MicroStrategy Incorporated
04-29-10

MicroStrategy Announces First Quarter 2010 Financial Results

16% Increase in Revenue Year-Over-Year

MCLEAN, Va., April 29, 2010 /PRNewswire via COMTEX News Network/ -- MicroStrategy(R) Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced financial results for the three-month period ended March 31, 2010 (the first quarter of its 2010 fiscal year).

First quarter 2010 revenues were $93.4 million versus $80.2 million for the first quarter of 2009, a 16% increase. Product licenses revenues for the first quarter of 2010 were $18.0 million versus $17.0 million for the first quarter of 2009, a 6% increase. Product support and other services revenues for MicroStrategy's core business intelligence (BI) business in the first quarter of 2010 were $71.3 million versus $60.6 million for the first quarter of 2009, an 18% increase.

Operating expenses for the first quarter of 2010 were $64.2 million versus $52.7 million for the first quarter of 2009, a 22% increase. During the first quarter of 2009, MicroStrategy capitalized $4.2 million in research and development costs associated with the development of its MicroStrategy 9(TM) software, while no software development costs have been capitalized since the general release of MicroStrategy 9 in March 2009.

Income from continuing operations and net income for the first quarter of 2010 were each $6.9 million, or $0.56 per share on a diluted basis. Income from continuing operations for the first quarter of 2009 was $8.7 million, or $0.71 per share on a diluted basis, and net income for the first quarter of 2009 was $23.0 million, or $1.88 per share on a diluted basis. In February 2009, MicroStrategy completed the sale of its majority-owned subsidiary, Alarm.com Incorporated, which was classified as a discontinued operation, resulting in a gain of $14.4 million, net of tax, in the first quarter of 2009.

During the first quarter of 2010, MicroStrategy repurchased 169,547 shares of its class A common stock at an average price per share of $85.83 and an aggregate cost of $14.6 million. As of March 31, 2010, MicroStrategy had cash and cash equivalents of $231.9 million versus $224.8 million as of December 31, 2009, an increase of $7.1 million. As of March 31, 2010, MicroStrategy had 9,088,066 shares of class A common stock and 2,694,362 shares of class B common stock outstanding.

MicroStrategy Positioned in Leaders Quadrant of Gartner's 2010 Magic Quadrant for Business Intelligence Platforms Report:

Gartner, Inc. has positioned MicroStrategy in the Leaders quadrant in the 2010 "Magic Quadrant for Business Intelligence Platforms" report. Gartner describes Leaders as "vendors that are reasonably strong in the breadth and depth of their BI platform capabilities, and can deliver on enterprisewide implementations that support a broad BI strategy. Leaders articulate a business proposition that resonates with buyers, supported by the viability and operational capability to deliver on a global basis." A copy of the Gartner report is available, compliments of MicroStrategy, at http://www.microstrategy.com/Company/Gartnerquadrant.asp.

MicroStrategy Announced Beta Release of iPhone Apps Development Platform:

MicroStrategy recently announced that it will offer a mobile application platform for developing and deploying iPhone(R) Apps. MicroStrategy Mobile(TM) for iPhone offers a new way to develop and deploy iPhone Apps that is faster, easier, and more maintainable than using traditional Integrated Development Environments. MicroStrategy Mobile for iPhone offers the following benefits:

Mobile BI applications represent a new breed of business applications that are simple-to-use, highly focused, and available whenever and wherever business is conducted. Business people no longer need to delay decision-making due to a lack of information or delay executing a transaction simply because they are away from their desks. Mobile applications delivered through smartphones such as the iPhone have the potential to revolutionize business processes across every industry. For more details, visit http://www.microstrategy.com/mobile/platform.

MicroStrategy Offers Interactive Reports and Dashboards on the New Apple iPad:

MicroStrategy now offers interactive reporting and analysis directly on the Apple(R) iPad(TM). With MicroStrategy, iPad users can seamlessly access MicroStrategy-based reports, business charts, and information dashboards at their convenience. MicroStrategy reports and dashboards do not need to be reformatted for viewing on the iPad, giving users seamless access to the same business information that they see on their desktop computers. For more information on MicroStrategy on the iPad, visit http://www.microstrategy.com/mobile/ipad.

