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| Shirish Jajodia | executive |
| Phong Le | executive |
| Andrew Kang | executive |
| Michael Saylor | executive |
Hello, everyone and good evening. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I'll be your moderator for MicroStrategy's 2023 Fourth 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. the materially including forward-looking in statements, the recent filed differ various due our which may obligation XX-Q factors, no of important risk with speak results only from these today. statements these to most to as Actual update assume forward-looking SEC. We factors discussed will Also, we certain financial refer during today's measures. non-GAAP to call, are Reconciliations microstrategy.com. which were presentation, earnings release showing GAAP and at versus website non-GAAP today results available and are our available in our on issued to all call. today's [Operator I would you like the today's welcome walk I'll for through webinar you to Instructions] Now agenda
results First, strategy. Phong Le and will the pillars cover business the our business of key
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Andrew. Thank I'm the Chairman Executive you, Saylor, Michael MicroStrategy. of
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we're We point the are the leverage markets reinvest markets. would to been our to expect we this, to extent that to able have, to very have capital acquire this bitcoin continue shareholders. want to into is cash we make be when fortunate do And I believe, to acquisitions. And to to that be able is accretive that last able leverage There no we very the companies bitcoin. to the capital
the with We And ways have past. all senior X we've possible we just We've are consider convertible in secured look issuance. We've bitcoin issuance. with capital forward, acquired those debt bitcoin issuance. opportunities. And to it debt equity market as going acquired with acquired done bitcoin we're
any perhaps unsecured equity this ATMs. Perhaps or of prudent? notes, the And discussion of shareholders? our just leverage beneficial to would for to creating perhaps And shareholders. So try good ask with bitcoin debt, with We our equity We just want would then debt. accretive? continued preferred we ourselves our undue uncertainty. to that And leverage like too to leverage, or that's shareholders with this Is want to pick structured perhaps is of is benefit we be debt, allows going without route acquire us we evaluate equity have amount open. all options. options us convertible secured leverage, this keep question, right our course, the Perhaps also, much. We perhaps don't be the of be, other for to types a our
bitcoin So capital this markets, markets of debt quarter, the quarter-by-quarter. ours, every the expect opportunistic And is single evolve. will course, the of exercise we market, an ongoing
pride we as And able being they and advantage opportunities so in being equity to ourselves take did of nimble issuance. with present we QX on themselves, as our
to Sometimes it's go appropriate fast.
slow. go to appropriate it's Sometimes
clarity as well thing nothing Sometimes that to we take our to we growth we will regulatory wait of opportunities the era a nice present that, believe to more better right healthy presenting the is very but such spreads see The ours, floor advantage with corporations for world. And institutional these adoption institutional questions. themselves we're investors years. It Shirish the it many, many as coming guess themselves. be do And I'd believe the over of that it's and as for to structured now have for opportunities XX become and as period, I pass we very, investors won't like about present bitcoin to appropriate be first the retail everywhere more like situation bitcoin XX in and options. in and of opportunities all years, they aware
as the little more X any R&D development more can can will company into that? elaborate And mean We're you going if bitcoin company's Phong, first different the you new Michael. layer questions. you on Phong. you, and into the does R&D? is be a jump If this the to on question and applications? of for allocating positioning And elaborate allocation lightning Thank
the Thanks, Shirish. question. And thanks for
value long I I company. Mike We and a quick positioning think at bitcoin or our did a and our unique nice the development proposition. right positioning and words and prepared release press hard remarks explaining actually look, thought take long suggest as job about the of to a our that. describe a look our really everyone
development. will we in not into of business It piece, and cloud-based intelligence R&D more bitcoin invest be the development. AI and R&D at software the expense our will software On
reveal Lightning you've looking where that will X at security Some our seen implemented doing, network. We're some the Conference. blockchain Corporations that Event also at things and bitcoin our on program MicroStrategy the been a applications we'll at year, layer things rewards we that lightning some World technology, Bitcoin next for last we've of the leverage MicroStrategy native World
development some out excited we're coming capabilities excited we're it. very software be the overall, about So able of that of about we'll bitcoin to create
for Andrew. question next The Great. is
about talked for plan to bitcoin cash you You proposition acquire MicroStrategy. and excess the highlighting value XXXX? How leverage, do more in
Thanks for the question.
options all I cash, markets. believe to the equity different and issue minutes excess also but remarks. think his could us, through debt that capital includes of all few the we well of which up really I it the last we Michael have in summed forms available
think that I we'll the we've those more done to are past, use levers as acquire the in bitcoin.
