TYSONS CORNER, Va.,
Oct. 26, 2015 /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, 2015 (the third quarter of its 2015
fiscal year).
Third quarter 2015 revenues were $129.5
million versus $151.2 million
for the third quarter of 2014, a 14% decrease. Product
licenses and subscription services revenues for the third quarter
of 2015 were $34.1 million versus
$40.0 million for the third quarter
of 2014, a 15% decrease. Product support revenues for the
third quarter of 2015 were $71.4
million versus $75.0 million
for the third quarter of 2014, a 5% decrease. Other services
revenues for the third quarter of 2015 were $24.1 million versus $36.2
million for the third quarter of 2014, a 33% decrease.
Foreign currency headwinds continued to have a negative impact on
revenues for the third quarter of 2015.
Operating expenses for the third quarter of 2015 were
$74.1 million versus $123.2 million for the third quarter of 2014, a
40% decrease. Third quarter 2015 operating expenses included
$0.1 million in restructuring costs,
as compared to $11.6 million in
restructuring costs in the third quarter of 2014. In
addition, MicroStrategy did not capitalize any software development
costs during the third quarter of 2015, as compared to $2.3 million in software development costs
capitalized during the third quarter of 2014.
Income from operations for the third quarter of 2015 was
$30.7 million, as compared to a loss
from operations of $7.0 million for
the third quarter of 2014. Net income for the third quarter
of 2015 was $23.9 million, or
$2.06 per share on a diluted basis,
as compared to a net loss of $0.8
million, or $0.07 per share on
a diluted basis, for the third quarter of 2014.
Non-GAAP income from operations, which excludes share-based
compensation expense and restructuring costs, was $35.4 million for the third quarter of 2015
versus $8.5 million for the third
quarter of 2014.
As of September 30, 2015,
MicroStrategy had cash and cash equivalents and short-term
investments of $456.9 million, as
compared to $345.5 million as of
December 31, 2014, an increase of
$111.4 million. As of
September 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 tables at the end of this press release include a
reconciliation of income (loss) from operations to non-GAAP income
(loss) from operations for the three and nine months ended
September 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 third 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 57551320.
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 October 31, 2015 at
(855) 859-2056 (domestically) or (404) 537-3406 (internationally)
using the passcode 57551320. 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's Worldwide Symposium Series Sets Record
Attendance
Throughout Q3 of 2015, MicroStrategy's Worldwide Symposium
Series events set record attendance on their tour around the globe,
demonstrating that business and IT audiences have a keen interest
in learning about the powerful capabilities of MicroStrategy 10
Secure Enterprise™. MicroStrategy enthusiasts gathered for
keynote presentations, hands-on enterprise data discovery
workshops, and live Q&A and networking opportunities with
innovators from MicroStrategy's leading customers, partners, and
sponsors.
More than 4,000 companies and organizations in the U.S., EMEA,
and APAC rely on MicroStrategy to make sense of large data volumes,
get answers in an instant, build stunning visualizations, and
present a single version of the truth — securely, at scale, and on
all standard devices. MicroStrategy's customers who presented at
the 2015 Symposium Series included AGBAR; Ahold; AIG; Amadeus
Travel; Caisse d'Epargne; Carphone; Ceva
Sante; Groupe BPCE; Hilton Worldwide; ING DIRECT Espana;
Ipsen; Lottoland; McDonald's Espana; McDonald's UK; O2; Spar;
Telefonica, S.A.; Weiler Corporation; and Zurich.
MicroStrategy 10.1™ Delivers New Features and Enhancements
that Bolster Performance for Enterprise Data Discovery, Analytics,
and Mobile
In September, MicroStrategy announced the general availability
of MicroStrategy 10.1. The release included hundreds of new
and improved features and a wide range of performance enhancements
across the product platform. Further extending the self-service
capabilities of MicroStrategy 10 Secure Enterprise, MicroStrategy
Desktop™ 10.1 and MicroStrategy Web™ 10.1 added new enhancements
for enterprise data discovery users, enabling data preparation and
data wrangling across more data sources, while delivering a clean,
new look with modern grid styles, navigation, and consolidated
views and search. Other highlights included new capabilities for D3
visualizations, ESRI geospatial visualizations, and iOS 9 within
MicroStrategy Mobile™ and custom Mobile Productivity Apps. To
learn more about MicroStrategy Analytics™, visit:
http://www.microstrategy.com/us/platform/whats-new.
