Good evening, everyone. I'm Jeremy Price, MicroStrategy's Senior Vice President of Financial Planning and Analysis and Head of Investor Relations. I'll be your moderator for MicroStrategy's 2021 third quarter earnings webinar. Before we proceed, I will read the safe harbor statement. Some of the information we provide in this presentation regarding our future expectations, plans and prospects may constitute forward-looking statements. Actual results may differ materially from these forward-looking statements due to various important factors, including the risk factors discussed in our most recent 10-Q filed with the SEC. We assume no obligation to update these forward-looking statements, which speak only as of today. Also in this presentation we will refer to certain non-GAAP financial measures. Reconciliations showing the GAAP versus non-GAAP results are available in our earnings release and the appendix of this presentation, which were issued today and are available on our website at www.microstrategy.com. We would like to welcome you all to today's webinar and let you know that we will be taking questions using the Q&A feature at the bottom of your screen. You can submit questions throughout the webinar, and Michael or Phong will answer your questions at the end of the session. Please be sure to provide you name and your company's name when submitting your questions. And with that, I will turn the call over to Michael Saylor, Chairman and CEO of MicroStrategy.

Thank you, Jeremy. I'm Michael Saylor, the Chairman and CEO of MicroStrategy. I'd like to welcome all of you to today's webinar regarding our third quarter 2021 financial results. I'm here with Phong Le, our President and Chief Financial Officer. First, I'd like to pass the floor to Phong, who's going to provide an update on our operations and our financials for the quarter.

Thank you, Michael. We're pleased with the performance in the third quarter across both of our strategic priorities. For the fifth straight quarter we posted strong financial and operational results with our software business and made investments in Bitcoin. Our enterprise analytics business delivered another strong quarter, and we are seeing growing adoption of the MicroStrategy platform, especially in the cloud by new and existing customers. We also had another active and successful quarter with our Bitcoin acquisition strategy, executing on our fourth successful capital raise in the past year and expanding our digital asset holdings. Our results in the third quarter are indicative of the multiple ways microstrategy is able to create meaningful and unique value for our shareholders. Total revenue in the quarter grew slightly year-over-year to $128 million. This is a strong performance against an incredibly difficult comp in the third quarter of 2020. As you might recall, in Q3 2020 we signed several deals that were delayed from the first half of 2020 due to COVID-19 and signed a large expansion transaction with a major financial institution. Comparing against 2019, which adjusts for these impacts, total revenue grew 7% versus the third quarter of 2019. We think this is a good proxy for the underlying growth of the business. License revenue was down 13% year-over-year, but up 36% versus the third quarter of 2019. Subscription revenue in the quarter was up 31% compared to Q3 of 2020. Current subscription billings grew 23%, our sixth straight quarter of double-digit growth. Finally, we had another strong quarter of profitability with a non-GAAP operating income of $27.7 million and margin of 22%. MicroStrategy Cloud continues to become a growing mix of our business, while our on-prem product continues to perform well. We're committed to meeting the needs of our…

Thank you, Phong. I'll make a few comments on MicroStrategy and its business intelligence business, our macrostrategy and our Bitcoin acquisition plans. And then on the outlook for Bitcoin in general. So why don't we start with micro strategy. As Phong has pointed out, the business is running very, very well operationally. Every quarter for the last eight quarters we've got operationally more efficient. We're profitable. We're generating a very healthy operating margin. And I'm very pleased with the stability and the maturity of that business. I mean, the three key themes that we would focus on will be the shift to modern analytics from the legacy BI vendors. And we're benefiting by having made large investments to modernize our platform, and we offer an upgrade path that has a future to large enterprises that made their BI decisions back in the 2000 to 2010 time frame. Many of them are running on architectures that have languished for the past 5 to 10 years, and they're looking for something which is fresh and vital and modern. So we do win a lot of business there. And I think that that trend will continue. It probably will be even more of an important trend in the next few years. The shift to enterprise cloud continues. As Phong had pointed out, in some cases companies can't, but we think that there'll be a steady progression of motion from on-premises installations to cloud installations. And as that happens, we're able to add value and improve the overall value proposition of MicroStrategy. And also, that just improves the operational efficiency of our company and it improves the operational efficiency of our customers. So everyone in the world is looking for more operational efficiencies. How do I get newer technology that runs more efficiently within…

All right. Thank you, Michael. We do have a lot of good questions. So we're going to try and get through as many as we can. And with no further ado, here we go. For Phong, "Non-GAAP operating margin in Q3 came in above expectations for -- of 18% to 19%. Could you walk us through the main drivers of the margin outperformance? Thank you and congratulations."

Thank you, Jeremy. I would say it's one major outperformance driver. We had a tough compare going into this quarter. So I think folks thought that our revenues were going to be down a little bit. In fact, our total revenues were up. Our software revenues were up substantially versus 2019. We had good consulting results. So if I was to net it out, revenue growth is good. Software business is going well. There is incremental customer demand for the MicroStrategy platform. And it all creates a good momentum for us as a business. And of course, we've been able to keep our costs an order as much as we can to. So that's what's driving the margin outperformance right now.

All right. Thanks, Phong Le. Michael, "Some Bitcoin miners are getting interest from asset managers who are evaluating financing their own mining operation inside larger miners with capacity. They believe that the returns on self-mining of the five years might be greater than buying . What are your views here?"

So, ask the question again. I want to -- like my views of what versus what?

Bitcoin miners are getting interest from asset managers who are evaluating financing their own mining operations inside of larger miners with capacity. They think that the returns on self-mining over five years might be greater than buying spot or"

So the question is, is it better to buy Bitcoin or buy a Bitcoin miner, is that what that means?

Yes.

I mean -- but I wouldn't say -- what I would say is I think the Bitcoin miners are in a great industry. It's a good business. There's a natural limit on how much hash power can be delivered because one constrain is, is the supply of short miners. And the second constrain is, the time it takes to build out an engineered mining facility. And so if you are lucky -- if you wanted to go and create a Bitcoin miner today, you might have to wait 12 to 24 months to get the mining rigs. And then you might have to struggle for 12 to 24 months to build out your facility. And so it's going to take time for that hash power to come online. And in that time, that means if you have a mining operation with good hash power, right, you're in a great position. And of course their business was made better by the China exodus as well, which limited the hash power. I think that mining is a good business, but I can't tell you how to allocate your investment capital. I pointed out before, I think there are some investors that couldn't buy the property if they wanted to. I think there are other investors that have an agenda to buy companies. And so they need to buy miners. I think there are some investors that have an agenda to buy securities in general and/or they need to. So I think that right, there's demand for all these things. I think there's a demand for minor equity. I think there's a demand for minor debt. Like I think the miners can issue debt, and there's a market for that. And I think there's a market for Bitcoin. And I think that all of those markets will grow and those options are going to increase in the coming few quarters.

Thanks, Michael. Phong, "Can you provide" -- sorry, "Nice to see the sustained strong R&D spend. Can you provide more detail on where you're focusing these investments? And how should we expect MicroStrategy's platform to evolve in the coming years? Is there any of your R&D spend being invested in Bitcoin and blockchain related research?

Yes. So first of all, we're going to continue to grow R&D spend. It's the right place to invest. We'll find synergies and be able to reduce costs in other areas like sales and marketing and G&A, invest that in R&D and grow our margins. If you look at the last year versus this year, we've tripled the amount of money we spent in R&D and cloud. So building out a full multi-tenant containerized cloud platform. We've done that. Now extending that to multi-cloud and extending that to all of our customers is a big focus of ours, and we're seeing good momentum there. Improving or investing more in security. We're the most secure enterprise-grade BI platform in the world. A lot is changing in that area. And so we're going to continue to invest there. We've tripled our investments in security last year. Continue to build out OEM capabilities, so that you can embed our software and any other piece of software and any client application and making sure that our software is open. That's a big area of investment. We've doubled our investment in that area in the last year. And of course, probably the biggest area of investment we continue to work on is making our software intuitive, improving the client user experience. So innovations like Hyperintelligence and more extensions beyond that augmented capabilities. So we're the number one enterprise-grade BI platform in the world, and we expect to continue to do so through R&D investments.

Thanks, Phong. Let's do one more. We've had quite a few questions about this. So let's start with Mike, and I'm sure Phong you have something to say. "How should we think about the underlying value of Bitcoin versus the market cap of the company? And what appears to be a shrinking premium over the quarter?"

I think that clearly the stock price will fluctuate and the market determines that. Our view is we're going to grow the enterprise software business using intelligent investments and making intelligent investments in the product line. And we're going to grow the Bitcoin business by acquiring more Bitcoin via accretive method, so via intelligent financings from time to time. And the marketplace will react to those things and it will react to other things in the market that are out of our control.

And the only thing I might add to that is the stock price, I agree it is what it is, but we offer something that's differentiated and unique. We have a business intelligence company that's growing, that's the best enterprise platform in the world and produces material and growing cash flow, we can invest that in Bitcoin. We can take our Bitcoin strategy and invest additional capital through raising debt, raising equity. And our Bitcoin strategy makes us more known in the marketplace, increases our pipeline grows, our popularity and in turn makes our enterprise software company stronger. So it's a virtuous cycle, and I think that's something that's quite unique compared to just buying spot Bitcoin or investing in a stand-alone software company.

Thanks, Phong. I thank everyone for their questions. I'm going to turn it back over to Michael for our closing remarks.

Okay. Well, thank you. I want to thank everybody for being with us today. And we appreciate your support for our shareholders in the audience. We couldn't do this without you. We're really as enthusiastic as ever about both our enterprise software strategy and our Bitcoin strategy. We'll continue to execute on both of those in the coming quarter. And we'll look forward to seeing you again in 12 weeks when we report back how things went. Until then have a good year and a good holiday season.