MSTR - Earnings call transcript Q2 2021 | MicroStrategy Incorporated

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Jeremy Price

Good evening, everyone. I'm Jeremy Price, MicroStrategy's Senior Vice President of Financial Planning and Analysis and Head of Investor Relations. I'll be your moderator for MicroStrategy's 2021 Second Quarter Earnings Webinar.

Before we proceed, I will read the safe harbor statement.

Some of the information we provide during today's call regarding our future expectations, plans and prospects may constitute forward-looking statements. SEC. materially including forward-looking our risk XX-Q with differ various due most may filed factors, important factors the results from statements these to recent Actual discussed in forward-looking We statements, today. assume to no update which only as obligation speak of these we today's to refer call, measures. certain Also, financial will during non-GAAP Reconciliation in www.microstrategy.com. available earnings on website non-GAAP at release today and available versus showing issued are are presentation, and GAAP results our which were our that screen. webinar, I will would at you welcome questions let the be we like know using all to taking and the you today's bottom to Q&A feature of your

You webinar, of will submitting And with will the over Phong the questions Chairman your provide can end be your answer questions. and call of CEO Please and submit when to sure throughout and Michael MicroStrategy. turn to name I session. the that, Michael your the them Saylor, at name or company's

Michael Saylor

I'm I'd webinar all and I'm with Thank Chairman CEO President the Phong Jeremy. XXXX Le, our regarding you MicroStrategy. of results. of Financial quarter our second Michael I'm you, Officer. Chief financial here welcome to to Saylor. and like today's

like our quarter. I'd and update going an to for to on who floor pass provide Phong, First, to the is finance operations the

Phong Le

also in now holdings. Thank digital quarter first delivered another quarter demonstrating our well while of upon from across analytics successful and I'll continued business expanded with the capital built strongest that asset momentum our you, completing to operational Michael. quarters performance. our some business, performance performance highlights software Board, start raise second MicroStrategy performed We years. in the strong our

in versus we since XX% our performance grew on QX strongest of was and X% quarterly numerous from constant in the strength changes XXXX up and product or quarter first XX% we Total revenue pleased in as six introductions XXXX, with We a QX which consistency benefit of currency the made basis the the half year-over-year our years. it XXXX. the operational undertook and we've to are is continue execution

traction gain both customers. Our for existing and new cloud to offerings continue

versus got comparison grew we momentum our favorable our year-over-year, again, entire License revenue performance but quarter of billings XXXX. the Subscription once impacts While QX some compared more COVID-XX of XX% to growth. second from was the XXXX. XXXX, XX%, subscription the up shows grew business. double-digit quarter impressively clear our XX% across in quarter QX straight during benefit fifth revenue Current grew our XX% against

invoiced Our revenue of values a quarter impacted contract deferred billings QX billings longer future. had We Without would XX%, short-term this QX decrease, XX% in up include that of by in decrease are were the non-GAAP strong subscription operating year-over-year. grown margin we another the no subscription as with XX%. have profitability subscription

Existing of is the BI long value customers the looking platform. performance by to recognized of for adoption MicroStrategy MicroStrategy, being broadening our more best-in-class platform. areas Our driven have deploy

applications of are to needs. well also meets attracted modern favor competitors. more like the and cloud in recognizing their robust aware look SAP than the thus BI and customers unproven offered of IBM respective as better their for modern, legacy need New those lightweight Customers from solutions, by capabilities dashboarding tools are to vendors, our for deprioritized MicroStrategy’s enterprises rebuild platform enterprise-grade have transitions, open, world, the

quarter We into actionable dozen as several of hands pleased puts instantaneously. customers insights modern We reception HyperIntelligence are the signed design with Hyper.Now. and worker's intuitive HyperIntelligence market this the in

the beat leading Microsoft deal new we we one figure we transaction, signed freight with communications company, in where Let's cloud PowerBI. license with where leading And a for win a signed seven few vendor beat OEM look new a with more of a finally, Tableau net PowerBI new wins key a to at displace a and Tableau We German detail. signed legacy We and win cryptocurrency a solution. a exchanges.

