MICROSTRATEGY INCORPORATED 
By TYSONS CORNER, Va., Jan. 30, 2012 /PRNewswire/ -- MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced financial results for the three-month period ended December 31, 2011 (the fourth quarter of its 2011 fiscal year).
Fourth quarter 2011 revenues were $160.3 million, the highest quarterly total revenues in company history, versus $139.1 million for the fourth quarter of 2010, a 15% increase. Product licenses revenues for the fourth quarter of 2011 were $54.5 million versus $47.7 million for the fourth quarter of 2010, a 14% increase. Product support and other services revenues for MicroStrategy's core business intelligence (BI) business for the fourth quarter of 2011 were $99.5 million versus $85.8 million for the fourth quarter of 2010, a 16% increase.
Operating expenses for the fourth quarter of 2011 were $113.7 million versus $87.4 million for the fourth quarter of 2010, a 30% increase. The increase in operating expenses was primarily due to increased headcount and related expenses, particularly for engineering and sales personnel.
Net income for the fourth quarter of 2011 was $9.0 million, or $0.81 per share on a diluted basis, compared to $17.9 million, or $1.60 per share on a diluted basis, for the fourth quarter of 2010.
As of December 31, 2011, MicroStrategy had cash and cash equivalents of $199.6 million versus $174.1 million as of December 31, 2010, an increase of $25.5 million. As of December 31, 2011, MicroStrategy had 8,404,761 shares of class A common stock and 2,377,830 shares of class B common stock outstanding.
MicroStrategy Continues to Innovate in the Areas of Big Data, Mobile, Cloud and Social Intelligence Technologies:
In November 2011, MicroStrategy announced the general availability of Usher(TM), a free consumer friendly event management app linked to Facebook Events. Usher, available for the iPhone® on the Apple® iTunes® App Store, allows users to easily set up and manage an event from beginning to end with seamless integration with Facebook Events.
In addition, MicroStrategy upgraded Wisdom(TM) for Facebook. The new Wisdom application leverages Facebook profiles of Wisdom users and millions of their Facebook friends to deliver extraordinary insights derived from their Likes, interests, and preferences. Available at www.wisdom.com, or on iTunes at http://itunes.apple.com/us/app/wisdom-for-facebook/id455088890?ls=1&mt=8#, or through a user's Facebook log in at: http://apps.facebook.com/wisdomapp, the free Wisdom for Facebook app allows users to segment Facebook information in a myriad of ways and discover an almanac of information on millions of topics.
Wisdom offers a new way for users to gain insights and discover trends derived from the wisdom of the masses. Pooled and anonymized, personal information is never revealed, but the knowledge is captured and available for all Wisdom users. Does Mitt Romney appeal more to people who live in urban or rural areas? What are key differences between Target and Walmart fans, or the Coke and Pepsi crowds? What books do people who like Fox News read, or those who like CNN? Now, putting the collective knowledge of millions to work for users, Wisdom has answers to these questions and so much more in the recently updated Wisdom for Facebook application.
According to Michael Saylor, MicroStrategy founder and CEO, "Wisdom for Facebook is a collective intelligence application that gives users a level of insight never before possible - powered by the Likes of millions of fellow Facebook users."
For the consumer, Wisdom serves as a personal tool for actionable insight. Tap into the Wisdom Network and discover what's hot, and what's not. Single? Use Wisdom's filtering capability to find the most popular single spots in your town. Looking for new music? Match your tastes with others to see which bands you might enjoy. Much more than a recommendation engine, Wisdom allows users to glean insights based on people with similar demographic, psychographic, and geographic attributes.
On the mobile front, MicroStrategy was rated the top Mobile BI offering out of 24 product offerings in the Howard Dresner Mobile BI Survey. According to the survey data, MicroStrategy ranks #1 overall among vendors offering Mobile BI, based on 25 criteria platform and feature capabilities. MicroStrategy's mobile customers include such leading brands as GUESS?, Whole Foods Market, Herbalife, MetLife, Edmunds.com, eHarmony, and Sonic Automotive.
In addition, MicroStrategy attained AT&T Certified Solution status to deliver Mobile BI solutions. MicroStrategy passed a comprehensive suite of tests to become an official AT&T Industry and Mobility Alliance Program Partner. AT&T performed a full array of functionality, interoperability, performance, and usability tests on MicroStrategy's software platform in granting MicroStrategy certification. MicroStrategy is the only business intelligence company in the AT&T partner eco-system to pass AT&T's rigorous testing and partner vetting process.
