Microstrategy, Inc. (MSTR) Tops Q3 EPS by 28c, Revenues Miss

Microstrategy, Inc. (NASDAQ: MSTR) reported Q3 EPS of $0.94, $0.28 better than the analyst estimate of $0.66. Revenue for the quarter came in at $119.7 million versus the consensus estimate of $125.24 million.

Third Quarter 2019 Financial Highlights

• Revenues: Total revenues for the third quarter of 2019 were $119.7 million, a 2.0% decrease, or a 0.4% increase on a non-GAAP constant currency basis, compared to the third quarter of 2018. Product licenses and subscription services revenues for the third quarter of 2019 were $26.9 million, a 2.3% decrease, or a 1.4% increase on a constant currency basis, compared to the third quarter of 2018. Product support revenues for the third quarter of 2019 were $72.9 million, a 2.1% decrease, or a 0.2% decrease on a constant currency basis, compared to the third quarter of 2018. Other services revenues for the third quarter of 2019 were $19.9 million, a 1.2% decrease, or a 1.1% increase on a constant currency basis, compared to the third quarter of 2018.
• Gross Profit: Gross profit for the third quarter of 2019 was $95.9 million, representing an 80.1% gross margin, compared to a gross margin of 80.9% in the third quarter of 2018.
• Operating Expenses: Operating expenses for the third quarter of 2019 were $91.3 million, a 0.3% decrease compared to the third quarter of 2018.
• Income from Operations: Income from operations for the third quarter of 2019 was $4.6 million versus $7.2 million for the third quarter of 2018. Non-GAAP income from operations, which excludes share-based compensation expense, was $6.4 million for the third quarter of 2019 versus non-GAAP income from operations of $10.2 million for the third quarter of 2018.
• Net Income: Net income for the third quarter of 2019 was $9.7 million, or $0.94 per share on a diluted basis, as compared to net income of $12.7 million, or $1.10 per share on a diluted basis, for the third quarter of 2018.
• Cash and Short-term Investments: As of September 30, 2019, MicroStrategy had cash and cash equivalents and short-term investments of $578.3 million, as compared to $576.1 million as of December 31, 2018, an increase of $2.2 million.

“Our solid third quarter results reflect growing interest in MicroStrategy 2019™ and increased adoption of HyperIntelligence™. Our customers continue to choose our award-winning platform to deliver timely insights to employees who may have previously struggled to find the insights they need,” said Michael J. Saylor, CEO, MicroStrategy Incorporated. “Additionally, we are seeing increased customer interest in our cloud offerings for their simplicity, scalability, and speed.”

For earnings history and earnings-related data on Microstrategy, Inc. (MSTR) click here.

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