TYSONS CORNER, Va.,
July 28, 2016 /PRNewswire/
-- MicroStrategy® Incorporated (Nasdaq: MSTR), a leading
worldwide provider of enterprise software platforms, today
announced financial results for the three-month period ended
June 30, 2016 (the second quarter of
its 2016 fiscal year).
Second quarter 2016 revenues were $123.1
million versus $132.9 million
for the second quarter of 2015, a 7% decrease. Product
licenses and subscription services revenues for the second quarter
of 2016 were $31.2 million versus
$36.4 million for the second quarter
of 2015, a 14% decrease. Product support revenues for the
second quarter of 2016 were $71.5
million versus $70.7 million
for the second quarter of 2015, a 1% increase. Other services
revenues for the second quarter of 2016 were $20.5 million versus $25.8
million for the second quarter of 2015, a 21%
decrease. Foreign currency headwinds continued to have a
negative impact on revenues for the second quarter of 2016.
Operating expenses for the second quarter of 2016 were
$78.0 million versus $72.3 million for the second quarter of 2015, an
8% increase. In addition, MicroStrategy did not capitalize
any software development costs during the second quarter of 2016,
as compared to $4.2 million in
software development costs capitalized during the second quarter of
2015.
Income from operations for the second quarter of 2016 was
$21.1 million, as compared to income
from operations of $34.8 million for
the second quarter of 2015. Net income for the second quarter
of 2016 was $18.9 million, or
$1.64 per share on a diluted basis,
as compared to net income of $22.5
million, or $1.95 per share on
a diluted basis, for the second quarter of 2015.
Non-GAAP income from operations, which excludes share-based
compensation expense and restructuring costs, was $24.7 million for the second quarter of 2016
versus $39.2 million for the second
quarter of 2015. 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 June 30, 2016 and 2015. An explanation of this
non-GAAP measure is also included under the heading "Non-GAAP
Financial Measure" below.
As of June 30, 2016, MicroStrategy
had cash and cash equivalents and short-term investments of
$550.1 million, as compared to
$485.7 million as of December 31, 2015, an increase of $64.4 million. As of June 30, 2016, 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 second quarter 2016
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 18176166.
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 August
4, 2016 at (855) 859-2056 (domestically) or (404) 537-3406
(internationally) using the passcode 18176166. 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 10.4™ Unlocks More Computing Power and
Introduced Work Fencing
In June 2016, MicroStrategy
announced the general availability of MicroStrategy 10.4,
the latest update to the Company's MicroStrategy 10™ platform.
The release makes MicroStrategy 10 faster and easier to
use, with new features spanning analytics, mobility and
security.
To further enhance the platform, version 10.4 doubled the
capacity of server clusters to eight nodes, helping to ensure
enterprises are equipped to roll out and scale applications to
large user populations. The new release also facilitates faster
performance for specific user groups, critical batch processes and
ad-hoc query activity with a new feature called work fencing.
MicroStrategy Mobile™ added AppConfig to its library of supported
Enterprise Mobility Management (EMM) deployment choices, giving
customers a robust set of natively integrated EMM choices.
Doubled Capacity of Server Clusters to Eight
Nodes
MicroStrategy 10.4 unlocks more computing power for
analytical applications, letting enterprise customers incrementally
expand the number of servers in a cluster to up to eight
nodes—double the overall capacity of previous
versions. MicroStrategy customers have the freedom to
consolidate multiple production environments or incrementally
increase user capacity. With the new release, there are more
opportunities to significantly improve performance at a very low
cost by easily extending the deployment across additional
nodes.
New Work Fencing Feature
Most notably, version 10.4 introduced work fencing, which allows
organizations to control and manage large environments more
effectively, and allows administrators to draw more power from
existing MicroStrategy Server™ clusters. Work fencing optimizes the
use of server resources and helps ensure that dedicated computing
power is available to support specific users, user groups or
tasks.
