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, 2017 (the second quarter of its 2017 fiscal
year).
Second quarter 2017 revenues were $120.6 million versus $123.1
million for the second quarter of 2016, a 2.1% decrease. Product
licenses and subscription services revenues for the second quarter
of 2017 were $27.5 million versus $31.2 million for the second
quarter of 2016, a 12.1% decrease. Product support revenues for the
second quarter of 2017 were $70.8 million versus $71.5 million for
the second quarter of 2016, a 1.0% decrease. Other services
revenues for the second quarter of 2017 were $22.4 million versus
$20.5 million for the second quarter of 2016, a 9.4% increase.
Foreign currency headwinds continued to have a negative impact on
revenues for the second quarter of 2017.
Operating expenses for the second quarter of 2017 were $80.6
million versus $78.0 million for the second quarter of 2016, a 3.3%
increase. MicroStrategy did not capitalize any software development
costs during the second quarter of 2017 or 2016.
Income from operations for the second quarter of 2017 was $15.7
million versus $21.1 million for the second quarter of 2016. Net
income for the second quarter of 2017 was $11.1 million, or $0.96
per share on a diluted basis, as compared to net income of $18.9
million, or $1.64 per share on a diluted basis, for the second
quarter of 2016.
Non-GAAP income from operations, which excludes share-based
compensation expense and restructuring costs, was $19.4 million for
the second quarter of 2017 versus $24.7 million for the second
quarter of 2016. The tables at the end of this press release
include a reconciliation of income from operations to non-GAAP
income from operations for the three months ended June 30,
2017 and 2016. An explanation of this non-GAAP measure is also
included under the heading “Non-GAAP Financial Measure” below.
As of June 30, 2017, MicroStrategy had cash and cash
equivalents and short-term investments of $632.4 million, as
compared to $589.4 million as of December 31, 2016, an
increase of $43.0 million. As of June 30, 2017, MicroStrategy
had 9.4 million shares of class A common stock and 2.0 million
shares of class B common stock outstanding.
Conference Call
MicroStrategy will be discussing its second quarter 2017
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 54822418. 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 3, 2017 at (855) 859-2056 (domestically) or
(404) 537-3406 (internationally) using the passcode 54822418. 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 Unveiled MicroStrategy 10.8™
In July 2017, MicroStrategy announced the general availability
of MicroStrategy 10.8, the newest feature release to the company’s
MicroStrategy 10™ platform. MicroStrategy 10.8 delivers critical
capabilities across enterprise analytics, enterprise mobility,
embedded analytics, enterprise cloud and enterprise Internet of
Things (IoT), and new features for MicroStrategy Desktop™,
MicroStrategy Web™, MicroStrategy Mobile™ and Usher™.
With this release, R and the R Integration Pack were bundled and
installed with MicroStrategy Server™, making it easier to leverage
machine learning capabilities, AI integration and predictive
analytics. The release also delivered a gallery for custom data
connectors, enhanced color palettes for data visualizations,
improved parity between Android™ and iOS® mobile apps,
ready-to-deploy dashboards with Usher Professional™, and more.
Simultaneously with the MicroStrategy 10.8 feature release,
MicroStrategy 10.4™ Hotfix 4 was made generally available to
customers. This latest update to the MicroStrategy 10.4 platform
release includes approximately 200 critical enhancements and fixes
across the platform, aimed at improving overall product stability.
More information about MicroStrategy 10.4.4 can be found in the
MicroStrategy Community.
“We’ve reached an exciting milestone with the general
availability of MicroStrategy 10.8. Our focus is to push analytics
throughout our customers’ organizations so that stakeholders and
employees can make better decisions every minute of the day,” said
Tim Lang, Senior Executive Vice President and Chief Technology
Officer, MicroStrategy Incorporated. “MicroStrategy 10.8 can help
our customers realize the full benefits of enterprise analytics and
capitalize on the countless business opportunities easily
discoverable with a unified enterprise platform.”
R Analytics Bundled and Installed with MicroStrategy Server for
Instant Access to Machine Learning, AI and Predictive Analytics
Hundreds of MicroStrategy customers rely on R analytics to build
advanced analytics and predictive models. From regression models to
market basket analysis, Monte Carlo simulation and Naïve Bayes
Classification, R applies hundreds of different analytical models
directly to the data in MicroStrategy reports and dashboards.
MicroStrategy 10.8 makes it easier than ever before to get
started with R. Both R and the R Integration Pack are bundled and
installed with MicroStrategy Server, alongside 199 R Packages for
Windows and Linux. With this seamless, out-of-the-box setup, it’s
simple for MicroStrategy 10.8 customers to leverage R models and
visualizations in MicroStrategy reports and dashboards.
Gallery for Custom Data Connectors
The MicroStrategy platform allows organizations to build custom
connectors to nearly any data source and helps them tap into data
sources that are not available out-of-the-box. The platform offers
a set of APIs to build almost any data connector and an extensive
software development kit (SDK) to support the Data Connector
API.
With MicroStrategy 10.8, customers have access to a public
gallery for data connectors on the MicroStrategy Community.
Customers and partners can download, update and use this content at
their leisure. Innovators that build their own connectors are
encouraged to upload and share their content on this gallery for
others to leverage.
