Strategy Inc (MSTR)

Investor Day 2020

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Nov 16, 2020

All right. Good afternoon, everyone. My name is Fang Li. I am the President and CFO of MicroStrategy, and welcome to our November 2020 MicroStrategy Investor Day. We're extremely excited to have you all here and to share with you some recent updates about the company. I'm going to start by reading our Safe Harbor statements regarding forward looking statements. 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 GAAP versus non GAAP results are available in the appendix of this presentation, which is also available on our website at www.microstrategy.com. I want to introduce you to our presenters for the day. We'll have Michael Saylor, our Chairman and Chief Executive Officer, myself Tim Lang, our Chief Technology Officer and Hugh Owen, our Chief Marketing Officer. Our agenda, I'll start off, which I'm doing right now with our introduction. I'll hand it over to Michael Saylor, who will provide our company vision. Tim will provide the product update and talk about our shift to the cloud as a business. Hugh will talk about demand generation and how we're growing productively as a company. And then I'll finish it off talking about finance and our growth plans. And then we'll have Q and A. A note on Q and A, you can actually ask questions directly in your Q and A panel as part of your Zoom webinar. We'll make an attempt to answer questions as we go along in the presentation and then we'll leave time at the end for additional Q and A, again answering your questions through the Q and A section of your Zoom webinar. With that, I'm going to hand it over to Michael Saylor. Thank you, Paul. I'm delighted to be here. Thanks for joining us today. This is really exciting. I wanted to start by sharing the company's vision and what we're all about. We started in 1989 and so we've been at this business for 30 years. And when we came public in 1998, on the back of our IPO prospectus was this quote by Arthur C. Clark, Any sufficiently advanced technology is indistinguishable from magic. We've always believed that you can harness the power of technology in order to bring magical things to life. And the history of the company has been one relentless quest to engineer a better magical solution based upon the components that we had available to us at the time. If we roll the clock back to 1989, graphical user interfaces and databases were just starting to come into commercial practicality. And by 1993, we released the industry's 1st relational analytical processing system. In essence, we wanted to be able to extract an insight from a 1,000,000,000 rows of data to answer a question. It might be a marketing question that a big retailer had about how to stock their shelves or what ad campaigns to run or it might be a risk question that a bank had. If I have a 1,000,000,000 transactions, how do I balance portfolios of risk in order to make the right decision? What was extraordinary was using software technology to tap into massive relational databases to answer questions without any bound and to answer the most sophisticated question. We early on had to create an intelligence engine, an engine that would take a sophisticated question and convert it into hundreds of pages of SQL code and to optimize that for the given database engine we are running against and sometimes splice together information from dozens of places in a very particular way. The challenge was to get the right answer, but to get the right answer quickly. If you interpret it or compile the question wrong, you might be waiting a 1000x or 10000x as long. So answering sophisticated questions before we ran out of time was the beginning of MicroStrategy. As the decade moved on, we realized that there were new techniques like harnessing narrowcasting to email or harnessing the power of the web. And we released the industry's 1st web intelligence product. That web product expanded the usage of intelligence by an order of magnitude and that put us on the map. We had lots of competitors at the time, Cognos, Business Objects and the like, and they had capabilities we didn't have like OLAP or reporting. And we learned from them and absorbed those capabilities. So by 2,003, we had integrated analytic relational analytics with multidimensional analytics with enterprise grade reporting into one tool running across the web. And we grew from there. And that took us all the way to 2,008 when we integrated all dashboards with reporting, with OLAP, with ROLAP, with narrowcasting and distribution, all the various styles of business intelligence. And of course, just as we had integrated all these things, the world changed again and along came the mobile wave. And with the mobile wave came the iPhone and iOS and Android, and we rebuilt our product line to expand beyond the PC and the desktop, beyond the web into the mobile sphere. And that gave us many, many more years of interesting growth based on that innovation. And that allowed us to expand the provision of intelligence to new constituencies, to new types of users. Also, intelligence went from being something people did for an hour or 2 hours from 9 to 5, to something that people did 20 fourseven, 365. And intelligence went from something that analysts did to something that executives or rank and file professionals might use in their roles. And so the industry expanded. And as we are expanding the client technology and bringing intelligence to new types of users and use cases, We also saw the back end servers evolve and servers started to move from on premise into the cloud. MicroStrategy launched its 1st cloud offering in 2014. And we evolved that through a number of generations until we got to 2017. In 2017, we started rethinking both the intelligence inside our system and we work to harness the power of artificial intelligence and machine learning. And we also began to rethink the way our tools worked, both for our architects and administrators as well as the way that our clients were delivering applications to the end user. And we began a very intense process of retooling our tools and restructuring our delivery mechanisms. And hence, we began delivering products like the dossier product, intelligent briefing book. The idea behind dossier was, wouldn't it be great if an Excel spreadsheet analyst professional was able to build an intelligent briefing book on a MicroStrategy platform in a matter of hours and deploy it with enterprise grade security. That kicked off an entirely new set of architectural innovations in our platform and we enthusiastically pursued those until we got to 2019. 2019, we realized that the world had changed again and the new REST APIs and the new approaches to application interfaces caused us to conclude that it was now possible for us to inject intelligence into other third party applications. We started thinking about how we might inject intelligence into applications built by Oracle or SAP or Workday or Salesforce or applications built by Microsoft or even 3rd party websites. Wouldn't it be great if we could put our And this is the idea of HyperIntelligence. The And this is the idea of HyperIntelligence. The answer to the question before you ask it, perhaps the answer to the question before you know you need to ask it. We're trying to get rid of 37 clicks. Every single time you have to click, you lose half your audience. If you click 37 times, you lose 99.9% of your audience. What if intelligence was just around you like vapor? And that's the promise of HyperIntelligence. And so we set about taking all of the insight that's in the MicroStrategy metadata architecture and all the insight that our software engine could extract from massive enterprise databases. And we built the intelligence and the framework so that that engine would work for you in the background while you're doing something else. It was a pretty profound idea. Let's turn the entire the entire, workflow on its head. Ask not what you can do for your software. Ask what the software can do for you. If I'm looking at something that has no intelligence on it and there are a million possible insights I might have, Is there a way for the software to find the insights and surface the 198 of them and then write them in some kind of elegant fashion into the interface, so that in a glance in 5 seconds, perhaps in one second, I might get the benefit of a 1000000 different queries. This is a it's a profound paradigm shift in intelligence. We call it hyper intelligence. The idea is making everybody 100 times faster, 100 times smarter, 100 times stronger in the way that they use their insights. And that takes us to our present day 2020, where the most exciting thing we've got on the horizon now is combining HyperIntelligence for the enterprise with cloud intelligence and a multi tenant SaaS environment so that anybody in the world can come to the MicroStrategy website and within an hour, they can build a HyperIntelligence application, plug it into their enterprise data, secure it with their enterprise model and deploy it to their enterprise users, all without asking permission, all without waiting for some internal IT department to do something, all without some sophisticated installation. As fast as they can conceive of an idea, they can build an enterprise grade secure hyper intelligence application and not just deploy it to everyone in their enterprise. Potentially using our SDK, they can embed it into their customer facing website and deploy it to millions and millions of their customers, start to finish in an hour, less than an hour if you know what you're doing. This is just tremendously exciting, probably the most exciting thing we've done in the history of the company for sure. And it opens up the possibility for us to give intelligence to a 1000x as many people and make it a 1000x as easy to use. That's where we find ourselves today based upon this journey of harnessing technology to bring magic to the world. A few words about our company. MicroStrategy is stronger than ever. We're the largest independent publicly traded business intelligence company in the world. We've had 100 competitors that have risen in our marketplace to offer some aspect of what we offer. They have come, they have gone, some have shut down, some have been bought by other competitors. Eventually, they've all been amalgamated and or harvested. And today, we compete against divisions of major conglomerates like Oracle, SAP, IBM, Salesforce, Microsoft. But MicroStrategy is the pure play. We're committed 150% to this business. We love it. We breathe it. We direct all of our energy, all of our capital to support it. I think that's what makes us special. Our customers recognize that. Analysts recognize that like Gartner Group that has rated us at the top of the business intelligence industry as the most full featured, most technically proficient, most comprehensive solution year after year. We have 2,000 very, very committed employees, including about a third of them in our R and D Engineering department. We are an engineering led company and everybody in our company has the same exact mission to make the enterprise more intelligent. That's our job, make every enterprise a more intelligent enterprise. Our customers are 4,000 large enterprises across 27 countries. We do business with all types of enterprises, governmental enterprises, every industry, retail, banking, finance. 66% of our revenue is recurring every single year. And our renewal rate is 95%. So, we have a very loyal customer base. We have a very stable revenue model and business model. And that allows us to take a very long term view toward the future of business intelligence. We're profitable at our scale. We're about a $470,000,000 a year revenue operation. We run 80% gross margins. We believe in using our capital efficiently. Over the past 3 years, we've repurchased 2,300,000 shares of our stock, that's about 25% of our shares, at the cost of $307,000,000 The capital that we have not used to repurchase our shares, we have used and converted into Bitcoin as our primary treasury reserve asset. We're very enthusiastic about powering our treasury with Bitcoin. We think this is a fundamental engineering breakthrough, a digital monitoring network capable of collecting, storing and channeling monetary energy over long periods of time without power loss. That makes it an ideal treasury reserve asset. We think over time, other companies will grow to appreciate this and also consider as a treasury reserve asset. When we had our excess capital in our treasury in cash, I don't feel that we were given much credit for it from outside investors. And when we asked them why, they often said, well, you're not going to get a very good yield on it and it looks more like a liability than an asset on your balance sheet to us. So the transformation from cash U. S. Dollars as a treasury reserve asset or short term sovereign debt as a treasury reserve asset to Bitcoin as a treasury reserve asset has in essence converted our large balance sheet from a liability to a strength to an asset for us and for our shareholders. And we're very positive about that. The Q3 was the strongest quarter we've had in the last decade. And so not only have we been doing things on the balance sheet, we're doing things operationally with our P and L that I'm very proud of and very excited about. This year, we were faced with many challenges and these challenges forced us to rethink our operations. Post COVID, we pivoted rapidly to embrace the virtual wave. And the virtual wave means rethink how you deliver your marketing message, how you deliver services, how you deliver product and how you conduct your corporate operations. So we delivered a free service offering that was very popular with 25,000 of our customers. We delivered a free education sorry, a free upgrade service offering in order to help our enterprises upgrade to the enterprises upgrade to the latest version of MicroStrategy. And we built and rolled out a new on demand support service called Expert Now that allows any of our customers to very rapidly set up a 1 on 1 virtual consultation to solve whatever problem they might have. And so we didn't allow the lockdowns or the challenges of dealing with COVID to distance us from our customers. In fact, we used it to become more engaged with our customers. We also rebuilt our virtual our marketing model with virtual marketing events. We rethought the way that we deliver messages to our customers and to our prospects. We revamped our website. We revamped all of our symposiums, our MicroStrategy World events. We rethought the way that we communicate to customers in video. We restructured the way we deliver consulting services and professional engagements, so that we could optimize for remote delivery models. The result of these things is we increased our reach, increased the frequency of meetings, increased the productivity of all of our professionals. And we did all of this with a decrease in cost. We didn't stop with revamping our sales, marketing and service functions. We also went on to rethink our back office functions this year. And we revamped them in many, many ways, working diligently to increase our productivity, increase our agility and reduce our cost, all by thinking about how we use technology. Our customers look to us for a modern open enterprise platform for doing their business intelligence. And there's a bit of migration from experimental single stack departmental tools to enterprise grade platforms. And this is consistent with our strengths and our focus. And so we're pretty pleased with the way the market is evolving right now. Our customers all want flexibility. They like to reduce costs. They like to see aggressive shifts to data coming from the cloud. And accordingly, we've focused our technology effort to support these industry wide trends. We're now focusing our technology on delivering the power of MicroStrategy's Business Intelligence in a multi tenant SaaS environment that will allow anyone in the world to build and deploy applications rapidly, hyper intelligence applications in less than an hour, full featured business intelligence applications in an afternoon. We think this is going to be catalytic to many, many good things for our customers and for companies that are currently struggling with how do they make their enterprise more intelligent? We did adopt an aggressive capital restructuring program this year. We thought that it was important to our shareholders and to the company's continuing health as a going concern to do something. And that consisted of launching a $250,000,000 tender offer to buy our own stock back and also launching a $250,000,000 conversion of excess capital into Bitcoin as a treasure reserve asset. That was well received by our shareholders. We did end up purchasing about $60,000,000 of our own stock as part of that tender offer. We had excess capital and we converted that excess capital into Bitcoin. All in all, our Bitcoin acquisitions were about $425,000,000 in cash and we purchased at about $11,111 per bitcoin. Bitcoin has accreted since then and we're pleased with that. We're pleased that now we have a balance sheet that offers us asymmetric benefits, a good hedge against monetary expansion