- 25,250 bitcoins acquired since the end of Q4 for $1.65 billion,
or $65,232 per bitcoin
- 214,400 bitcoin holdings at a total cost of $7.54 billion, or
$35,180 per bitcoin, as of April 26, 2024
- Total Revenues of $115.2 million, down 5% year-over-year
- Subscription Services Revenues of $23.0 million, up 22%
year-over-year
MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy” or
the “Company”), the largest corporate holder of bitcoin and the
largest independent publicly-traded business intelligence company,
today announced financial results for the three-month period ended
March 31, 2024 (the first quarter of its 2024 fiscal year).
“As the world’s first Bitcoin Development Company, MicroStrategy
is committed to the continued development of the bitcoin network
through our activities in the financial markets, advocacy and
technology innovation. It is through our unique bitcoin strategy
and solid track record as an operating company that we now hold
214,400 bitcoins at an average purchase price of $35,180 per
bitcoin. In the first quarter, our subscription services revenues
and subscription billings both grew again at double-digit growth
rates reflecting the continued successful transition of our
software business to a cloud-native platform. We are very pleased
with the continued global adoption of our cloud platform,” said
Phong Le, President and Chief Executive Officer, MicroStrategy.
“In the first quarter we raised over $1.5 billion by executing
again on our capital markets strategy including two successful
convertible debt offerings. We acquired 25,250 additional bitcoins
since the end of the fourth quarter, our 14th consecutive quarter
of adding more bitcoin to our balance sheet. We believe that the
combination of our operating structure, bitcoin strategy, and focus
on technology innovation provides a unique opportunity for value
creation for our shareholders. Year to date, the price of bitcoin
appreciated significantly, spurred notably by the approval of the
spot bitcoin exchange traded products which has increased
institutional demand and resulted in further regulatory clarity,”
said Andrew Kang, Chief Financial Officer, MicroStrategy.
First Quarter 2024 Financial Highlights
- Revenues: Total revenues for the first quarter of 2024
were $115.2 million, a 5.5% decrease, or a 5.7% decrease on a
non-GAAP constant currency basis, compared to the first quarter of
2023. Product licenses and subscription services revenues for the
first quarter of 2024 were $35.9 million, a 0.9% decrease, or a
0.9% decrease on a non-GAAP constant currency basis, compared to
the first quarter of 2023. Product support revenues for the first
quarter of 2024 were $62.7 million, a 4.3% decrease, or a 4.6%
decrease on a non-GAAP constant currency basis, compared to the
first quarter of 2023. Other services revenues for the first
quarter of 2024 were $16.7 million, a 17.6% decrease, or a 17.9%
decrease on a non-GAAP constant currency basis, compared to the
first quarter of 2023.
- Gross Profit: Gross profit for the first quarter of 2024
was $85.2 million, representing a 74.0% gross margin, compared to a
gross profit of $94.0 million, representing a gross margin of
77.1%, for the first quarter of 2023.
- Operating Expenses: Operating expenses for the first
quarter of 2024 were $288.9 million, a 152.8% increase compared to
the first quarter of 2023. Operating expenses include impairment
losses on the Company’s digital assets, which were $191.6 million
during the first quarter of 2024, compared to $18.9 million in the
first quarter of 2023.
- Loss from Operations and Net (Loss) Income: Loss from
operations for the first quarter of 2024 was $203.7 million,
compared to a loss from operations of $20.3 million for the first
quarter of 2023. Net loss for the first quarter of 2024 was $53.1
million, or $3.09 per share on a diluted basis, as compared to a
net income $461.2 million, or $31.79 per share on a diluted basis,
for the first quarter of 2023. Digital asset impairment losses of
$191.6 million and $18.9 million for the first quarter of 2024 and
2023, respectively, were reflected in these amounts. Benefit from
income taxes of $160.8 million and $453.2 million for the first
quarter of 2024 and 2023, respectively, were reflected in net
(loss) income, principally reflecting income tax effects from
share-based compensation and our bitcoin holdings.
- Cash and Cash Equivalents: As of March 31, 2024, the
Company had cash and cash equivalents of $81.3 million, as compared
to $46.8 million as of December 31, 2023, an increase of $34.5
million.