New Customers and New Deals with Existing Customers in Q4 2011 Included:
AARP; ABN AMRO Bank N.V.; Aeroplan; AIG Global Asset Management Holdings Corp.; Amlin Plc; AutoTrader.com; Axfood IT AB; Banco Bilbao Vizcaya Argentaria, S.A. (BBVA); Bank of America; Bestway (Holdings) Limited; Biffa Waste Services; Bundesagentur fur Arbeit; Cabela's; Catalina Marketing Corporation; Centene Corporation; Centros Comerciales Carrefour S.A.; Citibank N.A.; Coca-Cola Refreshments USA, Inc.; Danone; Datacom Corporation; Delhaize America Shared Services Group; Dick's Sporting Goods; DirecTV; Disney Consumer Products; Facebook; Forever 21; Gulf States Toyota, Inc.; Hallmark Cards; Heartland Payment Systems; Hewlett Packard Company; Hilton Worldwide; International Game Technology; J. A. Russell Ltd.; Japan Post Network, Ltd.; Kinross Gold Corporation; Korea Power Exchange; Kuwait National Petroleum Company; McAfee; McCain Foods; Motion Picture Industry Pension and Health Plans; Nagase & Co., Ltd.; NBCUniversal Media, LLC; Netflix; New York Life Retirement Plan Services; OptumRx - a UnitedHealth Group Company; PepsiCo; Pfizer Global Manufacturing; Polo Ralph Lauren Corporation; QVC Deutschland Inc. & Co.KG Rhein Studios; Ross Stores; Safeway; Sanofi Pasteur; Sony Online Entertainment, LLC; Standard & Poor's Corporation; Standard Chartered Bank; Starwood Hotels & Resorts Worldwide; SWIFT; Swisscom AG; Target Corporation; Telenor Hungary; The Container Store; The Fresh Market; The Gap; Time Warner Cable; Tokai Kiosk Company; T-Systems International; UGIS Austria GmbH; Warner Bros. Technical Operations Inc.; and Yahoo!.
Examples of Customer Deals from Q4 2011:
Aeroplan
Aeroplan, Canada's premier coalition loyalty program, is owned by Groupe Aeroplan Inc., doing business as Aimia, a global leader in loyalty management. Aeroplan has chosen to expand its MicroStrategy deployment to enable its personnel to analyze member information, track purchasing patterns, identify profiles of loyal members, and ensure that its loyalty program is closely aligned with members' preferences. Aeroplan managers across various business areas, including marketing, partnership, finance, member services, analytics, and compliance, rely on MicroStrategy's highly visual dashboards, scorecards, and content-rich reports to gain valuable insights into its customers. Aeroplan selected MicroStrategy for its ease of use, platform integration, and its ad hoc and user-friendly dashboard capabilities.
Forever 21
Forever 21, headquartered in Los Angeles, is a specialty retailer of women's, men's and children's clothing and accessories, known for offering the hottest and most current fashion trends at a great value to consumers. Forever 21 selected MicroStrategy to perform financial analysis, store operations reporting, and merchandising analytics. The MicroStrategy-based reports and dashboards as well as its ad-hoc capabilities will enable end users to perform drill-down analyses, eliminating the reliance on IT to support the end user community with reporting needs. Forever 21 selected MicroStrategy for its ease of use, superior visualizations, mobile platform, and its depth of knowledge and leadership in the retail industry.
International Game Technology
International Game Technology is a global leader in the design, development and manufacture of gaming machines and systems products, as well as online and mobile gaming solutions for regulated markets. A new MicroStrategy customer, IGT has chosen MicroStrategy to build a secure extranet for its gaming clients that will provide casino managers with the ability to analyze live gaming machine data and make real-time decisions to adjust floor operations. IGT selected MicroStrategy for its ease of use, integrated architecture platform, and leadership in business intelligence and mobile technologies.
SWIFT
SWIFT, the Society for Worldwide Interbank Financial Telecommunication, is a member-owned cooperative that provides the communications platform, products and services to connect more than 9,700 financial institutions and corporations in 209 countries. SWIFT has chosen MicroStrategy as its enterprise business intelligence and analytics standard. MicroStrategy will anchor SWIFT's BI service offering that is used by participating banking organizations, securities institutions, and corporate customers worldwide. At SWIFT headquarters, MicroStrategy will power the company's BI system, allowing the global financial community to track and analyze interbank payment message traffic flowing through the SWIFT network. With MicroStrategy, banks and corporations will be able to monitor underlying value and currency flows, and better understand their position in the market, track sales performance, manage counterparty risk, and enhance operational efficiencies by identifying targets for cost savings. In selecting MicroStrategy over other business intelligence products, SWIFT cited superior platform architecture and product capabilities, as well as reliability, availability, high performance, and security.