The MicroStrategy Community Gallery currently includes several
sample data connectors such as OneDrive®, Box, Weibo®, MuleSoft®
and ElasticSearch®, all easily accessible here.
Latest Release Available with MicroStrategy on Amazon Web
Services (AWS)
As more fully described below, both MicroStrategy 10.8 and
10.4.4 are available with MicroStrategy on AWS. The newly launched
cloud-based platform allows customers to easily deploy the latest
version of the MicroStrategy platform directly into their own AWS
accounts.
New to MicroStrategy on AWS, a web-based provisioning console
allows administrators to quickly and easily deploy and manage a
fully configured MicroStrategy project using a simple and intuitive
web-based deployment manager.
Enhanced Color Palettes
MicroStrategy 10.8 delivered numerous enhancements to its data
discovery capabilities. New enhancements around better defaults and
responsive design enable greater usability and accessibility. The
out-of-the-box color palettes, based on design research involving
the natural world, give end users more options when deciding
dashboard color themes, and improve dashboard aesthetics with
little effort. The color palettes are available in MicroStrategy
Web and MicroStrategy Desktop.
The latest release also introduced various additional
enhancements, including:
- The Hadoop® Gateway, offering workflows
to access data directly from HDFS with enhanced options for data
preparation and filtering;
- Certification for Windows Server™
2016;
- Enhanced filtering options on
dashboards to make data discovery workflows more intuitive;
and
- Certifications for data sources,
including Azure® SQL Database (certified as a metadata and
statistics platform for MicroStrategy Analytics™), SAP HANA® 2.x
(certified as a data warehouse), Oracle® 12c R2 (certified as a
data warehouse, and metadata and statistics/EM platform for
MicroStrategy Analytics), Apache Cassandra™ 3.x (certified as a
data warehouse) and Amazon Athena (certified as a data
warehouse).
MicroStrategy Mobile Enhancements Deliver Greater Security and
Faster Performance
New features for iOS include:
- With a checkbox setting in the
MicroStrategy Mobile SDK, developers can enable Apple’s App
Transport Security (ATS) policy before Apple makes it mandatory.
The change helps ensure connections from the app adhere to the
HTTPS (versus HTTP) standard.
- Following BlackBerry’s integration of
Good Dynamics® into its EMM platform, the MicroStrategy Mobile iOS
SDK for BlackBerry® Dynamics reflects BlackBerry’s cosmetic
changes, including color schemes, icons and much more. Through this
new SDK, MicroStrategy customers can continue to natively integrate
EMM offerings with the former Good Dynamics, now BlackBerry
Dynamics. The cosmetic changes provide improved user experience and
enhanced integration of the Good Dynamics and BlackBerry
libraries.
New features for Android include:
- Custom properties for D3 visualizations
are supported in Report Services documents. This feature means app
designers have the flexibility to add different properties to
attribute elements and metrics. For example, app designers can use
shape or text color to differentiate various components of the
visualization.
- Bundle images during app compilation.
This feature can result in faster app performance for mobile users
through better image loading, especially under poor network
conditions.
- Configure dashboards to pass prompt
answers from source to target documents without requiring users to
make a new prompt selection in their mobile devices. This feature
makes it faster for end users to navigate through prompted
documents, thereby getting to their analyses quicker.
Usher Analytics™: Out-of-the-box Dashboard for Enterprise
IoT
MicroStrategy 10.8 makes enterprise IoT easier by delivering an
out-of-the-box dashboard to visualize Usher badge-generated
telemetry through a set of KPI intensive grids. As users move about
and interact with a corporate environment using their Usher badges,
data will flow into the dashboard sorted under categories such as
Users, Historical Telemetry Log, Timesheet, Floors, Spaces,
Beacons, Actions, Applications, Cities and Devices. These grids can
be used as a basis for creating custom visualizations to answer
business questions surrounding user access and presence.
MicroStrategy Announced General Availability of MicroStrategy
on AWS
In May 2017, MicroStrategy announced the general availability of
MicroStrategy on AWS. The offering provides one of the first
cloud-hosted, on-demand enterprise analytics platforms in the
market. With MicroStrategy on AWS, users can be up and running on
MicroStrategy 10 in the AWS cloud, and have instant access to an
on-demand business intelligence (BI) platform that delivers
enterprise analytics, reporting, and dashboarding capabilities,
within minutes. To try MicroStrategy on AWS with a 30-day free
trial, click here. To watch an overview of MicroStrategy on AWS,
click here.
“By offering MicroStrategy on AWS, we’re making it easy for
anyone, anywhere, to use the MicroStrategy platform and
intelligently collaborate around analytics,” said Michael J.
Saylor, CEO, MicroStrategy Incorporated. “Combined with our free
MicroStrategy Desktop product, users can immediately create a cloud
environment on AWS and connect to a centralized server where they
can work together, share, and maintain governance over datasets and
dashboards. This new offering marks a significant achievement in
helping organizations access and deploy transformative analytics
applications on AWS in minutes.”
MicroStrategy on AWS represents an optimized version of the
MicroStrategy 10 platform built specifically for deployment on AWS.
