations Income Statement Summary
GAAP Income Statement
(Three Months Ended)		Q1 FY19Q2 FY19Q3 FY19Q4 FY19FY19Q1 FY20Q2 FY20Q3 FY20Q4 FY20FY20
IoT$125  $137  $148  $144  $554  $135  $133  $145  $127  $540  
BlackBerry Cylance1  —  1  3  5  33  35  40  43  151  
Licensing63  56  68  99  286  72  71  77  108  328  
Software and services189  193  217  246  845  240  239  262  278  1,019  
Other24  17  9  9  59  7  5  5  4  21  
Revenue213  210  226  255  904  247  244  267  282  1,040  
Cost of sales52  49  56  49  206  70  68  69  70  277  
Gross margin161  161  170  206  698  177  176  198  212  763  
Operating expenses
Research and development61  51  55  52  219  71  62  66  60  259  
Selling, marketing and administration100  106  93  110  409  121  130  129  113  493  
Amortization37  35  33  31  136  49  48  49  48  194  
Impairment of long-lived assets—  —  —  —  —  —  2  3  5  10  
Impairment of goodwill—  —  —  —  —  —  —  —  22  22  
Debentures fair value adjustment28  (70) (69) (6) (117) (28) (23) (20) 5  (66) 
Arbitration awards and settlements, net —  —  —  (9) (9) —  —  —  —  —  
Total operating expenses226  122  112  178  638  213  219  227  253  912  
Operating income (loss)(65) 39  58  28  60  (36) (43) (29) (41) (149) 
Investment income (loss), net6  5  2  4  17  3  —  (1) (1) 1  
Income (loss) before income taxes(59) 44  60  32  77  (33) (43) (30) (42) (148) 
Provision for (recovery of) income taxes1  1  1  (19) (16) 2  1  2  (1) 4  
Net income (loss)$(60) $43  $59  $51  $93  $(35) $(44) $(32) $(41) $(152) 
Earnings (loss) per share
Basic earnings (loss) per share $(0.11) $0.08  $0.11  $0.09  $0.17  $(0.06) $(0.08) $(0.06) $(0.07) $(0.27) 
Diluted earnings (loss) per share $(0.11) $(0.04) $(0.01) $0.08  $0.00  $(0.09) $(0.10) $(0.07) $(0.07) $(0.32) 
Weighted-average number of common shares outstanding (000s)
Basic536,964  537,299  540,406  547,272  540,477  551,845  552,343  554,585  556,668  553,861  
Diluted536,964  597,799  600,906  615,593  616,467  612,345  612,843  615,085  556.668  614,361  
Non-GAAP Adjustments (Three Months Ended, Pre-Tax and After Tax)Q1 FY19  Q2 FY19  Q3 FY19  Q4 FY19  FY19  Q1 FY20  Q2 FY20  Q3 FY20  Q4 FY20  FY20  
Debentures fair value adjustment28  (70) (69) (6) (117) (28) (23) (20) 5  (66) 
Restructuring charges4  3  1  3  11  1  1  7  1  10  
Software deferred revenue acquired4  4  2  2  12  20  17  13  9  59  
Software deferred commission acquired—  —  —  —  —  (5) (4) (4) (3) (16) 
Stock compensation expense18  21  15  14  68  17  14  15  17  63  
Acquired intangibles amortization22  22  20  18  82  35  36  35  35  141  
Business acquisition and integration1  (2) 5  8  12  1  2  —  1  4  
Arbitration awards and settlements, net —  —  —  (9) (9) —  —  —  —  —  
Goodwill impairment charge—  —  —  —  —  —  —  —  22  22  
LLA impairment charge —  —  —  —  —  —  2  3  5  10  
Acquisition valuation allowance—  —  —  (21) (21) (1) —  —  —  (1) 
Total Non-GAAP Adjustments$77  $(22) $(26) $9  $38  $40  $45  $49  $92  $226  
Non-GAAP Gross ProfitQ1 FY19  Q2 FY19  Q3 FY19  Q4 FY19  FY19  Q1 FY20  Q2 FY20  Q3 FY20  Q4 FY20  FY20  
GAAP revenue$213  $210  $226  $255  $904  $247  $244  $267  $282  $1,040  
Software deferred revenue acquired4  4  2  2  12  20  17  13  9  59  
Non-GAAP revenue217  214  228  257  916  267  261  280  291  1,099  
Total cost of sales52  49  56  49  206  70  68  69  70  277  
Non-GAAP adjustments to cost of sales(1) (2) (1) (2) (6) (2) (2) (4) (2) (10) 
Non-GAAP Gross Profit$166  $167  $173  $210  $716  $199  $195  $215  $223  $832  