- Digital Assets: As of March 31, 2024, the carrying value
of the Company’s digital assets (comprised of approximately 214,278
bitcoins) was $5.074 billion, which reflects cumulative impairment
losses of $2.461 billion since acquisition and an average carrying
amount per bitcoin of approximately $23,680. As of March 31, 2024,
the original cost basis and market value of the Company’s bitcoin
were $7.535 billion and $15.220 billion, respectively, which
reflects an average cost per bitcoin of approximately $35,164 and a
market price per bitcoin of $71,028.14, respectively.
- March 2024 Issuances of Convertible Notes: In March
2024, the Company issued $800.0 million aggregate principal amount
of 0.625% Convertible Senior Notes due 2030 (the “2030 Convertible
Notes”). The 2030 Convertible Notes are senior unsecured
obligations of the Company and bear interest at a fixed rate of
0.625% per annum, payable semiannually in arrears on March 15 and
September 15 of each year, beginning on September 15, 2024. Holders
of the 2030 Convertible Notes may receive additional interest under
specified circumstances as outlined in the indenture for the 2030
Convertible Notes. The 2030 Convertible Notes are convertible into
shares of MicroStrategy’s class A common stock at an initial
conversion price of $1,497.68 per share. The 2030 Convertible Notes
will mature on March 15, 2030, unless earlier converted, redeemed,
or repurchased in accordance with their terms. The holders of the
2030 Convertible Notes have the right to require the Company to
repurchase for cash all or any portion of their 2030 Convertible
Notes on September 15, 2028 at a repurchase price equal to 100% of
the principal amount of the 2030 Convertible Notes to be
repurchased, plus any accrued and unpaid interest to, but
excluding, the repurchase date. The total net proceeds from the
2030 Convertible Notes offering, after deducting initial purchaser
discounts and issuance costs, were approximately $782.0 million. In
March 2024, the Company issued $603.8 million aggregate principal
amount of 0.875% Convertible Senior Notes due 2031 (the “2031
Convertible Notes”). The 2031 Convertible Notes are senior
unsecured obligations of the Company and bear interest at a fixed
rate of 0.875% per annum, payable semiannually in arrears on March
15 and September 15 of each year, beginning on September 15, 2024.
Holders of the 2031 Convertible Notes may receive additional
interest under specified circumstances as outlined in the indenture
for the 2031 Convertible Notes. The 2031 Convertible Notes are
convertible into shares of MicroStrategy’s class A common stock at
an initial conversion price of $2,327.21 per share. The 2031
Convertible Notes will mature on March 15, 2031, unless earlier
converted, redeemed, or repurchased in accordance with their terms.
The holders of the 2031 Convertible Notes have the right to require
the Company to repurchase for cash all or any portion of their 2031
Convertible Notes on September 15, 2028 at a repurchase price equal
to 100% of the principal amount of the 2031 Convertible Notes to be
repurchased, plus any accrued and unpaid interest to, but
excluding, the repurchase date. The total net proceeds from the
2031 Convertible Notes offering, after deducting initial purchaser
discounts and issuance costs, were approximately $592.3 million. As
of March 31, 2024, the carrying values (which are net of
unamortized issuance costs) of the 2030 Convertible Notes and 2031
Convertible Notes were $782.2 million and $592.4 million,
respectively, and were classified as long-term liabilities in the
“Long-term debt, net” line item in the Company's Consolidated
Balance Sheet.
The tables provided at the end of this press release include a
reconciliation of the most directly comparable financial measures
prepared in accordance with generally accepted accounting
principles in the United States (“GAAP”) to non-GAAP financial
measures for the three months ended March 31, 2024 and 2023. An
explanation of non-GAAP financial measures is also included under
the heading “Non-GAAP Financial Measures” below. Additional
non-GAAP financial measures are included in MicroStrategy’s “Q1
2024 Earnings Presentation,” which will be available under the
“Events and Presentations” section of MicroStrategy’s investor
relations website at
https://www.microstrategy.com/en/investor-relations.
Non-GAAP Financial Measures
MicroStrategy is providing supplemental financial measures for
(i) non-GAAP loss from operations that excludes the impact of
share-based compensation expense, (ii) non-GAAP net (loss) income
and non-GAAP diluted (loss) earnings per share that exclude the
impacts of share-based compensation expense, interest expense
arising from the amortization of debt issuance costs related to
MicroStrategy’s long-term debt, gain on debt extinguishment, and
related income tax effects, and (iii) non-GAAP constant currency
revenues that exclude certain foreign currency exchange rate
fluctuations. These supplemental financial measures are not
measurements of financial performance under GAAP and, as a result,
these supplemental financial measures may not be comparable to
similarly titled measures of other companies. Management uses these
non-GAAP financial measures internally to help understand, manage,
and evaluate business performance and to help make operating
decisions.