MicroStrategy also offers mobile BI capabilities for the Apple iPhone, the BlackBerry(R) smartphone, and the Amazon Kindle(R) DX. MicroStrategy's architecture is engineered to provide the speed and performance required by customers using business intelligence on a mobile device.

MicroStrategy Introduces New High Performance Standards for Business Intelligence:

In April 2010, MicroStrategy introduced a multi-year initiative to further improve the performance of its business intelligence platform. MicroStrategy's high performance initiative includes the formation of its High Performance and Scalability Lab, the creation of a dedicated Performance Engineering team, and specific R&D efforts solely focused on providing MicroStrategy customers with the highest levels of performance for BI applications of all sizes. With its new high performance initiative, MicroStrategy plans to:

MicroStrategy will launch its High Performance BI Webcast series, "Top 10 Ways to Optimize Performance with MicroStrategy" on May 6, 2010. The first one-hour Webcast will provide useful insights to extend performance levels and enhance the user experience. For more details, visit http://www.microstrategy.com/high-performance-BI.

MicroStrategy's Free Reporting Package Provides Critical Business Insights from SAP BW:

MicroStrategy announced that its free reporting software package, MicroStrategy Reporting Suite(TM), provides seamless access to SAP(R) Business Information Warehouse (SAP BW) data. SAP BW is an online analytical processing system and data warehouse. MicroStrategy Reporting Suite enables users to develop operational and analytical reports from SAP BW data and non-SAP data from an integrated BI interface. With MicroStrategy Reporting Suite, business users and IT professionals can quickly access SAP BW data to perform statistical and advanced analyses, run performance scorecards, and drill to investigate details, all from the same tool. MicroStrategy Reporting Suite extends SAP BW data analysis to more users, with its full-featured, intuitive interface and easy-to-use reports. For more details, visit www.microstrategy.com/freereportingsoftware/sapbw.

MicroStrategy Offers More than 200 Hours of Free Online Training for BI Professionals:

To address the increased market demand for MicroStrategy trained personnel, MicroStrategy recently announced that it is offering a free online training curriculum that covers a wide range of training needs. BI users from business and technical disciplines can choose from hundreds of lessons across a series of classes that cover key BI topics, prerequisite material for certification exams, the latest products and capabilities from MicroStrategy, techniques for leveraging advanced settings and tools, and MicroStrategy companion technologies.

MicroStrategy also offers a full range of instructor-led courses, certification programs, and comprehensive education packages to meet the diverse education requirements of its customers. For more details on MicroStrategy's free online training, visit http://www.microstrategy.com/Education/Online.

New Centers for Medicare & Medicaid Services Information Dashboard Powered by MicroStrategy:

The new information dashboard recently launched by the Centers for Medicare & Medicaid Services (CMS) is powered by MicroStrategy. The CMS dashboard offers an exciting tool in support of President Obama's initiative for transparency and open government. In addition to providing the American public with detailed insights into Medicare spending data, the dashboard data can be used by government and industry to assess health care policies, improve the management of health care, and identify areas for change.

The CMS dashboard, which can be viewed at http://www.cms.gov/dashboard, offers transparency into over $100 billion in Medicare spending data. The dashboard shortcuts the process of compiling the data and provides easy access for citizens to view the information at their convenience. With data from over 40 million Medicare hospital admissions, the dashboard enables the public to view the relationships between cost and volume of Medicare admissions by state, starting in January 2006. Every month, the data will be updated with nearly one million more admissions.

MicroStrategy's dashboards are used by businesses and government agencies to augment data comprehension and improve decision-making. To learn more about MicroStrategy's dashboard technology, visit http://www.microstrategy.com/dashboards.

