MicroStrategy (MSTR) 8-K Third Quarter 2009 Financial Results

Exhibit 99.1

Contact:

MicroStrategy Incorporated

Investor Relations

ir@microstrategy.com

(703) 848-8600

MicroStrategy Announces

Third Quarter 2009 Financial Results

39% Increase in License Revenue Year-Over-Year

Diluted Earnings Per Share of $1.73

MCLEAN, Va., October 29, 2009 - MicroStrategy^® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced financial results for the three-month period ended September 30, 2009 (the third quarter of its 2009 fiscal year).

Third quarter 2009 revenues were $104.0 million versus $90.6 million for the third quarter of 2008, a 15% increase. Product licenses revenues for the third quarter of 2009 were $34.4 million versus $24.8 million for the third quarter of 2008, a 39% increase. Product support and other services revenues for MicroStrategy’s core business intelligence (BI) business in the third quarter of 2009 were $65.7 million versus $63.2 million for the third quarter of 2008, a 4% increase.

Operating expenses for the third quarter of 2009 were $57.1 million versus $56.6 million for the third quarter of 2008, a 1% increase. During the third quarter of 2008, MicroStrategy capitalized $5.2 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 before financing and other income and income taxes for the third quarter of 2009 was $30.4 million, or 29% of revenue, versus $17.3 million, or 19% of revenue, for the third quarter of 2008, a 75% increase. Net income for the third quarter of 2009 was $21.4 million, or $1.73 per share on a diluted basis, compared to $11.1 million, or $0.90 per share on a diluted basis, for the third quarter of 2008, a 92% increase.

As of September 30, 2009, MicroStrategy had cash and cash equivalents of approximately $200.7 million versus $122.9 million as of December 31, 2008, an increase of $77.8 million. As of September 30, 2009, MicroStrategy had 9,144,581 shares of class A common stock and 2,770,244 shares of class B common stock outstanding.

New Customers and New Deals with Existing Customers in Q3 2009 Included:

Aeropostale; Air National Guard; Amica Mutual Insurance; Bell Canada; The Bon-Ton Stores; Burlington Coat Factory; Centers for Medicare and Medicaid Services; Charming Shoppes; Chevron Products Company; DineEquity; Discovery Communications; Electronic Arts; The First American Corporation; Foresters; Franklin Templeton Companies; Fraser Health Authority; Freddie Mac; Grange Insurance; GUESS?; Harris Teeter; JC Penney; Kohl’s Department Stores; Limited Brands; McAfee; Merkle; Michaels Stores; National Institutes of Health (NIH); Netflix; NTT America; Nu Skin Enterprises; Payless ShoeSource; PHI Service Company; PPL Services Corporation; Ross Stores; SDI; Tesco Group; Transportation Security Administration; Universal Music Group; Urban Outfitters; US Department of State; Warner Bros. Entertainment; The William Carter Company; Yum! Brands

Examples of Customer Deals from Q3 2009:

Grange Insurance

Grange Insurance, with $2 billion in assets and $1.3 billion in annual revenue, is an insurance provider based in Columbus, Ohio, and has been a MicroStrategy customer since 2001. MicroStrategy supports 15 BI applications at Grange for various operational functions, including agency analysis and risk pool business analysis. Grange will be expanding its use of MicroStrategy to leverage Distribution Services, a new product introduced in the MicroStrategy 9 BI platform, to provide high-volume, high-performance, automated report distribution. With the new capabilities, Grange expects to notify adjusters with critical information in order to reduce claim cycle time and better monitor their business.

NTT America, Inc.

NTT America, Inc., the U.S. subsidiary of NTT Communications Corporation, recently expanded its deployment of MicroStrategy to enhance its financial reporting and provide visibility throughout the enterprise. NTT America executives and managers use MicroStrategy information dashboards for at-a-glance insights into financial reports to help the company improve budget allocations, utilize resources more efficiently, and address other critical financial metrics to improve their business.