The new feature lets administrators assign fences to select
nodes within a server cluster that perform specific tasks, so the
organization can execute heavy batch jobs and high-volume,
scheduled subscriptions without risking system stability or
interrupting the experience of other users. This feature is
designed to allow for fast performance and availability at all
times, and to enable users to not have to compete for resources.
With user fencing, another new feature in version 10.4,
organizations can dedicate select server nodes to priority users,
such as CXOs and high-profile customers, so they always experience
sub-second response times.
Work fencing also makes it possible to optimize overall server
performance, so organizations can draw more power without having to
purchase new environments. "Built for the
enterprise, MicroStrategy 10.4 delivers a powerful
combination of larger clusters and work fencing. This enables
customers to deploy more users and types of applications on a
single platform, while still helping to ensure the highest quality
of service for mission-critical systems," said Tim Lang,
CTO, MicroStrategy Incorporated. "I am also excited about the
many enhancements we have made in version 10.4 to simplify the
application creation and consumption experience."
Other exciting new features in version 10.4 include:
- Thresholding on Attributes: Users can include
threshold-based highlighting on attribute elements. This is in
addition to being able to apply thresholds on metric values, which
is available for both report services and dashboards. This extends
out to third-party custom visualizations as well, so designers can
create custom D3 plug-ins that include thresholding for
attributes.
- Smart Defaults for Data Discovery: Analysts can rely on
smart defaults to automatically format visualizations for the best
appearance. Analysts can spend less time tidying up dashboards
since the defaults are based on improved rules for
visualizations.
- EMM Support via AppConfig for iOS: In addition to native
integration support with AirWatch®, MobileIron and Good
Dynamics™, MicroStrategy 10.4 provides native integration to
configure and secure iOS apps based on AppConfig guidelines. The
integration with AppConfig results in more consistent, open and
simple ways to configure and secure mobile apps.
- Improved Native Android™ Mobile Client: MicroStrategy
10.4 delivers increased functionality in its Android mobile client,
introducing integration with push notifications and support for D3
visualizations.
- New Big Data Drivers: Version 10.4 includes updated
drivers that allow customers to leverage the latest big data
sources, while minimizing run time for analytics. Updated drivers
are available for Hive, Presto and Microsoft Access®.
Additionally, version 10.4 also certifies Spark SQL 1.6, MemSQL 4.x
and SAP Hana® 11.
MicroStrategy 10.4 also introduced several new features for
Usher™:
- Mac® Computer Lock: In the first quarter
of 2016, MicroStrategy released the ability to unlock a
Mac computer using Bluetooth® proximity-based
detection from a smartphone. In the second quarter of 2016, we
introduced the ability to lock a Mac based on the same
proximity-based detection. This capability provides enhanced user
security by enabling a user to lock a computer when she picks up
her phone and walks away from her computer. And of course, when the
user comes back to her desk, Usher can unlock the computer.
- Frictionless Single Sign-on for Applications: In
furtherance of our goal to provide a seamless user experience, we
enhanced Usher logical access to enable Single Sign-on to web
applications. Once a user has logged on using Usher, she can
directly access Usherized applications like Rally and
Salesforce® using the Usher credentials as an
extension of her identity without having to input
application-specific credentials. This process helps to ensure that
access to web applications is simple while also being secure.
- Real-time Telemetry Services: One of the critical
development goals for Usher has been to enable more real-time
visibility to Usher-enabled telemetry. As part
of MicroStrategy 10.4, Usher ships as standard a new ETL
model that allows for Usher to provide streaming insight on a wide
variety of use cases and business needs that require real-time
decision-making at scale.
July 2016 Symposium Series
Provided Learning Opportunities for Users in North America, Europe, the Middle
East and Asia
Also in June 2016, MicroStrategy
announced its next 20 Symposium locations. Each one-day event,
which took place in July in cities across North
America, Europe, the Middle East and Asia,
demonstrated MicroStrategy 10.4's functionality during an
executive keynote, followed by a day filled with 12 to 16 breakout
sessions and hands-on workshops that covered new content spanning
industry solutions, analytics, mobility and security.
