After a poor Q2 Microstrategy followed Business Objects in achieving a good Q3 set of results.  The critical measure of software revenue was up 8% this quarter though 1% down year over year, while overall revenue at just under USD 78M was up 18% year over year.  The company still has USD 52 million in cash, and its operations generated free cash flow of about USD 18M. 

Investors have responded well, as can be seen from the share price chart below.

This is further evidence of a quite good market sentiment particularly in the US.  However it must be remembered that software sales are actually down year over year, and the company has added 30% headcount since a year ago.  For a software company, you really want to see increases in software licence revenue, not just services. This seems to be increasingly a struggle for BI vendors, and not just Microstrategy.

After a poor Q2 Microstrategy followed Business Objects in achieving a good Q3 set of results.  The critical measure of software revenue was up 8% this quarter though 1% down year over year, while overall revenue at just under USD 78M was up 18% year over year.  The company still has USD 52 million in cash, and its operations generated free cash flow of about USD 18M. 

Investors have responded well, as can be seen from the share price chart below.

This is further evidence of a quite good market sentiment particularly in the US.  However it must be remembered that software sales are actually down year over year, and the company has added 30% headcount since a year ago.  For a software company, you really want to see increases in software licence revenue, not just services. This seems to be increasingly a struggle for BI vendors, and not just Microstrategy.