TYSONS CORNER, Va.,
July 27, 2015 /PRNewswire/
-- MicroStrategy® Incorporated (Nasdaq: MSTR), a leading
worldwide provider of enterprise analytics, mobile, and security
software platforms, today announced financial results for the
three-month period ended June 30,
2015 (the second quarter of its 2015 fiscal year).
Second quarter 2015 revenues were $132.9
million versus $141.9 million
for the second quarter of 2014, a 6% decrease. Product
licenses and subscription services revenues for the second quarter
of 2015 were $36.4 million versus
$35.3 million for the second quarter
of 2014, a 3% increase. Product support revenues for the
second quarter of 2015 were $70.7
million versus $74.6 million
for the second quarter of 2014, a 5% decrease. Other services
revenues for the second quarter of 2015 were $25.8 million versus $32.0
million for the second quarter of 2014, a 20%
decrease. Foreign currency headwinds continued to have a
negative impact on revenues for the second quarter of 2015.
Operating expenses for the second quarter of 2015 were
$72.3 million versus $119.0 million for the second quarter of 2014, a
39% decrease. In addition, during the second quarter of 2015,
MicroStrategy capitalized $4.2
million in costs associated with further development of
MicroStrategy 10 Secure Enterprise™, while no
development costs were capitalized during the second quarter of
2014. MicroStrategy 10 Secure Enterprise was made generally
available in June 2015.
Income from operations for the second quarter of 2015 was
$34.8 million, as compared to a loss
from operations of $12.7 million for
the second quarter of 2014. Net income for the second quarter
of 2015 was $22.5 million, or
$1.95 per share on a diluted basis,
as compared to a net loss of $10.3
million, or $0.91 per share on
a diluted basis, for the second quarter of 2014.
Non-GAAP income from operations, which excludes share-based
compensation expense and restructuring costs, was $39.2 million for the second quarter of 2015, as
compared to a non-GAAP loss from operations of $9.6 million for the second quarter of 2014.
As of June 30, 2015, MicroStrategy
had cash and cash equivalents and short-term investments of
$427.9 million, as compared to
$345.5 million as of December 31, 2014, an increase of $82.4 million. As of June 30, 2015, MicroStrategy had 9.3 million
shares of class A common stock and 2.0 million shares of class B
common stock outstanding.
The table at the end of this press release includes a
reconciliation of income from operations to non-GAAP income from
operations for the three and six months ended June 30, 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 second quarter 2015
financial results on a conference call today beginning at
approximately 6:00 p.m. EDT. To
access the conference call, dial (844) 824-7425 (domestically) or
(716) 220-9429 (internationally) and use conference ID 84898302.
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 August 1, 2015 at
(855) 859-2056 (domestically) or (404) 537-3406 (internationally)
using the passcode 84898302. 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.
MicroStrategy Names Phong Le Chief Financial Officer
MicroStrategy also announced today that it has appointed
Phong Le as its new Senior Executive
Vice President & Chief Financial Officer, effective as of his
start date with the Company, which is expected to be on or about
August 24, 2015. Le will succeed
Douglas K. Thede, who has served as
Chief Financial Officer of the Company since 2009 and who, in
March 2015, announced his intention
to retire from the Company.
Le is currently the chief financial officer of XO
Communications, a privately-held telecommunications company that
owns and operates one of the largest Ethernet and IP networks in
the U.S. Before joining XO Communications, Le held senior
positions, including vice president of financial planning and
analysis and vice president of strategy and business operations, at
NII Holdings, a NASDAQ-listed telecommunications company. Le also
has over ten years' of experience working for Deloitte's consulting
practice. Le holds a B.S. in Biomedical Engineering from
Johns Hopkins University and an M.B.A
from the Sloan School of Management at the
Massachusetts Institute of Technology.
"We are very pleased to welcome Phong to our senior management
team. Phong has strong leadership skills, operational focus, and
experience in taking on strategic roles in addition to leading a
company's financial functions," said Michael J. Saylor, MicroStrategy's Chairman of
the Board of Directors and Chief Executive Officer. "We believe
that he can make significant contributions to MicroStrategy's
strategic plan and operational goals."
"I am thrilled to be a part of MicroStrategy's exciting future,"
said Le. "MicroStrategy is well positioned to take advantage of
developments in Business Analytics and Security, making this a
great time to be joining MicroStrategy's leadership team. I look
forward to helping MicroStrategy enhance shareholder value and
working with our investor community."
MicroStrategy 10 Secure Enterprise Generally Available
Worldwide
In June 2015, MicroStrategy
announced the general availability of MicroStrategy 10 Secure
Enterprise. For the first time, MicroStrategy's analytics platform
combines traditional business intelligence functionality with data
discovery, mobile analytics and powerful enterprise security.