Tesco Group

UK-based retailer Tesco Group, with over 465,000 employees and 4,226 stores operating in 14 markets across Europe, Asia, and North America, has invested in the MicroStrategy Business Intelligence Platform^TM to deliver enterprise-wide BI across their operations. Tesco plans to use MicroStrategy to deliver head office analytics and self-service BI, including in-store dashboards across its enterprise. Following a rigorous selection process, Tesco chose MicroStrategy for its lower total cost of ownership and reduced carbon foot-print compared to previous solutions, as MicroStrategy demonstrated that it was able to run on fewer servers and make more efficient use of Tesco’s existing data warehouse platform.

Gartner Publishes MicroStrategy SWOT Report:

Gartner, Inc. recently published the report, “SWOT: MicroStrategy, Business Intelligence Platforms, Worldwide.”According to Gartner, MicroStrategy is one of the leading business intelligence (BI) platform vendors. This document offers a strength, weakness, opportunity, and threat (SWOT) framework for assessing the MicroStrategy 9 BI Platform and related offerings. A copy of the Gartner report is available, compliments of MicroStrategy, athttp://www.microstrategy.com/gartnerswot.

MicroStrategy 9 Certified on VMware Virtualization Platform:

MicroStrategy announced that customers can now deploy MicroStrategy 9 BI applications on VMware-based virtual machines, enabling BI applications to achieve the hardware efficiencies, streamlined operations, and low cost of operation available through virtualization. Virtual machine technology allows companies to increase processing capacity from their servers by pooling that capacity across multiple

applications and operating systems. Large BI applications that have varying usage throughout the day will benefit from a virtual environment where processing power can be fully utilized during peak times and directed to other applications when BI demand is low.

By running MicroStrategy in a virtual environment, companies will be able to use less server hardware and require fewer IT personnel to manage and maintain their BI systems, leading to overall lower capital costs and reduced operating expenses. To try MicroStrategy 9 Evaluation software on VMware, visithttp://www.microstrategy.com/freeevalcd.asp.

MicroStrategy Augments OEM Program with New Product Capabilities for SaaS Companies:

MicroStrategy has enhanced its OEM program with new product capabilities for Software-as-a-Service (SaaS) companies. MicroStrategy 9 offers new capabilities specifically for SaaS companies, including enhanced end user design features, in-memory BI enabling higher data scalability to support larger multi-tenant systems, improved security integration with third-party tools, a plug-in architecture for simpler customization, and the ability for different companies to use their own reporting terminology, even across multiple languages within the same multi-tenant application.

MicroStrategy’s business intelligence platform provides integrated reporting and analytics, allowing software companies and technology providers to easily add reporting, dashboarding, and analytical and alerting applications to their existing product offerings with minimal development costs and resources. MicroStrategy’s portfolio of OEM partners has continued to expand, and companies choosing MicroStrategy for SaaS BI deployments have represented the largest area of growth within the Company’s OEM program.

MicroStrategy Events:

On October 28, 2009, MicroStrategy hosted a live Webcast, “Top 5 Strategies for Business Intelligence Success in Today’s Economic Environment.” The Webcast featured best practices for rapid BI reporting for small to mid-sized businesses, along with a live demo of MicroStrategy Reporting Suite^TM and insights from leading industry analyst Cindi Howson. Launched earlier this year, MicroStrategy Reporting Suite enables companies to use MicroStrategy’s integrated BI platform to develop and deploy premium, Web-based reporting applications, at no cost. MicroStrategy Reporting Suite has eliminated cost and time impediments for departments and workgroups to initiate new reporting applications. More information is available athttp://www.microstrategy.com/freereportingsoftware.

MicroStrategy held numerous Business Intelligence Symposia during the third quarter, and has several more planned in the fourth quarter at various locations including the following: Lisbon, Sydney, Paris, Melbourne, Milan, and Johannesburg.

The Company’s 13th annual user conference, MicroStrategy World 2010, will be held January 25-28, 2010 at the Wynn Las Vegas in Las Vegas, Nevada. The event will feature more than 100 educational sessions, dozens of customer speakers from industry-leading organizations, and an exhibit hall showcasing MicroStrategy partners. MicroStrategy World 2010 will also include an update on the Company’s latest technology advances, insightful keynote presentations, and networking opportunities.

