Good morning. And welcome to the BlackBerry Fiscal Year 2020 First Quarter Results Conference Call. My name is Lisa, and I will be your conference moderator for today’s call. During the presentation, all participants will be in a listen-only mode. We will be facilitating a brief question-and-answer session towards the end of the conference. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the presentation over to our host for today’s call, Christopher Lee, Vice President of Finance. Please go ahead.

Thank you, Lisa. Welcome to the BlackBerry fiscal year 2020 first quarter results conference call. With me on the call today are Executive Chairman and Chief Executive Officer, John Chen; and Chief Financial Officer, Steve Capelli. After I read our cautionary note regarding forward-looking statements, John will provide a business update and Steve will then review the financial results. We will then open the call for a brief Q&A session. This call is available to the general public via call-in numbers and via webcast in the Investor Information section at blackberry.com. A replay will also be available on the blackberry.com website. Some of the statements we will be making today constitute forward-looking statements and are made pursuant to the Safe Harbor provisions of applicable U.S. and Canadian securities laws. We will indicate forward-looking statements by using words such as expect, will, should, model, intend, believe, and similar expressions. Forward-looking statements are based on estimates and assumptions made by the company in light of its experience and its perception of historical trends. Current conditions and expected future developments, as well as other factors that the company believes are relevant. Many factors could cause the company’s actual results or performance to differ materially from those expressed or implied by the forward-looking statements, including the risk factors that are discussed in the company’s annual information form, which is included in our annual report on Form 40-F and in our MD&A. You should not place undue reliance on the company’s forward-looking statements. The company has no intention and undertakes no obligation to update or revise any forward-looking statements except as required by law. As is customary during the call, John and Steve will reference non-GAAP numbers in their summary of our quarterly and annual results. For a reconciliation between our GAAP and non-GAAP numbers, please see the earnings press release and supplement published earlier today. I will now turn the call over to John.

