TYSONS CORNER, Va.,
Oct. 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 September 30, 2016 (the third quarter of its 2016
fiscal year).
Third quarter 2016 revenues were $129.9
million versus $129.5 million
for the third quarter of 2015, essentially flat year over
year. Product licenses and subscription services revenues for
the third quarter of 2016 were $37.3
million versus $34.1 million
for the third quarter of 2015, a 9% increase. Product support
revenues for the third quarter of 2016 were $72.5 million versus $71.4
million for the third quarter of 2015, a 1% increase.
Other services revenues for the third quarter of 2016 were
$20.2 million versus $24.1 million for the third quarter of 2015, a
16% decrease. Foreign currency headwinds continued to have a
negative impact on revenues for the third quarter of 2016.
Operating expenses for the third quarter of 2016 were
$77.0 million versus $74.1 million for the third quarter of 2015, a 4%
increase. MicroStrategy did not capitalize any software
development costs during the third quarter of 2016 or
2015.
Income from operations for the third quarter of 2016 was
$30.0 million, as compared to income
from operations of $30.7 million for
the third quarter of 2015. Net income for the third quarter
of 2016 was $26.6 million, or
$2.31 per share on a diluted basis,
as compared to net income of $23.9
million, or $2.06 per share on
a diluted basis, for the third quarter of 2015.
Non-GAAP income from operations, which excludes share-based
compensation expense and restructuring costs, was $33.4 million for the third quarter of 2016
versus $35.4 million for the third
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 September 30, 2016 and 2015. An explanation of
this non-GAAP measure is also included under the heading "Non-GAAP
Financial Measure" below.
As of September 30, 2016,
MicroStrategy had cash and cash equivalents and short-term
investments of $578.9 million, as
compared to $485.7 million as of
December 31, 2015, an increase of
$93.2 million. As of
September 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 third 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 87893779.
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 November 3, 2016 at (855) 859-2056 (domestically)
or (404) 537-3406 (internationally) using the passcode
87893779. 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 Desktop™ Available at No Charge
Earlier this month, MicroStrategy announced that MicroStrategy
Desktop is available at no charge. Users new to the field of
analytics and business intelligence, including students and young
professionals, can leverage MicroStrategy Desktop to explore
popular data sources and build insightful visualizations to help
make better business decisions. To download MicroStrategy Desktop
for Mac® or PC, visit:
https://www.microstrategy.com/us/desktop.
MicroStrategy Launched Jump Start, Free Education Program to
Kickstart MicroStrategy 10™ Adoption
In August 2016, MicroStrategy
announced the launch of Jump Start, a free educational program
designed to help MicroStrategy customers, partners, and prospects
build practical skills and learn MicroStrategy 10 functionality to
drive faster adoption across the enterprise. The five-day program
is appropriate for all skills levels and is being held monthly in
cities around the world.
Jump Start training is being delivered in nine different
languages including English, Spanish, French, Italian, Portuguese,
German, Korean, Japanese and Chinese, and taking place in 29 cities
around the world. The program teaches MicroStrategy
fundamentals, as well as more advanced topics such as creating
visually compelling dashboards; connecting to data from a variety
of sources including Salesforce®, Facebook
and Hadoop; and creating mobile apps that deliver critical insights
to users. Each day-long class is structured to stand on its own, so
participants can choose to sign up for a single day or attend the
full week program. To sign up for Jump Start training near
you, visit: www.microstrategy.com/jumpstart.
"Excellence in BI doesn't start and end with selecting an
enterprise software platform—it takes ongoing training and
education to build an empowered user community capable of great
things," said Michael J. Saylor,
CEO, MicroStrategy Incorporated. "We recognize that standing up an
enterprise analytics platform is a long-term investment. We are
excited about the Jump Start program and look forward to training
customers, partners and prospective customers interested in using
our newest and most innovative analytics technology to transform
their data."
MicroStrategy 10.5™ Empowers Organizations to Connect
to More Enterprise Assets
In September 2016, MicroStrategy
announced the general availability of MicroStrategy 10.5, the
latest update to the company's MicroStrategy 10 platform. The
feature release delivered the industry's latest drivers and
gateways with new certifications to support more enterprise assets,
allowing organizations to easily leverage their data investments.
Beyond enhanced connectivity to data assets, MicroStrategy 10.5
delivered several features that make it easier to consume analytics
across MicroStrategy Desktop, MicroStrategy Web™, MicroStrategy
Mobile™ and Usher™.
