Slide 1: Q4 2021 Financial Results
Q4 2021 Financial Results February 1, 2022 Copyright © 2022 MicroStrategy Incorporated. All Rights Reserved.
Slide 2: Safe Harbor Statement
MicroStrategy Q4 2021 Earnings Call Safe Harbor Statement FORWARD-LOOKING STATEMENTS 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-look
Slide 3: MicroStrategy World 2022
MicroStrategy World 2022 February 1-2 | Annual Conference | 100% Virtual And Free Enterprise Analytics Bitcoin for Corporations • Global trends in enterprise analytics • Keynote • Embedded analytics • Bitcoin treasury • Could analytics • Bitcoin products and services • Customer success stories • Bit
Slide 4: FY 2021 Financial highlights
FY 2021 Financial highlights Operations Balance Sheet $510.8M $43.1M ~53,922 Total Revenues, an increase of 6% Subscription Services Revenues, an Bitcoins acquired in 2021 at an YoY; positive annual growth for the increase of 30% YoY aggregate cost of ~$2.6 billion first time since 2014 at average p
Slide 5: Bitcoin + BI Synergy
Bitcoin + BI Synergy Advantage of a virtuous “bitcoin + BI” flywheel Market Attention Pipeline & Sales Growth $1,200 $1,000 $800 Bitcoin/BI $600 $544.49 Dec 31, 2021 Brand Value $400 $118.29 $200 Jun 30, 2020 Increased Operating $0 Revenue Investment in Bitcoin and Superior Technology 5
Slide 6: Q4 2021 Financial highlights
Q4 2021 Financial highlights $134.5M $11.8M $124.3M Total Revenues, an increase of 2% Subscription Services Revenues, an Non-GAAP Operating Loss YoY, or 4% on a constant currency increase of 35% YoY, also 35% on a basis constant currency basis $32.5M $24.3M $146.6M Product Licenses Revenues, an Curr
Slide 7: Business intelligence growth focus
Q4 2021 Business intelligence growth focus 1 Enterprise Analytics 2 OEM 3 Cloud Transition • Be the best modern, open, solution for • Develop differentiated, developer focused • Provide leading enterprise cloud enterprise analytics solutions for OEMs and technology analytics product and services com
Slide 8: Bitcoin highlights
Q4 2021 Bitcoin highlights Key Stats Bitcoin Value ($M) ~10,349 ~124,391 Bitcoins acquired at an aggregate cost of Bitcoins held as of 12/31/21 at an $5,707 ~$591M at average purchase price of aggregate cost of $3.8B and carrying ~$57,113 per bitcoin, inclusive of fees value of $2.9B, reflecting ~$9
Slide 9: Bitcoin holdings evolution
Q4 2021 Bitcoin holdings evolution Approximate Number of Bitcoins Held at End of Quarter Bitcoin Price ($) $70,000 124,391 114,042 $60,000 105,085 $58,601 $50,000 $45,880 91,326 $43,535 $40,000 $34,763 70,469 $29,181 110,942 $30,000 100,593 $30,159 92,079 $27,713 $24,214 $26,080 $20,000 $10,706 91,3
Slide 10: Financial highlights – Revenue
Q4 2021 Financial highlights – Revenue ($ in Millions) Total Revenues Product Licenses Revenues Current Subscription Billings Q4 2021: +2% YOY Q4 2021: +9% YOY Q4 2021: +53% YOY FY 2021: +6% YOY FY 2021: +17% YOY FY 2021: +39% YOY +2% $24.3 +9% +53% $133.5 $131.3 $134.5 $127.4 $128.0 $32.5 $122.9 $1
Slide 11: Financial highlights – Cost structure and drivers
Q4 2021 Financial highlights – Cost structure and drivers ($ in Millions) Non-GAAP Expenses By Type $1,251 $259 Q4 2021 vs. Q4 2020 Drivers Bitcoin Impairment Charges Non-cash charges due to bitcoin price volatility $147 G&A $831 Increased personnel costs and increased bitcoin management and consult
Slide 12: Financial highlights – Operating income (loss)
Q4 2021 Financial highlights – Operating income (loss) ($ in Millions) Non-GAAP Operating Income (Loss) Digital Asset Impairment Charges $424.8 $194.1 $146.6 $44.2 $65.2 $26.5 $12.0$0.0 $3.0 $0.0 $8.6 $0.0 $3.6 ($17.7) ($37.5) ($124.3) ($175.4) ($403.2) Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 2
Slide 13: Balance sheet – Debt maturity schedule
Q4 2021 Balance sheet – Debt maturity schedule ($ in Millions) $1,050 $650 $500 $0 $0 $0 $0 $0 2021 2022 2023 2024 2025 2026 2027 2028 Instrument 0.750% Senior 0.000% Senior 6.125% Senior and Maturity Convertible Notes Convertible Notes Secured Notes due Dec 2025 due Feb 2027 due Jun 2028 (1) Terms
Slide 14: Free cash flow
FY 2021 Free cash flow 35% ($ in Millions) Non-GAAP Free Cash Flow 30% Non-GAAP Free Cash Flow Non-GAAP FCF Margin % 25% 18% 20% 15% 10% 10% 6% $91 $50 5% $29 0% FY 2019 FY 2020 FY 2021 Continued growth in Free Cash Flow • Prioritized both growth and profitability • Fully virtual model drives reduce
Slide 15: 2022 Outlook
2022 Outlook Sustained Continued Positive Growth Increase in Transition to Expectations Subscription Cloud Billings 15
Slide 16: Appendix
APPENDIX Copyright © 2022 MicroStrategy Incorporated. All Rights Reserved.
Slide 17: Non-GAAP reconciliations
MicroStrategy Q4 2021 Earnings Call Non-GAAP reconciliations ($ in millions) Reconciliation of GAAP to non-GAAP income (loss) from operations Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Revenues $133.5 $111.4 $110.6 $127.4 $131.3 $122.9 $125.4 $128.0 $134.5 GAAP Cost of Revenues $24.6 $24.
Slide 18: Non-GAAP reconciliations
MicroStrategy Q4 2021 Earnings Call Non-GAAP reconciliations ($ in millions) Reconciliation of subscription services revenues to current subscription billings Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Current Deferred Subscription Services Revenues $16.6 $16.6 $17.9 $16.2 (1) $23.3 (1) $
Slide 19: Non-GAAP reconciliations
MicroStrategy Q4 2021 Earnings Call Non-GAAP reconciliations ($ in millions) Reconciliation of non-GAAP operating expenses Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 GAAP Operating Expenses $99.3 $87.0 $80.3 $125.9 $110.1 $283.5 $516.6 $155.3 $248.0 Stock-Based Compensation (1) $2.2 $2.9
Slide 20: Non-GAAP reconciliations
MicroStrategy Q4 2021 Earnings Call Non-GAAP reconciliations ($ in millions) Reconciliation of total non-GAAP expenses Q1 20 Q2 20 Q3 20 Q4 20 FY 2020 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 GAAP Expenses Cost of Revenues $24.5 $24.0 $21.7 $20.8 $91.1 $22.5 $23.0 $22.3 $24.0 $91.9 Sales & Marketing $39.5 $3