New Customers and New Deals with Existing Customers in Q1 2010 Included:

99 Cents Only Stores; Amica Mutual Insurance; Banco Bilbao Vizcaya Argentaria; Canadian Institute for Health Information; Cancer Care Ontario; Cardinal Glass Industries; Charming Shoppes of Delaware; Chiquita Brands; Danone; Dick's Sporting Goods; eBay; Electronic Arts; Epsilon Data Management; Fannie Mae; Foot Locker; Freddie Mac; Heartland Payment Systems; Herbalife International of America; Interstate Batteries; LinkedIn Corporation; Maritz; McCain Foods; Meijer Great Lakes Limited Partnership; MNET Broadcast Services; MORE International; MySpace; National Aeronautics and Space Administration; Nordstrom; Nygard International; PHI Service Company; Reprise Media; Republic National Distributing Company; Ryder System; Sears Holdings Management Corporation; Sierra Health Services; Telescope; Telefonica O2 UK Limited; Tesco Personal Finance plc; The Mens Wearhouse; Tuesday Morning; U.S. House of Representatives; University of Richmond; US Navy Navair; US Postal Service; Valpak Direct Marketing Systems; and Wilton Industries

Examples of Customer Deals from Q1 2010:

Interstate Batteries

Interstate Batteries, the leading automotive replacement battery brand in North America, recently extended its enterprise BI strategy with MicroStrategy dashboards. Over the past several years, Interstate Batteries has used MicroStrategy dashboards for enhanced visibility into sales performance and historical sales trends. With the expansion of MicroStrategy across the enterprise, Interstate Batteries will be able to provide dashboard metrics and analysis capabilities to its distributors. This new reporting capability will improve inventory management, increase sales, and provide more effective management of new customers.

Nygard International

Nygard International, headquartered in Winnipeg, Canada, is a leading fashion company that designs and markets women's fashion apparel. Nygard has recently expanded its deployment of MicroStrategy for enhanced mobile intelligence, and operational reporting and analytics. With MicroStrategy Mobile, Nygard's mobile workforce is able to track product performance across store locations and reseller channels, and rely on real-time information to make critical business decisions. Nygard currently has six mobile BI applications in production.

Republic National Distributing Company

Republic National Distributing Company (RNDC) is the second largest distributor of premium wine and spirits in the U.S. RNDC expanded its MicroStrategy deployment to maximize sales opportunities and increase cost savings. With the recent purchase of MicroStrategy software, RNDC will more rapidly and effectively bring analysis to bear on the key profit indicators of the organization. RNDC's sales management uses the MicroStrategy platform to measure sales performance across all customer channels and at all key management levels in the organization.

About MicroStrategy Incorporated

Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its ease-of-use, sophisticated analytics, and superior data and user scalability. MicroStrategy offers free reporting software that can be downloaded from its website, http://www.microstrategy.com/freereportingsoftware. More information about MicroStrategy (Nasdaq: MSTR) is available at www.microstrategy.com.

MicroStrategy, MicroStrategy 9, MicroStrategy Mobile and MicroStrategy Reporting Suite 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 Company's ability to recognize revenue or deferred revenue through delivery of products or satisfactory performance of services, such as the Company's ability to timely release its mobile application platform for developing and deploying iPhone Apps; continued acceptance of the Company's products in the marketplace; the timing of significant orders; delays in the Company's ability to develop or ship new products, such as its mobile application platform for developing and deploying iPhone Apps and new or modified products the Company may seek to develop as a result of its high performance initiatives; market acceptance of 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; 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


                                 MICROSTRATEGY INCORPORATED
                           CONSOLIDATED STATEMENTS OF OPERATIONS
                           (in thousands, except per share data)


                                                    Three Months Ended
                                                         March 31,
                                                         ---------
                                                     2010              2009
                                                     ----              ----
                                             (unaudited)       (unaudited)
    Revenues
    Product licenses                              $17,954           $16,971
    Product support and other services             75,436            63,269
      Total revenues                               93,390            80,240
                                                   ------            ------

    Cost of Revenues
    Product licenses                                1,915               596
    Product support and other services             19,709            14,065
      Total cost of revenues                       21,624            14,661
                                                   ------            ------

    Gross profit                                   71,766            65,579
                                                   ------            ------

    Operating Expenses
    Sales and marketing                            33,387            30,530
    Research and development                       12,331             7,839
    General and administrative                     18,460            14,344
      Total operating expenses                     64,178            52,713
                                                   ------            ------

    Income from continuing operations before
    financing and other income and income
     taxes                                          7,588            12,866
                                                    -----            ------