For:
- Industry Solutions, attendees learned
how MicroStrategy 10 can help organizations in retail,
banking, higher education, healthcare, manufacturing & CPG,
facilities, sales and municipal government change the way they do
business.
- Analytics, attendees heard how enterprise data discovery
delivers trusted analytics to decentralized teams and departments,
how organizations can draw value from big data sources and use
predictive analytics with R, and how end users can create stunning
visualizations with D3.
- Mobility, attendees learned about mobile analytics, mobile
productivity apps, and custom mobile app development for end users;
and
- Security, attendees heard how organizations can provide
employees with access to physical and logical assets.
Symposium attendees learned about the latest version
of MicroStrategy 10 – MicroStrategy 10.4 – which
features new updates in analytics, mobility and security that make
the platform faster and easier to use.
MicroStrategy's Symposium Series offered IT and business
users an opportunity to network, take workshops, and hear about
real-world applications for MicroStrategy 10
from MicroStrategy customers such as Boston
Children's Hospital, Coach, Colis
Privé, Dallas/Fort Worth International
Airport, Huntington National Bank, IM Associates, Jabil
Circuit, LifeWay Christian Resources, Parallon, Saint-Gobain
Abrasives, Sutter Health and T-Systems International.
The July 2016 Symposium Series featured topics on
analytics and mobile applications in retail, banking, higher
education, healthcare and other sectors being transformed by big
data.
"Today, companies are creating data at an explosive rate, and
business intelligence isn't as much a choice as it is a necessity,
since companies need to uncover insights and make informed,
fact-driven decisions," said Michael J. Saylor,
CEO, MicroStrategy Incorporated, who keynoted many of the July
events and spoke alongside
other MicroStrategy executives. "Our Symposium events
connect customers to each other to share best practices, hear the
latest thinking in big data, and bring home valuable lessons and
ideas that move the needle in BI."
Usher's Built-in Integrations with Numerous Industry-leading
Physical Access Control Systems
In April 2016, MicroStrategy
announced that Usher delivers improved identity assurance and
simplified physical and logical access control by including Usher
gateways that are pre-integrated with multiple leading physical
access control systems (PACS). At the ISC West trade show
that was held in Las Vegas, NV in
April, MicroStrategy conducted demonstrations of Usher,
including its beacon technology and converged analytics dashboard,
and provided a live video feed of an Usher physical access
implementation.
Usher's integration with leading PACS gateways has been proven
in customer implementations with existing installed PACS. An Usher
API adapter is also available for custom
integrations. MicroStrategy expects to include built-in
integration with additional name-brand PACS partners in the coming
months, along with the completion of key PACS certifications.
Leveraging smartphones and tablets, FIPS 140-2 PKI, QR codes,
Bluetooth (BLE) and NFC, along with WiFi and cellular
communications, Usher is designed to deliver a safe, secure
alternative to passwords, passcards, hardware tokens and other
legacy approaches to meld physical and logical access and security
in one solution that is backed by market-leading analytics.
"We never leave home without our trusted mobile companions, so
why not take advantage of their flexibility and horsepower?" said
Mr. Saylor. "Usher provides a secure, common-use platform to
satisfy the needs of both physical and logical access control,
including security analytics. The proper enforcement of access
privileges is easy and secure, as our growing list of Fortune 1000
Usher customers proves."
Regarding physical access, Usher:
- is a federated solution that is designed to ensure facility and
security managers stay in control of policy management and user
authorization via PACS and other existing tools;
- operates seamlessly alongside legacy passcards to support
blended environments;
- delivers full-featured analytics tools and dashboards to
optimize business operations and help detect and prevent
fraud;
- enables real-time user messaging and alerts to report
actionable intelligence and improve user safety; and
- provides a copy of all access enforcement logs to the PACS to
maintain centralized reporting.