MicroStrategy 10 Secure Enterprise builds on proven enterprise
capabilities to make sophisticated, high-performance analytics more
accessible, easier to use, and faster. To learn more about
MicroStrategy 10 Secure Enterprise, watch this video or visit
MicroStrategy online.
"MicroStrategy 10 Secure Enterprise is a groundbreaking solution
that combines analytics, mobility, and security in a single
integrated platform," said Michael
Saylor, CEO, MicroStrategy Incorporated. "It delivers
outstanding enterprise functionality through an intuitive and
easy-to-use interface for every user that is powerful enough for
the most demanding organizations. We are confident that IT
and business leaders will be impressed with MicroStrategy 10™ and
its ability to create stunning new applications that deliver
tremendous value to the enterprise."
MicroStrategy 10 Secure Enterprise contains a host of new
features and enhanced functionality:
- Revamped data discovery offers enhanced exploration and
visualization capabilities on both Mac OS and Windows. New built-in
data wrangling capabilities enable users to quickly prepare data
for analysis without using other tools.
- New governed data discovery makes it simple to promote
dashboards from the desktop to the enterprise, providing a seamless
path from self-service analytics to enterprise BI.
- New native Hadoop access makes analyzing petabytes of
multi-structured data easy. MicroStategy 10 offers native HDFS
connectivity within a complete enterprise analytics
environment.
- Bigger, better in-memory performance lets users put more
data on parallel-partitioned in-memory cubes, so organizations can
run faster queries across larger volumes of data.
- Completely redesigned HTML5 interface makes self-service
analytics faster, more intuitive, and easier to use, so users can
quickly connect to any data and drag-and-drop their way to business
insights in an instant.
- New Operations Manager enables administrators to
save time and drive efficiency by managing and monitoring all of
their environments from a single interface.
- Cutting-edge platform security, powered by biometric and
multi-factor authentication, provides enhanced security for every
method of analytics delivery, conveniently and seamlessly.
- Convenient user verification with a smartphone app
replaces the need for users to log in with a password.
- Out-of-the-box employee productivity app, built on
MicroStrategy's proprietary telemetry database, gives managers
powerful insight into employee activity and performance.
Version 10 underscores MicroStrategy's commitment to serving the
enterprise analytics needs of global organizations. Here are
what some of our customers and partners have to say about
MicroStrategy 10:
"The new HTML5 interface in version 10 is a game changer," said
Kevin Curley, Executive Director of
Business Intelligence at Catalina Marketing. "The new interface and
functionality have significantly improved the self-service user
experience, while at the same time, have cut the learning curve for
new users. Furthermore, having the ability to easily
integrate with advanced analytics and open source libraries like D3
has significantly increased our ability to visualize data exactly
the way we want."
"We currently rely on the MicroStrategy Analytics Platform™ to
track programming investments, analyze ad and affiliate sales
trends, and review sales team performance," said Madhur Sawhney, Sr. Director Data &
Analytics Technology at Discovery Communications. "After
testing MicroStrategy 10 as an early adopter, our team really likes
the new functionality -- in particular, the ability to easily
wrangle and parse data as well as save/import wrangling scripts
functionality. The enhanced data blending features and
on-the-fly data manipulations made possible with version 10 and
Visual Insight provide incredible speed-of-interactivity and ease
of use."
"MicroStrategy 10 is a workhorse built to support a wide
variety of end users," said Frank
Zhou, Software Development Manager at PayPal. "In
testing, we successfully loaded a cube with over two billion rows
(~400GB) while supporting sub-second query execution and greater
user scalability, thanks to the new high performance in-memory
architecture."
"We have had the opportunity over the last several months to
test the beta version of MicroStrategy 10, and I'm here to tell you
that they got it right with MicroStrategy 10," said Jim Butz, Principal at Southport Services
Group. "MicroStrategy 10 is packed with exceptional
functionality and capabilities, including a redesigned data
discovery interface for easier and better data exploration, native
HDFS connectivity for faster access to Hadoop, and new in-memory
architecture for faster performance. I'm excited about the
upcoming release and seeing how the broader market receives the
latest product offering from MicroStrategy."
"After implementing MicroStrategy 10 as an early adopter, we are
delighted with the cleaner streamlined interface, the new
analytical capabilities, and the ability users now have to
personalize their analytics experience," said Peter Zaballos, Vice President of Marketing
& Product, SPS Commerce. "In the omni-channel retail era our
customers are facing, analytics is critical to understanding the
ever-changing demands of the consumer. The improved accessibility
and rich data visualization capabilities of MicroStrategy 10 will
enable our retail and CPG customers to better track consumer buying
trends and inventory availability to grow their business."