Thank you, Chris. Good morning, everybody. BlackBerry is off to a good start in fiscal 2020. Total company revenue grew 23% year-over-year. Total company revenue growth was driven by a 35% increase year-over-year in total software and services revenue. To break it down further, on an organic basis total software and services revenue grew 8% year-over-year and in addition BlackBerry Cylance software and services revenue grew 31% year-over-year. I am pleased to report that our integration of BlackBerry Cylance is ahead of schedule. These activities result in revenue growth and help us in profitability in the first quarter of fiscal 2020. We are executing upon the strategic and operational goal for the fiscal 2020 that we shared with you last quarter. Our execution gives us confidence to reaffirm our fiscal 2020 financial outlook. Now let me provide some highlights for the first fiscal quarter. I apologize, I am losing my voice a little bit. So total company revenue was $267 million. Total software and services revenue was $260 million, which is a new record quarterly high. Total software and services billing grew a strong double-digit percentage year-over-year. Total company gross margin came in at 75%. Total company operating income was $5 million. The resulting operating margin was 2%. The company EPS was $0.01. Total ending cash and investment was $935 million. Next, I will cover some of our significant highlights in each of our software businesses. Let me start with Cylance; revenue came in at $51 million, which grew 31% year-over-year. This was driven by approximately 30% year-over-year increase in the number of new active subscription customers. This new customer growth in the quarter was broad-based across various industries led by the professional services sector, manufacturing, as well as government. Annual recurring revenue, which is an indicator of the business momentum, was approximately $172 million and up 30% year-over-year in the first quarter of fiscal 2020. Another metric, dollar-based net retention rate, which is an indicator of customer retention expansion continues to be greater than 100%. BlackBerry Cylance executed well during the integration process, which I mentioned earlier is tracking ahead of schedule. Here are some of the highlights and proof points. We have completed the back office function and personnel integration worldwide. The integration for the majority of the systems and tools that are being used will be finished by the end of the second fiscal quarter, which is in a couple of months. Both the sales and R&D teams are working well together. We are seeing very promising interactions by our sales team within the BlackBerry key account base. The R&D team is on track to integrate the Cylance technology into UEM. This integrated product will be available by next spring, along with a combination of the QNX and Cylance technologies that will all come out thereafter. Also, the new products that BlackBerry Cylance announced earlier this year, namely Cocoon, Guard, and Persona are on track to be released throughout our fiscal year. Now let me briefly discuss our Licensing business. Revenue grew 14% year-over-year with some IP Licensing business occurring earlier in fiscal 2020 than we expected. We remain focused on entering into new IP Licensing arrangements that generate recurring revenue. Moving on to the IoT business. Total IoT revenue grew 5% year-over-year. As shared with you last quarter, the BlackBerry Technology Solution and the Enterprise Software and Services Group will combine to align our financial reporting with the way we manage the company today, which is namely under the executive of Bryan Palma. To assist you with the year-over-year comparisons though, BTS revenue grew 16% and ESS revenue grew slightly. During the quarter, we made a significant change to the sales leadership team in ESS, which is now completed. Let me walk through some highlights for BTS. BlackBerry QNX continues to drive revenue growth for BTS. BlackBerry QNX licenses, services, and royalty revenue all grew year-over-year as we continue to be selected for designs by our customers in both the automotive and general embedded markets. In the quarter, we had a total of 17 design wins, of which 13 were in automotive and four were in the general embedded market. Among the automotive wins, 11 were in applications like digital cockpits and digital instrument clusters, two of the 13 were infotainment wins. One of our wins in the quarter was with LG Electronics, a growing innovative partner to automotive OEMs. BlackBerry QNX will be the preferred choice for all next-generation automotive designs that LG provides to multiple OEMs. This design includes infotainment systems, digital instrument clusters, digital consolidated cockpits, as well as telematics systems. With these types of partnerships, we will bring to BlackBerry the opportunity to reach new OEMs and increase our content per vehicle, thereby yielding a higher average revenue per car to BlackBerry. Looking ahead, BTS expects to have a very busy year of exciting new product launches. There are two main ones. The safety certified Hypervisor, which will start shipping in November of 2019 and the integrated digital cockpit available later starting at the same time, which is November 2019. I would like to highlight a little bit about the digital cockpit. The BlackBerry QNX platform for digital cockpits integrates a number of our technologies, namely BlackBerry digital instrument cluster, infotainment, as well as hypervisor technology, all managed in real-time for the safety and security requirements, and they will come in as one platform, as one system. Our platform also enables Android and Linux operating systems in a secure manner. Of course, we continue to support Android Auto, as well as Apple CarPlay. This creates yet another opportunity for BlackBerry to have more content in a vehicle, leading to higher average revenue per car. Based on the strong growth we have experienced in both infotainment and non-infotainment applications over the last several years, BlackBerry QNX is now embedded in over 150 million cars, up from the 120 million cars that we reported last June. This statistic has been validated by Strategy Analytics, an independent third-party. Before I move onto ESS, let me briefly talk about our Radar business. In the quarter, we added 20 new customers, including one of the top three U.S. retailers specializing in home improvement. I apologize, we did not have permission to name the individual customer. The customer placed a 2,500 units order. Our Radar business is gaining more traction in the market. We are seeing increased activity both directly and through the channels, with referrals coming from many existing customers and partners. Now let me walk through ESS and I’d like to make three key highlights. Let me have a sip of water first, sorry. First, we are executing upon the strategic priorities for ESS that we shared at the beginning of the fiscal year. We remain strong with customers in regulated industries. This group of customers represents a healthy majority of our revenue generated in ESS. We increased revenue year-over-year in this customer segment, adding new customers such as SMBC, eco-securities, as well as government agencies in Canada, Germany, and the UAE. Our government mobility suite, which is based on UEM, has achieved the FedRAMP ready status. This is a key milestone because our cloud-based solutions have demonstrated that they meet the core security and process requirements of the United States Government. Also, we are now listed on the FedRAMP marketplace, highlighting the quality of our solution to the federal community. We anticipate our product being fully authorized to help increase our market share within the U.S. Government. We are also seeing returns on our go-to-market investment in AtHoc, our crisis communication system, and Secusmart, our secure voice solution. In the quarter, AtHoc won a number of new customers, even outside the United States Federal Government; a key win within the quarter that we like to celebrate was with the United Nations. We are also seeing new demand for Secusmart. Our secure voice capability, which historically has been a product for government agencies, is now seeing demand from multinational companies that do business in politically sensitive countries. We have over 15 pilots underway across both government and non-government sectors today. Second, we are investing in new products. We will launch our first security solution for Spark, a secure communication platform for the IoT, one month ahead of our original schedule. This will be unveiled at the BlackHat Conference in August. It addresses two security concepts that are currently top of mind for customers. These two are continuous authentication and zero trust. As noted earlier, we are on track to integrate BlackBerry Cylance into UEM. This integration will add mobile threat detection capabilities using AI to our endpoint management solution, making it a very differentiated product in the endpoint market. Current and prospective customers tell us they are very interested in these products, and they are waiting for these releases. Our innovation will allow us to be even more competitive in the market and drive future revenue growth. Third, we are investing in the organization, adding sales representatives and channel coverage, while making necessary operational changes to promote future growth. After reviewing the ESS pipeline for fiscal 2020 and noting the business is seasonally weighted towards the second half of the fiscal year, we anticipate quarterly sequential revenue growth in this category throughout the fiscal year. With that, I would like to turn the call to Steve to provide some details about our financial performance.

