MSTR - Earnings call transcript Q1 2018 | MicroStrategy Incorporated

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Operator

Good day, ladies and gentlemen and welcome to the MicroStrategy Q1 2018 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Michael Saylor, Chairman, President and CEO of MicroStrategy. begin. may you Sir,

Michael Saylor

quarter Michael MicroStrategy. am all I’d conference XXXX to is our here and Phong CFO, of Chairman, CEO today’s Le. first our regarding of like call results. Saylor. This I’m the with I President you financial Hello. to welcome

is the and like comments make to who on floor first the read our to the I’d to Safe for quarter. some First, Phong, results pass going Harbor statement

Phong Le

relied may everyone. various important of statements Act discussed Thank our the developments those Form views filed We with make forward-looking Quarterly may the you, we our reflect any events subsequent good and differ remarks as prospects SEC. to company’s about recent today forward-looking cause anticipate only Litigation evening, change. views should result of expectations, constitute Various Safe as XX-Q date. results that these and may views most Michael, our statements a for factors, including subsequent statements materially and plans Reform under be representing Actual Private These Securities future our upon that those the and from as as of by of the XXXX. of Harbor Report on may in provision purposes indicated not

course located market There’s release is on after results available press currently specifically the to which a may issued any the to call, disclaims www.microstrategy.com. website schedule at today’s company non-GAAP in obligation update during versus elect future, of these to the close in certain forward-looking reconciliation so. we While the our company non-GAAP of point statements at financial will showing measures. some do refer Also, GAAP the our today,

on financial XXXX to continue strategy. overall QX Our track with be our results

technology, marketing and We growing revenues. people total objective our and customers to invest in our with sales the and of continue

transformation. Enterprise for Intelligent roadmap with digital the both looking are is a and for prospects with that the resonating map Our customers

Library of get the products Across Apple MicroStrategy Library share and app products driving and downloading can financials revenue support and in or of Workstation and our usage ease And Dossier, of improved investments and Store renewal MicroStrategy to our support, release platform the our financials and Dossier I’m enterprise rates. in to our QX to provided increased. iOS have our you following customer products, Google Our earnings the Library success, Store significantly MicroStrategy, with Dossier the or combined in of QX have support release. the adoption, our introduction by of use. organization App or technical by The the in Play in Android offering weblink our and improvements improvements excited

Worldwide key also A new recruit Kevin President, industry top-notch of software We to Sales, highlights Executive talent continue Vice organizations. of recent our Senior Norlin. arrival into

Now to our financials. detailed

$X.X million, in have million these sheet SEC. note accelerated a recognition with Compared a of retrospective that in XXX, These license revenues. and ended our related on period financial QX filed were ASC and adjusting for changes net primarily OEM adjustments the Further XX-Q other our XXXX. in the details in new of provided income in term was are full or to of will million adoption statement product standard, resulted First, financials XXXX, be with for X% QX going increase a XXX. our XXXX amounts the $X.X $XXX ASC increase statements. of a XX, XXXX Total we year-over-year. million in $X.X adoption revenue our reflecting forward adjusted million retrospective revenue full period license increase these our balance retained earnings please our our on as adjustments income revenues, a recognition December Notably, the adopted which increase $XX.X shows prior

$XX.X were million $X.X favorably effects or QX license in XXXX, year-over-year. million $X.X in a impacted or QX our total by currency revenues X%. XXXX XX% revenues Foreign million Product decrease

favorably effects $X.X XXXX in license impacted revenues X%. or million currency by QX product our Foreign

XXXX QX reflected to of previously, revenue mentioned I adoption product XXX. additional due license As ASC increase to $X.X the million

driven in year-over-year. revenue cloud QX customers primarily Our X% subscription decrease a million $X.X of XXXX, by services