"The latest edition of our platform makes MicroStrategy much
more compelling to our enterprise customers and OEM partners who
deploy business intelligence at a larger scale," said Tim Lang, CTO of MicroStrategy Incorporated.
"MicroStrategy 10.5 enables organizations to connect to enterprise
resources with new native support for RESTful APIs, new
connectivity to OData and SAS data files, and faster access to
large volumes of data on Hadoop® and other distributed
files systems. It also delivers an extensive list of new features
for MicroStrategy Desktop, MicroStrategy Web, MicroStrategy Mobile
and Usher."
MicroStrategy 10.5 delivered an extensive collection of
enhancements focused on empowering users to access more information
and systems, including native support for RESTful APIs,
connectivity to OData and SAS data files, and new certifications
for more enterprise assets. Exciting new features for MicroStrategy
Desktop and MicroStrategy Mobile in version 10.5 include improved
visualizations and charts for MicroStrategy Mobile, customizable
error messages on iOS mobile devices, and reduced memory footprint
for MicroStrategy Desktop.
MicroStrategy 10.5 also introduced several new features for
Usher, which is comprised of two main client interfaces: Usher
Security™ and Usher Professional™. Usher Security is a mobile
identity application that replaces physical IDs, passwords, keys
and security tokens with secure digital badges. Usher Professional
is an analytics and mobile productivity application that allows
managers to monitor user activity on interactive maps and
communicate in real-time. Usher's new features include 2-way
messaging between Usher Professional and Usher Security users, auto
server configuration for Usher Security, and Usher Network
Manager™.
MicroStrategy highlighted the functionalities of MicroStrategy
10.5 at its October 2016 Symposium
Series, where Symposium attendees were able to learn about the new
features in MicroStrategy 10.5. To learn more about MicroStrategy
10.5 and see the full list of new features across MicroStrategy
Desktop, MicroStrategy Web and MicroStrategy Mobile, visit
https://www.microstrategy.com/us/platform/whats-new.
MicroStrategy Presented at Strata + Hadoop World and
Introduced New Partner Certification Program for Data Platform
Vendors
In September 2016, MicroStrategy
announced that it would sponsor and present at the Strata + Hadoop
World Conference. The event took place over three days on
September 27-29, 2016 at the Javits
Center in New York City,
New York. During the
conference, MicroStrategy experts conducted live demos of
MicroStrategy 10.5.
"Enterprise data assets have become increasingly larger and
diverse, and choosing the right enterprise analytics solution that
can perform and deliver in a dynamic marketplace is critically
important. MicroStrategy 10 empowers users to access more data and
allows organizations to easily leverage their technology
investments," said Mark Gambill, CMO
at MicroStrategy Incorporated. "MicroStrategy 10 offers a holistic
enterprise analytics platform with incredible horsepower for both
IT and business users, and events like Strata + Hadoop World are an
excellent place to test drive the platform in person."
For the first time, MicroStrategy hosted TechTalks, an exclusive
one-on-one session with an expert MicroStrategy Professional
Services™ consultant at Strata + Hadoop World. MicroStrategy
also introduced a Partner Certification Program at Strata + Hadoop.
Data storage and platform vendors attending the event were able to
enroll in this program to partner with and certify their offerings
with MicroStrategy 10. Through this program, vendors can
jointly work with MicroStrategy through a self-driven initiative
and deliver certified drivers to new data sources. To enroll,
vendors can submit their information here.
MicroStrategy Held its July
2016 Symposium Series
In July 2016, MicroStrategy's
Symposium Series took place in cities across North America, Europe, the Middle
East and Asia. The 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. It also featured topics on
analytics and mobile applications in retail, banking, higher
education, healthcare and other sectors being transformed by big
data.
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 customers with a
world-class software platform and expert services so they can
deploy unique intelligence applications. To learn more, visit
MicroStrategy online, and follow us on Facebook and
Twitter.
