Strategy Inc Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

MicroStrategy Q4 2022 Earnings Summary

  • Total Q4 Revenue: $132.6 million, down 1% YoY, but up 4% on constant currency basis compared to Q4 2021.
  • Total 2022 Revenue: $499.3 million, up 2% YoY on constant currency basis.
  • Cloud Growth:
    • Cloud subscription revenue for 2022 grew 46% YoY (constant currency); subscription billings grew 39% YoY.
    • Q4 2022 subscription service revenue up 47% YoY (54% at constant currency).
    • Cloud accounted for 64% of total Q4 revenue (up from 60% in Q4 2021).
    • Launch of MicroStrategy Cloud for Government (MCG) with FedRAMP authorization targeting federal customers.
  • Bitcoin Holdings:
    • As of Dec 31, 2022: 132,500 bitcoins held.
    • Q4 Acquisitions: Bought 3,204 BTC (~$17,616 per BTC) and sold 704 BTC (~$16,786 per BTC), net purchase of 2,500 BTC.
    • Total carrying value: ~$1.8B; Market value as of Feb 1, 2023: ~$3.1B.
    • Average cost: $30,100 per BTC.
    • Bitcoin impairment charge in Q4: $198 million (non-GAAP operating loss was $177 million).
  • Key Strategic Updates:
    • Unveiled MicroStrategy One – a unified analytics platform to be launched in 2023.

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Shirish Jajodia: Hello, everyone, and good evening. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I’ll be your moderator for MicroStrategy's 2022 Fourth 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 through 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, Phong Le will cover the business results for the full year 2022. Second, A

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