MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide
provider of enterprise analytics and mobility software, today
announced financial results for the three-month period ended March
31, 2017 (the first quarter of its 2017 fiscal year).
First quarter 2017 revenues were $120.6 million versus $119.0
million for the first quarter of 2016, a 1.3% increase. Product
licenses and subscription services revenues for the first quarter
of 2017 were $28.8 million versus $29.8 million for the first
quarter of 2016, a 3.3% decrease. Product support revenues for the
first quarter of 2017 were $70.5 million versus $68.5 million for
the first quarter of 2016, a 2.9% increase. Other services revenues
for the first quarter of 2017 were $21.3 million versus $20.8
million for the first quarter of 2016, a 2.6% increase. Foreign
currency headwinds continued to have a negative impact on revenues
for the first quarter of 2017.
Operating expenses for the first quarter of 2017 were $78.1
million versus $76.4 million for the first quarter of 2016, a 2.2%
increase. MicroStrategy did not capitalize any software development
costs during the first quarter of 2017 or 2016.
Income from operations for the first quarter of 2017 was $19.4
million versus $19.8 million for the first quarter of 2016. Net
income for the first quarter of 2017 was $14.9 million, or $1.28
per share on a diluted basis, as compared to net income of $14.3
million, or $1.24 per share on a diluted basis, for the first
quarter of 2016.
Non-GAAP income from operations, which excludes share-based
compensation expense and restructuring costs, was $22.5 million for
the first quarter of 2017 versus $21.3 million for the first
quarter of 2016. The tables at the end of this press release
include a reconciliation of income from operations to non-GAAP
income from operations for the three months ended March 31, 2017
and 2016. An explanation of this non-GAAP measure is also included
under the heading “Non-GAAP Financial Measure” below.
As of March 31, 2017, MicroStrategy had cash and cash
equivalents and short-term investments of $618.5 million, as
compared to $589.4 million as of December 31, 2016, an increase of
$29.1 million. As of March 31, 2017, MicroStrategy had 9.4 million
shares of class A common stock and 2.0 million shares of class B
common stock outstanding.
Conference Call
MicroStrategy will be discussing its first quarter 2017
financial results on a conference call today beginning at
approximately 5:00 p.m. EDT. To access the conference call, dial
(844) 824-7425 (domestically) or (716) 220-9429 (internationally)
and use conference ID 5068747. A live webcast and replay of the
conference call will be available under the “Events” section on
MicroStrategy’s investor relations website at
http://ir.microstrategy.com/events.cfm. The replay will be
available beginning approximately two hours after the call
concludes until May 4, 2017 at (855) 859-2056 (domestically) or
(404) 537-3406 (internationally) using the passcode 5068747. An
archived webcast will also be available under the “Events” section
on MicroStrategy’s investor relations website at
http://ir.microstrategy.com/events.cfm.
MicroStrategy Unveiled MicroStrategy 10.7™
In March 2017, MicroStrategy announced the general availability
of MicroStrategy 10.7, the latest feature release to its
MicroStrategy 10™ platform. This release delivered a set of APIs
that allows MicroStrategy customers to build almost any data
connector and an extensive SDK to support the Data Connector API.
The Data Connector SDK opens a more extensive list of options for
both IT and business users, allowing access to data sources
including Eloqua, Amazon S3, OneDrive and more – all on top of
secure authentication modes. The SDK includes documentation and
instructions to make it easy to build and deploy new
connections.
“Enterprises need both horsepower and flexibility to deploy
business intelligence and data analytics solutions at scale,” said
Tim Lang, CTO of MicroStrategy Incorporated. “MicroStrategy 10.7
extends the types of technologies that can connect to the platform
by giving our customers direct pathways to the data resources they
need. With this greater level of accessibility, our customers can
draw more value from their existing investments to improve
productivity, customer engagement and operational
efficiencies.”
MicroStrategy 10.7 also added integrations with Natural Language
Generation (NLG) providers Automated Insights and Narrative
Science, letting users add Intelligent Narratives to their
dashboards alongside their reports, graphs, and visualizations.
With NLG, MicroStrategy users can read narratives that explain the
patterns and trends in the data, making the platform more
accessible to an even wider audience of business users. To see how
MicroStrategy 10.7 supports Intelligent Narratives, watch this
video.
“Our seamless integration with MicroStrategy reflects our common
vision of empowering enterprises with data-driven intelligence.
