MicroStrategy Incorporated (NASDAQ:MSTR) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET

Company Participants

Shirish Jajodia - VP of IR and Treasury

Phong Le - President and CEO

Andrew Kang - Senior EVP and CFO

Michael Saylor - Executive Chairman

Conference Call Participants

Shirish Jajodia

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 Third 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 be taking questions 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 third quarter of 2023. Second, Andrew Kang will cover the financial results for the third 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 earnings webinar.

I'll start with the highlights of our software business. Total revenue was $129.5 million, representing an increase of 3% year-over-year, total software licenses revenues which consists of total product licenses and subscription services revenues. And our consolidated statement of operations were $45 million, representing an increase of 16% year-over-year.

Total software licenses revenues performance benefited for both increased adoption of our cloud platform and growth in product license revenues. Total subscription services revenue was $21 million and increase at 28% year-over-year. Our Q3 subscription billings growth was 17% year-over-year. We achieve good revenue results in Q3 with year-over-year growth driven by our cloud business and a strong international license revenue quarter.