T-Systems International
T-Systems International, based in Germany with over 47,600 employees worldwide and 2010 revenues at approximately EUR 9.1 billion, operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. Following a competitive tender, T-Systems was awarded a contract to establish a BI front end at Bundesagentur fur Arbeit, the Federal Employment Agency in Germany. Together with MicroStrategy, T-Systems will lay the BI foundation at Bundesagentur fur Arbeit and empower up to 100,000 internal and external end users with the ability to run 230,000 MicroStrategy-based reports and analytics against a 100-Terabyte data warehouse. The MicroStrategy BI platform will be leveraged by the Agency's broad user community to build a unified portal, thereby increasing efficiencies and reducing operating costs.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy is a leading provider of enterprise software platforms for business intelligence (BI), mobile intelligence, and social intelligence applications. MicroStrategy's BI platform enables leading organizations worldwide to analyze the vast amounts of data stored across their enterprises to make better business decisions. Companies choose MicroStrategy BI for its ease-of-use, sophisticated analytics, and superior data and user scalability. The MicroStrategy BI platform delivers actionable information to business users via the web and mobile devices. MicroStrategy's mobile intelligence platform helps companies and organizations build, deploy, and maintain mobile apps across a range of solutions by embedding intelligence, transactions, and multimedia into apps. MicroStrategy's social intelligence platform includes a number of applications that help enterprises harness the power of social networks for marketing and e-commerce, as well as a suite of free consumer friendly apps that use MicroStrategy's enterprise technologies. MicroStrategy's social intelligence platform helps companies leverage the value of social networks to better understand and engage their customers and fans. The MicroStrategy Cloud offering combines MicroStrategy and third-party software, hardware, and services to enable rapid, cost-effective development of hosted BI, mobile, and social applications. To learn more about MicroStrategy (Nasdaq: MSTR), visit www.microstrategy.com and follow us on Facebook (http://www.facebook.com/microstrategy) and Twitter (http://www.twitter.com/microstrategy).
MicroStrategy, MicroStrategy Business Intelligence Platform, MicroStrategy Cloud, MicroStrategy Mobile, Cloud Personal, Wisdom, and Usher are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
This press release may include statements that may constitute "forward-looking statements," including estimates of future business prospects or financial results and statements containing the words "believe," "estimate," "project," "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of MicroStrategy Incorporated and its subsidiaries (collectively, the "Company") to differ materially from the forward-looking statements. Factors that could contribute to such differences include: the extent and timing of market acceptance of MicroStrategy's new offerings, including MicroStrategy 9.2.1, MicroStrategy Cloud, Gateway for Facebook, Alert, Cloud Personal, Wisdom for Facebook, MicroStrategy Wisdom, Emma and Usher; the Company's ability to recognize revenue or deferred revenue through delivery of products or satisfactory performance of services; continued acceptance of the Company's other products in the marketplace; the timing of significant orders; delays in the Company's ability to develop or ship new products; competitive factors; general economic conditions, including significant downturns in industries, including the financial services and retail industries, in which we have a significant number of customers; currency fluctuations; impairment charges that may be required with respect to the Company's damaged corporate aircraft; and other risks detailed in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
MSTR-F
Contact:
MicroStrategy Incorporated
Investor Relations
ir@microstrategy.com
(703) 848-8600
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (audited)
Revenues
Product licenses $54,502 $47,653 $154,574 $126,717
Product support and other services 105,764 91,467 407,576 327,860
Total revenues 160,266 139,120 562,150 454,577
------- ------- ------- -------
Cost of revenues
Product licenses 2,260 1,896 8,774 7,637
Product support and other services 35,392 30,982 133,246 98,454
Total cost of revenues 37,652 32,878 142,020 106,091
------ ------ ------- -------
Gross profit 122,614 106,242 420,130 348,486
------- ------- ------- -------
Operating expenses
Sales and marketing 69,125 50,982 243,029 165,732
Research and development 22,312 13,748 72,618 50,566
General and administrative 22,223 22,649 89,441 81,599
Total operating expenses 113,660 87,379 405,088 297,897
------- ------ ------- -------
Income from operations before
financing and other income and income
taxes 8,954 18,863 15,042 50,589
----- ------ ------ ------
Financing and other income
Interest income, net 60 80 199 389
Gain on sale of investment - - 3,371 -
Other income, net 666 806 688 3,982
Total financing and other income 726 886 4,258 4,371
--- --- ----- -----
Income from operations before income taxes 9,680 19,749 19,300 54,960
Provision for income taxes 680 1,827 1,360 11,168
--- ----- ----- ------
Net income $9,000 $17,922 $17,940 $43,792
====== ======= ======= =======
Basic earnings per share (1) $0.84 $1.66 $1.67 $3.85
===== ===== ===== =====
Weighted average shares outstanding used
in computing basic earnings per share 10,767 10,802 10,719 11,378
====== ====== ====== ======
Diluted earnings per share (1) $0.81 $1.60 $1.62 $3.72
===== ===== ===== =====
Weighted average shares outstanding used
in computing diluted earnings per share 11,078 11,196 11,066 11,779
====== ====== ====== ======
(1) Basic and fully diluted earnings per share for class A and class B common stock
are the same.