to for I offer opportunities do so. us think will XXXX some
of types issued additional always to issued capital certain the think market what similar is And most we've to I we the equity opportunities price be the in will access I We've with markets. there increases as accretive. different debt look in We've which of to bitcoin, our increasing assess value said, think will markets. markets.
the demonstrated track our complex record think to of through I those ideas. think we've ability
alluded to Michael we available us all of bitcoin think to, options those as acquire so to have And in more I XXXX.
next question for regarding is cloud. The you. Thank Phong
elaborate to transition And how the clients from looking is cloud on of converting timing please overall? progress can license? So software the of you
for revenue revenue. now our Yes. year is surpassed One, surpassed X, subscription pivotal license pretty has a services revenue us. our our subscription revenue. services XXXX product services our other has And
maintenance It's transition. behind And now so the item pay revenue that us. is a pretty on-prem line customers biggest which product big support, the that represents second
said, is milestone of revenue as major I'll we to from a than in recurring point of a company milestone near, which the $XXX have very give data any or is less our pretty ARR transitioning on-prem cloud. That major are we're cloud. software in million and exceeding XX% cloud, the for we the the you Another for us still
that a than major XX% opportunity, pretty still to there's need on-prem of we So revenue greater move.
is to GCP. our customers existing think I terms getting Reasons be moving AWS, a and of and I move talked cloud. Microsoft, is Azure, our to in new customers including the XXXX that hyperscalers, partnerships acceleration more cloud Amazon, One with going the year for to Google about. to
private to the maturity is our we're offering, and cloud this a out the container-based, offering that technology reason going microservices-based of year. fact Another roll
we And we've more So behind for say would have and in of entire of the the ready organization we roll. most to will opportunity a the company the the And move cloud. probably in terms progress, year XXXX aligned the important to our history but our to lot of to customers moving have I it be cloud. seen transition
initial AI contribute Thank you. of product the is The margins? do reception next this question Phong. product to also How's the think for mix or profit and will what you
of actually it's are the think a I in like market. lot products that AI
I'll went everyone, in with we BI GA our September. First, product remind AI plus
growth drive build further. side in it's if our use in and plus trying cloud exciting about our in going are further starting migration the of what customers to accelerating is September, production cases have the AI even AI understand native therefore the to end product are it. And with The you getting we we only doing ago, is done months to is space cloud kick were to X BI really so. have a who the essentially the of around ago. we're first tires, And And X excited lot play effect, that are will, because cloud, available So BI. what it, months
of significant revenue to ARR. the customers yet, our cloud. subscription not real it to previous show our that'll and CIOs, we're is in all XXXX, in us seeing AI our revenues could COOs it's revenue We're migrate And the to cloud. And the workloads to want this the will cloud question, our we're move a MicroStrategy already. seeing services back may driving transition in extremely how to to that but and increase be while saying, what up and So our significant not positive gives be, be to directly important reason impact happen CEOs, of
Thanks, Phong. The for debt the next maturity. question is regarding Andrew
can address do XXXX plan pursue? convert the upcoming and the different you to company are maturity what So ways how your
note, getting gives being a conversion a guess XXXX. price, think timing these that our before opportunities figure they have December at I ample types equitize to right, But first said, are that time could, us could the managed closer and good that I we still Shirish. continually Thanks, of in time arises to clearly amount option. evaluating we from that's perspective of in to questions. out one always maturity we're market of the course, regards maturities XXXXs. We We've
I us exist converts, those there further. potentially could which think send options maturities other even being able out and out allow to to refinance
months. be coming would think that very I all on course, market Of think something consideration the we're in it's I keep based that we'll point everything. But is, the conditions. evaluating And close
here, spot given question eventual of coming for Michael in are as ETPs a of last of the time. How SEC one ask money? the we I'll And to bitcoin of acceptance form Andrew. that important is of terms legitimate bitcoin end Thanks, mainstreaming the
think it's tremendously I Yes, important.