We also in rate, from an several MicroStrategy which and included customer more deployment to to customers its than should saw ARR where as providing cloud prior of doubled solution, on-premise the increase the quarter MicroStrategy. that migrations also With existing migration value customer expanded wins process. our from of part in an both of the run

Europe's one a their expand world's quarter cloud; exciting MicroStrategy in extending of and platform. features deployment its Federated size expansion part enterprise who to as a now Some $X largest to million doubled three, now grocers expansion migration collaboration conversions MicroStrategy in producers, Analytics and the nearly during dollar the us, signed ARR; leading its standard a included, multi-million clothing sizeable the is include retailer of one, beverage its the to approaching U.S., largest of commitment of one as the further of two, of to BI annual

part want of a to as platforms business, the Another in leverage analytics of We've opportunities. solution one we for best-in-class exciting us area in growth both with OEM strength that open investment open market. customers the market. the our in driven our core number believe embedded existing extensive and architecture, increased is number of experienced OEM size APIs their are interest We from the and in where by SDKs and best solution. new our OEMs seen notable We provides

the investments large to in has made the in part in continue by our make solutions. we've success market Our and driven been

we the the XXXX. into as enhance look in we XXXX be we our as And of and an spend in beyond expect expect dollar as to on significantly higher. highest overall XXXX, basis future, the company, we investment profitability to R&D absolute R&D the be even Even

is dossier, resources efficiency overall reflection world. A our go-to-market provides our customers the to offer our UI platform to our OEM, profitability leverage drive cloud, our security of strategy R&D. commitment of most analytics HyperIntelligence virtual library business efforts, in wave the part invest complete key and Our a are investments greater and our in additional modernizing the to which enhances to workstation, in through in in

sales QX by expense or and $X since time. XXXX while that XX% subscription grew and revenues we marketing over revenue million that XX% license same XX% product example, grown For reduced over time,

COVID. go-to-market over leverage at the spend, last marketing and model our year decision beginning while the we to from additional sales fully performance over consistent a generate continue topline growth. move validated continue We generate of virtualized time can Our believe to our to has to

digital Turning asset several strategy now with to developments second exciting our in the quarter.

ending First, with approximately price we average Bitcoin surpassed $XX,XXX. the XXX,XXX XXX,XXX the mark purchased quarter an at of Bitcoins approximately

gross the XX,XXX upsize to secured Bitcoin. successful total note billion. It own for LLC, raise Bitcoin the from is we we quarter, the capital capital This is XX,XXX proceeds Bitcoins during of that the we new notes was purchase per million offering or with $XX,XXX formed million during quarter, successful latest that we a $X.X an proceeds to acquired approximately During additional prior important senior to that Bitcoins for approximately The hold used our $XXX included MacroStrategy second $XXX third created our quarter. priced offering. subsidiary, note our the senior

to we Additionally, aftermarket intend not going billion recently put in executed shares. opportunistic to Class to be sell an on common up A forward. We've registration place of the shelf $X shelf and

resulting funds million. raise our prices opportunities volatile structure We the Bitcoin non-cash in $XXX.X will quarter, a acquisition to of Bitcoin across continue capital charge the were GAAP impairment strategy. evaluate execute in additional to to

$X.X the billion billion basis compared and our of of market of to value $X.X of Our $X.X calculation approximately of as a value book billion. June Bitcoin was cost holdings non-GAAP XXth

XX% deploy XXXX a July Eastern for our at $XX,XXX, billion of price principle equates non-GAAP As appreciation $X.X time, our basis. P.M. our intend one market of additional continue roughly approximately XX, to Bitcoins, to XXX,XXX Bitcoin strategy. cost digital market X:XX We into value, a the to was asset in which capital market over

As U.S. the to more setting various working been appropriate try assets, in framework digital the leading peer one advocates companies to we've determine of and agencies accounting for digital for assets. policies with a

a the new the As of on with it learned assets responsibility balance embarking in digital class. believe corporate we this to to strategy what asset since companies holder the make world, we've sheet easier for diversify their have share largest other to we

pleased me performance are by a of financial we in Before more let our with the quarter. going review into performance, finish saying detailed just how our second

of priorities. business, of The profitability. first the XXXX of growth enterprise quarters realizing and benefits is the the primary delivering last of improve pandemic, leading to on increase half strategic are in which impacts the the software analytics we since are investments both our revenue, Operationally, the and four we both

substantial the Our leaves Investor long-term Bitcoin the our positioned on success global the Day last shareholders deliver to generated same a in leader elevated our for been trends there areas. time, of digital operational we strategic well in early the and the our increased value to of out we us company laid be helping each visibility for cycles, of asset otherwise. The We to of unlikely in has improvement to asset market. further financial strategies, strategy have sales and in At to meaningful participate our both are digital in believe MicroStrategy November. targets due initiate would opportunities stages that continues focus these to also