    Financing and Other Income
    Interest income, net                              102               145
    Other income, net                               2,849               536
      Total financing and other income              2,951               681
                                                    -----               ---

    Income from continuing operations before
     income taxes                                  10,539            13,547
      Provision for income taxes                    3,638             4,888
                                                    -----             -----
    Income from continuing operations               6,901             8,659

    Discontinued operations:
    Gain from sale of discontinued
     operations, net of tax provision ($0
     and $11,121, respectively)                         -            14,423
    Loss from discontinued operations, net
     of tax benefit ($0 and $54,
     respectively)                                      -              (107)
    Discontinued operations, net of tax                 -            14,316


    Net Income                                     $6,901           $22,975
                                                   ======           =======

    Basic earnings per share (1):
      From continuing operations                    $0.58             $0.73
      From discontinued operations                     $-             $1.20
                                                      ---             -----
         Basic earnings per share                   $0.58             $1.93
                                                    =====             =====
    Weighted average shares outstanding used
     in computing basic
         earnings per share                        11,890            11,890
                                                   ======            ======

    Diluted earnings per share (1):
      From continuing operations                    $0.56             $0.71
      From discontinued operations                     $-             $1.17
                                                      ---             -----
         Diluted earnings per share                 $0.56             $1.88
                                                    =====             =====
    Weighted average shares outstanding used
     in computing diluted
         earnings per share                        12,303            12,219
                                                   ======            ======



    (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
                                                       ----------------
                                                      Three Months Ended
                                                          March  31,
                                                          ----------
                                                      2010              2009
                                                      ----              ----


    Revenues
    Product licenses                               $17,954           $16,971
    Product support and other services              71,338            60,610
    Angel.com services                                   -                 -
      Total revenues                                89,292            77,581
                                                    ------            ------

    Cost of Revenues
    Product licenses                                 1,915               596
    Product support and other services              18,155            13,027
    Angel.com services                                   -                 -
      Total cost of revenues                        20,070            13,623
                                                    ------            ------
    Gross profit                                    69,222            63,958
                                                    ------            ------

    Operating Expenses
    Sales and marketing                             31,887            29,358
    Research and development                        11,658             6,827
    General and administrative                      17,946            13,907
      Total operating expenses                      61,491            50,092
                                                    ------            ------

    Income (loss) from continuing operations
     before
    financing and other income and income
     taxes                                           7,731            13,866
                                                     -----            ------

    Financing and Other Income
    Interest income, net                               102               145
    Other income, net                                2,849               536
      Total financing and other income               2,951               681
                                                     -----               ---
    Income (loss) from continuing operations
     before income taxes                           $10,682           $14,547
      Provision for income taxes
    Income from continuing operations

    Discontinued operations:
      Gain from sale of discontinued operations,
       net of tax
      Loss from discontinued operations, net of
       tax
    Discontinued operations, net of tax

    Net income

    Basic earnings per share:
        From continuing operations
        From discontinued operations
            Basic earnings per share

    Diluted earnings per share:
        From continuing operations
        From discontinued operations
            Diluted earnings per share

         Basic weighted average shares outstanding
         Diluted weighted average shares
          outstanding




                                                        Angel.com
                                                        ---------
                                                   Three Months Ended
                                                       March  31,
                                                       ----------
                                                    2010             2009
                                                    ----             ----


    Revenues
    Product licenses                                  $-               $-
    Product support and other services                 -                -
    Angel.com services                             4,098            2,659
      Total revenues                               4,098            2,659
                                                   -----            -----

    Cost of Revenues
    Product licenses                                   -                -
    Product support and other services                 -                -
    Angel.com services                             1,554            1,038
      Total cost of revenues                       1,554            1,038
                                                   -----            -----
    Gross profit                                   2,544            1,621
                                                   -----            -----

    Operating Expenses
    Sales and marketing                            1,500            1,172
    Research and development                         673            1,012
    General and administrative                       514              437
      Total operating expenses                     2,687            2,621
                                                   -----            -----

    Income (loss) from continuing operations
     before
    financing and other income and income
     taxes                                          (143)          (1,000)
                                                    ----           ------

