Hello, everyone, and good evening. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I’ll be your moderator for MicroStrategy's 2022 Fourth 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 like to welcome you all to today's webinar and let you know that we will taking questions through 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 will walk you through the agenda for today's call. First, Phong Le will cover the business results for the full year 2022. Second, Andrew Kang will cover the financial results for the fourth quarter of 2022; then Michael Saylor will provide a strategic review and discuss recent bitcoin market enlightening network market updates. And lastly, we will open up to Q&A. With that, I will turn the call over to Phong Le, President and CEO of MicroStrategy.

Thank you, Shirish. I'd like to welcome all of you to today's webinar regarding our 2022 fourth quarter and full year financial results. I want to start by recapping our strategy and underscoring our key highlights for the full year 2022. We have two corporate strategies, first, an operating strategy and second a balance sheet strategy. The Business Intelligence operating strategy is how we generate revenues and where most of our operating costs are incurred, and generates our cash flows. MicroStrategy at this point is the largest independent publicly traded business intelligence company in the world. Our goal is to remain a leader in this space by being modern, open and enterprise oriented. Substantially all our employees in the company over 2100 people are focused on our software business. Our Bitcoin acquisition strategy is a balance sheet strategy. As of today, we're the largest publicly traded corporate holder of Bitcoin in the world. We were the first public company to adopt Bitcoin as a primary treasury reserve asset. Our strategy is to acquire and hold Bitcoin for long term. We purchase Bitcoin using our excess cash, and with the net proceeds of capital raising transactions. I'll address our Bitcoin acquisition strategy first. In the fourth quarter, we purchased 3,204 bitcoins at an average purchase price of $17,616 per Bitcoin. And we sold 704 Bitcoins for the first time, at an average sale price of approximately $16,786 per Bitcoin, resulting a net increase in our Bitcoin holdings of approximately 2,500 for a net aggregate purchase amount $45 million, or approximately $17,850 per Bitcoin, inclusive of fees and expenses. Andrew will discuss our Bitcoin transactions in the fourth quarter later on this call. As of December 31 2022, we held a total of 132,500 bitcoins acquired an aggregate cost of $4 billion,…

Thank you, Phong. Before jumping into the quarterly results, I'd like to quickly reemphasize MicroStrategy’s revenue priorities. Our three-decade long history of providing data analytics solutions to large and small corporations, has established a long tenured and diverse customer mix, where our platform has proven to be a critical component in running our customers businesses day to day. Our platform has demonstrated durability through tough economic cycles and has been strategic during times of growth, and important foundation to our revenue it is through supporting our existing customers as their businesses evolve. We continue to deliver for our customers as seen in our consistently high renewal rates. And over 90% for the last five consecutive quarters and as high as 95% in Q4 of last year. Second, growing cloud revenue, which for us means migrating existing customers into a fully hosted and managed cloud subscription model, which Phong talked about earlier. Winning new logos into the cloud is important and uplifting services for existing cloud customers is also critical. We are very pleased with our performance in all these areas this past year. But keep in mind as we migrate to the cloud we inherently experienced some offsets in areas like audit license and support revenues. However, the transition to a subscription model will establish high quality annual recurring revenues that will allow us to scale even stronger growth in the future. And Q4 of last year approximately 64% of our total revenue was recurring, compared to approximately 60% in the same quarter over prior year, a trend that we expect will continue in 2023. Lastly, our consulting business which has been and continues to be essential in providing expert support and solutions to our customers. They not only champion solutions, but they also drive modernization and also impact growth…

Thank you, Andrew. I'm Michael Sailor, the Executive Chairman of MicroStrategy. First, I'd like to provide our performance review. When we think about the corporate strategy and its effectiveness, we go back to the summer of 2020 when we made our major strategic decision, and it was on August 11 of 2020 that we announced to the world that we had acquired $250 million worth of bitcoin, along with a tender offer. At that -- on the day before our stock was about $121 to $122 a share. Today, the stock closed to $292 a share. So of course, we measure our success based upon the creation of shareholder value. And if we look at the performance of the company stock since August 10 2020 to the close of business 4pm Eastern Time February 1, you can see the MicroStrategy stock is up 117%. We pick a number of different benchmarks. I think the most important benchmark is bitcoins performance. And you can see from this chart that Bitcoin notwithstanding the fact that it is -- it is known by all to be volatile. Everyone that talks about Bitcoin talks about it being volatile, nobody that talks about Bitcoin actually points out that, despite its volatility, it is the number one performing asset over the past 2.5 years. So we can see bitcoin is up 98% versus August 10 2020. And that's just a really critical day. So MicroStrategy stock is levered against the Bitcoin. And so through our execution, we've been able to outperform Bitcoin as an index. So we're pretty pleased with that. We can trust the performance of Bitcoin to other major asset classes and indexes. And you can see that while bitcoins up 98%. A diversified portfolio of high quality companies, such as the S&P 500…

Great. Thank you, Michael. So we are going to jump right into the questions. And the first question is for Phong. Phong, could you could you update us on the progress of your cloud product and capabilities? And how customer migrations are faring today? And what are your expectations for cloud business growth, given the different macro?