Narratives for MicroStrategy broadens the accessibility of this
intelligence by automatically providing it in natural language,”
said Mauro Mujica-Parodi, General Manager, Integrated Narrative
Solutions & Applications at Narrative Science. “This technology
partnership enables MicroStrategy clients to instantly receive and
report Intelligent Narratives comprised of insights that matter
most to their organizations.”
“The technology partnership between MicroStrategy and the
Wordsmith® NLG platform is exciting because it gives MicroStrategy
users control over the automation of narrative insights derived
from their dashboards. Key metrics and data points that
MicroStrategy users need to know are highlighted and summarized in
a narrative form, updating in real-time as users explore their
visualizations,” said Adam Smith, Chief Revenue Officer and Head of
Partnerships at Automated Insights. “Now, MicroStrategy users can
easily complement their complex dashboards with the most important
takeaways condensed into a narrative that any user can understand,
utilizing company-specific language.”
MicroStrategy 10.7 delivered a completely re-architected native
connector, called the Hadoop Gateway, that leverages Apache Spark™
to increase scalability and performance while accessing data
directly from HDFS. The release also made the Hadoop Gateway setup
process easier and more seamless. Also, with version 10.7, the
Hadoop Gateway can access more file types, including Parquet, Avro,
and JSON formats. This functionality is in addition to previously
supported .csv and text file formats.
Additional features for MicroStrategy Desktop™, MicroStrategy
Web™, and MicroStrategy Mobile™ in version 10.7 include:
- New Certifications for Data
Sources
- MicroStrategy 10.7 supports even more
data sources and meets a number of new certification standards. New
certifications available in version 10.7 include:
- MSAS 2016 (certified as a data
warehouse)
- Amazon Aurora, MySQL Edition (certified
as a data warehouse and metadata)
- Custom Shapes on iOS Devices
- MicroStrategy 10.7 delivers a
consistent user experience in maps on iOS devices by allowing
organizations to deploy custom shapes and area maps, supporting
both .KML and .SHP files.
- AppConfig Support in Android™
- In addition to native integration
support with AirWatch®, MicroStrategy 10.7 supports the
implementation of AppConfig (formerly known as ACE) for
standardized enterprise mobility management processes. This
configures and helps secure applications on Android devices based
on AppConfig guidelines. The integration with AppConfig facilitates
more consistent, open, and simple ways to configure and help secure
mobile applications.
Alongside the MicroStrategy 10.7 feature release, MicroStrategy
10.4™ Hotfix 3 was made generally available to customers. This
hotfix improves overall product stability and includes 120
customer-requested enhancements and fixes across the platform.
Furthermore, the hotfix is certified on SUSE Linux Enterprise
Server 12, in addition to being available for Windows®, AIX™, and
Solaris. For more information about MicroStrategy 10.4.3, please
visit the MicroStrategy Community.
Leading Brands Represented MicroStrategy and Presented at
Gartner Data and Analytics Summit
In March 2017, at the Gartner Data and Analytics Summit in
Grapevine, Texas, MicroStrategy customers 3M Company and Reynolds
American Inc. presented their best practices on evolving enterprise
data discovery and Dr Pepper Snapple Group showcased its mobile
applications built with MicroStrategy 10.
“MicroStrategy has a rich history of helping its customers build
smarter enterprises,” said Michael J. Saylor, CEO of MicroStrategy
Incorporated. “In the March 2017 Gartner Critical Capabilities for
Business Intelligence and Analytics Platforms report, we feel the
MicroStrategy platform performed exceptionally well in the use
cases categories. At the Gartner Data and Analytics Summit, we’re
letting our customers take the spotlight to show how MicroStrategy
brings mobility to analytics and transforms BI at scale.”
The session, titled “How 3M and R.J. Reynolds Evolved from
Simple Grids to Enterprise Data Discovery with MicroStrategy,”
showcased how these customers successfully use MicroStrategy 10 to
deliver self-service capabilities to end users. Attendees learned
about rolling out data discovery to new departments, boosting
platform user adoption, and maintaining data governance. Dr Pepper
Snapple Group, another long-standing customer of MicroStrategy,
showcased live demos of their MicroStrategy solutions. To recap how
MicroStrategy performed in last year’s Gartner BI Bake-Off and view
the capabilities demonstrated, visit our on-demand webcast here:
https://www.microstrategy.com/us/webcast/watch-microstrategy-at-the-gartner-bi-bake-off.
