MicroStrategy saw promising signs for its HyperIntelligence advanced “zero-click” analytics in the second quarter (ended June 30), according to Phong Le, the company’s CFO and COO.
“We were generally pleased with our performance in the second quarter, which demonstrated continued progress executing on our strategic objectives,” he said July 30 on an earnings call.
MicroStrategy 2019, the enterprise platform that the company launched in January, is “driving demand for our software, a redesigned and repackaged MicroStrategy Cloud Enterprise product that’s showing initial signs of success, and our proactive enterprise support offering is increasing customer engagement,” he told analysts.
MicroStrategy 2019 is an open, flexible enterprise analytics and mobility platform that includes HyperIntelligence and Federated Analytics, and it addresses “some of the most pressing analytics problems facing enterprises” today, he said. For example, HyperIntelligence “solves the key problems faced in many enterprises: How to get actionable insights into the hands of knowledge workers with minimal friction with the productivity tools they already use to do their jobs,” he noted.
The company “saw strong demand” for HyperIntelligence in Q2, “highlighted by 50 HyperIntelligence deals” with customers, he told analysts, noting that using HyperIntelligence and Federated Analytics requires customers to upgrade to MicroStrategy 2019. And that’s exactly what many customers have been doing.
Through the end of Q2, “more than 400 customers have already upgraded to MicroStrategy 2019 and we have a targeted program in place to upgrade most remaining customers over the next six to 12 months,” he disclosed.
HyperIntelligence and Federated Analytics, along with “transformational” mobility, are the three industry “breakthroughs” that will let intelligent enterprises achieve 100% analytics adoption, Vijay Anand, VP of product marketing at MicroStrategy, said at the MicroStrategy Symposium in New York in May. He noted at the time that all three of them were included in and are the “major focuses” of MicroStrategy 2019, which he said had the “most successful product launch that I have been a part of in the last 15 years with MicroStrategy.”
MicroStrategy’s Q2 profit soared to $20.4 million ($1.98 a share) from $4.8 million (42 cents) a year ago, boosted by the sale of its Voice.com domain for a gain of $21.8 million, the company said July 30. Product licenses and subscription services revenue grew 1.3% to $27.2. On a constant revenue basis, total company sales inched up 0.4%, marking the first constant currency total revenue increase for MicroStrategy in nine quarters, Le said on the call.
The company also “delivered 7.5 percent year-over-year product license revenue growth on a constant currency basis against a challenging” comparison to a year ago, he also said, noting it was the third straight quarter of year-over-year constant currency product license growth and “reflects the momentum in our business and the positive impact” of MicroStrategy 2019.
The MicroStrategy 2019 platform has “won multiple industry awards” and the company has seen increased demand for its Cloud and HyperIntelligence offerings, while it’s “improved key operational metrics for our business at the same time,” Michael Saylor, its CEO, said in the company’s earnings news release.