and any degradation of the purchasing power of our treasury, as well as tapping into the virtual wave as technology partners begin to adopt Bitcoin as a standard as additional institutional investors discover Bitcoin and as the monetary supplies of the fiat currencies of all the countries where we do business expand, we feel like we're well positioned with our balance sheet strategy to be able to benefit and ride that wave. We have we've not stopped there. Consistent with our virtual wave strategy, we've embraced much more aggressive digital marketing. We're much more present on Twitter. We're much more present on YouTube. We have dematerialized many, many things that we used to do manually and put them into our own website. Our website has been modeled on YouTube. Now anyone can go and register on our website quickly and they can sift through videos that range from marketing videos to education videos to support videos to corporate videos that support them if they wish to apply for a job with our firm or if they're interested in investing in our firm or if they want to know why we have chosen to support Bitcoin. All of these things are available on demand in a very scalable fashion. We believe that that's consistent with the virtual wave. We expect to continue to cultivate our virtual marketing presence and to use it to deliver all of our messages out to our constituents. And this has given us new opportunities and new ideas. We're hard at work thinking about how we can tap into the opportunities that are emerging in the Bitcoin economy, thinking about delivering business intelligence to the Bitcoin blockchain, thinking about ways that we can contribute to the community at large and also channel the energy of the community in order to make MicroStrategy a better company, make the MicroStrategy product line a better product line to benefit our customers and of course to benefit our shareholders and our employees and partners. Now, I could talk for hours and hours about any of these things, because I'm quite enthusiastic. But I think that this is an opportunity for me to introduce you to a stellar executive team. This is the strongest management team we've had in the history of the company and I've got 31 years of experience to call upon. I think you're going to see, it's a very focused team. Everybody knows how to play their position and yet they communicate and coordinate in an extraordinary fashion. You're going to see Ken Lang present our technology plans and also show you some of the cool technology that we've either just brought to the market or we're bringing to the market this year. Hugh Owen, our Head of Marketing and Education is going to talk about how we're reaching out to all of our customers and prospects to communicate the message and make the world a more intelligent place. And Phong is going to cover our sales activities as well as our finance operations and explain how we put all this together. So with that, I'm going to go ahead and pass the floor over to Tim Lane. Thanks very much, Michael. I'm really excited to be here. I've been in the business intelligence journey since the early 90s having the opportunity to work with a number of other vendors and I have to say that this journey over the last 6 years with MicroStrategy has been the highlight of my career. And there's a lot of really fantastic transformations we've been able to provide for many of our customers over this period and we're very proud of the work that our engineers have done and the support of Michael and the rest of the leadership team in supporting this transformation. So one of the things I really want to talk about is, one of the key parts of our transformation is really how we've driven the user experience. And over this last couple of years, our core goal is how do we really touch every user where they are, and Michael talked a little bit about the role that HyperIntelligence plays. And it's always been our vision to have intelligence in the hands of everyone. And we don't just mean the data analyst or the data scientist or the manager, but everyone up and down an organization should be able to take advantage of having the right access to the right information at the right time. And HyperIntelligence has been a very key product offering that we brought to the market first in the 2019 platform release and we've really hardened and it's been one of the fastest growing products and I'll talk a little bit about that. Secondarily is the transformation for us on the ability to deliver rich quality reporting and analytics to users, whether they're business users, analysts, whether it's taking advantage of content in your tool of choice or leveraging MicroStrategy's tools. And we've really transformed our user experience with dossier and the new library, our web, our mobile applications that allows you to really provide rich content, infographics, production reporting, book of trade, really bringing all of that key organizational data analytic to every user. I'm going to cover those things off. So we'll start off with HyperIntelligence and I thought I'd just I know there's a lot of new folk on the phone that may not be as familiar with MicroStrategy. So we'll start off with HyperIntelligence, and HyperIntelligence, as I mentioned, has been our fastest growing product. And for HyperIntelligence, we have flexibility of how you can inject key analytics, key information in front of users. And the first area of this injection is in the HyperIntelligence web offering. And this through Chrome or Edge plug ins allows you on any website you access when you've got a keyword match or a pattern to actually find out what intelligence is available on your system and present it right to the users. It's a really rich tool and we've had a lot of really great feedback from many large enterprises that have really got a lot of legacy applications, a lot of applications they don't own themselves that they want to provide additional corporate insight or customer insight on top of projects that would be very expensive for their reengineered to integrate that data in. We all carry our mobile phones in our pockets, our kids do as well, and we want to bring the ability to bring that rich analytic where you are anytime. And we've been an early innovator, as Michael talked about, with mobility and the ability to bring a rich set of information at my fingertips on my mobile device is very powerful. You know, be able to search find for someone integrated into calendar. I've got a meeting, in an hour's time, I can see information about the customers, the cases, the enhancement requests, the participants, right, key analytics, key data, exactly what I need to go into that meeting. And that's the hypermobile offering. The hyperoffice offering gives me the ability right within outlook where I spend a lot of my day with the incoming and outcoming of the business, The ability to highlight key points of messages and to let me know key facts that I need to address, Maybe this particular employee needs coaching, maybe this customer has a big deal about to come, maybe this analyst is a highly influential analyst and they've actually generated a certain amount of activity for us. And so we want to be able to treat every interaction we have with whether it's structured or unstructured data in websites, on my mobile device and in the web with the right intelligent insight and that's really what the HyperIntelligence family provides for us. HyperWeb and here's an example in HyperWeb, which we refer to as HyperVision and you can actually see this as a sales force site, but we can equally highlight content and put appropriate thresholds on it. And here you can see accounts that are good and they're in green and accounts that are red are problematic. And so very quickly, we can take any page, any set of content through the plug in and highlight that information. So even without looking at the card, I can look to see that. We've got some fantastic customers like Sonic Automotive and many other great case studies if you're interested in, I encourage you to take a look at our website that really articulate how some customers are really transforming how their business operates by the ability to integrate HyperIntelligence into their web flows. And so HyperVision is a key, is one of the elements in the web. But when we took a really look at it, there's the ability to use the browser plug ins in Office, but equally many customers have their own applications that they want to make it much easier to integrate content. And this year, we launched the Hyper SDK. And the Hyper SDK allows me to embed HyperIntelligence into any application with a single line of JavaScript. And so I thought I'd quickly show you an example. And this is an example, you don't have to take it down. You can actually come to microstrategy.com, you'll see the HyperIntelligence icon in the top left hand side, click on it, and you can actually see some of these websites in action, some of the things where you can see us injecting, the HyperIntelligence SDK into many popular the HyperIntelligence SDK into many popular applications. You can see this is a fairly standard web application and in this example, we've got a control here that turns on HyperIntelligence. There's no plug ins in this browser. You can see that we've brought this application to fruition. If I inspect the code behind this page, you can see the single line of JavaScript required to instantiate Hyper and you can see the other visual elements that were required just to put that controller at the top that turned HyperIntelligence on and off. And so the ability for us seamlessly in our own implementation of this, this is the only change we needed to make to our own code to support the ability to leverage HyperIntelligence across many of our properties and many customers that have their own applications, whether it's legacy application or more modern application can take advantage of the HyperIntelligence SDK, bring their corporate information together and share it. For us, it was not we wanted to ensure it was seamless and we could bring hyper intelligence information to everyone where they are, But equally, we need to make sure we look after the full experience and part of that is making it easy for you to actually build these Hypercards. And so in this example, I'm in the HyperCard editor, and I can equally create my data set may not have that value in it, and I want to augment the data, I want to create custom calculations. And right within the interface, I'm able to very easily create calculations and then have those calculations visible straight away into the card that can be embedded 1, 2, 3, 20 different applications. We also are shipping, we'll ship a rich set of card examples and with the ability update or reset the location of the data set, you'll be able to switch out some of the cards that come out of the box and connect it to your own data. Maybe if we've got some great sales force cards or some great information from Workday or other business systems, right, employees, product cards and the ability for a person experimenting, working with HyperIntelligence to very quickly connect their data up to it. And then here you can see example of us being able to write within the browser control, search for data coming from HyperIntelligence. We can provide thresholds, as I showed with HyperVision, the ability to define how this card is going to show. Is there going to be a particular card and orientation for the type of information we want to expose or do I want to put particular thresholding in place where particular good values that hit certain criteria are shown in one way where other values are defined in other ways. And this is an example in this implementation where we leverage the highlighting and you can see that there's no browser lot of richness So we've got a lot of richness in what you're able to do from the North Ring side, as well as how you can consume it in some of your very favorite applications, whether they're more modern applications or whether they're legacy applications that you just don't want to touch, you can bring HyperIntelligence to all of those. I'm very proud of what we've actually done there. In terms of dossiers, which is a very powerful metaphor for us to actually provide rich content, we've really been focused on how we can really create beautiful content, how can we allow you to create whether that's kind of the production reporting that you used to, whether it's rich task boarding, whether it's content running on mobile devices, we know that we need to be able to support all of the form factors with really highly visible content. And in this example, you can actually see a piece of content that we're authoring this client and you can actually choose to leverage the dynamic treatment of how we work when I go from large form factor like a browser to a smaller form factor like a phone, but equally at the same point in time, I can control what elements I want to expose on the mobile device. Maybe these things aren't appropriate for mobile consumption, where these things are appropriate for mobile consumption and allow you to kind of go through a lot of rich kind of formatting for the kind of content that you want to be able to materialize when we build out content. At the heart of what we actually build is the intent that we bring dossiers into the hands of all of the users. And dossier themselves as a content type can equally be launched from HyperIntelligence, maybe as a key fact to keep API that we actually want to bring to the table and a click away you can actually go to the detailed content. You can see we can really build very beautiful sticker ready content. We've got a richness in terms of key visualizations that you'd like to take advantage of, whether it's mapping visualizations, right, whether you want to overlay key statistics that you want to bring to the table, key performance indicators, whether you want to create rich infographics, production operating dossiers and production reports, book of trade that you want to provide to all of users. You used to the PowerPoint that you would distribute or the Excel that you distribute, well, you can distribute a really rich book of trade that itself is dynamic, it's refreshable, right, it's filterable, you can set a particular view and you can share that to sets of users and based on their access control, they can kind of get the content they want. And so in here you see me doing some of the formatting, showing you some examples of that, but at the same point in time, we're making this exposable to you whether you're in the web, whether on your desktop or whether on a mobile device. And so a lot of great improvements and the feedback from our customers has been fantastic and they really love what they can now do with dossier with their applications. So that's super fantastic. We believe that if you can imagine it, you can build it with the MicroStrategy. And there's a couple of example of dossiers that we've actually in content, we've actually been able to produce rich info kind of graphic content, leveraging some of the improvements we've actually made in the product and what we've done. So delivering hyper intelligence, the ability to inject information everywhere and to allow you to have a richer set of content with dossier And these have been transformational and we've seen as we've moved our customers from our older environments to 2019, 2020 and very soon the 2021 platform release, we're really seeing dramatic expansion of how they're actually able to take content and push it to our end users. In MicroStrategy, we believe in using all of your assets, not just your servers, but also your machines. We're an early innovator of taking advantage of the mobile devices. And we've also been focused on allowing me to most effectively use my desktop. Apple has been doing some amazing things with the new M1 chips, right? We look at some of the other innovations that are on the Microsoft platform and Intel. And it's super exciting to see what we can actually do in our local machines. And so we've actually got brand new clients that are able to connect to our rich cloud offering to allow you to actually have a rich set of content available for you on your desktop and allow your desktop machine connected to our cloud environments to work while you're not working, right? While you're asleep, it should be working, it should be getting your latest data, caching it, building out your book of trade. So whether you're online or offline, you have rich access to data. Integrated into the MicroStrategy app is you can see the integration of HyperIntelligence and HyperCard. So right on my laptop or right on my phone, I have access to my book of trade, I've got access to all my key facts, my employees, my products, my SKUs, my rich content, my dossier content, my production reports, all in one place available for me, cash, available online and offline and really providing a dramatic degree of productivity and dramatic improvements in performance and usability for the user. And so we're really proud of what we've been able to achieve and the feedback from many of our customers is really positive. They like that they can actually be disconnected, they can have a rich