Thank you, John. Note; my comments on our financial performance for the fiscal quarter will be in non-GAAP terms unless specified otherwise. Please refer to the supplemental table in the press release for the GAAP and non-GAAP details. We delivered first quarter non-GAAP total company revenue of $267 million and GAAP total company revenue of $247 million. I will break down revenue shortly. First quarter total company gross margin was 75%. Our non-GAAP gross margin includes software deferred revenue acquired but not recognized of $20 million and excludes stock compensation expense of $1 million and restructuring costs of $1 million. Operating expenses of $194 million were up sequentially by $42 million, primarily due to the inclusion of BlackBerry Cylance for a full fiscal quarter. Our non-GAAP operating expenses exclude $35 million in amortization of acquired intangibles, $16 million in stock compensation expense, $5 million for software deferred commissions expense acquired, $1 million in acquisition and integration costs, and a benefit of $28 million related to the fair value adjustment on the convertible debenture. Non-GAAP operating income was $5 million, and non-GAAP net income was $5 million. Non-GAAP EPS was $0.01 in the quarter. Our adjusted EBITDA was $23 million this quarter, excluding the non-GAAP adjustments previously mentioned. This equates to an adjusted EBITDA margin of 9%. I will now provide a breakdown of our revenue in the quarter. Total software and services revenue was $260 million, representing 97% of total revenue. Other revenue is now comprised of service access fees, commonly known as SAF. Service access fees were $7 million, down from $16 million or 56% year-over-year. Total handset device revenue was zero, down from $8 million or 100% year-over-year. Both service access fees and handset device revenue were expected to decline, given the continued wind down of these legacy businesses. I will now provide a further breakdown of our software and services revenue in the quarter. The IoT business accounted for 53%, the BlackBerry Cylance business accounted for 20%, and the Licensing business accounted for 27%. Recurring software and services revenue, including BlackBerry Cylance, was above 90% in the quarter. Based on our current assumptions, we model recurring revenue to be within the range of 85% to 90% throughout the remainder of fiscal 2020. Now moving onto our balance sheet and cash flow performance. Total cash, cash equivalents, and investments was $935 million, which decreased by $70 million from February 28, 2019, due to a combination of funding BlackBerry Cylance’s operations and the payment of fiscal 2019 bonuses during the quarter. Our net cash position was $330 million at the end of the quarter. Free cash flow before considering the impact of acquisition and integration expenses, restructuring costs, and legal proceedings was negative $49 million. Cash used in operations was $64 million, and capital expenditures were $2 million. This concludes my comments. I will now turn the call back to John to provide our financial outlook.