XX% million Turning from second results revenues subscription second year-over-year were in quarter second revenues related of up Subscription quarter XXXX the second portion up GAAP the of of XX% from platform. our more for $XX.X services in the revenue reflects XXXX. growing XX% our quarter year-over-year XXXX to million, quarter detail. Product that million, the are and services $XXX.X and XXXX. growth up cloud second our to an in and of quarter the license year-over-year second quarter were financial XX% in revenues of quarter the increase managed were $XX.X bookings up X% XXXX, XX% of The of XXXX. up product the from

support to currency Product subscription year-over-year. The an from favorable XXXX. of with billings basis. subscription revenues converting in Product existing were quarter current of constant by offset was translations, Our XXXX, X% a quarter. year-over-year customers currency a the by second from the of year-over-year driven or business term foreign support offerings. X% were the of perpetual licenses revenues increase quarter second on cloud license partially increase our of $XX.X increase pleased performance services the $XX.X XX% in our impact down We're certain million million, were primarily

As to over we offering, we conversions product modest decline on-premise time. would support cloud anticipate experience our will a see revenue more

revenues, customers MicroStrategy XXXX due indication year-over-year, increase the largely modernize Finally, increased platform. their our and deferred subscription to Improvements million services of $XX.X second year-over-year. increase support expand other XX, to up is continued revenues. in an and Total quarter XX% is XX% was in revenue engagement X% a on product revenues This services deferred services of $XXX.X XXXX revenue, deployment our million. consulting a in which from consulting were XX% deferred in of and reflects primarily June

in converged revenues revenues. XXXX, the second from deferred subscription shift customers a there existing more support asset Total our see charge million we services were to GAAP digital product expenses impairment a is deferred cloud of of platform, includes quarter As $XXX.X $XXX.X which managed to million.

a for in assets of which in non-GAAP and decrease Our Bitcoin quarter variable of by that indefinite-lived accounting second the applicable acquisition in income were our intangible million. value $XXX.X XXXX in Total increase at of operating assets The and marketing. their Bitcoin XXXX, is to year-over-year. million fair was quarter considered in XXXX, inclusive resulted second million stock-based holdings charges. of recognize $XXX.X second any a was for expenses operating X% to higher below $XX.X $XX.X subsequent their increase any time year-over-year the an better cost of us impairment loss requires book of meaning such increase mainly million sales to million value Total under non-GAAP GAAP impairment quarter Total related are rules, expense the year-over-year. driven $XXX.X sales $XX.X million compensation compensation performance,

as We cash. bearing the the amount at discounts of in market That unrealized charges also notes at impairment notes from June strategy purchase the XXXX non-GAAP diluted Turning value charge. commissions and non-GAAP were operating to was non-GAAP as holdings net the of billion company's period and to estimate initial our proceeds $XXX expenses. million impairment reflected Bitcoin June holdings incurred. was calculations. to the the share deducting proceeds June compared of quarter $X.X approximately of which million Bitcoin secured the with XXXX, carrying exclude quarterly an XX, Bitcoin the per We reflects the earnings the our accordance ended after Bitcoin interest of We the million a loss $XXX value XXXX. gains $X.X the value reflecting senior customary our X.XXX%. sale of when and XX, XX, carrying used aggregate balance The our our billion Bitcoin. $XXX.X from We $X.X In in purchasers' sale of impact notes on corporate net in rate billion, the income and from income sheet. is $XX.X statement GAAP principal million of issued The acquiring with offering the of of we of Bitcoin, cumulative

last are basis, pleased over execution year-over-year. our the the $XXX On of we've generated X% represents four with revenue XX-month We which quarters. corporate strategies a of trailing growth approximately two million,

a basis, a trailing on non-GAAP XX-month non-GAAP generated $XX equates million a businesses software Our of to income operating operating which margin XX%. of

a of of $XXX raising financial $XX our to million As XXXX is strong income to result million. estimate non-GAAP the company operating performance, our

Additionally, with XX% of the estimated appreciation Bitcoins over the over quarters, XXX,XXX the company four last acquired cost. acquisition has approximately over

we short-term And we investments may issue transactions objective debt and of purchase time-to-time expect the the current proceeds using should when that Bitcoin. or subject with conditions equivalents capital market capital equity raising you to may from working cash, additional Bitcoin purchase requirements. forward, exceed to and our Going securities cash

engage and holding with we Bitcoin growing company's and profile the acquiring analytics a business to MicroStrategy. operational running business in as complexity, our the role to team. Bitcoin me market we increase plan a call Finally, executive search enterprise as a the in comments software management compliment plan and focus acquisition intelligence for corporate on and my for well CFO to software CFO and two and management to of search Michael for public trends focused our the our on our business with next President, strategies, I'll on day-to-day as engage in the allow team turn strategy for now over to a team