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Core BI Business Angel.com Consolidated
---------------- --------- ------------
Three Months
Three Months Ended Ended Three Months Ended
December 31, December 31, December 31,
------------ ------------ ------------
2011 2010 2011 2010 2011 2010
---- ---- ---- ---- ---- ----
Revenues
Product licenses $54,502 $47,653 $- $- $54,502 $47,653
Product support and other services 99,467 85,753 - - 99,467 85,753
Angel.com services - - 6,297 5,714 6,297 5,714
Total revenues 153,969 133,406 6,297 5,714 160,266 139,120
------- ------- ----- ----- ------- -------
Cost of revenues
Product licenses 2,260 1,896 - - 2,260 1,896
Product support and other services 32,539 28,002 - - 32,539 28,002
Angel.com services - - 2,853 2,980 2,853 2,980
Total cost of revenues 34,799 29,898 2,853 2,980 37,652 32,878
------ ------ ----- ----- ------ ------
Gross profit 119,170 103,508 3,444 2,734 122,614 106,242
------- ------- ----- ----- ------- -------
Operating expenses
Sales and marketing 66,628 47,817 2,497 3,165 69,125 50,982
Research and development 20,946 12,823 1,366 925 22,312 13,748
General and administrative 21,288 21,975 935 674 22,223 22,649
Total operating expenses 108,862 82,615 4,798 4,764 113,660 87,379
------- ------ ----- ----- ------- ------
Income (loss) from operations before
financing and other income and income
taxes 10,308 20,893 (1,354) (2,030) 8,954 18,863
------ ------ ------ ------ ----- ------
Financing and other income (expense)
Interest income, net 60 80 - - 60 80
Gain on sale of investment - - - - - -
Other income (expense), net 709 771 (43) 35 666 806
Total financing and other income
(expense) 769 851 (43) 35 726 886
--- --- --- --- --- ---
Income (loss) from operations before
income taxes $11,077 $21,744 $(1,397) $(1,995) $9,680 $19,749
Provision for income taxes 680 1,827
--- -----
Net income $9,000 $17,922
====== =======
Basic earnings per share $0.84 $1.66
===== =====
Weighted average shares outstanding
used in computing basic earnings per
share 10,767 10,802
====== ======
Diluted earnings per share $0.81 $1.60
===== =====
Weighted average shares outstanding
used in computing diluted earnings
per share 11,078 11,196
====== ======
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Core BI Business Angel.com Consolidated
---------------- --------- ------------
Twelve Months Ended Twelve Months Ended Twelve Months Ended
December 31, December 31, December 31,
------------ ------------ ------------
2011 2010 2011 2010 2011 2010
---- ---- ---- ---- ---- ----
Revenues
Product licenses $154,574 $126,717 $- $- $154,574 $126,717
Product support and other services 382,594 309,371 - - 382,594 309,371
Angel.com services - - 24,982 18,489 24,982 18,489
Total revenues 537,168 436,088 24,982 18,489 562,150 454,577
------- ------- ------ ------ ------- -------
Cost of revenues
Product licenses 8,774 7,637 - - 8,774 7,637
Product support and other services 121,924 89,718 - - 121,924 89,718
Angel.com services - - 11,322 8,736 11,322 8,736
Total cost of revenues 130,698 97,355 11,322 8,736 142,020 106,091
------- ------ ------ ----- ------- -------
Gross profit 406,470 338,733 13,660 9,753 420,130 348,486
------- ------- ------ ----- ------- -------
Operating expenses
Sales and marketing 231,504 157,459 11,525 8,273 243,029 165,732
Research and development 67,863 47,239 4,755 3,327 72,618 50,566
General and administrative 86,237 79,390 3,204 2,209 89,441 81,599
Total operating expenses 385,604 284,088 19,484 13,809 405,088 297,897
------- ------- ------ ------ ------- -------
Income (loss) from operations before
financing and other income and income
taxes 20,866 54,645 (5,824) (4,056) 15,042 50,589
------ ------ ------ ------ ------ ------
Financing and other income (expense)
Interest income, net 199 389 - - 199 389
Gain on sale of investment 3,371 - - - 3,371 -
Other income (expense), net 764 3,956 (76) 26 688 3,982
Total financing and other income
(expense) 4,334 4,345 (76) 26 4,258 4,371
----- ----- --- --- ----- -----
Income (loss) from operations before
income taxes $25,200 $58,990 $(5,900) $(4,030) $19,300 $54,960