MicroStrategy 10.4 with Usher software can be installed and
configured on-premise in a large enterprise, including securely
interfacing with an Active/OpenLDAP Directory and a PACS, and
securely issuing badges to users, VIPs and visitors. Usher's
incorporation of optional biometric, geo-fencing, telemetry and
peer-to-peer verification features enable organizations to
implement more sophisticated programs and deliver personalized user
experiences. Usher's capabilities are backed
by MicroStrategy's world-class enterprise analytics.
MicroStrategy Showcased Usher Digital Badges for Converged
Systems Access and Real-time User Behavior Analytics
In June 2016, MicroStrategy
demonstrated Usher digital badges for converged systems access and
real-time user behavior analytics at the Gartner Security &
Risk Management Summit at the Gaylord Hotel in National Harbor,
MD. Summit attendees learned about Usher's new features for
the digital enterprise.
"Usher provides a frictionless user experience and a rich set of
telemetry data about access intelligence to allow organizations to
lock down their enterprise IT applications and physical
facilities," said Mr. Saylor. "Mitigating risk should be an
integral part of every organization's strategic priorities. We
believe Usher is the answer for organizations and institutions to
boost their security posture, manage digital risk and eliminate
unnecessary expenditures."
With Usher's real-time analytics and communication capabilities,
enterprise facility and security managers can respond faster and
smarter to incidents and emergencies by communicating, monitoring
and tracking users in real-time. Usher leverages inexpensive and
low-power Bluetooth beacons to communicate with
Usher-configured mobile devices. When an Usher user is within range
of a configured beacon, the Usher app receives a notice from the
beacon and captures the user's location data in MicroStrategy
Analytics™. This extremely valuable information can be used by
administrators to better understand user behavior, improve the
organization's security posture, respond more effectively to urgent
business demands and act during time-sensitive emergency
situations.
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 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 10.4,
MicroStrategy Mobile, MicroStrategy Server, 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 10.4; 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.
MICROSTRATEGY
INCORPORATED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
$
23,459
|
|
$
29,366
|
|
$
45,858
|
|
$
50,123
|
Subscription
services
|
|
7,782
|
|
7,074
|
|
15,136
|
|
13,739
|
Total product
licenses and subscription services
|
|
31,241
|
|
36,440
|
|
60,994
|
|
63,862
|
Product
support
|
|
71,451
|
|
70,747
|
|
139,948
|
|
140,052
|
Other
services
|
|
20,450
|
|
25,753
|
|
41,215
|
|
52,897
|
Total
revenues
|
|
123,142
|
|
132,940
|
|
242,157
|
|
256,811
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
2,322
|
|
1,906
|
|
4,458
|
|
3,215
|
Subscription
services
|
|
3,356
|
|
3,346
|
|
6,448
|
|
6,725
|
Total product
licenses and subscription services
|
|
5,678
|
|
5,252
|
|
10,906
|
|
9,940
|
Product
support
|
|
3,687
|
|
3,224
|
|
6,960
|
|
6,560
|
Other
services
|
|
14,736
|
|
17,436
|
|
29,058
|
|
36,510
|
Total cost
of revenues
|
|
24,101
|
|
25,912
|
|
46,924
|
|
53,010
