MicroStrategy Announces Fourth Quarter 2023 Financial Results; Now Holds 190,000 BTC
-
31,755 bitcoins acquired since the end of Q3 for
$1.25 billion , or$39,411 per bitcoin -
190,000 bitcoin holdings at a total cost of
$5.93 billion , or$31,224 per bitcoin, as ofFebruary 5, 2024 -
Total Revenues of
$124.5 million , down 6% year-over-year -
Subscription Services Revenues of
$21.5 million , up 23% year-over-year
“2023 was an extraordinary year for
“We acquired 31,755 additional bitcoins since the end of the third quarter, marking the largest quarterly bitcoin holding increase in the last 3 years and the 13th consecutive quarter of adding more bitcoin on our balance sheet. We benefited from the significant increase in bitcoin prices in Q4 and we also continued to leverage our strategic capital markets activities and cash on hand to accumulate more bitcoin and accrete incremental value for our shareholders. It is through our unique bitcoin strategy and solid track record that we now hold 190,000 bitcoins at an aggregate purchase price of
Fourth Quarter 2023 Financial Highlights
-
Revenues: Total revenues for the fourth quarter of 2023 were
$124.5 million , a 6.1% decrease, or a 7.8% decrease on a non-GAAP constant currency basis, compared to the fourth quarter of 2022. Product licenses and subscription services revenues for the fourth quarter of 2023 were$39.9 million , an 11.4% decrease, or a 13.1% decrease on a non-GAAP constant currency basis, compared to the fourth quarter of 2022. Product support revenues for the fourth quarter of 2023 were$65.5 million , a 2.1% decrease, or a 3.8% decrease on a non-GAAP constant currency basis, compared to the fourth quarter of 2022. Other services revenues for the fourth quarter of 2023 were$19.1 million , a 7.5% decrease, or a 9.4% decrease on a non-GAAP constant currency basis, compared to the fourth quarter of 2022. -
Gross Profit: Gross profit for the fourth quarter of 2023 was
$96.3 million , representing a 77.3% gross margin, compared to a gross profit of$105.8 million , representing a gross margin of 79.8%, for the fourth quarter of 2022. -
Operating Expenses: Operating expenses for the fourth quarter of 2023 were
$139.0 million , a 53.6% decrease compared to the fourth quarter of 2022. Operating expenses include impairment losses, net of gains on sale, on the Company’s digital assets, which were$39.2 million during the fourth quarter of 2023, compared to$197.6 million in the fourth quarter of 2022. -
Loss from Operations and Net Income (Loss): Loss from operations for the fourth quarter of 2023 was
$42.8 million , compared to a loss from operations of$193.7 million for the fourth quarter of 2022. Net income for the fourth quarter of 2023 was$89.1 million , or$4.96 per share on a diluted basis, as compared to a net loss$249.7 million , or$21.93 per share on a diluted basis, for the fourth quarter of 2022. Digital asset impairment losses, net of gains on sale, of$39.2 million and$197.6 million for the fourth quarter of 2023 and 2022, respectively, were reflected in these amounts. Benefit from income taxes of$149.8 million and provision for income taxes of$35.3 million for the fourth quarter of 2023 and 2022, respectively, were reflected in net income (loss), principally reflecting changes in the valuation allowance on the Company’s deferred tax asset related to the impairment on its bitcoin holdings. -
Cash and Cash Equivalents: As of
December 31, 2023 , the Company had cash and cash equivalents of$46.8 million , as compared to$43.8 million as ofDecember 31, 2022 , an increase of$3.0 million . -
Digital Assets: As of
December 31, 2023 , the carrying value of the Company’s digital assets (comprised of approximately 189,150 bitcoins) was$3.626 billion , which reflects cumulative impairment losses of$2.269 billion since acquisition and an average carrying amount per bitcoin of approximately$19,172 . As ofDecember 31, 2023 , the original cost basis and market value of the Company’s bitcoin were$5.895 billion and$8.045 billion , respectively, which reflects an average cost per bitcoin of approximately$31,168 and a market price per bitcoin of$42,531.41 , respectively. -
At-the-Market Equity Offering Programs: During the three months ended
December 31, 2023 , the Company issued and sold 2,266,503 shares of its class A common stock pursuant to our at-the-market equity offering programs for aggregate net proceeds (less sales commissions and expenses) of approximately$1.2 billion . As ofDecember 31, 2023 , approximately$137.8 million of the Company’s class A common stock remained available for issuance and sale pursuant to our current at-the-market equity offering program.
