TYSONS CORNER, Va.,
Jan. 27, 2016 /PRNewswire/
-- MicroStrategy® Incorporated (Nasdaq: MSTR), a leading
worldwide provider of enterprise software platforms, today
announced financial results for the three-month period ended
December 31, 2015 (the fourth quarter
of its 2015 fiscal year).
Fourth quarter 2015 revenues were $143.5
million versus $148.9 million
for the fourth quarter of 2014, a 4% decrease. Product
licenses and subscription services revenues for the fourth quarter
of 2015 were $49.1 million versus
$40.7 million for the fourth quarter
of 2014, a 20% increase. Product support revenues for the
fourth quarter of 2015 were $70.3
million versus $74.6 million
for the fourth quarter of 2014, a 6% decrease. Other services
revenues for the fourth quarter of 2015 were $24.2 million versus $33.5
million for the fourth quarter of 2014, a 28%
decrease. Foreign currency headwinds continued to have a
negative impact on revenues for the fourth quarter of 2015.
Operating expenses for the fourth quarter of 2015 were
$74.2 million versus $84.1 million for the fourth quarter of 2014, a
12% decrease. Fourth quarter 2015 operating expenses included
less than $0.1 million in
restructuring costs, as compared to $3.2
million in restructuring costs in the fourth quarter of
2014. In addition, MicroStrategy did not capitalize any
software development costs during the fourth quarter of 2015, as
compared to $6.1 million in software
development costs capitalized during the fourth quarter of
2014.
Income from operations for the fourth quarter of 2015 was
$45.9 million, as compared to income
from operations of $33.2 million for
the fourth quarter of 2014. Net income for the fourth quarter
of 2015 was $39.1 million, or
$3.38 per share on a diluted basis,
as compared to net income of $22.7
million, or $1.99 per share on
a diluted basis, for the fourth quarter of 2014.
Non-GAAP income from operations, which excludes share-based
compensation expense and restructuring costs, was $50.7 million for the fourth quarter of 2015
versus $39.6 million for the fourth
quarter of 2014.
As of December 31, 2015,
MicroStrategy had cash and cash equivalents and short-term
investments of $485.7 million, as
compared to $345.5 million as of
December 31, 2014, an increase of
$140.2 million. As of
December 31, 2015, MicroStrategy had
9.4 million shares of class A common stock and 2.0 million shares
of class B common stock outstanding.
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 and twelve months ended December 31, 2015 and 2014. An explanation of
this non-GAAP measure is also included under the heading "Non-GAAP
Financial Measure" below.
Conference Call
MicroStrategy will be discussing its fourth quarter 2015
financial results on a conference call today beginning at
approximately 5:00 p.m. EST. To
access the conference call, dial (844) 824-7425 (domestically) or
(716) 220-9429 (internationally) and use conference ID 24967509.
A live webcast and replay of the conference call will be
available under the "Events & Presentations" 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 February 1, 2016 at
(855) 859-2056 (domestically) or (404) 537-3406 (internationally)
using the passcode 24967509. An archived webcast will also be
available under the "Events & Presentations" section on
MicroStrategy's investor relations website at
http://ir.microstrategy.com/events.cfm.
Management Reorganization
As announced on January 8, 2016,
the Company implemented a reorganization of its management team,
which is intended to further streamline the business. The
reorganization enabled the Company to eliminate a layer of
management and is designed to better position the business for
profitable growth in the year ahead. This streamlining
resulted in the departures of former President, Paul N. Zolfaghari, and former President and
Chief Legal Officer, Jonathan F.
Klein. "Paul and Jonathan both made valuable
contributions to the Company during their tenures.
MicroStrategy is grateful for their service and wishes them well,"
said Michael J. Saylor, Chairman and
Chief Executive Officer of MicroStrategy.