The MicroStrategy 10.1 release came shortly after the release of
MicroStrategy 10 Secure Enterprise, a groundbreaking enterprise
analytics solution that combines traditional business intelligence
functionality with data discovery, mobile analytics, and powerful
enterprise security. MicroStrategy 10.1 builds on the version 10
foundation with a significant collection of new capabilities in
speed, flexibility, and performance.
"Our customer focus has guided the development of MicroStrategy
10.1, helping to ensure that we continue to bring cutting-edge
technology to the market," said Paul
Zolfaghari, President, MicroStrategy Incorporated.
"Our new agile engineering development methods are resulting in new
features and enhancements being rolled out to our global customer
base on a more frequent basis. We are confident that 10.1
delivers an even higher level of analytics value for organizations
and institutions around the world."
MicroStrategy Connector to Presto Opens Door to Fast,
Interactive Analytics for Big Data Exploration
In September, MicroStrategy announced that through its optimized
Presto Connector, MicroStrategy 10 Secure Enterprise enables
organizations with immense amounts of data to run thousands of
quick, interactive analytic queries against multiple data
stores. Developed by Facebook, Presto is an open source
distributed SQL query engine for running interactive analytic
queries against data sources of all sizes ranging from gigabytes to
petabytes.
"The impact of having a JDBC connector to Presto is huge for the
analytics community," said Tim Lang,
Senior Executive Vice President and Chief Technology Officer,
MicroStrategy Incorporated. "MicroStrategy 10 Secure
Enterprise's optimized Presto Connector empowers our Big Data
customers to query into their data quickly, interactively, at
petabyte scale. It enables users to query and explore their immense
amounts of data, sometimes spread across multiple data sources,
without performance constraints. Having this connector in
MicroStrategy Desktop and Web opens the door to build quick
analytics for the masses who typically access Presto pragmatically
and dump results in files or databases to connect with additional
visualization tools."
Targeted at analysts who expect fast interactive response times,
Presto allows querying data where it lives, including Hive,
Cassandra, relational databases or even proprietary data stores. A
single Presto query can combine data from multiple sources, and
Presto supports data exploration across an entire organization.
Presto breaks the false choice between having fast analytics using
an expensive commercial solution or using a slow "free" solution
that requires excessive hardware.
Usher™ Achieves FIDO Alliance Certification for its
Innovative Enterprise Mobile Security Solution
In August, Usher, MicroStrategy's advanced enterprise security
solution that is designed to replace vulnerable security measures
such as passwords and keycards, was certified by The FIDO (Fast
IDentity Online) Alliance. Usher passed a rigorous series of tests
that measure compliance with the FIDO Universal Authentication
Framework (UAF) and confirm interoperability with other FIDO
Certified products and services that support FIDO 1.0
specifications.
"Achieving FIDO certification demonstrates MicroStrategy's
dedication to providing our customers and the marketplace with an
innovative mobile security solution that ends the password
nightmare," said Jonathan Klein,
President, MicroStrategy Incorporated. "Our customers can now
use Usher to adopt the FIDO UAF standard in a matter of
minutes—quickly making great improvements to their security. We
encourage governments, businesses, and organizations to move beyond
the antiquated password model and try out Usher's robust and secure
multi-factor authentication solution."
Non-GAAP Financial Measure
MicroStrategy is providing a supplemental financial measure for
income from continuing operations that excludes the impact of
share-based compensation arrangements and restructuring activities.