client, but at the same time, it's fed by that same rich cloud backend. And so the MicroStrategy client works for our customers in their on prem deployments as well as those that are taking advantage of our MicroStrategy cloud enterprise environment or in our new cloud offerings that are coming out. So we're really excited about this offering and what it's going to provide. At MicroStrategy, we believe in an open architecture, right? MicroStrategy is very much to Switzerland of business intelligence. And so that is not only that we can consume data from the different sources, right? We love all databases the same, whether you're a modern cloud database, a Snowflake or whether you're a SQL based database or a big data source, we want to support all of those data sources. But equally on the consumption of MicroStrategy, we want to allow you to be able to take advantage of the MicroStrategy platform from any of the tools or interfaces you use. So we've built a rich set of interfaces where you can take advantage of MicroStrategy from some of the other tools you love. We love our tools. I'm very proud of them, but whether using Excel or Power BI, right, or Tableau or as a data scientist, RStudio or Jupyter Notebook, we want you to be able to leverage that richness of that metadata, semantic graph and micro strategy, those visualizations of components, the data and be able to bring them into your client experiences, right? We would like MicroStrategy to the single point of truth for you. And we've seen many customers that have got users across their organization, they're using different tools, being able to now for the first time, being able to leverage the MicroStrategy platform to facilitate all of those needs. Secondly is, and that's the tool side of it, but equally, the modern applications today have the need to integrate analytics and data across them. And so whether I'm building a custom application, right, or on an OEM, having a rich set of API and the DevOps mindset gives the ability to really build a lot of greatness into your applications. And at the heart set of when we started really replatforming the platform a couple of years ago, we knew that having a really strong REST API as well as a set of Python and other interfaces would give us the ability to dramatically increase the rate of which we can support the embedding of analytics and analytic workflows into applications. And we've got many, many large OEMs that have signed with us in the last couple of years and corporations embedding micro strategy into analytics and workflow because of this. And we're really proud of what we've been able to do. The Workstation product, which is our unified tool, fully takes advantage of these open APIs. So if you can see it in Workstation, there's an API under the covers to take advantage of and many of our customers that have moved to the later versions of our software have really been able to take advantage of that. From a deployment side, we're also open and we're open to support the key offerings. So whether you're on prem, right, in a Windows environment or Linux or you're in cloud taking advantage of AWS or Azure or in the future being able to take advantage of Docker and Kubernetes and containers, we want to be open to allow you to deploy to all of those environments and shape what you need to have. Here's an example for me, many of you on the call here are experts in Excel, right? You do modeling, how does this company go against that company? And so sometimes you got to grab the data, you got to refresh it, you got to put it in, you got to change your formulas. And so in an environment where you've got a rich system of record that has access to all of these corporate truths and data sets, you'll be able to want to integrate some of those in. In this example, you can actually see that I was able to go to MicroStrategy, look for certified content. In this particular example, I came to my favorite tech dossier, I filtered it on the clients division, I'm looking at some of their key features, and then I can reset that set. So I can actually take chunks of data. I can take data from visualizations from MicroStrategy, some of the tables from MicroStrategy, I can have different views of the data, I can take advantage of different filters and then I can use that to build and shape out that model, those briefing books that I may want to use in Excel and have them available to myself. And one of the things that's exciting as we kind of do these kind of things is that we also understand the importance of security. So maybe myself as a user have a lot of rights, a lot of access. So when I share my Excel work, my Office 360 Excel workbook with you, I want to share it and I actually want to make sure that I remove the data. And by doing that, the workbook has got the template you need and when you as a user come in, it will go against our enterprise security and you'll get the data that you're entitled to see. All your other business calculations and computations you have running Excel will carry through, but the data itself is cleared and that template is now available. So really provide richness of supporting the workflows of those that use Excel and I know many of you on the call will be Free Connect Excel users. The other some of the other clients we have, so whether using Power BI like in this example, you can actually connect to that rich micro strategy infrastructure and take advantage of that rich data, take advantage of that row and column level security, the complex calculation, the connection to all of those data sources that we actually provide. And so in this example, you can see Power BI, but we also have connectors to Tableau as a source. If we look at the last couple of years, Michael talked a little bit about the work that we've been doing to integrate AI into our platform, a key part of also doing that is to really connect to those data scientists. And we were an early innovator in data science with integration of R into our platform, but equally, we've really worked on the Jupyter Notebook, R Studio, our environments where many data scientists live. And so in the MicroStrategy product, we provide you the ability to actually leverage the data from MicroStrategy into those computations they're doing in those tools, but also then provide that rich enriched data and those analytics back into systems like MicroStrategy for provision of content through hyper intelligence and dossiers to your end users where they live. And distribution of analytics from data science has always been a problem that many data scientists have faced. And in this model, we're able to provide that insight that comes from your data scientists all the way to your users independent of where they live. And we provide this rich set of integration and libraries in Python and R, as well as rich visual integrations into those systems really help those data scientists do their job. MicroStrategy, as you know, we support some of the largest companies in the planet, large banks, financial institutions, insurance companies and so forth. And for them, us being secure, reliable, a support of single version, the truth is so critical to what we do every year. And so we really focus on continuing to ensure that we've got richness in what we do. And so part of the investment is really supporting our transition from our developer product to our workstation to allow it to be able for those analysts, those data scientists, the business users to be able to shape and augment their system of record to really shape what it looks like and it's pretty key. Compliance and risk is really important, GDPR, HIPAA. Many standards are really touching many of our customers, particularly those global enterprises and we're really focused on ensuring we can support those standards and enhance and grow those standards. We're broadly supporting OpenID across the platform to better support portability and ability for people to provide a seamless experience of the user from the user interface, the client experience, all the way down to the data sources, including working with newer sources like Google BigQuery and Snowflake and some of the expansions that we're seeing in Teradata and SAP HANA and other great sources. Scalability also is something critical. We've always had fantastic scale at micro strategy and we don't rest on our laurels. We focus every single day about providing better, faster access to more and more data because the world is not getting short on data, it's growing more data every single day and we're actively working to support that. And there's a number of really fantastic improvements that are coming to the market this year on the scalability side. We're excited that we're going to see dramatic improvement this year on the publishing of cubes and the data volume that we'll actually see in the platform with the releases coming this year is fantastic, some fantastic improvements on Windows and how we work with data coming in this release that we've got for this year. And that's on top of many of the improvements that came into the 2020 product. So many of our customers that are in this journey that have been working their way through our 10 series through 2019, they're going to see dramatic improvements in performance and experience as they move to the 2021 platform release, whether that's on premise or in the move to the cloud and we're seeing a lot of customers that are really this year is that transition point to really have them move to the cloud. We continue our support for gateway and optimizing systems like Google BigQuery are really key and push down, really taking advantage of the data. And I'm really proud of how the teams partner and work closely with engineers from places like Google and Snowflake to really improve how we work with these systems of records for many of these organizations. And cloud is a very key part of not only the MicroStrategy platform, but many, many of our customers are moving to cloud data sources. And so you'll see a lot of expansion we're actually doing with new cloud object storage, really supporting those big data, big data lake, leveraging those with MicroStrategy. So whether it's Amazon S3 or Azure Data Lake or the Google Cloud Storage, really bring that together and supporting that rich tapestry of file type that people are taking advantage of in those systems and really also leveraging systems like Spark and others to really provide really fast experiential ability to take very large sets of data, bring and analyze it in the platform. I talked a little bit about what we're doing around single sign on and authentication and continuing to expand our driver footprint, right? In MicroStrategy, we're not linked to portrayals of SQL Server or Oracle or SAP HANA. For us, all of the databases are important and we know in every one of our customers, there's multiple systems that they actually have in place. And so we're really focused on really supporting that. So if we actually look at this last couple of years, we've been kind of transitioning our tooling and our client experience is really transforming how we've done it. We've laid the tapestry for our cloud offerings and we're excited that this year culminates in closing on one chapter of that transformation and opening the new chapter of the next set of transformations we've been doing. And Michael talked a little bit about HyperIntelligence and we're excited that this year you'll see the launching for us of releasing HyperNow and then you'll see in the future Business IntelligenceNow. And so this is really the transformation of how do we make it even simpler to bring a HyperIntelligence offering with for those that are not familiar with MicroStrategy to expand our audience into departments in other areas of maybe some of our existing customers or to net new companies. And we've really focused on removing the friction points of doing it, 1st for the HyperIntelligence offering, secondarily for the Business Intelligence offering that takes advantage of dossiers and library and some of those other pieces and really transforming the way that we'll actually bring it to market. And Hugh is going to talk a little bit more about some of the things we're actually doing about that offering. So HyperNow is something that will be accessible and this will be the first time really a full offering is really exposable and interactive from our website. So you'll be able to go to the MicroStrategy website, go into HyperIntelligent and you'll actually be able to explore and see a lot of great videos of how it works, but also take it for a test run, take it for a drive, and we expect to see a lot of customers and prospects and existing customers even really getting a feeling of what they're able to do with HyperIntelligence. For HyperNow, our core focus has really been about reducing friction. And I've gone through our work flows end to end 100 of times myself personally, really looking at where the friction is at each part of the cycle, putting my mind in terms of what if it was my parents going through the workload, right, what is it, it's someone else that's going through the workload. So we really focus very much on removing the friction for people to take advantage of business intelligence, so we can get it, create it, show the insights and very quickly ingest it into applications that 1,000 or tens of thousands of users can actually touch. We always had the vision in business intelligence to touch every user and with HyperIntelligence for the first time in the history of the industry, we can actually touch every user, every employee in the company, every partner can actually benefit of what Hyper can do to provide the right insight at the right point. And so we've focused on really eliminating that number of clicks to take advantage of it, seamlessly downloading the tools, so you've got everything you want, really simplifying the login experience, really showing the users exactly what they need, don't show them too much, really ability to really build out that rich set of content really simply, share my cards with others and really support deployment. On the back end side, we've built it to be scalable, reliable and manageable. We're going to see dramatically lower costs for us to actually operate and manage the HyperIntelligence offerings than we've seen historically in some of our other cloud offering and we really take advantage of some of the very latest technology and technique to deliver this offering to market and I'm just so excited about what we've been able to deliver in this last period. We've got a lot of richness in our roadmap. Our roadmap is really designed to support our customers, whether they're customers on premise today and we've got a rich set of offering for them in the 2021 platform leases this quarter. But we've also got a lot of fantastic pieces for many of those customers that are going to be in transition to cloud, moving to the MicroStrategy cloud environment or to some of these new hyper and Intel now offerings that we've got coming to the market. We've also got a rich set of items that many of our customers will be able to take advantage of. So we have a platform release every year, we have an update every quarter and in our HyperNow offering and our client tooling, we're releasing updates every month. So a really modern agile delivery of software is going to allow us to continue to innovate to many of our customers and we're really excited about the work that we've actually done with our enterprise support program to move many, many of our customers through to later versions of the product, our 2029 and above product platform releases and excited about what's going to be. So in summary, if we look at all the elements some of the things I've really talked about in roadmap, and I could literally go on for hours about this, but I know I'd get the hook from Phong to get off the camera. There's those 3 key offerings that we've really 3 key elements of the offerings that we're really bringing to the market. And firstly is HyperIntelligence and as I mentioned, really is the most rapidly adopted software I've ever seen in my career and the most rapidly adopted software that we've actually got at MicroStrategy. And we're really focused on that and that product and everything we're doing there is really to support our sales cycle, support our customers and we're taking feedback that we get from customers every week, every month back into the software and we're really turning it really quickly with our agile releases. Secondly is cloud. And cloud, if you rolled a clock back a couple of years ago, when I would go to a customer council, they said, it'd be 10% of people had their hand up that they were going to move to the cloud. Now a year ago, it's like 50%, but we're thinking about it moving to the cloud. And this year, it's a dramatic seat change in terms of the number of customers, particularly with the virtual wave, they're looking to move to the cloud offering. And Tong will really talk about how we're going to harness that and some of the things that we're actually doing to take advantage of it. And thirdly, and as someone who's been involved in embedding our business intelligence through my time here at MicroStrategy and previous companies, there's a