MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of enterprise software platforms, today announced financial results for the three-month period ended September 30, 2016 (the third quarter of its 2016 fiscal year).

Third quarter 2016 revenues were $129.9 million versus $129.5 million for the third quarter of 2015, essentially flat year over year. Product licenses and subscription services revenues for the third quarter of 2016 were $37.3 million versus $34.1 million for the third quarter of 2015, a 9% increase. Product support revenues for the third quarter of 2016 were $72.5 million versus $71.4 million for the third quarter of 2015, a 1% increase. Other services revenues for the third quarter of 2016 were $20.2 million versus $24.1 million for the third quarter of 2015, a 16% decrease. Foreign currency headwinds continued to have a negative impact on revenues for the third quarter of 2016.

Operating expenses for the third quarter of 2016 were $77.0 million versus $74.1 million for the third quarter of 2015, a 4% increase. MicroStrategy did not capitalize any software development costs during the third quarter of 2016 or 2015.

Income from operations for the third quarter of 2016 was $30.0 million, as compared to income from operations of $30.7 million for the third quarter of 2015. Net income for the third quarter of 2016 was $26.6 million, or $2.31 per share on a diluted basis, as compared to net income of $23.9 million, or $2.06 per share on a diluted basis, for the third quarter of 2015.

Non-GAAP income from operations, which excludes share-based compensation expense and restructuring costs, was $33.4 million for the third quarter of 2016 versus $35.4 million for the third quarter of 2015. The tables at the end of this press release include a reconciliation of income from operations to non-GAAP income from operations for the three months ended September 30, 2016 and 2015. An explanation of this non-GAAP measure is also included under the heading "Non-GAAP Financial Measure" below.

As of September 30, 2016, MicroStrategy had cash and cash equivalents and short-term investments of $578.9 million, as compared to $485.7 million as of December 31, 2015, an increase of $93.2 million. As of September 30, 2016, MicroStrategy had 9.4 million shares of class A common stock and 2.0 million shares of class B common stock outstanding.

Conference Call

MicroStrategy will be discussing its third quarter 2016 financial results on a conference call today beginning at approximately 5:00 p.m. EDT. To access the conference call, dial (844) 824-7425 (domestically) or (716) 220-9429 (internationally) and use conference ID 87893779. A live webcast and replay of the conference call will be available under the "Events" section on MicroStrategy's investor relations website at http://ir.microstrategy.com/events.cfm. The replay will be available beginning approximately two hours after the call concludes until November 3, 2016 at (855) 859-2056 (domestically) or (404) 537-3406 (internationally) using the passcode 87893779. An archived webcast will also be available under the "Events" section on MicroStrategy's investor relations website at http://ir.microstrategy.com/events.cfm.

MicroStrategy Desktop™ Available at No Charge

Earlier this month, MicroStrategy announced that MicroStrategy Desktop is available at no charge. Users new to the field of analytics and business intelligence, including students and young professionals, can leverage MicroStrategy Desktop to explore popular data sources and build insightful visualizations to help make better business decisions. To download MicroStrategy Desktop for Mac® or PC, visit: https://www.microstrategy.com/us/desktop.

MicroStrategy Launched Jump Start, Free Education Program to Kickstart MicroStrategy 10™ Adoption

In August 2016, MicroStrategy announced the launch of Jump Start, a free educational program designed to help MicroStrategy customers, partners, and prospects build practical skills and learn MicroStrategy 10 functionality to drive faster adoption across the enterprise. The five-day program is appropriate for all skills levels and is being held monthly in cities around the world.

Jump Start training is being delivered in nine different languages including English, Spanish, French, Italian, Portuguese, German, Korean, Japanese and Chinese, and taking place in 29 cities around the world. The program teaches MicroStrategy fundamentals, as well as more advanced topics such as creating visually compelling dashboards; connecting to data from a variety of sources including Salesforce®, Facebook and Hadoop; and creating mobile apps that deliver critical insights to users. Each day-long class is structured to stand on its own, so participants can choose to sign up for a single day or attend the full week program. To sign up for Jump Start training near you, visit: www.microstrategy.com/jumpstart.

"Excellence in BI doesn't start and end with selecting an enterprise software platform—it takes ongoing training and education to build an empowered user community capable of great things," said Michael J. Saylor, CEO, MicroStrategy Incorporated. "We recognize that standing up an enterprise analytics platform is a long-term investment. We are excited about the Jump Start program and look forward to training customers, partners and prospective customers interested in using our newest and most innovative analytics technology to transform their data."

MicroStrategy 10.5™ Empowers Organizations to Connect to More Enterprise Assets

In September 2016, MicroStrategy announced the general availability of MicroStrategy 10.5, the latest update to the company's MicroStrategy 10 platform. The feature release delivered the industry's latest drivers and gateways with new certifications to support more enterprise assets, allowing organizations to easily leverage their data investments. Beyond enhanced connectivity to data assets, MicroStrategy 10.5 delivered several features that make it easier to consume analytics across MicroStrategy Desktop, MicroStrategy Web™, MicroStrategy Mobile™ and Usher™.

