Slide 1: Q1 2022 Financial Results
Q1 2022 Financial Results May 3, 2022 Copyright © 2022 MicroStrategy Incorporated. All Rights Reserved.
Slide 2: Safe Harbor Statement
MicroStrategy Q1 2022 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: Q1 2022 Financial highlights
Q1 2022 Financial highlights $119.3M $12.8M $155.6M Total Revenues, a decrease of 3% Subscription Services Revenues, an Non-GAAP Operating Loss YoY, or almost flat on a constant increase of 28% YoY, or 30% on a currency basis constant currency basis $16.5M $11.4M $170.1M Product Licenses Revenues, a
Slide 4: Bitcoin highlights
Q1 2022 Bitcoin highlights Key Stats Bitcoin Value ($M) ~4,827 ~129,218 $5,893 Bitcoins acquired at an aggregate cost of Bitcoins held as of 3/31/22 at an ~$215M at average purchase price of aggregate cost of $4.0B and carrying ~$44,645 per bitcoin, inclusive of fees value of $2.9B, reflecting ~$1.1
Slide 5: Bitcoin holdings evolution
Q1 2022 Bitcoin holdings evolution Approximate Number of Bitcoins Held at End of Quarter Bitcoin Price ($) 129,218 $70,000 124,391 114,042 $60,000 105,085 $58,601 $50,000 $45,880 91,326 $43,535 $45,603 $40,000 $34,763 70,469 $29,181 110,942 115,109 $30,000 100,593 $30,159 $30,700 92,079 $27,713 $26,
Slide 6: Business intelligence growth focus
Q1 2022 Business intelligence growth focus 1 Enterprise Analytics 2 Embedded Analytics 3 Cloud Transition • Be the best modern, open, solution for • Develop differentiated, developer focused • Provide leading enterprise cloud enterprise analytics solutions for embedded analytics and analytics produc
Slide 7: Modern enterprise and embedded intelligence
Q1 2022 Modern enterprise and embedded intelligence 1 Modern Enterprise 2 Modern Embedded 3 MicroStrategy Cloud • Workstation and Library: Optimized • Applications: Personalize the MicroStrategy • Security First – FedRAMP certified: Robust workflows with the best user experience experience via Works
Slide 8: Financial highlights – Revenue
Q1 2022 Financial highlights – Revenue ($ in Millions) Total Revenues Product Licenses Revenues Current Subscription Billings Q1 2022: -3% YOY Q1 2022: -22% YOY Q1 2022: +18% YOY TTM: +3% YOY TTM: +2% YOY TTM: +37% YOY $24.3 $131.3 $134.5 $127.4 $128.0 $32.5 $122.9 $125.4 $119.3 $29.6 $29.8 $111.4 $
Slide 9: Financial highlights – Cost structure and drivers
Q1 2022 Financial highlights – Cost structure and drivers ($ in Millions) Non-GAAP Expenses By Type $298 $275 Q1 2022 vs. Q1 2021 Drivers Bitcoin Impairment Charges Non-cash charges due to bitcoin price volatility G&A $194 Increased administrative costs $170 R&D Increased headcount and wage inflatio
Slide 10: Financial highlights – Operating income (loss)
Q1 2022 Financial highlights – Operating income (loss) ($ in Millions) Non-GAAP Operating Income (Loss) Digital Asset Impairment Charges $424.8 $194.1 $170.1 $146.6 $44.2 $65.2 $3.6 $26.5 ($17.7) ($37.5) ($124.3) ($175.4) ($155.6) ($403.2) Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 • Q1 2022 non-GAAP
Slide 11: First Bitcoin Backed Term Loan
First Bitcoin Backed Term Loan Key terms Item Terms Lender Silvergate Bank Loan Amount $205 Million Term 3 Years Interest Rate Secured Overnight Financing Rate 30Day Average (SOFR30A) + 3.70%; Floor of 3.75% Initial LTV 25% (Collateral value of ~$820M with ~19,466 bitcoins) Top-Up LTV 50% Collateral
Slide 12: Current bitcoin holdings
Q1 2022 Current bitcoin holdings 129,218 95,643 MacroStrategy: Unencumbered MacroStrategy: Pledged MicroStrategy: Pledged 19,466 14,109 As of March 31, 2022 12
Slide 13: Solid Capital Structure Framework
Solid Capital Structure Framework • Robust capital structure insulated from near-term market volatility of bitcoin prices • Sufficient liquidity through cash flows generated at software business to cover the interest expenses Amount at Annual Interest Annual Interest Future Considerations For Simila
Slide 14: 2022 Outlook
2022 Outlook Sustained Continued Positive Growth Increase in Transition to Expectations Subscription Cloud Billings 14
Slide 15: Appendix
Appendix Copyright © 2022 MicroStrategy Incorporated. All Rights Reserved.
Slide 16: Balance Sheet – Debt Maturity Schedule
Balance Sheet – Debt Maturity Schedule ($ in Millions) $1,050 $855 $205 $500 $650 $0 $0 $0 $0 2022 2023 2024 2025 2026 2027 2028 1) Bitcoin-Backed Term Loan 0.000% Senior 6.125% Senior Instrument 2) 0.750% Senior Convertible Convertible Notes Secured Notes Notes 1) Mar 2025 Maturity 2) Dec 2025 Feb
Slide 17: Non-GAAP reconciliations
MicroStrategy Q1 2022 Earnings Call Non-GAAP reconciliations ($ in millions) Reconciliation of GAAP to non-GAAP income (loss) from operations Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Revenues $110.6 $127.4 $131.3 $122.9 $125.4 $128.0 $134.5 $119.3 GAAP Cost of Revenues $24.0 $21.7 $20.8 $22.5
Slide 18: Non-GAAP reconciliations
MicroStrategy Q1 2022 Earnings Call Non-GAAP reconciliations ($ in millions) Reconciliation of non-GAAP operating expenses Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 GAAP Operating Expenses $80.3 $125.9 $110.1 $283.5 $516.6 $155.3 $248.0 $263.6 Share-Based Compensation (1) $2.2 $2.4 $3.2 $7.4 $
Slide 19: Non-GAAP reconciliations
MicroStrategy Q1 2022 Earnings Call Non-GAAP reconciliations ($ in millions) Reconciliation of total non-GAAP expenses Q1 21 Q1 22 GAAP Expenses Cost of Revenues $22.5 $25.7 Sales & Marketing $38.2 $33.2 Research & Development $29.5 $33.5 General & Administrative $21.7 $26.7 Digital Asset Impairment