MicroStrategy Announces Third Quarter 2017 Financial Results
TYSONS CORNER, Va., Oct. 27, 2017 -- MicroStrategy Incorporated (Nasdaq: MSTR), a leading worldwide provider of enterprise analytics and mobility software, announced financial results for the three-month period ended September 30, 2017 (the third quarter of its 2017 fiscal year).
Third quarter 2017 revenues were $125.2 million versus $129.9 million for the third quarter of 2016, a 3.6% decrease. Product licenses and subscription services revenues for the third quarter of 2017 were $29.3 million versus $37.3 million for the third quarter of 2016, a 21.4% decrease. Product support revenues for the third quarter of 2017 were $72.9 million versus $72.5 million for the third quarter of 2016, a 0.6% increase. Other services revenues for the third quarter of 2017 were $23.0 million versus $20.2 million for the third quarter of 2016, a 14.3% increase. Foreign currency effects had a favorable impact on revenues for the third quarter of 2017.
Operating expenses for the third quarter of 2017 were $80.2 million versus $77.0 million for the third quarter of 2016, a 4.3% increase. MicroStrategy did not capitalize any software development costs during the third quarter of 2017 or 2016.
Income from operations for the third quarter of 2017 was $20.6 million versus $30.0 million for the third quarter of 2016. Net income for the third quarter of 2017 was $17.9 million, or $1.56 per share on a diluted basis, as compared to net income of $26.6 million, or $2.31 per share on a diluted basis, for the third quarter of 2016.
Non-GAAP income from operations, which excludes share-based compensation expense and restructuring costs, was $24.2 million for the third quarter of 2017 versus $33.4 million for the third quarter of 2016. The tables at the end of this press release include a reconciliation of income from operations to non-GAAP income from operations for the three months ended September 30, 2017 and 2016. An explanation of this non-GAAP measure is also included under the heading “Non-GAAP Financial Measure” below.
As of September 30, 2017, MicroStrategy had cash and cash equivalents and short-term investments of $646.1 million, as compared to $589.4 million as of December 31, 2016, an increase of $56.7 million. As of September 30, 2017, MicroStrategy had 9.4 million shares of class A common stock and 2.0 million shares of class B common stock outstanding.
Conference Call
MicroStrategy will be discussing its third quarter 2017 financial results on a conference call today beginning at approximately 5:00 p.m. EDT. To access the conference call, dial (844) 824-7425 (domestically) or (716) 220-9429 (internationally) and use conference ID 89717346. A live webcast and replay of the conference call will be available under the “Events” section on MicroStrategy’s investor relations website at http://ir.microstrategy.com/events.cfm. The replay will be available beginning approximately two hours after the call concludes until November 2, 2017 at (855) 859-2056 (domestically) or (404) 537-3406 (internationally) using the passcode 89717346. An archived webcast will also be available under the “Events” section on MicroStrategy’s investor relations website at http://ir.microstrategy.com/events.cfm.
About MicroStrategy Incorporated
MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software. A pioneer in the BI and analytics space, MicroStrategy delivers innovative software that empowers people to make better decisions and transform the way they do business. We provide our enterprise customers with world-class software and expert services so they can deploy unique intelligence applications.
Source: MicroStrategy