great opportunity for embeddability of analytics in every application, whether you're an OEM or a corporate application, and it's been a key growth driver for us at MicroStrategy, and we're super excited about it. So that's enough for me. I'm sure I've gone over time. I apologize for that. Sorry, everyone. And I'd like to hand it over to Hugh to talk about demand generation and some of the productivity growth that we've seen. Thank you very much, Tim. So a strong introduction, my name is Hugh Owen and I've worked at MicroStrategy for 20 years, it'd be 21 years in January. And one of the people that Michael talks about in terms of loving and reading analytics to the long term benefits of our customers. And the I'm extremely optimistic about the opportunities we have ahead of us, partly through the investments that the company has made in our products and our services and also through the investments we've made in our operations and the investments we've also made in the technology that Tim just walked you through the investments in the platform across those three vectors of open, modern and enterprise. And I'm also extremely optimistic about the growth opportunities for MicroStrategy based on the forecasted growth within the market. We see a significant growth forecasted within the market by industry analysts over the next 4 to 5 years. And we see a significant amount of that growth forecast to take place as organizations increasingly move their on premise applications to the cloud and take advantage of cloud hosted SaaS applications. Per Tim's overview, we are extremely well positioned to take advantage of that market shift. We are investing heavily, as Michael articulated, in bringing as much attention as possible to our website. And if you go to the mikestracci.com website today, you'll see an incredible array of content explaining how Mike Stracci can solve challenges across various different industries, various different enterprise investments, solve various different analytics challenges. And our website is a testament to the adage that content is king. Right? And in a non digital world, we would have user conferences once a year, once a year in North America, once a year in Europe where we would bring together amazing customers, some of the many 3,500 organizations that we're proud to call our customers would come to these user conferences and speak about the challenges they're solving specific to their department, their industry. And but the it was an incredibly inefficient process. In order for them to tell their story, they would have to come to the event. In order to hear those stories, you'd have to be at that event, right? And as we embrace the virtual wave, we're able to capture all of these stories and publish some of these stories in video form on our website. The same is true for if you were attending one of these user conferences or one of the many symposia that we had run around the world, we would bring together some of our talented consultants, some of our talented engineers who would walk through amazing applications of MicroStrategy. And if you were fortunate enough to be there, you would see how you could solve these challenges and solve these problems using various parts of our analytics platform. Pivoting to today, we are now able to capture 1,000 more videos from our support engineers and experts, from our consultants, from our technology engineers and publish those as videos on our website to provide anybody with the ability to search through and find that content that helps them solve those problems. And so combined, this content lets us do many things, right? It provides an amazing experience when you come to microfce.com because now you're able to find articulations of how to solve challenges. It also increases the amount of content that people find and then share elsewhere, share via social media, bringing activity back to the microtracty.com website. And also the richer the content, the more that our assets and our website is indexed in such a way that we increase the amount of organic traffic back to our website. We want to further increase the amount of traffic that comes to our websites. We're investing heavily in running digital marketing campaigns that are video based, that are intent based and find people as they're looking to solve challenges, be them analytics challenges, be them challenges that are solved by HyperIntelligence in call centers, challenges solved by HyperIntelligence related to human resources, related to sales. Our digital marketing campaigns running right now are focused on how we can solve those pain points with HyperIntelligence and we articulate the value with videos. I honestly think that the best articulation of how we can help people today are in short explainer videos that then bring people back to our website to learn more or to launch straight into the HyperVault Now product experience that Tim talked to you through. When they come to our website, what they'll find is a very personalized, cleanly categorized modular experience that is familiar. There's no doubt that it echoes some of the organizational principles that YouTube have built their website around. And it enables people not to be sold on content, but to get help to the problems that they're facing, to discover new content as they work through various different related playlists and to play those videos, to consume multiple different videos and get additional information as they're watching our experts, our customers explain how they've solved these challenges. Then when they're on their website, we've invested heavily to make sure they can do as many things as possible related to MicroStrategy within that same experience. We've integrated our world class education courses and certifications into that same website experience. So as you're looking through amazing videos on business intelligence and hyper intelligence, you can also navigate through our library of courses and certifications, launch those courses and certifications or sign up for instructor led certifications in the same experience. You can also demo the product directly alongside that video content. You can apply for a job at MicroStrategy and you can also launch into trials of the product and starting with HyperDoc Now as of today. We want to take all of that activity and we want to encourage people to register with us so that we're able to know a little bit more about what they're doing. And we're going to drive registrations by offering free trials with HyperDot now, free trials that last 90 days and let them build as many cards and share as many cards as they want on a production go live system that is completely available to them at no rest. We also want to we've also provided trials to our courses and certifications in a similar drive to encourage people to register so that we can continue to personalize the experience when they come back to the website. Tim talked about eradicating the barriers and he and his engineering team have done an amazing job of eradicating through engineering a lot of the technical barriers to building content and sharing content with my strategy, right? The value of HyperIntelligence is magical when you think you can inject intelligence into every single e mail that people already look at, the applications they already use, the websites they live in every single day, right? And we are also on the business side focusing on eradicating as many barriers as possible. And one of the barriers that can be in place in terms of product licensing or pricing, we've completely removed by offering the what I believe is the industry's simplest pricing for HyperDot Now, dollars 10 per user per month. And following on in 2021, when we launched the sister product, Intel. Now, we'll have a similar simple pricing model, making it easy to use the product and easy to buy the product as well. Beyond focusing on all the benefits of our websites and bringing people virtually into that experience, There are a number of different things that we've embraced this year, pivoting from in person events to digital events, allowing us to have more events, greater reach globally, right? And we've replaced all of the arduous and efficient nature of flying around the world and staying in hotels with Zooming, which has enabled us to spend way more time with our customers, way more time talking to potential customers, way more time with our partners and be available almost instantaneously face to face with anybody who needs our help, right. We've significantly improved our quote to cash process moving from moving towards electronic signatures and a variety of other virtual techniques to help us move through that process as efficiently as possible. We've replaced what would have been lengthy upgrades with very, very fast upgrade processes, providing customers with the ability to be on our latest software and take advantage of all of the stability, performance and capability improvements that that enables. We've moved from on-site delivery to remote delivery, giving us access to a broader set of resources and the ability to schedule those resources and the consulting results and the specialties without any waiting. And we've moved from an in person conference to a virtual conference. And I encourage you all to join us at our virtual conference, myshatiworld. Now, next February 3rd 4th, where we'll be covering in huge amount of detail all of the benefits of MicroStrategy 2021, the new platform release that Tim mentioned. We believe that by investing in all of these processes, by making a commitment to all of the benefits of virtual content hosted on our website with a product that is easy to use that we can help our customers in a myriad of ways. We believe we can help move them from experimental products, spreadsheets and tools to enterprise grade software. We believe we can help them move from team deployments to departmental deployments, helping them scale successfully as more and more people use analytics successfully to do their jobs well to answer the questions that they're answering thousands of times a day, move from departmental applications to company wide trusted applications that can run enterprises of tens of thousands or hundreds of thousands of employees, to move from on premise solutions to cloud hosted solutions with all of the benefits cost wise, performance wise, impact wise that come from that shift and from private cloud to SaaS offerings like HyperDot now. So that those are a number of the different things that we're doing to drive and take to drive growth, generate demand and take advantage of the opportunities that are in front of us. And with that, it gives me great pleasure to introduce Fang Li, our President and CFO. Thank you, Hugh, and thanks Mike and Tim too. Before I wrap up the formal part of the presentation, I just wanted to remind everyone, if you have questions for any of the panelists, any of the speakers, we'll go through Q and A at the end. And if you start queuing up your questions now, you'll have a better chance of having them answered later. So let me go through and just talk about sort of why I think why we think we're well positioned for growth. I'll go through a lot of these details in a little bit. But first of all, we're the largest independent publicly traded BI company. As Tim talked through, we have the leading enterprise analytics platform. We've been around for 30 years. We're an enterprise free company and we think we're well positioned now for growth. I'll walk through our customer base. We have, in my opinion, in the enterprise BI business, the strongest customer base that there exists today. And I'll walk through some of the metrics as to why both because they're large enviable customers and also because we're highly diversified across industries, across geographies and also across customer sizes. 3rd, our revenue profile is extremely healthy, 65% plus recurring revenue, 66% to be precise. And across our 2 largest revenue segments, product support and product licenses, we have 90% plus gross margins. And typically software financial models, our P and Ls, if you will, are very healthy. Ours are even more healthy for a typical software company of our size. 4th, we believe and we started to show some really strong drivers for growth highlighted by cloud transition, but as Tim also mentioned highlighted by our HyperIntelligence product and our embedded intelligence products. 5th, we've really started to optimize our cost structure over the last 18 months, and we think there's more opportunity to do that going forward. 6th, we've proven in the past that we can generate material cash flow as a company. And based on that management discipline and based on the profitability profile of the company, we think we can do that on a go forward basis. 7th, our balance sheet has been meaningful. To Michael's point, it was primarily invested in treasuries yielding 200 basis points to 2.50 basis points in the past, More recently, utilizing share buybacks and Bitcoin, we've seen some pretty tremendous upside and we've seen that put to work in the last 3 months also. Number 8, possibly one of the things I'm most proud of is we're executing as a company, right. We're executing on our plan, which was to invest in a great product. We rolled out MicroStrategy 2019. We rolled out HyperIntelligence. And our performance in Q3 was the best that we've seen in a decade. So we're starting to see the rewards of that investment. And finally, if you look at the valuation of MicroStrategy today, there is a lot of upside in revenue growth, in EBITDA growth and digital asset growth, which will drive net income growth. So that's the summary. Let me talk about some of these things in particular. Michael talked about the rich product history of the company, including a series of firsts and having been around for over 30 years and being an independent BI company a market where people are seeking in a lot of cases independence from the single stack vendors, we believe that we can continue to be a strong independent PI company. And if you look at whatever analysts you want to look at, here's Gartner's Critical Capabilities Report, Forrester Wave and the list does continue, we're typically ranked number 1 in terms of product quality and we're proud of that. And so that is a strong foundation for growth on a go forward basis. And as Michael and he both mentioned, especially given some of the disruption to the health and macroeconomic environment, we've seen this happen in the past. We saw this happen in 2,008, where companies who are making investments in BI tend to shift towards what they know works and works well as opposed to experimental new technologies and we see that happening again now. This is something that I find always very interesting is and we were asked this question a lot, especially in the Q2 post sort of COVID crisis, the macroeconomic crisis, impacting certain industries, whether it be hospitality or airlines or I'll say mall based retailers and what is the impact of those industries to us? So I'll start on the right hand side. This is our recurring revenue distribution by industry using our top 100 customers worldwide. And the first thing you'll see is there really is not a major segment that we're over distributed into or over indexed into. Our biggest segment is banking with 17% of our recurring revenue. 