MicroStrategy Highlighted Key Opportunities for 2017 in
Analytics and Mobility at its January Symposium Series
In January 2017, MicroStrategy announced the locations for its
22 MicroStrategy Symposium Series events that were held in Q1 of
2017. Each one-day event, which took place in cities across North
America, Europe, the Middle East and Asia, highlighted the
functionalities of MicroStrategy 10.6™ and identified key analytics
and mobility opportunities in 2017 for enterprises to pursue. The
events also highlighted opportunities to drive the adoption of
intelligence across organizations, reduce costs through tool
consolidation, and empower the workforce to be more productive –
all designed to help attendees plan and achieve their analytics
goals for 2017.
Symposium attendees were presented with opportunities to
network, attend workshops, and learn about real-world MicroStrategy
10 applications from customers, including BMC Software, Cegid,
Co-op, CTS Eventim AG & Co. KGaA, DFW International Airport,
Omega World Travel, Staples, and TWIN-SET SIMONA BARBIERI. The
executive keynote, followed by a day filled with more than a dozen
breakout sessions and hands-on workshops, covered new content
spanning MicroStrategy’s Industry Solutions, Functional Solutions,
Analytics, Mobility, and Usher™ offerings. The Symposium Series
offered several hands-on workshops for attendees to gain firsthand
experience with MicroStrategy Desktop, the company’s free
enterprise data discovery product.
MicroStrategy Hosted its 20th Annual World
Conference, April 18-20, 2017 in Washington, D.C.
In April 2017, MicroStrategy hosted its 20th annual user
conference, MicroStrategy World™ 2017,
at the Gaylord National Resort & Convention Center. Nearly
2,900 individuals attended MicroStrategy World and learned how
MicroStrategy 10 can empower them to make sense of large data
volumes and answer their toughest business questions. Industry
experts gathered in the nation’s capital to hear about the latest
features of MicroStrategy 10, chose from more than 200 informative
sessions, received hands-on technical training on key topics,
experienced interactive demos, and networked with partners and
peers at numerous social events.
MicroStrategy 10.7, the newest feature release on the
MicroStrategy 10 platform, took center stage at MicroStrategy
World. With a new set of APIs that allow MicroStrategy customers to
build custom connectors to almost any data source and dashboard
integrations with Natural Language Generation (NLG) providers, data
analytics and business intelligence are now more accessible to a
wider audience of business users. In addition, attendees gained
analytics mastery, inspiration and ideas from customer experts
during keynotes, interactive panel discussions and numerous
customer success track sessions.
MicroStrategy and Datastrong Hosted “STEM for Her” Race at
MicroStrategy World™ 2017
In April 2017, MicroStrategy sponsored and hosted a 5K run in
association with Datastrong, a BI and data warehousing solutions
provider, at MicroStrategy World 2017. All proceeds from the event
benefitted STEM for Her, a non-profit foundation that supports
young women and girls in the Washington, D.C. region who are
interested in pursuing careers in science, technology, engineering
and math fields of study.
“Through hands-on training and mentoring programs, we impact the
lives of hundreds of young women in the local community,” said
Marian McKee, Board Chair, STEM for Her. “When technology
organizations, like MicroStrategy and Datastrong, come together and
actively support programs that encourage gender diversity, they are
15 percent more likely to outperform their competitors.”
“Datastrong understands that science, technology, engineering,
and math are what makes society progress and contribute to
improving our future,” said Jacqueline Meriwether, Managing Partner
at Datastrong. “Teaming up with STEM for Her provides the community
at MicroStrategy World with opportunities to impact the young women
and girls that will be the future talent in our technology
organizations.”
“According to the U.S. Bureau of Labor Statistics, nearly 1.4
million computer science jobs will be available in America by 2020.
At MicroStrategy, we are focused on supporting the young minds who
aspire to fill those roles,” said Susan Cook, Executive Vice
President of Sales for North America, MicroStrategy Incorporated.
“Supporting this locally-based non-profit foundation directly
benefits the young women and girls in the Washington, D.C. region
who are aiming to hold a STEM-related career.”
The race was also supported by MicroStrategy’s “At The Table,” a
cross-functional network for women at MicroStrategy that provides
members with opportunities for professional development,
networking, and support through learning and social events.
