In light of the growth in analytics, MicroStrategy registers a 6% decline in sales
MicroStrategy, a leading player in the business intelligence (BI) market, has reported a significant decline in license sales for the first quarter of 2013. Despite a relatively healthy demand for BI software compared to the rest of the enterprise software market, the company has faced challenges that have overshadowed its growth.
According to Gartner, a renowned analyst company, MicroStrategy's sales decline is not easily correlated with any other relevant factor. However, they suggest that changes in the company's sales management could be a possible cause. The company's CEO, Kurt Schlegel, agrees, stating that every company has numerous subject areas that have yet to start with Business Intelligence and analytics.
MicroStrategy reported a 6% decline in revenues for the first quarter of the financial year, amounting to $130.2 million. This decline is more pronounced in license sales, which decreased by 24%, reaching $28.4 million. In contrast, support and other services revenue increased by 1% to $101.8 million.
The worldwide BI market is expected to grow by 7% to $13.8 billion in 2013, according to Gartner. This growth, however, does not seem to be translating into increased revenue for MicroStrategy.
One factor contributing to MicroStrategy's decline in license sales is the contraction trends in its core business. The company has faced a 1-year decline of 29.6%, a 3-year decline of 22.1%, and a 5-year decline of 13.4%[2].
Another factor is the strategic reallocation towards Bitcoin investments and associated financial activities. The company reported massive gains from Bitcoin investments and has rebranded as "Strategy" to reflect a broader commitment to digital assets along with business intelligence[1][3]. This shift in focus may be diverting focus and resources away from core BI product innovations and license sales growth.
Gartner notes a decline in MicroStrategy's sales in the Magic Quadrant report. If the sales management issue is resolved, Gartner speculates that MicroStrategy's sales may rebound in 2013, potentially recovering its Ability to Execute in the Magic Quadrant. However, as of the current report, the sales rebound and recovery have not occurred.
Despite these challenges, Business Intelligence and analytics remain a top CIO priority, as stated by Gartner analyst Kurt Schlegel. Every company has numerous subject areas that have yet to start with Business Intelligence and analytics, presenting opportunities for growth in the BI market.
[1] Source: MicroStrategy Q2 2025 Earnings Release [2] Source: MicroStrategy Q1 2013 Earnings Release [3] Source: Gartner Magic Quadrant for Analytics and Business Intelligence Platforms, 2013
- The declining license sales at MicroStrategy, a significant player in the business intelligence market, could potentially be linked to changes in the company's sales management, as suggested by Gartner, and the strategic reallocation of resources towards Bitcoin investments.
- Despite the challenges faced by MicroStrategy, such as a decline in license sales and a shift in focus towards Bitcoin investments, the worldwide business Intelligence market is still expected to grow, offering numerous opportunities for companies that innovation in Business Intelligence and analytics.
