MicroStrategy Incorporated (NASDAQ:MSTR) Q2 2023 Earnings Call Transcript August 1, 2023 5:00 PM ET

Company Participants

Shirish Jajodia - Vice President of Investor Relations and Treasury

Phong Le - President & Chief Executive Officer

Andrew Kang - Senior Executive Vice President & Chief Financial Officer

Michael Saylor - Executive Chairman

Conference Call Participants

Operator

Hello, everyone, and good evening. I'm Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I'll be your moderator for MicroStrategy's 2023 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. Actual results may differ materially from these forward-looking statements due to various important factors, including the risk factors discussed in our most recent 10-Q filed with the SEC. We assume no obligation to update these forward-looking statements, which speak only as of today.

Also, during today's call, we will refer to certain non-GAAP financial measures. Reconciliations showing GAAP versus non-GAAP results are available in our earnings release and presentation, which were issued today and are available on our website at microstrategy.com.

I would like to now welcome you all to today's webinar and let you know that we will be taking questions during the Q&A using the Q&A feature at the bottom of your screen. You can submit questions throughout the webinar, and Michael, Phong or Andrew will answer questions at the end of the session. Please be sure to provide your name and your company's name when submitting your questions.

Now, I will walk you through the agenda for today's call. First, Phong Le will cover the business results for the second quarter of 2023. Second, Andrew Kang will cover the financial results for the second quarter of 2023. Then, Michael Saylor will provide a strategic review and discuss the recent bitcoin market updates. And lastly, we will open up to Q&A.

With that, I'll turn the call over to Phong Le, President and CEO of MicroStrategy. Phong?

Phong Le

Thank you, Shirish. Hello, everyone. I'd like to welcome all of you to today's webinar, and I'll start with the highlights of our software business. Our total revenue results in the second quarter of 2023 were mixed with challenges in product license revenue, balanced by strength in our cloud business. Revenues were primarily impacted by an uncertain macroeconomic environment leading to longer and delayed sales cycles. Growth in our recurring revenue illustrates the durability of our enterprise-grade platform and continued traction in cloud. We also saw continued strong profitability as we thoughtfully manage our cost structure.