PetSmart® Powers Productivity, Analytics and
Reporting with MicroStrategy 10
In February 2017, MicroStrategy announced that North America’s
leading pet specialty retailer, PetSmart, Inc., deployed
MicroStrategy 10 across its enterprise. With about 55,000
associates, more than 1,500 pet stores in the United States, Canada
and Puerto Rico, and 204 in-store PetSmart PetsHotel® dog and cat
boarding facilities, PetSmart turned to MicroStrategy’s mobile
capabilities to empower its workforce and inform executives. The
retailer has used MicroStrategy’s technology for nearly a decade
and made the decision to upgrade to MicroStrategy 10. PetSmart
launched its first internal mobile app in 2010 and now has nearly
20 internal apps built on MicroStrategy that are delivering key
insights to senior leaders and associates across the
enterprise.
“We deployed our first MicroStrategy Mobile app about seven
years ago and since then are improving data accessibility across
our enterprise,” said Brian Rensing, Sr. Director, Enterprise
Information Management, PetSmart. “A mobile approach to our data
analytics and business intelligence strategy dramatically increases
our efficiency and puts insights into the palm of our associates’
hands. A wide range of users access our internal BI apps every day
– even multiple times a day – including senior leaders, field
associates, distribution center and store managers and associates
across all functions of the company such as finance, marketing, HR
and Store Ops. We are streamlining reporting with insightful and
actionable data through our mobile apps and dashboards.”
PetSmart’s first mobile analytics app was deployed to improve
data accessibility among executives and distribution center
leaders. Rather than stopping at a single app, PetSmart continued
to expand its use of the MicroStrategy Mobile platform and now has
almost a dozen iPhone apps and five iPad apps, allowing the company
to democratize data beyond executives to district managers,
regional vice presidents, and field and store leaders.
Crate and Barrel Chose MicroStrategy for “Real-time, Modern
BI Solution at Enterprise Scale”
In February 2017, MicroStrategy announced that Crate and Barrel,
an industry-leading home furnishings specialty retailer, chose
MicroStrategy 10 to power its analytics and mobility applications,
beginning with its store operations, finance, and planning and
allocation departments. Crate and Barrel switched to MicroStrategy
for its data analytics needs so business users can gain real-time
access to BI tools, even while they speak with customers in stores.
The rollout of Crate and Barrel’s mobile and analytics tools put
the power of MicroStrategy 10 in the hands of executives,
merchants, analysts and store managers in 170 Crate and Barrel
stores throughout the United States.
“Because MicroStrategy 10 gives us mobile functionality,
real-time data access, and self-service features at enterprise
scale, we can fundamentally change business reporting and the
customer shopping experience for the better,” said Mike Relich,
COO, Crate and Barrel. “We’re getting MicroStrategy 10 in the hands
of our store and field managers via tablet apps so store associates
have inventory and sales data precisely when customers need it. At
an enterprise level, MicroStrategy 10 also moves our organization
away from static reporting, with real-time, self-service tools to
unlock strategic insights.”
With MicroStrategy 10’s self-service model, Crate and Barrel’s
business users are creating reports on demand. They are quickly
accessing intuitive and timely reports, and mining data for
insights. Additionally, store and field managers have more
impactful conversations with employees by accessing real-time data
on their mobile devices.
InfoCepts’ Team of Consultants Certified on MicroStrategy
10
In January 2017, MicroStrategy and InfoCepts, a leading
developer of business intelligence and data warehousing systems,
announced that 450 InfoCepts consultants were certified on
MicroStrategy 10. With this certification, InfoCepts consultants
are equipped to provide expert technical counsel and data support
to organizations seeking an enterprise-grade analytics solution or
looking to stay current with the newest functionality and features
offered in the latest version of the MicroStrategy platform.
“MicroStrategy 10 provides features and updates that our
customers need in order to implement successful business
intelligence programs and make the most of their data,” said Rohit
Bhayana, Managing Partner, InfoCepts. “With a strong team of
certified consultants, we’re affirming our responsibility to our
customer’s unique data needs and optimizing their enterprise
analytics solutions for maximum return on investment.”
InfoCepts’ consulting expertise on MicroStrategy’s software
solutions spans a wide range of business intelligence needs. The
firm offers strategic planning and business case development,
custom dashboard and mobile app development, 24-hour system
support, and more. Consultants work with some of the world’s
largest companies across a number of industries, including retail,
media and entertainment, life sciences, telecommunications,
manufacturing and CPG.
