News

MicroStrategy Announces First Quarter 2020 Financial Results

TYSONS CORNER, Va.–(BUSINESS WIRE)–$MSTR #MSTRMicroStrategy® (Nasdaq: MSTR), the largest independent publicly-traded business intelligence company, today announced financial results for the three-month period ended March 31, 2020 (the first quarter of its 2020 fiscal year).

As the world faces uncertain times with the impacts of COVID-19, analytics has never been more essential for organizations. To help our customers—many of whom are on the front lines of this crisis performing mission-critical services—continue their operations, our technical support and cloud operations teams remain staffed 24/7 across the globe. Our enterprise-grade, governed, and secure platform provides intelligence and stability at a time when our customers need them most in order to make fast, data-driven decisions,” said Michael J. Saylor, CEO, MicroStrategy Incorporated. “We remain focused on executing on our strategic priorities around cloud, HyperIntelligence®, and upgrading customers, while prudently managing the business through this rapidly evolving economic situation.”

First Quarter 2020 Financial Highlights

  • Revenues: Total revenues for the first quarter of 2020 were $111.4 million, a 3.4% decrease, or a 1.7% decrease on a non-GAAP constant currency basis, compared to the first quarter of 2019. Product licenses and subscription services revenues for the first quarter of 2020 were $20.6 million, a 19.2% decrease, or a 16.9% decrease on a non-GAAP constant currency basis, compared to the first quarter of 2019. Product support revenues for the first quarter of 2020 were $71.2 million, a 0.4% decrease, or a 1.2% increase on a non-GAAP constant currency basis, compared to the first quarter of 2019. Other services revenues for the first quarter of 2020 were $19.7 million, a 6.7% increase, or a 8.1% increase on a non-GAAP constant currency basis, compared to the first quarter of 2019.
  • Gross Profit: Gross profit for the first quarter of 2020 was $86.9 million, representing a 78.0% gross margin, compared to a gross margin of 77.3% in the first quarter of 2019.
  • Operating Expenses: Operating expenses for the first quarter of 2020 were $87.0 million, a 12.7% decrease compared to the first quarter of 2019.
  • Loss from Operations: Loss from operations for the first quarter of 2020 was $0.1 million versus $10.4 million for the first quarter of 2019. Non-GAAP income from operations, which excludes share-based compensation expense, was $3.0 million for the first quarter of 2020 versus non-GAAP loss from operations of $7.4 million for the first quarter of 2019.
  • Net Income: Net income for the first quarter of 2020 was $0.7 million, or $0.07 per share on a diluted basis, as compared to a net loss of $7.9 million, or $0.77 per share on a diluted basis, for the first quarter of 2019. Contributing to net income for the first quarter of 2020 was $1.9 million in net interest income.
  • Cash and Short-term Investments: As of March 31, 2020, MicroStrategy had cash and cash equivalents and short-term investments of $539.2 million, as compared to $565.6 million as of December 31, 2019, a decrease of $26.4 million. During the first quarter of 2020, MicroStrategy repurchased 354,633 shares of its class A common stock for an aggregate purchase price of approximately $50.7 million. As of March 31, 2020, MicroStrategy had 7.7 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 GAAP to non-GAAP financial measures for the three months ended March 31, 2020 and 2019. An explanation of non-GAAP financial measures is also included under the heading “Non-GAAP Financial Measures” below.

MicroStrategy uses its Intelligent Enterprise platform across the enterprise and has created an interactive dossier with quarterly financial performance data. Anyone can access the MSTR Financials dossier via a web browser, or by downloading the MicroStrategy Library app on an iOS or Android device. To download the native apps, visit MicroStrategy Library for iPad, MicroStrategy Library for iPhone, or MicroStrategy Library for Android tablet and smartphone.

Recent Business Highlights

The following are some key business highlights from the first quarter of 2020 related to MicroStrategy’s customer focus, recognition, and product innovation:

  • Customer Focus. MicroStrategy is helping its customers in multiple ways, including offering programs that encourage their upgrade to MicroStrategy 2020™ and teach new skills. These offerings consist of:

    • Free support to its customers to upgrade to MicroStrategy 2020 through June 30, 2020.
    • Free online education classes and certifications to its customers through May 15, 2020.