MicroStrategy Unveiled MicroStrategy 10.2™
MicroStrategy unveiled MicroStrategy 10.2, the latest release of
its groundbreaking enterprise analytics platform, which became
generally available on December 23,
2015. Version 10.2 delivers a collection of enhancements
across the entire platform, with a focus on making application
development faster.
With the latest release, MicroStrategy 10 Secure Enterprise™
makes it easier for users to build apps and dashboards, find
answers, and complete tasks faster. The new features in version
10.2 include simpler D3 visualization workflows and novel
collaboration options that allow business analysts to easily add
annotations or comments while sharing dashboards via MicroStrategy
Desktop™. The release also features customizable home screens with
MicroStrategy Web™, reusable themes for documents, replaceable
datasets, auto partitioning of in-memory cubes, and more. Features
new to MicroStrategy Mobile™ include enhanced drilling, offline
prompt support, mobile subscriptions for iOS, and improvements to
the native MicroStrategy Mobile app that is also available for
Android. To learn more about these new features, visit:
www.microstrategy.com/analytics. To register for the "What's
New in MicroStrategy 10.2" webcast, visit:
https://info2.microstrategy.com/WhatsNewin102.
With its cadence of new product releases rolled out
approximately every three months, MicroStrategy has been able to
offer new features and enhancements to its global customer base on
a regular basis. MicroStrategy 10.2 provides a number of key
improvements, all of which will be highlighted on the "What's New
in MicroStrategy 10.2" webcast. MicroStrategy 10.2 will be featured
at MicroStrategy World 2016, the company's annual user conference
taking place February 8-10, 2016 in
Miami, FL. To register for
MicroStrategy World 2016,
visit: http://www.microstrategy.com/us/learn/world-2016.
MicroStrategy Released Usher™ 3.0 Enterprise Security
Platform
In October 2015, MicroStrategy
announced the release of Usher 3.0. Usher is a powerful enterprise
security platform that provides advanced security for both logical
and physical access, deep identity analytics for business
productivity and security, and the ability to locate and
communicate with users. Usher 3.0 features a new and intuitive
badge design that delivers remarkable ease-of-use together with
substantial new capabilities.
Usher replaces physical badges, passwords, and keys. The
platform also allows people to move through the enterprise based on
their roles and context using digital security badges available as
an app on their mobile devices. Highlights of the new Usher
3.0 release include:
- Seamless Badge Navigation: Users can scroll through all
their badges by swiping left or right, making badges easy to use
and intuitive.
- Functionality with a Tap: All core Usher functions are
now on the bottom toolbar of the app, enabling users to easily
access their favorite keys, open the QR code scanner, and adjust
settings with a simple tap.
- Badge Dossier: By tapping on the badge, users can now
access all the extended details of their badges. This new page
lists badge credentials, badge security settings, user validation,
and additional information configurable by organizations.
- Location Aware Keys: Usher will be able to display the
digital key most relevant for where you happen to be. This makes it
even easier to use the key you need when you need it.
- Multi-Server Support: The app will be able to register
multiple instances of the Usher Security Server and enable power
users to switch between servers with ease. For example, users
who have Usher badges both for work and for personal use would be
able to access both sets of badges in the same app on the same
phone.
- Enhanced Privacy Controls: This new version gives more
granular privacy controls to users while still complying with an
organization's digital security badge controls and configurations.
This gives the user the ability to modify the user's location
access settings with Usher. It also allows administrators to
require Bluetooth and location services be turned on in order to
use a particular badge.
Available on-premise and in the cloud, the Usher platform also
offers a robust Software Development Kit (SDK), enabling developers
to build Usher security, analytics and productivity capabilities
into their existing mobile applications, web applications, and
enterprise software packages.
Usher 3.0 for iPhone is now available for download in the iTunes
app store and Google Play store. To get started with Usher
and set up Usher identities for your organization, please visit
http://usher.com.