XXXX, revenue million increase was million X%. support year-over-year revenue such favorably currency Our $XX.X changes in foreign by a QX X% impacting $X.X with or

due other Part Our currency of impacting or to increase and million certain deferred of items and previously $XX.X QX revenue with releases services our million bad XXXX, revenue debt was in improvement foreign $X.X X%. year-over-year such favorably XX% by in QX changes was reserves. recognition

a people expenses driving million; and note Turning were World revenues expense our a quarter-over-quarter. marketing customers was to QX our would I XX% to increase operating $XX.X increase is event. X% year-over-year, year-over-year and investment QX overall. expenses increased marketing XXXX increases due technology, cost. $XX.X sales our XX% cost is at year-over-year million, QX a increase MicroStrategy to the a strategy sales million, Sales X% sales and million and $X.X the for increase and decreased the high of and quarter $XX.X and marketing X% quarter-over-quarter. kickoff to quarter-over-quarter. our X% was XXXX

addition, we increased business and corporate to marketing to inside sales continue in In digital field our invest presence areas. in growing

Research our or sales development $X.X in million centers and Headcount with addition, year-over-year development XX% our an key XX% increase increased XX% year-over-year. XX In three million quarter-over-quarter. XX $X.X accelerated increased XX% people headcount expenses people marketing or or year-over-year. or of – and and X% increased

areas key user experience. product also We’re positions leadership management, like investing

with in cost, position product business. to to diluted ago and net year to of We’re enterprise, operating develop and QX increased $X.X the a due $X.X and administrative quarter-over-quarter. ultimately General retain, X% increases or per be $X.X $X.XX. pace at finding This XXXX, is of an to continue X% for IT operations successful. our and talent grow income $X.X million million of earnings to share or recruiting expenses very of leadership income and million XX% Net million strengthen rapid period from in hiring and as year-over-year, implementation look systems in X% XXXX as same We’ll mobility technology margin compared of our well efforts analytics the helping our compensation. a QX

headquartered With the due a proportion XXXX cash, short-term and XXXX benefit in In of and for as headquarters of entrepreneurs tech continue helping a debt. D.C. discrete the talent, tech million serving XXXX, income Tysons magnet extension XX Greater We at and we to XXXX. build income cash as our Virginia U.S. taxes community equivalents Corner, the $XXX.X tax Washington in companies. sign of been area the change and end had has to for MicroStrategy for QX investments and years in net an nearly technology through versus benefit. no the QX QX have in foreign incubator of as well the from lease

$XX.X balance prepaid current XXXX, balances in as to communities. to extension home substantial for to million years increase assets for sheet on continue of to as other $XX.X the liabilities The the this We’re contributed other March this increase expenses brings in XX and and this the XX the XX, a amount our December and proud and lease employees next long-term stability and local MicroStrategy, call as excited XXXX. of our million compared of those

accelerate continue associated our outcomes and As sort support investments make basis consulting very mixed and tech we expected review We improve and a and our and in our continue customer to product high-quality engagements. pace marketing hiring areas like to leads, technology on we to continue XXXX, like to our regular and to areas in through opportunities changes revenues.

disciplined We’re process these our growth are investments the and Norlin to sales to place organization. will All excited improvements bring drive revenue XXXX. to about sales Kevin execution that in in

to back Saylor. to like I’d it turn Michael Now,

Michael Saylor

Phong. to Thanks, share my I’d initiatives of in enthusiasm around various have a XXXX. we like number

seen and they’re which MicroStrategy started engage I’m marketing we’ve of a at integrated We’ve enthusiastic of Intelligent to CDO, qualified used we’ve groups heavily every built be. a a all to things improvements the very in of we field in expanded summits, in organizations executives Enterprise to have lot brand on that’s think common out Show places Enterprise. and we’re CIO is and sales, to generating We also level, Trade about expect corporate our the I In services, drive more those awareness Roster our we continue. to world. going enterprise area We’ve kind presenting of Intelligent and of and exciting a senior than theme, organization. initiatives. CXO, also lot field technology mission of where for I’ve with around programs; the and about making we’re enthusiastic marketing, to high-quality leads, us, the number marketing enterprise message very our been our marketing, the