    Financing and Other Income
    Interest income, net                               -                -
    Other income, net                                  -                -
      Total financing and other income                 -                -
                                                     ---              ---
    Income (loss) from continuing operations
     before income taxes                           $(143)         $(1,000)
      Provision for income taxes
    Income from continuing operations

    Discontinued operations:
      Gain from sale of discontinued operations,
       net of tax
      Loss from discontinued operations, net of
       tax
    Discontinued operations, net of tax

    Net income

    Basic earnings per share:
        From continuing operations
        From discontinued operations
            Basic earnings per share

    Diluted earnings per share:
        From continuing operations
        From discontinued operations
            Diluted earnings per share

         Basic weighted average shares outstanding
         Diluted weighted average shares
          outstanding




                                                         Consolidated
                                                         ------------
                                                      Three Months Ended
                                                          March  31,
                                                          ----------
                                                      2010              2009
                                                      ----              ----


    Revenues
    Product licenses                               $17,954           $16,971
    Product support and other services              71,338            60,610
    Angel.com services                               4,098             2,659
      Total revenues                                93,390            80,240
                                                    ------            ------

    Cost of Revenues
    Product licenses                                 1,915               596
    Product support and other services              18,155            13,027
    Angel.com services                               1,554             1,038
      Total cost of revenues                        21,624            14,661
                                                    ------            ------
    Gross profit                                    71,766            65,579
                                                    ------            ------

    Operating Expenses
    Sales and marketing                             33,387            30,530
    Research and development                        12,331             7,839
    General and administrative                      18,460            14,344
      Total operating expenses                      64,178            52,713
                                                    ------            ------

    Income (loss) from continuing operations
     before
    financing and other income and income
     taxes                                           7,588            12,866
                                                     -----            ------

    Financing and Other Income
    Interest income, net                               102               145
    Other income, net                                2,849               536
      Total financing and other income               2,951               681
                                                     -----               ---
    Income (loss) from continuing operations
     before income taxes                           $10,539           $13,547
      Provision for income taxes                     3,638             4,888
                                                     -----             -----
    Income from continuing operations                6,901             8,659

    Discontinued operations:
      Gain from sale of discontinued operations,
       net of tax                                        -            14,423
      Loss from discontinued operations, net of
       tax                                               -              (107)
                                                       ---              ----
    Discontinued operations, net of tax                  -            14,316

    Net income                                      $6,901           $22,975
                                                    ======           =======

    Basic earnings per share:
        From continuing operations                   $0.58             $0.73
        From discontinued operations                    $-             $1.20
            Basic earnings per share                 $0.58             $1.93
                                                     -----             -----

    Diluted earnings per share:
        From continuing operations                   $0.56             $0.71
        From discontinued operations                    $-             $1.17
            Diluted earnings per share               $0.56             $1.88
                                                     -----             -----

         Basic weighted average shares outstanding  11,890            11,890
                                                    ======            ======
         Diluted weighted average shares
          outstanding                               12,303            12,219
                                                    ======            ======


                                   MICROSTRATEGY INCORPORATED
                                  CONSOLIDATED BALANCE SHEETS
                             (in thousands, except per share data)


                                           March 31,       December 31,
                                                     2010             2009
                                                     ----             ----
    Assets                                (unaudited)        (audited)
    Current assets
      Cash and cash equivalents                  $231,862         $224,769
      Restricted cash and investments               1,026              549
      Accounts receivable, net                     43,317           56,399
      Prepaid expenses and other
       current assets                              12,363           10,861
      Deferred tax assets, net                     12,778           12,642
                                                   ------           ------
    Total current assets                          301,346          305,220

    Property and equipment, net                    54,793           54,906
    Capitalized software development
     costs, net                                    11,724           13,431
    Deposits and other assets                       2,420            3,283
    Deferred tax assets, net                        5,214            6,490
                                                    -----            -----
    Total Assets                                 $375,497         $383,330
                                                 ========         ========

    Liabilities and Stockholders'
     Equity
    Current liabilities
      Accounts payable and accrued
       expenses                                   $23,414          $28,460
      Accrued compensation and employee
       benefits                                    30,306           46,277
      Deferred revenue and advance
       payments                                    96,680           77,783
      Deferred tax liabilities                        189              115
                                                      ---              ---
    Total current liabilities                     150,589          152,635