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
99,041
|
|
107,028
|
|
195,233
|
|
203,801
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
37,702
|
|
36,219
|
|
74,279
|
|
72,739
|
Research and
development
|
|
19,160
|
|
14,864
|
|
36,735
|
|
30,262
|
General and
administrative
|
|
21,092
|
|
21,103
|
|
43,311
|
|
43,228
|
Restructuring
costs
|
|
8
|
|
90
|
|
33
|
|
175
|
Total
operating expenses
|
|
77,962
|
|
72,276
|
|
154,358
|
|
146,404
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
21,079
|
|
34,752
|
|
40,875
|
|
57,397
|
Interest
income, net
|
|
539
|
|
11
|
|
942
|
|
13
|
Other income
(expense), net
|
|
1,755
|
|
(2,915)
|
|
87
|
|
1,835
|
Income before
income taxes
|
|
23,373
|
|
31,848
|
|
41,904
|
|
59,245
|
Provision for
income taxes
|
|
4,489
|
|
9,381
|
|
8,748
|
|
16,318
|
Net
income
|
|
$
18,884
|
|
$
22,467
|
|
$
33,156
|
|
$
42,927
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (1):
|
|
$
1.65
|
|
$
1.98
|
|
$
2.90
|
|
$
3.79
|
Weighted average
shares outstanding used in computing basic earnings per
share
|
|
11,428
|
|
11,349
|
|
11,418
|
|
11,335
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share (1):
|
|
$
1.64
|
|
$
1.95
|
|
$
2.88
|
|
$
3.74
|
Weighted average
shares outstanding used in computing diluted earnings per
share
|
|
11,523
|
|
11,510
|
|
11,499
|
|
11,482
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2016
|
|
2015*
|
Assets
|
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
347,389
|
|
$
292,341
|
Restricted
cash
|
|
643
|
|
618
|
Short-term
investments
|
|
202,697
|
|
193,320
|
Accounts
receivable, net
|
|
54,887
|
|
68,154
|
Prepaid
expenses and other current assets
|
15,414
|
|
10,881
|
Total current
assets
|
|
621,030
|
|
565,314
|
|
|
|
|
|
Property and
equipment, net
|
|
61,501
|
|
65,664
|
Capitalized software
development costs, net
|
11,949
|
|
15,855
|
Deposits and other
assets
|
|
6,077
|
|
2,072
|
Deferred tax assets,
net
|
|
9,072
|
|
7,989
|
Total
Assets
|
|
$
709,629
|
|
$
656,894
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
27,524
|
|
$
31,840
|
Accrued
compensation and employee benefits
|
40,410
|
|
40,067
|
Accrued
restructuring costs
|
|
25
|
|
56
|
Deferred
revenue and advance payments
|
121,162
|
|
100,695
|
Total current
liabilities
|
|
189,121
|
|
172,658
|
|
|
|
|
|
Deferred revenue and
advance payments
|
11,372
|
|
8,995
|
Other long-term
liabilities
|
|
19,476
|
|
19,943
|
Deferred tax
liabilities
|
|
15
|
|
17
|
Total
Liabilities
|
|
219,984
|
|
201,613
|
|
|
|
|
|
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;
|
|
|
|
15,801 shares issued and 9,396 shares outstanding, and 15,771
shares
|
|
|
|
issued and 9,366 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
|
|
536,689
|
|
534,651
|
Treasury
stock, at cost; 6,405 shares
|
(475,184)
|
|
(475,184)
|
Accumulated
other comprehensive loss
|
(8,238)
|
|
(7,408)
|
Retained
earnings
|
|
436,360
|
|
403,204
|
Total
Stockholders' Equity
|
|
489,645
|
|
455,281
|
Total Liabilities
and Stockholders' Equity
|
$
709,629
|
|
$
656,894
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Operating
activities:
|
|
|
|
|
|
Net income
|
|
$
33,156
|
|
$
42,927
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
8,832
|
|
10,316
|
|
|
Bad debt
expense
|
|
523
|
|
461
|
|
|
Unrealized net loss
on foreign currency forward contracts
|
|
-
|
|
1,641