Michael Saylor

demand two platform. with company plan intelligence strategy just is easier faster, MicroStrategy and of the better, software software available Well, on with – because that The to all were via has that stronger. the focus. to make regard it is operational Thanks, our our our of cloud, our enterprise to every Phong. intelligent business make I'd make positioned do upgrade then intelligence and our our software functionality customers that's for like more smarter, mission start via the enterprise well to reiterating by all cloud singular the regard And we strategies. And to to to business make

enterprise entire MacroStrategy our you just is is business and With the of and MacroStrategy, company people finance, second the Where exception a focused That few a intelligence. to the as know, in legal Bitcoin. our to acquire is upon MicroStrategy. and strategy, hold

continue media It's strategy. Our the to I Bitcoin. technology plan investors will institutional acquire advocate with the will benefits property. explain the of regard that, hold the of help the course, digital public, to we'll to corporations Bitcoin, very straightforward We'll to with regard to of and Along the to way, Bitcoin benefits to ourselves to to to regulators, Bitcoin busy, educating world a us is and the like keep that believe. continue be

this MacroStrategy, senior $XXX That offering. million we deal. was debt secured a our Pursuant did MacroStrategy. to MicroStrategy, big quarter, that So complete

did that deal time. price. that the We security accretive thought deal about it senior our interest thought we the It's that and was presented interest. very seven-year because thought was for note. reason that to XX,XXX did excited and were timeframe. that We $XX,XXX that a Bitcoin. using favorable We offering we at other that that it XX% it interest at proceeds good be debt favorable bearing X% very was very are a And we holders classes rate and that able a was around that particular a purchase We of itself Bitcoin the of to was a would

to Bitcoin we that Bitcoin. were acquired than than able more XX,XXX As higher average acquire more in slightly noted, the XX,XXX – at XX,XXX. quarter, Phong We entire price,

We progress was are us $X.XXX pleased point, At good quarter this very very see now Bitcoin. I comfortable to with the ending Bitcoin. with in that such invested we've XXX,XXX acquisition. billion and making

property because that or have stranded energy using you less Google of any to renewable, technology that's Bitcoin a technical nuclear can also companies, kind or solution a kind property or macroeconomic energy of Square represents or any that a PayPal solution want that capability, by Bitcoin this. and than technical mobile of I bit better. XXX% and and that gold a convey fact it's any solution. or of special feel and right been never into more it, or Bitcoin. protocol million a have really if property, those a grab is very for followed as to apps. doing understates equivalent digital a recycle generator, monetize like – could value, tech non-sovereign And think can value geothermal extraordinarily that running it there's who digital have digital stranded of it, digital gas you be going has makes you that stranded if land of you a thing, those mining. we calling to light Facebook you it big to of have a like wise it also to you billions you because the that will There as companies solution of right can at Apple natural implement a their energy they utilization, to because an a very ability strategic network, The time the at open on a XX program speed company Bitcoin is be an property now digital For acquiring move. is acquire a much than gold, digital dollars that or but disruptive store to energy, me the at believe can represents to technology decade. Bitcoin power, We successful a have stranded if write and mobile but wasted a It's this It's this

So Bitcoin can compelling add to views compelling have value businesses. It's value in now. and their a Bitcoin a solution they general and Exodus add macroeconomic millions tech. millions the on use And they China for how QX. it's to because decentralized, the industry so a technical can It's thinking own to dominated for A energy technical few news is Bitcoin you how big the right The compelling about people industry. solution solution. of Bitcoin

really world. Bitcoin. throughout think really good thing of for Bitcoin I mining Bitcoin China is the was was the a Bitcoin result Exodus decentralization security a The mining network. the

Bitcoin decentralization secure world and in you security was more shift saw of decentralized the mining the Exodus Bitcoin And holdings more holdings. east made Bitcoin of The west good of general the the made from the a the entire and to a and network the diffuse because Bitcoin also everywhere throughout nexus So it world. of decentralized. the rest China thing Bitcoin Bitcoin

I Bitcoin westernization the think Bitcoin. long-term is going that good be of to for

I the think for dollar. good it's U.S.

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of network second Bitcoin dozen with lots this miners to trend of other an either They going asset of into capital networks. developments quarter. And capital class. because is to and something our Bitcoin the entire And human saw are banks see have that's in in flowing on-ramps. applied Bitcoin. of the the are Large to We securing We ETFs are more funds. going aligning continual expansion coming a There finance capital Bitcoin. supporting network large to is it's Bitcoin, that exchanges Capital bringing saw bringing and digital the it's the network bringing western coming we these constructive a Bitcoin, western More Bitcoin public. adoption financial investors traded are public We to quarter. Bitcoin in are that coming dozen media. bringing Bitcoin companies thing. property supporting world new, bringing Now a technical Bitcoin more six with to network in are supporting credibility are are trend the they investors Bitcoin. the mainstream months. in capital miners Bitcoin digital many We Bitcoin form be being Bitcoin. good that all lot political the through of on of are the and beneficial to two Bitcoin or They institutional acceptance an of are publicly to public, exciting a be that They see and They are our second also property the to in more is for Bitcoin. Bitcoin. mainstream