      MicroStrategy World 2020 hosted thousands of product experts, thought leaders, and MicroStrategy users for three days of inspirational keynotes, educational sessions, workshops, and customer and partner presentations. At the conference, MicroStrategy announced:

    • Customer awards to Petco, Lowe’s, Sonic Automotive, and Ta-Ta Supermarkets for their HyperIntelligence-enabled, innovative, and impactful analytics solutions.
    • Partner awards to Amazon Web Services (“AWS”), DataRobot, Datastrong, and T-Systems for delivering modern analytics to organizations using the MicroStrategy platform.
  • Recognition. Numerous leading organizations, such as the General Services Administration, Pfizer, and Nu Skin, purchased HyperIntelligence during the quarter. MicroStrategy was also recognized in the following Gartner published research:

    • MicroStrategy received the highest use case scores from Gartner in the Enterprise Analytics Use Case (4.86 out of 5) and Embedded Analytics Use Case (4.96 out of 5) in the Critical Capabilities for Analytics and Business Intelligence Platforms report(1).
    • MicroStrategy was recognized as a Challenger in Gartner’s 2020 Magic Quadrant for Analytics and Business Intelligence Platforms report(2).
  • Product Innovation. MicroStrategy continued to drive innovation in the following ways:

    • In the first quarter of 2020, MicroStrategy announced the general availability of MicroStrategy 2020, its flagship platform. Highlights of MicroStrategy 2020 include design and performance enhancements to HyperIntelligence, enhanced AWS and Microsoft Azure support, new self-service authoring capabilities for Dossier®, improved Microsoft Excel experience through the MicroStrategy Office connector, and new data science connectors to Jupyter Notebook and RStudio.
    • Published the Coronavirus Dossier so that people can stay current with the latest headlines and easily share relevant data and insights using the latest features of the MicroStrategy 2020 platform.

MicroStrategy Names Phong Le Chief Financial Officer

MicroStrategy also announced today that Lisa Mayr resigned from her position as its Senior Executive Vice President & Chief Financial Officer on April 23, 2020. In connection with her resignation, MicroStrategy appointed Phong Le, MicroStrategy’s Senior Executive Vice President & Chief Operating Officer, to succeed Ms. Mayr as its Chief Financial Officer, effective immediately. In addition to his new responsibilities as Chief Financial Officer, Mr. Le will continue to serve as MicroStrategy’s Senior Executive Vice President & Chief Operating Officer. Mr. Le will continue to report to Michael Saylor, MicroStrategy’s Chairman, President & Chief Executive Officer.

Conference Call

MicroStrategy will be discussing its first quarter 2020 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 8699165. A live and archived webcast will be available under the “Events” section on MicroStrategy’s investor relations website at https://ir.microstrategy.com/events-presentations. A replay of the conference call will be available beginning approximately two hours after the call concludes until May 5, 2020 at (855) 859-2056 (domestically) or (404) 537-3406 (internationally) using the passcode 8699165.

Non-GAAP Financial Measures

MicroStrategy is providing supplemental financial measures for (i) non-GAAP income (loss) from operations that excludes the impact of share-based compensation arrangements and (ii) non-GAAP constant currency revenues that exclude foreign currency exchange rate fluctuations. These supplemental financial measures are not measurements of financial performance under generally accepted accounting principles in the United States (“GAAP”) and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate business performance and to help make operating decisions.

MicroStrategy believes that these non-GAAP financial measures are also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis. The first supplemental financial measure excludes a significant non-cash expense that MicroStrategy believes is not reflective of its general business performance, and for which the accounting requires management judgment and the resulting share-based compensation expense could vary significantly in comparison to other companies. The second set of supplemental financial measures excludes changes resulting from fluctuations in foreign currency exchange rates so that results may be compared to the same period in the prior year on a non-GAAP constant currency basis. MicroStrategy believes the use of these non-GAAP financial measures can also facilitate comparison of MicroStrategy’s operating results to those of its competitors.

About MicroStrategy Incorporated

MicroStrategy (Nasdaq: MSTR) is the largest independent publicly-traded business intelligence company, with the leading enterprise analytics platform. Our vision is to enable Intelligence Everywhere. MicroStrategy provides modern analytics on an open, comprehensive enterprise platform used by many of the world’s most admired brands in the Fortune Global 500. Optimized for cloud and on-premises deployments, the platform features HyperIntelligence, a breakthrough technology that overlays actionable enterprise data on popular business applications to help users make smarter, faster decisions. For more information about MicroStrategy, visit www.microstrategy.com.