MicroStrategy believes that these non-GAAP financial measures
are also useful to investors and analysts in comparing its
performance across reporting periods on a consistent basis. The
first supplemental financial measure excludes a significant
non-cash expense that MicroStrategy believes is not reflective of
its general business performance, and for which the accounting
requires management judgment and the resulting share-based
compensation expense could vary significantly in comparison to
other companies. The second set of supplemental financial measures
excludes the impacts of (i) share-based compensation expense, (ii)
non-cash interest expense arising from the amortization of debt
issuance costs related to MicroStrategy’s long-term debt, (iii) a
gain on debt extinguishment, and (iv) related income tax effects.
The third set of supplemental financial measures excludes changes
resulting from certain fluctuations in foreign currency exchange
rates so that results may be compared to the same period in the
prior year on a non-GAAP constant currency basis. MicroStrategy
believes the use of these non-GAAP financial measures can also
facilitate comparison of MicroStrategy’s operating results to those
of its competitors.
Conference Call
MicroStrategy will be discussing its first quarter 2024
financial results on a live Video Webinar today beginning at
approximately 5:00 p.m. ET. The live Video Webinar and accompanying
presentation materials will be available under the “Events and
Presentations” section of MicroStrategy’s investor relations
website at https://www.microstrategy.com/en/investor-relations.
Log-in instructions will be available after registering for the
event. An archived replay of the event will be available beginning
approximately two hours after the call concludes.
About MicroStrategy Incorporated
MicroStrategy (Nasdaq: MSTR) considers itself the world’s first
Bitcoin development company. We are a publicly-traded operating
company committed to the continued development of the bitcoin
network through our activities in the financial markets, advocacy
and technology innovation. As an operating business, we are able to
use cashflows as well as proceeds from equity and debt financings
to accumulate bitcoin, which serves as our primary treasury reserve
asset. We also develop and provide industry-leading AI-powered
enterprise analytics software that promotes our vision of
Intelligence Everywhere, and are using our software development
capabilities to develop bitcoin applications. We believe that the
combination of our operating structure, bitcoin strategy and focus
on technology innovation provides a unique opportunity for value
creation. For more information about MicroStrategy, visit
www.microstrategy.com.
MicroStrategy, MicroStrategy AI, Intelligence Everywhere,
Intelligent Enterprise, and MicroStrategy Library are either
trademarks or registered trademarks of MicroStrategy Incorporated
in the United States and certain other countries. Other product and
company names mentioned herein may be the trademarks of their
respective owners.
This press release may include statements that may constitute
“forward-looking statements,” including estimates of future
business prospects or financial results and statements containing
the words “believe,” “estimate,” “project,” “expect,” “will,” or
similar expressions. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results of
MicroStrategy Incorporated and its subsidiaries (collectively, the
“Company”) to differ materially from the forward-looking
statements. Factors that could contribute to such differences
include: fluctuations in the market price of bitcoin and any
associated impairment charges that the Company may incur as a
result of a decrease in the market price of bitcoin below the value
at which the Company’s bitcoins are carried on its balance sheet;
gains or losses on any sales of bitcoins; changes in the accounting
treatment relating to the Company’s bitcoin holdings; changes in
securities laws or other laws or regulations, or the adoption of
new laws or regulations, relating to bitcoin that adversely affect
the price of bitcoin or the Company’s ability to transact in or own
bitcoin; a decrease in liquidity in the markets in which bitcoin is
traded; security breaches, cyberattacks, unauthorized access, loss
of private keys, fraud or other circumstances or events that result
in the loss of the Company’s bitcoins; impacts to the price and
rate of adoption of bitcoin associated with financial difficulties
and bankruptcies of various participants in the digital asset
industry; the level and terms of the Company’s substantial
indebtedness and its ability to service such debt; the extent and
timing of market acceptance of the Company’s new product offerings;
continued acceptance of the Company’s other products in the
marketplace; the Company’s ability to recognize revenue or deferred
revenue through delivery of products or satisfactory performance of
services; the timing of significant orders; delays in or the
inability of the Company to develop or ship new products; customers
continuing to shift from a product license model to a cloud
subscription model, which may delay the Company’s ability to
recognize revenue; fluctuations in tax benefits or provisions;
changes in the market price of bitcoin as of period-end and their
effect on our deferred tax assets and related valuation allowance;
other potentially adverse tax consequences; competitive factors;
general economic conditions, including levels of inflation and
interest rates; currency fluctuations; and other risks detailed in
MicroStrategy’s registration statements and periodic reports filed
with the Securities and Exchange Commission (“SEC”). The Company
undertakes no obligation to update these forward-looking statements
for revisions or changes after the date of this release.
