Strategy Inc Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Total Revenue: $128 million, up slightly YoY and up 7% compared to Q3 2019. Performance exceeded expectations given difficult YoY comparisons due to Q3 2020 being inflated by delayed COVID-19 deals and a large financial institution contract.
  • Non-GAAP Operating Income: $27.7 million, up $1.1 million YoY. Operating margin came in at 22%, exceeding expectations of 18%–19%.
  • Product License Revenue: $25.8 million, down 13% YoY but up 36% versus Q3 2019.
  • Subscription Services Revenue: $10.9 million, up 31% YoY. Current subscription billings grew 23% YoY. This marks the sixth consecutive quarter of double-digit growth.
  • Product Support Revenue: $70.4 million, down 1% YoY, driven by customer transitions from perpetual licenses to cloud offerings.
  • Consulting Services Revenue: $20.9 million, up 15% YoY—indicative of customer engagement and modernization activities.
  • Total Non-GAAP Expenses: $100.3 million, down 1% YoY.
  • GAAP Operating Loss: $49.7 million, including $65.2 million in digital asset impairment and $12.2 million in stock-based compensation.

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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 third quarter earnings webinar. Before we proceed, I will read the safe harbor statement. Some of the information we provide in this presentation 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 in this presentation we will refer to certain non-GAAP financial measures. Reconciliations showing the GAAP versus non-GAAP results are available in our earnings release and the appendix of this presentation, which were issued today and are available on our website at www.microstrategy.com. We 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 your questions at the end of the session. Please be sure to provide you name and your company's name when submitting your questions. And with that, I will turn the call over to Michael Saylor, Chairman and CEO of MicroStrategy

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