Hi, everyone. Thanks for joining again. Kingsley Crane, a technology analyst here at Canaccord. Thrilled to have the BlackBerry team with us here once again. We've got John Giamatteo, CEO, and Tim Foote, CFO. Thank you so much for being here. Thank you, Kingsley. Thanks, Kingsley. Maybe we'll start with you, John. You reported Q1 back in June, 26% growth, Rule of 40 business in both segments, your first cash positive fiscal Q1 in nine years, and you raised the full-year guide. You've described this as a transition from a turnaround to profitable growth. Just what's working now that maybe wasn't working two years ago? Yeah. When we sat here a couple of years ago, I think we were still on our journey, and part of that journey, I think, has been laser-like focus on two specific areas of the business. I think when we made our transition 10 years ago off of devices and into software and services, we dabbled in a lot of different things. We got into the endpoint security game with the Cylance acquisition, and I think narrowing our focus towards mission-critical Secure Comms on the Secure Comms side and really fueling the investment on all the growth opportunity that we see on the QNX side. I think that laser focus on those two things, sometimes you take all the oxygen out of the air when you have a big acquisition, and I think by divesting that and really honing our focus, our money, our resources onto those two parts of the business, I think that's helped us with sustainable execution and where we are today. When you look at how the stock is traded, it kind of oscillates between, well, in the past, it's been more of this value, sum-of-the-parts debate. Then it becomes this much broader growth narrative. How do you manage the business through that kind of transition internally, and then how do you manage your investor expectations? Maybe you might both have something to say. Yeah, it's always hard. But I guess what I would say, more fundamentally, we're not stock pickers. We're business builders, and that's really what we focus on, is really building a strong foundation for growth for the company for the long term. The stock's going to do what it's going to do from time to time. But I think if we're growing, we're generating profit, our margin expansion over the last quarter has been exceptional, and generating cash. If we're hitting those fundamentals, I'm sure the stock is going to take care of itself. And I think that's what we're starting to see. That's a perfect summary. I've nothing more to add to that. Yeah, exactly. Focus on the fundamentals, and we're delivering. Worth pointing out, you have nearly 1 billion in backlog. Could you just walk us through how that backlog converts? What has to happen between a design win and start of production, and how we could expect that to play out over the next couple of years? Is there any way to accelerate it? Yeah, we're really proud of our QNX royalty backlog. It's a great aspect to the QNX business that makes us a really long-term business and also gives us a great deal of visibility that other software companies just don't have. Like you say, we're just short of 1 billion. It's been growing really healthily. This past year, we added twice as much into that royalty backlog as we took out to recognize in the P&L. That's a really healthy leading indicator. If you keep doing that in the long term, you're going to be growing the business pretty solidly. One of the questions I get is, how robust is that backlog number? We monitor churn on an ongoing basis, and the churn is pretty low, relatively low. Single-digit percentage churn. Partly, that's because we're so diversified with our QNX business that we work with so many different OEMs. We work with different powertrains, for instance, so EV versus ICE versus hybrid. If one is winning and one's losing, we kind of ride the waves with that. The question about conversion into the P&L, so that $950 million, when we look at it today, first of all, it's not a static number. As we go forward, we're adding new designs every quarter. If we take that number as it is today, what we see is sequential growth every year for the first four years. In that first four years, we're converting more than half of that backlog into the P&L. Then obviously it starts to tail. L ike I said at the beginning, we're really pleased about the growth in that backlog, and it's a great asset for the company. How about development licenses? You had those be the strongest they've been in quite some time this most recent quarter, and you called out that that can be viewed as one of the earliest indicators of future growth. How should we think about those serving as a leading indicator, and then just the timeline for that to translate? That's a great question. When we think about QNX, there's always a lifetime to every design that we get built into. Be that a car, be it a robot, be it a medical instrument, there's kind of a similar pattern in that at the beginning, OEM will buy software development licenses. It's really an SDK, a software development kit, for developing software on top of QNX. We take most of that revenue up