MicroStrategy, HyperIntelligence, Intelligent Enterprise, MicroStrategy Library, MicroStrategy 2020, MicroStrategy World, Dossier, MicroStrategy Office, and Intelligence Everywhere 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 2020; impacts of the COVID-19 pandemic; 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; customers shifting from a product license model to a cloud subscription model; competitive factors; general economic conditions; currency fluctuations; and other risks detailed in the Company’s registration statements and periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this release.

MSTR-F

(1) Gartner, Critical Capabilities for Analytics and Business Intelligence Platforms, Kurt Schlegel, James Richardson, Rita Sallam, Austin Kronz, Julian Sun, 17 March 2020.

(2) Gartner, Magic Quadrant for Analytics and Business Intelligence Platforms, James Richardson, Rita Sallam, Kurt Schlegel, Austin Kronz, Julian Sun, 11 February 2020.

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

The Gartner content described herein, (the “Gartner Content”) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Quarterly Report) and the opinions expressed in the Gartner Content are subject to change without notice.

 

MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

(unaudited)

 

Revenues

 

 

 

 

 

 

 

 

Product licenses

 

$

12,584

 

 

$

18,291

 

Subscription services

 

 

7,968

 

 

 

7,144

 

Total product licenses and subscription services

 

 

20,552

 

 

 

25,435

 

Product support

 

 

71,158

 

 

 

71,450

 

Other services

 

 

19,714

 

 

 

18,481

 

Total revenues

 

 

111,424

 

 

 

115,366

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

Product licenses

 

 

670

 

 

 

519

 

Subscription services

 

 

4,064

 

 

 

3,598

 

Total product licenses and subscription services

 

 

4,734

 

 

 

4,117

 

Product support

 

 

6,718

 

 

 

7,067

 

Other services

 

 

13,093

 

 

 

14,989

 

Total cost of revenues

 

 

24,545

 

 

 

26,173

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

86,879

 

 

 

89,193

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Sales and marketing

 

 

39,518

 

 

 

48,760

 

Research and development

 

 

26,101

 

 

 

28,215

 

General and administrative

 

 

21,332

 

 

 

22,604

 

Total operating expenses

 

 

86,951

 

 

 

99,579

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(72

)

 

 

(10,386

)

Interest income, net

 

 

1,855

 

 

 

2,566

 

Other income (expense), net

 

 

434

 

 

 

(596

)

Income (loss) before income taxes

 

 

2,217

 

 

 

(8,416

)

Provision for (benefit from) income taxes

 

 

1,560

 

 

 

(510

)

Net income (loss)

 

$

657

 

 

$

(7,906

)

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share (1):

 

$

0.07

 

 

$

(0.77

)

Weighted average shares outstanding used in computing basic earnings (loss) per share

 

 

9,976

 

 

 

10,328

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share (1):

 

$

0.07

 

 

$

(0.77

)

Weighted average shares outstanding used in computing diluted earnings (loss) per share

 

 

10,031

 

 

 

10,328

 

(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)

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019*

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

429,276

 

 

$

456,727

 

Restricted cash

 

 

2,742

 

 

 

1,089

 

Short-term investments

 

 

109,946

 

 

 

108,919

 

Accounts receivable, net

 

 

124,935

 

 

 

163,516

 

Prepaid expenses and other current assets

 

 

26,163

 

 

 

23,195

 

Total current assets

 

 

693,062

 

 

 

753,446

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

47,623

 

 

 

50,154

 

Right-of-use assets

 

 

82,690

 

 

 

85,538

 

Deposits and other assets

 

 

7,757

 

 

 

8,024

 

Deferred tax assets, net

 

 

18,139

 

 

 

19,409

 

Total Assets

 

$

849,271

 

 

$

916,571

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses, and operating lease liabilities

 

$

32,539

 

 

$

33,919

 

Accrued compensation and employee benefits

 

 

35,207

 

 

 

48,792

 

Deferred revenue and advance payments

 

 

184,891

 

 

 

187,107

 

Total current liabilities

 

 

252,637

 

 

 

269,818

 

 

 

 

 

 

 

 

 

 

Deferred revenue and advance payments

 

 