MicroStrategy Announced Teradata Support for Governed Data
Discovery
In October 2015, MicroStrategy
announced that its joint customers with Teradata Corporation (NYSE:
TDC) will be able to benefit from governed data discovery and
sub-second response rates. With the new release, in addition
to benefitting from the new enhancements and features available
with MicroStrategy 10.2, joint customers will be able to leverage
the relatively new native and optimized Teradata connector that was
previously introduced with version 10.1.
"Companies in every industry possess astounding amounts of data,
with those data volumes expected to grow exponentially in the
foreseeable future," said Sean
Slack, Vice President Global Alliances and Strategic
Partnerships, Teradata. "When customers use MicroStrategy
together with Teradata, they are positioned to scale to the rising
data requirements tied to the future of enterprise software and Big
Data analytics. MicroStrategy is a dedicated partner that
understands how crucial it is for our joint customers to transform
their Big Data into useful insights so they can make meaningful
decisions about their customers, products, competitors, and
markets. With MicroStrategy 10 and the Teradata Database,
leading companies can harness our combined technologies to run more
efficiently, innovate more rapidly, and serve customers more
effectively."
Governed data discovery with enterprise sources like Teradata's
is one of the many key improvements delivered in the latest
release, making it easy for business users to discover, analyze,
and distribute valid analytics throughout an organization. With
MicroStrategy 10, Teradata customers can deploy self-service
analytics to the entire organization, giving business users the
ability to promote data mashups or dashboards to a centralized
environment. Business users also have the ability to swap out
localized data with trusted and modeled Teradata enterprise data to
ensure consistent KPIs across the deployment. From there, business
users can easily share their findings in a personalized manner
using powerful dashboard and report delivery options available with
MicroStrategy.
In addition to governed data discovery, MicroStrategy users will
benefit from sub-second response rates while accessing relational
data with optimized and native Teradata connectors, and also
leverage the processing power of Teradata to the fullest extent by
intelligently pushing data joins and complex calculations to the
Teradata database when possible. In this way, customers of
MicroStrategy and Teradata gain the speed and flexibility of data
discovery without sacrificing the scalability, security, and trust
of a governed enterprise analytics environment.
Successful Deployment of MicroStrategy Mobile Demonstrates
Mobile Technology Best Practices
In December 2015, MicroStrategy
announced that its customer Houghton Mifflin Harcourt (HMH) won the
2015 Ventana Research Leadership award in the Mobile Technology
category. Houghton Mifflin Harcourt is a Boston-based learning company serving more
than 50 million students in over 150 countries worldwide. The 2015
Leadership award recognizes the work of HMH's Trade Publishing
group, best known for award-winning novels, non-fiction, reference,
children's titles and characters, including Curious George®, The
Hobbit and Better Homes and Gardens.
Houghton Mifflin Harcourt Trade Publishing's mobile reporting
app, INsight, provides employees in the editorial, sales and
finance groups with critical information to optimize business
decisions and sales force productivity. Employees have a 360-degree
view of customer, product, author and sales territory
information. For instance, a sales rep can pull up a daily
sales dashboard on an iPad device, and with a swipe or tap, track
title inventory status, customer sales activity and orders in the
pipeline. Financial analysts can measure product line
performance against prior year actuals and current year budgets,
and HMH's senior vice president of sales can monitor the sales
performance of the most recent best seller across all
customers.
"With a mission to empower our sales organization, we created
mobile apps using MicroStrategy Mobile to give our sales reps
customized dashboards specific to their territory," said
Vince Benenati, Vice President of
Business Operations, HMH Trade Publishing. "Our sales reps now have
an agile and intuitive tool to manage their accounts, check the
status of an order and quickly identify relevant titles for a
specific customer. At a moment's notice, our mobile users can
pull up title information and divisional performance, anytime,
anywhere."
Building on INsight's success in 2015, Benenati and his group
added a forecasting model to the app that projects sales patterns,
giving the sales organization intelligence on how a given title
might perform based on the sales history of a comparative
title. According to Benenati, such insight is also useful for
inventory planners to conservatively estimate a title's print
run.