many into remainder that opportunity named and reconsider they’re them upgrade initiatives objects further; MicroStrategy and the qualified and the support and I’m we’re and to SAP to the of the them, the commitment base, there it on is putting marketing it’s customers see refine platform. users marketing conversion year we’re premises and platform I’m fact no the solution efficiencies lack about to in message opinion, flow. analytic objects the ever, integrated to energy the best is we’ll have Our business the and that. focus new and opens have do the up is the strategic moved we digital not over efforts and enterprises, not on heavily one an our to lead of in part our we programs platform, we within path doing is business in accounts, really executives than We’ve ago, year that convert up there The the the to the starting SAP We’ve in sales cloud. more cause Recently, to conversion objects just platform of going and a development assets flow the other believe a us MicroStrategy opportunity business we versus of customer development. got ways exciting the and structured leads that a a lead plan of there MicroStrategy and And is the very delivering our qualified conversion out increased and to for rate. lot company, I it. to is our excited one upgrade to ramped business to about commitment One to the – be for more great places, to than is sales the an are organize to are of and announced order of X.X MicroStrategy going interest of we’re there in of my This there some message on opportunities their SAP all putting begin to organization. senior out achieve committed improve to initiatives in present business on into software particular that lead our one to this with and enterprise no continue to to continue to mistake and that programs switch engaged our enthusiastic

also And and so initiatives to of exploit year. commitments platforms and like Watson, that enterprise away IBM, and their to during analytics IBM, us plans I’m leadership Rechan our organization to is Board some Marketing Quest, Informatica our career as opportunity he that enthusiastic call Norlin, cloud an In Oracle industry Three Les brings our shift initiatives I’m Head this we Senior enterprise sales and or we think software to marketing an as the continue see the I executives MicroStrategy’s influx coming wealth who enterprise him to that for leadership Business at firm. exciting our software with sales, are Kevin like of Board across Dell, AI assist forward Objects to for up mission. going sales And the history enthusiastically about Cognos enthusiastic commitment enthusiastic think SAP IBM to enterprise I analytics. area with Siebel, Sales, BI their opens to Directors. he’s our talent I’m Marge Directors. Sun, Oracle mobility and and going bring firm. about sales adding new that sales enterprise opportunity we leadership has us some and to us from a attract and also Worldwide have of the Breya Les of leadership organization, an I’d also and of we cause, created a highlight software a to drive welcome Marge in NCR, been pursuing of HP into has with really of our to and new to has to in has on with about Executive great and a and sales the to welcoming

and so everywhere us our contributions. some forward help sales in we’ve attract pursue and been initiatives to enterprise look as senior the we world And marketing talented to able their very executives to I

everywhere built and also We our partnering And to team our sales out partner I grow the organization. initiatives world, that’s channels us continue that with with our and help and our think in field fields’ Enterprise that’s organization and enterprise we specifically, going we Intelligent by to sales, the area world. growth the in year. coming our where the received services, and services have reoriented every sales customers campaign being In during support our to enthusiastically of

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which the on responsive of our tablet functionality. design, that with is smartphones. the our as major expect and be platform the we’ll combination dossier is platform functionality, We’re part release, platform will next and that and gearing runs The that XXXX release XX as received the version and client in dossier very for have up and a enthusiastically very we some on mobility new which and its library that collaboration iOS, on fact I release being computers on year exciting XX time version of release Android

big access federated order and exciting. agile, could is enable our analytics, I our The Phong that mobility will can as of departmental you and programs. interactivity our to us and that enterprise mobility message. really the and Financials document mobile, think on than analytics across custom, or federated library and and even analytics and traditional iPad and allows applications And the we our to pointed using that’s some going boost deploy think Dossier web mobility drive analytic container now and help be self-service, faster application forward applications. you out, magnitude Dossier it an with own to financials enterprise that as your on doing be iPhone that means to you MicroStrategy viewing a I

our All platform as going they release even and will XX embedded are is and that our in Dossier of I now. of then version we get feel deployed to than broadly be more XX, the to are that release offerings be version mobility