Data Analytics Reseller QueBIT Adds MicroStrategy to its
Portfolio of Solutions
In January 2017, MicroStrategy announced that QueBIT, a leading
data analytics reseller and consulting group, began offering the
MicroStrategy 10 platform. QueBIT sells existing data analytics
solutions and advises nearly 500 organizations on which products to
implement. Focused on working with businesses across a wide range
of industries—including education, banking, healthcare, life
sciences and manufacturing—QueBIT also provides training sessions,
as well as their own solutions and FrameWORQ products.
Gary Quirke, Chief Executive Officer of QueBIT stated, “QueBIT
is delighted to have entered into a business partnership with
MicroStrategy. We have admired the MicroStrategy enterprise
software platform for many years and believe that MicroStrategy’s
vision for next-generation mobile analytics sets them apart in an
increasingly disruptive marketplace. We believe technologies like
Usher™ will be game-changing for our customers as we enter the era
of the third platform and the Internet of Things.”
Non-GAAP Financial Measure
MicroStrategy is providing a supplemental financial measure for
income from continuing operations that excludes the impact of
share-based compensation arrangements and restructuring activities.
This financial measure is not a measurement of financial
performance under generally accepted accounting principles in the
United States (“GAAP”) and, as a result, this financial measure may
not be comparable to similarly titled measures of other companies.
Management uses this non-GAAP financial measure internally to help
understand, manage and evaluate business performance and to help
make operating decisions. MicroStrategy believes that this non-GAAP
financial measure is also useful to investors and analysts in
comparing its performance across reporting periods on a consistent
basis because it excludes a significant non-cash expense that
MicroStrategy believes is not reflective of its general business
performance and restructuring charges that we believe are not
reflective of ongoing operating results. In addition, accounting
for share-based compensation arrangements requires significant
management judgment and the resulting expense could vary
significantly in comparison to other companies. Therefore,
MicroStrategy believes the use of this non-GAAP financial measure
can also facilitate comparison of MicroStrategy’s operating results
to those of its competitors.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy (Nasdaq: MSTR) is a leading
worldwide provider of enterprise analytics and mobility software.
The Company’s mission is to provide enterprise customers with a
world-class software platform and expert services so they can
deploy unique intelligence applications. To learn more, visit
MicroStrategy online, and follow us on Facebook and Twitter.
MicroStrategy, MicroStrategy 10.7, MicroStrategy 10.6,
MicroStrategy 10.4, MicroStrategy 10, MicroStrategy Web,
MicroStrategy Mobile, MicroStrategy Desktop, and Usher are either
trademarks or registered trademarks of MicroStrategy Incorporated
in the United States and certain other countries. Other product and
company names mentioned herein may be the trademarks of their
respective owners.
This press release may include statements that may constitute
“forward-looking statements,” including estimates of future
business prospects or financial results and statements containing
the words “believe,” “estimate,” “project,” “expect” or similar
expressions. Forward-looking statements inherently involve risks
and uncertainties that could cause actual results of MicroStrategy
Incorporated and its subsidiaries (collectively, the “Company”) to
differ materially from the forward-looking statements. Factors that
could contribute to such differences include: the extent and timing
of market acceptance of MicroStrategy’s new offerings, including
MicroStrategy 10.7; the Company’s ability to recognize revenue or
deferred revenue through delivery of products or satisfactory
performance of services; continued acceptance of the Company’s
other products in the marketplace; fluctuations in tax benefits or
provisions; the timing of significant orders; delays in or the
inability of the Company to develop or ship new products;
competitive factors; general economic conditions, including
economic uncertainty in the retail industry, in which the Company
has a significant number of customers; currency fluctuations; and
other risks detailed in the Company’s registration statements and
periodic reports filed with the Securities and Exchange Commission.
By making these forward-looking statements, the Company undertakes
no obligation to update these statements for revisions or changes
after the date of this release.
