MicroStrategy Announces Third Quarter 2013 Financial Results
Third quarter 2013 revenues were
Operating expenses for the third quarter of 2013 were
Income from continuing operations for the third quarter of 2013 was
Non-GAAP income from continuing operations, which excludes share-based compensation expense, was
For the third quarter of 2013,
As of
The table at the end of this press release includes a reconciliation of income from continuing operations to non-GAAP income from continuing operations for the three and nine months ended
MicroStrategy Announces the New MicroStrategy Analytics Platform™
This month,
- MicroStrategy Analytics Enterprise™ (Enterprise-grade business intelligence)
- MicroStrategy Analytics Desktop™ (Free self-service visual analytics tool)
- MicroStrategy Analytics Express™ (Free Cloud-based self-service visual analytics)
Together, these products support a full spectrum of business needs with maximum flexibility and affordability, running at individual, team, departmental, or enterprise-scale, can be delivered as a desktop application, on the web or mobile devices, support high performance analytics on gigabytes, terabytes, or petabytes of data, and can be deployed on-premises or up to 100x more quickly in the MicroStrategy Cloud™. The three MicroStrategy Analytics Platform products also share a common user experience — making it easy to start small with self-service analytics and grow into the production-grade features of Enterprise.
"We are thrilled to introduce our powerful, new Desktop product, which we have made easy to download and freely available to all users at www.microstrategy.com," said
MicroStrategy Launches MicroStrategy Analytics Desktop™
As part of the new MicroStrategy Analytics Platform,
- Access Data. Users can quickly connect to data from any source. Users can pull data from Excel files, relational databases, multi-dimensional databases, cloud-based applications and even Hadoop — all without writing a single line of scripting or SQL code. And, unlike pricey data visualization solutions that charge even more to access data from databases, with MicroStrategy Analytics Desktop, it is all included for free.
- Visualize. Business users can quickly illuminate the story in their data by creating beautiful, impactful data visualizations. With just a few clicks, these brilliant visualizations — from basic pie graphs to advanced matrices, networks and maps — bring the underlying data to life. MicroStrategy Analytics Desktop is powered by
MicroStrategy's lightning-fast in-memory database technology — the same technology behind some of the world's largest business intelligence implementations, but in a package now easily accessible to everyone. - Build Dashboards. Building dashboards has never been faster or easier. Users simply drag-and-drop to arrange multiple visualizations in a dashboard to convey a story. Users can also blend/combine data from different sources to create new metrics and data views. No IT needed.
- Share. Users can share insights by exporting and sending their dashboard as an image, a PDF file, or a full MicroStrategy Analytics Desktop file. It has never been easier to creatively share and experience visual insight from data.
"MicroStrategy Analytics Desktop represents an extraordinary advance in analytics and BI because it allows users to connect to data, create compelling visualizations, and share those insights within minutes, all without IT assistance," said
MicroStrategy Wins Multiple Stevie® Awards at 2013 American Business Awards
In
MicroStrategy Analytics Platform Certified for Integration with SAP HANA®
In
With this integration, business users can quickly and easily transform data in SAP HANA into visually insightful dashboards, reports, and data discovery applications. Companies can unlock the business value of big data assets using MicroStrategy Analytics Platform's advanced data visualization capabilities, custom reporting, and interactive dashboards.
"SAP HANA is used as the centralized source of truth at Adobe," said
"We are delighted that the MicroStrategy Analytics Platform has achieved certified integration with the SAP HANA platform," said
Through integration with SAP HANA, the MicroStrategy Analytics Platform allows organizations to:
- Easily transform data in SAP HANA into visually appealing dashboards, insightful reports, and data discovery applications,
- Quickly build native mobile apps fueled by data in SAP HANA,
- Leverage push-down analytics to gain maximum performance with SAP HANA, and
- Transparently capitalize on existing investments in security infrastructure from SAP.