This financial measure is not a measurement of financial
performance under generally accepted accounting principles in
the United States ("GAAP") and, as
a result, this financial measure may not be comparable to similarly
titled measures of other companies. Management uses this non-GAAP
financial measure internally to help understand, manage, and
evaluate business performance and to help make operating decisions.
MicroStrategy believes that this non-GAAP financial measure is also
useful to investors and analysts in comparing its performance
across reporting periods on a consistent basis because it excludes
a significant non-cash share-based compensation expense that
MicroStrategy believes is not reflective of its general business
performance and significant restructuring charges that we believe
are not reflective of ongoing operating results. In addition,
accounting for share-based compensation arrangements requires
significant management judgment and the resulting expense could
vary significantly in comparison to other companies.
Therefore, MicroStrategy believes the use of this non-GAAP
financial measure can also facilitate comparison of MicroStrategy's
operating results to those of its competitors.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy (Nasdaq: MSTR) is a leading
worldwide provider of enterprise software platforms. The
Company's mission is to provide enterprise analytics, mobility, and
security platforms that are flexible, powerful, scalable, and
user-friendly. To learn more, visit MicroStrategy online, and
follow us on Facebook and Twitter.
MicroStrategy, MicroStrategy 10, MicroStrategy 10 Secure
Enterprise, MicroStrategy 10.1, MicroStrategy Mobile, MicroStrategy
Analytics, MicroStrategy Desktop, MicroStrategy Web, 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
$
27,511
|
|
$
33,969
|
|
$
77,634
|
|
$
91,208
|
|
Subscription
services
|
|
6,546
|
|
5,993
|
|
20,285
|
|
16,317
|
|
Total product
licenses and subscription services
|
|
34,057
|
|
39,962
|
|
97,919
|
|
107,525
|
|
Product
support
|
|
71,392
|
|
75,019
|
|
211,444
|
|
221,069
|
|
Other
services
|
|
24,087
|
|
36,221
|
|
76,984
|
|
102,365
|
|
Total
revenues
|
|
129,536
|
|
151,202
|
|
386,347
|
|
430,959
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
Product
licenses
|
|
2,680
|
|
1,542
|
|
5,895
|
|
5,456
|
|
Subscription
services
|
|
3,075
|
|
4,502
|
|
9,800
|
|
13,829
|
|
Total product
licenses and subscription services
|
|
5,755
|
|
6,044
|
|
15,695
|
|
19,285
|
|
Product
support
|
|
3,174
|
|
3,695
|
|
9,734
|
|
10,713
|
|
Other
services
|
|
15,755
|
|
25,214
|
|
52,265
|
|
73,577
|
|
Total cost
of revenues
|
|
24,684
|
|
34,953
|
|
77,694
|
|
103,575
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
104,852
|
|
116,249
|
|
308,653
|
|
327,384
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
36,403
|
|
58,195
|
|
109,142
|
|
178,028
|
|
Research and
development
|
|
17,789
|
|
28,659
|
|
48,051
|
|
89,469
|