front at that point. Then over a period of somewhere between one year and three years, depending on what they're developing, they're going to develop the software that goes into that endpoint. They'll consume professional services. But then the really interesting bit happens when it goes into production, which is when we start to get royalties. The royalties are 100% margin revenue, and that's what we're talking about with this $1 billion of backlog. The fact that we've had a record quarter this past quarter for that early-stage revenue, the development licenses, is a really good leading indicator that people are developing on QNX, and in particular, our latest version of QNX called SDP 8.0, for future designs that will come into production. Right. You call it SDP 8.0, w hich also now has AMD x86 support alongside ARM support. What is it about 8.0 other than being the latest and greatest piece of software that has developers excited, has customers excited? Yeah. Maybe I'll start, and you feel free. We're really pleased about this development. It creates more clear blue water between us and the competition. One of the things we're seeing, and it's actually a real tailwind for this business, is a move towards high-performance compute at the edge. In the past, you'll see a car will have 200 small ECUs powering single functions. Not very interesting to QNX, because QNX handles complexity, high performance. It's not really designed for that. What you're seeing is a consolidation of those chips into fewer high-performance chips. The really important thing is, if you're making that investment into the silicon, are you getting the bang for the buck in terms of the software? Does that translate into what you can do with the software? The older version of QNX, and certainly the latest version of many of our competitors, they do not harness that full potential of the chip, whereas SDP 8.0 has been developed to scale. You go from 2 cores to 4 cores to 8 cores. Are you seeing that linear scaling of performance? SDP 8.0 does that, and it puts us in the same conversation as Linux from a performance perspective. Importantly, we are real-time, we are deterministic, we are safety certified, which is obviously what Linux is not. It puts us into a category of our own. The only thing I would add on top of that, I think that is the biggest part, is that high-performance compute and taking the advantage of all the technology that is coming out. The other little kind of, I think, nuggets of QNX goodness that goes along with that on SDP are things like safety certifications as it goes, so continuing that on everything that we do, real-time determinism on everything that we do as we go to SDP 8.0. For our customers, having backwards compatibility is an important aspect. It helps them seamlessly move to the next level at their speed. I think the high-performance compute advantages with all the other kind of things that come along with the value proposition of QNX is one of the reasons why we think SDP 8.0 is getting so much traction right now. SDP 8.0 is getting a lot of traction now. Alloy Kore could be a huge opportunity, and you are starting to see that become more relevant or you will over the next year is the idea. What does that do to content and economics per vehicle? Does that end up changing who you compete with materially? We are excited about what this opportunity represents. Everything that we have achieved thus far, and I will point out that the $950 million backlog has no Alloy Kore in it yet at this point. When you think about us moving up and going from an OS provider to a platform provider inside the quantum of increase there, multiples dramatically, and we are just scratching the surface. We have got a tremendous pipeline, and we think that is going to fuel the next version of growth for the company on the QNX side of the business. I think what is great about it really solves a need for our customers. All of this pulling together software, different middleware, OS, application, pulling all this together and stitching it together and bringing it to the marketplace, that is not easy. It is not a core competency that I would say a lot of our customers have. The fact that they can lean on a company like us who has those core competencies at the OS level, the partnership that we put in place with Vector, which is the biggest middleware player, stitching all of that together, delivering that to them in a high-performance way that helps reduce their cost and enables them to focus on the application layer where they can really differentiate themselves. I think all of those kind of value propositions are coming together and we think is going to generate a real good opportunity for us in the future. It is a high-performance platform, and it can reduce some cost for customers, but certifying some of these components can also take quite a while, and that is a significant value for customers. Would that also potentially shorten that timeline for backlog conversion for an Alloy Kore customer? Could that be a benefit in the future? Yeah, I think it could. I think it absolutely could. But right