Thank you, Steve. I will provide the financial outlook before we do our Q&A session. As I said earlier, we reaffirm our financial outlook for the fiscal year 2020 for total company year-over-year revenue growth. Year-over-year revenue growth will come in between 23% to 27%, driven by double-digit percentage increases in billings. Revenue growth according to our model is expected to break down as follows; IoT year-over-year revenue growth will come in between 12% to 16%, BlackBerry Cylance year-over-year growth is expected to be in the range of 25% to 30%, and Licensing year-over-year is expected to decline by about 5%, with service access fees projected to be between $10 million and $20 million of revenue for the total year of fiscal year 2020. We also reaffirm total company profitability for fiscal 2020. I would now open the call for Q&A. Operator, Lisa. Lisa, please proceed with that.

Thank you. Our first question comes from Daniel Chan from TD Securities. Your line is open.

Well, hi. Good morning.

Good morning.

John, any early surprises from the Cylance integration either positive or negative that you hadn’t anticipated seven months ago?

There are many positive developments to report. The most significant is on the technology front, where the team is collaborating exceptionally well. We have implemented our integration plan effectively, focusing on merging the technology and incorporating AI capabilities into UEM endpoints to set ourselves apart. Progress in this area is encouraging, and the integration team has made significant strides. As I mentioned earlier, we anticipate completing this within this fiscal year and releasing it as a product shortly, which is a commendable timeline. The next phase involves integrating Cylance AI technology into the automotive platform under QNX, which is also progressing smoothly. There's a robust exchange of ideas happening. Although we are slightly behind schedule on the launch due to QNX's tightly packed timeline for the earlier mentioned products, that will follow soon after. Overall, from a technological perspective, things look very promising. On the sales front, we have started slowly, as I mentioned a couple of quarters ago. BlackBerry is fundamentally a mobile-first company, and all our products are designed for mobility. Cylance, however, is more oriented toward PCs, routers, and servers. It's crucial that we align our product roadmap to cover everything from mobile devices to servers and routers. When we achieve that, which we expect to happen within the year, I believe we will see a significant increase in synergy in both sales and revenue.

That sounds good. I am also wondering if you had any thoughts on what you think might be weighing on the stock price. We have seen the shares underperform in the overall market, and I think the CrowdStrike IPO has some positive read-through for you. Does anything come up in your discussions that may explain it?

Good question. We definitely pay attention to the stock price, especially as we engage with our shareholders. One of their concerns relates to the CrowdStrike IPO. Specifically, they are worried if BlackBerry overpaid for Cylance and whether we can effectively integrate the business. I believe this is a significant opportunity. Firstly, I think Cylance is an undervalued asset. Our purchase price for Cylance was just under 7 times revenue, which, factoring in expected revenue growth of 25% to 30%, translates to around 6.6 to 6.7 times. While I'm not updated on CrowdStrike's current valuation, there was a time recently when they were trading at about 40 times revenue, which I see as very positive for BlackBerry. Regarding integration, we've dedicated time to ensure this process goes smoothly. The back office systems will be fully integrated by the end of this quarter, within the next two months. We have initiated engineering efforts and begun synergy initiatives targeting common customers, including major banks and governments that BlackBerry serves, bringing Cylance into the fold. Cylance has a solid small to medium business (SMB) channel, and our goal is to introduce BlackBerry's traditional products into that channel. I believe the integration is progressing well, and there’s no need for excessive concern about it.

Great. Thank you very much.

Sure. Thanks.

Our next question comes from the line of Steven Fox from Cross Research. Your line is open.

Hey, good morning.

