MicroStrategy knows you need the details to make a good plan. The company's enterprise intelligence software addresses functions such as building reports and dashboards, managing mobile applications, and capitalizing on social media. Specific analytics modules include human resources management, Web traffic analysis, and sales and distribution. It sells to many of the world's largest companies, such as Aetna, GM, and eBay, as well as midsized companies and government agencies, such as NASA and the US Army. MicroStrategy also offers services, such as consulting and support. The company generates about 60% of its revenues from customers in North America.
The company's MicroStrategy 9 is the software platform that contains its core products. Mobile apps based on MicroStrategy 9 include integrated mapping with Google Maps, integration with on-device sensors, such as bar-code readers, and mobile alerts. Besides mobile, Microstrategy sees three other disruptive trends that it will focus on: big data, the cloud, and social media. The company's Microstrategy Wisdom, for example, analyzes Facebook data.
Revenues have steadily climbed for MicroStrategy over the past decade, but profits have been dropping since 2004 as it invests heavily in sales, marketing, and R&D. Sales rose nearly 25% to more than $560 million for 2011, as net income dropped 60% to less than $20 million.
Marketing its products worldwide, MicroStrategy targets a variety of user types. In addition to large and medium-sized enterprises and government customers, the company also targets advertising agencies and systems integrators that cater to those clients, as well targeting independent software vendors that want to incorporate MicroStrategy's tools. The company primarily uses a direct sales force, but it also distributes through indirect channel partners that include value-added resellers, system integrators, and OEMs.
MicroStrategy has faced increasing competition from large enterprise software companies such as Oracle, SAP, and IBM as those companies acquire smaller business intelligence software makers in deals similar to IBM's purchase of SPSS. Despite the competitive relationship with these companies, MicroStrategy also works through partnerships with them and many others, including SAIC, Symantec, and Adobe.
MicroStrategy serves such industries as communications (BSkyB, Cox Communications), consumer goods (Chiquita, Danone), financial services (ABN AMRO, Credit Agricole), healthcare (Bayer HealthCare, Novation), insurance (Pacific Life, GEICO), manufacturing (Michelin, Philips Electronics), retail (Starbucks, Guess?), technology (eBay, McAfee), and the government (US Postal Service, US Department of Homeland Security).
CEO Michael Saylor owns more than 20% of the company's stock. – less