MicroStrategy Unveils MicroStrategy 10 at Worldwide Symposium
Series
In May 2015, MicroStrategy
unveiled its worldwide 2015 Symposium Series focused on presenting
MicroStrategy 10 to the marketplace. MicroStrategy is
presenting version 10's powerful capabilities to symposium
attendees in cities around the world, and providing a complimentary
copy of the new data discovery and visualization product,
MicroStrategy Desktop 10.0, valued at $600, to every attendee. The events, which
are expected to draw thousands of attendees across North America, EMEA, and APAC, will provide
analytics users with a detailed introduction to MicroStrategy
10.
Symposium attendees have the opportunity to attend technical
sessions that drill down into all of the new capabilities of
MicroStrategy 10, and learn how they can be applied to existing
business intelligence applications. The events also feature talks
from local MicroStrategy customers who are giving real-world
examples of how they have used MicroStrategy's enterprise analytics
solution to increase revenues and cut costs at their
organizations.
MicroStrategy Debuts the Usher Software Development
Kit
In April 2015, MicroStrategy
debuted the Usher Software Development Kit (SDK), enabling
developers to build Usher™ security capabilities – including any of
Usher's logical or physical access functionalities – into their
existing mobile applications, web applications, and enterprise
software packages. With the Usher SDK, homegrown applications can
implement sophisticated functionalities like step-up authentication
to restrict sensitive information from unauthorized access or
approval workflows that require biometric validation to help ensure
validity of the approver. The ability to perform authentication and
identity verification tasks unlocks the door to making existing
applications vastly more functional to user bases. In this way,
Usher secures enterprise assets and information, whether through
the standard Usher interfaces or within any application of the
enterprise. The Usher SDK is available from the Usher Developer
Portal at http://developer.usher.com.
Already available in the cloud, Usher can be installed
on-premise to meet business requirements when data must live behind
the corporate firewall. On-premise installation deploys the
complete Usher solution to the enterprise, including the Usher
Security Server, the Usher Network Manager administration app, and
Usher Analytics. End users of an on-premise Usher deployment
acquire applications from the public app stores. To get started
with Usher and set up Usher identities for your organization,
visit: http://www.microstrategy.com/us/security.
Leading organizations that have chosen Usher include SenHeng
Electric subsidiary Blackbox BI Consultancy, Georgetown University, and global incubator
1776.
"Our business at SenHeng is to create a unique customer
experience with our products and services and that is our key
differentiator in the market," said KH Lim, Founder of SenHeng
Electric Sdn Bhd. "Based on our successful deployment of
MicroStrategy's analytics and mobile technologies as cloud-based
analytics solutions, it made sense for us to select MicroStrategy
Usher as an enterprise security offering for today's
security-critical environment. MicroStrategy Usher will be used to
access business processes and applications across the enterprise,
replacing keycards and passwords with mobile identity badges
securely delivered on smartphones. An Usher badge will be used to
identify both SenHeng Electric's customers as well as SenHeng
mobile service's customers. Having a single MicroStrategy platform
for analytics, mobile and identity management will help us create a
new, valuable customer experience."
"We wanted a more secure and efficient method for our students
and administrators to log into university websites and web apps
than the traditional user name and password," said Marty Johnson, Senior Director of Identity,
Collaboration, Mobile, and GOCard at
Georgetown University. "We have deployed Usher, which
integrates with our Shibboleth single sign-on system and allows our
university population to securely sign in to any Georgetown website by simply scanning a QR code
with their mobile phone, eliminating the need for passwords. We are
also working closely with MicroStrategy and the Usher product team
to design a solution to address our costly password reset
problem. Once that work is completed, we expect to see a
significantly reduced number of help desk requests for locked user
accounts and, as a result, to reap substantial cost savings."
"At 1776, we are in the business of identifying
transformational, disruptive startups that can change the world,"
said Stephanie Vidikan, Director of
Operations at 1776. "MicroStrategy's Usher is one of those
products. Startups at 1776's Washington,
D.C. location can use Usher 'keys' on their mobile phones to
unlock doors, elevators, and gateways. We are excited to see how
Usher's features will reinvent how companies manage access to their
physical spaces."
MicroStrategy Releases Usher for Apple Watch, Providing
Enterprise Security Capabilities
In April 2015, MicroStrategy
announced the availability of Usher™ for Apple
Watch. Enterprises deploying Usher are able to use Apple
Watch as a secure digital key, enabling wearers to log into
enterprise business systems, unlock devices, validate personal
identity, and open physical entryways with a simple gesture or
tap.
