Strategy Inc Q2 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

MicroStrategy Q2 2022 Earnings Summary

  • Revenue: GAAP revenue was $122M, a 3% YoY decrease. On a constant currency basis, revenue increased 2% YoY. Growth was primarily driven by cloud subscription services, which rose 36% YoY (40% constant currency).
  • Software License Revenue: Total software license revenue was $34M, a 5% increase YoY (8% constant currency).
  • Subscription Revenue: Significant growth of 40% YoY in constant currency, with current subscription billings rising 51% YoY—marking the ninth straight quarter of double-digit growth.
  • Consulting Revenue: $21.4M, down 2% YoY but up 4% on a constant currency basis.
  • Support Renewal Rate: 95%, among the highest in company history.
  • Bitcoin Holdings: As of June 30, 2022, MicroStrategy held 129,699 Bitcoins, acquired at a total cost of ~$4B and an average cost of ~$30,664 per Bitcoin. The company does not plan to sell any Bitcoin.
  • Bitcoin Acquisitions in Q2: 481 Bitcoins acquired for $10M at an average price of $20,790/Bitcoin.
  • Bitcoin Impairment: Non-GAAP impairment charge of $918M due to accounting rules treating Bitcoin as intangible assets, measured at a low watermark Bitcoin price of ~$17,600.

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Shirish Jajodia: Hello, everyone, and good evening. I am Shirish Jajodia, Head of Investor Relations and Treasury at MicroStrategy. I will be your moderator for MicroStrategy's 2022 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 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 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. You can submit questions throughout the webinar, and Michael, Phong or Andrew will answer questions at the end of the session. Please be sure to provide your name and your company's name when submitting your questions. Now I will walk you through the agenda for today's call. First, Michael Saylor will provide a strategic review and discuss our recently announced execu

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