MSTR-F
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share data) Three Months Ended
March 31, 2017 2016 (unaudited) (unaudited)
Revenues Product licenses $ 21,012 $ 22,399 Subscription
services 7,772 7,354 Total product
licenses and subscription services 28,784 29,753 Product support
70,490 68,497 Other services 21,302 20,765
Total revenues 120,576
119,015 Cost of revenues Product
licenses 1,672 2,136 Subscription services 3,039
3,092 Total product licenses and subscription
services 4,711 5,228 Product support 4,334 3,273 Other services
14,087 14,322
Total cost of
revenues 23,132 22,823
Gross profit 97,444
96,192 Operating expenses Sales
and marketing 39,410 36,577 Research and development 18,426 17,575
General and administrative 20,257 22,219 Restructuring costs
- 25
Total operating expenses
78,093 76,396 Income
from operations 19,351 19,796 Interest income,
net 837 403 Other expense, net (1,856 ) (1,668 )
Income before income taxes 18,332 18,531
Provision for income taxes 3,465 4,259
Net income $ 14,867 $
14,272 Basic earnings per share (1):
$ 1.30 $ 1.25 Weighted
average shares outstanding used in computing basic earnings per
share
11,439 11,408
Diluted earnings per share (1): $ 1.28
$ 1.24 Weighted average shares
outstanding used in computing diluted earnings per share
11,593 11,479 (1) Basic
and fully diluted earnings per share for class A and class B common
stock are the same.
MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS (in thousands, except per
share data) March 31,
December 31, 2017 2016* Assets
(unaudited) Current assets Cash and cash equivalents $ 358,676 $
401,975 Restricted cash 851 737 Short-term investments 259,816
187,408 Accounts receivable, net 73,394 83,319 Prepaid expenses and
other current assets 11,718 11,548
Total current assets 704,455 684,987 Property and equipment,
net 55,811 57,436 Capitalized software development costs, net 6,998
8,497 Deposits and other assets 5,639 5,695 Deferred tax assets,
net 13,633 11,704
Total Assets
$ 786,536 $ 768,319
Liabilities and Stockholders' Equity Current
liabilities Accounts payable and accrued expenses $ 20,794 $ 36,628
Accrued compensation and employee benefits 33,111 43,323 Deferred
revenue and advance payments, net 132,047
105,535 Total current liabilities 185,952 185,486
Deferred revenue and advance payments, net 12,634 13,915 Other
long-term liabilities 15,614 16,447 Deferred tax liabilities
300 294
Total Liabilities
214,500 216,142
Stockholders' Equity
Preferred stock undesignated, $0.001 par
value; 5,000 shares authorized; no shares issued or outstanding
- -
Class A common stock, $0.001 par value;
330,000 shares authorized; 15,812 shares issued and 9,407 shares
outstanding, and 15,805 shares issued and 9,400 shares outstanding,
respectively
16 16
Class B convertible common stock, $0.001
par value; 165,000 shares authorized; 2,035 shares issued and
outstanding, and 2,035 shares issued and outstanding,
respectively
2 2 Additional paid-in capital 548,184 543,974 Treasury stock, at
cost; 6,405 shares (475,184 ) (475,184 ) Accumulated other
comprehensive loss (9,961 ) (10,743 ) Retained earnings
508,979 494,112
Total Stockholders'
Equity 572,036 552,177
Total Liabilities and Stockholders' Equity $
786,536 $ 768,319
* Derived from audited financial statements.
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Three Months Ended March 31,
2017 2016 (unaudited) (unaudited)
Operating
activities: Net income $ 14,867 $ 14,272 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 3,818 4,553 Bad debt expense 1,044
531 Deferred taxes (1,812 ) 688 Share-based compensation expense
3,115 1,504 Excess tax benefits from share-based compensation
arrangements - (1,266 ) Changes in operating assets and
liabilities: Accounts receivable 9,584 11,915 Prepaid expenses and
other current assets (58 ) (3,551 ) Deposits and other assets 75 4
Accounts payable and accrued expenses (16,295 ) (3,093 ) Accrued
compensation and employee benefits (10,795 ) (4,083 ) Accrued
restructuring costs - (26 ) Deferred revenue and advance payments
23,811 30,065 Other long-term liabilities (833 ) (686
) Net cash provided by operating activities 26,521 50,827
Investing activities: Proceeds from redemption of short-term
investments 91,140 63,500 Purchases of property and equipment (820
) (193 ) Purchases of short-term investments (163,421 )