MICROSTRATEGY
INCORPORATED
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share data)
Three Months Ended
March 31,
2024
2023
(unaudited)
(unaudited)
Revenues:
Product licenses
$
12,938
$
17,412
Subscription services
22,966
18,810
Total product licenses and subscription
services
35,904
36,222
Product support
62,685
65,481
Other services
16,657
20,212
Total revenues
115,246
121,915
Cost of revenues:
Product licenses
567
534
Subscription services
8,604
7,856
Total product licenses and subscription
services
9,171
8,390
Product support
8,547
5,768
Other services
12,297
13,783
Total cost of revenues
30,015
27,941
Gross profit
85,231
93,974
Operating expenses:
Sales and marketing
33,451
36,106
Research and development
29,183
31,358
General and administrative
34,666
27,906
Digital asset impairment losses
191,633
18,911
Total operating expenses
288,933
114,281
Loss from operations
(203,702
)
(20,307
)
Interest expense, net
(11,881
)
(14,930
)
Gain on debt extinguishment
0
44,686
Other income (expense), net
1,696
(1,443
)
(Loss) income before income
taxes
(213,887
)
8,006
Benefit from income taxes
(160,769
)
(453,187
)
Net (loss) income
$
(53,118
)
$
461,193
Basic (loss) earnings per share
(1)
$
(3.09
)
$
38.97
Weighted average shares outstanding used
in computing basic (loss) earnings per share
17,194
11,834
Diluted (loss) earnings per share
(1)
$
(3.09
)
$
31.79
Weighted average shares outstanding used
in computing diluted (loss) earnings per share
17,194
14,575
(1)
Basic and fully diluted (loss) earnings
per share for class A and class B common stock are the same.
MICROSTRATEGY
INCORPORATED
CONSOLIDATED BALANCE
SHEETS
(in thousands, except per
share data)
March 31,
December 31,
2024
2023*
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
81,326
$
46,817
Restricted cash
2,402
1,856
Accounts receivable, net
115,150
183,815
Prepaid expenses and other current
assets
42,714
35,407
Total current assets
241,592
267,895
Digital assets
5,074,152
3,626,476
Property and equipment, net
29,108
28,941
Right-of-use assets
55,093
57,343
Deposits and other assets
31,757
24,300
Deferred tax assets, net
919,837
757,573
Total Assets
$
6,351,539
$
4,762,528
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable, accrued expenses, and
operating lease liabilities
$
41,866
$
43,090
Accrued compensation and employee
benefits
40,617
50,045
Accrued interest
10,878
1,493
Current portion of long-term debt, net
492
483
Deferred revenue and advance payments
215,955
228,162
Total current liabilities
309,808
323,273
Long-term debt, net
3,558,801
2,182,108
Deferred revenue and advance payments
6,486
8,524
Operating lease liabilities
58,430
61,086
Other long-term liabilities
17,552
22,208
Deferred tax liabilities
357
357
Total liabilities
3,951,434
2,597,556
Stockholders’ Equity
Preferred stock undesignated, $0.001 par
value; 5,000 shares authorized; no shares issued or outstanding
0
0
Class A common stock, $0.001 par value;
330,000 shares authorized; 24,367 shares issued and 15,683 shares
outstanding, and 23,588 shares issued and 14,904 shares
outstanding, respectively
24
24
Class B convertible common stock, $0.001
par value; 165,000 shares authorized; 1,964 shares issued and
outstanding, and 1,964 shares issued and outstanding,
respectively
2
2
Additional paid-in capital
4,247,704
3,957,728
Treasury stock, at cost; 8,684 shares and
8,684 shares, respectively
(782,104
)
(782,104
)
Accumulated other comprehensive loss
(13,169
)
(11,444
)
Accumulated deficit
(1,052,352
)
(999,234
)
Total Stockholders’ Equity
2,400,105
2,164,972
Total Liabilities and Stockholders’
Equity
$
6,351,539
$
4,762,528
*
Derived from audited financial
statements.
