MicroStrategy Reports First Quarter 2015 Financial Results 

MicroStrategy Incorporated, a leading worldwide provider of enterprise software platforms, today announced financial results for the three-month period ended March 31, 2015 (the first quarter of its 2015 fiscal year).

First quarter 2015 revenues were $123.9 million versus $137.9 million for the first quarter of 2014, a 10% decrease.  Product licenses and subscription services revenues for the first quarter of 2015 were $27.4 million versus $32.3 million for the first quarter of 2014, a 15% decrease.  Product support revenues for the first quarter of 2015 were $69.3 million versus $71.5 million for the first quarter of 2014, a 3% decrease.  Other services revenues for the first quarter of 2015 were $27.1 million versus $34.1 million for the first quarter of 2014, a 20% decrease.  Foreign currency headwinds had a negative impact on revenues for the first quarter of 2015.

Operating expenses for the first quarter of 2015 were $74.1 million versus $113.2 million for the first quarter of 2014, a 35% decrease.  In addition, during the first quarter of 2015, MicroStrategy capitalized $5.4 million in costs associated with further development of its MicroStrategy Analytics Platform while no development costs were capitalized during the first quarter of 2014.

Income from operations for the first quarter of 2015 was $22.6 million, as compared to a loss from operations of $8.3 million for the first quarter of 2014.  Net income for the first quarter of 2015 was $20.5 million, or $1.79 per share on a diluted basis, as compared to a net loss of $6.5 million, or $0.57 per share on a diluted basis, for the first quarter of 2014.

Non-GAAP income from operations, which excludes share-based compensation expense and restructuring costs, was $26.3 million for the first quarter of 2015, as compared to a non-GAAP loss from operations of $6.7 million for the first quarter of 2014.

As of March 31, 2015, MicroStrategy had cash and cash equivalents and short-term investments of $391.8 million, as compared to $345.5 million as of December 31, 2014, an increase of $46.4 million.  As of March 31, 2015, MicroStrategy had 9.3 million shares of class A common stock and 2.0 million shares of class B common stock outstanding.