make in traditional the of One Google major the us visualization the provide And itself throughout for more tablet. Oracle. base. vendor we We of applications customer customers. but versus to the with latest the our to Maps, it’s version this markets, web XX can’t a a great look everywhere inn of and same of point a it geospatial Another as wouldn’t map way on exciting we increase aspect force which generation customers, started built deploying it’s great that I that dramatic our for functionality in analytics they is customers world. than Apple the forward, sales we I’ll in customizable create suited geospatial from because functionality lends just this much our an applications improvement box because the and going get showing functionality is not is for an dramatic run a or thing to ERP a improved, or Maps just functionality the work iOS versus is functionality to thing or is smartphone a where our our can or leap think China much off new our is enterprise platform. Android Maps that a this oftentimes, had deployment is more example, that because integratable a Google custom good product will many geospatial or functionality to the the into remaps really and an new or release in or an think deploy across all a SAP and work. because us, this it’s exciting and their like is platform, geospatial mobility the It’s to module, which more enterprise

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services, with Europe, that’s I deploying top customers by effort in this configuration proud dramatically the in that of better released and Microsoft for in to the comments services and on broadly ever. relational China to and to I effective we’re support and United solutions really is in order of advantage is year going cylinders that more feel taking it to we’re to we plans extraordinary databases quarter of believe less data we’re for delighted and in deploy cloud three we’re to this less have of and gateways a of year aggressive on consistently States and dramatically I’d just up data top version MicroStrategy firing MicroStrategy platform. and we’re opportunity take I’d continue about committed it I continuing also and us. on the been our allow in Azure it, capital to than create on our advantage the We centers AWS an that best our dramatically few with organization business in fashion are very past finish recruiting higher XX.XX, and for like last like all than to we’re improving think that. morale to than better has and employee recruiting before. and Corporately, pursuing at the those corporation. a customers functioning say

where $XX reminder, vision that’s we’re into it’s think we’ll into desks, just when we appliances, built intelligence is company for like of got like We’re see probably all can and world in to services, and electrical benefit on time Intelligent confident sales, our The finish been $XX enterprise and online makes of up areas. focused just marketing coming plans our we technology, Enterprise, then threaded thing mission from center capacity through anywhere. that interactive strong, about development are really with position exciting we built we create see spread treasury rooms I’d cost intelligence in intelligent and in building been D.C. our technique with incredible and that ecosystem interest built an never our analytics resonating intelligence and and is There headquarters, know of technology the of centers major quarter-by-quarter vehicles, rates those that around enterprise very balance customers. in and the the to remains and technology mobility, do into out deploy coming as interface marginal China they technique every an an Washington about your enterprise also it’s we’ve want and need three you every it we our that has a clear through conference voice-type three or short-term a an center, there’s technology so and point, good sheet is an federated enterprise. us improve, three. to for has rates the plug. world. customers and our those through in Warsaw everywhere. the corporate. growth is business getting all our a that through the everywhere. they our in Hangzhou the make world; based everywhere. MicroStrategy’s make to that. strategy and a live invest enterprise been systems from exciting all to great major thirst really to intelligent great our an into and built to

if that, would send that them with So to of help, enterprises like our you any please know way.

take For investors, for and questions. we’ll support. go now, thank and all ahead of I your our you want to

Operator

from Instructions] you. Keirstead comes first Our question [Operator of Thank Karl Bank. Deutsche

line Your is open.