MicroStrategy, MicroStrategy Desktop, MicroStrategy 10,
MicroStrategy 10.5, MicroStrategy Web, MicroStrategy Mobile, Usher,
Usher Security, Usher Professional, Usher Network Manager and
MicroStrategy Professional Services 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 10.5; 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
$
29,632
|
|
$
27,511
|
|
$
75,490
|
|
$
77,634
|
|
Subscription
services
|
|
7,639
|
|
6,546
|
|
22,775
|
|
20,285
|
|
Total product
licenses and subscription services
|
|
37,271
|
|
34,057
|
|
98,265
|
|
97,919
|
|
Product
support
|
|
72,460
|
|
71,392
|
|
212,408
|
|
211,444
|
|
Other
services
|
|
20,165
|
|
24,087
|
|
61,380
|
|
76,984
|
|
Total
revenues
|
|
129,896
|
|
129,536
|
|
372,053
|
|
386,347
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
2,370
|
|
2,680
|
|
6,828
|
|
5,895
|
|
Subscription
services
|
|
3,219
|
|
3,075
|
|
9,667
|
|
9,800
|
|
Total product
licenses and subscription services
|
|
5,589
|
|
5,755
|
|
16,495
|
|
15,695
|
|
Product
support
|
|
3,959
|
|
3,174
|
|
10,919
|
|
9,734
|
|
Other
services
|
|
13,387
|
|
15,755
|
|
42,445
|
|
52,265
|
|
Total cost
of revenues
|
|
22,935
|
|
24,684
|
|
69,859
|
|
77,694
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
106,961
|
|
104,852
|
|
302,194
|
|
308,653
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
39,169
|
|
36,403
|
|
113,448
|
|
109,142
|
|
Research and
development
|
|
18,069
|
|
17,789
|
|
54,804
|
|
48,051
|
|
General and
administrative
|
|
19,703
|
|
19,843
|
|
63,014
|
|
63,071
|
|
Restructuring
costs
|
|
12
|
|
86
|
|
45
|
|
261
|
|
Total
operating expenses
|
|
76,953
|
|
74,121
|
|
231,311
|
|
220,525
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
30,008
|
|
30,731
|
|
70,883
|
|
88,128
|
|
Interest
income, net
|
|
507
|
|
116
|
|
1,449
|
|
129
|
|
Other
(expense) income, net
|
|
(473)
|
|
766
|
|
(386)
|
|
2,601
|
|
Income before
income taxes
|
|
30,042
|
|
31,613
|
|
71,946
|
|
90,858
|
|
Provision for
income taxes
|
|
3,414
|
|
7,720
|
|
12,162
|
|
24,038
|
|
Net
income
|
|
$
26,628
|
|
$
23,893
|
|
$
59,784
|
|
$
66,820
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (1):
|
|
$
2.33
|
|
$
2.10
|
|
$
5.23
|
|
$
5.89
|
|
Weighted average
shares outstanding used in computing basic earnings per
share
|
|
11,431
|
|
11,365
|
|
11,422
|
|
11,345
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share (1):
|
|
$
2.31
|
|
$
2.06
|
|
$
5.20
|
|
$
5.80
|
|
Weighted average
shares outstanding used in computing diluted earnings per
share
|
|
11,521
|
|
11,589
|
|
11,503
|
|
11,521
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2016
|
|
2015*
|
|
Assets
|
|
(unaudited)
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
365,555
|
|
$
292,341
|
|
Restricted
cash
|
|
566
|
|
618
|
|
Short-term
investments
|
|
213,347
|
|
193,320
|
|
Accounts
receivable, net
|
|
58,052
|
|
68,154
|
|
Prepaid
expenses and other current assets
|
11,597
|
|
10,881
|
|
Total current
assets
|
|
649,117
|
|
565,314
|
|
|
|
|
|
|
Property and
equipment, net
|
|
59,668
|
|
65,664
|
|
Capitalized software
development costs, net
|
9,997
|
|
15,855
|
|
Deposits and other
assets
|
|
5,624
|
|
2,072
|
|
Deferred tax assets,
net
|
|
11,103
|
|
7,989
|
|
Total
Assets
|
|
$
735,509
|
|
$
656,894
|
|
|
|
|
|
|
Liabilities and
Stockholders\' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
26,064
|
|
$
31,840
|
|
Accrued
compensation and employee benefits
|
41,417
|
|
40,067
|
|
Accrued
restructuring costs
|
|
2
|
|
56
|
|
Deferred
revenue and advance payments
|
115,626
|
|
100,695
|
|
Total current
liabilities
|
|
183,109
|
|
172,658
|
|
|
|
|
|
|
Deferred revenue and
advance payments
|
15,151