now, we want to come back here and announce our first Alloy Kore win. Get some runs on the board with that. We couldn't be more excited about where that is tracking right now. So stay tuned, watch this space, and we will be back with some news when we get some big wins that the first place you are really going to see Alloy Kore show up, you are not going to see it show up on the P&L. You are going to see it show up in our backlog. Because just all the way the revenue model runs through the process. So when you see us announce a, we are at $950 million, I think is where we, when we exceed the billion-dollar mark, we are making progress in our vision and our goal, and we hope to get there. When we talk about physical AI, it's important to think about probabilistic versus deterministic, especially when you think about safety, and some of the implications for human safety. One of the quotes that you've had that I like is that, "A car is just a robot on wheels." Can you just help the audience understand why your success in automotive places you in a strong competitive position to win in the general embedded market? Thanks for teeing that up, Kingsley. We're excited about everything at BlackBerry, I will tell you. Not only the core business and the Alloy Kore opportunity and even Secure Comms is actually firing on all cylinders last quarter. In this particular topic, there's a lot of investment going into it, as you all know. When you have a company like NVIDIA talk about how this could be a $4 trillion kind of market over the course of the foreseeable future, and us having a deep partnership with a company like NVIDIA. As they develop their Halos safety stack and all the different applications for things like robotics, for things like surgical robotic arms in the medical space, industrial automation, AMRs and autonomous forklifts. You look at all of these use cases, all of these applications, when you have a partner like NVIDIA come out and say, "Our entire Halos safety stack is on top of QNX." That's a heck of a statement. That's a heck of an endorsement. I think the traction that we got, the subject matter expertise that we put in place on the automotive side, and the fact that almost every car manufacturer in the world is adopting QNX and different variants of it, I think is a great testament to how well-positioned we are to address this exploding market. How fast it's going to explode, where it's going to explode, we're following all of that, and we're partnering with all the right players. I think when it does take off in earnest, I think we couldn't be better positioned to participate in it. You mentioned that endorsement from NVIDIA with Halos. You also have strong relationships with Qualcomm and ARM. How much of this build-out over the next couple of years is going to be channel led versus direct sales? Maybe you can get your tentacles out within the channel before it ramps more materially. What is great about our channel model is, while we have these great partnerships with Qualcomm and NVIDIA and Texas Instruments, ARM, NXP, you name it. We have a great deep partnership, and they love the fact of what our software can do to enable their high compute technology in all these different applications. Right. When they come out to a robotic manufacturer and say, "Our entire stack has been developed on top of QNX." That in and of itself gives us a position because that endorsement. Most of our applications, we are working directly with the OEMs. Sometimes there is a Tier 1 provider in part of it. This partnership that we have with the silicon players is more like a give and take for both of us. We are developing this high-performance software. They are developing this high-performance hardware. Our interests are completely aligned because of how well we are positioned, and we have proven that with the automotive space, and now that is starting to take hold in this whole physical AI explosion that we are starting to see. I just want to circle back on timing. We might not necessarily know how quickly this could develop, but automotive, it is closer to three to five years. How do you think that could play out in physical AI and robotics? I think it is early days, for. Again, a lot of this is going to show up in, for us, backlog, which will turn into revenue. What is encouraging to us is just the momentum, the investment, the massive. When the industry puts this level of energy and investment into a category like this. We think there is a near-term opportunity for us to really drive this part of the business forward. We are, I think, in a really good position. The fact that we have such a strong position with automotive as our foundational component, and then, the fast-growing aspect of physical AI, albeit on a small base. It is one of our fastest-growing segments inside the company right now. We see opportunities, real opportunities, coming through the pipeline right now. Want to touch on Secure Comms as well. You had an excellent quarter. I think revenue grew 24%, ARR was closer to flat and DBNRR still remains below 100%. Can you just remind us how much of that was related to deal