Microstrategy Incorporated

MicroStrategy knows you need the details to make a good plan. The company's business intelligence software addresses functions such as building reports and dashboards, managing mobile applications, and capitalizing on social media. Specific analytics modules include human resources management, Web traffic analysis, and sales and distribution. Its Angel.com unit provides cloud-based customer experience management software. It sells to many of the world's largest companies, such as Aetna and eBay, as well as midsized companies and government agencies, such as NASA and the US Army. MicroStrategy also offers consulting and support services. Founded in 1989, MicroStrategy has operations in about 25 countries.

Geographic Reach

North America is the Virginia-based company's largest market, accounting for 60% of its revenue. Europe, the Middle East and Africa accounts for about 30%.

Sales and Marketing

Marketing its products worldwide, MicroStrategy targets a variety of user types. In addition to large and medium-sized enterprises and government customers, the company also targets advertising agencies and systems integrators that cater to those clients, as well targeting independent software vendors that want to incorporate MicroStrategy's tools. The company primarily uses a direct sales force, but it also distributes through indirect channel partners that include value-added resellers, system integrators, and OEMs.

Financial Performance

The company's revenue increased 6% in 2012 versus 2011, to $595 million, driven by a 16% jump in sales by its Angel.com subsidiary. Also, revenue from product support and other services grew 9% year over year on an increase in the number of product support contracts and an overall increase in renewal pricing on existing support contracts. While MicroStrategy has added more than $200 million in revenue since 2009, the rate of increase slowed in 2012.

Net income grew 15% to $21 million in 2012 versus 2011 primarily due to the increase in sales. The increase in profitability in 2012 followed two years of steep decline as the firm invested heavily in research and development, sales and marketing, and consulting capabilities during 2011. While it continued to invest in R&D in 2012, the rate of increase of expenses related to such investments was lower in 2012 compared with 2011. Investments in R&D and related expenses are expected to be higher in 2013. 

Strategy

Areas of investment focus for the company include software technologies designed to help clients capitalize on four technology trends: Big Data; Mobile applications; Cloud-based services: and Social Networking. Recent entries include mobile and cloud-based platforms. The company's MicroStrategy 9 is the software platform that contains its core products. Mobile apps based on MicroStrategy 9 include integrated mapping with Google Maps, integration with on-device sensors, such as bar-code readers, and mobile alerts. Besides mobile, Microstrategy sees three other disruptive trends that it will focus on: big data, the cloud, and social media. The company's Microstrategy Wisdom, for example, analyzes Facebook data.

MicroStrategy has faced increasing competition from large enterprise software companies such as OracleSAP, and IBM as those companies acquire smaller business intelligence software makers in deals similar to IBM's purchase of SPSS. Despite the competitive relationship with these companies, MicroStrategy also works through partnerships with them and many others, including LeidosSymantec, and Adobe.

MicroStrategy serves such industries as communications (BSkyBCox Communications), consumer goods (ChiquitaDanone), financial services (ABN AMROCredit Agricole), healthcare (Bayer HealthCareNovation), insurance (Pacific LifeGEICO), manufacturing (MichelinPhilips Electronics), retail (Starbucks, Guess?), technology (eBayMcAfee), and the government (US Postal ServiceUS Department of Homeland Security).

Ownership

Chairman and CEO Michael Saylor control the company through ownership of 64% of the company's voting shares and an 18% stake in the common stock.

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Microstrategy Incorporated


1850 Towers Crescent Plz #700
Tysons Corner, VA 22182-6231
Phone: 1 (703) 848-8600
Fax: 1 (703) 2702175
www.microstrategy.com

STATS


  • Employer Type: Public
  • Stock Symbol: MSTR,
  • Stock Exchange: , NASDAQ
  • Chairman of the Board; Chief Executive Officer: Michael Saylor
  • Chief Financial Officer; Senior Executive Vice President: Douglas Thede
  • Chief Operating Officer; Senior Executive Vice President: Bob Watts

Major Office Locations

  • Tysons Corner, VA

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