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going are continue. this to we trend that see think I

positive, it's clear interpreted Bitcoin think an more more based a we taking as and last And regulators I of which mainstream Bitcoin, stay is, upon Bitcoin. becoming that in good things media here coverage to the so is are all these are interest for observation, think. this If add and I I

is And progress western we of need that's to I to the all think a institutionalize going these holding that it's asset. frameworks only I this class Bitcoin institutional they think and there get constructive asset we drive regard to investors that support is more the more constructive more dialogue, regulatory awareness of as world. lot activity think good and holding an an comfortable which throughout further. and and going the make enthusiasm to get think that I even Bitcoin And I with crypto Bitcoin, and developments, as comfortable for

So starting that, with software their offer industry Azure. focus big to to like traditionally trends. services with open they I'd to The industry, they're software might conversation big can we in platform compete switch shift my competed so to the AWS players cloud against, that that software have to and creating cloud use

that I business focus think has upon reduced divisions. their their intelligence

have are have that I big new cure to risky we to they'd the topline. dilutive the holding software their have look general, and at huge grow under were at of in don't that in in of to or have look macroeconomic acquisitions environment, under strategy grow, areas pressure sheet. kind that to vendors because they making the think pressure Bitcoin through full-stack to investments balance acquisitions on to or grow They expensive their order they're

important. we don't we And XX% very It's can keep in business. year. of more upon to that I good. a our than topline series have really a because So engage we XX% or focus need acquisitions the that's growing And think to core Bitcoin,

we up income and company. XX%, bottom excited growth our see operating in year-over-year XXX%, really growth you line our growth QX. the are our a revenues a very margin Topline number. business are able results non-GAAP XX%, XX%, is subscription because and by this our healthy, intelligence results this to our non-GAAP quarter I'm is become for really strong operating core we intelligence think best-of-breed is business focused I that business upon

analyst were bottom versus about $X.XX that EPS a year. share on versus a substantial last share, $X.XX $X.XX non-GAAP the Our beat that's so a share a $X.XX and estimates share line

are say, needless So with the to non-GAAP results. EPS we pleased

in second years. As pointed it's out, Phong our six quarter best

humming. are quarter, think management that CXO The worked worked all I a like senior better. During ever teams machine. gears the don't well-oiled the team really

Obviously, We plate. to on Phong doing ambition that a have a are and to Presidential search, of the decided we've more CFO pursue our lot to we on role. focus got allow

to grow aggressively. about are excited We continuing software business enterprise the

about opportunity. also our very to and adding excited strategy We us that Bitcoin allow to team this and management one more are the maximize role by

so And Jeremy? analysts up the questions that, I and floor investors. the to with and go guess open I'll the ahead from

Jeremy Price

right Thank to questions. into you, Michael. jump We're going

And for first so question Phong. the is

great in and competitive you of visualization are Phong. BI on on tools seen quarter. business expect Have years? on congratulations what First, the landscape do mute, any will the changes impact have the and You in coming consolidation you the your

Phong Le

good there. Sorry. I Jeremy. mute question. on Thanks Rookie was Move, It's a

mentioned the did So about changes quarter, all companies BI BusinessObjects, Google with competing have de-invested of thanks, a competitive know impacting I we are their and to good vendors, part focused AWS the landscape own cloud, of the are on a them, large SAP's platforms. the I the do with in quarter. IBM's Cognos, We transitioning really think in some really they've we’re really OBIEE. excited and and those Oracle's legacy Azure, businesses it. competing their BI a what's few And are mentioned Mike others, few

That's So the case a those seeing and that, companies they're execution of pace looking looking the inquiry platform. Cognos, logical are answer large for what especially in the migration BI legacy increasing And we're full off of are. SAP enterprises enterprise to because those and do BusinessObjects scale were an the platforms.

for bodes well so And that us.

saw we're five with that BI the right? to to weaker COVID a of very were some and we them with with into seeing last them and get we and very out in and it in other with for entrance start and that and players mining solutions, we're that something saw think seeing and get be the weren't case, that so the We not XXXX years The structure, growing. share, thing bought, well-capitalized, more pressures we or And now. consolidation, wither. the three years starting we're is of this especially capital directly. to last have we cycle niche newer is, similar And end competing And But either on lower came with get in strong even on thing competing in I tends their fewer good us. weaker

and as So focused stay over trends grow that’s some continue, seeing. on that few as product, based MicroStrategy. And good to for we're we trends next our focus on customer the think those on we years if of our the long can I continue