|
General and
administrative
|
|
19,843
|
|
24,811
|
|
63,071
|
|
76,376
|
|
Restructuring
costs
|
|
86
|
|
11,578
|
|
261
|
|
11,578
|
|
Total
operating expenses
|
|
74,121
|
|
123,243
|
|
220,525
|
|
355,451
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
30,731
|
|
(6,994)
|
|
88,128
|
|
(28,067)
|
|
Interest
income, net
|
|
116
|
|
53
|
|
129
|
|
133
|
|
Other income,
net
|
|
766
|
|
4,928
|
|
2,601
|
|
3,336
|
|
Income (loss)
before income taxes
|
|
31,613
|
|
(2,013)
|
|
90,858
|
|
(24,598)
|
|
Provision for
(benefit from) income taxes
|
|
7,720
|
|
(1,168)
|
|
24,038
|
|
(6,934)
|
|
Net income
(loss)
|
|
$
23,893
|
|
$
(845)
|
|
$
66,820
|
|
$
(17,664)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share (1):
|
|
$
2.10
|
|
$
(0.07)
|
|
$
5.89
|
|
$
(1.56)
|
|
Weighted average
shares outstanding used in computing basic earnings (loss) per
share
|
11,365
|
|
11,301
|
|
11,345
|
|
11,301
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share (1):
|
|
$
2.06
|
|
$
(0.07)
|
|
$
5.80
|
|
$
(1.56)
|
|
Weighted average
shares outstanding used in computing diluted earnings (loss) per
share
|
11,589
|
|
11,301
|
|
11,521
|
|
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)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2015
|
|
2014*
|
|
Assets
|
|
(unaudited)
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
230,188
|
|
$
146,919
|
|
Restricted
cash
|
|
487
|
|
661
|
|
Short-term
investments
|
|
226,689
|
|
198,547
|
|
Accounts
receivable, net
|
|
55,039
|
|
78,633
|
|
Prepaid
expenses and other current assets
|
12,078
|
|
17,669
|
|
Deferred tax
assets, net
|
|
12,373
|
|
19,936
|
|
Total current
assets
|
|
536,854
|
|
462,365
|
|
|
|
|
|
|
Property and
equipment, net
|
|
68,862
|
|
77,852
|
|
Capitalized software
development costs, net
|
17,807
|
|
13,469
|
|
Deposits and other
assets
|
|
2,184
|
|
3,951
|
|
Deferred tax assets,
net
|
|
2,247
|
|
1,160
|
|
Total
Assets
|
|
$
627,954
|
|
$
558,797
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
26,609
|
|
$
35,458
|
|
Accrued
compensation and employee benefits
|
38,570
|
|
50,588
|
|
Accrued
restructuring costs
|
|
98
|
|
2,284
|
|
Deferred
revenue and advance payments
|
115,504
|
|
108,413
|
|
Deferred tax
liabilities
|
|
395
|
|
557
|
|
Total current
liabilities
|
|
181,176
|
|
197,300
|
|
|
|
|
|
|
Deferred revenue and
advance payments
|
10,297
|
|
10,818
|
|
Other long-term
liabilities
|
|
20,166
|
|
22,679
|
|
Deferred tax
liabilities
|
|
7,803
|
|
3,529
|
|
Total
Liabilities
|
|
219,442
|
|
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
|
|
525,632
|
|
506,727
|
|
Treasury
stock, at cost; 6,405 shares
|
(475,184)
|
|
(475,184)
|
|
Accumulated
other comprehensive loss
|
(6,047)
|
|
(4,363)
|
|
Retained
earnings
|
|
364,093
|
|
297,273
|
|
Total
Stockholders' Equity
|
|
408,512
|
|
324,471
|
|
Total Liabilities
and Stockholders' Equity
|
$
627,954
|
|
$
558,797
|
|
|
|
|
|
|
*Derived from
audited financial statements.