Hi. Good morning, guys. First off, John, I was wondering a little more detail on Cylance. So you mentioned, for example, 100% plus net retention rates. Can you provide a little bit more color on directionally where that could go and how that might compare to some others out there in similar business models? And also, given the first quarter sales growth, I am curious why the full year for Cylance can’t be a little bit better than we originally thought? And then I had a follow-up.

For the retention rate, it seems that when we talk to Cylance customers, they really appreciate the product once it’s installed and tend to purchase more. This has contributed to the increase in our retention rate. We have two competitors to consider, Carbon Black and CrowdStrike. From my perspective, we are outperforming Carbon Black, and we’re performing similarly to CrowdStrike based on the numbers. The sustainability of CrowdStrike’s high performance is something you will need to assess. However, I feel very optimistic about our company because customer loyalty and additional purchases are key indicators for us. We have seen a 30% increase in new customers this quarter, which boosts my confidence. Generally, we take a more conservative approach, and you might consider our estimate to be in the range of 25% to 30%. We are certainly aiming for the upper end of that spectrum, and if we can exceed expectations, we will share those better results.

Okay. Great. And then just in terms of the sales force reorganization, it seems like that had a little bit of a drag on Q1 sales. Was that about as expected, or was there a little bit of difference in terms of how it impacted your business during the quarter and where is it done, et cetera looking forward? Thanks.

Thanks, Steve. Yes. It’s done. We have made some management changes that I think are necessary for the business given the phase we are in, and that phase is in growth. So we brought Bryan in, and he is very focused on building the enterprise service. He brought in a couple of very talented executives who have been in business for a long time, both in sales and marketing. We have moved some of our internal people to run bigger theaters, who have proven they could grow. But the good news is these were all planned as Bryan came in and it’s all done right now, and so we are now executing. There are no more major changes that we anticipate.

Great. Thank you so much.

Sure.

Our next question comes from the line of Mike Walkley from Canaccord Genuity. Your line is open.

Hi there.

Great. Thank you. Just on the QNX portion of the business, with it expected to grow at the higher end of that 12% to 16% growth. Can you talk about the growth in the royalty piece of the business? I imagine you have some professional services ramping ahead of new projects. And also with your two new products coming to market, can you help us think about what that could do in terms of dollar content per vehicle on those platforms ending up in automobiles? Thank you.

Actually, the growth is rather even between royalty and professional services because the gestation period for revenue is so long and sticky. The long period is one problem, and sticky is the benefit. Because there is so long and sticky, we don’t really see sudden revenue growth from professional services. With the LG win, we might see some uptick in ProServe in the coming quarters, but that’s just my own speculation. We see uptake in all three segments: development seats that come with a design win, professional services, and it depends a little bit on the customer. Some of our customers already have a lot of engineering resources. They know what they wanted to do with the technology, and they are familiar with it. We don’t seem to get a lot of support from them. But if it’s more of an OEM, we could see that we have a lot more opportunities. Regarding the ARPU, since we got into the new product cycle, like the digital cockpit and the clusters, the ARPU is measurably higher per car now. But I have to admit that the whole of our current base royalty is still coming from the infotainment wins that we have done in the last three to five years. So this is not a sudden sea change of our ARPU; it will be a gradual change of our ARPU and a gradual uptick of our ARPU. So we feel good about our business. You are right; we expect it to be on the high end. This particular quarter came in at the high end of 16%.

Okay. Thanks. Just a follow-up question, just on the Licensing business, with a strong start to the year relative to your full-year guidance, can we think about that as more or less flattish in the mid-60s for the rest of the year? Do you expect maybe a seasonal close to the year strong like last year? Just trying to think about the cadence of how you are thinking about that down 5% for the year. Thank you.

Yeah. I’d like to answer that one. I am pretty close to it. I believe the second half will be stronger than the first half. You might have a similar number as Q1 or slightly down from that number in Q2. But I expect that Q3 and Q4, the combined number will be greater than the first half.

Great. Thank you.

And that we will meet the estimates that we have already guided you to.

But you see flowing to meet the estimate when they go year-over-year down 5%. But, yeah, Steve is very close to this part of the business, that’s true.

