MicroStrategy Incorporated (NASDAQ:MSTR) Q4 2022 Earnings Call Transcript

Andrew Kang: Thanks, Shirish. So there has been some volatility in our bond prices recently. And just looking back to Q4, we’ve seen that pretty clearly. But we’ve also seen that same volatility pretty dramatically rebound prices here in January in a very short period of time. I think with that kind of backdrop, and changes in the market, we are comfortable with our outstanding debt levels. And we’re confident than that when it does come due, we will be able to either refinance it, advertise it or pay it off. And we have a lot of different options available to us to manage those maturities. And the fact is, we still have a lot of time left to do so in the next two plus years.

Shirish Jajodia: Thanks, Andrew. We’ll take this one last question for Phong. What is your margin outlook for 2023? And how are you thinking about balancing revenue growth versus margin preservation?

Phong Le: Like that both are like, we’re going to focus on driving revenue growth and profitability or margin growth in 2023. I think big driver, that’s our acceleration of conversions to cloud, which allows us to see an uplift and cloud revenue and overall revenue from hosting term licenses and support fees. And a cost side Andrew mentioned it but we were we kept our costs relatively flat, our operating costs relatively flat from 2021 to 2022. The goal would be to do something similar or even reduce our costs a little bit. If you exclude the impact of the coin holdings. I’m talking about non-GAAP costs here. So if we can grow revenues and keep flat or reduce our costs in 2023, then we should be able to grow margins. And I think if the macroeconomic environment improves faster, we can do that even faster in 2023.

Shirish Jajodia: Great, thanks, Phong. I think that brings us to the end of the time for today’s webinar. Thank you everyone for the questions. This concludes the Q&A portion of the webinar and I will now hand over the call to Phong for closing remarks.

Phong Le: Thanks, Shirish. I want to thank everyone for being with us today. And we appreciate all of your support. We’re enthusiastic as ever on both of our strategies, our enterprise software strategy and our Bitcoin strategy. I wish you all a good quarter, and happy Spring and looking forward to seeing you again in 12 weeks. Thanks/