Jeremy Price

right. couple turn to All digital The of we'll environment questions, continues rapidly. to Phong. Thanks, The Michael. evolve asset next

So couple of questions.

digital focused have Bitcoin? thought First, other assets about across on diversifying if of a as staying instead you wondering just Ethereum

Michael Saylor

focus for Digital with cybersecurity the dollar problem an Apple, the is strategy opportunity of phone companies is right, Google, opportunity around is going on compelling the opinion Bitcoin Digital for for property people. billions problem with million and means Digital of open in digital We people property trillion a Digital technical for other is Bitcoin. light. their to and allow X that to at the a is property most the a mobile property mobile speed protocol billion decade. to XXX property phone. digital carry can across trust Facebook, the solution billions trade Amazon. property property upon our each Our is think the in of and to

if a so is solution solution. And compelling not compelling the Bitcoin that is

After digital investment The crypto assets medium places. exchange digital of digital strategy. and really an assets other just a currencies the have got you've digital but They're universe. own really in their crypto aren't currency, property,

the decentralized are a centralized holding digital and and Ethereum. against dollars, U.S. competing competing like completely The against exchange The businesses. – risk, platforms a compete platforms at technical There's in The competitive have essence have you currencies currencies. are applications to applications against are currency for you all But digital businesses top There's it’s competing of the not that lot there's risk, are platforms they're applications. decentralized businesses. in investment. lot existing there's there's have of think parts different uncertainty. consider. Uniswap to market centralized something on a platforms. of a I I risk. regulatory decentralized When those, look moving holding digital are you just is like and Those Ethereum strategy So have Then digital they different like

because Bitcoin assets. mean in So consider one sense is it other just that crypto doesn't the to involved makes

or involved guess we the to have I'll to stay make There more to two I any crypto here. world. one point going are get other see don't digital So with assets. other We're intention ways focused. assets

product, and of look ask the plug I plug I I every Facebook, it at Amazon, insurance the opportunity. it take every way plug service, into Azure. Economy what's into plug every into and evolution Crypto PIMCO, create into I it the AWS, mutual If into it BlackRock, it it plug into it One into into plug system, I to if and plug Windows, it the Cloud, operating fund, every and Fidelity, Google, digital I property into I iOS I every plug device, every you I crypto offering, see I it plug I I you into into Android it into plug into Apple, the world is Bitcoin,

everything of into better. a And it. I can Bitcoin big see, value it plugging You just plug economy, if you makes by a the you're into of Bitcoin. all company traditional could entire tech theory, and In Bitcoin, trillion $X plug you generate the into property digital

So that view every one Bitcoin better. them product, every the digital make every and every protocol, CEO, service, every Bitcoin improved open mayor, by of of world, By be it, to is the every building That's to corporation, the into be governor, vision a to plugging everything of our happens this every property everything. can every government world that in you're service, world. into every every view and fixes right? Bitcoin agency product, is the world going benefit

you or you a everything, you that, believe you don't buy Google, own own own don't you product, don't a you Bitcoin. own you don't Facebook, own some own but own you government, don't to don't have country, Apple, don't a If and assets you

the You world. into Google you're That's product, Facebook, Bitcoin then and and them. you buy when buy of because Facebook, Amazon, Bitcoin of the one afford can't so to all Amazon, their that view Apple, Apple, build beneficiary Google,

other is comes creation the come in that is, is We other that, value innovating view Our right? all cryptos to other believe is decentralized activity crypto and area. the that or don't by belief extraordinary of world asset the innovation creating going opportunity networks, by happen to buys these sheet. technical integration. happens the and balance and of into the plugging happens by it more raises financial any a Bitcoin it and Bitcoin balance billion If happens $X simply New the overnight, New city York, and city not of through of fixes your it York The with sheet innovation,

compelling to then that's to express then the top tech world, Bitcoin will then to we benefit. on diversified of as to CFI long benefit. other think strategy. traditional managed and general in are don't believe benefit risk. investment build are this know the We if We least and regard and strategy governments, XXX,XXX benefit Bitcoin, in that that XXX,XXX Bitcoin. pursue And will strategy. application compelling the hold most think we to why risk companies, platforms which the will still traditional that universe simply Well, you So case because will other sounds that If applications applications use wish there investment Bitcoin there of opinion Bitcoin, the most should will we strategy. complicated. big It's our is diversify or We pursue. they an hold investment property or which And platform, banks, decrease crypto as successful. use a Bitcoin I take with of Bitcoin and are risky, diversified a technologies which be traditional People corporations any we

what do we why we do. that's so And

Jeremy Price

either digital one we're Bitcoin use drive And Mike. the – updates business balance the build that of on our the how wondering the Thanks core one. any balance? if inherent person drive on the to QX, follow-up is sheet you asset further financing balance business, exploring core but on value sheet, the or with to in help to strategy have Clearly this quick