Organizations can leverage more than 20 AWS services, together with
the MicroStrategy 10 platform, to rapidly deploy new enterprise
analytics and mobility environments in minutes.
The MicroStrategy on AWS solution offers:
- A provisioning portal for
administrators to create and deploy dedicated cloud environments
with MicroStrategy 10 on AWS infrastructure;
- Administrative tools that deliver
automation and scheduling of routine tasks, making it easy to
start, stop, resize, and terminate;
- The full breadth of MicroStrategy 10
capabilities, including enterprise data discovery, enterprise
reporting and dashboards, optimized connectors to hundreds of
databases, personalized distribution capabilities, powerful
predictive analytics, and more;
- The ability to deploy mobile
productivity apps that can be customized with branded
transaction-enabled workflows, and tailored to any business
function or role; and
- Cloud-specific RESTful APIs that
provide flexibility to create custom workflows and build
personalized administrative interfaces to automate operations.
Combined with our free MicroStrategy Desktop product,
departmental teams and businesses that previously didn’t have
access to governed analytics can now leverage MicroStrategy on AWS
to deliver analytics in a more collaborative and secure manner.
MicroStrategy Desktop users can publish dashboards into
MicroStrategy on AWS, and share content securely with others. In
addition, teams can go beyond MicroStrategy Desktop capabilities
and leverage enterprise BI features available through the
MicroStrategy platform, like report and dashboard personalization
with pixel-perfect formatting, automated information updates and
distribution, mobile productivity apps, and more.
Existing MicroStrategy customers who have on-premises
deployments have the ability to spin up cloud-based test and
development environments to try the latest MicroStrategy product
features. With MicroStrategy issuing releases that introduce new
features on a regular basis, MicroStrategy on AWS gives customers
the ideal platform to test new features without having to upgrade
their production environments. In addition to being able to deliver
a low-cost development and staging environment, MicroStrategy on
AWS is also a fast and easy way to build new projects as customers
scale their MicroStrategy deployments to new departments and
teams.
With MicroStrategy on AWS, technology partner organizations have
access to the latest version of MicroStrategy, and all the newest
features and capabilities. MicroStrategy technology partners can
leverage MicroStrategy on AWS to demonstrate the value of their
joint solutions to prospective customers. With minimal effort and
hardware investment, technology system integrators and channel
partners can build, test, and showcase powerful dashboard and
reporting applications.
MicroStrategy’s Jump Start program provides free education and
training on MicroStrategy enterprise analytics and mobility
solutions in nine different languages, through in-person classes in
29 cities around the world. MicroStrategy on AWS offers a unique
opportunity to keep learning and to experience the power of the
MicroStrategy platform first-hand.
MicroStrategy Hosted MicroStrategy World™ 2017, its Largest
Annual User Conference Ever
In April 2017, MicroStrategy hosted its 20th annual user
conference, MicroStrategy World 2017, in Washington, D.C.
MicroStrategy World 2017 brought thousands of product experts,
thought leaders and MicroStrategy users together for three days of
technology-focused discussion, with over 200 sessions and 80
customer speakers.
Key highlights included:
- MicroStrategy unveiled MicroStrategy 10
on AWS. MicroStrategy 10 on AWS provides new tools and services
that allow customers to deploy a cloud optimized version of the
MicroStrategy 10 platform directly into the AWS cloud.
- The MicroStrategy Community received a
complete revamp, making it an even better collaborative knowledge
base. In the new community, new and returning visitors can learn
technical tips and tricks, engage with peers to share new ideas,
and grow existing MicroStrategy products and programs.
- To help MicroStrategy customers with
large communities of business users make the most of their
platform, MicroStrategy announced the availability of five of its
most popular instructor-led courses in a self-paced learning
format, with another five modules to be released in 2017. For
organizations with more than 30 MicroStrategy Web licenses, our new
Enterprise E-courseware modules are the ideal solution to drive
usage of MicroStrategy. To download our newly released catalog or
learn more about our offerings, visit the MicroStrategy Education
page.
- MicroStrategy’s new academic program
allows university professors, students, and researchers to access
MicroStrategy software and resources at no cost to enrich their
business and computer science course experiences. With the
MicroStrategy platform, professors can use industry-standard
analytics software in the classroom to prepare students with
relevant and applicable skills while students begin to master the
skills that will enhance their marketability to future employers.
Included in the MicroStrategy academic program are training and
educational resources for teachers and students to create a center
of excellence for enterprise analytics and mobility. To learn more
about MicroStrategy’s academic program, visit here.
- At MicroStrategy World 2017, customers
took the spotlight. Winners of the Dashboard Showcase were on
prominent display. In addition, MicroStrategy presented
MicroStrategy Customer Awards to American International Group, Inc.
(AIG), Sumitomo Rubber North America, and Fanatics, Inc. for BI
applications that stood out in three respective categories:
Innovative, Impactful, and Interesting.