Weiler Corporation Turns Up Efficiencies and Sales
Performance with MicroStrategy Analytics™
In October 2015, MicroStrategy
announced that Weiler Corporation, a global manufacturer based in
Cresco, PA, successfully deployed
MicroStrategy Analytics across its business to improve operational
efficiencies and sales performance. Weiler Corporation is a
world-class industry leader and global manufacturer of surface
conditioning solutions.
Employees across Sales, Marketing, Supply Chain, Operations, HR,
and Finance use MicroStrategy Analytics to pull up actionable
reports and dashboards. Weiler employees are able to run an overall
equipment effectiveness report to see how well their machines are
performing and based on the data, automate staffing for Weiler's
machinery. With MicroStrategy's new data wrangling feature,
users can see and analyze pipeline data that's embedded in
Salesforce.com, in the warehouse, or in another system, without
having to exit that application and run another separate
report. With greater insight, Weiler is able to engage with
its channel partners and share meaningful, interactive data about
trends in the business.
"The ability to combine all of our data in our dashboards and
reports embedded within Salesforce.com and not have to move data
and combine it into one report provides a lot of value for our
users," said Bill Dwyre, Vice
President Strategic Marketing at Weiler Corporation. "Our
salespeople use MicroStrategy daily to see their personal
dashboards within the opportunity pipeline. They can drill into any
dips or spikes across their accounts, products, markets or
territories, and react quickly to close gaps."
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 share-based compensation expense that
MicroStrategy believes is not reflective of its general business
performance and significant 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 software platforms. The
Company's mission is to provide enterprise analytics, mobility, and
security platforms that are flexible, powerful, scalable, and
user-friendly. To learn more, visit MicroStrategy online, and
follow us on Facebook and Twitter.
MicroStrategy, MicroStrategy 10, MicroStrategy 10 Secure
Enterprise, MicroStrategy 10.1, MicroStrategy 10.2, MicroStrategy
Mobile, MicroStrategy Analytics, MicroStrategy Desktop,
MicroStrategy Web, Usher and Usher 3.0 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 10.2; the impact on our business of the
restructuring plan we adopted in the third quarter of 2014;
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
Contact:
MicroStrategy Incorporated
Investor Relations
ir@microstrategy.com
(703) 848-8600
MICROSTRATEGY
INCORPORATED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
$
41,509
|
|
$
34,744
|
|
$
119,143
|
|
$
125,952
|
Subscription
services
|
|
7,554
|
|
6,005
|
|
27,839
|
|
22,322
|
Total product
licenses and subscription services
|
|
49,063
|
|
40,749
|
|
146,982
|
|
148,274
|
Product
support
|
|
70,296
|
|
74,634
|
|
281,740
|
|
295,703
|
Other
services
|
|
24,163
|
|
33,488
|
|
101,147
|
|
135,853
|
Total
revenues
|
|
143,522
|
|
148,871
|
|
529,869
|
|
579,830
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
2,223
|
|
1,501
|
|
8,118
|
|
6,957
|
Subscription
services
|
|
3,251
|
|
3,731
|
|
13,051
|
|
17,560
|
Total product
licenses and subscription services
|
|
5,474
|
|
5,232
|
|
21,169