Michael Saylor

our Well, interest look are those accretive from we'll is then account take opportunities. Yes. in and view that for our balance time-to-time, with market considerations the future we'll And regard sheet to find opportunities shareholders. we'll of decisions into

Jeremy Price

Why question billion in you. Phong, is Michael. for and equity X next buy more And you, Thank didn't the Bitcoin? company issue the

Phong Le

Yes.

to to September begins, open during period, we which to is which we're here, I think in quiet to able period XX, able September issue market. be out in as that put the that – So equity. not before in the billion $X right is we're next issue issued XX. referring shares period, until we day our And And put-out-of-shelf

Jeremy Price

that then continued or around more so with And growth from current modest net one especially and in you this for solutions. expectations you SaaS new trending Phong. mix hyper expansion or against the higher new do seems your dozen How Subscription is feel are customers customers? revenue rather

Phong Le

Yes.

grew So were subscription which revenues pretty we XX% year-over-year, pleased with.

had this more done that. thing thought be that basis. quarters in do The in five maybe what that If done where growth have is you're referring billings contract a think conservative values that a is in for And different but include decline the longer no primary past. a double-digit here QX, subscription previous would growth, XX%, the would we quarters, straight we the I future We there, grew we toss previous quarters. we is in to of XX%. bit billings, go-forward of versus which had reason a same are up subscription seen we it to had that’s on of ways it's invoiced

and see the business of think of overall. forward, growth. still So a was going XX% quite subscription the strong if you normalize see billings cloud of level sort subscription We I in bit quite growth billings that it, we'll growth

Jeremy Price

will walk And to you business Bitcoin back some when raise debt lending Bitcoin future Michael, yield? evaluate determining have to Thank to much to purchase or the you, you Bitcoin? equity the for Phong. raises room does consider additional And how or through fund Can purchases? debt MicroStrategy factors you. equity of

Michael Saylor

single price Bitcoin. We going market at history. trading in We adoption trends. outlook. on economy? the institutional outlook status the with disposal. regard outlook general all software What's We own macroeconomic being stock and We look We markets come look We the that our for is Bitcoin public, the markets We mining both at going markets the of rates a technology the is lot Bitcoin flow a look also a institutional of the We the market? at Bitcoin. look equity the markets our look derivatives into about for mining is dollars market also the compile our our We at We Bitcoin. all We may the own macro the for to consider the convert We they're income look Bitcoin the the at and markets convert debt patterns. try and then capital going raises markets traded. trading the business. core and to integrated. flows spreads. and with the huddling at in at mining. and at those the to Bitcoin of the and consider markets at we miner and stock. We in also the markets. for miners of We We on of factors. look way views. of fact the Bitcoin. that the And think look futures outlook markets maturity look liquidity network, look different history. of And dollar futures stock and information it's And We equity the our at at and change as look markets general ratio dollar in those interest of industry, the the the of look that those how the Bitcoin Bitcoin at Bitcoin markets. to trends look available We options What's We look – the Bitcoin the getting and every into be debt and flow at a fixed of and and at billions degree better look at that the general at as capitalized.

our view the environment, the we that rear and and be is that think all accretive can regulatory we mirror take. we we FUD our consider that we FUD forward then things, in after to and of the And overall there activity an asked try in mirror. those question, will assess So that's the may

to a back our to stock Bitcoin. we’re August going buy that buy auction. That to And year, sometimes In the announced last we accretive Dutch be buy activity of stock. would was

And to is sometimes treasury cash. existing activity accretive the convert

that And sell accretive done convertible twice. debt. is activity sometimes the to We'd

activity just really to and to maybe from And accretive debt. depends. is time accretive the activity the sell Sometimes secured that senior to sell equity, time,

are all subset those – we of a consider. So that's the factors

you all the that to it thinking in make act we So that order time can sure about we're appropriately. be sure

Jeremy Price

for Michael. you. you, huddle your Can behind Phong, to entity rationale next creating separate question Thank explain a Bitcoin? you the

Phong Le

Yes.

being of than So it make secured when and our BI we secured to had was notes, our business. The sure and that. ownership MacroStrategy a other cool primary we issued created we it LLC, was wanted name against reason we

XX,XXX secure need So our at point that not had to we in the time debt. to that we use Bitcoin did

entity for so those XX,XXX Bitcoin our created BI to And a we separate as separate business.