MICROSTRATEGY
INCORPORATED
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
2024
2023
(unaudited)
(unaudited)
Net cash provided by operating
activities
$
28,587
$
37,397
Net cash used in investing activities
(1,640,854
)
(179,774
)
Net cash provided by financing
activities
1,648,400
187,622
Effect of foreign exchange rate changes on
cash, cash equivalents, and restricted cash
(1,078
)
351
Net increase in cash, cash equivalents,
and restricted cash
35,055
45,596
Cash, cash equivalents, and restricted
cash, beginning of period
48,673
50,868
Cash, cash equivalents, and restricted
cash, end of period
$
83,728
$
96,464
MICROSTRATEGY
INCORPORATED
REVENUE AND COST OF REVENUE
DETAIL
(in thousands)
Three Months Ended
March 31,
2024
2023
(unaudited)
(unaudited)
Revenues
Product licenses and subscription
services:
Product licenses
$
12,938
$
17,412
Subscription services
22,966
18,810
Total product licenses and subscription
services
35,904
36,222
Product support
62,685
65,481
Other services:
Consulting
15,815
19,337
Education
842
875
Total other services
16,657
20,212
Total revenues
115,246
121,915
Cost of revenues
Product licenses and subscription
services:
Product licenses
567
534
Subscription services
8,604
7,856
Total product licenses and subscription
services
9,171
8,390
Product support
8,547
5,768
Other services:
Consulting
11,746
13,012
Education
551
771
Total other services
12,297
13,783
Total cost of revenues
30,015
27,941
Gross profit
$
85,231
$
93,974
MICROSTRATEGY
INCORPORATED
DIGITAL ASSETS – ADDITIONAL
INFORMATION
ROLLFORWARD OF BITCOIN
HOLDINGS
(unaudited)
Source of Capital Used to
Purchase Bitcoin
Digital Asset Original Cost
Basis (in thousands)
Digital Asset Impairment
Losses (in thousands)
Digital Asset Carrying Value
(in thousands)
Approximate Number of Bitcoins
Held *
Approximate Average Purchase
Price Per Bitcoin
Balance at December 31, 2022
$
3,993,190
$
(2,153,162
)
$
1,840,028
132,500
$
30,137
Digital asset purchases
(a)
179,275
179,275
7,500
23,903
Digital asset impairment losses
(18,911
)
(18,911
)
Balance at March 31, 2023
$
4,172,465
$
(2,172,073
)
$
2,000,392
140,000
$
29,803
Digital asset purchases
(b)
347,003
347,003
12,333
28,136
Digital asset impairment losses
(24,143
)
(24,143
)
Balance at June 30, 2023
$
4,519,468
$
(2,196,216
)
$
2,323,252
152,333
$
29,668
Digital asset purchases
(c)
161,681
161,681
5,912
27,348
Digital asset impairment losses
(33,559
)
(33,559
)
Balance at September 30, 2023
$
4,681,149
$
(2,229,775
)
$
2,451,374
158,245
$
29,582
Digital asset purchases
(d)
1,214,340
1,214,340
30,905
39,293
Digital asset impairment losses
(39,238
)
(39,238
)
Balance at December 31, 2023
$
5,895,489
$
(2,269,013
)
$
3,626,476
189,150
$
31,168
Digital asset purchases
(e)
1,639,309
1,639,309
25,128
65,238
Digital asset impairment losses
(191,633
)
(191,633
)
Balance at March 31, 2024
$
7,534,798
$
(2,460,646
)
$
5,074,152
214,278
$
35,164
*
MicroStrategy owns and has
purchased bitcoins both directly and indirectly through its
wholly-owned subsidiary, MacroStrategy. References to MicroStrategy
below refer to MicroStrategy and its subsidiaries on a consolidated
basis.
(a)
In the first quarter of 2023,
MicroStrategy purchased bitcoin using $179.3 million of the net
proceeds from its sale of class A common stock under its
at-the-market equity offering program.
(b)
In the second quarter of 2023,
MicroStrategy purchased bitcoin using $336.9 million of the net
proceeds from its sale of class A common stock under its
at-the-market equity offering program, and Excess Cash.
