EX-99.1 7 mstr-ex991_10.htm EX-99.1 mstr-ex991_10.htm

 

Exhibit 99.1

 

Contact:

MicroStrategy Incorporated

Investor Relations

ir@microstrategy.com

(703) 848-8600

 

MicroStrategy Announces

Second Quarter 2018 Financial Results

TYSONS CORNER, Va., July 26, 2018 - MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of enterprise analytics and mobility software, today announced financial results for the three-month period ended June 30, 2018 (the second quarter of its 2018 fiscal year).

MicroStrategy adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) and its subsequent amendments (“ASU 2014-09”), effective January 1, 2018, and has adjusted its prior period consolidated financial statements to reflect full retrospective adoption.    

Second quarter 2018 revenues were $120.6 million versus $119.2 million for the second quarter of 2017, a 1.2% increase. Product licenses and subscription services revenues for the second quarter of 2018 were $26.9 million versus $26.1 million for the second quarter of 2017, a 3.1% increase. Product support revenues for the second quarter of 2018 were $73.7 million versus $70.8 million for the second quarter of 2017, a 4.1% increase. Other services revenues for the second quarter of 2018 were $20.1 million versus $22.4 million for the second quarter of 2017, a 10.4% decrease. Foreign currency effects had a favorable impact on revenues for the second quarter of 2018.

Operating expenses for the second quarter of 2018 were $97.4 million versus $80.8 million for the second quarter of 2017, a 20.5% increase, reflecting MicroStrategy’s previously announced strategy to seek to take greater advantage of the opportunities in the market by increasing its sales and marketing expenditures and increasing its research and development expenditures as it invests in its technology products and personnel. MicroStrategy did not capitalize any software development costs during the second quarter of 2018 or 2017.  

Loss from operations for the second quarter of 2018 was $1.8 million versus income from operations of $14.1 million for the second quarter of 2017. Net income for the second quarter of 2018 was $4.8 million, or $0.42 per share on a diluted basis, as compared to net income of $10.0 million, or $0.86 per share on a diluted basis, for the second quarter of 2017. Contributing to net income for the second quarter of 2018 was $4.5 million in other income, net, comprised primarily of foreign currency transaction gains, and $3.2 million in interest income, net.

Non-GAAP income from operations, which excludes share-based compensation expense, was $1.6 million for the second quarter of 2018 versus $17.9 million for the second quarter of 2017. The tables at the end of this press release include a reconciliation of (loss) income from operations to non-GAAP income from operations for the three months ended June 30, 2018 and 2017. An explanation of this non-GAAP measure is also included under the heading “Non-GAAP Financial Measure” below.

As of June 30, 2018, MicroStrategy had cash and cash equivalents and short-term investments of $699.6 million, as compared to $675.2 million as of December 31, 2017, an increase of $24.4 million. As of June 30, 2018, MicroStrategy had 9.4 million shares of class A common stock and 2.0 million shares of class B common stock outstanding.

MicroStrategy uses its own software across the Company 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.

 


 

Conference Call

MicroStrategy will be discussing its second quarter 2018 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 8369038. 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 2, 2018 at (855) 859-2056 (domestically) or (404) 537-3406 (internationally) using the passcode 8369038. An archived webcast will also be available under the “Events” section on MicroStrategy’s investor relations website at http://ir.microstrategy.com/events.cfm.

Recent Business Highlights:

 

MicroStrategy received the highest product scores for 3 of 5 use cases in the “Critical Capabilities for Analytics and Business Intelligence Platforms” report1 by Gartner, Inc., the leading provider of research and analysis on the global information technology industry. According to the findings, the Gartner report has scored MicroStrategy:

 

o

First in Governed Data Discovery, scoring a 4.22 (out of 5)

 

o

First in Agile, Centralized BI Provisioning, scoring a 4.37

 

o

First in Decentralized Analytics, scoring a 4.19

 

o

Second in Extranet Deployment, scoring a 4.16

 

MicroStrategy introduced three new gateways with its MicroStrategy 10.11™ release that enable MicroStrategy users to easily visualize, analyze and distribute data using Microsoft Azure. Built in collaboration with Microsoft, these gateways establish integrations and workflows between the MicroStrategy 10™ platform and Azure data and analytics services. These gateways expand on MicroStrategy’s existing integrations with other Microsoft solutions, including Azure IoT, Machine Learning and Power BI.

 

MicroStrategy won a 2018 NetworkWorld Asia Information Management award in the Advanced Analytics Solution category. After a review of numerous analytics vendors in the market, MicroStrategy was selected the winner by a panel of Questex Media editors and regional CIOs, CISOs, IT directors, and data center heads representing organizations across a variety of industries. MicroStrategy, which secured the top spot for the only award related to analytics, was honored at the 7th annual NetworkWorld Asia Information Management Awards in Singapore.

