Hello everyone and good afternoon. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I'll be your moderator for MicroStrategy's 2024 First 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-K 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 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 results and the key pillars of our strategy. Second, Andrew Kang will cover the financial results for the Q1 of 2024. Then Michael Saylor will provide a strategic review and discuss our recent Bitcoin 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.

Thanks, Shirish. Hello, everyone. I'd like to welcome all of you to today's webinar. We're excited to be reporting live from MicroStrategy World 2024 in Las Vegas, Nevada. We have a packed agenda lined up for the next three days and we're excited to see our customers, partners, analysts, shareholders, and employees all in person to share our passion for BI, AI, Bitcoin, and Innovation. The business intelligence track tomorrow will feature my keynote presentation titled Let The Data Lifeblood Flow, and we'll explore how to create more innovative, competitive, high performing organizations by using AI and BI to make smart data more accessible to the frontline employees. Our Chief Product Officer, Saurabh Abhyankar will share the latest MicroStrategy technologies for delivering convenient, flexible and reliable data within operational workflows, not just in dashboards, to everyone who needs it. The keynote presentation will feature guest speakers from Microsoft, Amazon Web Services, Bayer Pharmaceuticals, the U. S. Department of State, and Vuori. Throughout MicroStrategy World, more than 30 top brands, including MassMutual, Pfizer, Fannie Mae, Victoria's Secret, and NBCUniversal, will present how they use the MicroStrategy platform, Gen AI, and the cloud to become truly data-driven businesses. The Bitcoin for corporations track on Wednesday and Thursday will feature notable institutions and industry luminaries highlighting the advantages of integrating Bitcoin as a part of their corporate treasury and product offerings. It will be a unique gathering of corporations that are already adopting or looking to adopt Bitcoin strategies, and we are very excited to host this event. Also, for the first time, we will livestream our World Keynote, as well as all the Bitcoin for Corporation sessions. For those of you attending the conference here in Las Vegas, we look forward to seeing you in person. Turning to the business highlights for…

Thank you, Phong. I'll, start with first, a recap of our software financial results. For the Q1, total revenues were a $115.2 million, which was down about 5% year-over-year. Consistent with prior recent quarters, the slight decline remains in part due to our ongoing shift, of revenue from on-prem to cloud. Q1 on-prem product license revenues, which make up about 11% of total revenue, were about $12.900 million, which is down 26% year-over-year. As I mentioned in prior calls, we continue to transition our business to the cloud, and we fully anticipate lower product license revenues to continue as we migrate existing customers off on-prem licenses and bring them on to the cloud. More importantly, as Phong mentioned earlier, we continue to grow subscription services revenues, which reflects stronger, more durable recurring software revenue. In Q1, subscription services revenues, which now make up about 20% of total revenues, were $23 million, which reflects an increase of 22% year-over-year. Non-GAAP subscription billings, which represent new cloud bookings in the quarter, also grew by 30% in the Q1 to $17.7 million, which was our fourth straight year of quarterly double-digit growth in cloud bookings. Q4 last year was an important milestone for us in the progress toward cloud transition, where for the first time, our subscription services revenues were higher than our product license revenues. This successful trend continued in the first quarter of 2024, which reflects the ongoing progress towards converting our revenue to recurring subscription services. The mix of revenue will continue to shift from on-premise product license to subscription services throughout 2024, as we focus on delivering meaningful AI-based products to our customers, which is only available in the cloud. We are pleased with the progress we have made from the adoption from our customers to our cloud platform…

Thank you, Andrew. And thank you for everybody for being with us here today. I'd just like to add a few comments on our strategy and Bitcoin in general following up on the words of Phong and Andrew. I'll start with, our performance scorecard, we like to keep score every quarter and evaluate ourself against all the relevant benchmarks. So I think this slide is very instructive. What you can see here in a nutshell is all of the enterprise software companies that we compete against in the business intelligence business and their performance since we embarked on our Bitcoin strategy in the summer of 2020. And you can see we're approximately 10 times to 30 times more in performance than any of those companies. You can see all the big tech stocks over the last three and three quarters of years. The strongest one is Google. And, you know, we've outperformed them anywhere by a factor of eight to 80, and we're very pleased with that. But, of course, our primary strategy is a Bitcoin strategy. And so I think to understand why is MicroStrategy able to return 937% in a period when the S&P returned 52%. And, I think, we just have to start with the idea of what's the right treasury strategy or how do you capitalize the company? And you can see if you capitalize the company on bonds, bonds have a negative 21% return over this time frame. Bonds have a negative real yield. They're not returning the cost of capital. The best surrogate for the cost of capital, I think, is the S&P Index, the 52%. And so if you were able to capitalize your company on the S&P Index, you could maybe keep up with the cost of capital. What you can see…

Thank you, Michael. Now we will begin our Q&A's and the first question is for Phong. Can you elaborate on the company's new positioning as the Bitcoin development company? And are there any new developments that you would like to highlight?

Yes. Thanks, Shirish. I guess we talked quite extensively during our prepared remarks about the Bitcoin development company. I think perhaps the question is more specific about the development portion and whether we're doing any software development in the Bitcoin area. For those who are attending Bitcoin for corporations on Wednesday, we'll have about a half day talking about the technology ecosystem associated with Bitcoin. And we’ll also share some new developments in an area of Bitcoin security that we're working on. And I think people will be excited to see some of the things we're doing in that space. We continue to experiment and continue to advocate for Bitcoin development, and so there's more work going on in that area that we'll share, in a couple of days.

Great. Thanks, Phong. Next question is for Michael. MicroStrategy's equity premium towards Bitcoin Holdings has expanded materially over the past few months. And, despite the recent Bitcoin pullback, the premium remains healthy? How do you think about the premium and what do you attribute this to?

I think that if we had no leverage and we generated no accretion, then we would start to look like a Spot Bitcoin ETF. But the fact -- if we have leverage, then the leverage will justify a premium. If the leverage was if we just had a $1 billion of leverage and we were paying 10% interest, it would be a small premium. We would be basically levering a $1 billion at 10% interest that's yielding where Bitcoin is appreciating at 40% or more. So there would be definitely a premium, but it would be the difference between the leverage and the yield of Bitcoin or the depreciated Bitcoin on a small amount of money on a $1 billion. But if we have more leverage and if the cost of the capital is lower, then that justifies a higher premium. So when you get to $3 billion of converts and when the converts are 50 basis points, then you've got more leverage and you've got a lower cost to capital. So I think that justifies a higher premium. When you're able to issue billions of dollars of equity at that premium, then that justifies in turn an even higher premium. And it also strengthens the capital structure, providing us with unpledged assets that, that we can use for future financings are used to leverage future corporate opportunities. And then, of course, when we're able to do, convertible issuances and then convert it into Bitcoin and capture, not just the premium upfront, but the benefits over the next six years of Bitcoin appreciation, that justifies another premium. So you could imagine if you could, if you thought you could generate an 8% accretion per year, there's no reason why you couldn't justify a 100% or more premium in that asset value. If you could generate, an 8% accretion more often than once a year, if you could do it from quarter-to-quarter or every other quarter or do anything, consistently over time, then, it's quite possible to come to any number of different premium calculations. Ultimately, you know, the company's premium is a function of our ability to execute over a long period of time and also, you know, the market's view as to whether or not they appreciate that. And of course, that's a shifting sentiment, and there's uncertainty into the future. So there will continue to be uncertainty about what the right premium ought to be, and I think that's what makes the market.

Thank you, Michael. The next question is regarding Michael's 10B51 plan. Has the plan, to exercise MicroStrategy stock options completed already? And can you please provide further color on the executed plan and the thought process behind the stock sales?

Yes, Shirish, let me take that one. So I guess, first off, Michael's option exercises were planned and actually fully disclosed. I believe it was in our Q3 filing of last year. And as most know, as officers and directors of the company, we have to put in place a 10B51 plan, which discloses that upfront. The plan was, related to, 400,000 options, which, Michael received back in 2014, which were set to expire, this April. So, you know, the sales were programmatic. Michael sold 5,000 shares, on each trading day between Jan 2 and April 25 at market prices. And, again, the sales were executed under the plan. It was completed on the 25, as disclosed, and he does not have any additional 10B51 plan in place at the time. So it's worth noting also, that, obviously, Michael still holds a significant ownership stake in the company. And I know there's been a lot of some questions and chatter around on the sales, but it's really as simple as, they were put in place, disclosed and programmatic, to do so before, his options expired.

Thanks, Andrew. We're coming to the end of the time. We'll take one last question here. This one is for Phong. Can you please elaborate on the progress of converting software clients to Cloud from license and the AI related partnerships?

Yeah. So, you know, they're one and the same. A lot of our AI and cloud partnerships are with the large hyperscalers, especially Microsoft, AWS, and Google Cloud. We're being pretty aggressive working with our hyperscalers and our partners this year to get as many customers to cloud as possible. We have some pretty ambitious plans. You'll note, and Andrew noted, that, that does have a short-term impact of product license revenue because the product license revenue represents the incremental revenue of on-prem customers, and we're trying to -- as we move customers to cloud. You'll see that offset, overtime. So moving fast using our partners, AI is only available in the cloud, so it's another impetus for customers to move to cloud, but it'll have some short-term disruption in our product license revenue and our total revenue. Many companies have gone through this transition. We're well equipped to do the same, and I'm excited about the prospects of what that means for us, in the long-term.

Thank you, Phong. And thank you everyone for your questions. We received a lot of great questions and we tried to address in the prepared remarks and the Q&A afterwards. So this concludes the Q&A portion of the webinar today. I will now turn the call over to Phong for the final closing remarks.

Thanks, everyone. I really want to thank everyone for being with us today. We appreciate your support. We're also excited to host MicroStrategy World in Las Vegas over the next three days and looking forward to seeing customers, prospects, partners, analysts, and shareholders alike at this one of a kind event. For those who aren't able to be here in person, we're also live streaming our keynotes from MicroStrategy World, which starts at 9:30 a.m., Pacific time tomorrow, and the entirety of Bitcoin for corporations. So you'll be able to watch, both of those online. If you're not able to be here in person, you're invited to join. Get details at our website www.microstrategy.com. We're as enthusiastic as ever. With both our enterprise software strategy as well as our Bitcoin strategy, and we wish you a good quarter and look forward to seeing you all again in 12 weeks. Thank you all.