(97,417 ) Net cash used in investing activities (73,101 )
(34,110 )
Financing activities: Proceeds from sale of
class A common stock under exercise of employee stock options 1,095
241 Payment of taxes relating to net exercise of employee stock
options - (3,739 ) Excess tax benefits from share-based
compensation arrangements - 1,266 Payments on capital lease
obligations and other financing arrangements (6 )
(122 ) Net cash provided by (used in) financing activities 1,089
(2,354 )
Effect of foreign exchange rate changes on cash,
cash equivalents, and restricted cash 2,306
2,266
Net (decrease) increase in cash, cash
equivalents, and restricted cash (43,185 ) 16,629
Cash, cash
equivalents, and restricted cash, beginning of period
402,712 292,959
Cash, cash equivalents, and
restricted cash, end of period $ 359,527 $ 309,588
MICROSTRATEGY
INCORPORATED REVENUE AND COST OF REVENUE DETAIL (in
thousands) Three Months Ended March
31, 2017 2016 (unaudited) (unaudited)
Revenues Product licenses and subscription services: Product
licenses $ 21,012 $ 22,399 Subscription services 7,772
7,354 Total product licenses and subscription services
28,784 29,753 Product support 70,490 68,497 Other
services: Consulting 19,046 18,486 Education 2,256
2,279 Total other services 21,302 20,765
Total
revenues 120,576 119,015
Cost of revenues Product licenses and subscription services:
Product licenses 1,672 2,136 Subscription services 3,039
3,092 Total product licenses and subscription services
4,711 5,228 Product support 4,334 3,273 Other
services: Consulting 12,417 13,033 Education 1,670
1,289 Total other services 14,087 14,322
Total
cost of revenues 23,132 22,823
Gross profit $ 97,444 $
96,192
MICROSTRATEGY INCORPORATED DEFERRED REVENUE DETAIL
(in thousands) March 31, December
31, March 31, 2017 2016* 2016
(unaudited) (unaudited)
Current: Deferred product licenses
revenue $ 11,305 $ 13,023 $ 13,088 Deferred subscription services
revenue 18,139 18,303 17,593 Deferred product support revenue
167,933 162,781 164,667 Deferred other services revenue
9,210 10,015 7,411 Gross current
deferred revenue and advance payments 206,587 204,122 202,759 Less:
unpaid deferred revenue (74,540 ) (98,587 )
(71,322 ) Net current deferred revenue and advance payments $
132,047 $ 105,535 $ 131,437
Non-current: Deferred product licenses revenue $ 8,455 $
9,118 $ 7,573 Deferred subscription services revenue 961 1,307
2,340 Deferred product support revenue 6,595 5,751 6,425 Deferred
other services revenue 760 690
755 Gross non-current deferred revenue and advance payments
16,771 16,866 17,093 Less: unpaid deferred revenue (4,137 )
(2,951 ) (6,910 ) Net non-current deferred revenue
and advance payments $ 12,634 $ 13,915 $ 10,183
Total current and non-current: Deferred
product licenses revenue $ 19,760 $ 22,141 $ 20,661 Deferred
subscription services revenue 19,100 19,610 19,933 Deferred product
support revenue 174,528 168,532 171,092 Deferred other services
revenue 9,970 10,705 8,166
Gross current and non-current deferred revenue and advance
payments 223,358 220,988 219,852 Less: unpaid deferred revenue
(78,677 ) (101,538 ) (78,232 ) Net current and
non-current deferred revenue and advance payments $ 144,681
$ 119,450 $ 141,620
* Derived from
audited financial statements.
MICROSTRATEGY INCORPORATED RECONCILIATION OF GAAP TO
NON-GAAP MEASURES (in thousands) Three
Months Ended March 31, 2017 2016
(unaudited) (unaudited)
Reconciliation of non-GAAP income
from operations: Income from operations $ 19,351 $ 19,796
Share-based compensation expense 3,115 1,504 Restructuring costs
- 25 Non-GAAP income from operations $ 22,466 $
21,325
MICROSTRATEGY INCORPORATED WORLDWIDE
EMPLOYEE HEADCOUNT
March 31, June 30,
September 30, December 31, March 31,
2016 2016 2016 2016 2017
Subscription services 37 39 49 48 41 Product support 135 156 162
171 185 Consulting 455 452 458 453 447 Education 31 31 35 39 41
Sales and marketing 531 541 571 587 620 Research and development
499 532 528 512 522 General and administrative 317 314 317 323 306
Total headcount 2,005 2,065 2,120 2,133 2,162
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version on businesswire.com: http://www.businesswire.com/news/home/20170427006607/en/
MicroStrategy IncorporatedInvestor RelationsClaudia Cahill,
703-848-8600ir@microstrategy.com
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