"The latest edition of our platform makes MicroStrategy much more compelling to our enterprise customers and OEM partners who deploy business intelligence at a larger scale," said Tim Lang, CTO of MicroStrategy Incorporated. "MicroStrategy 10.5 enables organizations to connect to enterprise resources with new native support for RESTful APIs, new connectivity to OData and SAS data files, and faster access to large volumes of data on Hadoop® and other distributed files systems. It also delivers an extensive list of new features for MicroStrategy Desktop, MicroStrategy Web, MicroStrategy Mobile and Usher."

MicroStrategy 10.5 delivered an extensive collection of enhancements focused on empowering users to access more information and systems, including native support for RESTful APIs, connectivity to OData and SAS data files, and new certifications for more enterprise assets. Exciting new features for MicroStrategy Desktop and MicroStrategy Mobile in version 10.5 include improved visualizations and charts for MicroStrategy Mobile, customizable error messages on iOS mobile devices, and reduced memory footprint for MicroStrategy Desktop.

MicroStrategy 10.5 also introduced several new features for Usher, which is comprised of two main client interfaces: Usher Security™ and Usher Professional™. Usher Security is a mobile identity application that replaces physical IDs, passwords, keys and security tokens with secure digital badges. Usher Professional is an analytics and mobile productivity application that allows managers to monitor user activity on interactive maps and communicate in real-time. Usher's new features include 2-way messaging between Usher Professional and Usher Security users, auto server configuration for Usher Security, and Usher Network Manager™.

MicroStrategy highlighted the functionalities of MicroStrategy 10.5 at its October 2016 Symposium Series, where Symposium attendees were able to learn about the new features in MicroStrategy 10.5. To learn more about MicroStrategy 10.5 and see the full list of new features across MicroStrategy Desktop, MicroStrategy Web and MicroStrategy Mobile, visit https://www.microstrategy.com/us/platform/whats-new.

MicroStrategy Presented at Strata + Hadoop World and Introduced New Partner Certification Program for Data Platform Vendors

In September 2016, MicroStrategy announced that it would sponsor and present at the Strata + Hadoop World Conference. The event took place over three days on September 27-29, 2016 at the Javits Center in New York City, New York. During the conference, MicroStrategy experts conducted live demos of MicroStrategy 10.5.

"Enterprise data assets have become increasingly larger and diverse, and choosing the right enterprise analytics solution that can perform and deliver in a dynamic marketplace is critically important. MicroStrategy 10 empowers users to access more data and allows organizations to easily leverage their technology investments," said Mark Gambill, CMO at MicroStrategy Incorporated. "MicroStrategy 10 offers a holistic enterprise analytics platform with incredible horsepower for both IT and business users, and events like Strata + Hadoop World are an excellent place to test drive the platform in person."

For the first time, MicroStrategy hosted TechTalks, an exclusive one-on-one session with an expert MicroStrategy Professional Services™ consultant at Strata + Hadoop World. MicroStrategy also introduced a Partner Certification Program at Strata + Hadoop. Data storage and platform vendors attending the event were able to enroll in this program to partner with and certify their offerings with MicroStrategy 10. Through this program, vendors can jointly work with MicroStrategy through a self-driven initiative and deliver certified drivers to new data sources. To enroll, vendors can submit their information here.

MicroStrategy Held its July 2016 Symposium Series

In July 2016, MicroStrategy's Symposium Series took place in cities across North America, Europe, the Middle East and Asia. The Symposium Series offered IT and business users an opportunity to network, take workshops, and hear about real-world applications for MicroStrategy 10 from MicroStrategy customers such as Boston Children's Hospital, Coach, Colis Privé, Dallas/Fort Worth International Airport, Huntington National Bank, IM Associates, Jabil Circuit, LifeWay Christian Resources, Parallon, Saint-Gobain Abrasives, Sutter Health, and T-Systems International. It also featured topics on analytics and mobile applications in retail, banking, higher education, healthcare and other sectors being transformed by big data.

Non-GAAP Financial Measure

MicroStrategy is providing a supplemental financial measure for income from continuing operations that excludes the impact of share-based compensation arrangements and restructuring activities. This financial measure is not a measurement of financial performance under generally accepted accounting principles in the United States ("GAAP") and, as a result, this financial measure may not be comparable to similarly titled measures of other companies. Management uses this non-GAAP financial measure internally to help understand, manage and evaluate business performance and to help make operating decisions. MicroStrategy believes that this non-GAAP financial measure is also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis because it excludes a significant non-cash expense that MicroStrategy believes is not reflective of its general business performance and restructuring charges that we believe are not reflective of ongoing operating results. In addition, accounting for share-based compensation arrangements requires significant management judgment and the resulting expense could vary significantly in comparison to other companies. Therefore, MicroStrategy believes the use of this non-GAAP financial measure can also facilitate comparison of MicroStrategy's operating results to those of its competitors.

About MicroStrategy Incorporated

Founded in 1989, MicroStrategy (Nasdaq: MSTR) is a leading worldwide provider of enterprise software platforms. The Company's mission is to provide enterprise customers with a world-class software platform and expert services so they can deploy unique intelligence applications. To learn more, visit MicroStrategy online, and follow us on Facebook and Twitter.