Keynote and panel speakers included: Dr. Jonathan Bickel,
Director of Clinical Research Informatics, Boston Children’s
Hospital; Liza Masterson, AVP, BI & Reporting, John Hancock
Retirement Plan Services; Andrew Callum, Senior Vice President
Finance, Loblaw Companies Limited; Kris Rowley, Chief Data Officer,
U.S. General Services Administration; Jim Watts, Program Manager,
U.S. Transportation Security Administration; Kristin Seaver, CIO,
U.S. Postal Service; Kirit Amin, CIO, U.S. International Trade
Commission; and Louise Bevan, Head of Business Intelligence,
Vodafone. MicroStrategy keynote speakers include Michael J. Saylor,
Chairman, President & CEO; and Tim Lang, Senior Executive Vice
President & CTO.
MicroStrategy experts and technology partners explored the
latest topics in data analytics and BI in a number of technical
sessions, covering such topics as adding custom and D3
visualizations, advanced analytics and R to your dashboards,
building analytics applications with Google Analytics™, navigating
Salesforce.com data and ragged hierarchies, deploying enterprise
analytics and mobility on AWS, visualizing big data with
MicroStrategy and Hadoop, visualizing geospatial data on native and
custom maps, and designing mobile analytics apps for iPad® and
Android devices. Partner sponsors included Alation, Automated
Insights, DataFactZ, DataFusion, Datastrong, InfoCepts,
Informatica, Invexer, L&T Infotech, MapR, Northstrat, Obase,
Pandera Systems, Paxata, Project X, Prysm, QueBIT, Sense Corp,
Smartbridge, Southport Services Group, Teradata, The HADA Group,
Third I, Vitara and XeoMatrix.
Customer presenters included Ahold, Allscripts, Apexus, Aspect
Software, Bell Canada, South East LHIN, BMC Software, Boston
Children’s Hospital, Catalina Marketing Corporation, Charter
Communications, Cisco Systems, City of Austin, CR Bard, DFW
International Airport, Domtar, Dr Pepper Snapple Group, eBay,
Enova, Epicor, Four Seasons Hotels and Resorts, Fox Entertainment
Group, Franklin American Mortgage, Genesys, Giant Tiger Stores,
Gordon Food Service, GT Nexus, Kindred Healthcare, Loblaws, Marsh
USA, Oklahoma Department of Public Safety, Overstock.com, PetSmart,
Pinnacol Assurance, PPL Services Corporation, Privia Health,
Reynolds American, Road Scholar, Sanofi Pasteur, Sharethrough, SK
Planet, Sony Interactive Entertainment, SPS Commerce, Staples,
Sumitomo Rubber, Sutter Health, Tapjoy, T Systems, The Gathering
Spot, thyssenkrupp Elevator US, Toys"R"Us, Transportation Security
Administration, TrialCard, Turkcell, Turkish Airlines, Union Bank
of Switzerland, U.S. Department of Transportation, Vertex
Pharmaceuticals, Vodafone, Weiler Abrasives Group and Whole Foods
Market.
MicroStrategy Hosted its Symposium Series Events in Cities
Across North America, Europe, Africa, the Middle East and
Asia
In June 2017, MicroStrategy announced the locations of its
Symposium Series events held in July. Each one-day event that took
place in cities across North America, Europe, Africa, the Middle
East and Asia highlighted functionalities of MicroStrategy 10.8 and
its critical capabilities for the enterprise across analytics,
mobility, embedded BI, cloud and IoT.
“MicroStrategy’s vision is intelligence everywhere. Today,
that’s more of a necessity than ever before as enterprises empower
their employees with powerful analytics and mobility solutions to
make informed decisions and transform their organizations,” said
Mr. Saylor, CEO, MicroStrategy Incorporated, who keynoted many of
the July events and spoke alongside other MicroStrategy executives.
“We invite everyone to join us at our global events where users and
data enthusiasts will have extensive opportunities to learn the
latest trends in analytics and data visualizations, network with
their peers, and get ahead of the competition using the latest
release of MicroStrategy 10.”
The Symposium Series highlighted a core set of critical
capabilities that help enterprises become successful data-driven
organizations. The general session featured 67 of MicroStrategy’s
main capabilities that address business and organizational
challenges across the enterprise, including analytics, mobility,
embedded BI, cloud and IoT, as well as machine learning, artificial
intelligence (AI) integration and predictive analytics. Leading BI
and analytics experts discussed how more organizations can leverage
each critical capability and effectively engage with data for a
competitive advantage within their respective markets.
Each MicroStrategy Symposium offered IT and business users an
opportunity to network, attend workshops, and learn about
MicroStrategy 10 applications from real world customers. Some of
the customers featured at the Symposium Series included: Big Lots,
Catalina Marketing, CCA Global Partners, Cisco, Huntington Bank,
Red Lobster, Wawa and more. The executive keynote, followed by a
day filled with more than a dozen breakout sessions and hands-on
workshops, covered new content on industry solutions, functional
solutions, analytics, mobility, and IoT.
The Symposium Series offered several hands-on workshops for
attendees to get first-hand experience with MicroStrategy Desktop,
our free enterprise data discovery product. Workshop attendees
tried new features for the first time before they were more widely
available. They also spun up their own dedicated cloud environments
with MicroStrategy on AWS, and learned how to deploy a secure,
collaborative environment without any hardware or setup costs of
their own.