|
|
|
Non-cash
restructuring costs and adjustments
|
|
-
|
|
(127)
|
|
|
Deferred
taxes
|
|
(2,537)
|
|
13,308
|
|
|
Release of
liabilities for unrecognized tax benefits
|
|
-
|
|
(61)
|
|
|
Share-based
compensation expense
|
|
5,075
|
|
7,957
|
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
(1,208)
|
|
(963)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
12,876
|
|
19,658
|
|
|
Prepaid expenses and
other current assets
|
|
(3,455)
|
|
1,372
|
|
|
Deposits and other
assets
|
|
(2,070)
|
|
292
|
|
|
Accounts payable and
accrued expenses
|
|
(4,387)
|
|
(8,624)
|
|
|
Accrued compensation
and employee benefits
|
|
(148)
|
|
(6,225)
|
|
|
Accrued restructuring
costs
|
|
(33)
|
|
(1,754)
|
|
|
Deferred revenue and
advance payments
|
|
21,382
|
|
13,625
|
|
|
Other long-term
liabilities
|
|
(1,458)
|
|
(1,770)
|
|
|
|
Net cash provided by
operating activities
|
|
66,548
|
|
92,033
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Proceeds from
redemption of short-term investments
|
|
152,820
|
|
171,500
|
|
Purchases of property
and equipment
|
|
(935)
|
|
(3,254)
|
|
Purchases of
short-term investments
|
|
(161,818)
|
|
(199,636)
|
|
Capitalized software
development costs
|
|
-
|
|
(9,598)
|
|
Increase in
restricted cash
|
|
(9)
|
|
(21)
|
|
|
|
Net cash used in
investing activities
|
|
(9,942)
|
|
(41,009)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from sale of
class A common stock under exercise of employee stock
options
|
|
1,157
|
|
5,439
|
|
Payment of taxes
relating to net exercise of employee stock options
|
|
(3,739)
|
|
-
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
1,208
|
|
963
|
|
Payments on capital
lease obligations and other financing arrangements
|
|
(1,220)
|
|
(216)
|
|
|
|
Net cash (used in)
provided by financing activities
|
|
(2,594)
|
|
6,186
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
1,036
|
|
(2,983)
|
Net increase in
cash and cash equivalents
|
|
55,048
|
|
54,227
|
Cash and cash
equivalents, beginning of period
|
|
292,341
|
|
146,919
|
Cash and cash
equivalents, end of period
|
|
$
347,389
|
|
$
201,146
|
MICROSTRATEGY
INCORPORATED
|
REVENUE AND COST
OF REVENUE DETAIL
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
Product licenses
|
|
$
23,459
|
|
$
29,366
|
|
$
45,858
|
|
$
50,123
|
Subscription services
|
|
7,782
|
|
7,074
|
|
15,136
|
|
13,739
|
Total
product licenses and subscription services
|
|
31,241
|
|
36,440
|
|
60,994
|
|
63,862
|
Product
support
|
|
71,451
|
|
70,747
|
|
139,948
|
|
140,052
|
Other
services:
|
|
|
|
|
|
|
|
|
Consulting
|
|
18,142
|
|
23,753
|
|
36,628
|
|
48,457
|
Education
|
|
2,308
|
|
2,000
|
|
4,587
|
|
4,440
|
Total
other services
|
|
20,450
|
|
25,753
|
|
41,215
|
|
52,897
|
Total
revenues
|
|
123,142
|
|
132,940
|
|
242,157
|
|
256,811
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
Product licenses
|
|
2,322
|
|
1,906
|
|
4,458
|
|
3,215
|
Subscription services
|
|
3,356
|
|
3,346
|
|
6,448
|
|
6,725
|
Total
product licenses and subscription services
|
|
5,678
|
|
5,252
|
|
10,906
|
|
9,940
|
Product
support
|
|
3,687
|
|
3,224
|
|
6,960
|
|
6,560
|
Other
services:
|
|
|
|
|
|
|
|
|
Consulting
|
|
13,367
|
|
16,656
|
|
26,400
|
|
34,803
|
Education
|
|
1,369
|
|
780
|
|
2,658
|
|
1,707
|
Total
other services
|
|
14,736
|
|
17,436
|
|
29,058
|
|
36,510
|
Total
cost of revenues
|
|
24,101
|
|
