Strategy Inc Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

MicroStrategy Q2 2020 Earnings Summary

  • Revenue: $110.6M (Down 6% YoY; -4% at constant currency)
  • Product License Revenue: $14.8M (Down 26% YoY; -23% at constant currency)
  • Subscription Services Revenue: $8.0M (Up 13% YoY)
  • Product Support Revenue: $70.0M (Down 4% YoY)
  • Services Revenue: Slightly up 1% YoY (Consulting up 7%, Education down 45%)
  • Non-GAAP Operating Income: $8.6M vs. a loss of $1.8M in Q2 2019 (Improvement of $10.3M)
  • Non-GAAP Operating Expenses: Down $16.2M YoY (17% decrease)
  • Cost Saving Measures: 6% workforce reduction in July, virtualization of events, reduced T&E expenses

Strategic Highlights

  • Cloud Momentum: Double-digit YoY growth in cloud-related subscription billings; strong customer interest amid work-from-home shift
  • HyperIntelligence Growth: Key deals with SEVEN-ELEVEN JAPAN, Dubai Health Authority, International Commerce Bank of China
  • OEM Business: Continued strength; recognized as #1 BI solution for OEM
  • Marketing Shift: Transitioned to a fully virtual demand generation strategy

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Operator: Thank you for standing by, and welcome to the MicroStrategy Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Michael Saylor, Chairman and CEO. Thank you. Please go ahead. Michael Saylor: Hello. This is Michael Saylor. I'm the Chairman and CEO of MicroStrategy. I'd like to welcome all of you to today's conference call regarding our 2020 second quarter financial results. I'm here with Phong Le, our President and Chief Financial Officer. First, I'd like to pass the floor to Phong, who's going to read the Safe Harbor statement. Phong Le: Thank you, Michael, and good evening, everyone. 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 those 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'll refer to certain non-GAAP financial measures. Reconciliations showing GAAP versus non-GAAP results are available in our earning

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