MicroStrategy Positioned in the "Challengers" Quadrant of the 2013 Magic Quadrant for Mobile Application Development Platforms
In
"We are extremely pleased that our MicroStrategy Mobile App platform has been placed in the Gartner Magic Quadrant," said
For six consecutive years, Gartner has positioned
A copy of the Gartner report is available, compliments of
Examples of Customer Deals from Q3 2013:
- Sherwin-Williams
The Sherwin-Williams Company, founded in 1866, is an American Fortune 500 and is one of the world's leading companies in the manufacture, distribution and sale of coatings and related products to professional, industrial, commercial and retail customers. A recent addition ofMicroStrategy licenses will allow Sherwin-Williams to expand the MicroStrategy Mobile Platform to its Global Sales and Retail Store Analytics. Sherwin-Williams will deploy MicroStrategy Mobile to analyze sales, customer, and product information stored across several data sources, react to anomalies, and gain visibility to daily performance KPIs directly from their Mobile devices. Sherwin-Williams choseMicroStrategy for its platform's ease-of-use, self-service analytics, scalability, and mobile leadership. Herkel BV
Herkel is aNetherlands -based leading manufacturer of nutritional supplements, sensory, olfactory, pharmaceutical, and cosmetic products. Herkel selectedMicroStrategy as its enterprise analytics platform to better understand and react to changes across its financial, operational, supply chain, and sales departments. With MicroStrategy, Herkel senior management will have better and faster insight into the performance of its operations. In selectingMicroStrategy over other analytics products, Herkel cited outstanding platform architecture and product capabilities, mobile leadership, ease of use, performance, and scalability.Senheng Electric
Senheng® was first established in 1989 and is one of the leading electronics chain stores inMalaysia today, with 135 stores in operation throughout the country. Senheng selected the MicroStrategy Analytics Platform to analyze its sales, consumer, inventory, and supply chain operations, and will be extensively used by its senior management team, divisional and departmental heads, and store managers.MicroStrategy was selected for its scalability, robustness, ease of use, and comprehensive analytics and mobile architecture.- PT Bank OCBC NISP
PT Bank OCBC NISP, a subsidiary of Singapore-basedOCBC Bank , is one ofIndonesia's oldest financial institutions with more than 70 years in operation. Headquartered inJakarta , PT Bank OCBC NISP has a network of 380 offices located in 76 cities across Indonesia. A customer since 2011, the finance department at PT Bank OCBC NISP has been using the MicroStrategy Analytics Platform and the MicroStrategy Mobile Platform, and has enjoyed a code-free, intuitive design environment which allowed its IT team to easily create customized mobile apps for its business users. A recent expansion ofMicroStrategy licenses will provide additional dashboard and reporting capabilities to its Board of Directors and C-level executives.MicroStrategy was chosen by the bank's business users for the platform's ease of use and positive user experience.
Non-GAAP Financial Measure
About
Founded in 1989,
The MicroStrategy Analytics Platform™ enables leading organizations to analyze vast amounts of data and distribute actionable business insight throughout the enterprise. Our analytics platform delivers reports and dashboards, and enables users to conduct ad hoc analysis and share their insights anywhere, anytime. MicroStrategy Mobile™ lets organizations rapidly build information-rich applications that combine multimedia, transactions, analytics, and custom workflows. The MicroStrategy Identity Platform™ (branded as MicroStrategy Usher™) provides organizations the ability to develop a secure mobile app for identity and credentials. The MicroStrategy Loyalty Platform™ (branded as MicroStrategy Alert) is a next-generation, mobile customer loyalty and engagement solution. To learn more about
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
MSTR-F
Contact:
Investor Relations
ir@microstrategy.com
(703) 848-8600
| ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in thousands, except per share data) | ||||||||