Austin Dietz

for Austin is Dietz Karl. This guys. Hey on

strategy still So posted if may the could you declines Kevin in structure you maintenance despite the first maybe, what second mind. guys just about triggered leadership question, changes sales the license mid-single-digit then And growth. have then sales what just and changes talk

on So then drove would maintenance forward color some to could the of on thoughts mid-single-digit any going maintenance maybe, provide if growth durability and you be string Thanks. great? the what

Michael Saylor

Yeah.

software two great board that, the able and for I of to we’re opportunity Marge some I and sales three contribute the years, leadership And MicroStrategy attract joined be to got of that last is a from champion has firm, Our great to in us always the for enterprise sales execution intelligence. created over thought would that’s solid commitment to the providing the talent Kevin to a and think to within the to the we created mission. history reputation enterprise marketplace talent think the contribution has and are to leadership analytics industry mobility a the of firm, he Les looking contribute indicators industry the and make

Phong Le

On was your we’re improvement of support the X% up the you due to to growth happy question revenue about mid-single-digit, if very on obviously our FX. X% that know in we’re outcome year-over-year. want in with

X% renewal about year-over-year been years. customers our we’ve happy few what So are it in last software. the have rates for our normalized was a seeing made improvement very upper effectively, that’s XX% we and with our business. about

in Dossier think customers and especially innovating and I library, have I know that analytics. to our Workstation and we’re recent think let our to with enterprise starting our and space really innovations our we’re well software find

to things are So, together things those helping those improve all satisfaction customer tickets. initiatives our phase. internal including helped us backlog we’ve all overall our taken revenue to and improve just support

So we’re in with metric pretty happy where right that now. we are

Austin Dietz

Great, thanks.

Operator

comes line Lamba Abhey of next question open. Our from Securities. your Mizuho is

Parthiv Varadarajan

guess get what’s now funnel in change any XXXX well on conversion about Yeah. on front. Abhey. an Parthiv Mike, the that the you’ve to is last leads into through? for looking like new Thanks. and flow I This call, on wanted talked that some net customer we’re as update just activity,

Michael Saylor

continue one enthusiastic other, to marketing have particular and forward We’re I but drive any to to looking way we report we’re don’t a of think we’ve got them. XXXX. on our and about opportunities in effectiveness, changes sales initiatives or to number the executing

Phong Le

from – improvement net think early to general think Mike revenue how customers. coming in our with existing that’s whether or I it’s Yes, in customers leads our I all activities, result marketing data to going yet in incremental determine but of new

Parthiv Varadarajan

customers, developed your from does support earlier partnerships of in enterprise capabilities their conversations Okay, guess great. those preparation and then the either week, I through And the guess, efforts? with or how how given competitors this sort directly are data I your of one platform announcements MicroStrategy

Michael Saylor

of number are data that world, there many away. than exploding are assets I really so there where enterprise going think before in and more sources we’re enterprise ever and are living there a more aren’t data sources.

credible lots the support different of you to data want enterprise enterprise So to sources. be need if in you marketplace,

And surprising that so not in that it’s they’re interested business.

challenges I focus threat address think that strategy. Microsoft business. the that with and continue we appeal order just deal analytics late case, we departmental enterprise have their them most working the customers to to announcements of with from the in our to to upon with In of to comfortable has our and particular Tableau’s Microsoft feel

Parthiv Varadarajan

any last even some you it. near-term? buybacks Got capital time the front, And return an on could update Okay. the – incremental inclination the then one there, towards dividend in give any us or

Michael Saylor

important evaluate and and the capital, go we it situation the an us continue best We for will our forward. as consider of use to remain topic

Parthiv Varadarajan

guys. Thanks perfect. Okay,

Operator

[Operator question Analysis. Frank Sparacino Our Instructions] from next of First comes

Your line is open.

Frank Sparacino

improvement early there field to effort. Mike, Is Hi of comments can I around and anything a is on you comments higher terms current some lead comment marketing the of in in made Maybe, the lead sales more start maybe numbers the than two actual forward-looking it us that of gen things? relate conversion and just was those guys. you assume but about state, around your sales gen kind

Michael Saylor

has definitely in our auspicious also and we lead year-over-year lead Well, think I and generation And see the improvement fashion in as the increased flow lead see an in of we trend. that quality a of material flow. quantity

Frank Sparacino

down that your level conversion should on the sales I side, And of be happiness of today where road? and current you the where it kind mean then with think