|
|
24,517
|
Product
support
|
|
3,014
|
|
3,528
|
|
12,748
|
|
14,241
|
Other
services
|
|
14,926
|
|
22,875
|
|
67,191
|
|
96,452
|
Total cost
of revenues
|
|
23,414
|
|
31,635
|
|
101,108
|
|
135,210
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
120,108
|
|
117,236
|
|
428,761
|
|
444,620
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
39,380
|
|
47,058
|
|
148,522
|
|
225,086
|
Research and
development
|
|
17,155
|
|
13,886
|
|
65,206
|
|
103,355
|
General and
administrative
|
|
17,661
|
|
19,967
|
|
80,732
|
|
96,343
|
Restructuring
costs
|
|
18
|
|
3,154
|
|
279
|
|
14,732
|
Total
operating expenses
|
|
74,214
|
|
84,065
|
|
294,739
|
|
439,516
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
45,894
|
|
33,171
|
|
134,022
|
|
5,104
|
Interest
income, net
|
|
155
|
|
29
|
|
284
|
|
162
|
Other income,
net
|
|
957
|
|
2,449
|
|
3,558
|
|
5,785
|
Income before
income taxes
|
|
47,006
|
|
35,649
|
|
137,864
|
|
11,051
|
Provision for
income taxes
|
|
7,895
|
|
12,950
|
|
31,933
|
|
6,016
|
Net
income
|
|
$
39,111
|
|
$
22,699
|
|
$
105,931
|
|
$
5,035
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (1):
|
|
$
3.44
|
|
$
2.01
|
|
$
9.33
|
|
$
0.45
|
Weighted average
shares outstanding used in computing basic earnings per
share
|
|
11,386
|
|
11,302
|
|
11,355
|
|
11,301
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share (1):
|
|
$
3.38
|
|
$
1.99
|
|
$
9.18
|
|
$
0.44
|
Weighted average
shares outstanding used in computing diluted earnings per
share
|
|
11,577
|
|
11,409
|
|
11,539
|
|
11,356
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014*
|
Assets
|
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
292,341
|
|
$
146,919
|
Restricted
cash
|
|
618
|
|
661
|
Short-term
investments
|
|
193,320
|
|
198,547
|
Accounts
receivable, net
|
|
68,154
|
|
78,633
|
Prepaid
expenses and other current assets
|
10,881
|
|
17,669
|
Deferred tax
assets, net
|
|
-
|
|
19,936
|
Total current
assets
|
|
565,314
|
|
462,365
|
|
|
|
|
|
Property and
equipment, net
|
|
65,664
|
|
77,852
|
Capitalized software
development costs, net
|
15,855
|
|
13,469
|
Deposits and other
assets
|
|
2,072
|
|
3,951
|
Deferred tax assets,
net
|
|
7,989
|
|
1,160
|
Total
Assets
|
|
$
656,894
|
|
$
558,797
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
31,840
|
|
$
35,458
|
Accrued
compensation and employee benefits
|
40,067
|
|
50,588
|
Accrued
restructuring costs
|
|
56
|
|
2,284
|
Deferred
revenue and advance payments
|
100,695
|
|
108,413
|
Deferred tax
liabilities
|
|
-
|
|
557
|
Total current
liabilities
|
|
172,658
|
|
197,300
|
|
|
|
|
|
Deferred revenue and
advance payments
|
8,995
|
|
10,818
|
Other long-term
liabilities
|
|
19,943
|
|
22,679
|
Deferred tax
liabilities
|
|
17
|
|
3,529
|
Total
Liabilities
|
|
201,613
|
|
234,326
|
|
|
|
|
|
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;
|
|
|
|
15,771 shares issued and 9,366 shares outstanding, and 15,660
shares
|
|
|
|
issued and 9,255 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 2,055 shares issued and outstanding,
respectively
|
2
|
|
2
|
Additional
paid-in capital
|
|
534,651
|
|
506,727
|
Treasury
stock, at cost; 6,405 shares
|
(475,184)
|
|
(475,184)
|
Accumulated
other comprehensive loss
|
(7,408)
|
|
(4,363)
|
Retained
earnings
|
|
403,204
|
|
297,273
|
Total
Stockholders' Equity
|
|
455,281
|
|
324,471
|
Total Liabilities