One of the first Apple Watch integrations directly addressing
the needs of the enterprise, Usher for Apple Watch leverages
the unique features of the Apple Watch, including Glances,
Notifications, and Force Touch, seamlessly enabling the new
device to be used for a broad range of business security
applications. The app is designed to detect a vast
range of business systems, hardware and physical entryways as users
approach. Users receive push notifications on their Apple
Watch prompting them to unlock their workstation, log into a
system, or open a doorway with a simple tap or gesture on the
device.
Usher for Apple Watch is part of the Usher platform,
which launched in early 2015. Usher is an
enterprise-grade security solution that provides secure
authentication for business processes and applications across
the enterprise. The platform replaces traditional forms of identity
such as IDs, passwords, and tokens with biometric mobile
identity and multi-factor authentication, all from a single mobile
app. Usher provides streamlined administrative capabilities
that let organizations easily set up and enforce biometric security
with geo-fencing, time-fencing, and Touch ID access on mobile
devices.
NHS Scotland's Golden
Jubilee National Hospital Uses MicroStrategy to Improve Operations
and Enhance Patient Care
In June 2015, MicroStrategy
announced that NHS Scotland's Golden Jubilee National Hospital
deployed the MicroStrategy Analytics Platform and MicroStrategy
Mobile™ to monitor, report, and analyze over 200 quality indicators
consisting of patient care, staffing, and performance
metrics. Golden Jubilee National Hospital is a Scottish
Health Board, working with the public, private and third sector to
reduce health inequalities and improve health.
"Improving quality care to realize superior patient outcomes is
a journey with many twists and turns, so the enterprise analytics
platform we chose is one that fits our complex needs and will
evolve with us," said Jill Young,
CEO, NHS Scotland's Golden Jubilee National Hospital. "We have
realized numerous benefits from using MicroStrategy in a short
order of time. The platform's comprehensive capabilities allow us
to measure, in detail, the success of our Quality Framework and
inform members of our staff via mobile apps on how they can be more
responsive to our patients. Furthermore, we believe our
Quality Framework, with MicroStrategy as its enterprise analytics
standard, can be a model for adoption at other healthcare
facilities around the world."
In 2013, NHS Scotland's Golden Jubilee National Hospital
replaced its incumbent dashboard and reporting tool with
MicroStrategy's enterprise analytics solution, which today enables
a staff of several hundred -- including directors, clinicians,
doctors, consultants, nurses, and administrative staff -- to easily
analyze patient care, staffing, and performance targets on their
iPad devices, revealing underlying and previously unknown patterns
and interactions between patients and the hospital. With
MicroStrategy, Board committees are able to review employee
performance and make decisions that improve management and
effectiveness. Hospital administrators can drill into the top
30-40 quality indicators in great detail and easily make informed
decisions to enhance patient care. In addition, nurses and
other administrative staff are using survey data that patients
complete upon the end of their stay to make adjustments that
improve the overall patient experience.
MicroStrategy Mobile empowers staff members to quickly view,
collect, and update information anywhere, from the boardroom to the
ward. Specifically, hospital staff are able to:
- Update data anywhere, and at any time, improving data
accuracy and preventing data loss.
- Receive alerts within the app when data reaches critical
levels, e.g. an outpatient gives negative feedback in an exit
survey.
- View all key quality indicators in one screen to get a
quick overview of hospital performance in real-time.
- Easily interpret detailed information with stunning data
visualizations.
- Securely update and share information with relevant
staff members.
NHS Scotland's Golden Jubilee
National Hospital considers MicroStrategy a key component of its
overall vision to lead quality, research and innovation for NHS
Scotland through a new Quality Framework. Scotland has set the benchmark for adopting
innovative approaches to improving health care at a large scale
through its Scottish Patient Safety Programme. The Golden
Jubilee reports significant improvements for efficiency, safety,
and person-centered service delivery, and has been a key
contributor in helping Scotland to
reduce patient mortality by 12% and Clostridium difficile (c-diff)
infections by 77% and to nearly completely eliminate MRSA. A
number of specialties at the hospital have reduced patient length
of stay, and 98% of its patients indicate they are treated with
care, respect, and dignity.
Admiral Group Selects MicroStrategy Analytics Platform for
New Policy Administration System, Deploys Dashboards to
Thousands
In April 2015, MicroStrategy
announced that leading UK car insurance provider Admiral Group,
with headquarters in Cardiff,
Wales, selected the MicroStrategy Analytics Platform for its
new policy administration system. Admiral Group, which
insures more than 3.9 million vehicles and has 7,000 staff
worldwide, will use MicroStrategy to deliver a new dashboard
reporting analytics solution as part of its policy administration
system being implemented at present.