2nd is insurance with 10%, followed by technology 9%, apparel 9%, retail at 11%. And so this is the benefit of having significant large customers and a long history is we're pretty well diversified. If you look at some of the metrics on the left hand side, our top account, our top largest customer worldwide represents roughly 2% of our recurring revenue. Our top 10 customers worldwide represent 11% of our recurring revenue. This one is always an astounding metric and one that tells you about the significant relationship we have with our customers. Our top 15 customers have been with us on average 22 years. I challenge you to find another BI company that has that kind of longevity in their customers. And our top 15 customers average $3,000,000 and more in average ARR, so average annual recurring revenue. We have over 700 customers that spend over $100,000 a year with us and our renewal rates on a revenue basis. So this is taking our recurring revenue and the percentage of that recurring revenue that renews to customers that come back each year in the 95% range. So that's been pretty stable since about 2015. The reason for this relationship is when you think about how folks use MicroStrategy, this is not your traditional departmental dashboarding, people creating pretty graphs that they then embed into a slide presentation to show to an executive is one time. We're truly embedded in the operations Day to day usage of MicroStrategy and endpoints of sales to make day to day risk decisions for tens of thousands of users. So I thought it'd be useful for me to sort of give some examples of customers, recent ones who have really made investments in MicroStrategy and how to use our software. First is a top 5 global bank that really has chosen MicroStrategy to modernize their financial centers. This is a bank that like many financial centers have pretty limited and I would say old reporting capabilities. In this case, they actually use MicroStrategy or have used MicroStrategy in the past. They have an email distribution PDF report that gets printed out once a day and gets stuck on a cork port. And with that information, everybody gathers around and starts their daily meeting with a review of the results and that sufficed for about 15 years and their view was they really needed to modernize the experience because the competition for commercial bank customers is getting more fierce and those customers are asking for more and more. And so what they decided to do was to replace that with a fully mobile experience using HyperIntelligence, using MicroStrategy Dossier, using MicroStrategy Mobile and putting in the hands of their store managers and their store employees MicroStrategy reports and analytics that actually is also utilizing the same sort of single source of the truth, what we call the enterprise semantic graph to match up the folks who are looking at the data in corporate operations folks and the feet on the ground, if you will, at the financial centers. And obviously, MicroStrategy is a differentiator here, right? HyperIntelligence, Dossia, Enterprise, Semanticraft can't really be provided by any of our competitors. But in addition to that, they needed speed, right. They needed speed in terms of proof of concept, they needed speed in terms of development and deployment, so utilizing our consulting team too. And the benefits are significant and we're proud of these types of operational relationships with our end customers. Another example I'll provide is a North American home improvement retailer, which was really looking at improved customer service and employee productivity. Technology advanced technology advanced place, right? Like you're constantly looking for an item and how many people have sort of walked to a home improvement retailer or driven to 1 working on a project and had to go back multiple times to finally get what they need or to go to multiple different stores to identify the right inventory item. And that was a challenge here. And you add on top of that the increased demand that COVID has brought to the retailers. And in this particular case, what they're really trying to provide was to give their store managers and store users real time SKU information. Imagine taking an Android based device, scanning a SKU and getting back inventory information, sales information, performance information and recommendations that they can provide while on the shop floor, while on the store floor to the end users. Similarly here, right, the need was to provide a Android based or mobile based application that was very intuitive, easy to use, right, even if you're a store manager or someone walking the store for you may or may not be typically used to a traditional analytics dashboard. So instead of sticking a dashboard on a small mobile device, they actually built a custom made Android application using MicroStrategy mobile capabilities and SDKs to provide a very intuitive and scalable application. So you can also imagine when someone's making a query on SKU information, that information needs to return instantaneously. In the end here, we empowered over 20,000 store managers, department heads with this data on store KPIs, inventory product sales and it's been a tremendous success in really changing the experience, not just the customers, but also the employees and think about taking an employee and making them more productive and what the ROI is on that when you talk about 20,000 employees. So another example of a truly operational use of MicroStrategy to transform a customer and an employee experience. The third example I'll provide is one in the space that Tim mentioned, which is really embedded analytics or embedded intelligence. And this is a case where we also are the number one provider in the world. And the reason we are is a software company or a technology company making a decision to either build or to buy, as you can imagine, is a very decision that's close to the DNA of the company, right. Like if you're a software company, you decide not to build it yourself because you think your resources are better off on another piece of software, another area, then you're going to buy something, your scrutiny, how you scrutinize it is going to be very high. And that's why we often win here, right. The technology that we built can compare to and it's up to snuff with what a lot of our customers are looking for, who are technology enthusiasts. And so the goal in this particular case, it sort of harkens back a little bit to some of my post COVID examples as more and more corporations are enabling people to work from home. They really needed to make sure that their security protocols, the software they have in place, their VPNs, etcetera, can be monitored real time, right, understanding firewall utilization, being able to troubleshoot network issues, security issues. And so this company, which is a global cybersecurity company, provides that service, but they didn't really provide the real time analysis. And that's where MicroStrategy came in, right. We're really allowing them to visualize this traffic information, large sets of data at scale. And we're really integrating a lot of different sources of data. And again, queries that typically could take minutes, if not hours using the MicroStrategy platform takes seconds. This was built as purely customized visualization. So this was not an out of the box deployment. It was using MicroStrategy's open APIs to integrate directly into their software. And also really needed to think about a company here that has revenue rapidly growing, staff rapidly growing. So rather than going out and hiring dozens of people to go do this work, they scaled up using MicroStrategy resources. So another example here, very excited about. The data similarly is used internally with over 500 internal users and externally with thousands of customers in a multi tenant environment in the cloud. So pretty excited about this relationship we have with this company too. The next point I'm going to move on to is really talking about our revenue profile. And on the left hand side here, I'd said 65% plus recurring revenue. You'll see our revenue distribution here across support, subscription, other services and product license. It's those first two items, support and subscription, that are recurring in nature, so 65% of our business. If you look on the right hand side and you look at our largest revenue line items, which would be support and product license, that's 78% of our revenue, represents greater than 90% gross margin. What this essentially means business. So we have an ability to scale as a business without necessarily bringing on a lot of incremental costs. So it's a very healthy business software, BI in particular and then MicroStrategy specifically. The next area I'll talk about is our growth opportunities. 1, HyperIntelligence, Tim talked about this as did Hugh, both our traditional HyperIntelligence enterprise offering and then our HyperIntelligence SaaS offering. Cloud is possibly our biggest, I'll call it, dimension or vector of growth that is nearest right now and I'll talk through some of the mechanics of that and some of the dynamics of that too, why is cloud growing and why is it growing now for MicroStrategy and for BI. And then our embedded business, I gave the example there of the cybersecurity vendor, but there are dozens, really hundreds of examples of embedded customers who embed MicroStrategy. Intelligence market. So as far as the transition to the cloud, this is not something that's new for MicroStrategy, but it is something that is growing and we're well underway. And our key indicator, our KPI, if you will, that we're using to indicate this is subscription billings. We have sort of 3 ways we're growing into the cloud right now. The first is likely the most traditional, which is we sell to our customers on premise perpetual licenses. And what is happening over time is those customers who are buying these on premise perpetual licenses are moving to cloud subscription licenses. And I'll walk through the financial mechanics of that, if you will, and give a couple of examples. But we expect over time that there continue to be a larger shift towards this business. Today, it represents around 10% of our product bookings, and we can see that increasing by at least 5 percent as we go into next year. The second one that we've been excited about and that we've seen accelerating fairly significantly in the last year is taking customers who are currently on premise customers of MicroStrategy, paying us product support revenue and moving them to the cloud. And again, I'll walk through some of those mechanics in terms of how this works for us in terms on our financials and our income statement. And we can see more than 10% of customers shifting in 2021 to this new deployment method, existing customers. And then the final one, which is harder to quantify, but we're also very excited about is the impact of our new SaaS offerings, HyperNow and Intel Now. HyperNow we launched today, November 16, 2020, a day I think we'll look back upon very fondly. We had a soft launch today and expect to more aggressively launch it at beginning of next year. Intel now, which is our business intelligence product in the cloud, we expect to launch in 2021. And any of this revenue, we don't see this as a cannibalization of our existing product license or cloud revenue. We see this as incremental as we enter new segments, whether it be new prospects who are looking for a full SaaS solution or new departmental deployments customers. And as we go into both of those scenarios, we think there is an excellent land and expand opportunity. As I mentioned, we are seeing some pretty improved subscription billings over the last 7 quarters, last 2 years or so. But even most especially most recently, we saw nearly a doubling of current subscription billings from Q3 2019 to Q3 2020. So let me walk through a few of these examples. And I'll start with new license purchases moving from on prem to cloud. So first of all, why is this happening? What are the growth factors? Multiple drivers impacting the shift to DI in the cloud. One, macroeconomic factors, just macro factors in general, including more people working from home, more companies focused on cost reduction. This is an effective way to move costs from fixed to variable and also an effective way to find tasks that are typically administrative in nature, platform administration, system administration, type roles. The prevalence of data warehouse in the cloud, you've seen this with Teradata moving to the cloud with the advent of Snowflake, Google BigQuery, Azure, etcetera, as there is more data warehouse comfort with data warehouses moving to the cloud, very quickly and often simultaneously there is a movement of BI in the cloud too, which means micro strategy. And then the third, just a greater cloud adoption of larger enterprises. I know the cloud wave that's been going on for the last 15, 20 years, But the customers that we typically service, the Fortune 500, the Global 2000, especially those in services industries and those with data security issues, etcetera, are really now just starting to adopt cloud broadly, especially in data intensive workloads like data warehouse and BI. The other big factor is our own technology, right. Our cloud enterprise solution is now and has been for the last year, year and a half, truly an app parity solution between deploying on prem, deploying in AWS, deploying in Azure and we're working to complete a container strategy for MicroStrategy, which will allow someone to deploy pretty much anywhere they want in the cloud using our software. How does this work typically from a financial point of view? I have a graph on the left here that shows illustrative new cloud versus on prem comparison financials. But just as an example, we find that a customer that comes in and buy subscription revenues may typically pay 50% less in their 1st year. So for example, if you're buying a perpetual license at $1,000,000 you'll be then paying $200,000 in recurring product support revenue. So that's $1,200,000 in the 1st year, a product license revenue at $1,000,000 plus product support revenue $200,000 If that customer is buying a solution in the cloud, they may hypothetically be paying $600,000 in the 1st year. And included in there, all included on our subscription revenue row in our income statement, but embedded in there are license fees, support fees, hosting fees. What you'll see is in the 2nd year that on prem customer pays us another $200,000 in recurring product support, cumulative revenue $1,400,000 versus the cloud customer pays us another $600,000 1 point $2,000,000 In the 3rd year is where you start to see the breakeven point, right, dollars 1,600,000 versus $1,800,000 And then beyond that, you see growing more rapidly cloud. Of course, there's a couple of other benefits with this for MicroStrategy. The other benefit is you have a customer who now has a cloud or a term license as opposed to a perpetual license. So we take that renewal, each year renewal as an opportunity to build an ongoing relationship with the customer. We also have the benefit that we now control and share with the customer their environment and can upgrade them on an annual basis and make sure they always have access to our best software. And we can look at how they utilize our software and make suggestions on improvements that could also include upsell and cross sell. The nice thing also is this is a net positive ROI for our customers too who are moving to the cloud. So this is truly a win win both for MicroStrategy and for our end customer in terms of both financial and in terms of capability. So let me go through the other example of the cloud migration and this is really with existing customers who are converting from perpetual licenses on prem, already buying MicroStrategy, already utilizing MicroStrategy, already getting advantages from MicroStrategy, now starting to migrate over to our cloud licenses. So what are the factors, why would they do this? One, they're looking to reduce their fixed costs instead of having to purchase large servers and manage them in a data center and paying utilities, etcetera. They can move that over to MicroStrategy, who can do that for them. And of course, at scale, we can share those costs in a more cost effective manner. I'd mentioned they can also upgrade their software regularly and seamlessly, basically in the background over time, not even realizing that there's an upgrade, just getting the capabilities. And I also mentioned upscaling admins to architects and developers over time. It's also just simple, right. You get one annual price, includes software support, infrastructure upgrades. They don't have to pay for multiple people, for multiple vendors. There's sort of a one stop shop. And they get to start having add ons. They start to identify additional opportunities and we do too, add on Hyper Intelligence, add on the managed administrative service, so we can manage not just their environment, their cloud environment, we can manage MicroStrategy for them, manage application services, we can build new capabilities annually as part of a relationship. And we've seen this work out very well financially too. What we tend to see here is there's an uplift of potentially 30%, 60% immediate in revenue. Whereas in the previous example, there is really a 3 year time period for breakeven. Here when a customer migrates from on prem to the cloud, we see an immediate uplift and that's represented in a few items. One is just the term license or the license the customer is paying for us. They tend to be willing to pay more to move to the cloud. They also see an uplift in support revenue and also finally an uplift in hosting revenue. The last piece is the only one that doesn't represent incremental gross margin. So you end up seeing an uplift of 30%, 60% in gross margin too. And for the customer, for the customer, they'll breakeven nearly immediately, right. They're most often in year 1, but nearly immediately. So there's a big benefit to the customer and a benefit to us financially. The 5th item that I talked about that we're pretty proud of and that we've seen happen in the last year is really starting to optimize our cost structure as a business. We've gone from fiscal year 2019 to fiscal year 2020 run rate, reducing our costs year over year in this particular example by $57,000,000 or nearly 15%. And we've done that across really all of our line items, G and A, R and D and sales and marketing. G and A side, we've really been able to reduce costs across the board, IT, finance, HR, legal, and we think there's more opportunity to do that in the future. We think there's also an opportunity in our real estate costs as we shift to working more virtually and less in a static office environment, being able to see cost reductions there. In R and D, we've seen some modest cost reductions by reducing headcount and also transferring some of our resources and hiring more in lower cost locations like Poland and China. And then finally, the biggest cost change has been in sales and marketing. Hugh talked pretty extensively about this. But