Adjusted EBITDAQ1 FY19  Q2 FY19  Q3 FY19  Q4 FY19  FY19  Q1 FY20  Q2 FY20  Q3 FY20  Q4 FY20  FY20  
GAAP operating income (loss)$(65) $39  $58  $28  $60  $(36) $(43) $(29) $(41) $(149) 
Non-GAAP adjustments to operating income (loss)77  (22) (26) 30  59  41  45  49  92  227  
Non-GAAP operating income12  17  32  58  119  5  2  20  51  78  
Amortization41  38  37  33  149  53  54  53  52  212  
Acquired intangibles amortization(22) (22) (20) (18) (82) (35) (36) (35) (35) (141) 
Adjusted EBITDA$31  $33  $49  $73  $186  $23  $20  $38  $68  $149  
Reconciliation from GAAP Net Income (Loss) to Non-GAAP Net Income and Non-GAAP Earnings per ShareQ1 FY19  Q2 FY19  Q3 FY19  Q4 FY19  FY19  Q1 FY20  Q2 FY20  Q3 FY20  Q4 FY20  FY20  
GAAP net income (loss)$(60) $43  $59  $51  $93  $(35) $(44) $(32) $(41) $(152) 
Total Non-GAAP adjustments (three months ended, after-tax)77  (22) (26) 9  38  40  45  49  92  226  
Non-GAAP Net Income$17  $21  $33  $60  $131  $5  $1  $17  $51  $74  
Non-GAAP Earnings per Share$0.03  $0.04  $0.06  $0.11  $0.24  $0.01  $0.00  $0.03  $0.09  $0.13  
Shares outstanding for Non-GAAP earnings per share reconciliation536,964  537,299  540,406  547,272  540,477  551,845  552,343  554,585  556.668  553,861  

Non-GAAP revenue, non-GAAP income before income taxes, non-GAAP net income, non-GAAP gross profit, adjusted EBITDA and non-GAAP earnings 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.


BlackBerry Investor Relations Pre-Tax Restructuring Details
Q1 FY19Q2 FY19Q3 FY19Q4 FY19FY19Q1 FY20Q2 FY20Q3 FY20Q4 FY20FY20
Cost of sales$—  $1  $—  $1  $2  $1  $1  $3  $—  $5  
Research and development2  —  —  —  2  —  —  —  —  —  
Selling, marketing and administration2  2  1  2  7  —  —  4  1  5  
Total restructuring charges$4  $3  $1  $3  $11  $1  $1  $7  $1  $10  
BlackBerry Investor Relations Amortization of Intangibles and Property, Plant and Equipment Details
Q1 FY19Q2 FY19Q3 FY19Q4 FY19FY19Q1 FY20Q2 FY20Q3 FY20Q4 FY20FY20
Cost of sales amortization
Property, plant and equipment$2  $1  $2  $1  $6  $1  $2  $1  $2  $6  
Intangible assets2  2  2  1  7  3  4  3  2  12  
Total in cost of sales4  3  4  2  13  4  6  4  4  18  
Operating expenses amortization
Property, plant and equipment3  3  4  4  14  5  4  5  4  18  
Intangible assets34  32  29  27  122  44  44  44  44  176  
Total in operating expenses amortization37  35  33  31  136  49  48  49  48  194  
Total amortization
Property, plant and equipment5  4  6  5  20  6  6  6  6  24  
Intangible assets36  34  31  28  129  47  48  47  46  188  
Total amortization$41  $38  $37  $33  $149  $53  $54  $53  $52  $212  

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.