Slide 1: Q3 2021 Financial Results
Q3 2021 FINANCIAL RESULTS October 28, 2021 Copyright © 2021 MicroStrategy Incorporated. All Rights Reserved.
Slide 2: Safe Harbor Statement
MICROSTRATEGY Q3 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- loo
Slide 3: Corporate Strategy
Q3 2021 CORPORATE STRATEGY PROFITABLY GROW ENTERPRISE ACQUIRE AND HOLD BITCOIN ANALYTICS BI BUSINESS • Maintain product leadership through modern, open, • Acquire bitcoin through use of excess cash flows, enterprise software and debt and equity transactions • Target and delight enterprise customers
Slide 4: Financial Highlights
Q3 2021 FINANCIAL HIGHLIGHTS $128.0M $10.9M $27.7M (22%) Total Revenues, a slight increase Subscription Services Revenues, an Non-GAAP Operating Income YoY, and an increase of 7% from increase of 31% YoY (Margin), an increase of $1.1M YoY Q3 19 $25.8M $8.0M $100.3M Product Licenses Revenues, a Curre
Slide 5: Business Intelligence Highlights
Q3 2021 BUSINESS INTELLIGENCE HIGHLIGHTS Demand for Enterprise Analytics is Escalating Proven Solutions are Replacing Experimental Initiatives Increasing Strength of Embedded OEM Business Source: Gartner Peer Insights ‘Voice of the Customer’: Analytics and Business Intelligence Everywhere Intelligen
Slide 6: Redirecting Savings From Improved Sales Productivity Into R&D Spend
Q3 2021 REDIRECTING SAVINGS FROM IMPROVED SALES PRODUCTIVITY INTO R&D SPEND PRODUCTIVITY ($000’s) (1) R&D SPEND ($M) Increased investments in cloud, security, and OEM $293.8 $111.2 $109.4 +31% $103.6 $102.5 $223.9 $185.1 $170.5 $78.8 2018 2019 2020 LTM Q3 2021 2017 2018 2019 2020 LTM Q3 2021 (1) Pro
Slide 7: Bitcoin Highlights
Q3 2021 BITCOIN HIGHLIGHTS ~8,957 ~114,042 Bitcoin Value ($M) Bitcoins acquired at an aggregate Bitcoins held as of 9/30/21 at an $4,965 cost of ~$420M at average purchase aggregate cost of $3.2B and carrying price of ~$46,876 per bitcoin, value of $2.4B, reflecting $755M in inclusive of fees and ex
Slide 8: Bitcoin Holdings Evolution
Q3 2021 BITCOIN HOLDINGS EVOLUTION Approximate Number of Bitcoins Held at End of Quarter Bitcoin Price ($) $80,000 120,000 114,042 $70,000 105,085 $60,000 100,000 91,326 $58,601 $50,000 $43,535 80,000 $40,000 $34,763 70,469 $29,181 $30,000 60,000 $27,713 $20,000 $24,214 $26,080 $10,706 38,250 $15,96
Slide 9: Financial Highlights – Revenue
Q3 2021 FINANCIAL HIGHLIGHTS – REVENUE (IN MILLIONS) TOTAL REVENUES PRODUCT LICENSES CONTINUED INCREASE IN INCREASED SLIGHTLY REVENUES DECREASED CURRENT SUBSCRIPTION YOY AND 7% FROM Q3 19 13% YOY AND INCREASED BILLINGS OF 23% YOY 36% FROM Q3 19 $133.5 $131.3 (1) $127.4 $122.9 $125.4 $128.0 $15.9 $11
Slide 10: Financial Highlights – Operating Income (Loss)
Q3 2021 FINANCIAL HIGHLIGHTS – OPERATING INCOME (LOSS) IN MILLIONS $30.1 $26.5 $27.7 $21.6 $18.7 • Q3 21 NON-GAAP OPERATING INCOME OF $12.0 $27.7M, UP 4% YOY $9.6 $8.6 $6.4 $6.3 $4.6 $3.0 $0.4 $(0.1) • Q3 21 GAAP OPERATING LOSS INCLUDES $65.2M DIGITAL ASSET IMPAIRMENT CHARGE $(20.3) $(49.7) $(183.2)
Slide 11: Appendix
APPENDIX Copyright © 2021 MicroStrategy Incorporated. All Rights Reserved. 11
Slide 12: Non-GAAP Reconciliations
MICROSTRATEGY Q3 2021 EARNINGS CALL NON-GAAP RECONCILIATIONS ($M) RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Revenue $119.7 $133.5 $111.4 $110.6 $127.4 $131.3 $122.9 $125.4 $128.0 Cost of Revenues $23.8 $24.6 $24.5 $24.0 $21
Slide 13: Non-GAAP Reconciliations
MICROSTRATEGY Q3 2021 EARNINGS CALL NON-GAAP RECONCILIATIONS ($M) RECONCILIATION OF NON-GAAP OPERATING EXPENSES Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Operating Expenses $91.3 $99.3 $87.0 $80.3 $125.9 $110.1 $283.5 $516.6 $155.3 Stock-Based Compensation (1) $1.7 $2.2 $2.9 $2.2 $2.4 $3
Slide 14: Non-GAAP Reconciliations – Trailing Twelve-Month Metrics
MICROSTRATEGY Q3 2021 EARNINGS CALL NON-GAAP RECONCILIATIONS ($M) RECONCILIATION OF TRAILING TWELVE-MONTH METRICS Q4 19 Q1 20 Q2 20 Q3 20 TTM ended Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 TTM ended Q3 21 Revenue $133.5 $111.4 $110.6 $127.4 $482.9 $131.3 $122.9 $125.4 $128.0 $507.6 Product License Revenue $30.
Slide 15: Treasury: Capital Markets Activity and Bitcoin Acquisition
MICROSTRATEGY Q3 2021 EARNINGS CALL TREASURY CAPITAL MARKETS ACTIVITY AND BITCOIN ACQUISITION Approx. Number of Average Purchase Acquisition Market Value on Quarter Capital Market Transactions Bitcoin Acquired Price ($) Cost ($) 9/30/2021 ($) (1) Repurchased $60M in stock and Q3 2020 38,250 $11,111