Additionally, Symposium attendees learned about the latest
features in MicroStrategy 10.8, including powerful R analytics
capabilities, a gallery for custom data connectors, enhanced color
palettes, mobile enhancements and more. The sessions and workshops
showcased these new features, which are available across
MicroStrategy Desktop, MicroStrategy Web, MicroStrategy Mobile and
Usher.
MicroStrategy Announced Integration with
Microsoft® R Client, Bringing Advanced, Intelligent
Analytics and Machine Learning Capabilities to MicroStrategy
Users
In April 2017, MicroStrategy announced the integration between
MicroStrategy 10 and Microsoft R Client that enables users to build
and visualize machine learning algorithms. Predictive analytics and
machine learning are playing an increasingly important role in the
data analytics landscape, and the R programming language has become
the de facto industry standard for developing statistical and data
mining models. MicroStrategy made it easy to integrate
MicroStrategy Desktop and MicroStrategy Web with R, so users can
easily build and incorporate advanced analytics into their
enterprise reports, dashboards and mobile apps.
“We are excited to partner with MicroStrategy to bring Microsoft
R into their analytics platform,” said Bharath Sankaranarayan,
Principal Program Manager, Microsoft. “This allows MicroStrategy
and their customers to take advantage of machine learning
algorithms, and a high performance computing and analytical engine
that we have enabled in Microsoft R.”
Users can also leverage Microsoft R Client and R Tools for
Visual Studio to develop models that can be incorporated into
MicroStrategy reports and dashboards. The integration between
Microsoft R Client and MicroStrategy 10 can be done using the same
workflow as is currently specified for the Cran-R distribution in
MicroStrategy documentation. Customers who use Microsoft R Client
can benefit from Scale R technology and the associated functions
that enable parallel execution and remote computing. To learn more,
visit our blog post here.
“This is an incredibly exciting collaboration that we believe
will deliver so much value to our customers,” said Emmanuel
Richard, Vice President, Global Alliances, MicroStrategy
Incorporated. “The combination of Microsoft R Client with
MicroStrategy 10 harnesses the power of R, machine learning,
advanced analytics and the Internet of Things, helping
organizations take on challenging analytics initiatives.”
“MicroStrategy has made Microsoft R runtime accessible via
MicroStrategy Desktop,” said Sandipto Banerjee, Vice President,
Data Group & Advanced Technologies, MicroStrategy Incorporated.
“MicroStrategy 10 is embracing Microsoft R to bring the power of
advanced analytics, machine learning and Internet of Things to our
customers, and we’re pleased to unveil this enterprise-class
integration.”
MicroStrategy’s Integration with Alation Provides
Seamless Experience for Customers Conducting Self-service
Enterprise Data Discovery and Analytics
In April 2017, MicroStrategy announced that MicroStrategy 10 is
integrated with Alation Data Explorer, the search and discovery
interface of collaborative data company Alation. With this
integration, customers have access to a data catalog directly
within the MicroStrategy interface and can seamlessly conduct
self-service enterprise data discovery and analytics in the
MicroStrategy platform, enabling them to make faster, data-driven
business decisions.
When Alation connects to an organization’s data sources, it
crawls and indexes data assets stored across different physical
repositories, including databases, Hadoop files and data
visualization tools, to produce a rich catalog. As enterprises
shift to self-service analytics environments, executives, analysts,
data scientists and data stewards are increasingly becoming the
primary consumers of data. MicroStrategy 10’s integration with
Alation Data Explorer supports this changing paradigm by providing
a collaborative data catalog for data discovery and governance to a
broader set of users, thereby increasing the impact and value of
data. This integration leverages Alation’s new SDK to embed its
enterprise data search and discovery capabilities into
MicroStrategy 10.
“We are excited by the value MicroStrategy and Alation
collectively bring to business users – helping them easily
navigate, search and share insights from complex and voluminous
data structures like Hadoop, data lakes and data management
solutions,” said Mr. Richard, Vice President, Global Alliances,
MicroStrategy Incorporated. “As the market distances itself
progressively from niche, visualization-only technologies,
MicroStrategy’s enterprise analytics platform remains highly
flexible to help organizations keep up with the rapidly changing
big data landscape, and adapt to new technologies and data storage
paradigms. The combination of Alation’s data cataloging capacity
with MicroStrategy 10 fills a critical technology gap and provides
a modern big data analytics solution stack for both data consumers
and BI experts.”
“Access to a curated data catalog is foundational for increasing
the accuracy and productivity of self-service analytics,” said
Aaron Kalb, head of product, Alation. “With our new SDK, Alation
offers the first embeddable data catalog browser for analytical
tools, and a hassle-free implementation that brings the power of a
collaborative data catalog directly into the workflow of the data
consumer. We’re excited to be working closely with MicroStrategy
and making it simpler than ever for our joint customers to discover
and share data knowledge.”
To learn more about MicroStrategy and its partner community,
visit here.
Wipro Added MicroStrategy 10 Platform to its Portfolio for
Enterprise Analytics and Data Visualization Solutions
In April 2017, MicroStrategy announced its alliance with Wipro
Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global
information technology, consulting and business process services
company, to offer enterprise analytics and data visualization
solutions. Under this alliance, Wipro offers the MicroStrategy 10
platform to its global client base across industries.