MicroStrategy was selected for its data lineage integration with
the other software solutions Admiral Group uses, which are critical
to its sales cycle. In addition, user-friendly capabilities,
superior performance and scalability, system availability, as well
as MicroStrategy's ability to support trusted governed data
discovery meant it stood out from the competition.
MicroStrategy's powerful visualization and mobile features will
enable staff across Admiral Group to easily access important brand
and product data across multiple lines of business and deliver
customized products and services more efficiently to
customers.
Gunnar Peters, Head of Data and
Management Information at Admiral Group, said: "Implementing the
new policy administration is all about helping our staff be as
informed and as efficient as possible, and delivering the best
possible customer experience. We've worked with MicroStrategy
since 2009 to power our operational reporting, and after evaluating
analytics providers in the marketplace, MicroStrategy is still the
most comprehensive enterprise analytics platform that fits our
evolving needs."
The new MicroStrategy Analytics Platform licenses purchased as
part of the implementation will extend the reach of the platform to
many more users.
Examples of Customer Deals from Q2 2015
- Flex
Our customer, Flex has purchased additional licenses of
MicroStrategy Analytics™ and MicroStrategy Mobile™ to support its
global purchasing organization and factory operations with
enterprise analytics reporting.
- Nedbank (Pty) Ltd
Nedbank Group (JSE: NED), based in Johannesburg, South Africa, is one of the
largest banking groups in South
Africa by assets and deposits, with Nedbank Limited being
one of its principal banking subsidiaries. Nedbank Ltd selected the
MicroStrategy Analytics Platform as its preferred enterprise-wide
analytics platform to deliver business intelligence, self-service
data discovery, and mobile apps to its staff and clients so that
they can better monitor and react to data management, investment
accounting, and performance activity on their mobile devices.
Nedbank selected MicroStrategy for its comprehensive analytics
platform, mobile leadership, scalability, ease of use, and low
total cost of ownership.
- North Texas Tollway Authority
The North Texas Tollway Authority (NTTA), a political
subdivision of the state of Texas,
is authorized to acquire, construct, maintain, repair and operate
turnpike projects in the north Texas region. A new MicroStrategy
customer, NTTA has selected MicroStrategy Analytics and
MicroStrategy Mobile to provide employees with interactive
dashboards, reports, ad hoc analysis, and map views of data points
on Texas roadways. By moving
toward a proactive, self-service reporting/analytics model, NTTA's
user community will be able to perform analytics on customer
behavior, report on compliance, and recover lost revenue.
NTTA will also be able to report on real-time operational data
coming from sensors on roadways (that detect weather and traffic
conditions), electronic tolling data (toll tag transactions and
license plate images for cashless OCR tolling), invoicing data, and
customer demographics (driving habits). Through a competitive bid
and evaluation of visual data discovery and business intelligence
vendors in the market, NTTA selected MicroStrategy because its
feature set best fit NTTA's business requirements. Also cited
were MicroStrategy's ease of use, high performance, scalability,
lower total cost of ownership and its mobile capabilities in
support of iOS and Android devices.
- Randstad Groep Nederland
Based in Diemen, Netherlands, Randstad Groep Nederland is a
subsidiary of Randstad Holding, founded in 1960 and active in 39
countries with approximately 28,000 employees. Randstad
specializes in solutions in the field of flexible work and HR
services. A new customer, Randstad Groep Nederland selected
MicroStrategy Analytics and MicroStrategy Mobile to enhance its
operations. With MicroStrategy, agents in the field and their
management will have the ability to easily analyze and drill into
operational data, perform self-service analytics and quickly create
ad-hoc reports. Randstad Groep Nederland chose MicroStrategy as its
corporate business intelligence solution, citing the platform's
ease of use and interactivity, self-service analytics, drill
anywhere capabilities, high performance and scalability.
Randstad has the option to expand its MicroStrategy implementation
to support its global operations.
- TrueCar, Inc.
Based in Santa Monica, CA,
TrueCar, Inc. is an automotive pricing and information website for
new and used car buyers and dealers. A MicroStrategy customer
since 2007, TrueCar will expand its MicroStrategy footprint by
leveraging the MicroStrategy Analytics Platform and MicroStrategy
Mobile to prototype and develop a new enterprise analytics
application. The MicroStrategy-based solution will enable
automobile OEMs and dealerships to easily access market data on the
web and mobile devices in order to make better inventory and
pricing decisions that drive more sales. MicroStrategy was
chosen for its solution's user-friendly capabilities, superior
performance and scalability, system availability, and its ability
to support trusted governed data discovery within a comprehensive
enterprise analytics platform.
