Jun 29, 2022·edited Jun 29, 2022Liked by Antonio Linares
Hey Antonio, there's been rumblings online that Facebook/Meta may be taking up QNX, possibly as a foundation for a metaverse OS. Any thoughts? Have you come across anything?
I remember one of the BB executives saying the settlement with FB wasn't disclosed because it was not material. He seemed to put some emphasis on the word 'material.' At the time, I thought he might have just been disappointed with the result. However, it may have been a hint towards partnerships rather than cash settlement.
If this does happen, it would be as big as Ivy/auto, IMHO, and wouldn't be priced into the stock at all. It could be a step towards making QNX a standard for IOT.
Is there any activity about tracking shipping containers? Huge challenge: Containers, contents, shipping routes, where are the empty containers... Has one been broken into, where, when etc. The contents of a container maybe dangerous cargo, or contraband, or a fabrication, etc.
Just curious if Blackberry has plans to address this market.
Thanks for the write up. The growth in the European, Middle East, and African markets was substantial this quarter. It wasn’t clear if that was due to the Midis partnership, but it was fairly encouraging to see that growth. North American cybersecurity revenue dropped considerably, but it appears they are poised to bounce back with a considerable focus on North American sales hiring (if you believe their careers page as of today).
I don’t quite understand the Total Contract Value number that they published. I thought that was the value of contracts they billed but did not receive revenue on due to crediting those customers the value during the quarter. If my understanding is correct, I’d attribute that growth in part to the Kaspersky and federal agency deals that they offered in the aftermath to the start of the war in Ukraine.
I share your concerns about the catapult deal, but if they’re able to get that done, launch IVY 1.0 in November, and capitalize on the ZTNA product and Google partnerships launching in January, I imagine it’s possible we could see better than expected results in this fiscal year.
Thanks again for sharing your analysis. Appreciate the thoughtfulness and follow up from your previous writings.
I would love to know more about the structure of the government contracts (US AirForce, US Navy, 17 out G20 governments etc)
Cybersecurity has never been in as high a demand than now with the current Russia situation. You would think the demand for reliable security is very price inelastic. I would love to know if management would explore increasing the prices of their offerings, especially since governments can afford it. Big governments are increasing their national security budgets.
I read through again and spotted a small mistake: "Also, bear in mind that Blackberry´s fiscal calendar is one year ahead of the natural calendar, so 2024+ means in 2023 and beyond."
In the graphic, 2024+ means calendar year 2024, not the BB fiscal year. This is because Blackberry Ivy was announced in calendar year Dec 2020 (not 2019).
Hey Antonio, there's been rumblings online that Facebook/Meta may be taking up QNX, possibly as a foundation for a metaverse OS. Any thoughts? Have you come across anything?
I remember one of the BB executives saying the settlement with FB wasn't disclosed because it was not material. He seemed to put some emphasis on the word 'material.' At the time, I thought he might have just been disappointed with the result. However, it may have been a hint towards partnerships rather than cash settlement.
If this does happen, it would be as big as Ivy/auto, IMHO, and wouldn't be priced into the stock at all. It could be a step towards making QNX a standard for IOT.
Is there any activity about tracking shipping containers? Huge challenge: Containers, contents, shipping routes, where are the empty containers... Has one been broken into, where, when etc. The contents of a container maybe dangerous cargo, or contraband, or a fabrication, etc.
Just curious if Blackberry has plans to address this market.
Thanks for the write up. The growth in the European, Middle East, and African markets was substantial this quarter. It wasn’t clear if that was due to the Midis partnership, but it was fairly encouraging to see that growth. North American cybersecurity revenue dropped considerably, but it appears they are poised to bounce back with a considerable focus on North American sales hiring (if you believe their careers page as of today).
I don’t quite understand the Total Contract Value number that they published. I thought that was the value of contracts they billed but did not receive revenue on due to crediting those customers the value during the quarter. If my understanding is correct, I’d attribute that growth in part to the Kaspersky and federal agency deals that they offered in the aftermath to the start of the war in Ukraine.
I share your concerns about the catapult deal, but if they’re able to get that done, launch IVY 1.0 in November, and capitalize on the ZTNA product and Google partnerships launching in January, I imagine it’s possible we could see better than expected results in this fiscal year.
Thanks again for sharing your analysis. Appreciate the thoughtfulness and follow up from your previous writings.
Great read Antonio!
I would love to know more about the structure of the government contracts (US AirForce, US Navy, 17 out G20 governments etc)
Cybersecurity has never been in as high a demand than now with the current Russia situation. You would think the demand for reliable security is very price inelastic. I would love to know if management would explore increasing the prices of their offerings, especially since governments can afford it. Big governments are increasing their national security budgets.
Thank you for the helpful, insightful unbiased write up Antonio. Cheers!
I read through again and spotted a small mistake: "Also, bear in mind that Blackberry´s fiscal calendar is one year ahead of the natural calendar, so 2024+ means in 2023 and beyond."
In the graphic, 2024+ means calendar year 2024, not the BB fiscal year. This is because Blackberry Ivy was announced in calendar year Dec 2020 (not 2019).