(c)
In the third quarter of 2023,
MicroStrategy purchased bitcoin using $147.3 million of the net
proceeds from its sale of class A common stock under its
at-the-market equity offering program, and Excess Cash.
(d)
In the fourth quarter of 2023,
MicroStrategy purchased bitcoin using $1.201 billion of the net
proceeds from its sale of class A common stock under its
at-the-market equity offering program, and Excess Cash.
(e)
In the first quarter of 2024,
MicroStrategy purchased bitcoin using $782.0 million of the net
proceeds from its issuance of the 2030 Convertible Notes, $592.3
million of the net proceeds from its issuance of the 2031
Convertible Notes, $137.3 million of the net proceeds from its sale
of class A common stock under its at-the-market equity offering
program, and Excess Cash.
Excess Cash refers to cash in excess of
the minimum Cash Assets that MicroStrategy is required to hold
under its Treasury Reserve Policy, which may include cash generated
by operating activities and cash from the proceeds of financing
activities. Cash Assets refers to cash and cash equivalents and
short-term investments.
MICROSTRATEGY
INCORPORATED
DIGITAL ASSETS – ADDITIONAL
INFORMATION
MARKET VALUE OF BITCOIN
HOLDINGS
(unaudited)
Approximate Number of Bitcoins
Held at End of Quarter *
Lowest Market Price Per
Bitcoin During Quarter (a)
Market Value of Bitcoin Held
at End of Quarter Using Lowest Market Price (in thousands)
(b)
Highest
Market Price Per Bitcoin
During Quarter (c)
Market Value of Bitcoin Held
at End of Quarter Using Highest Market Price (in thousands)
(d)
Market Price Per Bitcoin at
End of Quarter (e)
Market Value of Bitcoin Held
at End of Quarter Using Ending Market Price (in thousands)
(f)
December 31, 2022
132,500
$
15,460.00
$
2,048,450
$
21,478.80
$
2,845,941
$
16,556.32
$
2,193,712
March 31, 2023
140,000
$
16,490.00
$
2,308,600
$
29,190.04
$
4,086,606
$
28,468.44
$
3,985,582
June 30, 2023
152,333
$
24,750.00
$
3,770,242
$
31,443.67
$
4,789,909
$
30,361.51
$
4,625,060
September 30, 2023
158,245
$
24,900.00
$
3,940,301
$
31,862.21
$
5,042,035
$
27,030.47
$
4,277,437
December 31, 2023
189,150
$
26,521.32
$
5,016,508
$
45,000.00
$
8,511,750
$
42,531.41
$
8,044,816
March 31, 2024
214,278
$
38,501.00
$
8,249,917
$
73,835.57
$
15,821,338
$
71,028.14
$
15,219,768
*
MicroStrategy owns and has
purchased bitcoins both directly and indirectly through its
wholly-owned subsidiary, MacroStrategy. References to MicroStrategy
below refer to MicroStrategy and its subsidiaries on a consolidated
basis.
(a)
The "Lowest Market Price Per
Bitcoin During Quarter" represents the lowest market price for one
bitcoin reported on the Coinbase exchange during the respective
quarter, without regard to when MicroStrategy purchased any of its
bitcoin.
(b)
The "Market Value of Bitcoin Held
at End of Quarter Using Lowest Market Price" represents a
mathematical calculation consisting of the lowest market price for
one bitcoin reported on the Coinbase exchange during the respective
quarter multiplied by the number of bitcoins held by MicroStrategy
at the end of the applicable period.
(c)
The "Highest Market Price Per
Bitcoin During Quarter" represents the highest market price for one
bitcoin reported on the Coinbase exchange during the respective
quarter, without regard to when MicroStrategy purchased any of its
bitcoin.
(d)
The "Market Value of Bitcoin Held
at End of Quarter Using Highest Market Price" represents a
mathematical calculation consisting of the highest market price for
one bitcoin reported on the Coinbase exchange during the respective
quarter multiplied by the number of bitcoins held by MicroStrategy
at the end of the applicable period.
(e)
The "Market Price Per Bitcoin at
End of Quarter" represents the market price of one bitcoin on the
Coinbase exchange at 4:00 p.m. Eastern Time on the last day of the
respective quarter.