Three Months Ended |
Nine months Ended | |||||||
|
| |||||||
2013 |
2012 |
2013 |
2012 | |||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) | |||||
Revenues |
||||||||
Product licenses |
$ 33,753 |
$ 31,736 |
$ 92,726 |
$ 101,079 | ||||
Product support and other services |
108,166 |
104,344 |
317,281 |
308,659 | ||||
Total revenues |
141,919 |
136,080 |
410,007 |
409,738 | ||||
Cost of revenues |
||||||||
Product licenses |
1,336 |
1,059 |
4,550 |
4,187 | ||||
Product support and other services |
31,917 |
33,788 |
101,050 |
100,450 | ||||
Total cost of revenues |
33,253 |
34,847 |
105,600 |
104,637 | ||||
Gross profit |
108,666 |
101,233 |
304,407 |
305,101 | ||||
Operating expenses |
||||||||
Sales and marketing |
50,798 |
49,551 |
154,198 |
153,385 | ||||
Research and development |
21,977 |
21,920 |
72,021 |
63,111 | ||||
General and administrative |
24,265 |
22,460 |
77,271 |
69,192 | ||||
Total operating expenses |
97,040 |
93,931 |
303,490 |
285,688 | ||||
Income from continuing operations |
11,626 |
7,302 |
917 |
19,413 | ||||
Interest income, net |
80 |
41 |
463 |
93 | ||||
Other (expense) income, net |
(3,213) |
(112) |
(1,924) |
764 | ||||
Income (loss) from continuing operations before income taxes |
8,493 |
7,231 |
(544) |
20,270 | ||||
(Benefit from) provision for income taxes |
(8,653) |
2,097 |
(10,946) |
6,147 | ||||
Income from continuing operations, net of tax |
17,146 |
5,134 |
10,402 |
14,123 | ||||
Discontinued operations |
||||||||
Gain from sale of discontinued operations, net of tax provision ( |
||||||||
|
- |
- |
57,377 |
- | ||||
Loss from discontinued operations, net of tax benefit ( |
||||||||
|
- |
(371) |
(595) |
(1,817) | ||||
Discontinued operations, net of tax |
- |
(371) |
56,782 |
(1,817) | ||||
Net income |
$ 17,146 |
$ 4,763 |
$ 67,184 |
$ 12,306 | ||||
Basic earnings (loss) per share (1): |
||||||||
From continuing operations |
$ 1.52 |
$ 0.46 |
$ 0.92 |
$ 1.30 | ||||
From discontinued operations |
- |
(0.03) |
5.03 |
(0.17) | ||||
Basic earnings per share |
$ 1.52 |
$ 0.43 |
$ 5.95 |
$ 1.13 | ||||
Weighted average shares outstanding used in computing basic earnings (loss) per share |
11,301 |
11,050 |
11,299 |
10,911 | ||||
Diluted earnings (loss) per share (1): |
||||||||
From continuing operations |
$ 1.52 |
$ 0.46 |
$ 0.92 |
$ 1.26 | ||||
From discontinued operations |
- |
(0.03) |
5.03 |
(0.16) | ||||
Diluted earnings per share |
$ 1.52 |
$ 0.43 |
$ 5.95 |
$ 1.10 | ||||
Weighted average shares outstanding used in computing diluted earnings (loss) per share |
11,301 |
11,197 |
11,300 |
11,137 | ||||
(1) Basic and fully diluted earnings (loss) per share for class A and class B common stock are the same. |
| ||||
CONSOLIDATED BALANCE SHEETS | ||||
(in thousands, except per share data) | ||||
|
| |||
2013 |
2012* | |||
Assets |
(unaudited) |
|||
Current assets |
||||
Cash and cash equivalents |
$ 163,777 |
$ 223,043 | ||
Restricted cash |
194 |
50 | ||
Short-term investments |
180,171 |
36 | ||
Accounts receivable, net |
62,869 |
89,038 | ||
Prepaid expenses and other current assets |
13,597 |
12,689 | ||
Deferred tax assets, net |
21,038 |
26,616 | ||
Assets held-for-sale |
- |
10,571 | ||
Total current assets |
441,646 |
362,043 | ||
Property and equipment, net |
89,165 |
96,751 | ||
Capitalized software development costs, net |
11,896 |
10,360 | ||
Deposits and other assets |
6,882 |
5,120 | ||
Deferred tax assets, net |
3,088 |
3,664 | ||
Total Assets |
$ 552,677 |
$ 477,938 | ||
Liabilities and Stockholders' Equity |
||||
Current liabilities |
||||
Accounts payable and accrued expenses |
$ 36,864 |
$ 40,905 | ||
Accrued compensation and employee benefits |
64,450 |
71,789 | ||
Deferred revenue and advance payments |
117,785 |
101,249 | ||
Deferred tax liabilities |
336 |
523 | ||
Liabilities held-for-sale |
- |
4,689 | ||
Total current liabilities |
219,435 |
219,155 | ||
Deferred revenue and advance payments |
9,131 |
8,823 | ||
Other long-term liabilities |
26,602 |
43,418 | ||
Deferred tax liabilities |
5,427 |
6,231 | ||
Total Liabilities |
260,595 |
277,627 | ||
Stockholders' Equity |
||||
Preferred stock undesignated, |
||||
no shares issued or outstanding |
- |
- | ||
Class A common stock, |
||||
15,478 shares issued and 9,073 shares outstanding, and 15,462 shares |