Wipro's expertise in delivering end-to-end BI solutions,
combined with MicroStrategy’s leading enterprise analytics
platform, widens the scope and scale of robust enterprise analytics
and visualization solutions offered to Wipro clientele.
Developing a modern, intuitive analytics solution powerful
enough to transform large data volumes is still considered a pain
point by enterprises. Wipro has a portfolio of scalable,
easy-to-use, and ready-to-deploy BI and analytics solutions for its
customers. MicroStrategy 10 is an integral part of Wipro’s SNIPE-BI
Transformation Solution. We expect this solution to standardize and
implement governance, migration frameworks, tools and accelerators,
all while simplifying the customer experience and saving cost and
time resources.
Wipro and MicroStrategy jointly go to market with
industry-specific solutions and accelerators. The companies
collaborate and drive the resultant synergies to their customers to
deliver a self-service analytics culture. MicroStrategy also set up
a dedicated MicroStrategy Academy to support the skilled
technicians deploying the alliance.
Pallab Deb, Vice President & Global Head, Analytics - Wipro
Limited said, “Wipro’s clients from a wide range of industries look
to us for guidance on the latest data analytics technology. We are
confident that the integration of the MicroStrategy 10 platform
with Wipro’s SNIPE-BI Transformation Solution will add value to our
customers.”
MicroStrategy and The HADA Group Teamed Up to Deliver
Out-of-the-Box BI and Analytics Solution to Hospitality
Industry
In April 2017, MicroStrategy announced an alliance with The HADA
Group (THG), a hospitality industry focused solution provider based
in Boca Raton, FL, that integrated MicroStrategy 10 with The HADA
Group's HOBI© to offer an out-of-the-box solution tailored to
companies in the hospitality industry.
Hotel and resort owners, hotel management companies and hotel
operators are seeking a scalable and flexible enterprise analytics
platform that enables them to jump-start the BI culture within
their organizations. Developed by The HADA Group, HOBI (or
Hospitality Operations Business Intelligence) includes hundreds of
out-of-the-box desktop, iPad and iPhone® dashboards, and leverages
MicroStrategy Mobile and MicroStrategy Desktop features, including
thousands of visualizations and hospitality-specific metrics and
KPIs. Leveraging the latest features in MicroStrategy 10, the HOBI
solution allows users to access out-of-the-box HOBI Intelligent
Cubes and create their own insights in a trusted and governed
environment. The HOBI solution can be deployed on-premises and/or
hosted in the cloud on the AWS platform on a subscription
basis.
“Our team of industry and technical experts, together with
MicroStrategy’s experts, help our customers successfully implement
and deploy our solution in record time so that they can begin to
realize the benefits of the integrated HOBI and MicroStrategy 10
solution,” said Horacio Agostinelli, President & CEO of The
HADA Group. “Running HOBI in the cloud on AWS provides our
customers a cost-effective way to use industry leading analytics
and mobile software to make better business decisions.” To learn
more about HOBI, visit: HOBI for MicroStrategy 10.
The HADA Group solution, which has been used in production on
MicroStrategy Cloud™ for more than three years, provides analytics
for more than 250 hotels and resort operations, including multiple
luxury properties with thousands of rooms, retail stores and
restaurants, casinos, golf courses, marinas and other resort
operations, as well as urban limited service hotels. These
properties are managed by multiple hotel management companies and
operate under various hotel flags and brands.
Road Scholar Relies on MicroStrategy 10 to Enhance its
Learning Adventures and Campaigns
In June 2017, MicroStrategy announced that Road Scholar, the
not-for-profit world leader in lifelong learning since 1975,
deployed MicroStrategy 10 across its organization to better
understand the popularity and success of its programs and marketing
campaigns through visualizations of enrollment, retention, and call
center data.
Headquartered in Boston, MA, Road Scholar serves approximately
100,000 participants in 5,500 programs across 150 countries and all
50 states each year. Road Scholar employees use the MicroStrategy
platform to more effectively analyze Road Scholar’s operations and
visualize key performance indicators. This analysis helps Road
Scholar better serve the interests of its participants by
determining which programs to build out, their duration, the
activities to include, and the location where they should be
hosted. Road Scholar also uses MicroStrategy to analyze marketing
activity. By tracing program signups back to the distribution of
promotional materials such as catalogs, brochures, and emails, Road
Scholar can identify the programs that drove the highest and lowest
registrations, and take appropriate action to scale program
offerings to meet participant interest.
“As a non-profit operating in the travel business with a
generous cancellation policy, the ability to save costs while
providing a top-notch educational experience for our participants
is crucial,” said JoAnn Bell, Senior Vice President of Programs at
Road Scholar. "Since we began using MicroStrategy two years ago,
we’ve been able to refine our programs to better meet our
participants’ needs. MicroStrategy reports have made it possible
for our programming, inventory management and marketing teams to
analyze the success of various programs and campaigns, and more
accurately forecast where we should focus development in the coming
year.”
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
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 Facebook and Twitter.
