The 10-second takeaway
For the quarter ended March 31 (Q1), MicroStrategy beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins contracted, and net margins dropped.
MicroStrategy reported revenue of $145.1 million. The nine analysts polled by S&P Capital IQ hoped for a top line of $141.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $122 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.02. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS of $0.02 for Q1 were 80% lower than the prior-year quarter's $0.10 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.1%, 30 basis points better than the prior-year quarter. Operating margin was 0.3%, 60 basis points worse than the prior-year quarter. Net margin was 0.2%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $154.9 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $642.8 million. The average EPS estimate is $3.06.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 185 members rating the stock outperform and 31 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give MicroStrategy a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MicroStrategy is hold, with an average price target of $136.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.