first, rationalizing digital marketing and then moving from in person events to digital events, reducing our travel, reducing physical events overall. We're pretty excited about the productivity improvements that this has created. So I think anytime anyone sees this level of cost reduction, there's a question of does this mean this is going to impact revenue negatively. And as you've seen from our Q3 results, we actually think it's the opposite. We think there's a way to both save money and be more productive. And we're pretty excited about that opportunity and looking at additional improvements on a go forward basis. If you look at the history, the 5 year history of MicroStrategy, we've been in a position where we've generated pretty material free cash flow in the past. Fiscal year 2015, dollars 146,000,000 28 percent free cash flow generation. And what you saw happen, especially as we entered 2017, is a period of investment, right. And so in 2015, what we really did was we rationalized the size of the business, we shuttered non strategic businesses and we squeezed a lot of the costs down. And then what we did in 2017 is we started to reinvest that. We started to reinvest that in growth. And what you saw happen from 2017 2018 was the release of MicroStrategy 2019, the release of HyperIntelligence, pretty heavy presence in in person marketing, pretty heavy presence in digital marketing. All of these things, we believe set us up for growth, especially as we went into 2020. And so it's sort of a logical progression. And here we sit towards the end of 2020 as we enter 2021 and what we believe a place where we can now reap the benefits of the hard work of the last 5 years. And that benefit will show up financially in terms of growth, that benefit will show up financially in terms of improved EBITDA and improved cash flows. And we look forward to seeing that over time. Michael mentioned here one other thing we did, right, so if you take a step back and talk about all the things we've done as a company, We released MicroStrategy 2019, really upgraded our product and our platform. We released HyperIntelligence and then we took advantage of 2020 as a time to revisit our business model and embrace the virtual wave. Well, it made sense at the same time that we also revisited our balance sheet, right. And we had traditionally invested over CAD500 1,000,000 of excess capital in fairly conservative means. T bills were our primary investment and we decided that it made sense to put that money to work. And what we decided was to invest up to $250,000,000 in share repurchases to utilize Bitcoin as our primary treasury reserve asset and to keep around $50,000,000 in liquid cash in U. S. Dollars and foreign denominated currencies to operate and run our day to day business. Since we've done that and it wasn't long ago, we announced that really in July, end of July, we've seen really material upside to our market value of Bitcoin as a starting point, right. We purchased 38,250 Bitcoins in Q3 for $425,000,000 The average price was $11,111 coincidentally, not exactly on purpose, but in a nice price and easy one to remember. Because of the way Bitcoin is accounted for as an intangible asset, we took an impairment at the end of the quarter by valuing Bitcoin at its lowest value on our primary exchange in the quarter, which was $9,954 and therefore, we took an impairment down to $381,000,000 That's what that second column means. Anyone who's following MicroStrategy likely is also following the value of Bitcoin. And right now, as we took it on Friday, it was $16,239 If you take it right now, I haven't checked it recently, but it's even higher than that. So our market value, if you will, of Bitcoin as of this Friday was $621,000,000 and that's an appreciation of nearly $200,000,000 on our balance sheet. And so obviously a better strategy than sitting in T bill or sitting in cash. As a reminder also, we've repurchased $61,000,000 of MicroStrategy at $140 a share, which I think today proves to be a great purchase price for us. And that was 432,000 shares. If you go back to the beginning of 2020, we've repurchased $123,000,000 of MicroStrategy stock. That average price is actually lower than that. And then since Q4 2018, we purchased $307,000,000 of MicroStrategy stock, so an average price of $135 a share. So all of those have proven to be better ways to deploy our capital and we're excited about some of the results that have come out of that. The Q3 seems like a long time ago. It was the best quarter that the company has had in a decade. And I don't think that's coincidental. I think all of the actions we've taken since 20 15, all of the actions we've taken to rebuild our product, the hard work that Tim and the technology team have done, all of the actions we've taken to rebuild our marketing engine that Hugh has contributed to and the sales team to improve our productivity led to a material upside in terms of revenue. Q3 was the highest product license revenue since 2016 for Q3 and up 56% year over year. We also had the highest total revenue since 20 16, up 6% year over year. And as I had mentioned previously, an 87% increase in subscription billings. It's really a blowout quarter from a revenue perspective and great operating income also on a non GAAP basis. So we're very proud of the momentum that the business has seen and we think we'll continue. The last thing I'll note is valuation and where this company will go. If you look at historically what has been happening with the revenue trajectory of MicroStrategy, we were declining in 2019, so 2018 to 2019 revenue was negative. This year, on a trailing 12 months basis, our revenue has been flat, roughly flat. And we do expect as we get into 2021 that our revenue will grow next year. If you look at our operating income on a non GAAP basis, 2019, it was $9,000,000 so pretty modest number. In 2020, in the last 12 months, effectively through Q3 2020, we've seen $50,000,000 in non GAAP operating income. And we said next year, we projected that that number will be $60,000,000 to $90,000,000 If you think about sort of the valuation of the business, if you will, and this is a hypothetical valuation, but this is how I think most of you might evaluate our business today. On a revenue basis, using analyst consensus revenues for 2021 is a projection of of $485,000,000 using the current value of Bitcoin, using net cash of $53,000,000 and using roughly the current value of MicroStrategy stock. Our revenue multiple right now is 2.4x. And if you look at very similarly on an EBITDA multiple basis, basis using our consensus 2021 EBITDA of about $78,000,000 you see a 15x EBITDA multiple. And then if you look to the right hand side, what I think where we believe and want the company to go, as we think long term that the revenue can grow to greater than 20% greater than 10% growth over time. And we think we can get our non GAAP EBITDA margin over 25% over time. And if you think about those opportunities and the current, I'll call them modest multiples, there's a lot of upside in MicroStrategy, either by growing our revenue and I laid out some of our revenue growth opportunities. Of course, there's sort of new enterprise customers buying into HyperIntelligence, buying into Embedded Intelligence, but also on our cloud transition. And our cloud transition includes moving on prem customers to the cloud, new customers to our traditional enterprise cloud and SaaS. So a lot of different ways to grow our revenue. And then you'd see also different ways to grow operating income either through scale, via revenue growth and some we believe there's also opportunities to continue to get cost optimization. And then the final piece that's not depicted here is we believe there's material net income growth opportunity. As we see the valuation of Bitcoin improve over time, you'll see that also significantly impact in a positive manner our balance sheet and then potentially our net income as we realize that revenue growth. So I think there's a lot of excitement about where we can go in the future. And in summary, you've heard from Michael, you've heard from Tim, you've heard from Hugh. Arguably, we're in one of the most pivotal times in the history of MicroStrategy in terms of our trajectory on a product completely product completely. And when you think about today, marking the introduction of our cloud SaaS product, we were mentioning as a leadership team this morning, that's a huge moment for us as a company. And I think it's a huge moment for the BI industry too overall. And what COVID in 2020 has done for us from a marketing and a sales perspective, I think of the term turning lemons into lemonade, right. It was a kick in the butt to really transform the day to day operations of the business. And then if you look at what's happening in terms of the macroeconomic environment and the dollar, I think our investment into Bitcoin really being the first publicly traded company to have invested into Bitcoin using it as our primary treasury reserve asset is starting to prove out to be also a pretty well thought out and likely a first mover strategy there. So I'll end it there and I'm going to turn it over to Q and A. I will moderate the Q and A. So if Tim, Hugh and Michael, you want to unmute yourselves. What we'll do here is please type your questions into the Q and A panel. If you're having trouble finding that panel, for most of you, it should be on a bottom bar, bottom right hand side. There is no opportunity to ask the questions out loud live, but you can ask the questions via the Q and A panel live. I'll look at them and then in turn ask them to All right. Michael, Glenn, Hugh, are you guys ready? I think we're ready. All right. I'm glad that I leave all the easy questions for him and I take all the hard questions. But as the moderator, I get to choose. We'll start with you, Michael. Can you elaborate on opportunities you see to develop software for the Bitcoin blockchain ecosystem, potential areas of focus, technology that you've already developed that might see accelerated growth that is targeted at the Bitcoin network opportunity? Yes, sure. I think I mean, the first thing to note is that whenever you get a new idea, if you pursue the new idea without bringing to bear your existing assets, it's probably not going to end well. So when we look at the opportunity for bringing business intelligence to Bitcoin, we start by thinking about our existing assets. And our primary existing asset is our enterprise platform and the most leverageable form of it is the MicroStrategy Cloud Intelligence platform that we're bringing to market right now with HyperNow and IntelNow. So, we're going to take HyperNow and IntelNow and that entire out of the box multi tenant SaaS offering and think about ways to deliver business intelligence that's of interest to the Bitcoin community and maybe to the greater crypto community as this business evolves. So when I think about business intelligence on the MicroStrategy cloud platform or sorry, chain data for Bitcoin and we set up our own full Bitcoin node and we're generating the block chain data and there's $300 plus 1,000,000,000 worth of market cap that's based on that blockchain data. So presumably there's a community of crypto banks, bitcoin investors, bitcoin businesses that will be interested in extracting any intelligence from that blockchain data set. So simply by manifesting the blockchain data as a micro strategy data set in our core MCI platform, that could be interesting to people if they could spin up Hyper Intelligence and Business Intelligence and have the data set at their fingertips to build something with. I think the second idea is maybe blockchain data hyper intelligence is interesting to us. There's a ton of sophisticated information and wallet IDs and various block IDs and the like. And if we make that easy for people, then there might be some value there. It might be that a lot of Bitcoin exchanges and Bitcoin service providers want to enrich the basic blockchain data with their own custom data and build custom micro strategy applications to do that. So I can see that being interesting. I can also see just blockchain or Bitcoin data business intelligence using our dossiers as being an interesting opportunity. And over time, there might be some customized bit coin intelligence applications that we'll see that will be interesting to everybody that we could just build and offer to the market. And or maybe crypto intelligence, where we look at the interplay of all the various crypto services or Bitcoin related services and their intelligence requirements. So, we don't have any one thing that we're sure makes sense to commercialize yet, but we think there's an entire exploding universe of intelligence opportunities all wrapped around this kind of unique Bitcoin intelligence coming off the blockchain and we'll explore it all and look for efficient, artful ways to integrate it into our existing business and deploy it. I mean, I think the ideal situation is you if you can do 1% more work and bring 99% of existing assets to bear to deliver something which has extraordinary value to the market, then you have leverage and we'll work for that kind of leverage with regard to Bitcoin. Great. And maybe a follow on to that for Tim. Do you see sort of some of this Bitcoin or Blockchain technology having synergies with some of the work that you're already doing, whether it be real time analytics or at scale analytics, what are your thoughts there? Yes, it's a big thanks, Fang. It's a big theme for us as we kind of look at what you'll see us kind of working through the next year is real time and blockchain analytics is particularly of interest as we deal with more and more data faster and faster and as we can look at innovative ways to better secure and lock down the data. So it's of particular interest, we've got some development spikes that we're working on and we're actively looking to source and recruit some talented folk that have expertise in blockchain that would like to kind of join us to on this journey. But yes, it's definitely for us at MicroStrategy, the size and the volume of data has always been a critical part of what we do. The security and the reliability of the data and the traceability of the data has equally been critical and blockchain plays a pretty interesting opportunity for that, that hasn't really been commercialized well in the analytics space and Bitcoin itself and the analytics of it show an interesting insight for people to take advantage of. And we want to support that, as Michael talked about, with dossiers or hyper cards in it, but equally how it could facilitate or work in our core set of servers and or client functionality. Great, Tim. I think I heard somewhere in there was a solicitation for software engineers who might have some background in the block chain. If you're interested in working with MicroStrategy or if you're on the call and you know someone who's interested, go to www.microStrategy.com to our careers website and there's opportunities for employment. So thanks for that solicitation and for being answered, Tim. Hugh, you're next. Question to you. Is your HyperIntelligence approach of $10 a user a month different than before? Do you think this new pricing is the reason why you're projecting a higher uptake of the product? Yes, it's significantly simplified pricing and licensing model than we've had traditionally. And we gained significant benefit from that, right. It's easier for our in terms of a sales enablement function for us to articulate the simplicities of purchasing that product by our sales team, by our partner, global partner ecosystem. And it's easier for customers to understand, which removes that as a light to the conversation and so people can focus all of their energy on how they're going to build the applications and how they're going to deploy those and apply that value to their businesses and their organizational challenges. So it's much simpler than we've ever had before. Awesome. Thank you, Hugh. Next question, I'll answer and I'd say it's very helpful day all around. Thank you. Well, thank you. You're welcome. Thanks for joining us. Curious on the 2021 operating income projection, the range is very wide. What are the biggest factors that would get you to the low or high end? I'll start with that. We acknowledge it's a wide range of $60,000,000 to $90,000,000 operating income, non GAAP. And for those who followed MicroStrategy for a we don't have a history of providing what I'll call guidance and this is our first foray into providing more transparency into our financials. And this Investor Day is another one. So part of the reason it's a wide range is it's a new practice for us providing this type of information. So we want to go into it reasonably conservative, so we'll get into that range. Two biggest factors, biggest factor number 1 is the uptake of growth in the business. And if you just look at Q1 versus Q2 versus Q3, quite a wide range in growth. And frankly, our growth is as much driven by what we're doing internally as a business as to the macroeconomic effects and how quickly the economies in North America and Europe and Asia and Latin America bounce back over time as it is by our ability to grow organically. The second