Andy on Enterprise Software

Microstrategy Joins the Party

February 14, 2007

To go with Business Objects’ excellent Q4 results, Microstrategy also reported good figures, suggesting that the BI industry is in generally good shape. Revenue was USD 92.6M, up 20% over last year. Just USD 36.6M of this was license revenue, but this was 17% up on last year.

There was very healthy USD 32M operating margin, which means an operating margin of 34%. Other measures were also healthy e.g. days sales outstanding of just 54, and cash flow from operations of USD 26M. Admittedly this is down a little as expenses have risen by 22% year over year, but all the same this is a healthy business.

These results are all the more significant because Microstrategy has been in rather a flat phase for some time, with licence growth almost flat since early 2005. This perky set of results will be all the more welcome for its staff and shareholders given this background.