Commentary on MicroStrategy Q2'22 Earnings

MicroStrategy operates two primary strategies (1) business analytics and (2) bitcoin. MicroStrategy’s business analytics division offers an enterprise business intelligence platform. Customers can access these tools via software licenses and subscriptions. Recent key performance indicators include +$500mm annual revenue, +80% gross margin.

Despite the overall market cool down within crypto and U.S. equities, MicroStrategy saw modest growth within its primary business analytics division. Product licensing and subscription services grew by 16.3% compared to Q1’22, while overall revenue grew a modest 2.4%. That being said, total revenue contracted (2.6%) in Q2’22 relative to Q2’21.