3,660

 

 

 

4,344

 

Operating lease liabilities

 

 

100,251

 

 

 

103,424

 

Other long-term liabilities

 

 

31,273

 

 

 

30,400

 

Deferred tax liabilities

 

 

24

 

 

 

26

 

Total Liabilities

 

 

387,845

 

 

 

408,012

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

Preferred stock undesignated, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding

 

 

0

 

 

 

0

 

Class A common stock, $0.001 par value; 330,000 shares authorized; 15,891 shares issued and 7,729 shares outstanding, and 15,888 shares issued and 8,081 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

 

 

597,087

 

 

 

593,583

 

Treasury stock, at cost; 8,162 shares and 7,807 shares, respectively

 

 

(709,627

)

 

 

(658,880

)

Accumulated other comprehensive loss

 

 

(10,198

)

 

 

(9,651

)

Retained earnings

 

 

584,146

 

 

 

583,489

 

Total Stockholders’ Equity

 

 

461,426

 

 

 

508,559

 

Total Liabilities and Stockholders’ Equity

 

$

849,271

 

 

$

916,571

 

* Derived from audited financial statements.

 

MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

(unaudited)

 

Operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

657

 

 

$

(7,906

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,756

 

 

 

1,657

 

Reduction in carrying amount of right-of-use assets

 

 

2,053

 

 

 

2,007

 

Credit losses and sales allowances

 

 

828

 

 

 

827

 

Net realized loss on short-term investments

 

 

0

 

 

 

41

 

Deferred taxes

 

 

957

 

 

 

(1,694

)

Share-based compensation expense

 

 

3,111

 

 

 

3,017

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

14,406

 

 

 

10,266

 

Prepaid expenses and other current assets

 

 

(3,295

)

 

 

(3,070

)

Deposits and other assets

 

 

84

 

 

 

(134

)

Accounts payable and accrued expenses

 

 

(154

)

 

 

(3,108

)

Accrued compensation and employee benefits

 

 

(13,031

)

 

 

(12,195

)

Deferred revenue and advance payments

 

 

22,001

 

 

 

38,502

 

Operating lease liabilities

 

 

(2,238

)

 

 

(2,074

)

Other long-term liabilities

 

 

934

 

 

 

320

 

Net cash provided by operating activities

 

 

29,069

 

 

 

26,456

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

Proceeds from redemption of short-term investments

 

 

10,000

 

 

 

314,403

 

Purchases of property and equipment

 

 

(661

)

 

 

(6,011

)

Purchases of short-term investments

 

 

(9,928

)

 

 

(138,099

)

Net cash (used in) provided by investing activities

 

 

(589

)

 

 

170,293

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from sale of class A common stock under exercise of employee stock options

 

 

340

 

 

 

1,507

 

Purchases of treasury stock

 

 

(50,747

)

 

 

(48,244

)

Net cash used in financing activities

 

 

(50,407

)

 

 

(46,737

)

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash

 

 

(3,871

)

 

 

(1,133

)

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

 

(25,798

)

 

 

148,879

 

Cash, cash equivalents, and restricted cash, beginning of period

 

 

457,816

 

 

 

110,786

 

Cash, cash equivalents, and restricted cash, end of period

 

$

432,018

 

 

$

259,665

 

 

MICROSTRATEGY INCORPORATED

REVENUE AND COST OF REVENUE DETAIL

(in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

(unaudited)

 

Revenues

 

 

 

 

 

 

 

 

Product licenses and subscription services:

 

 

 

 

 

 

 

 

Product licenses

 

$

12,584

 

 

$

18,291

 

Subscription services

 

 

7,968

 

 

 

7,144

 

Total product licenses and subscription services

 

 

20,552

 

 

 

25,435

 

Product support

 

 

71,158

 

 

 

71,450

 

Other services:

 

 

 

 

 

 

 

 

Consulting

 

 

18,441

 

 

 

16,603

 

Education

 

 

1,273

 

 

 

1,878

 

Total other services

 

 

19,714

 

 

 

18,481

 

Total revenues

 

 

111,424

 

 

 

115,366

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

Product licenses and subscription services:

 

 

 

 

 

 

 

 

Product licenses

 

 

670

 

 

 

519

 

Subscription services

 

 

4,064

 

 

 

3,598

 

Total product licenses and subscription services

 