Thanks, Shirish. Cloud growth is going very well, in 2022, grew on a revenue basis 46% constant currency and on billions basis up 39%, which both represent a bit of an acceleration in 2022. I think we'll be able to see that same pace of growth or something a little faster will be our goal in 2023. I don't think the macroeconomic headwinds will slow or cloud growth. If anything, we might see a slowness of cloud growth because we're getting into bigger and bigger customers. Now, we've moved at this point, about 20% of our recurring revenue is in the cloud. So we moved to a good amount of sort of medium sized customers. But that's where MCG MicroStrategy Cloud for Government or a FedRAMP offering is going to help us. There's quite a bit of federal customers, large banks that require some sort of a FedRAMP certification, those will take longer to migrate. But I think that's really this sort of next passion that we'll go after. But I'm pretty excited about where cloud growth is going. And obviously, is getting to be more and more the standard sort of way we sell our software.

Thanks, Phong. Next question is for Andrew. Can you please provide more detail about your sale of Bitcoin in December? And do you intend to make any further sales?

Thanks, Shirish for the question. As I mentioned in the prepared remarks, we sold 704 Bitcoin in December, which generated a capital loss, which we expect to carry back against the capital gain from 2019, which was through an old domain name sale. Apart from that sale, we have not sold any other Bitcoin. And, in fact, I think the main takeaway should be that we have continued to increase our total Bitcoin holdings each quarter since inception, including Q4. And I mentioned this before as well. But, we don't really stop exploring opportunities and thinking of ways to increase shareholder value related to our Bitcoin. And in the future, we may consider doing other things that may take advantage of market volatility or be opportunistic in the market I guess either way anything we do, we'll do it consistently, within the construct of our long term Bitcoin strategy, which is to buy hold and grow.

Thanks, Andrew. Next question is for Michael. In light of the recent crypto market events, what do you think, are the key catalysts for more adoption of Bitcoin by corporations?

I think fair value accounting is going to be a big plus for corporate adoption. Since clearly, the gap volatility created by indefinite intangible accounting is a negative for CFOs. I think the rollout of lightening for corporations are going to be another big catalyst because the ability to build Bitcoin and play to earn or a Bitcoin rewards or Bitcoin into marketing programs, and to do micro transactions is going to be viewed as a real exciting benefit, it could be a great solution for Chief Marketing Officers, or CHR, or CEOs or heads of sales. I think that the overtime one big driver is payment networks are inefficient, and slow and expensive. So as companies figure out how to monetize their applications and move small micro transactions around friction free at zero cost, I think that there's going to be an interesting use case for heads of sales and CEOs. So in short, maybe the last thing is any regulatory clarity that comes from Washington DC, with regard to the digital assets, ecosystem, will be a big driver. And so I think we're all eagerly awaiting some sort of digital assets framework. Bitcoin is, is right now, as I said, the only universally acknowledged digital commodity. And so in a way, it's the one thing you can deal with in the absence of asset framework. But I also think Bitcoin will probably be the biggest winner if there is a digital assets framework, because it'll just accelerate institutional adoption, both on the investor side and the corporate side. So I would look to those three drivers.

Thanks, Michael. Next question is for Phong. With respect to the competition and demand. So there are two parts? Have you seen any changes in the competitive environment, as customers look to bring down the cash burn? And what is the impact of macro on demand with respect to sales cycles and cloud migration?

Yes, the first item, I think the biggest trend we're seeing as customers try to bring down their software costs is consolidation of vendors. And in the BI world, it's really two credible choices for consolidation right now. It's MicroStrategy, if you want a full enterprise solution, it's Power BI, if you want a point, solution that integrates well with the rest of the Microsoft ecosystem. I think what we've seen in the last six to 12 months is that as more companies are trying to use Microsoft, whether it be Azure, Power BI or otherwise, they're realizing the limitations, there's not a common semantic model, there aren't reusable objects. It's not scalable, it's not as secure. And I think customers are also realizing that free Power BI with your office 365 Enterprise license just means you're going to pay more than Azure cost. And it's a well-worn model where you give certain things away for free to drive more usage costs. And so we see a lot of customers consolidating on MicroStrategy. And so even though there may be a reduction in overall spend, we get more of the pie. And I'm excited about that. As far as the macro environment, Q4 was more difficult, especially internationally as because customers are trying to spend a little bit less. With that said, we still had a reasonable outcome in terms of our Q4 financials driven by our move to cloud. And I do think 2023 is looking a little bit brighter in terms of companies needing to spend to improve their data and analytics environment. So I'm optimistic about the growth potential in 2023.

Thanks, Phong. Next question is for Andrew. Can you please provide your thought process on how do you plan to address the 2025 loan maturities coming up?

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.

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?

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.

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.

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/