MicroStrategy continued to see strong demand for its HyperIntelligence advanced “zero-click” analytics in the fourth quarter (ended Dec. 31) and expects adoption to continue expanding in 2020, it said Jan. 28.
“Our primary goal in 2019 was to drive adoption of our newest products including MicroStrategy 2019, HyperIntelligence and our managed cloud platform,” according to COO Phong Le.
“We ended the year with 740 customers having upgraded to MicroStrategy 2019 and 175 who have purchased HyperIntelligence,” he told analysts on an earnings call. MicroStrategy added 71 HyperIntelligence customers during the fourth quarter alone and it’s seeing “strong penetration” of HyperIntelligence among the firm’s Fortune Global 500 customers, he said.
“We see opportunity for greater adoption in 2020,” he told analysts.
The company’s “other major area of focus for us in 2019 was our fully managed cloud platform,” which it now offers on Amazon Web Services (AWS) and Microsoft Azure, he said.
“Proactively engaging our customers is another key part of our strategy to drive adoption of MicroStrategy 2019, HyperIntelligence and cloud,” he also said, adding: “This has been a dramatic shift from our historical practice and services and that of our industry and it is paying dividends. Our team is doing an excellent job showing customers how our new solutions can provide measurable improvements in our analytics capabilities and digital transformations has proven to be one of the key drivers in facilitating migrations to our latest MicroStrategy platform and to the cloud.”
He went on to outline the firm’s key priorities for 2020. “First, our go-to-market strategy will be increasingly focused on the MicroStrategy cloud platform,” he pointed out, noting “we have seen exciting traction in the market.”
MicroStrategy customers “appreciate that our product has full feature parity, whether it’s run on their own infrastructure or in our cloud, and they understand that by using our cloud they can lower total cost of ownership, get faster updates, and have greater flexibility to increase adoption throughout their organization,” he said, adding: “We expect to see some migration of existing customers to the cloud as well as new customer growth.”
Second, the firm “will continue to encourage our customers to migrate to our latest platform version,” he said.
Next week, the company will be introducing its latest release, MicroStrategy 2020 at its annual user conference, MicroStrategy World, in Orlando, Florida, Feb. 4-6. “Building on the success of MicroStrategy 2019, this latest release will include enhanced functionality for HyperIntelligence as well as cutting-edge functionality related to our modern and open platform architecture,” he said.
The company’s third key objective for 2020 is to “generate full-year constant currency revenue growth in 2020,” he said. The firm is also “focused on driving continued operating efficiency across all parts of the organization,” he told analysts.
MicroStrategy reported Q4 revenue inched up 1.2% from a year earlier to $133.5 million. Profit, meanwhile, grew to $12.2 million ($1.18 a share) from $3.3 million (30 cents a share).