MicroStrategy, MicroStrategy 10, MicroStrategy 10.4,
MicroStrategy 10.8, MicroStrategy Desktop, MicroStrategy Web,
MicroStrategy Mobile, MicroStrategy Server, MicroStrategy
Analytics, MicroStrategy World, MicroStrategy Cloud, Usher, Usher
Professional and Usher Analytics 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 10.8 and MicroStrategy on AWS; 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
MICROSTRATEGY INCORPORATED CONSOLIDATED STATEMENTS
OF OPERATIONS (in thousands, except per share data)
Three Months Ended Six Months
Ended June 30, June 30, 2017
2016 2017 2016 (unaudited) (unaudited)
(unaudited) (unaudited)
Revenues Product licenses $ 19,118 $
23,459 $ 40,130 $ 45,858 Subscription services 8,346
7,782 16,118 15,136 Total product licenses and
subscription services 27,464 31,241 56,248 60,994 Product support
70,766 71,451 141,256 139,948 Other services 22,380
20,450 43,682 41,215
Total revenues
120,610 123,142 241,186
242,157 Cost of revenues Product licenses
1,747 2,322 3,419 4,458 Subscription services 3,400
3,356 6,439 6,448 Total product licenses and
subscription services 5,147 5,678 9,858 10,906 Product support
4,542 3,687 8,876 6,960 Other services 14,686 14,736
28,773 29,058
Total cost of revenues
24,375 24,101 47,507
46,924 Gross profit 96,235
99,041 193,679 195,233
Operating expenses Sales and marketing 41,419 37,702
80,829 74,279 Research and development 19,561 19,160 37,987 36,735
General and administrative 19,582 21,092 39,839 43,311
Restructuring costs 0 8 0 33
Total
operating expenses 80,562 77,962
158,655 154,358 Income from
operations 15,673 21,079 35,024
40,875 Interest income, net 1,163 539 2,000 942 Other
(expense) income, net (2,618 ) 1,755 (4,474 )
87
Income before income taxes 14,218
23,373 32,550 41,904 Provision for income
taxes 3,142 4,489 6,607 8,748
Net
income $ 11,076 $ 18,884 $
25,943 $ 33,156 Basic earnings per
share (1): $ 0.97 $ 1.65 $
2.27 $ 2.90 Weighted average shares
outstanding used in computing basic earnings per share
11,444 11,428 11,441
11,418 Diluted earnings per share (1):
$ 0.96 $ 1.64 $ 2.24
$ 2.88 Weighted average shares outstanding used in
computing diluted earnings per share
11,592
11,523 11,593 11,499 (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, 2017 2016* (unaudited)
Assets Current assets Cash and cash equivalents $ 379,694 $
401,975 Restricted cash 833 737 Short-term investments 252,701
187,408 Accounts receivable, net 68,005 83,319 Prepaid expenses and
other current assets 13,951 11,548 Total current
assets 715,184 684,987 Property and equipment, net 54,490
57,436 Capitalized software development costs, net 5,498 8,497
Deposits and other assets 6,055 5,695 Deferred tax assets, net
15,871 11,704
Total Assets $
797,098 $ 768,319 Liabilities and
Stockholders' Equity Current liabilities Accounts payable and
accrued expenses $ 23,701 $ 36,628 Accrued compensation and
employee benefits 34,811 43,323 Deferred revenue and advance
payments, net 123,082 105,535 Total current
liabilities 181,594 185,486 Deferred revenue and advance
payments, net 10,697 13,915 Other long-term liabilities 14,810
16,447 Deferred tax liabilities 310 294
Total
Liabilities 207,411 216,142
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; 15,817 shares issued and 9,412 shares outstanding, and
15,805 shares issued and 9,400 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 552,541 543,974 Treasury stock, at cost; 6,405 shares
(475,184 ) (475,184 ) Accumulated other comprehensive loss (7,743 )
(10,743 ) Retained earnings 520,055 494,112
Total
Stockholders' Equity 589,687
552,177 Total Liabilities and Stockholders' Equity
$ 797,098 $ 768,319
* Derived from audited financial
statements.