(f)
The "Market Value of Bitcoin Held
at End of Quarter Using Ending Market Price" represents a
mathematical calculation consisting of the market price of one
bitcoin on the Coinbase exchange at 4:00 p.m. Eastern Time on the
last day of the respective quarter multiplied by the number of
bitcoins held by MicroStrategy at the end of the applicable
period.
The amounts reported as “Market Value” in
the above table represent only a mathematical calculation
consisting of the price for one bitcoin reported on the Coinbase
exchange (MicroStrategy’s principal market for bitcoin) in each
scenario defined above multiplied by the number of bitcoins held by
MicroStrategy at the end of the applicable period. Bitcoin and
bitcoin markets may be subject to manipulation and the spot price
of bitcoin may be subject to fraud and manipulation. Accordingly,
the Market Value amounts reported above may not accurately
represent fair market value, and the actual fair market value of
MicroStrategy’s bitcoin may be different from such amounts and such
deviation may be material. Moreover, (i) the bitcoin market
historically has been characterized by significant volatility in
price, limited liquidity and trading volumes compared to sovereign
currencies markets, relative anonymity, a developing regulatory
landscape, potential susceptibility to market abuse and
manipulation, compliance and internal control failures at
exchanges, and various other risks that are, or may be, inherent in
its entirely electronic, virtual form and decentralized network and
(ii) MicroStrategy may not be able to sell its bitcoins at the
Market Value amounts indicated above, at the market price as
reported on the Coinbase exchange (its principal market) on the
date of sale, or at all.
MICROSTRATEGY
INCORPORATED
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
LOSS FROM OPERATIONS
(in thousands)
Three Months Ended
March 31,
2024
2023
(unaudited)
(unaudited)
Reconciliation of non-GAAP loss from
operations:
Loss from operations
$
(203,702
)
$
(20,307
)
Share-based compensation expense
17,791
17,555
Non-GAAP loss from operations
$
(185,911
)
$
(2,752
)
MICROSTRATEGY
INCORPORATED
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
NET (LOSS) INCOME AND DILUTED
(LOSS) EARNINGS PER SHARE
(in thousands, except per
share data)
Three Months Ended
March 31,
2024
2023
(unaudited)
(unaudited)
Reconciliation of non-GAAP net (loss)
income:
Net (loss) income
$
(53,118
)
$
461,193
Share-based compensation expense
17,791
17,555
Interest expense arising from amortization
of debt issuance costs
2,557
2,210
Gain on debt extinguishment
0
(44,686
)
Income tax effects (1)
(109,238
)
8,766
Non-GAAP net (loss) income
$
(142,008
)
$
445,038
Reconciliation of non-GAAP diluted
(loss) earnings per share (2):
Diluted (loss) earnings per share
$
(3.09
)
$
31.79
Share-based compensation expense (per
diluted share)
1.03
1.20
Interest expense arising from amortization
of debt issuance costs (per diluted share) (3)
0.15
0.03
Gain on debt extinguishment (per diluted
share)
0.00
(3.07
)
Income tax effects (per diluted share)
(3)
(6.35
)
0.64
Non-GAAP diluted (loss) earnings per
share
$
(8.26
)
$
30.59
(1)
Income tax effects reflect the
net tax effects of share-based compensation, which includes tax
benefits and expenses on exercises of stock options and vesting of
share-settled restricted stock units, interest expense for
amortization of debt issuance costs, and gain on debt
extinguishment.
(2)
For reconciliation purposes, the
non-GAAP diluted earnings (loss) per share calculations use the
same weighted average shares outstanding as that used in the GAAP
diluted earnings (loss) per share calculations for the same period.
For example, in periods of GAAP net loss, otherwise dilutive
potential shares of common stock from MicroStrategy’s share-based
compensation arrangements and convertible notes are excluded from
the GAAP diluted loss per share calculation as they would be
antidilutive, and therefore are also excluded from the non-GAAP
diluted earnings or loss per share calculation.
(3)
For the three months ended March
31, 2023, interest expense from the amortization of issuance costs
of the convertible notes has been added back to the numerator in
the GAAP diluted earnings per share calculation, and therefore the
per diluted share effects of the amortization of issuance costs of
the convertible notes have been excluded from the “Interest expense
arising from amortization of debt issuance costs (per diluted
share)” and “Income tax effects (per diluted share)” lines in the
above reconciliation for the three months ended March 31, 2023.
