Strategy Inc Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue Growth: Total revenue grew 13% YoY and 10% in constant currency. Compared to Q2 2019, revenue increased 6%, marking the company's strongest second quarter in six years.
  • License and Subscription Revenue: License revenue rose 50% YoY and 10% over Q2 2019. Subscription revenue increased 29% compared to Q2 2020. Despite reported 13% growth in subscription billings, adjusted growth would have been 42% using previous accounting methods.
  • EPS Outperformance: Non-GAAP EPS was $1.72 per share, significantly exceeding analyst consensus of $0.98 and up from $0.60 per share YoY.
  • Operating Income: Non-GAAP operating income increased 153% YoY. Non-GAAP operating margin was 17%, reflecting solid profitability improvements.
  • Bitcoin Strategy: MicroStrategy acquired 13,759 Bitcoin during Q2 at an average price of $38,467. The company completed a $500 million senior secured debt offering (6.125% interest over 7 years) to finance a portion of these purchases.
  • Total Holdings: As of the end of Q2, MicroStrategy held 105,085 Bitcoin, purchased for a total cost basis of $2.741 billion.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Jeremy Price: 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 Second 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 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. Michael Saylor: Thank you, Jeremy. 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 2021 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 is going to provide an update on our operations and finance for the quarter. Phong Le: Thank you, Michael. I'll start with some highlights from our second quarter performance. MicroStrategy performed well across the Board, demonstrating continued momentum in our business analytics software business, while also completing another successful capital raise that expanded our digital asset holdings. We built upon our strong first quarter performanc

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional