Hello everyone and good evening. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I will be your moderator for MicroStrategy's 2024 Third Quarter Earnings Webinar. Before we proceed, I will read the Safe Harbor statement. Some of the information we provide during today's call 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 during today's call, we will refer to certain non-GAAP financial measures. Reconciliations showing GAAP versus non-GAAP results are available in our earnings release and presentation, which were issued today and are available on our website at microstrategy.com. I would now 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, Phong or Andrew will answer questions at the end of the session. Please be sure to provide your name and your company's name when submitting your questions. Now, I'll walk you through the agenda for today's call. First, Phong Le will cover the business and operational results for the third quarter of 2024. Second, Andrew Kang will cover the financial results for third quarter of '24. Then Michael Saylor will provide a strategic review, and the vision and discuss the recent Bitcoin market updates. And lastly, we will open up to the Q&A. With that, I will now turn the call over to Phong Le, President and CEO of MicroStrategy.

Thank you, Shirish. Hello everyone. I'd like to welcome all of you to today's webinar, starting with the Bitcoin highlights for Q3. 2024 MicroStrategy remains the largest corporate holder of Bitcoin in the world, now holding 252,220 Bitcoins with a total Bitcoin market value of $18 billion as of yesterday. Since June 30, 2024, we acquired an additional 25,889 Bitcoin for a total purchase cost of $1.6 billion, an average price of $60,839. Year-to-date, 2024, the price of Bitcoin has appreciated, spurred notably by the approval of the Spot Bitcoin Exchange traded products or ETPs, which has drawn considerable institutional attention to the asset class. We believe the introduction and initial success of the Spot Bitcoin ETPs evidences the maturation of Bitcoin as an institution grade asset class, with broader regulatory recognition and institutional adoption. On the capital markets front, we made significant progress towards the advancement of our Bitcoin strategy. In September, we raised $1.1 billion net proceeds, through our at-the-market, or ATM, equity offering program and raised $1.01 billion through the issuance of our 2028 convertible notes. Using part of the proceeds from the 2028 convertible notes, we also redeemed our $500 million senior secured notes, due 2028 in full. As a result, all of our Bitcoin holdings are now unencumbered. Andrew will provide further details on our capital markets and Bitcoin purchase activity for this quarter. As we continue to focus on acquiring more Bitcoin through our capital market activities, we believe that the value proposition in the company centers increasingly on our Bitcoin treasury strategy. As a result, we've developed a new descriptor for what we are, which is the world's first and largest Bitcoin treasury company, the acronym being coincidentally BTC. So what does this mean? We are a publicly traded company that has adopted…

Thank you Phong. First, I'll take a few minutes to expand upon the software business results. Moving to Slide 12, earlier this year we enhanced our reported numbers to breakout our quarterly results into two categories. First, the software business category reflects income or loss from operations related specifically to our BI business. The Corporate and other category represents the non-software related areas, associated with our digital assets holdings, which include impairment charges and other related third-party costs. While we continue to operate under one reportable operating segment. We believe the breakout of our operating results into these two categories, provides more transparency with respect to the performance of our software business, while isolating the impacts related to changes in Bitcoin price. In Q3, software business revenues were $116 million, down 10% year-over-year consistent with recent quarters, the overall revenue trend reflects the ongoing transition of our business from on-premise to cloud. As part of that transition, we fully expect product license along with support revenues, to decline impacting total revenues consistent with this quarter's results. We are building up stronger, more durable cloud recurring revenues that come in overtime, which is consistent for any on-prem to cloud transition. Q3 Cloud bookings was strong in line with the prior quarter and if you recall, Q2 was the strongest single quarter cloud bookings to-date. This increase last quarter helps offset the lower than expected product license contracts, we closed this quarter and reflects the transition taking shape. As Phong mentioned earlier, non-GAAP subscription billings, which represent cloud revenues in the quarter, along with the next 12 months of deferred subscription services revenues, grew by 93% in Q3 year-over-year to $32.4 million, reflecting double-digit growth in every quarter, for the last four straight years since launching our cloud transition. Q3 subscription services…