 

MicroStrategy announced that Kasasa, an Austin, Texas-based fintech and martech provider, integrated MicroStrategy 10 into Insight, its BI platform, enabling an even higher performing analytics solution for its customers. In addition, MicroStrategy announced that Vibes, a leading mobile engagement platform for enterprises, integrated the MicroStrategy 10 platform into its new product, Advanced Analytics, a performance management solution.

 

MicroStrategy announced that The University of Auckland’s ICT Graduate School and the University of Colorado Denver School of Business are providing its students and faculty with free MicroStrategy software licenses, technical support and training through the MicroStrategy Academic Program.

 

 

1 

Gartner, Critical Capabilities for Analytics and Business Intelligence Platforms, James Laurence Richardson, Joao Tapadinhas, et al., May 7, 2018.  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.

 


 

Non-GAAP Financial Measure

MicroStrategy is providing a supplemental financial measure for income from operations that excludes the impact of share-based compensation arrangements. 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. 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

MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software. A pioneer in the BI and analytics space, MicroStrategy delivers innovative software that empowers people to make better decisions and transform the way they do business. We provide our enterprise customers with world-class software and expert services so they can deploy unique intelligence applications. To learn more, visit MicroStrategy online, and follow us on LinkedIn, Twitter and Facebook.

MicroStrategy, MicroStrategy 10, MicroStrategy 10.11, and MicroStrategy Library 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 10.11; 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, including as a result of changes to U.S. federal tax laws; 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

 

 


 

MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licenses

 

$

19,292

 

 

$

17,728

 

 

$

36,593

 

 

$

40,374

 

Subscription services

 

 

7,584

 

 

 

8,346

 

 

 

15,246

 

 

 

16,118

 

Total product licenses and subscription services

 

 

26,876

 

 

 

26,074

 

 

 

51,839

 

 

 

56,492

 

Product support

 

 

73,676

 

 

 

70,766

 

 

 

148,091

 

 

 

141,278

 

Other services

 

 

20,050

 

 

 

22,380

 

 

 

43,639

 

 

 

43,682

 

Total revenues

 

 

120,602

 

 

 

119,220

 

 

 

243,569

 

 

 

241,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licenses

 

 

1,667

 

 

 

1,747

 

 

 

3,878

 

 

 

3,419

 

Subscription services

 

 

3,445

 

 

 

3,400

 

 

 

6,694

 

 

 

6,439

 

Total product licenses and subscription services

 

 

5,112

 

 

 

5,147

 

 

 

10,572

 

 

 

9,858

 

Product support

 

 

4,810

 

 

 

4,542

 

 

 

9,606

 

 

 

8,876

 

Other services

 

 

15,118

 

 

 

14,686

 

 

 

30,047

 

 

 

28,773

 

Total cost of revenues

 

 

25,040

 

 

 

24,375

 

 

 

50,225

 

 

 

47,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

95,562

 

 

 

94,845

 

 

 

193,344

 

 

 

193,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

50,978

 

 

 

41,626

 

 

 

102,313

 

 

 

81,208

 

Research and development

 

 

25,082

 

 

 

19,561

 

 

 

48,642

 

 

 

37,987

 

General and administrative

 

 

21,299

 

 

 

19,582

 

 

 

43,471

 

 

 

39,839

 

Total operating expenses

 

 

97,359

 

 

 

80,769

 

 

 

194,426

 

 

 

159,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

(1,797

)

 

 

14,076

 

 

 

(1,082

)

 

 

34,911

 

Interest income, net

 

 

3,223

 

 

 

1,163

 

 

 

5,257

 

 

 

2,000

 

Other income (expense), net

 

 

4,461

 

 

 

(2,618

)

 

 

2,867

 

 

 

(4,474

)

Income before income taxes

 

 

5,887

 

 

 

12,621

 

 

 

7,042

 

 

 

32,437

 

Provision for income taxes

 

 

1,059

 

 

 

2,668

 

 

 

541

 

 

 

6,927

 

Net income

 

$

4,828

 

 

$

9,953

 

 

$

6,501

 

 

$

25,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (1):

 

$

0.42

 

 

$

0.87

 

 

$

0.57

 

 

$

2.23

 

Weighted average shares outstanding used in computing basic earnings per share

 

 

11,459

 

 

 

11,444

 

 

 

11,453

 

 

 

11,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (1):

 

$

0.42

 

 

$

0.86

 

 

$

0.57

 

 

$

2.20

 

Weighted average shares outstanding used in computing diluted earnings per share

 

 

11,493

 

 

 

11,592

 

 

 

11,488

 

 

 

