Mobile analytics and enterprise software company MicroStrategy plans to cut 800 employees worldwide by the end of the year as part of a restructuring effort, and reported a net loss for the third quarter.
The company reported Q3 revenue of $151.2 million, up 7% year-over-year, and a net loss of $0.8 million, compared to more than $17 million in profits during the same period last year. Its loss from continuing operations narrowed from $11.6 million last year to $7 million in this year’s Q3.
MicroStrategy committed to a restructuring effort during Q3 to “streamline its workforce and spending to better align its cost structure with its business strategy.”
The plan is impacting 215 employees in North America, 400 in Asia Pacific, 20 in Latin America, and 165 in Europe, the Middle East and Africa (EMEA). MicroStrategy is working its way through implementing its cuts and expects them to be complete by the end of December; about 270 of the 800 positions had been eliminated as of Sept. 30.
The company expects to achieve annual pre-tax savings of about $73.4 million by changing severance and benefit costs, as well as lease and contract termination policies. Implementing the changes are resulting in some additional upfront costs, however, as MicroStrategy reported restructuring charges of $11.6 million in the third quarter with another $6.8 million expected in the final quarter of 2014.
Meanwhile, the company has been hiring a number of new executives recently, including a new EVP of professional services, EVP of worldwide alliances and channels, and a new executive in charge of North American sales.
MicroStrategy said that some of its deals from Q3 included:
- Implementing an analytics platform for U.K.-based car insurance company Admiral Group.
- Expanding its relationship with Spanish bank Bankia to make analytics and business intelligence data available to sales managers via their mobile devices. Bankia is also developing a scorecard for custom KPIs for its senior managers based on MicroStrategy’s solutions.
- Working with auto dealer Sonic Automotive, which has more than 100 locations in 13 states, to deploy mobile and web-based apps to more employees in order to monitor operations and track financial metrics for better productivity and sales.