|
|
8,995
|
|
Other long-term
liabilities
|
|
17,221
|
|
19,943
|
|
Deferred tax
liabilities
|
|
127
|
|
17
|
|
Total
Liabilities
|
|
215,608
|
|
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
|
|
540,038
|
|
534,651
|
|
Treasury
stock, at cost; 6,405 shares
|
(475,184)
|
|
(475,184)
|
|
Accumulated
other comprehensive loss
|
(7,959)
|
|
(7,408)
|
|
Retained
earnings
|
|
462,988
|
|
403,204
|
|
Total
Stockholders' Equity
|
|
519,901
|
|
455,281
|
|
Total Liabilities
and Stockholders' Equity
|
$
735,509
|
|
$
656,894
|
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Operating
activities:
|
|
|
|
|
|
Net income
|
|
$
59,784
|
|
$
66,820
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
13,089
|
|
16,172
|
|
|
Bad debt
expense
|
|
1,219
|
|
683
|
|
|
Unrealized net loss
on foreign currency forward contracts
|
|
-
|
|
1,641
|
|
|
Non-cash
restructuring costs and adjustments
|
|
-
|
|
(127)
|
|
|
Deferred
taxes
|
|
(4,439)
|
|
11,015
|
|
|
Release of
liabilities for unrecognized tax benefits
|
|
(394)
|
|
(61)
|
|
|
Share-based
compensation expense
|
|
8,424
|
|
12,503
|
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
(1,208)
|
|
(963)
|
|
|
Reclassification of
foreign currency translation adjustment from other comprehensive
income
|
|
-
|
|
(280)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
8,983
|
|
19,511
|
|
|
Prepaid expenses and
other current assets
|
|
(657)
|
|
3,377
|
|
|
Deposits and other
assets
|
|
(3,905)
|
|
1,562
|
|
|
Accounts payable and
accrued expenses
|
|
(4,668)
|
|
(4,933)
|
|
|
Accrued compensation
and employee benefits
|
|
717
|
|
(10,275)
|
|
|
Accrued restructuring
costs
|
|
(56)
|
|
(1,940)
|
|
|
Deferred revenue and
advance payments
|
|
19,435
|
|
11,153
|
|
|
Other long-term
liabilities
|
|
(2,288)
|
|
(2,415)
|
|
|
|
Net cash provided by
operating activities
|
|
94,036
|
|
123,443
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Proceeds from
redemption of short-term investments
|
|
273,520
|
|
316,000
|
|
Purchases of property
and equipment
|
|
(1,560)
|
|
(3,352)
|
|
Purchases of
short-term investments
|
|
(292,948)
|
|
(344,033)
|
|
Capitalized software
development costs
|
|
-
|
|
(9,598)
|
|
Decrease in
restricted cash
|
|
92
|
|
113
|
|
|
|
Net cash used in
investing activities
|
|
(20,896)
|
|
(40,870)
|
|
|
|
|
|
|
|
|
|
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
|
|
(166)
|
|
(1,430)
|
|
|
|
Net cash (used in)
provided by financing activities
|
|
(1,540)
|
|
4,972
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
1,614
|
|
(4,276)
|
|
Net increase in
cash and cash equivalents
|
|
73,214
|
|
83,269
|
|
Cash and cash
equivalents, beginning of period
|
|
292,341
|
|
146,919
|
|
Cash and cash
equivalents, end of period
|
|
$
365,555
|
|
$
230,188
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
|
REVENUE AND COST
OF REVENUE DETAIL
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
|
Product licenses
|
|
$
29,632
|
|
$
27,511
|
|
$
75,490
|
|
$
77,634
|
|
Subscription services
|
|
7,639
|
|
6,546
|
|
22,775
|
|
20,285
|
|
Total
product licenses and subscription services
|
|
37,271
|
|
34,057
|
|
98,265
|
|
97,919
|
|
Product
support
|
|
72,460
|
|
71,392
|
|
212,408
|
|
211,444
|
|
Other
services:
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
17,669
|
|
22,018
|
|
54,297
|
|
70,475
|
|
Education
|
|
2,496
|
|
2,069
|
|
7,083
|
|
6,509
|
|
Total
other services
|
|
20,165
|
|
24,087
|
|
61,380
|
|
76,984
|
|
Total
revenues
|
|
129,896
|
|
129,536
|
|
372,053
|
|
386,347
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
|
Product licenses
|
|
2,370
|
|
2,680
|
|
6,828
|
|
5,895
|
|
Subscription services
|
|
3,219
