MicroStrategy dropped -3.2% during today's morning session, underperforming the S&P 500 by -2.6%. The lackluster performance from the mid-cap Software—Application company may seem like an opportunity to buy shares at a discount, but it's a good idea to take a closer look at the company's financials first.
MicroStrategy's Operating Margins
Date Reported | Total Revenue ($ MM) | Operating Expenses ($ MM) | Operating Margins (%) | YoY Growth (%) |
---|---|---|---|---|
2021-12-31 | 511 | 373 | 9.02 | -24.01 |
2020-12-31 | 481 | 333 | 11.87 | 5752.38 |
2019-12-31 | 486 | 387 | -0.21 | -126.25 |
2018-12-31 | 498 | 394 | 0.8 | n/a |
MicroStrategy's Cash Flows
Date Reported | Cash Flow from Operations ($ MM) | Capital expenditures ($ MM) | Free Cash Flow ($ MM) | YoY Growth (%) |
---|---|---|---|---|
2021-12-31 | 94 | -2,629 | -2,535 | -135.84 |
2020-12-31 | 54 | -1,129 | -1,075 | -2221.01 |
2019-12-31 | 61 | -10 | 51 | 1240.52 |
2018-12-31 | 11 | -7 | 4 | n/a |
MicroStrategy could be more effective in converting profits into cash, since its cash flows are averaging $-888,992,000.00, with a rate of change of -372.1% and a variability of 136.6%. For this reason, investors with a long term horizon will may want to look elsewhere if stability is an important factor of their stock screening.