Strategy Inc · NASDAQ:MSTR
Strategy — MicroStrategy — Q2 2021 Earnings Presentation
12 slides from Strategy's earnings presentation, Jul 29, 2021
Slide 1: Q2 2021 Financial Results
Q2 2021 FINANCIAL RESULTS July 29, 2021 Copyright © 2021 MicroStrategy Incorporated. All Rights Reserved.
Slide 2: Safe Harbor Statement
MICROSTRATEGY Q2 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: Q2 2021 Financial Highlights
Q2 2021 FINANCIAL HIGHLIGHTS $125.4M $10.3M $21.6M (17%) Total Revenues, an increase of 13% Subscription Services Revenues, an Non-GAAP Operating Income YoY, and an increase of 6% increase of 29% YoY (Margin), an increase of $13.1M YoY from Q2 19 $22.2M $10.6M $103.7M Product Licenses Revenues, an C
Slide 4: Business Intelligence Highlights
Q2 2021 BUSINESS INTELLIGENCE HIGHLIGHTS Broadening adoption of the Increasing strength of embedded MicroStrategy platform OEM business Growing traction in migrating Continuing investment in R&D on-premise customers to Cloud and optimizing efficiency in S&M solution and G&A from Virtual Wave Intelli
Slide 5: Bitcoin Highlights
Q2 2021 BITCOIN HIGHLIGHTS ~13,759 ~105,085 Bitcoins acquired at an aggregate Bitcoins held as of 6/30/21 at an cost of ~$529M at average purchase aggregate cost of $2.7B and carrying price of ~$38,467 per bitcoin, value of $2.1B, reflecting $690M in inclusive of fees and expenses. cumulative impair
Slide 6: Financial Highlights – Revenue
Q2 2021 FINANCIAL HIGHLIGHTS – REVENUE (IN MILLIONS) TOTAL REVENUES PRODUCT LICENSES CONTINUED INCREASE INCREASED 13% YOY REVENUES INCREASED IN CURRENT AND 6% FROM Q2 19 50% YOY AND 10% FROM SUBSCRIPTION BILLINGS Q2 19 OF 13% YOY Please refer to the Appendix for a reconciliation of Subscription Serv
Slide 7: Financial Highlights – Operating Income (Loss)
Q2 2021 FINANCIAL HIGHLIGHTS – OPERATING INCOME (LOSS) IN MILLIONS • Q2 21 NON-GAAP OPERATING INCOME OF $21.6M, UP 153% YOY • Q2 21 GAAP OPERATING LOSS INCLUDES $424.8M DIGITAL ASSET IMPAIRMENT CHARGE $(183.2) $(414.2) Please refer to the Appendix for a reconciliation of non-GAAP Operating Income (L
Slide 8: Financial Highlights – Trailing Twelve-Month Metrics
Q2 2021 FINANCIAL HIGHLIGHTS – TRAILING TWELVE-MONTH METRICS Subscription Services Total Revenue increased 7%, Revenue increased 20%, from $475.2M to $507.0M from $31.1M to $37.5M Product License Revenue Non-GAAP Operating increased 34%, from $76.5M Income increased 223%, to $102.8M from $30.0M to $
Slide 9: Appendix
APPENDIX Copyright © 2021 MicroStrategy Incorporated. All Rights Reserved. 9
Slide 10: Non-GAAP Reconciliations: Income from Operations
MICROSTRATEGY Q2 2021 EARNINGS CALL NON-GAAP RECONCILIATIONS ($M) RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Revenue $117.7 $119.7 $133.5 $111.4 $110.6 $127.4 $131.3 $122.9 $125.4 Cost of Revenues $25.4 $23.8 $24.6 $24.5 $24
Slide 11: Non-GAAP Reconciliations: Operating Expenses
MICROSTRATEGY Q2 2021 EARNINGS CALL NON-GAAP RECONCILIATIONS ($M) RECONCILIATION OF NON-GAAP OPERATING EXPENSES Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Operating Expenses $97.2 $91.3 $99.3 $87.0 $80.3 $125.9 $110.1 $283.5 $516.6 Stock-Based Compensation* $2.9 $1.7 $2.2 $2.9 $2.2 $2.4 $
Slide 12: Non-GAAP Reconciliations: Trailing Twelve-Month Metrics
MICROSTRATEGY Q2 2021 EARNINGS CALL NON-GAAP RECONCILIATIONS ($M) RECONCILIATION OF TRAILING TWELVE-MONTH METRICS Q3 19 Q4 19 Q1 20 Q2 20 TTM ended Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 TTM ended Q2 21 Revenue $119.7 $133.5 $111.4 $110.6 $475.2 $127.4 $131.3 $122.9 $125.4 $507.0 Product License Revenue $19.