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 Analytics Platform, MicroStrategy Mobile,
MicroStrategy Analytics, 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 Secure Enterprise; 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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
$
29,366
|
|
$
29,383
|
|
$
50,123
|
|
$
57,239
|
Subscription
services
|
|
7,074
|
|
5,883
|
|
13,739
|
|
10,324
|
Total product
licenses and subscription services
|
|
36,440
|
|
35,266
|
|
63,862
|
|
67,563
|
Product
support
|
|
70,747
|
|
74,569
|
|
140,052
|
|
146,050
|
Other
services
|
|
25,753
|
|
32,018
|
|
52,897
|
|
66,144
|
Total
revenues
|
|
132,940
|
|
141,853
|
|
256,811
|
|
279,757
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
1,906
|
|
2,086
|
|
3,215
|
|
3,914
|
Subscription
services
|
|
3,346
|
|
4,920
|
|
6,725
|
|
9,327
|
Total product
licenses and subscription services
|
|
5,252
|
|
7,006
|
|
9,940
|
|
13,241
|
Product
support
|
|
3,224
|
|
3,475
|
|
6,560
|
|
7,018
|
Other
services
|
|
17,436
|
|
25,132
|
|
36,510
|
|
48,363
|
Total cost
of revenues
|
|
25,912
|
|
35,613
|
|
53,010
|
|
68,622
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
107,028
|
|
106,240
|
|
203,801
|
|
211,135
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
36,219
|
|
60,956
|
|
72,739
|
|
119,833
|
Research and
development
|
|
14,864
|
|
32,748
|
|
30,262
|
|
60,810
|
General and
administrative
|
|
21,103
|
|
25,262
|
|
43,228
|
|
51,565
|
Restructuring
costs
|
|
90
|
|
-
|
|
175
|
|
-
|
Total
operating expenses
|
|
72,276
|
|
118,966
|
|
146,404
|
|
232,208
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
34,752
|
|
(12,726)
|
|
57,397
|
|
(21,073)
|
Interest
income, net
|
|
11
|
|
32
|
|
13
|
|
80
|
Other
(expense) income, net
|
|
(2,915)
|
|
(474)
|
|
1,835
|
|
(1,592)
|
Income (loss)
before income taxes
|
|
31,848
|
|
(13,168)
|
|
59,245
|
|
(22,585)
|
Provision for
(benefit from) income taxes
|
|
9,381
|
|
(2,831)
|
|
16,318
|
|
(5,766)
|
Net income
(loss)
|
|
$
22,467
|
|
$
(10,337)
|
|
$
42,927
|
|
$
(16,819)
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share (1):
|
|
$
1.98
|
|
$
(0.91)
|
|
$
3.79
|
|
$
(1.49)
|
Weighted average
shares outstanding used in computing basic earnings (loss) per
share
|
11,349
|
|
11,301
|
|
11,335
|
|
11,301
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share (1):
|
|
$
1.95
|
|
$
(0.91)
|
|
$
3.74
|
|
$
(1.49)
|
Weighted average
shares outstanding used in computing diluted earnings (loss) per
share
|
11,510
|
|
11,301
|
|
11,482
|
|
11,301
|
|
|
|
|
|
|
|
|
|
(1) Basic and fully
diluted earnings (loss) per share for class A and class B common
stock are the same.