that to amongst industry. matter pretty course, And They've call. in phone is second trade gold, a leader rapidly. bitcoin to investors ETF of point a the demarcates institutional of of the XX screaming eat of board the up the attention out commodity ETF. It in oxygen mainstream fairly the adoption offshore, success the have already top of And someone the think the investment for just in already It's We see era sucking the versus I of era ETPs path and marked the an very unregulated now value. spot on a it's crypto getting clear a inflection can now marched these the bitcoin the world ETFs ETPs to it buy room, as by community. their launch. They're monetary and easy regulated gold's sell history subsume onshore been bitcoin. gold adoption ETF takes all approval all retail of a a the bitcoin
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the So industry. this the normalization and bitcoin adoption has of throughout finance traditional catalyzed the
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the banking in first it's spreads traditional So but the then industry into entire commodities, bitcoin regulatory mainstream and the to entering bitcoin with the media. that, the education more conversations, beginning coming It's the big college startups, organizations, in political it's technology campuses U.S. And doing onto about takes and tech throughout it's legitimacy much institutions over frequently companies. be conversations finance as and talked conversation, and
in many a States. about other lead lot So U.S. just their for a surge acceptance event catalytic And regulators. throughout from We're is already talk outside leads more take seeing in And global bitcoin this U.S. global that the general, United of the and bitcoin interest. to countries massive a
to the asset true, be and legitimate. just And good oh, be skeptics aftermath X they in South to a Asia going something then to going discussions structure the you've the volatility seen like as got approval. Facebook. investors there And and the Kong. But to then any to deniers traders used a that were classes. was already well, that the of thought banned. trade tulip was in we or then bulbs it product you've SEC it's the There little tech There I it's recognize they trade. And is thought, to were it's you'll So investors it's maybe Hong of too spot that fun an Apple, for it because not similar bitcoin think, and like be got the big the next decrease company, Africa, see a it in America, that Europe, dramatically have bitcoin ETFs of resistance think an
and or the random of make and think legitimate a on the in kind the skeptics the then as a but deniers counterfeit well, And discredited approved no significance place. And this ridiculous. been not It's economic sovereignty think way find world it's if empowerment. that the being you've and is way can a store maximalists That there's a buy instrument maximalists got value freedom silenced. the approval fake, my to a I'll to the So something of ETP maximalist of better say, to an we spread is way of tech it's it the bulbs, and and portfolio. course, global on of tulip SEC are Twitter, SEC that it's have would you have asset, a
store going the can value, So the I you, too as the skeptics, such, of beginning be to deniers ones threatening lot asset, but to said a be of And asset, the endorse medium really and thought as it it's well, to get sell of banned. And the dollar. currency it's credibility you, it asset. It's to it have it's good the it'll going establishment, competition so a too can they maybe not of ones a not maybe to a it's anymore. if don't now be were an and speculative to exchange the it's they true And banned, not not typically, that for it, that and views a they're they're realize that as If BlackRock Fidelity a currency no, being but sell substitute. banned. the establishment to this a
entire an of as shifted deniers for positive increasingly investor, has is either skeptics a So toward or asset are profoundly the bitcoin an a out touch and looking this maximalist. And investment right picture. out trader, The and being the are of the class. auspicious community
is and You is the and put spreading everywhere world. spreading together these awareness support things in
financial look it, at and piece a a maybe a not research some on you should you're or this or working can maybe X, probably institution consider about X it, fired, trade something on to we if X, Now that it, write ago. or going we to was and whether that wasn't it easy it. And years a at bank do say, really you're hey, or custody build product get consider
a banks shifted the makes it Bulletin say to lobbying for to even where and In custody point Staff of that Accounting bitcoin. fact, revoke lot XXX now political difficult we've there's even mainstream
So asset. asset, there's do to to a asset, the business allow lot normalize with embrace to of political pressure to this the companies
to beginning entire ETP network. the was and the in really or the really do world invest of to with launch their was everywhere this material bitcoin. And support of begin material of so business capital, or institutions to for event energy, that amounts their reputations or amounts think necessary the I growth and risk it to catalytic the of time, next stage bitcoin of And brands
we're X.X And so like into only weeks it.
will see them We're manifest of being all companies, I to and catalyzed But positive many do bring see see the we to to over countries themselves more this. many hard that many, it's so increasingly more And year-by-year. quarter-by-quarter are investors developments positive time by believe the and more many and many developments and more bitcoin to utility world. bring many that organizations, many, going
questions but Great. you for we received and Thank you so thank everyone questions. great much, would attending the so couldn't that many asking to answer, like we Michael. We
webinar. I try will Phong the of will concludes in the closing portion to this to Q&A for our these now future the cover turn call But remarks. over We remarks.
of today, us I being for continued Yes, everyone for to your thank support MicroStrategy. with want
that wrap of you and from to Vegas, will intelligence And Conference There business for be Nevada. further held April I'm Las track. share expand can and Event. And next had Before looking open a website found details live MicroStrategy World it's we us XX up, in be at that microstrategy.com/worldXX. are and event. can Registrations on will a we'll our a corporations that pleased expect on kind interact World today with to We're lot a a our May customers, we page, discussion of bitcoin in-person X great track forward one for at in-person. the be additional and you excited shareholders this to to event prospects MicroStrategy way seeing and
seeing you, good well you bitcoin in ever you as enterprise are quarter enthusiastic not both as Thank as MicroStrategy if as We a our We our with look weeks. and again all. XX strategy. World, wish at forward software to strategy again,
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