Michael Saylor

opportunities. business. on excited conversion of to and sales sales that got we think improve our energy to ways we’re opportunities and before, that all in the more of talent we’ve to Well, into and we’ve than part have improve we focus aligned upon focus marketing the of order and that about leads

Phong Le

We to investment out, of and didn’t last just incremental our activities believe, you, to until year October. marketing. Frank July I really launch them it’s I in we early about talked know, think still came in

of in lead six the we’re success of really conversion flow, this months and sales to terms incremental as seeing that revenue. to and into mentioned, we’re So Mike it early is good judge

Frank Sparacino

provide maybe footprint of kind And last anything can terms to just just to-date? of from Great. you in me, related Workstation

Michael Saylor

The will version release. Workstation version of XX.XX as say broad of the as lot part and deploy part the year. environment. come this is seeing customers that I the XX platform version workstation release. then XX people of later XX and use to so Workstation of would MicroStrategy the starting we’re but adoption a release feature until

of as use the part to So I’ll deployment. start Workstation that

Phong Le

beyond familiar enterprise our on our XX.X platform we’ll platform for standardize [ph] or deployment to you’re that typically customers sandbox a a and strategy. until in a to to you platform of release. product with think test but I environment releases Yeah. that deploy users. individual last XX release do release Frank, a the was in then wait typically XXXX a large and full But environment, release

Frank Sparacino

great, thank you.

Operator

Our next Tyler of question comes Citi. Radke from

open. line Your is

Tyler Radke

guys. evening. Good Hey, thanks

two, kind the if wanted business has core moving opportunity it’s or think centered getting like the kind I Tableau year strategy and market, inflection that going of made onboard, SAP of if SAP, seeing success over about particularly coming the Mike, your about with out success. the you had two really of years customers be comments of not think to the any new customers enterprise with And up. of on objects are I forcibly obviously, So this you new starting last cloud. traditional having going maybe top played where SAP around the MicroStrategy to the where it especially ask their the had the seems opportunity and some back kind about you you, with and net coming after With last on liner of sales some see to head accounts, roots the has

Michael Saylor

of think customers that which corporate to engineers. SAP I on-premise to financially-driven both I them this for driving as have that’s think And cloud. and their agenda financial they’re that to a massive agenda oracle convert all

we’ve the think that interest so customers. heard much So heard of And in – I from customers. don’t best their their that it’s of

and you business that’s then – design if that, you rest that mobile without going X.X you’re stick access to SAP’s people you’re any that AWS, if you capabilities recent functional to deployed leave and basically you a wanted. to get to So modern take APIs investment going business the leave to it’s a modern going leave responsive the a not is objects announcement great you without customer leave you object on path that’s advantage and to for it’s not geospatial without of applications platform, on if to without you telling collaboration product, you’re going going

the that on to provider and nobody nobody So, or which or many be world operations, wants – that, SAP’s new and so cloud, that there’s Microsoft going or stuff follow platform high-cost if to cloud SAP so have to to that’s applications is IT the a thinks have a Certainly, trust their your nobody kind sell of the services. platform, to your of the you SAP’s matters. the of even to Google, path, in wants is of than going Oracle, cheaper and other part and Amazon many do rebuild that, on re-buy the hand, dead-end you and do

services, you wanted of probably would single So that expensive cloud SAP. to if be the most provider find

and easier will path. base, another that enterprise we you’re have X IT look you platform you you XX for would of current happy customers and message executive serve or into the and decided of and standard, taken line IT of of deliver kind and is a smoother upgrade you and it’s bunch to to the go for afraid of is us a what probably SAP going do, install expensive stabilized provide much to that painful, you from be works environment, want to it has got on-premise consider executive, do SAP need on [indiscernible] some right love have or order go you protect the they’re thousands I that in that what and you obsolete be with want and continue the they’d own so have you’ve years is any stick you stuck got you and in would and alternatives can position, you’re run course, Oracle, to an – you competent to go and going behaving expensive, risky you’ve at that, you say, your if run you So on-premise run that and we’ll or done platform to it to friendly to that would they don’t do business do with environment on in if which can fine customer SAP, take mark, to my or we’ll of secretly own AWS that and all announcement, have a situation, that features And you if even to fashion. your wants more provide a much and less ahead executive to negotiating surrender control. and you would that