    Deferred revenue and advance
     payments                                       3,550            3,845
    Other long-term liabilities                    15,496           12,622
                                                   ------           ------

    Total Liabilities                             169,635          169,102
                                                  -------          -------

    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;
       14,305 shares issued and 9,088
        shares outstanding, and 14,302
        shares
       issued and 9,255 shares
        outstanding, respectively                      14               14
      Class B common stock, $0.001 par
       value; 165,000 shares
       authorized;
        2,694 shares issued and
         outstanding                                    3                3
      Additional paid-in capital                  453,248          453,170
      Treasury stock, at cost; 5,217
       and 5,047 shares, respectively            (380,744)        (366,191)
      Accumulated other comprehensive
       (loss) income                                 (188)             604
    Retained earnings                             133,529          126,628
    Total Stockholders' Equity                    205,862          214,228
                                                  -------          -------
    Total Liabilities and
     Stockholders' Equity                        $375,497         $383,330
                                                 ========         ========


                                MICROSTRATEGY INCORPORATED
                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      (in thousands)
                                        (unaudited)

                                                 Three Months Ended
                                                      March 31,
                                                      ---------
                                                  2010             2009
                                                  ----             ----

    Operating activities:
      Net income                                $6,901          $22,975
      Less:  Income from discontinued
       operations, net                               -          (14,316)
                                                   ---          -------
          Income from continuing operations      6,901            8,659
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
        Depreciation and amortization            3,182            1,770
        Bad debt expense                           691              222
        Deferred taxes                           1,162            2,823
        Excess tax benefits from stock-
         based payment arrangements                (12)               -
      Changes in operating assets and
       liabilities:
        Accounts receivable                     11,185            9,281
        Prepaid expenses and other current
         assets                                 (2,473)            (609)
        Deposits and other assets                  781              354
        Accounts payable and accrued
         expenses                               (4,435)          (1,651)
        Accrued compensation and employee
         benefits                              (15,276)         (14,677)
        Deferred revenue and advance
         payments                               20,293           16,960
        Other long-term liabilities              2,878              (23)
                                                 -----              ---
          Net cash provided by operating
           activities from continuing
           operations                           24,877           23,109
          Net cash used in operating
           activities from discontinued
           operations                                -             (472)
                                                   ---             ----
               Net cash provided by operating
                activities                      24,877           22,637
                                                ------           ------
    Investing activities:
      Purchases of property and equipment       (1,411)          (1,131)
      Capitalized software development
       costs                                         -           (4,218)
      Decrease in restricted cash and
       investments                                 275               23
                                                   ---              ---
          Net cash used in investing
           activities from continuing
           operations                           (1,136)          (5,326)
          Net cash provided by investing
           activities from discontinued
           operations                                -           24,546
                                                   ---           ------
               Net cash (used in) provided by
                investing activities            (1,136)          19,220
                                                ------           ------
    Financing activities:
      Proceeds from sale of class A common
       stock under exercise of employee
       stock options                                60               19
      Excess tax benefits from stock-
       based payment arrangements                   12                -
      Purchases of treasury stock              (14,553)               -
      Distribution to Alarm.com minority
       shareholders                                  -              (60)
                                                   ---              ---
          Net cash used in financing
           activities from continuing
           operations                          (14,481)             (41)
          Net cash provided by financing
           activities from discontinued
           operations                                -                -
                                                   ---              ---
               Net cash used in financing
                activities                     (14,481)             (41)
          Effect of foreign exchange rate
           changes on cash and cash
           equivalents                          (2,167)          (2,538)
                                                ------           ------
    Net increase in cash and cash
     equivalents                                 7,093           39,278
    Cash and cash equivalents, beginning
     of period                                 224,769          122,915
                                               -------          -------
    Cash and cash equivalents, end of
     period                                   $231,862         $162,193
                                              ========         ========



    Contact:
    MicroStrategy Incorporated
    Investor Relations
    ir@microstrategy.com
    (703) 848-8600



SOURCE MicroStrategy Incorporated

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