|
|
MICROSTRATEGY
INCORPORATED
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Operating
activities:
|
|
|
|
|
|
Net income
(loss)
|
|
$ 66,820
|
|
$ (17,664)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
16,172
|
|
19,305
|
|
|
Bad debt
expense
|
|
683
|
|
2,242
|
|
|
Unrealized net loss
(gain) on foreign currency forward contracts
|
|
1,641
|
|
(926)
|
|
|
Non-cash portion of
adjustments to accrued restructuring costs
|
|
(127)
|
|
165
|
|
|
Deferred
taxes
|
|
11,015
|
|
(12,337)
|
|
|
Release of
liabilities for unrecognized tax benefits
|
|
(61)
|
|
-
|
|
|
Share-based
compensation expense
|
|
12,503
|
|
8,561
|
|
|
Excess tax benefits
from share-based compensation arrangements
|
|
(963)
|
|
-
|
|
|
Reclassification of
foreign currency translation adjustment from other comprehensive
income
|
|
(280)
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
19,511
|
|
23,488
|
|
|
Prepaid expenses and
other current assets
|
|
3,377
|
|
(5,197)
|
|
|
Deposits and other
assets
|
|
1,562
|
|
412
|
|
|
Accounts payable and
accrued expenses
|
|
(4,933)
|
|
(2,757)
|
|
|
Accrued compensation
and employee benefits
|
|
(10,275)
|
|
(19,380)
|
|
|
Accrued restructuring
costs
|
|
(1,940)
|
|
8,083
|
|
|
Deferred revenue and
advance payments
|
|
11,153
|
|
11,723
|
|
|
Other long-term
liabilities
|
|
(2,415)
|
|
603
|
|
|
|
Net cash provided by
operating activities
|
|
123,443
|
|
16,321
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Proceeds from
redemption of short-term investments
|
|
316,000
|
|
222,300
|
|
Purchases of property
and equipment
|
|
(3,352)
|
|
(11,856)
|
|
Purchases of
short-term investments
|
|
(344,033)
|
|
(303,565)
|
|
Capitalized software
development costs
|
|
(9,598)
|
|
(2,254)
|
|
Decrease (increase)
in restricted cash
|
|
113
|
|
(1,013)
|
|
|
|
Net cash used in
investing activities
|
|
(40,870)
|
|
(96,388)
|
|
|
|
|
|
|
|
|
|
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
|
|
(1,430)
|
|
(2,035)
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
4,972
|
|
(2,035)
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(4,276)
|
|
(2,063)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
83,269
|
|
(84,165)
|
|
Cash and cash
equivalents, beginning of period
|
|
146,919
|
|
220,171
|
|
Cash and cash
equivalents, end of period
|
|
$ 230,188
|
|
$ 136,006
|
|
|
|
|
|
|
|
|
|
MICROSTRATEGY
INCORPORATED
|
|
REVENUE AND COST
OF REVENUE DETAIL
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
|
Product licenses
|
|
$
27,511
|
|
$
33,969
|
|
$
77,634
|
|
$
91,208
|
|
Subscription services
|
|
6,546
|
|
5,993
|
|
20,285
|
|
16,317
|
|
Total
product licenses and subscription services
|
|
34,057
|
|
39,962
|
|
97,919
|
|
107,525
|
|
Product
support
|
|
71,392
|
|
75,019
|
|
211,444
|
|
221,069
|
|
Other
services:
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
22,018
|
|
32,812
|
|
70,475
|
|
91,510
|
|
Education
|
|
2,069
|
|
3,409
|
|
6,509
|
|
10,855
|
|
Total
other services
|
|
24,087
|
|
36,221
|
|
76,984
|
|
102,365
|
|
Total
revenues
|
|
129,536
|
|
151,202
|
|
386,347
|
|
430,959
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
Product licenses and
subscription services:
|
|
|
|
|
|
|
|
|
|
Product licenses
|
|
2,680
|
|
1,542
|
|
5,895
|
|
5,456
|
|
Subscription services
|
|
3,075
|
|
4,502
|
|
9,800
|
|
13,829
|
|
Total
product licenses and subscription services
|
|
5,755
|
|
6,044
|
|
15,695
|
|
19,285
|
|
Product
support
|
|
3,174
|
|
3,695
|
|
9,734
|
|
10,713
|
|
Other
services:
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