||||
issued and 9,057 shares outstanding, respectively |
15 |
15 | ||
Class B common stock, |
||||
2,227 shares issued and outstanding, and 2,227 shares issued and outstanding, respectively |
2 |
2 | ||
Additional paid-in capital |
492,453 |
468,087 | ||
Treasury stock, at cost; 6,405 shares |
(475,184) |
(475,184) | ||
Accumulated other comprehensive loss |
(1,294) |
(1,515) | ||
Retained earnings |
276,090 |
208,906 | ||
Total Stockholders' Equity |
292,082 |
200,311 | ||
Total Liabilities and Stockholders' Equity |
$ 552,677 |
$ 477,938 | ||
*Derived from audited financial statements. |
| |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
Nine Months Ended | |||||||
| |||||||
2013 |
2012 | ||||||
(unaudited) |
(unaudited) | ||||||
Operating activities: |
|||||||
Net income |
$ 67,184 |
$ 12,306 | |||||
Plus: (Income) loss from discontinued operations, net of tax |
(56,782) |
1,817 | |||||
Income from continuing operations, net of tax |
10,402 |
14,123 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
19,620 |
16,197 | |||||
Bad debt expense |
3,402 |
4,822 | |||||
Deferred taxes |
(4,035) |
2,239 | |||||
Release of liabilities for unrecognized tax benefits |
(14,145) |
- | |||||
Share-based compensation expense |
444 |
- | |||||
Excess tax benefits from share-based compensation arrangements |
(23,580) |
- | |||||
Other, net |
(36) |
- | |||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
22,389 |
15,131 | |||||
Prepaid expenses and other current assets |
88 |
(2,107) | |||||
Deposits and other assets |
503 |
539 | |||||
Accounts payable and accrued expenses |
(8,008) |
2,422 | |||||
Accrued compensation and employee benefits |
(6,908) |
(6,402) | |||||
Deferred revenue and advance payments |
17,723 |
(2,090) | |||||
Other long-term liabilities |
(2,606) |
(1,427) | |||||
Net cash provided by operating activities from continuing operations |
15,253 |
43,447 | |||||
Net cash used in operating activities from discontinued operations |
(664) |
(2,260) | |||||
Net cash provided by operating activities |
14,589 |
41,187 | |||||
Investing activities: |
|||||||
Proceeds from redemption of short-term investments |
29,000 |
- | |||||
Purchases of property and equipment |
(10,019) |
(26,884) | |||||
Purchases of short-term investments |
(209,115) |
- | |||||
Capitalized software development costs |
(5,414) |
(8,148) | |||||
Insurance proceeds |
- |
3,206 | |||||
(Increase) decrease in restricted cash and investments |
(97) |
74 | |||||
Net cash used in investing activities from continuing operations |
(195,645) |
(31,752) | |||||
Net cash provided by (used in) investing activities from discontinued operations |
99,136 |
(1,127) | |||||
Net cash used in investing activities |
(96,509) |
(32,879) | |||||
Financing activities: |
|||||||
Proceeds from sale of class A common stock under exercise of employee stock options |
341 |
8,957 | |||||
Excess tax benefits from share-based compensation arrangements |
23,580 |
- | |||||
Payments on capital lease obligations and other financing arrangements |
(2,037) |
(256) | |||||
Net cash provided by financing activities from continuing operations |
21,884 |
8,701 | |||||
Net cash provided by financing activities from discontinued operations |
- |
- | |||||
Net cash provided by financing activities |
21,884 |
8,701 | |||||
Effect of foreign exchange rate changes on cash and cash equivalents |
(580) |
(34) | |||||
Net (decrease) increase in cash and cash equivalents |
(60,616) |
16,975 | |||||
Cash and cash equivalents (including held-for-sale of |
224,393 |
199,634 | |||||
Cash and cash equivalents (including held-for-sale of |
$ 163,777 |
$ 216,609 |
| |||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||||
(in thousands, except per share data) | |||||||||
Three Months Ended |
Nine months Ended | ||||||||
|
| ||||||||
2013 |
2012 |
2013 |
2012 | ||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) | ||||||
Reconciliation of non-GAAP income from continuing operations: |
|||||||||
Income from continuing operations |
$ 11,626 |
$ 7,302 |
$ 917 |
$ 19,413 | |||||
Share-based compensation expense |
444 |
- |
444 |
- | |||||
Non-GAAP income from continuing operations |
$ 12,070 |
$ 7,302 |
$ 1,361 |
$ 19,413 |
SOURCE
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