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 advanced technical capabilities, sophisticated analytics, and superior data and user scalability. More information about MicroStrategy (NASDAQ: MSTR) is available atwww.microstrategy.com.

MicroStrategy, MicroStrategy 9, MicroStrategy Reporting Suite, MicroStrategy Business Intelligence Platform and MicroStrategy Distribution Services 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 deferred revenue through delivery of products or satisfactory performance of services; 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; 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.

MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2009			2008		2009			2008
	(unaudited)			(unaudited)		(unaudited)			(unaudited)
Revenues
Product licenses	$	34,443		$	24,787	$	71,897		$	67,966
Product support and other services		69,574			65,841		200,120			197,422
Total revenues		104,017			90,628		272,017			265,388
Cost of Revenues
Product licenses		1,947			422		4,523			1,442
Product support and other services		14,592			16,304		42,614			45,898
Total cost of revenues		16,539			16,726		47,137			47,340
Gross profit		87,478			73,902		224,880			218,048
Operating Expenses
Sales and marketing		31,489			35,888		93,376			100,060
Research and development		11,400			5,922		30,407			24,449
General and administrative		14,204			14,744		41,348			47,055
Total operating expenses		57,093			56,554		165,131			171,564
Income from continuing operations before financing and other income and income taxes		30,385			17,348		59,749			46,484
Financing and Other (Expense) Income
Interest income, net		121			623		516			2,081
Other (expense) income, net		(422	)		694		(1,626	)		(269	)
Total financing and other (expense) income		(301	)		1,317		(1,110	)		1,812
Income from continuing operations before income taxes		30,084			18,665		58,639			48,296
Provision for income taxes		8,730			7,593		18,673			20,365
Income from continuing operations		21,354			11,072		39,966			27,931
Discontinued operations:
Gain from sale of discontinued operations, net of tax provision ($11,190 and $0, respectively)		—			—		14,437			—
Income (loss) from discontinued operations, net of tax provision (benefit) ($0 and $53, for the three months ended, respectively, and ($54) and $176 for the nine months ended, respectively)		—			52		(107	)		(383	)
Discontinued operations, net of tax		—			52		14,330			(383	)
Net Income	$	21,354		$	11,124	$	54,296		$	27,548
Basic earnings (loss) per share (1):
From continuing operations	$	1.79		$	0.93	$	3.36		$	2.35
From discontinued operations	$	—		$	0.01	$	1.20		$	(0.03	)
Basic earnings per share	$	1.79		$	0.94	$	4.56		$	2.32
Weighted average shares outstanding used in computing basic earnings per share		11,909			11,887		11,898			11,890
Diluted earnings (loss) per share (1):
From continuing operations	$	1.73		$	0.90	$	3.26		$	2.26
From discontinued operations	$	—		$	—	$	1.17		$	(0.03	)
Diluted earnings per share	$	1.73		$	0.90	$	4.43		$	2.23
Weighted average shares outstanding used in computing diluted earnings per share		12,311			12,306		12,262			12,332