11,593

 

 

(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,

 

 

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

90,427

 

 

$

420,244

 

Restricted cash

 

 

964

 

 

 

938

 

Short-term investments

 

 

609,167

 

 

 

254,927

 

Accounts receivable, net

 

 

125,115

 

 

 

165,364

 

Prepaid expenses and other current assets

 

 

27,863

 

 

 

19,180

 

Total current assets

 

 

853,536

 

 

 

860,653

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

51,918

 

 

 

53,359

 

Capitalized software development costs, net

 

 

0

 

 

 

2,499

 

Deposits and other assets

 

 

7,112

 

 

 

7,411

 

Deferred tax assets, net

 

 

14,761

 

 

 

9,297

 

Total Assets

 

$

927,327

 

 

$

933,219

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

22,670

 

 

$

30,711

 

Accrued compensation and employee benefits

 

 

38,617

 

 

 

41,498

 

Deferred revenue and advance payments

 

 

175,358

 

 

 

198,734

 

Total current liabilities

 

 

236,645

 

 

 

270,943

 

 

 

 

 

 

 

 

 

 

Deferred revenue and advance payments

 

 

5,816

 

 

 

6,400

 

Other long-term liabilities

 

 

64,503

 

 

 

50,146

 

Deferred tax liabilities

 

 

4

 

 

 

4

 

Total Liabilities

 

 

306,968

 

 

 

327,493

 

 

 

 

 

 

 

 

 

 

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; 15,837 shares issued and 9,432 shares outstanding, and 15,817 shares issued and 9,412 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

 

 

570,502

 

 

 

559,918

 

Treasury stock, at cost; 6,405 shares

 

 

(475,184

)

 

 

(475,184

)

Accumulated other comprehensive loss

 

 

(8,111

)

 

 

(5,659

)

Retained earnings

 

 

533,134

 

 

 

526,633

 

Total Stockholders' Equity

 

 

620,359

 

 

 

605,726

 

Total Liabilities and Stockholders' Equity

 

$

927,327

 

 

$

933,219

 

 

 

 

 

 


 

MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

Operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

6,501

 

 

$

25,510

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

3,870

 

 

 

8,540

 

Bad debt expense

 

 

948

 

 

 

1,835

 

Deferred taxes

 

 

(5,758

)

 

 

(3,654

)

Share-based compensation expense

 

 

8,121

 

 

 

6,889

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

5,044

 

 

 

16,033

 

Prepaid expenses and other current assets

 

 

453

 

 

 

(992

)

Deposits and other assets

 

 

(344

)

 

 

(275

)

Accounts payable and accrued expenses

 

 

(7,775

)

 

 

(15,472

)

Accrued compensation and employee benefits

 

 

(3,015

)

 

 

(10,712

)

Deferred revenue and advance payments

 

 

10,502

 

 

 

11,058

 

Other long-term liabilities

 

 

4,780

 

 

 

(1,647

)

Net cash provided by operating activities

 

 

23,327

 

 

 

37,113

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

Proceeds from redemption of short-term investments

 

 

245,680

 

 

 

151,860

 

Purchases of property and equipment

 

 

(2,644

)

 

 

(1,467

)

Purchases of short-term investments

 

 

(596,376

)

 

 

(216,602

)

Net cash used in investing activities

 

 

(353,340

)

 

 

(66,209

)

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

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

 

 

2,471

 

 

 

1,677

 

Payments on capital lease obligations and other financing arrangements

 

 

(9

)

 

 

(12

)

Net cash provided by financing activities

 

 

2,462

 

 

 

1,665

 

 

 

 

 

 

 

 

 

 

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

 

 

(2,240

)

 

 

5,246

 

Net decrease in cash, cash equivalents, and restricted cash

 

 

(329,791

)

 

 

(22,185

)

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

 

 

421,182

 

 

 

402,712

 

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

 

$

91,391

 

 

$

380,527

 

 

 

 


 

MICROSTRATEGY INCORPORATED

REVENUE AND COST OF REVENUE DETAIL

(in thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licenses and subscription services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licenses

 

$

19,292

 

 

$

17,728

 

 

$

36,593

 

 

$

40,374

 

Subscription services

 

 

7,584

 

 

 

8,346

 

 

 

15,246

 

 

 

16,118

 

Total product licenses and subscription services

 

 

26,876

 

 

 

26,074

 

 

 

51,839

 

 

 

56,492

 

Product support

 

 

73,676

 

 

 

70,766

 

 

 

148,091

 

 

 

141,278

 

Other services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

 

17,710

 

 

 

19,791

 

 

 

38,997

 

 

 

38,837

 

Education

 

 

2,340

 

 

 

2,589

 

 

 

4,642

 

 

 

