Strategy Inc Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

MicroStrategy Q1 2021 Earnings Summary

  • Revenue Growth: Total revenue for Q1 2021 was $122.9 million, a 10% increase year-over-year and 7% increase over Q1 2019.
  • Product License Revenue: $21.3 million, up 69% YoY and 16% compared to Q1 2019—driven by both new deals and conversions from on-premise to term licenses.
  • Subscription Revenues: $10 million, up 26% YoY. Subscription billings increased by 19% YoY, marking the fourth straight quarter of double-digit growth.
  • Consulting Services Revenue: $20.9 million, up 6% YoY despite remote delivery constraints due to the pandemic.
  • Operating Results: GAAP operating loss of $183.2 million due to a $194.1 million Bitcoin impairment charge; however, non-GAAP operating income was strong at $18.7 million, up 514% YoY.
  • Expenses: GAAP expenses were $306.1 million including Bitcoin-related impairments. Non-GAAP expenses were $104.2 million, down 4% YoY due to cost efficiencies in staffing and events.
  • Cash and Balance Sheet: Cash balance at the end of Q1 stood at $82.5 million. Issued $1.05 billion in zero-coupon convertible notes with a 50% premium, primarily used for Bitcoin purchases.

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Jeremy Price: All right, we've given everyone a few minutes or about a minute to get onboard here. Good evening, everyone. I'm Jeremy Price, MicroStrategy's Senior Vice President of Financial Planning and Analysis and Head of Investor Relations. I'll be your moderator for MicroStrategy's 2021 First Quarter Earnings Webinar. Before we proceed, I will read the safe harbor statement. Some of the information we provide during today's call regarding our future expectations, plans and prospects may constitute forward-looking statements. Actual results may differ materially from these forward-looking statements due to various important factors, including the factors discussed in our most recent 10-Q filed with the SEC. We assume no obligation to update these forward-looking statements, which speak only as of today. Also, during today's call, we will refer to certain non-GAAP financial measures. Reconciliation showing GAAP versus non-GAAP results are available in our earnings release and presentation, which were issued today and are available on our website at www.MicroStrategy.com. I would like to welcome you all to today's webinar, and let you know that we will be taking questions using the Q&A feature at the bottom of your screen. You can submit questions throughout the webinar, and Michael or Phong will answer them at the end of the session. Please be sure to provide your name and your company's name when submitting your questions. And with that, I will turn the call over to Mich

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