MICROSTRATEGY
INCORPORATED
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
CONSTANT CURRENCY
(in thousands)
Three Months Ended
March 31,
(unaudited)
GAAP
Foreign Currency Exchange Rate
Impact (1)
Non-GAAP Constant Currency
(2)
GAAP
GAAP % Change
Non-GAAP Constant Currency %
Change (3)
2024
2024
2024
2023
2024
2024
Revenues
Product licenses
$
12,938
$
(82
)
$
13,020
$
17,412
-25.7
%
-25.2
%
Subscription services
22,966
86
22,880
18,810
22.1
%
21.6
%
Total product licenses and subscription
services
35,904
4
35,900
36,222
-0.9
%
-0.9
%
Product support
62,685
244
62,441
65,481
-4.3
%
-4.6
%
Other services
16,657
58
16,599
20,212
-17.6
%
-17.9
%
Total revenues
115,246
306
114,940
121,915
-5.5
%
-5.7
%
(1)
The “Foreign Currency Exchange
Rate Impact” reflects the estimated impact of fluctuations in
foreign currency exchange rates on international revenues. It shows
the increase (decrease) in international revenues from the same
period in the prior year, based on comparisons to the prior year
quarterly average foreign currency exchange rates. “International
revenues” refers to revenues from operations outside of the United
States and Canada only where the functional currency is the local
currency (i.e., excluding any location whose economy is considered
highly inflationary).
(2)
The “Non-GAAP Constant Currency”
reflects the current period GAAP amount, less the Foreign Currency
Exchange Rate Impact.
(3)
The “Non-GAAP Constant Currency %
Change” reflects the percentage change between the current period
Non-GAAP Constant Currency amount and the GAAP amount for the same
period in the prior year.
MICROSTRATEGY
INCORPORATED
DEFERRED REVENUE
DETAIL
(in thousands)
March 31,
December 31,
March 31,
2024
2023*
2023
(unaudited)
(unaudited)
Current:
Deferred product licenses revenue
$
2,879
$
3,579
$
479
Deferred subscription services revenue
60,280
65,512
46,719
Deferred product support revenue
148,078
152,012
159,792
Deferred other services revenue
4,718
7,059
4,778
Total current deferred revenue and advance
payments
$
215,955
$
228,162
$
211,768
Non-current:
Deferred product licenses revenue
$
0
$
0
$
2,710
Deferred subscription services revenue
1,992
3,097
2,671
Deferred product support revenue
4,094
4,984
5,712
Deferred other services revenue
400
443
553
Total non-current deferred revenue and
advance payments
$
6,486
$
8,524
$
11,646
Total current and non-current:
Deferred product licenses revenue
$
2,879
$
3,579
$
3,189
Deferred subscription services revenue
62,272
68,609
49,390
Deferred product support revenue
152,172
156,996
165,504
Deferred other services revenue
5,118
7,502
5,331
Total current and non-current deferred
revenue and advance payments
$
222,441
$
236,686
$
223,414
*
Derived from audited financial
statements.
MICROSTRATEGY
INCORPORATED
SEGMENT INFORMATION
(in thousands,
unaudited)
Three Months Ended March 31,
2024
Three Months Ended March 31,
2023
Software Business
Corporate & Other
Total Consolidated
Software Business
Corporate & Other
Total Consolidated
Total revenues
$
115,246
$
115,246
$
121,915
$
121,915
Total cost of revenues
30,015
30,015
27,941
27,941
Gross profit
$
85,231
$
85,231
$
93,974
$
93,974
Total operating expenses
96,123
192,810
288,933
94,487
19,794
114,281
Loss from operations
$
(10,892
)
$
(192,810
)
$
(203,702
)
$
(513
)
$
(19,794
)
$
(20,307
)
MicroStrategy manages its business in one
reportable operating segment which is engaged in the design,
development, marketing, and sales of its software platform through
licensing arrangements and cloud subscriptions and related
services. Beginning in 2024, MicroStrategy has broken out a
Corporate & Other category, which is not considered an
operating segment, and includes the impairment charges and other
third-party costs associated with its digital asset holdings.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429608423/en/
MicroStrategy Incorporated Shirish Jajodia Investor Relations
ir@microstrategy.com
MicroStrategy (NASDAQ:MSTR)
過去 株価チャート
から 4 2024 まで 5 2024
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