timing, how you think that could play over the next couple of quarters, and then is 100% NRR aspirational, or what is the pathway to get there? A lot of questions in there, but great questions. We are really pleased about the turnaround in the Secure Comms business. I think if you looked at it a couple of years ago, the profile is very different to where we are now. We have repositioned that towards some modest growth now. Profitable, cash flow generative, and importantly, you mentioned dollar-based net retention, but I think more holistic is ARR. ARR has been growing sequentially each of the last four quarters, and this past quarter, it was 5% higher year-over-year. That means when you look at dollar-based net retention, we have had some churn in our more commoditized UEM product, which is why that is not at 100%. But we are replacing at least that, again, in new business that we are winning. We are winning in a number of different verticals right now, particularly government and defense, where obviously there is some budget expansion, and that is a tailwind for this business. Net net, overall, we are seeing a growth in ARR. If you look at our guidance, we are guiding to around about $270 million-ish for the year. $220 million of that is ARR. Very solid, very recurring. That means there is a bit of a go get. In Q1, we had a really big win with the Canadian government for deployment of our Secusmart encrypted voice and data platform. We see a pipeline of similar kind of opportunities, but timing can be a little bit variable. Government is great. Once you are in, you are in for a long time, but sometimes it can take a little bit of time to get in. You are going to see a little bit of variation from quarter-to-quarter. What I would urge people to do is more look at the trend line from year to year, which right now we believe is looking positive. A big benefit for Secure Comms has been sovereign demand. Defense budgets are rising across NATO. You have excellent sovereign demand in Europe. How cyclical do you think that is, and then how structural do you think that could be and just the impact on Secure Comms demand? To Tim's point, 80% of that business, I don't want to say you could set your watch by it, but it's repeatable, it's reliable, it's recurring. The other 20%, in governments, we've found since 75% of that business is actually with governments around the world, that tends to be a little lumpy from time to time. Right now, there is a lot of activity, a lot of geopolitical and all the different dynamics that are happening around the world that I think is having a lot of governments ask about their mission-critical communications, enhanced encryption technology like our SecuSUITE portfolio. Our AtHoc emergency notifications is deployed widely through governments around the world. We certainly are seeing some demand and some uptick in opportunities around that. But at the same time, governments, it's one of those, it takes a while to get in. You got to go through high levels of certification. FedRAMP. In Germany, they have a BSI certification that we're one of the only vendors that have passed it. Now they're talking to us about mobile device management broadly across the German market. You got to stick with it, and then once you get in, it becomes a sticky, longer-term relationship. So definitely some ebbs and flows that go along with that. A stabilized, solid profitability and solid cash generation that helps us invest in growth opportunities like QNX and other parts of the company. Getting close on time. Just want to make sure the audience has a chance to ask a question if they'd like. John, Tim, any parting words for our audience? Hey, thanks for coming out. We appreciate your interest in the company. A few years ago, there were a few less people in this room. We appreciate the interest in the company. What I would tell you is, we are on a rock-solid foundation now. We have good line of sight to top-line growth. We have great line of sight to margin expansion. The way we have addressed the cost structure of what I would call the old bloated BlackBerry is trim, it is lean, it is mean, it is focused. When we start to see these upside top-line opportunities, they drop right to the bottom line pretty quickly, which enables us to get to a Rule of 40, even sometimes a Rule of 50 type of quarter, which is something that we are proud of. The only other thing, since where the clock has ticked off, is, I would tell you it is a little bit of a softer thing. We are here at a finance conference and everybody is talking numbers and trends and all of those things. I would tell you the employee engagement across BlackBerry globally has never been higher. People are excited. Our people are loving what they are doing. They love the contributions that they are making to the industries that they operate in. I think that is another little piece of the special sauce that has helped us engineer this turnaround is our people are completely engaged with it as well. Kingsley, thanks for the opportunity and thanks everybody for coming out and hear our story. Thanks so much. All right. Thank you.