So that the set was primary reason up. it we

Jeremy Price

what owners next years, one broader out you with by adoption led And Mike, catalyst you Or begin a companies? expect of the to over more adopting that do drive think founder-led to industries to cryptocurrency? largely two savvy diverse do looking And adoption? set and you be the other next are tech expect to institutional companies do

Michael Saylor

in would assets commodities. hedge gold that bought hard or see from adoption whatever actually or have macro coming invested funds I institutional

Bitcoin their and now digital got property getting the like Apex record on is that digital Now commodity and track a radar multi-year of they've Bitcoin a gold. as outperforming

flow to think Bitcoin. there's from investment funds into that going that that's I funds digital gold money is a of lot and gold

starting operating a my that family through seeing my individuals on. activity because hear you're an eye, long I'm interesting duration the money I lot They're If going see that of I are wealth it's having asset. private they're need lot then to investing money, a to but give grandchildren, high a back of channels, public to strategy. net very private think out that as worth generational a preservation offices, I of Bitcoin investment

from interest offices. I was of that published indicated about think Bitcoin Sachs Goldman survey week family lot a where they a there in ago, did was a

in Bitcoin public where they that to they will terms enthusiastically you founders understand that charismatic companies, digital that because And start thinking it. is you the clicks realize you mind, be digital that crap there's digital music, Bitcoin moment, retail, different, then that think nuance. public think property, if maps, property a digital are disrupted it in then takers digital embracing to founder-led see to about video, technical oh only companies books, don't think competitor I go and you from then if movies, embrace in have you you certainly going it be massive do you companies not digital understanding understanding it you're the disadvantage. it, a and your embraces had but risk digital once most of technology that companies will The And your differently. not understand then different it,

property communications You company big wouldn't into billion digital integrate your Bitcoin network billion into bank last the want tech to to cyberspace. user protocol turns digital the be because in a customer

to it is anybody and application a that think extraordinary network, PayPal. establish need it and response us time, bank international start allows because you either Bitcoin. the a big than cash. themselves success because is founder-led example, in traded they all want example from now get so in Square front to you there's can value out embrace an going in is to to of other Bitcoin do reasons. right competitive I do They another mobile think will Square’s the to of cyberspace, publicly or that into companies implementing that is tech cyberspace. companies right turn figure see and which forced aspect Bitcoin, of And trust digital their will And I – to into Bitcoin to I mean, with see for application use they sooner mobile it you had

or are allows like got you protocol. cybersecurity and you you or is network of interchange Amazon way have rapid Apple, plug that a for or open that if can a issue. them So online, The on people Facebook actually value into you've Google cybersecurity deploy the an posting Bitcoin

implement attacks, to If attacks. network open protocol like that denial-of-service fight then can use you can DDoS you Bitcoin, monitoring

to and fight to it spam. use can ameliorate or attenuate You

create and hostility of shutdown to new it use can degrees You cybersecurity.

also and – important a for think forward it's Bitcoin the So is cyberspace. And secret bank technology going companies. all I the cybersecurity in these issue to it's really this of really is

the at to they of wrong and ignore future really would And of ignore the it's that, so security financial can't afford And those cybersecurity. that the companies future peril.

I companies months, on. more of time think the be that adoption you’ll see I I public think will it. six a to then regard And of goes to And lot you'll area with regard it see with that last visible. as give think

or that They're or of Every that's an Exchange. month with the an or public do traded every a a merging to foreign publicly New that's coming miner new just You're weeks, either miners. to public. IPO, going a few NASDAQ they from to SPAC, company like are announcing going York there's exchange, avalanche the or they're a or Toronto they're Stock moving see Bitcoin public, Bitcoin they're Exchange the

balance balance billions the you now, back find clock or lot catalyze dozen months, company on to, of a got a it's dozen sheet. what and and roll all when three million that's $X two hard class. have companies there's they've going maturity to their asset with more publicly traded because billions of on dozen If sheet. any of company, the XX material of dollars of any happens exposure Right to Bitcoin a their Bitcoin But or with they that there's think I Bitcoin

Jeremy Price

Thanks, Michael.

you. you to time, closing from Michael, back turn closing remarks. We so of for going are I'm it out to remarks

Michael Saylor

Yes.

without our shareholders, And for of I XXXX you. look support. for appreciate us again speaking Okay. of three you forward will I couldn't months. we webinar. financial We QX your want to To with thank in with all results to being all everybody our do

care. take then until So

MicroStrategy (MSTR) 30 Jul 212021 Q2 Earnings call transcript