Thank you, Andrew. I'm delighted to see you all on the call today. Thank you for joining us. And for all of our shareholders, thank you for your support. I was really excited about this call, because this is the chance to share our strategy and our vision looking out over the next three years. And we're going to be doing it, more detailed than we have in the past. So Shirish, go ahead to the next slide. I don't have to remind anybody that we're still in the early stage of adoption of Bitcoin as Digital Capital. 2024 has been a great year. The launch of the ETFs at the beginning of the year, was a major milestone. The embrace of Bitcoin by major political parties is a second milestone. I think we can see movement toward normalization of Bitcoin. The approval of options trading that's moving through the pipeline for the ETFs is a big deal. The movements toward banks beginning to custody Bitcoin, is very exciting. A lot of companies adopted fair value accounting this year. That's another exciting milestone. And of course, anybody that's been paying attention to the flows into the Bitcoin ETFs have noticed, that they've been picking up over the past few weeks. And it's generally acknowledged that these Bitcoin Spot ETFs, are the most successful ETFs ever launched. And so, while we're early, it's very promising. Bitcoin's about a $1.4 trillion asset class. And as you can see, Bitcoin is gradually going to draw capital from equities, from real estate, from bonds, from currency derivatives, and of course from gold. We can go to the next slide. This is a -- it's a very powerful slide, because it tells the story of investing in finance over the past four years. Since MicroStrategy…

Great. Thank you so much, Michael. That was a fantastic session. And we went way over our assigned time of one hour. However, what we'll do is we'll take two quick questions. So, by the way, thank you to all the viewers. There were 4,000 people who joined in and there are hundreds of questions that we received. So we'll just take two questions in the interest of time. And the first question is for Andrew. Andrew, can you please provide a framework around how you might cover interest expense, if we continue to issue convertible or fixed income notes that might be beyond servicing, that might be beyond servicing from the software cash flows?

Sure. Thanks for the question. In the near term, I guess I'd say, I mentioned earlier, we redeemed the 28 notes, which was our highest cost debt, and by doing so, we reduced our annual cost by about $30 million, or about 50% of our debt load. So that obviously frees up cash in the near term taking out the 28s also release this from all the covenants. So there may be some opportunities to get accretive there. And lastly, but probably more importantly, the 21/21 Plan, we plan to raise, $42 billion of capital and that capital could be used to service interest if needed. So overall, I think, we feel pretty good about our ability to issue new debt, issue new fixed income securities and we'll look forward to those opportunities in the future.

Great. And we'll take one question for Michael. Given your ambitious ATM plan, are you concerned about the controlled company status, and how do you view it in the long-term?

I have slightly more than 50% of the voting stock right now. And as we raise additional capital, I expect that my voting interest will slip below into the high 40s. If we raise a lot of capital, it might slip into, move into the mid-40s or the low-40s, but I'm not at all concerned about it. First of all, we're going to run this company in partnership with our common stock shareholders. And I meet with them routinely. There's nothing that we are going to do that they're not going to want us to do. And so, so, perhaps in order to get over 50%, I might have two or three of them join with me on occasion. But I actually look forward to that. So I think our common stock shareholders should know that they're our partners, and they deserve a say in the company. They'll have a greater say in the company and that's fine. I don't really think there's - any reason that our company can't operate just fine with me having 48% of the vote instead of 52% of the vote. As you can see our principles, you can see our plan. I think that substantially I'll have enough voting shares, to ensure that the company stays on track, but I'm not at all concerned about, issuing additional equity.

Thank you, Michael. I think with that, we will conclude the Q&A portion of the webinar. And I will hand the call over to Phong for the final closing remarks.

Look, I want to thank the several thousands of you who attended our earnings call today. I understand it's an elongated session, and I appreciate your support and hopefully you've seen from our remarks, we are quite enthusiastic about the future of Bitcoin, and the future of MicroStrategy, and the potential for value creation for all of our shareholders. We believe that the Bitcoin treasury company strategy and the enterprise software strategy, is going to create growth and value. So we wish everybody a good quarter, a happy holidays, and we look forward to seeing all of you again in 12 weeks. Thank you all.

Thank you.