(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 Ended					Three Months Ended						Three Months Ended
	September 30,					September 30,						September 30,
	2009			2008		2009			2008			2009			2008
Revenues
Product licenses	$	34,443		$	24,787	$	—		$	—		$	34,443		$	24,787
Product support and other services		65,721			63,153		—			—			65,721			63,153
Angel.com services		—			—		3,853			2,688			3,853			2,688
Total revenues		100,164			87,940		3,853			2,688			104,017			90,628
Cost of Revenues
Product licenses		1,947			422		—			—			1,947			422
Product support and other services		13,048			15,908		—			—			13,048			15,908
Angel.com services		—			—		1,544			396			1,544			396
Total cost of revenues		14,995			16,330		1,544			396			16,539			16,726
Gross profit		85,169			71,610		2,309			2,292			87,478			73,902
Operating Expenses
Sales and marketing		30,364			33,767		1,125			2,121			31,489			35,888
Research and development		10,443			5,234		957			688			11,400			5,922
General and administrative		13,817			14,679		387			65	(a)		14,204			14,744
Total operating expenses		54,624			53,680		2,469			2,874			57,093			56,554
Income (loss) from continuing operations before financing and other income and income taxes		30,545			17,930		(160	)		(582	)		30,385			17,348
Financing and Other (Expense) Income
Interest income, net		121			623		—			—			121			623
Other (expense) income, net		(422	)		694		—			—			(422	)		694
Total financing and other (expense) income		(301	)		1,317		—			—			(301	)		1,317
Income (loss) from continuing operations before income taxes	$	30,244		$	19,247	$	(160	)	$	(582	)	$	30,084		$	18,665
Provision for income taxes													8,730			7,593
Income from continuing operations													21,354			11,072
Discontinued operations:
Income from discontinued operations, net of tax													—			52
Discontinued operations, net of tax													—			52
Net income												$	21,354		$	11,124
Basic earnings per share:
From continuing operations												$	1.79		$	0.93
From discontinued operations												$	—		$	0.01
Basic earnings per share												$	1.79		$	0.94
Diluted earnings per share:
From continuing operations												$	1.73		$	0.90
From discontinued operations												$	—		$	—
Diluted earnings per share												$	1.73		$	0.90
Basic weighted average shares outstanding													11,909			11,887
Diluted weighted average shares outstanding													12,311			12,306

(a) An insignificant amount of general and administrative services was provided to the Angel.com business unit by MicroStrategy’s core business operations during the three months ended September 30, 2008.

MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Core BI Business						Angel.com						Consolidated
	Nine Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,
	2009			2008			2009			2008			2009			2008
Revenues
Product licenses	$	71,897		$	67,966		$	—		$	—		$	71,897		$	67,966
Product support and other services		190,451			189,629			—			—			190,451			189,629
Angel.com services		—			—			9,669			7,793			9,669			7,793
Total revenues		262,348			257,595			9,669			7,793			272,017			265,388
Cost of Revenues
Product licenses		4,523			1,442			—			—			4,523			1,442
Product support and services revenues		38,780			44,602			—			—			38,780			44,602
Angel.com services		—			—			3,834			1,296			3,834			1,296
Total cost of revenues		43,303			46,044			3,834			1,296			47,137			47,340
Gross profit		219,045			211,551			5,835			6,497			224,880			218,048
Operating Expenses
Sales and marketing		90,012			93,962			3,364			6,098			93,376			100,060
Research and development		27,582			22,229			2,825			2,220			30,407			24,449
General and administrative		40,077			46,840			1,271			215	(a)		41,348			47,055
Total operating expenses		157,671			163,031			7,460			8,533			165,131			171,564
Income (loss) from continuing operations before financing and other income and income taxes		61,374			48,520			(1,625	)		(2,036	)		59,749			46,484
Financing and Other (Expense) Income
Interest income, net		516			2,081			—			—			516			2,081
Other expense, net		(1,626	)		(269	)		—			—			(1,626	)		(269	)
Total financing and other (expense) income		(1,110	)		1,812			—			—			(1,110	)		1,812
Income (loss) from continuing operations before income taxes	$	60,264		$	50,332		$	(1,625	)	$	(2,036	)	$	58,639		$	48,296
Provision for income taxes														18,673			20,365
Income from continuing operations														39,966			27,931
Discontinued operations:
Gain from sale of discontinued operations, net of tax														14,437			—
Loss from discontinued operations, net of tax														(107	)		(383	)
Discontinued operations, net of tax														14,330			(383	)
Net income													$	54,296		$	27,548
Basic earnings (loss) per share:
From continuing operations													$	3.36		$	2.35
From discontinued operations													$	1.20		$	(0.03	)
Basic earnings per share													$	4.56		$	2.32
Diluted earnings (loss) per share:
From continuing operations													$	3.26		$	2.26
From discontinued operations													$	1.17		$	(0.03	)
Diluted earnings per share													$	4.43		$	2.23
Basic weighted average shares outstanding														11,898			11,890
Diluted weighted average shares outstanding														12,262			12,332

(a) An insignificant amount of general and administrative services was provided to the Angel.com business unit by MicroStrategy’s core business operations during the nine months ended September 30, 2008.