MICROSTRATEGY INCORPORATED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
Six Months Ended June 30, 2017
2016 (unaudited) (unaudited)
Operating activities:
Net income $ 25,943 $ 33,156 Adjustments to reconcile net income to
net cash provided by operating activities: Depreciation and
amortization 7,133 8,832 Bad debt expense 1,835 523 Deferred taxes
(4,015 ) (2,537 ) Share-based compensation expense 6,889 5,075
Excess tax benefits from share-based compensation arrangements 0
(1,208 ) Changes in operating assets and liabilities: Accounts
receivable 16,033 12,876 Prepaid expenses and other current assets
(699 ) (3,455 ) Deposits and other assets (274 ) (2,070 ) Accounts
payable and accrued expenses (15,472 ) (4,387 ) Accrued
compensation and employee benefits (9,685 ) (148 ) Accrued
restructuring costs 0 (33 ) Deferred revenue and advance payments
11,072 21,382 Other long-term liabilities (1,647 )
(1,458 ) Net cash provided by operating activities 37,113
66,548
Investing activities: Proceeds from
redemption of short-term investments 151,860 152,820 Purchases of
property and equipment (1,467 ) (935 ) Purchases of short-term
investments (216,602 ) (161,818 ) Net cash used in
investing activities (66,209 ) (9,933 )
Financing activities: Proceeds from sale of class A common
stock under exercise of employee stock options 1,677 1,157 Payment
of taxes relating to net exercise of employee stock options 0
(3,739 ) Excess tax benefits from share-based compensation
arrangements 0 1,208 Payments on capital lease obligations and
other financing arrangements (12 ) (1,220 ) Net cash
provided by (used in) financing activities 1,665
(2,594 )
Effect of foreign exchange rate changes on cash,
cash equivalents, and restricted cash 5,246 1,052
Net (decrease) increase in cash, cash equivalents, and
restricted cash (22,185 ) 55,073
Cash, cash equivalents, and
restricted cash, beginning of period 402,712
292,959
Cash, cash equivalents, and restricted cash, end of
period $ 380,527 $ 348,032
MICROSTRATEGY
INCORPORATED REVENUE AND COST OF REVENUE DETAIL (in
thousands) Three Months Ended
Six Months Ended June 30, June 30, 2017
2016 2017 2016 (unaudited)
(unaudited) (unaudited) (unaudited)
Revenues Product
licenses and subscription services: Product licenses $ 19,118 $
23,459 $ 40,130 $ 45,858 Subscription services 8,346
7,782 16,118 15,136 Total product licenses and
subscription services 27,464 31,241 56,248
60,994 Product support 70,766 71,451 141,256 139,948 Other
services: Consulting 19,791 18,142 38,837 36,628 Education
2,589 2,308 4,845 4,587 Total other services
22,380 20,450 43,682 41,215
Total
revenues 120,610 123,142
241,186 242,157 Cost of revenues
Product licenses and subscription services: Product licenses 1,747
2,322 3,419 4,458 Subscription services 3,400 3,356
6,439 6,448 Total product licenses and subscription
services 5,147 5,678 9,858 10,906
Product support 4,542 3,687 8,876 6,960 Other services: Consulting
12,867 13,367 25,284 26,400 Education 1,819 1,369
3,489 2,658 Total other services 14,686
14,736 28,773 29,058
Total cost of revenues
24,375 24,101 47,507
46,924 Gross profit $
96,235 $ 99,041 $ 193,679
$ 195,233 MICROSTRATEGY
INCORPORATED DEFERRED REVENUE DETAIL (in
thousands) June 30, December
31, June 30, 2017 2016* 2016
(unaudited) (unaudited)
Current: Deferred product licenses
revenue $ 10,513 $ 13,023 $ 12,710 Deferred subscription services
revenue 17,741 18,303 14,704 Deferred product support revenue
156,804 162,781 150,361 Deferred other services revenue
8,681 10,015 8,573 Gross current deferred revenue and
advance payments 193,739 204,122 186,348 Less: unpaid deferred
revenue (70,657 ) (98,587 ) (65,186 ) Net
current deferred revenue and advance payments $ 123,082 $ 105,535 $
121,162
Non-current: Deferred product licenses
revenue $ 7,087 $ 9,118 $ 10,655 Deferred subscription services
revenue 784 1,307 1,959 Deferred product support revenue 7,211
5,751 6,796 Deferred other services revenue 856 690
666 Gross non-current deferred revenue and advance payments
15,938 16,866 20,076 Less: unpaid deferred revenue (5,241 )
(2,951 ) (8,704 ) Net non-current deferred revenue
and advance payments $ 10,697 $ 13,915 $ 11,372
Total
current and non-current: Deferred product licenses revenue $
17,600 $ 22,141 $ 23,365 Deferred subscription services revenue
18,525 19,610 16,663 Deferred product support revenue 164,015
168,532 157,157 Deferred other services revenue 9,537
10,705 9,239 Gross current and non-current deferred revenue
and advance payments 209,677 220,988 206,424 Less: unpaid deferred
revenue (75,898 ) (101,538 ) (73,890 ) Net
current and non-current deferred revenue and advance payments $
133,779 $ 119,450 $ 132,534
* Derived from audited financial
statements.
MICROSTRATEGY INCORPORATED RECONCILIATION
OF GAAP TO NON-GAAP MEASURES (in thousands)
Three Months Ended Six Months Ended
June 30, June 30, 2017 2016
2017 2016 (unaudited) (unaudited) (unaudited)
(unaudited)
Reconciliation of non-GAAP income from
operations: Income from operations $ 15,673 $ 21,079 $ 35,024 $
40,875 Share-based compensation expense 3,774 3,571 6,889 5,075
Restructuring costs 0 8 0 33 Non-GAAP
income from operations $ 19,447 $ 24,658 $ 41,913 $ 45,983
MICROSTRATEGY INCORPORATED WORLDWIDE EMPLOYEE
HEADCOUNT June 30, September
30, December 31, March 31,
June 30, 2016 2016 2016 2017
2017 Subscription services 39 49 48 41 49 Product support
156 162 171 185 176 Consulting 452 458 453 447 448 Education 31 35
39 41 42 Sales and marketing 541 571 587 620 642 Research and
development 532 528 512 522 526 General and administrative 314 317
323 306 301 Total headcount 2,065 2,120 2,133 2,162 2,184
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version on businesswire.com: http://www.businesswire.com/news/home/20170727006356/en/
MicroStrategy IncorporatedInvestor RelationsClaudia Cahill,
703-848-8600ir@microstrategy.com
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