 

4,734

 

 

 

4,117

 

Product support

 

 

6,718

 

 

 

7,067

 

Other services:

 

 

 

 

 

 

 

 

Consulting

 

 

11,428

 

 

 

12,985

 

Education

 

 

1,665

 

 

 

2,004

 

Total other services

 

 

13,093

 

 

 

14,989

 

Total cost of revenues

 

 

24,545

 

 

 

26,173

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

86,879

 

 

$

89,193

 

 

MICROSTRATEGY INCORPORATED

DEFERRED REVENUE DETAIL

(in thousands)

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2020

 

 

2019*

 

 

2019

 

 

 

(unaudited)

 

 

 

 

 

 

(unaudited)

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred product licenses revenue

 

$

131

 

 

$

481

 

 

$

555

 

Deferred subscription services revenue

 

 

16,567

 

 

 

16,561

 

 

 

15,641

 

Deferred product support revenue

 

 

161,135

 

 

 

161,670

 

 

 

166,306

 

Deferred other services revenue

 

 

7,058

 

 

 

8,395

 

 

 

7,568

 

Total current deferred revenue and advance payments

 

$

184,891

 

 

$

187,107

 

 

$

190,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred product licenses revenue

 

$

262

 

 

$

293

 

 

$

479

 

Deferred subscription services revenue

 

 

84

 

 

 

97

 

 

 

247

 

Deferred product support revenue

 

 

2,789

 

 

 

3,417

 

 

 

3,231

 

Deferred other services revenue

 

 

525

 

 

 

537

 

 

 

582

 

Total non-current deferred revenue and advance payments

 

$

3,660

 

 

$

4,344

 

 

$

4,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current and non-current:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred product licenses revenue

 

$

393

 

 

$

774

 

 

$

1,034

 

Deferred subscription services revenue

 

 

16,651

 

 

 

16,658

 

 

 

15,888

 

Deferred product support revenue

 

 

163,924

 

 

 

165,087

 

 

 

169,537

 

Deferred other services revenue

 

 

7,583

 

 

 

8,932

 

 

 

8,150

 

Total current and non-current deferred revenue and advance payments

 

$

188,551

 

 

$

191,451

 

 

$

194,609

 

* Derived from audited financial statements.

 

MICROSTRATEGY INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

EXCLUSION OF SHARE-BASED COMPENSATION EXPENSE

(in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

(unaudited)

 

Reconciliation of non-GAAP income (loss) from operations:

 

 

 

 

 

 

 

 

Loss from operations

 

$

(72

)

 

$

(10,386

)

Share-based compensation expense

 

 

3,111

 

 

 

3,017

 

Non-GAAP income (loss) from operations

 

$

3,039

 

 

$

(7,369

)

 

MICROSTRATEGY INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

CONSTANT CURRENCY

(in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

(unaudited)

 

 

 

GAAP

 

 

Foreign

Currency

Exchange

Rate Impact (1)

 

 

Non-GAAP

Constant

Currency (2)

 

 

GAAP

 

 

GAAP %

Change

 

 

Non-GAAP

Constant

Currency

% Change (3)

 

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2020

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licenses

 

$

12,584

 

 

$

(541

)

 

$

13,125

 

 

$

18,291

 

 

 

-31.2

%

 

 

-28.2

%

Subscription services

 

 

7,968

 

 

 

(36

)

 

 

8,004

 

 

 

7,144

 

 

 

11.5

%

 

 

12.0

%

Total product licenses and subscription services

 

 

20,552

 

 

 

(577

)

 

 

21,129

 

 

 

25,435

 

 

 

-19.2

%

 

 

-16.9

%

Product support

 

 

71,158

 

 

 

(1,176

)

 

 

72,334

 

 

 

71,450

 

 

 

-0.4

%

 

 

1.2

%

Other services

 

 

19,714

 

 

 

(255

)

 

 

19,969

 

 

 

18,481

 

 

 

6.7

%

 

 

8.1

%

Total revenues

 

 

111,424

 

 

 

(2,008

)

 

 

113,432

 

 

 

115,366

 

 

 

-3.4

%

 

 

-1.7

%

Contacts

MicroStrategy Incorporated

Claudia Cahill

Investor Relations

ir@microstrategy.com
(703) 848-8600

Read full story here

error: Content is protected !!