14,723
|
|
23,841
|
|
49,526
|
|
68,830
|
|
Education
|
|
1,032
|
|
1,373
|
|
2,739
|
|
4,747
|
|
Total
other services
|
|
15,755
|
|
25,214
|
|
52,265
|
|
73,577
|
|
Total
cost of revenues
|
|
24,684
|
|
34,953
|
|
77,694
|
|
103,575
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
104,852
|
|
$
116,249
|
|
$
308,653
|
|
$
327,384
|
|
MICROSTRATEGY
INCORPORATED
|
|
DEFERRED REVENUE
DETAIL
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
|
2015
|
|
2014*
|
|
2014
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
Current:
|
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
13,155
|
|
$
10,927
|
|
$
10,010
|
|
Deferred subscription
services revenue
|
|
11,172
|
|
16,018
|
|
10,382
|
|
Deferred product
support revenue
|
|
135,999
|
|
168,833
|
|
145,917
|
|
Deferred other
services revenue
|
|
6,794
|
|
10,564
|
|
10,216
|
|
Gross
current deferred revenue and advance payments
|
|
167,120
|
|
206,342
|
|
176,525
|
|
Less: unpaid deferred
revenue
|
|
(51,616)
|
|
(97,929)
|
|
(55,818)
|
|
Net
current deferred revenue and advance payments
|
|
$
115,504
|
|
$
108,413
|
|
$ 120,707
|
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
6,344
|
|
$
8,012
|
|
$
7,700
|
|
Deferred subscription
services revenue
|
|
808
|
|
750
|
|
669
|
|
Deferred product
support revenue
|
|
6,962
|
|
7,505
|
|
7,062
|
|
Deferred other
services revenue
|
|
1,166
|
|
1,047
|
|
951
|
|
Gross
non-current deferred revenue and advance payments
|
|
15,280
|
|
17,314
|
|
16,382
|
|
Less: unpaid deferred
revenue
|
|
(4,983)
|
|
(6,496)
|
|
(4,903)
|
|
Net
non-current deferred revenue and advance payments
|
|
$
10,297
|
|
$
10,818
|
|
$
11,479
|
|
|
|
|
|
|
|
|
Total current and
non-current:
|
|
|
|
|
|
|
|
Deferred product
licenses revenue
|
|
$
19,499
|
|
$
18,939
|
|
$
17,710
|
|
Deferred subscription
services revenue
|
|
11,980
|
|
16,768
|
|
11,051
|
|
Deferred product
support revenue
|
|
142,961
|
|
176,338
|
|
152,979
|
|
Deferred other
services revenue
|
|
7,960
|
|
11,611
|
|
11,167
|
|
Gross
current and non-current deferred revenue and advance
payments
|
|
182,400
|
|
223,656
|
|
192,907
|
|
Less: unpaid deferred
revenue
|
|
(56,599)
|
|
(104,425)
|
|
(60,721)
|
|
Net
current and non-current deferred revenue and advance
payments
|
|
$
125,801
|
|
$
119,231
|
|
$ 132,186
|
|
|
|
|
|
|
|
|
*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,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP income (loss) from operations:
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
$
30,731
|
|
$
(6,994)
|
|
$
88,128
|
|
$
(28,067)
|
|
Share-based
compensation expense
|
|
4,546
|
|
3,879
|
|
12,503
|
|
8,561
|
|
Restructuring
costs
|
|
86
|
|
11,578
|
|
261
|
|
11,578
|
|
Non-GAAP income
(loss) from operations
|
|
$
35,363
|
|
$
8,463
|
|
$
100,892
|
|
$
(7,928)
|
|
MICROSTRATEGY
INCORPORATED
|
|
WORLDWIDE EMPLOYEE
HEADCOUNT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
|
|
2014
|
|
2014
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
services
|
|
61
|
|
57
|
|
43
|
|
37
|
|
33
|
|
Product
support
|
|
144
|
|
138
|
|
138
|
|
130
|
|
127
|
|
Consulting
|
|
676
|
|
600
|
|
554
|
|
508
|
|
480
|
|
Education
|
|
35
|
|
24
|
|
19
|
|
25
|
|
27
|
|
Sales and
marketing
|
|
827
|
|
662
|
|
577
|
|
515
|
|
507
|
|
Research and
development
|
|
965
|
|
645
|
|
580
|
|
508
|
|
464
|
|
General and
administrative
|
|
417
|
|
344
|
|
321
|
|
303
|
|
301
|
|
Total
headcount
|
|
3,125
|
|
2,470
|
|
2,232
|
|
2,026
|
|
1,939
|
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SOURCE MicroStrategy Incorporated