Great. Thank you.

Sure. Thanks.

Our next question comes from the line of Paul Steep from Scotia Capital. Your line is open.

Hi, Paul.

Great. Thanks. Good morning. John, could you talk a little bit? You put the announcement out just before yesterday’s AGM about the total installed base of QNX cars. You have given us a little hints around it today. Maybe talk about that net 30 million in vehicle shift growth in terms of where it generally was and sort of the uptick in, I guess, what we would call non-infotainment design wins? How that’s starting to ramp into the base? And then I have got one quick clarification. Thanks.

Yes, we are seeing. So I let’s just back up a second and I think that in the last few years, the design wins started to see a lot of them in Asia. When I look at the detail of the 150 million breakdown, I see an uptick in the Asian market, which now represents about 37%. There might be manufacturers in Asia driving production somewhere in parts of the world, we only count the manufacturer source. So that tells you a little bit about that part of the auto market over in Asia; it is very healthy and it’s growing. Europe continues to be a big sector, and obviously, the U.S. So, on a dollar basis, because of these design wins, recent design wins over the last three years to five years are a little bit higher ARPU than the infotainment, so we continue to see that uptick of revenue. It’s now also biased towards Asia and Europe.

Okay. Great. That’s helpful. And then just on the ESS sales realignment, just to be clear, is this centered more around the UEM business? I am assuming rightly or wrongly that this isn’t touching AtHoc or Secusmart and that those businesses are more or less still executing? And then, you just talked about leadership going through, have all the reps that are going to be changed out been changed out? I guess the question is around your confidence in seeing that uptick in the rest of the year. We know that usually new people do bring some change with them sometimes so. Thanks.

Yeah. That’s a good question. The changes are actually getting UEM ready for Spark. We are making this change. Yes, AtHoc and Secusmart, particularly AtHoc, continue to perform well and that is not an issue for us. What we need to do with the new team is make sure that they are ready for Spark, continue the UEM regulated industry business, and are more focused on adding other verticals to it, so that we are not going back. We love our customers, don’t get me wrong, but we are not going back to the same customers over and over again. We need to have a much newer source of revenue, much broader reach to the channel. By the way, the management changes are mostly management changes. We don’t have any intention to change our representatives; that’s not the point. The new management people coming in will bring in new reps, but it’s in addition; we are not thinking about wholesale changing our reps.

Next question.

Yeah. Next question please.

Our next question comes from the line of James Faucette from Morgan Stanley. Your line is open.

Hi.

Great. Hi. Good morning. Thanks a lot for taking my questions.

Absolutely.

I just wanted to ask a couple of follow-up questions on Cylance. First, your growth rates that you are anticipating for the rest of the year would imply that you expect a little bit of incremental deceleration from maybe what the business was doing before. Just want to get a sense of where you think those growth rates will bottom out? And then more broadly, clearly, if you feel like you got a pretty good deal on the Cylance acquisition, especially compared to some of the other assets the way they are being valued. What do you think are the key things that you are focused on operationally that will allow the market to assign a better value to Cylance inside of BlackBerry than what you are able to pay? Thanks a lot.

Yeah. That’s interesting. First question, James, you always have a way to turn a positive situation into a little bit of a negative swing. So I don’t anticipate deterioration. They are doing well. The team that runs the sales over at Cylance is led by a very highly qualified gentleman with extensive experience and a great set of plans. The most important thing is to get the joint product done. If you get that product done, both teams will have a lot more things to sell, which is critical. For this year, because it would take us a year to get the integrated product with UEM and AI, so I believe that for this year, I am being modest estimating about 25% to 30%. I don’t know what my colleagues think, but judging from the momentum and the differentiation out there, I feel pretty good about that, especially in a robust market. As far as an operational concern is, this is why I kept Cylance separate and report directly to me and because as much as I like the integration and the synergy, I also want Cylance to continue its expansion in the channel business. They have over 1,000 channel partners focused on SME and they are making inroads on the consumer side, working with OEMs. You will see the numbers that we show today as a separate number, and I hope we will improve that. It gives visibility to the shareholders about how the business is doing. We adopted industry metrics in reporting, like ARR and retention rate, to show that despite being part of BlackBerry, there is still competitive growth there.