Provision for income taxes 1,360 11,168
----- ------
Net income $17,940 $43,792
======= =======
Basic earnings per share $1.67 $3.85
===== =====
Weighted average shares outstanding
used in computing basic earnings per
share 10,719 11,378
====== ======
Diluted earnings per share $1.62 $3.72
===== =====
Weighted average shares outstanding
used in computing diluted earnings
per share 11,066 11,779
====== ======
MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December December
31, 31,
2011 2010
---- ----
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $199,634 $174,097
Restricted cash and short-term
investments 289 284
Accounts receivable, net 94,723 82,056
Prepaid expenses and other current
assets 17,043 26,751
Deferred tax assets, net 31,516 13,670
------ ------
Total current assets 343,205 296,858
Property and equipment, net 95,311 65,033
Capitalized software development
costs, net 7,031 9,059
Deposits and other assets 5,306 5,587
Deferred tax assets, net 2,998 5,029
----- -----
Total Assets $453,851 $381,566
======== ========
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable and accrued
expenses $46,401 $36,683
Accrued compensation and employee
benefits 68,308 60,201
Deferred revenue and advance
payments 103,199 89,331
Deferred tax liabilities 485 355
--- ---
Total current liabilities 218,393 186,570
Deferred revenue and advance
payments 10,841 7,878
Other long-term liabilities 45,141 37,946
Deferred tax liabilities 10,498 -
------ ---
Total Liabilities 284,873 232,394
------- -------
Stockholders' Equity
Preferred stock undesignated,
$0.001 par value; 5,000 shares
authorized;
no shares issued or outstanding - -
Class A common stock, $0.001 par
value; 330,000 shares authorized;
14,810 shares issued and 8,405
shares outstanding, and 14,351
shares
issued and 7,946 shares
outstanding, respectively 15 14
Class B common stock, $0.001 par
value; 165,000 shares authorized;
2,378 and 2,694 shares issued and
outstanding, respectively 2 3
Additional paid-in capital 457,837 455,374
Treasury stock, at cost; 6,405
shares (475,184) (475,184)
Accumulated other comprehensive
loss (2,052) (1,455)
Retained earnings 188,360 170,420
Total Stockholders' Equity 168,978 149,172
------- -------
Total Liabilities and Stockholders'
Equity $453,851 $381,566
======== ========
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
------------
2011 2010
---- ----
(unaudited) (audited)
Operating activities:
Net income $17,940 $43,792
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 18,526 12,799
Bad debt expense 1,485 3,436
Deferred taxes (5,403) 1,689
Excess tax benefits from
share-based compensation
arrangements (4,507) (741)
Gain on sale of investment (3,371) -
Other, net - 70
Changes in operating assets
and liabilities:
Accounts receivable (15,141) (30,134)
Prepaid expenses and other
current assets 7,115 (13,159)
Deposits and other assets 85 (2,353)
Accounts payable and accrued
expenses 4,775 4,651
Accrued compensation and
employee benefits 9,061 14,178
Deferred revenue and advance
payments 18,498 16,285
Other long-term liabilities 7,244 25,312
----- ------
Net cash provided by operating
activities 56,307 75,825
Investing activities:
Proceeds from sale of
investment 3,371 -
Purchases of property and
equipment (40,660) (16,289)
Capitalized software
development costs (5,907) (2,185)
Insurance proceeds 7,065 -
(Increase) decrease in
restricted cash and
investments (51) 1,047
--- -----
Net cash used in investing
activities (36,182) (17,427)
Financing activities:
Proceeds from sale of class A
common stock under exercise
of employee stock options 2,463 1,154
Excess tax benefits from
share-based compensation
arrangements 4,507 741
Purchases of treasury stock - (108,993)
--- --------
Net cash provided by (used in)
financing activities 6,970 (107,098)
Effect of foreign exchange
rate changes on cash and cash
equivalents (1,558) (1,972)
------ ------
Net increase (decrease) in
cash and cash equivalents 25,537 (50,672)
Cash and cash equivalents,
beginning of period 174,097 224,769
------- -------
Cash and cash equivalents, end
of period $199,634 $174,097
======== ========
SOURCE MicroStrategy Incorporated