MICROSTRATEGY INCORPORATED

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

	September 30,			December 31,
	2009			2008
	(unaudited)			(audited)
Assets
Current assets
Cash and cash equivalents	$	200,670		$	122,915
Restricted cash and investments		321			619
Accounts receivable, net		56,010			49,670
Prepaid expenses and other current assets		10,145			9,518
Deferred tax assets, net		14,857			26,743
Assets held-for-sale		—			4,964
Total current assets		282,003			214,429
Property and equipment, net		7,220			8,978
Capitalized software development cost, net		15,161			14,823
Deposits and other assets		36,414			36,804
Deferred tax assets, net		5,767			17,105
Total Assets	$	346,565		$	292,139
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable and accrued expenses	$	26,191		$	27,697
Accrued compensation and employee benefits		39,607			42,634
Deferred revenue and advance payments		73,045			66,495
Deferred tax liabilities		556			—
Liabilities held-for-sale		—			6,325
Total current liabilities		139,399			143,151
Deferred revenue and advance payments		3,848			1,679
Other long-term liabilities		10,869			9,268
Total Liabilities		154,116			154,098
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; 14,192 shares issued and 9,145 shares outstanding, and 14,167 shares issued and 9,120 shares outstanding, respectively		14			14
Class B common stock, $0.001 par value; 165,000 shares authorized; 2,770 issued and outstanding		3			3
Additional paid-in capital		451,705			450,953
Treasury stock, at cost; 5,047 shares		(366,191	)		(366,191	)
Accumulated other comprehensive income		831			1,471
Retained earnings		106,087			51,791
Total Stockholders’ Equity		192,449			138,041
Total Liabilities and Stockholders’ Equity	$	346,565		$	292,139

MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months Ended
	September 30,
	2009			2008
Operating activities:
Net income	$	54,296		$	27,548
Plus: (Income) loss from discontinued operations, net		(14,330	)		383
Income from continuing operations		39,966			27,931
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,681			4,825
Bad debt expense		1,153			1,074
Deferred taxes		14,294			13,655
Stock-based compensation		—			45
Excess tax benefits from stock-based payment arrangements		(200	)		(241	)
Other, net		(10	)		49
Changes in operating assets and liabilities:
Accounts receivable		(7,900	)		3,617
Prepaid expenses and other current assets		(445	)		176
Deposits and other assets		254			(218	)
Accounts payable and accrued expenses		(1,948	)		2,034
Accrued compensation and employee benefits		(4,224	)		(1,740	)
Deferred revenue and advance payments		7,085			6,071
Other long-term liabilities		1,572			568
Net cash provided by operating activities from continuing operations		57,278			57,846
Net cash (used in) provided by operating activities from discontinued operations		(472	)		1,399
Net cash provided by operating activities		56,806			59,245
Investing activities:
Purchases of property and equipment		(1,860	)		(2,972	)
Capitalized software development costs		(4,218	)		(8,078	)
Decrease in restricted cash and investments		504			1,062
Net cash used in investing activities from continuing operations		(5,574	)		(9,988	)
Net cash provided by (used in) investing activities from discontinued operations		24,546			(158	)
Net cash provided by (used in) investing activities		18,972			(10,146	)
Financing activities:
Distribution to Alarm.com minority shareholders		(60	)		—
Proceeds from sale of class A common stock under exercise of employee stock options		565			2,073
Excess tax benefits from stock-based payment arrangements		200			241
Purchases of treasury stock		—			(8,387	)
Net cash provided by (used in) financing activities from continuing operations		705			(6,073	)
Net cash provided by financing activities from discontinued operations		—			—
Net cash provided by (used in) financing activities		705			(6,073	)
Effect of foreign exchange rate changes on cash and cash equivalents		1,272			(933	)
Net increase in cash and cash equivalents		77,755			42,093
Cash and cash equivalents, beginning of period		122,915			85,194
Cash and cash equivalents, end of period	$	200,670		$	127,287