biggest factor is that cloud transition that I talked about, right. If we accelerate a cloud transition from new customers and new deals going from on prem to the cloud, we do see about a 50% decrease in revenue per deal on a year 1 basis. But on the other hand, if we accelerate more customers who are already paying us product support on prem and moving them to the cloud, then that will offset the revenue decline and it could very much more than offset the revenue decline. So we're still in our 1st year of that transition and sort of where that goes will define sort of the revenue growth. So I think it's really that revenue growth opportunity that's going to drive the distribution. I think we have a better sense of our cost trajectory at this point in time. So thank you for that question. I am going to take this one back to Mike and this is a Bitcoin question. Do you fear that quantum computing, which is progressing rapidly, could be an existential threat to Bitcoin? The short answer is no. The longer answer is, I think quantum computing and how it's going to develop is very uncertain. I think that whether anybody is ever going to get control of it is pretty uncertain. Will a malicious party get control? Very uncertain. Will a government get control? Very uncertain. Will it be used for malice if someone does develop it? I think that's kind of very uncertain. We've got cruise missiles and atomic weapons today. They've never been used against a corporation in America or U. S. Citizen. So even if someone develops a hyper powerful quantum computer, it's not clear that it will ever be used for in a malicious way. It's not really clear there won't be a defense against it. Crypto technology is developing at a rapid rate. So it's not clear that it will actually get better. The timing of whatever gets developed is uncertain. We've been working on fusion for forever and people still don't have a fusion reaction. Flight was 100, if not 1000 of years before they figured it out. And propulsion is something we've been trying to work on for quite a while and we still can't crack some basic propulsion things. So I think tech enthusiasts love to write stories about it, but they're writing about the mythical perfect godlike computer and maybe 1,000 years from now, we still won't have gotten to it, it's not clear. But even if we did get to it, the motive to attack Bitcoin is very uncertain. Why would you? 99.99 percent of the stuff in the world that you could attack is not Bitcoin. You could attack a government, you could attack Apple, you can attack cash, you could attack anything. So why would you attack the thing that's the least relevant thing in the world if you are a godlike power computer? The risk to our P and L is uncertain and probably irrelevant. Like if you really do believe in a quantum computer, then presumably Apple, Amazon, Facebook, Google and Microsoft are all worth nothing, because you would attack them first and you could shut them all down. So it's not clear and by the way, I don't think that they're going to do anything different. I don't think anybody is doing anything different on the P and L side. And so, I don't you really couldn't be in business if you woke up every morning thinking that someone will have been a quantum computer to destroy you. I think the risk of the balance sheet is uncertain and irrelevant too, because if we believe there's going to be a quantum computer, the question would be, does that mean we should be holding cash and the truth is you could steal the cash with a quantum computer. Should you hold stock in Apple? Well, no, you destroy Apple or steal the stock with quantum computer. So, you wouldn't do anything differently whether you believed in it or didn't believe in it. The opportunity cost of doing nothing is, well, that's quite certain, right? Like if we shut down the business in fear, right, that would lose us everything and if we didn't make a decision on the balance sheet out of fear, we'd lose everything. And so every investor on the planet isn't worrying about this. There's $250,000,000,000,000 worth of investments and stuff that's worth 0 if the quantum computer is used to attack their stuff. And every government shuts down. So I don't think that I don't think doing nothing is an opportunity. And I don't think there are any better options at present than to move forward with optimism. And what do I think is really going to happen? The likely outcome is computer power will continue to improve, hash power on the Bitcoin network will continue to improve, mining rigs will continue to get better, the ASICs will continue to get better, new encryption protocols will get adopted as needed. And if we ever need a quantum resistant protocol, we will adopt 1 and otherwise, we'll just make them better as needed. I think computer power will be a force of good as it has been. And I think that's the view of every technology executive, whether you're running Facebook or Apple or Amazon or whether you're running Oracle or IBM or whether you're running MicroStrategy. I think the majority of when we talk about risk, the majority of risk for Bitcoin couldn't exist until Bitcoin is the majority of the economy. So Bitcoin will have to be 500 to 1000 times bigger than it is right now before it would actually be the primary target. Until then, the majority of the risk is of any existential godlike weapon will be aimed at something other than Bitcoin. So, no, we're not fearing it. I'm not terribly worried about it. I think you just have to channel any concerns about the future constructively and the constructive way to channel it is, we should just keep making everything better. Great. Thank you, Michael. Next question I'll take, this is Phong. I believe you showed a slide around the cloud transition driving a similar gross margin uplift as you see in revenue. Wouldn't cloud gross marginsprofit be diluted given the lower gross margins today and subscription? Our gross margins in subscription today are at around 50%. The primary reason for that is we're running a subscale business with a high amount of fixed cost. And a lot of those fixed costs are represented in terms of people, right. We believe that the next customer we add on to cloud, if you take away that the zero margin associated with the infrastructure, we can do for very high gross margins close to 0 cost. So we've already built the team, we've built the capabilities, we've built the tool. In fact, if anything, as Tim mentioned and the technology team has rolled out greater automation, we'll be able to run a more efficient cloud business. What's actually pretty cool is a lot of things that the technology team has done in terms of building a SaaS product for MicroStrategy can really be ported back and is being ported back into our enterprise cloud business. So multi tenancy automation of bringing on new users, for example. So there is an opportunity for each incremental enterprise cloud customer to also have accretive gross margin. Next question for Hugh, how much traction are you getting with Expert now? Expert now, the last one out for those of you who are not familiar with it, it's just a new virtual service that we launched earlier in the year and where we wanted to provide all of our customers prospects with the ability to reach out and talk face to face over a virtual technology like Zoom about any topic they wanted to talk about. And we wanted to make it similar to HyperNow, we wanted to make it as simple as clicking on a button on our website or on our community. And so that service launched earlier in the year. And we've seen a consistent volume since launch. We let anybody try it out for free for 30 days to ask any question that they want. It's sourced with about nearly 200 of our experts around the globe. And we include it in the cost of our annual education subscription, the Architect Pass. And of the number of people who use that service every single given week, about 20% of them are Architect Pass holders and a number of them are trial users. And then over since launch, we continue to see a number of people convert over from trial experience to that paid architect pass experience that people can buy straight from our website, which gives them access to unlimited expert in our calls, plus unlimited courses and certifications. So the traction has been pretty impressive. We've been really excited by the response and we've seen a consistent amount of activity since March. Awesome. Thanks, Hugh. Mike, as you can imagine, there's a series of thematic questions about what we're going to do with our Bitcoin going forward. I'll read them to you sort of in order and you can maybe answer them generally speaking or together as a whole. One question is, will you simply hold bitcoins and buy more as the business generate cash or will you stop buying bitcoin or even sell some of your bitcoins based on the bitcoin price? The second one is what would cause you to change your thinking on using bitcoin as treasury reserve and the size of the reserve in relation to the core business? And the third one somewhat related, can you explain your first mover strategy? Well, I think to understand why we bought Bitcoin, you have to start with just a macroeconomic observation. And that's that there's about $250,000,000,000,000 worth of assets that are Fiat instruments, all commercial real estate, stocks and bonds that are a bond that gets a fiat coupon, an equity that's based on fiat cash flows or real estate that's best on fiat rents based on fiat rents, all of those are fiat instruments. So if the monetary supply in the U. S. Or the EU or other developed world is expanding at some decent rate, let's say, it's expanding at 10%, then the underlying fundamentals of all those fiat instruments are debasing by 10%. And so our decision to move our treasury from cash to Bitcoin came after we first realized that leaving a treasury in cash means taking a straightforward 10% type monetary debasement or more every year, moving it into a bond or real estate or equity suffers from the same problem, which is as long as the monetary supply is expanding rapidly, then you're going to get a negative real yield. And so none of those are a safe haven. What we're looking for is a store of value. If you want to find a store of value on aggressively expanding monetary environment, you have to find an asset, which doesn't have its fundamentals based upon fiat cash flows. And that drives you all the way to scarce art, precious metals or crypto assets. And obviously, we can't find a portfolio of scarce art and we considered gold, but gold is antiquated and mechanical in the way that it stores value because it's centralized, you can't verify how much supply there is and the gold miners print, they create more every single year. And so that leaves you with Bitcoin as a crypto asset that's digital gold. And if you found a digital gold that you can't print any more of, if you're capped at 21,000,000 coins over time, which is what it is, and if it's not based upon fiat cash flows, then The only reason you would not want to hold it as your treasury reserve asset is if the Federal Reserve stopped printing any more dollars, if the U. S. Dollar supply became hard capped or deflationary or you found another asset, which was hard capped and deflationary. So when we find a better asset, if we find a better asset, then we would consider it, but there there's nothing on the horizon you could imagine that would be better. So it would be an unknown, unknown that would have to pop up to be a better treasury asset. The reason Bitcoin is a good long term treasury asset is because it's both deflationary and its fundamentals aren't underpinned any fiat cash flows, but also because it's a decentralized crypto network outside the control of a company or country, which means that it's likely to outlast regimes and outlast corporate collapses. And it doesn't have any of the complexities that come with investing in a company. So, our strategy is sweep our excess monetary energy, our excess cash flows into Bitcoin and to hold it for the duration. As we have additional excess cash flows, I expect we'll also put those into Bitcoin. So the only reason we wouldn't would be on occasion, we may buy our own stock back to shrink our own capital structure. And we will evaluate whether it makes sense to buy our stock back or whether or not it makes sense to buy Bitcoin. And if we can't decide between 1 or the other, we'll have the money in cash until we make the decision and that will be our ongoing treasury strategy. Why would we ever sell it? We would we're holding the treasury as an asset on the balance sheet. We would sell it to meet an unexpected expense were that to expense in pay some expense in some country and if we didn't have the cash on hand, then we would sell it. It's in essence a treasury reserve insurance policy against some unexpected consequence in the future. And since we don't anticipate that right now, we don't anticipate selling it, we do see it as also an investment. We expect that the Bitcoin will it will serve not just as a monetary inflation hedge against the expansion of the broad money supply that is the M2 money supply, but we also think that as adoption accelerates and people become more comfortable with Bitcoin as the long duration safe haven asset, then we think that our Bitcoin position will improve and the price will go up. We also think that as companies embed Bitcoin in their technology offering like PayPal and Square, we think that adoption of Bitcoin will increase and the price will go up. And so we think there's a technology trend and there's a monetary inflation trend that are driving an adoption trend and all of those things make our Bitcoin holdings an asset to the shareholders. That's why we did it. Fang alluded the 1st mover advantage. We think there's a 1st mover advantage, it's obviously better to buy it cheaper before it goes up in price. That's an obvious first mover advantage. But the other first mover advantage here is that there is a perception earlier this year that large institutions and corporations were not going to buy or could not hold bitcoin on their balance sheet. We believe that over time, as people follow our lead, either private companies, public companies or large institutions or high net worth individuals, as they follow our lead, that's going to strengthen the appeal of Bitcoin as an asset class and it's going to educate large groups of investors that were previously unaware of the option and they're going to join the Bitcoin Monetary Network and that will drive the price up. To be clear, we view Bitcoin not as a speculative investment nor as an investment at all. We believe Bitcoin is the 1st digital monetary network engineered the history of the world. It's an engineered software network that's designed to host a safe haven, a synthetic safe haven asset. In fact, it's a synthetic safe haven, long duration asset. And of course, if you ask who would want a synthetic long duration treasury asset that is not tied to Fiat currency printing, the answer is everybody. Everybody would want it. The only reason you wouldn't want it is you didn't know about it, didn't understand it or didn't trust it. So, we're committed to using Bitcoin as our treasury reserve asset. We will buy more Bitcoin over time as we generate cash flows. And we will evaluate our position over time as new information presents itself. And theoretically, if there was something better in the future, then we would adopt something better until that time, then we'll continue with our current strategy. Great. Thanks, Michael. I'll answer the next question. What is different in the sales experience done virtually, the customer is not receiving? Is this approach sustainable? We have a like most sales companies, enterprise sales companies, we have a 6 stage sales cycle. And the first stage is really when you first identify the opportunity with a customer or a prospect. And the difference there is, think thankfully to many of our sales folks, we don't have to go to these in person events, where you show up and there's 4 of us and there's 200 or 2,000 other folks and it feels a little bit like speed dating, which if you can imagine most enterprise software buyers or sellers, they don't really generally enjoy speed dating. And so if we're able to create an experience that's fully virtual, you discover our software through our website or somebody drives you to our website, that's a much better higher pace activity. So in that particular case, I don't know that the salesperson or the customer actually wants to replicate that experience. So I'd like to think that's highly sustainable. If there was a perfect matchmaking algorithm in the world matching people, that's sort of the idea of digital marketing and our website. It's a perfect matchmaking algorithm that takes customers to our software. They try it before they buy it and then they buy it and then they expand their usage. On the other sort of as you get into the middle, there is this idea of proof of concept, right. A lot of folks who utilize our software and they like to see it in action. And the nice thing about moving to a cloud environment is our proof of concept doesn't have to any longer be a proof of concept. It actually can be the real