and Stockholders' Equity
|
$
656,894
|
|
$
558,797
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Operating
activities:
|
|
|
|
|
|
Net income
|
|
$ 105,931
|
|
$ 5,035
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
21,214
|
|
25,295
|
|
|
Bad debt
expense
|
|
884
|
|
2,969
|
|
|
Unrealized net loss
(gain) on foreign currency forward contracts
|
|
1,641
|
|
(1,682)
|
|
|
Non-cash
restructuring costs and adjustments
|
|
(136)
|
|
199
|
|
|
Deferred
taxes
|
|
9,666
|
|
(1,526)
|
|
|
Release of
liabilities for unrecognized tax benefits
|
|
(899)
|
|
-
|
|
|
Share-based
compensation expense
|
|
17,299
|
|
11,786
|
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
(1,096)
|
|
-
|
|
|
Reclassification of
foreign currency translation adjustment from other comprehensive
income
|
|
(280)
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
5,003
|
|
(276)
|
|
|
Prepaid expenses and
other current assets
|
|
4,446
|
|
(2,713)
|
|
|
Deposits and other
assets
|
|
1,631
|
|
909
|
|
|
Accounts payable and
accrued expenses
|
|
1,904
|
|
(1,701)
|
|
|
Accrued compensation
and employee benefits
|
|
(8,387)
|
|
(26,875)
|
|
|
Accrued restructuring
costs
|
|
(1,922)
|
|
2,379
|
|
|
Deferred revenue and
advance payments
|
|
(4,176)
|
|
731
|
|
|
Other long-term
liabilities
|
|
(3,024)
|
|
70
|
|
|
|
Net cash provided by
operating activities
|
|
149,699
|
|
14,600
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Proceeds from
redemption of short-term investments
|
|
479,200
|
|
308,900
|
|
Purchases of property
and equipment
|
|
(3,484)
|
|
(12,400)
|
|
Purchases of
short-term investments
|
|
(473,779)
|
|
(370,050)
|
|
Capitalized software
development costs
|
|
(9,598)
|
|
(8,396)
|
|
Increase in
restricted cash
|
|
(20)
|
|
(164)
|
|
|
|
Net cash used in
investing activities
|
|
(7,681)
|
|
(82,110)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from sale of
class A common stock under exercise of employee stock
options
|
|
9,529
|
|
856
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
1,096
|
|
-
|
|
Payments on capital
lease obligations and other financing arrangements
|
|
(1,447)
|
|
(2,326)
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
9,178
|
|
(1,470)
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(5,774)
|
|
(4,272)
|
Net increase
(decrease) in cash and cash equivalents
|
|
145,422
|
|
(73,252)
|
Cash and cash
equivalents, beginning of period
|
|
146,919
|
|
220,171
|
Cash and cash
equivalents, end of period
|
|
$ 292,341
|
|
$ 146,919
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
REVENUE AND COST
OF REVENUE DETAIL
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
Product licenses
|
|
$
41,509
|
|
$
34,744
|
|
$
119,143
|
|
$
125,952
|
Subscription services
|
|
7,554
|
|
6,005
|
|
27,839
|
|
22,322
|
Total
product licenses and subscription services
|
|
49,063
|
|
40,749
|
|
146,982
|
|
148,274
|
Product
support
|
|
70,296
|
|
74,634
|
|
281,740
|
|
295,703
|
Other
services:
|
|
|
|
|
|
|
|
|
Consulting
|
|
21,590
|
|
30,448
|
|
92,065
|
|
121,958
|
Education
|
|
2,573
|
|
3,040
|
|
9,082
|
|
13,895
|
Total
other services
|
|
24,163
|
|
33,488
|
|
101,147
|
|
135,853
|
Total
revenues
|
|
143,522
|
|
148,871
|
|
529,869
|
|
579,830
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
Product licenses
|
|
2,223
|
|
1,501
|
|
8,118
|
|
6,957
|
Subscription services
|
|
3,251
|
|
3,731
|
|
13,051
|
|