but and else can a about they’re right for forward opportunity which their so and But a our programs, for IBM all coming enthusiastic but uniquely that IBM flexibility in SAP good horrible for pushing some to is better I enterprises MicroStrategy, there’s as customers. that, think positioned analytics is we’re marketing three direction, where at and can I’m years enterprise their provide Oracle’s customers probably cloud And path, of they’re which we better I that all now. not cloud similar well so got with customer, announcement cloud in customer and good thing And where is is of Oracle’s And it strategy at functionality a And more more and marketing nobody vision. got is Oracle for lower Cognos it’s the price, arming not those again pursue strong and they’ve their either, those – so to space our direction choice, pursue. it watch corporate approach, got. the a the and again has a obvious vendor a most egregious our their sales right straight good to is

enthusiastic definitely I’m So, about it.

Tyler Radke

I follow guess to on just And Great. that. up

these years, cheaper of these the because you it cost aren’t which kind the have actually on something easier in customers do? things a platforms and easiest move front to and these and that off your from like their that obviously, to than MicroStrategy migration to of a mean for but had to is willingness go other, just I with do that’s to multiple technical feel or confidence platforms perspective, cloud, what’s ultimately So one vendor

Michael Saylor

switch I when another and your and I drops applications your percentage SAP commitment would but platform. heavily you of point. also is of fact that a upgrade path rate the business to those to number in it, think that you you to the to them see with say no number that platform, not rebuild have and platform vendor the your have you have typically a new the BI bundle some or to new that that have objects, And new But better. think says that renewal customers there only was points. XXX% will the find also range for in XX% you sell to that drops if platform, I services my by one-bundled, and then renewal committed platform, rebuild you app publicly to then to rate The cloud drops rates renewal if by percentage

they RFP next start if new them, the vendor which control up to because a stay containment, even seen how that’s generally the will most favorably tell they’ll to to over on organizations the have to new and either working platforms as they spend they consider by put vendors as industry this number, but sense stay vendors, exactly, platform, projects, new I’ve keep three by of So I’ve going everything Then and common and large not a source spent for to about going do it rebuild be want they’ll that’s IT running react, in years I when for process the those with much what like then organizations or although strongarmed their projects, to for is viewed destiny. give their I new impact times enterprise me get in XX over it. they to customer and they have got can’t have years, three shows you and when commitment. pay more they you, exact you the if or and second with

memories slower does when an vendor So, I positive a think in only move and people move perfect well, environment but rate customer, not thing you’ll as where for arming maybe have this they is of very pressuring which or a a enterprises the making effective. they of the exactly within strong is our choices have vendor find and or these and missteps good strategic lot

RFP into invited so us by process right a be that’s large like And get strategic stabilized for what to view to the lot enterprises and the now. at what easier point to a have for these we’d be our vendor we table, I and as of it’s misstep, view

Tyler Radke

think that second that half digits, talked will the with double return being still offer you’ve are the about And kind that bit the about license obviously, at with down license a I confident this license all thinking growth you’re both, year or you are of that’s you said, that? how harder, more thinking of still to XXXX QX in

Michael Saylor

Phong, comment on this? do you want to

Phong Le

of the that I we the revenue growth excited and in at license still year, words. we’re that aspirational Yes, said an beginning revenue think XXXX and see to product

Tyler Radke

thank Great, you.

Operator

I’d any questions I’m no call to to time. the further at back closing Michael for remarks. Saylor this turn And like showing

Michael Saylor

your support want and we look with thank Thank you XX speaking I everybody to you. in for forward to more again weeks.

Operator

you all today’s Ladies for and program and great disconnect. participating Everyone in conference. does the have a day. may thank you This gentlemen, conclude

MicroStrategy (MSTR) 26 Apr 182018 Q1 Earnings call transcript