production outcome or the real production use case. And so that's part of why we're excited about moving to the cloud. If you have a departmental use case, you can just build your HyperIntelligence card or your business intelligent environment, run it for 90 days and then tell us if you like it or not, we'll tweak it, we'll change it, etcetera. Or for an enterprise grade experience, our sales engineer or salesperson will just build you your production environment. And if you like it, you buy it, we give you a price and from the day you sign the contract, you have a working production environment. So that's a lot better than someone going and showing 80 slides of what the environment might look like or building a skinny proof of concept where we haven't connect we've connected to one of your 40 data sources and we rolled out to one use case out of 20. Why not give you an environment and just let you run it yourself and see what you think and then we provide feedback in a form of support. And that to us is again a much richer experience. Someone might say, well, it would have been great if you were in our conference room giving us a 3 hour presentation. Well, it's probably even better if we don't come to your conference room and just give you the environment and you play around with it for 3 hours and we answer questions via Zoom. And if you look at the tail end of the experience, it's really the negotiation and the handshake. And I bought a car recently because car prices are a little bit better. And I remember having to go into the sales room and at the end, when I signed all the financial documents, the salesperson saying, I wish I could shake your hand because that's really the best way to close out a deal. And I sort of thought to myself, no, the best way to close out the deal is to give me the car. And maybe that's not emotional. But this idea that you have to have a steak dinner with a bottle of wine to consummate a software deal, I think is an old concept. Now, it doesn't mean that we shouldn't build a relationship with our end customers and we shouldn't go to a nice dinner and celebrate something, but it shouldn't be required to close the deal. It should be a celebration after the deal is over and building a long term relationship with the customer. So I think there is a lot of sort of beliefs in how enterprise software should be done that are being challenged every single day now for the last 180 days. And those who want to return to the old paradigm, if you will, are probably people who aren't ready to able to move with agility to new paradigm. This isn't meant that we shouldn't build an ongoing relationship with our customer. The better ongoing relationship with the customer, like the examples I gave you are about operationally improving the customer output and results and making them a better professional, making them a better department, making them a better company. And if we can do that faster, I'm all for that. And I think a lot of the other things that were sort of the Kabuki dance of the enterprise sales methodology that was shrouded in secrecy, Yes, that was a really good salesperson because they were able to negotiate really well. If you can just sort of boil that down to very simply give the customer the best software as fast as possible for the right price, then you can move a lot of that stuff out of the way. And we've asked our customers this, like what do you prefer? And lo and behold, most of our customers, the more senior you get, they typically say, well, I prefer to meet you over Zoom for 30 minutes and talk about my problems and you tell me how your software can solve your problem versus if you had to go to my office building in Manhattan, I would have had to have my admin set up 3 hours so that I could first of all, you clear yourself at the front desk, you get given your driver's license, they give you a badge, walk up, you go up the 48 floors, you go meet with them for 30 minutes and then they feel like they have to take steps of lunch and then you go back and you do the demo and they take out 3 hours of the day. And ultimately, the CIO says, you know what, this is much better. I'd much rather meet with you for 30 minutes because we get to the point of what we're trying to do. So is it sustainable? I sure hope so. I guess time will tell. Our customer will dictate it. But most of our customers have sort of told us, hey, this is better. So we'll see how it goes over time. But I think this is the right method of enterprise sales. And by the way, successful newer successful software companies, Slack, Zoom, etcetera, have already been selling in this method. So it's not like we're the 1st. I think everyone's being forced to transform over time. Hey, Phong, can I just augment that a little bit? So you talked a little bit at the sales process, but in post sale in terms of supporting customers, this last year, we've seen increased amount of how we've been from the technology team engaging with many of our enterprise customers, either getting them feedback, helping them with issues. And to the sales point, we would have been flying engineers to some other part of the world, different part of the U. S, there would have been travel forward and back, there would have been some time that were there. The quality of the engineer we can put on a particular account has dramatically gone up and the number of touch points we can do has increased. So I think there's a lot more it's not the same as physical intimacy, but there's a lot more intimacy that we're finding with some of our key customers because of how we can interact with them today using these virtual environments than we had previously. So we definitely, we benefit a lot in technology from it. I know many of our customers have benefited a lot in the last 6 months. Yes, completely. I mean, the access that a customer might have to somebody like Tim or one of his direct reports now, much easier, right, like and somebody wants to talk to Tim who's in Germany as opposed to Tim flying 6 hours, you can just get on the Zoom and answer a question for one of our top customers. So I completely agree. Another one for you, Hugh, regarding $10 per month price, is it per seat, per location? What's the current number of users MicroStrategy has today? So in terms of the Hyperblock Now pricing model, it's $10 per user per month. And so per user essentially per month. And in terms of the number of users, we actually as pharmacists, we're live with it today. So the users of HyperNow, we started off yesterday when we were launching it and setting up our systems that people organically found it and started to log in and build cards. So we're already seeing people try that out. Yesterday when we were just standing up in preparation for its launch today. We don't disclose the number of people who are using that as of yet. And then just globally, the number of people who are using Mytraffic, it's a significant amount. So many MicroStrategy deployments are in large organizations who have 1,000, tens of 1,000 of employees and users. Many of those are R and R, take advantage of our cloud offerings, many of those are on premises. So it's hard to put an exact finger on the number of users. We also have a significant number of organizations who take advantage of just how open the architecture is and deploy it out to their customers, white labeled essentially OEMing by Treddy technology. And so those applications would get usage with significantly greater numbers, but we don't articulate the exact number. Great. Thanks, Hugh. Next question I'll take. On execution, obviously, do you think we've reached a turning point where you should consistently see license or total revenue growth going forward? Separately, the 10% plus long term revenue growth, what gives you the confidence that you can hit that? The company hasn't grown 10% since 2011. That was when you had over 3,000 employees versus 2,400 you have now. I think the first thing I'll say is if you look at the pipeline that we generated over the past year, year and a half, I think we have more pipeline, more large deals, more at bats, however you want to call it than we have had in a while as a company. And that gives us some optimism in terms of the growth projections. Look, I'd love nothing more than to see consistent every quarter year over year total revenue and license growth. I think as much as we've been able to sort of do a judo move and turn the down economy and macroeconomic environment sort of in our favor, I think we still are not out of the woods in terms of its impact in our close rates. And probably would take another quarter or 2 before I start getting confident that we could turn that increased pipeline into regular quarter after quarter revenue growth. But that is our objective, right, and I feel more optimistic about that objective that I have in the 5 years I've been here. 10% plus long term revenue growth, what gives us the confidence. I think our looking at previous cloud transitions and looking at our success in the last year, I think that is what gives us confidence that over time as we take just like we've taken our balance sheet and made it an asset, I think we can take our recurring revenue making it an asset for growth. We haven't really been doing that in the past, right. We've treated customer renewals as point in time events, primarily for the procurement agents to deal with. If we turn a customer renewal into a sales opportunity and a relationship opportunity, I think we could do a lot more. If you look at all the different factors that are pointing towards growth in the business, we've had maybe 1 or 2 in the past, but now between HyperIntelligence and Embedded Intelligence and then the 3 ways of growing in the cloud, right, that new customers migrating existing customers in our SaaS product. I think when you add those all together, we do feel more optimistic. And then obviously off the heels of a strong Q3 gives us more optimism too. So those are the key reasons that we feel strongly about our long term growth potential. Next question I have is for Michael. Can you explain how the Bitcoin is held? Yes. No, we don't disclose how we acquire or handle or manage our crypto assets for security reasons. All right, great. I've got a question for sorry, I'm just sorting through the rest of these questions. We have a couple of Asia specific questions. So I'll just answer these. One is, does MicroStrategy have resellers or presence in the Philippines and Southeast Asia? And 2, are you offering pricing parity for Asia? Very simply, yes, we do have a presence in Southeast Asia and we do it through a partner network that's based out of with a sales team leading it out of Singapore. And so if you're interested in a relationship there either as a reseller or if you're looking to acquire licenses, we can put you in touch with our Singapore office or you can just go to our website and look up the contact information. Are you offering pricing parity for Asia? We do have local list pricing for Asia and that's pricing in Japan and Japan yen or pricing in China or pricing in Korea or pricing in Singapore or Southeast Asia and Australia and New Zealand also. Next question here, what's the yield from 90 days free trial to revenue generating? Hugh, you want to cover that one? I'll defer to you on that one. Okay. Well, we haven't really actually started our 90 day free trial if you're asking about our SaaS product. And we'll have a pretty good sense of the yield. It'll probably take us more than 90 days. We just launched SaaS today. But we'll have a pretty good sense of what will happen over the future and we'll get back to you on sort of what we see that yield looking like. Next question, this is probably a combination for Tim and Michael, maybe we'll start with you Tim. What percentage of your engineers will be working on potential Bitcoin applications using MicroStrategy technology? How significant will your allocation of resources be relative to your current development resources? I muted myself, sorry about that. So yes, we've got a scrum team that we're allocating to work on this topic. We at MicroStrategy, we have 70 odd scrum teams. We work in an agile development methodology. And so we ensure that for every part of the platform we build, we're not too over rotated anywhere or else. So it's a newly formed team that we're putting in place for this, and our intent is to see, 1, how we can look at analytics off Bitcoin and how we can actually look at what we can get from the chain. And so we're building that. As I mentioned previously, we are looking to recruit there. So we're keen on bringing expertise for others that are more familiar with some of these technologies and techniques. At the core of our platform is our data engines, our overall platform, security, our intelligence server. And so the ability to kind of leverage some of the techniques that Bitcoin has as well as it itself could be actually key to some of the future modernizations of our platform. And so there's the Bitcoin, but there's also how we could potentially leverage the chain at the core of the platform and we're evaluating both of those pieces. Awesome. Thanks, Tim. I'm going to do I'm going to close this out with a lightning Q and A round because we have a series of more financially focused questions that I'll answer quickly. And then at the end, if anyone has any remaining questions, please type them in. Otherwise, I'm going to turn it over to Michael Saylor to close out at this point. So a few things. Why is net cash the right capital structure for MicroStrategy given highly recurring revenues supporting sustainable and growing annual free cash flow. I think as you know, we haven't really had debt on our balance sheet historically. We're not opposed to it. If there are right ways to either incur debt or to leverage against our Bitcoin as an example, we would explore, we're constantly exploring things to do with our balance sheet at this point. We wouldn't take on additional debt just for the sake of doing it, but it's not something that we're opposed to. Next question, how much will you disclose revenue or other operating metrics related to your growth segment, HyperIntelligence, Cloud, Embedded Intelligence? What are the key milestones for you transition to cloud based BI company with modern interfaces? We already split out our cloud revenue as subscription revenue. I don't think we have any intent to split out product based revenue like HyperIntelligence and Embedded Intelligence, partially because it's a bit tricky. When a customer buys products, we tend to bundle them together at times. So it's not always easy to split them out for GAAP reporting purposes. So we don't have any short term intent to do so. As it relates to milestones for our transition to cloud based BI company with modern interfaces, I think subscription billings and the growth in subscription billings will be one of the key ways we measure our cloud growth. And now that we've launched our 1st SaaS product as a company, I think we'll start to look at the traction that we have there also. And the last question, can you share any data number of deals, percent of bookings on a trend in new logo wins? Generally speaking, we've seen about 20% of our revenue. So on a percentage bookings basis coming from new logos. We haven't seen material changes in that over the last 5 years or so, but we would like to think with our new SaaS product that we'll start to see more growth coming from new logos over time. So I think that's it. I do want to thank everyone for joining our Investor Day's Day. This is the first one that we've done, I believe, since the Q1 of 2016. So excited to have you all here. And hopefully you enjoyed the format, right, like just like the question around sort of is the sales interaction changing and is it sustainable? I think our investor interactions will change and give you a chance to see more of us in a much more interactive fashion. So hopefully that's sustainable too over time. But we really appreciate everyone's interest and time. And I'll hand it over to Michael for any closing comments. Thanks, Fang. I want to echo Fang's words and thank all the investors for your support. If you're a MicroStrategy shareholder, we appreciate it. For any customers or partners on the line, thank you for your support as well. We wouldn't be here without you. Hopefully, you take away from this session that we've been working very, very hard across all aspects of our business in order to be responsible corporate fiduciaries and maximize shareholder value over the past year. We're really enthusiastic about our operational initiatives. We're very enthusiastic about our technology initiatives. We're pretty enthusiastic about all of our balance sheet initiatives. And for now, the entire management team is very focused upon making the rollout of MicroStrategy Cloud Intelligence and HyperNow and IntelNow successful, we see it as a big pivot point for the business. And it's a chance for us to extend our technology reach and create value for new constituencies in new ways. So, we'll be really focused upon that during the coming 12 weeks. And again, thank you for all your support. And we'll speak to you again soon.

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