MicroStrategy Incorporated (NASDAQ:MSTR) Q1 2022 Earnings Conference Call May 3, 2022 5:00 PM ET

Company Participants

Shirish Jajodia - Senior Director, Treasury & Head, Investor Relations

Michael Saylor - Chairman & Chief Executive Officer

Phong Le - President & Chief Financial Officer

Conference Call Participants

Shirish Jajodia

We'll get started. Hello, everyone, and good evening. I am Shirish Jajodia, MicroStrategy's Senior Director of Treasury and Head of Investor Relations. I'll be your moderator for MicroStrategy's 2022 First 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 welcome you all to today's webinar and let you know that we will taking questions using the Q&A feature at the bottom of your screen. [Operator Instructions]

With that, I will turn the call over to Michael Saylor, Chairman and CEO of MicroStrategy. Michael?

Michael Saylor

Thank you, Shirish. I'm Michael Saylor. I'm the Chairman and CEO of MicroStrategy. I'd like to welcome all of you to today's webinar regarding our 2022 first quarter financial results. I'm here with Phong Le, our President and Chief Financial Officer.

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

Phong Le

Thank you, Michael. We continue to be pleased across both our corporate strategies in the first quarter of 2022. Here is a summary of our first quarter software results. Revenues declined 3% year-over-year and were flat on a constant currency basis. We saw some revenue headwinds in Q1. This included a more challenging macroeconomic environment due to war in Ukraine, a tough comparison in Q1 2021, where we saw license revenue grow 69% and total revenue grow 10% year-over-year, and ongoing cloud growth, which has a short-term negative impact on product license and total revenue.