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2015
|
|
2014*
|
Assets
|
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
201,146
|
|
$
146,919
|
Restricted
cash
|
|
655
|
|
661
|
Short-term
investments
|
|
226,749
|
|
198,547
|
Accounts
receivable, net
|
|
56,038
|
|
78,633
|
Prepaid
expenses and other current assets
|
14,389
|
|
17,669
|
Deferred tax
assets, net
|
|
14,472
|
|
19,936
|
Total current
assets
|
|
513,449
|
|
462,365
|
|
|
|
|
|
Property and
equipment, net
|
|
72,368
|
|
77,852
|
Capitalized software
development costs, net
|
20,303
|
|
13,469
|
Deposits and other
assets
|
|
3,516
|
|
3,951
|
Deferred tax assets,
net
|
|
1,502
|
|
1,160
|
Total
Assets
|
|
$
611,138
|
|
$
558,797
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
24,582
|
|
$
35,458
|
Accrued
compensation and employee benefits
|
43,142
|
|
50,588
|
Accrued
restructuring costs
|
|
236
|
|
2,284
|
Deferred
revenue and advance payments
|
119,773
|
|
108,413
|
Deferred tax
liabilities
|
|
484
|
|
557
|
Total current
liabilities
|
|
188,217
|
|
197,300
|
|
|
|
|
|
Deferred revenue and
advance payments
|
10,309
|
|
10,818
|
Other long-term
liabilities
|
|
20,855
|
|
22,679
|
Deferred tax
liabilities
|
|
11,066
|
|
3,529
|
Total
Liabilities
|
|
230,447
|
|
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;
|
|
|
|
15,734 shares issued and 9,329 shares outstanding, and 15,660
shares
|
|
|
|
issued and 9,255 shares
outstanding, respectively
|
16
|
|
16
|
Class B 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
|
|
521,086
|
|
506,727
|
Treasury
stock, at cost; 6,405 shares
|
(475,184)
|
|
(475,184)
|
Accumulated
other comprehensive loss
|
(5,429)
|
|
(4,363)
|
Retained
earnings
|
|
340,200
|
|
297,273
|
Total
Stockholders' Equity
|
|
380,691
|
|
324,471
|
Total Liabilities
and Stockholders' Equity
|
$
611,138
|
|
$
558,797
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Operating
activities:
|
|
|
|
|
|
Net income
(loss)
|
|
$ 42,927
|
|
$ (16,819)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,316
|
|
13,260
|
|
|
Bad debt
expense
|
|
461
|
|
2,033
|
|
|
Unrealized net loss
on foreign currency forward contracts
|
|
1,641
|
|
86
|
|
|
Non-cash portion of
adjustments to accrued restructuring costs
|
|
(127)
|
|
-
|
|
|
Deferred
taxes
|
|
13,308
|
|
(8,924)
|
|
|
Release of
liabilities for unrecognized tax benefits
|
|
(61)
|
|
-
|
|
|
Share-based
compensation expense
|
|
7,957
|
|
4,682
|
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
(963)
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
19,658
|
|
26,443
|
|
|
Prepaid expenses and
other current assets
|
|
1,372
|
|
(3,990)
|
|
|
Deposits and other
assets
|
|
292
|
|
406
|
|
|
Accounts payable and
accrued expenses
|
|
(8,624)
|
|
(5,191)
|
|
|
Accrued compensation
and employee benefits
|
|
(6,225)
|
|
(21,897)
|
|
|
Accrued restructuring
costs
|
|
(1,754)
|
|
-
|
|
|
Deferred revenue and
advance payments
|
|
13,625
|
|
22,226
|
|
|
Other long-term
liabilities
|
|
(1,770)
|
|
2,055
|
|
|
|
Net cash provided by
operating activities
|
|
92,033
|
|
14,370
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Proceeds from
redemption of short-term investments
|
|
171,500
|
|
93,200
|
|
Purchases of property
and equipment
|
|
(3,254)
|
|
(4,184)
|
|
Purchases of
short-term investments
|
|
(199,636)
|
|
(211,603)
|
|
Capitalized software
development costs
|
|
(9,598)
|
|
-
|
|
Increase in
restricted cash
|
|
(21)
|
|
(90)
|
|
|
|
Net cash used in
investing activities
|
|
(41,009)
|
|
(122,677)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from sale of
class A common stock under exercise of employee stock
options
|
|
5,439
|
|
-
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
963
|
|
-
|
|
Payments on capital
lease obligations and other financing arrangements
|
|
(216)
|
|
(341)
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
6,186
|
|
(341)
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(2,983)
|
|
336
|
Net increase
(decrease) in cash and cash equivalents
|
|
54,227
|
|
(108,312)
|
Cash and cash
equivalents, beginning of period
|
|
146,919
|
|
220,171
|
Cash and cash
equivalents, end of period
|
|
$ 201,146
|
|
$ 111,859
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
REVENUE AND COST
OF REVENUE DETAIL
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
Product licenses
|
|
$
29,366
|
|
$
29,383
|
|
$
50,123
|
|
$
57,239
|
