Strategy Inc Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Total Revenue: $119.3 million, down 3% year-over-year (YoY); nearly flat on a constant currency basis. Trailing 12-month revenue is up 3% YoY.
  • Product License Revenue: $16.5 million, down 22% YoY, due to a large transaction in Q1 2021 creating a difficult comparison. Trailing 12-month growth was 2% YoY.
  • Subscription Services Revenue: $12.8 million, up 28% YoY and 30% on a constant currency basis. Current subscription billings were $11.4 million (+18% YoY), marking the 8th straight quarter of double-digit growth.
  • Product Support Revenue: $67.2 million, down 5% YoY. Decline primarily driven by customer migration to cloud and unfavorable FX impacts.
  • Consulting Revenue ("Other Services"): $22.8 million, up 9% YoY (13% constant currency), driven by increased billable hours.
  • Non-GAAP Total Expenses: $275 million, down from $298 million YoY. Included $170 million in Bitcoin impairment charges (vs. $194 million in Q1 2021).
  • Non-GAAP Operating Loss: $155.6 million, mainly due to Bitcoin impairment charges.

Bitcoin Holdings and Strategy

  • Bitcoin Purchased in Q1: $215 million at an average price of $44,645 per BTC.

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Shirish Jajodia: We'll get started. Hello, everyone, and good evening. I am Shirish Jajodia, MicroStrategy's Senior Director of Treasury and Head of Investor Relations. I'll be your moderator for MicroStrategy's 2022 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 risk 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. Reconciliations 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 microstrategy.com. I would like to welcome you all to today's webinar and let you know that we will taking questions using the Q&A feature at the bottom of your screen. With that, I will turn the call over to Michael Saylor, Chairman and CEO of MicroStrategy. Michael? Michael Saylor: Thank you, Shirish. I'm Michael Saylor. I'm the Chairman and CEO of MicroStrategy. I'd like to welcome all of you to today's webinar regarding our 2022 first quarter financial results. I'm here with Phong Le, our Pre

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