MicroStrategy Inc. (NASDAQ:MSTR) Q4 2019 Earnings Conference Call - Final Transcript

Jan 28, 2020 • 05:00 pm ET

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MicroStrategy Inc. (NASDAQ:MSTR) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the MicroStrategy Q4 2019 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference to your speaker today, Michael Saylor, Chairman, President and CEO. Please go ahead, sir.

Executive
Michael J. Saylor

Hello. This is Michael Saylor. I'm the Chairman, President and CEO of MicroStrategy. I'd like to welcome all of you to today's conference call regarding our 2019 fourth quarter financial results. I'm here with Phong Le, our Chief Operating Officer; and Lisa Mayr, our Chief Financial Officer.

First, I'd like to pass the floor to Lisa, who is going to read the safe harbor statement.

Executive
Lisa Mayr

Thank you, Michael, and good evening, everyone. Various remarks that we may make about our future expectations, plans and prospects may constitute forward-looking statements for the purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in our most recently quarterly report on Form 10-Q filed with the SEC. These statements reflect our views only as of today and should not be relied upon as representing our views as of any subsequent date. We anticipate that subsequent events and developments may cause the Company's views to change. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so.

Also, during the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliation schedule showing GAAP versus non-GAAP results are available in our earnings release that was issued after the close of market today, which is located on our website at www.microstrategy.com.

I'd now like to turn the call over to Phong, who will provide a summary of our fourth quarter operational performance.

Executive
Phong Le

Thanks, Lisa, and thanks to all of you for joining us today. MicroStrategy delivered solid fourth quarter results that capped an important year for the Company. As you recall, we made significant investments in our product and people and we saw positive results from these investments. In particular, we introduced the most innovative set of products in our 30-year history with the release of MicroStrategy 2019 and HyperIntelligence, improved our go-to-market and customer experience and drove operational efficiency across the business. MicroStrategy has established itself as one of the largest independent enterprise business intelligence companies in the world. It's entering 2020 with a much stronger products, teams and financial position than in previous years.

Our primary goal in 2019 was to drive adoption of our newest products, including MicroStrategy 2019, HyperIntelligence and our managed cloud platform. We ended the year with 740 customers having upgraded to MicroStrategy 2019 and 175 who have purchased HyperIntelligence. We added 71 HyperIntelligence customers during the fourth quarter alone, including The Co-operators, a large Canadian financial services company, Saint-Gobain, a large French building materials