Thanks very much, John.

Yeah.

Our next question comes from the line of Paul Treiber from RBC Capital Markets. Your line is open.

Hey, Paul.

Hi, thanks so much. Good morning. Regarding ESS, I believe there were a few large-term license deals that were delayed last quarter. Were any of those closed this quarter? Do you expect them to close in the coming quarters?

I think the majority of them will close.

Okay. Thank you. The second question is on automotive, and this is where you have been very successful on the design win side. But then the question is really around the timeframe for design wins converting to revenue. Have you seen any change in that timeframe? Is there any way you can estimate it? And then do you look at backlog for that business and how is that been tracking?

Good question. Yeah. Some of our people in the QNX management look at the backlog, and it’s good. Part of the QNX business is rather predictable due to the backlog. The gestation period unfortunately doesn’t really change; we would always like it to be shorter. Once we have the design wins, typically, those take between six months to a year. Once you get design wins, you get some early revenue from possibly ProServe and definitely developer seats. Those are typically in six figures. Once the design gets kicked in, I have been closely involved with some OEMs, especially Jaguar Land Rover, to ensure readiness. It’s a couple of years cycle before products start coming out. Once that happens, production usually takes two to three years. So you can see that the tail is quite long, benefiting from current royalties and margins. We expect growth to continue and improve, but it will not be a step function; it’s likely to see gradual increases.

Okay. Thank you.

Sure.

Our final question today comes from the line of Todd Coupland from CIBC. Your line is open.

Hi.

Good morning, John.

Good morning.

I am not piling on on this question, but I do wonder about it, and certainly, a lot of investors ask about it. There’s an obvious difference in growth rate between Cylance and CrowdStrike; you are more or less at 30% while they are at plus 60% this year more or less. I am just wondering when you look at that, and then relative to the market, how do you think about the differences and how should we be thinking about that? Thanks a lot.

It's a great question. We are not satisfied until we achieve parity or outperform CrowdStrike. Although I am new to this industry, it's clear that companies preparing for an IPO, regardless of their experience, are spending a significant amount of money and facing substantial losses. Their cash outflow for this launch is considerable. What intrigues me is whether they can sustain their growth rate. If they do, it indicates a viable market, and we have the potential to excel. However, I have some reservations as their numbers are notably high. Our retention rates are impressive, exceeding 100%, which reflects strong customer loyalty as they purchase more. We are also performing well in acquiring new customers, with a 30% increase in net new customers this quarter, and we anticipate exceeding that rate. It's important to highlight that we are outpacing our other competitor in terms of growth rate.

Great. Thanks for the color.

Yeah. Sure.

I would now like to turn the call back to John Chen for closing remarks.

Very well, Lisa. Thank you. As I said earlier, at the start of the call, BlackBerry is off to a pretty good start here in 2020. We talked a lot about Cylance here on this call, and it is a strategic asset, not just because it’s a business that is growing and doing well, but because we have overwhelming positive responses from our customers and partners. We are very pleased that technology is able to help us differentiate our existing technology in UEM and QNX. We have a lot of products coming out this year, and although it may not fully affect this year’s results, it will help set us up for good growth in next year. We have over 30 products across the entire company scheduled to launch this year. We have two main operational priorities: one is to step up our investment to sustain future growth, and some of us are already working on next fiscal year. Only Bryan works on the current fiscal year, so it puts a little more pressure on him. And we will focus on integrating Cylance, which will yield much longer-term shareholder value, and we are off to a really good start on integration, product development, and personnel. I am very pleased with that. I thank you very much for your time today, and I hope to talk to you guys soon. Have a great day.

This concludes today’s call. Thank you for your participation. You may now disconnect.