|
|
3,075
|
|
9,667
|
|
9,800
|
|
Total
product licenses and subscription services
|
|
5,589
|
|
5,755
|
|
16,495
|
|
15,695
|
|
Product
support
|
|
3,959
|
|
3,174
|
|
10,919
|
|
9,734
|
|
Other
services:
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
11,909
|
|
14,723
|
|
38,309
|
|
49,526
|
|
Education
|
|
1,478
|
|
1,032
|
|
4,136
|
|
2,739
|
|
Total
other services
|
|
13,387
|
|
15,755
|
|
42,445
|
|
52,265
|
|
Total
cost of revenues
|
|
22,935
|
|
24,684
|
|
69,859
|
|
77,694
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
106,961
|
|
$
104,852
|
|
$
302,194
|
|
$
308,653
|
|
MICROSTRATEGY
INCORPORATED
|
|
DEFERRED REVENUE
DETAIL
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
|
2016
|
|
2015*
|
|
2015
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
Current:
|
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
11,401
|
|
$
13,506
|
|
$
13,155
|
|
Deferred subscription
services revenue
|
|
12,820
|
|
15,763
|
|
11,172
|
|
Deferred product
support revenue
|
|
140,593
|
|
158,738
|
|
135,999
|
|
Deferred other
services revenue
|
|
9,226
|
|
9,149
|
|
6,794
|
|
Gross
current deferred revenue and advance payments
|
|
174,040
|
|
197,156
|
|
167,120
|
|
Less: unpaid deferred
revenue
|
|
(58,414)
|
|
(96,461)
|
|
(51,616)
|
|
Net
current deferred revenue and advance payments
|
|
$
115,626
|
|
$
100,695
|
|
$
115,504
|
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
9,918
|
|
$
5,397
|
|
$
6,344
|
|
Deferred subscription
services revenue
|
|
1,594
|
|
2,138
|
|
808
|
|
Deferred product
support revenue
|
|
6,394
|
|
7,607
|
|
6,962
|
|
Deferred other
services revenue
|
|
763
|
|
795
|
|
1,166
|
|
Gross
non-current deferred revenue and advance payments
|
|
18,669
|
|
15,937
|
|
15,280
|
|
Less: unpaid deferred
revenue
|
|
(3,518)
|
|
(6,942)
|
|
(4,983)
|
|
Net
non-current deferred revenue and advance payments
|
|
$
15,151
|
|
$
8,995
|
|
$
10,297
|
|
|
|
|
|
|
|
|
Total current and
non-current:
|
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
21,319
|
|
$
18,903
|
|
$
19,499
|
|
Deferred subscription
services revenue
|
|
14,414
|
|
17,901
|
|
11,980
|
|
Deferred product
support revenue
|
|
146,987
|
|
166,345
|
|
142,961
|
|
Deferred other
services revenue
|
|
9,989
|
|
9,944
|
|
7,960
|
|
Gross
current and non-current deferred revenue and advance
payments
|
|
192,709
|
|
213,093
|
|
182,400
|
|
Less: unpaid deferred
revenue
|
|
(61,932)
|
|
(103,403)
|
|
(56,599)
|
|
Net
current and non-current deferred revenue and advance
payments
|
|
$
130,777
|
|
$
109,690
|
|
$
125,801
|
|
|
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
30,008
|
|
$
30,731
|
|
$
70,883
|
|
$
88,128
|
|
Share-based
compensation expense
|
|
3,349
|
|
4,546
|
|
8,424
|
|
12,503
|
|
Restructuring
costs
|
|
12
|
|
86
|
|
45
|
|
261
|
|
Non-GAAP income from
operations
|
|
$
33,369
|
|
$
35,363
|
|
$
79,352
|
|
$
100,892
|
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
|
WORLDWIDE EMPLOYEE
HEADCOUNT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
services
|
|
33
|
|
37
|
|
37
|
|
39
|
|
49
|
|
Product
support
|
|
127
|
|
131
|
|
135
|
|
156
|
|
162
|
|
Consulting
|
|
480
|
|
467
|
|
455
|
|
452
|
|
458
|
|
Education
|
|
27
|
|
28
|
|
31
|
|
31
|
|
35
|
|
Sales and
marketing
|
|
507
|
|
513
|
|
531
|
|
541
|
|
571
|
|
Research and
development
|
|
464
|
|
461
|
|
499
|
|
532
|
|
528
|
|
General and
administrative
|
|
301
|
|
310
|
|
317
|
|
314
|
|
317
|
|
Total
headcount
|
|
1,939
|
|
1,947
|
|
2,005
|
|
2,065
|
|
2,120
|
|
|
|
|
|
|
|
|
|
|
|
|
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-third-quarter-2016-financial-results-300352749.html
SOURCE MicroStrategy Incorporated