17,560
|
Total
product licenses and subscription services
|
|
5,474
|
|
5,232
|
|
21,169
|
|
24,517
|
Product
support
|
|
3,014
|
|
3,528
|
|
12,748
|
|
14,241
|
Other
services:
|
|
|
|
|
|
|
|
|
Consulting
|
|
13,818
|
|
21,950
|
|
63,344
|
|
90,780
|
Education
|
|
1,108
|
|
925
|
|
3,847
|
|
5,672
|
Total
other services
|
|
14,926
|
|
22,875
|
|
67,191
|
|
96,452
|
Total
cost of revenues
|
|
23,414
|
|
31,635
|
|
101,108
|
|
135,210
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
120,108
|
|
$
117,236
|
|
$
428,761
|
|
$
444,620
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
DEFERRED REVENUE
DETAIL
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014*
|
|
|
|
(unaudited)
|
|
|
|
Current:
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
13,506
|
|
$
10,927
|
|
Deferred subscription
services revenue
|
|
15,763
|
|
16,018
|
|
Deferred product
support revenue
|
|
158,738
|
|
168,833
|
|
Deferred other
services revenue
|
|
9,149
|
|
10,564
|
|
Gross
current deferred revenue and advance payments
|
|
197,156
|
|
206,342
|
|
Less: unpaid deferred
revenue
|
|
(96,461)
|
|
(97,929)
|
|
Net
current deferred revenue and advance payments
|
|
$
100,695
|
|
$
108,413
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
5,397
|
|
$
8,012
|
|
Deferred subscription
services revenue
|
|
2,138
|
|
750
|
|
Deferred product
support revenue
|
|
7,607
|
|
7,505
|
|
Deferred other
services revenue
|
|
795
|
|
1,047
|
|
Gross
non-current deferred revenue and advance payments
|
|
15,937
|
|
17,314
|
|
Less: unpaid deferred
revenue
|
|
(6,942)
|
|
(6,496)
|
|
Net
non-current deferred revenue and advance payments
|
|
$
8,995
|
|
$
10,818
|
|
|
|
|
|
|
|
Total current and
non-current:
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
18,903
|
|
$
18,939
|
|
Deferred subscription
services revenue
|
|
17,901
|
|
16,768
|
|
Deferred product
support revenue
|
|
166,345
|
|
176,338
|
|
Deferred other
services revenue
|
|
9,944
|
|
11,611
|
|
Gross
current and non-current deferred revenue and advance
payments
|
|
213,093
|
|
223,656
|
|
Less: unpaid deferred
revenue
|
|
(103,403)
|
|
(104,425)
|
|
Net
current and non-current deferred revenue and advance
payments
|
|
$
109,690
|
|
$
119,231
|
|
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP income from operations:
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
45,894
|
|
$
33,171
|
|
$
134,022
|
|
$
5,104
|
|
Share-based
compensation expense
|
|
4,796
|
|
3,225
|
|
17,299
|
|
11,786
|
|
Restructuring
costs
|
|
18
|
|
3,154
|
|
279
|
|
14,732
|
|
Non-GAAP income from
operations
|
|
$
50,708
|
|
$
39,550
|
|
$
151,600
|
|
$
31,622
|
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
WORLDWIDE EMPLOYEE
HEADCOUNT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|
|
2014
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
services
|
|
57
|
|
43
|
|
37
|
|
33
|
|
37
|
|
Product
support
|
|
138
|
|
138
|
|
130
|
|
127
|
|
131
|
|
Consulting
|
|
600
|
|
554
|
|
508
|
|
480
|
|
467
|
|
Education
|
|
24
|
|
19
|
|
25
|
|
27
|
|
28
|
|
Sales and
marketing
|
|
662
|
|
577
|
|
515
|
|
507
|
|
513
|
|
Research and
development
|
|
645
|
|
580
|
|
508
|
|
464
|
|
461
|
|
General and
administrative
|
|
344
|
|
321
|
|
303
|
|
301
|
|
310
|
|
Total
headcount
|
|
2,470
|
|
2,232
|
|
2,026
|
|
1,939
|
|
1,947
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE MicroStrategy Incorporated