MicroStrategy Incorporated (MSTR) has reported a 20.42 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $31.12 million, or $2.69 a share in the quarter, compared with $39.11 million, or $3.38 a share for the same period last year. Revenue during the quarter went down marginally by 2.38 percent to $140.11 million from $143.52 million in the previous year period. Gross margin for the quarter contracted 31 basis points over the previous year period to 83.38 percent. Total expenses were 73.78 percent of quarterly revenues, up from 68.02 percent for the same period last year. That has resulted in a contraction of 575 basis points in operating margin to 26.22 percent.
Operating income for the quarter was $36.74 million, compared with $45.89 million in the previous year period.
However, the adjusted operating income for the quarter stood at $40.14 million compared to $50.71 million in the prior year period. At the same time, adjusted operating margin contracted 669 basis points in the quarter to 28.65 percent from 35.33 percent in the last year period.
"Thousands of users are trying MicroStrategy Desktop for the first time, and with the ability to access, visualize and analyze a wide array of data, there are countless possibilities to transform business outcomes," said Michael J. Saylor, chief executive officer of MicroStrategy Incorporated. "Organizations can now leverage MicroStrategy 10.6 to schedule and distribute personalized dashboards to MicroStrategy Desktop users, empowering each user to make proactive, data-driven business decisions."
Operating cash flow drops significantly
MicroStrategy Incorporated has generated cash of $110.59 million from operating activities during the year, down 26.13 percent or $39.11 million, when compared with the last year. Cash flow from investing activities was $4.21 million from investing activities during the year as against cash outgo of $7.68 million in the last year.
The company has spent $1 million cash to carry out financing activities during the year as against cash inflow of $9.18 million in the last year period.
Cash and cash equivalents stood at $401.98 million as on Dec. 31, 2016, up 37.50 percent or $109.63 million from $292.34 million on Dec. 31, 2015.
Working capital increases sharply
MicroStrategy Incorporated has recorded an increase in the working capital over the last year. It stood at $499.50 million as at Dec. 31, 2016, up 27.21 percent or $106.85 million from $392.66 million on Dec. 31, 2015. Current ratio was at 3.69 as on Dec. 31, 2016, up from 3.27 on Dec. 31, 2015.
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