4,845

 

Total other services

 

 

20,050

 

 

 

22,380

 

 

 

43,639

 

 

 

43,682

 

Total revenues

 

 

120,602

 

 

 

119,220

 

 

 

243,569

 

 

 

241,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licenses and subscription services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licenses

 

 

1,667

 

 

 

1,747

 

 

 

3,878

 

 

 

3,419

 

Subscription services

 

 

3,445

 

 

 

3,400

 

 

 

6,694

 

 

 

6,439

 

Total product licenses and subscription services

 

 

5,112

 

 

 

5,147

 

 

 

10,572

 

 

 

9,858

 

Product support

 

 

4,810

 

 

 

4,542

 

 

 

9,606

 

 

 

8,876

 

Other services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

 

13,542

 

 

 

12,867

 

 

 

26,863

 

 

 

25,284

 

Education

 

 

1,576

 

 

 

1,819

 

 

 

3,184

 

 

 

3,489

 

Total other services

 

 

15,118

 

 

 

14,686

 

 

 

30,047

 

 

 

28,773

 

Total cost of revenues

 

 

25,040

 

 

 

24,375

 

 

 

50,225

 

 

 

47,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

95,562

 

 

$

94,845

 

 

$

193,344

 

 

$

193,945

 

 

 

 


 

MICROSTRATEGY INCORPORATED

DEFERRED REVENUE DETAIL

(in thousands)

 

 

June 30,

 

 

December 31,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2017

 

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

 

(as adjusted, unaudited)

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred product licenses revenue

 

$

1,819

 

 

$

3,760

 

 

$

2,320

 

Deferred subscription services revenue

 

 

13,847

 

 

 

17,324

 

 

 

17,741

 

Deferred product support revenue

 

 

151,909

 

 

 

168,185

 

 

 

156,984

 

Deferred other services revenue

 

 

7,783

 

 

 

9,465

 

 

 

8,681

 

Total current deferred revenue and advance payments

 

$

175,358

 

 

$

198,734

 

 

$

185,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred product licenses revenue

 

$

794

 

 

$

820

 

 

$

620

 

Deferred subscription services revenue

 

 

9

 

 

 

126

 

 

 

784

 

Deferred product support revenue

 

 

3,950

 

 

 

4,826

 

 

 

7,211

 

Deferred other services revenue

 

 

1,063

 

 

 

628

 

 

 

856

 

Total non-current deferred revenue and advance payments

 

$

5,816

 

 

$

6,400

 

 

$

9,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current and non-current:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred product licenses revenue

 

$

2,613

 

 

$

4,580

 

 

$

2,940

 

Deferred subscription services revenue

 

 

13,856

 

 

 

17,450

 

 

 

18,525

 

Deferred product support revenue

 

 

155,859

 

 

 

173,011

 

 

 

164,195

 

Deferred other services revenue

 

 

8,846

 

 

 

10,093

 

 

 

9,537

 

Total current and non-current deferred revenue and advance payments

 

$

181,174

 

 

$

205,134

 

 

$

195,197

 

 

 

 

 


 

MICROSTRATEGY INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(in thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

 

(unaudited)

 

 

(as adjusted, unaudited)

 

Reconciliation of non-GAAP income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

$

(1,797

)

 

$

14,076

 

 

$

(1,082

)

 

$

34,911

 

Share-based compensation expense

 

 

3,378

 

 

 

3,774

 

 

 

8,121

 

 

 

6,889

 

Non-GAAP income from operations

 

$

1,581

 

 

$

17,850

 

 

$

7,039

 

 

$

41,800

 

 

 

 


 

MICROSTRATEGY INCORPORATED

WORLDWIDE EMPLOYEE HEADCOUNT

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

 

2018

 

 

2018

 

 

2017

 

 

2017

 

 

2017

 

Subscription services

 

 

54

 

 

 

57

 

 

 

53

 

 

 

50

 

 

 

49

 

Product support

 

 

184

 

 

 

182

 

 

 

172

 

 

 

163

 

 

 

176

 

Consulting

 

 

443

 

 

 

441

 

 

 

441

 

 

 

447

 

 

 

448

 

Education

 

 

39

 

 

 

42

 

 

 

41

 

 

 

41

 

 

 

42

 

Sales and marketing

 

 

687

 

 

 

667

 

 

 

652

 

 

 

635

 

 

 

642

 

Research and development

 

 

651

 

 

 

604

 

 

 

559

 

 

 

539

 

 

 

526

 

General and administrative

 

 

322

 

 

 

313

 

 

 

298

 

 

 

303

 

 

 

301

 

Total headcount

 

 

2,380

 

 

 

2,306

 

 

 

2,216

 

 

 

2,178

 

 

 

2,184