25,912
|
|
46,924
|
|
53,010
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
99,041
|
|
$
107,028
|
|
$
195,233
|
|
$
203,801
|
MICROSTRATEGY
INCORPORATED
|
DEFERRED REVENUE
DETAIL
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
|
2016
|
|
2015*
|
|
2015
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Current:
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
12,710
|
|
$
13,506
|
|
$
12,525
|
Deferred subscription
services revenue
|
|
14,704
|
|
15,763
|
|
12,362
|
Deferred product
support revenue
|
|
150,361
|
|
158,738
|
|
146,194
|
Deferred other
services revenue
|
|
8,573
|
|
9,149
|
|
6,737
|
Gross
current deferred revenue and advance payments
|
|
186,348
|
|
197,156
|
|
177,818
|
Less: unpaid deferred
revenue
|
|
(65,186)
|
|
(96,461)
|
|
(58,045)
|
Net
current deferred revenue and advance payments
|
|
$
121,162
|
|
$
100,695
|
|
$
119,773
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
10,655
|
|
$
5,397
|
|
$
6,714
|
Deferred subscription
services revenue
|
|
1,959
|
|
2,138
|
|
463
|
Deferred product
support revenue
|
|
6,796
|
|
7,607
|
|
8,147
|
Deferred other
services revenue
|
|
666
|
|
795
|
|
1,537
|
Gross
non-current deferred revenue and advance payments
|
|
20,076
|
|
15,937
|
|
16,861
|
Less: unpaid deferred
revenue
|
|
(8,704)
|
|
(6,942)
|
|
(6,552)
|
Net
non-current deferred revenue and advance payments
|
|
$
11,372
|
|
$
8,995
|
|
$
10,309
|
|
|
|
|
|
|
|
Total current and
non-current:
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
23,365
|
|
$
18,903
|
|
$
19,239
|
Deferred subscription
services revenue
|
|
16,663
|
|
17,901
|
|
12,825
|
Deferred product
support revenue
|
|
157,157
|
|
166,345
|
|
154,341
|
Deferred other
services revenue
|
|
9,239
|
|
9,944
|
|
8,274
|
Gross
current and non-current deferred revenue and advance
payments
|
|
206,424
|
|
213,093
|
|
194,679
|
Less: unpaid deferred
revenue
|
|
(73,890)
|
|
(103,403)
|
|
(64,597)
|
Net
current and non-current deferred revenue and advance
payments
|
|
$
132,534
|
|
$
109,690
|
|
$
130,082
|
|
|
|
|
|
|
|
*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,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP income from operations:
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
21,079
|
|
$
34,752
|
|
$
40,875
|
|
$
57,397
|
|
Share-based
compensation expense
|
|
3,571
|
|
4,360
|
|
5,075
|
|
7,957
|
|
Restructuring
costs
|
|
8
|
|
90
|
|
33
|
|
175
|
|
Non-GAAP income from
operations
|
|
$
24,658
|
|
$
39,202
|
|
$
45,983
|
|
$
65,529
|
MICROSTRATEGY
INCORPORATED
|
WORLDWIDE EMPLOYEE
HEADCOUNT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
services
|
|
37
|
|
33
|
|
37
|
|
37
|
|
39
|
|
Product
support
|
|
130
|
|
127
|
|
131
|
|
135
|
|
156
|
|
Consulting
|
|
508
|
|
480
|
|
467
|
|
455
|
|
452
|
|
Education
|
|
25
|
|
27
|
|
28
|
|
31
|
|
31
|
|
Sales and
marketing
|
|
515
|
|
507
|
|
513
|
|
531
|
|
541
|
|
Research and
development
|
|
508
|
|
464
|
|
461
|
|
499
|
|
532
|
|
General and
administrative
|
|
303
|
|
301
|
|
310
|
|
317
|
|
314
|
|
Total
headcount
|
|
2,026
|
|
1,939
|
|
1,947
|
|
2,005
|
|
2,065
|
MSTR-F
Contact:
MicroStrategy Incorporated
Investor Relations
ir@microstrategy.com
(703) 848-8600
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/microstrategy-announces-second-quarter-2016-financial-results-300305740.html
SOURCE MicroStrategy Incorporated