Subscription services
|
|
7,074
|
|
5,883
|
|
13,739
|
|
10,324
|
Total
product licenses and subscription services
|
|
36,440
|
|
35,266
|
|
63,862
|
|
67,563
|
Product
support
|
|
70,747
|
|
74,569
|
|
140,052
|
|
146,050
|
Other
services:
|
|
|
|
|
|
|
|
|
Consulting
|
|
23,753
|
|
28,310
|
|
48,457
|
|
58,698
|
Education
|
|
2,000
|
|
3,708
|
|
4,440
|
|
7,446
|
Total
other services
|
|
25,753
|
|
32,018
|
|
52,897
|
|
66,144
|
Total
revenues
|
|
132,940
|
|
141,853
|
|
256,811
|
|
279,757
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
Product licenses
|
|
1,906
|
|
2,086
|
|
3,215
|
|
3,914
|
Subscription services
|
|
3,346
|
|
4,920
|
|
6,725
|
|
9,327
|
Total
product licenses and subscription services
|
|
5,252
|
|
7,006
|
|
9,940
|
|
13,241
|
Product
support
|
|
3,224
|
|
3,475
|
|
6,560
|
|
7,018
|
Other
services:
|
|
|
|
|
|
|
|
|
Consulting
|
|
16,656
|
|
23,266
|
|
34,803
|
|
44,989
|
Education
|
|
780
|
|
1,866
|
|
1,707
|
|
3,374
|
Total
other services
|
|
17,436
|
|
25,132
|
|
36,510
|
|
48,363
|
Total
cost of revenues
|
|
25,912
|
|
35,613
|
|
53,010
|
|
68,622
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
107,028
|
|
$
106,240
|
|
$
203,801
|
|
$
211,135
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
DEFERRED REVENUE
DETAIL
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
|
2015
|
|
2014*
|
|
2014
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Current:
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
12,525
|
|
$
10,927
|
|
$
14,487
|
Deferred subscription
services revenue
|
|
12,362
|
|
16,018
|
|
11,174
|
Deferred product
support revenue
|
|
146,194
|
|
168,833
|
|
156,018
|
Deferred other
services revenue
|
|
6,737
|
|
10,564
|
|
14,696
|
Gross
current deferred revenue and advance payments
|
|
177,818
|
|
206,342
|
|
196,375
|
Less: unpaid deferred
revenue
|
|
(58,045)
|
|
(97,929)
|
|
(64,052)
|
Net
current deferred revenue and advance payments
|
|
$
119,773
|
|
$
108,413
|
|
$ 132,323
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
6,714
|
|
$
8,012
|
|
$
7,431
|
Deferred subscription
services revenue
|
|
463
|
|
750
|
|
949
|
Deferred product
support revenue
|
|
8,147
|
|
7,505
|
|
6,696
|
Deferred other
services revenue
|
|
1,537
|
|
1,047
|
|
1,061
|
Gross
non-current deferred revenue and advance payments
|
|
16,861
|
|
17,314
|
|
16,137
|
Less: unpaid deferred
revenue
|
|
(6,552)
|
|
(6,496)
|
|
(3,116)
|
Net
non-current deferred revenue and advance payments
|
|
$
10,309
|
|
$
10,818
|
|
$
13,021
|
|
|
|
|
|
|
|
Total current and
non-current:
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
19,239
|
|
$
18,939
|
|
$
21,918
|
Deferred subscription
services revenue
|
|
12,825
|
|
16,768
|
|
12,123
|
Deferred product
support revenue
|
|
154,341
|
|
176,338
|
|
162,714
|
Deferred other
services revenue
|
|
8,274
|
|
11,611
|
|
15,757
|
Gross
current and non-current deferred revenue and advance
payments
|
|
194,679
|
|
223,656
|
|
212,512
|
Less: unpaid deferred
revenue
|
|
(64,597)
|
|
(104,425)
|
|
(67,168)
|
Net
current and non-current deferred revenue and advance
payments
|
|
$
130,082
|
|
$
119,231
|
|
$ 145,344
|
|
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP income (loss) from operations:
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
$
34,752
|
|
$
(12,726)
|
|
$
57,397
|
|
$
(21,073)
|
|
Share-based
compensation expense
|
|
4,360
|
|
3,084
|
|
7,957
|
|
4,682
|
|
Restructuring
costs
|
|
90
|
|
-
|
|
175
|
|
-
|
|
Non-GAAP income
(loss) from operations
|
|
$
39,202
|
|
$
(9,642)
|
|
$
65,529
|
|
$
(16,391)
|
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
WORLDWIDE EMPLOYEE
HEADCOUNT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
services
|
|
59
|
|
61
|
|
57
|
|
43
|
|
37
|
|
Product
support
|
|
142
|
|
144
|
|
138
|
|
138
|
|
130
|
|
Consulting
|
|
683
|
|
676
|
|
600
|
|
554
|
|
508
|
|
Education
|
|
43
|
|
35
|
|
24
|
|
19
|
|
25
|
|
Sales and
marketing
|
|
920
|
|
827
|
|
662
|
|
577
|
|
515
|
|
Research and
development
|
|
1,101
|
|
965
|
|
645
|
|
580
|
|
508
|
|
General and
administrative
|
|
463
|
|
417
|
|
344
|
|
321
|
|
303
|
|
Total
headcount
|
|
3,411
|
|
3,125
|
|
2,470
|
|
2,232
|
|
2,026
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo -
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/microstrategy-announces-second-quarter-2015-financial-results-300119232.html
SOURCE MicroStrategy Incorporated