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
Non-GAAP Financial Measures
Conference Call
About
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
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022* |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product licenses |
|
$ |
18,372 |
|
|
$ |
27,570 |
|
|
$ |
75,351 |
|
|
$ |
86,498 |
|
Subscription services |
|
|
21,517 |
|
|
|
17,470 |
|
|
|
81,179 |
|
|
|
60,746 |
|
Total product licenses and subscription services |
|
|
39,889 |
|
|
|
45,040 |
|
|
|
156,530 |
|
|
|
147,244 |
|
Product support |
|
|
65,466 |
|
|
|
66,839 |
|
|
|
263,888 |
|
|
|
266,521 |
|
Other services |
|
|
19,129 |
|
|
|
20,675 |
|
|
|
75,843 |
|
|
|
85,499 |
|
Total revenues |
|
|
124,484 |
|
|
|
132,554 |
|
|
|
496,261 |
|
|
|
499,264 |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product licenses |
|
|
609 |
|
|
|
358 |
|
|
|
1,929 |
|
|
|
1,672 |
|
Subscription services |
|
|
8,676 |
|
|
|
7,467 |
|
|
|
31,776 |
|
|
|
24,770 |
|
Total product licenses and subscription services |
|
|
9,285 |
|
|
|
7,825 |
|
|
|
33,705 |
|
|
|
26,442 |
|
Product support |
|
|
5,319 |
|
|
|
5,722 |
|
|
|
22,434 |
|
|
|
21,264 |
|
Other services |
|
|
13,617 |
|
|
|
13,176 |
|
|
|
53,805 |
|
|
|
55,283 |
|
Total cost of revenues |
|
|
28,221 |
|
|
|
26,723 |
|
|
|
109,944 |
|
|
|
102,989 |
|
Gross profit |
|
|
96,263 |
|
|
|
105,831 |
|
|
|
386,317 |
|
|
|
396,275 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
|
40,299 |
|
|
|
41,371 |
|
|
|
149,671 |
|
|
|
146,882 |
|
Research and development |
|
|
30,158 |
|
|
|
31,617 |
|
|
|
120,530 |
|
|
|
127,428 |
|
General and administrative |
|
|
29,353 |
|
|
|
28,930 |
|
|
|
115,312 |
|
|
|
111,421 |
|
Digital asset impairment losses (gains on sale), net |
|
|
39,238 |
|
|
|
197,630 |
|
|
|
115,851 |
|
|
|
1,286,286 |
|
Total operating expenses |
|
|
139,048 |
|
|
|
299,548 |
|
|
|
501,364 |
|
|
|
1,672,017 |
|
Loss from operations |
|
|
(42,785 |
) |
|
|
(193,717 |
) |
|
|
(115,047 |
) |
|
|
(1,275,742 |
) |
Interest expense, net |
|
|
(11,929 |
) |
|
|
(14,837 |
) |
|
|
(48,960 |
) |
|
|
(53,136 |
) |
Gain on debt extinguishment |
|
|
0 |
|
|
|
0 |
|
|
|
44,686 |
|
|
|
0 |
|
Other (expense) income, net |
|
|
(5,930 |
) |
|
|
(5,829 |
) |
|
|
(5,204 |
) |
|
|
6,413 |
|
Loss before income taxes |
|
|
(60,644 |
) |
|
|
(214,383 |
) |
|
|
(124,525 |
) |
|
|
(1,322,465 |
) |
(Benefit from) provision for income taxes |
|
|
(149,770 |
) |
|
|
35,286 |
|
|
|
(553,646 |
) |
|
|
147,332 |
|
Net income (loss) |
|
$ |
89,126 |
|
|
$ |
(249,669 |
) |
|
$ |
429,121 |
|
|
$ |
(1,469,797 |
) |
Basic earnings (loss) per share (1): |
|
$ |
5.81 |
|
|
$ |
(21.93 |
) |
|
$ |
31.39 |
|
|
$ |
(129.83 |
) |
Weighted average shares outstanding used in computing basic earnings (loss) per share |
|
|
15,336 |
|
|
|
11,386 |
|
|
|
13,671 |
|
|
|
11,321 |
|
Diluted earnings (loss) per share (1): |
|
$ |
4.96 |
|
|
$ |
(21.93 |
) |
|
$ |
26.42 |
|
|
$ |
(129.83 |
) |
Weighted average shares outstanding used in computing diluted earnings (loss) per share |
|
|
18,376 |
|
|
|
11,386 |
|
|
|
16,566 |
|
|
|
11,321 |
|
(1) Basic and fully diluted earnings (loss) per share for class A and class B common stock are the same. |
||||||||||||||||
|
||||||||||||||||
* Derived from audited financial statements. |
CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
2023 |
|
|
2022* |
|
||
|
|
(unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
46,817 |
|
|
$ |
43,835 |
|
Restricted cash |
|
|
1,856 |
|
|
|
7,033 |
|
Accounts receivable, net |
|
|
183,815 |
|
|
|
189,280 |
|
Prepaid expenses and other current assets |
|
|
35,407 |
|
|
|
24,418 |
|
Total current assets |
|
|
267,895 |
|
|
|
264,566 |
|
|
|
|
|
|
|
|
||
Digital assets |
|
|
3,626,476 |
|
|
|
1,840,028 |
|
Property and equipment, net |
|
|
28,941 |
|
|
|
32,311 |
|
Right-of-use assets |
|
|
57,343 |
|
|
|
61,299 |
|
Deposits and other assets |
|
|
24,300 |
|
|
|
23,916 |
|
Deferred tax assets, net |
|
|
757,573 |
|
|
|
188,152 |
|
Total assets |
|
$ |
4,762,528 |
|
|
$ |
2,410,272 |
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable, accrued expenses, and operating lease liabilities |
|
$ |
43,090 |
|
|
$ |
42,976 |
|
Accrued compensation and employee benefits |
|
|
50,045 |
|
|
|
53,716 |
|
Accrued interest |
|
|
1,493 |
|
|
|
2,829 |
|
Current portion of long-term debt, net |
|
|
483 |
|
|
|
454 |
|
Deferred revenue and advance payments |
|
|
228,162 |
|
|
|
217,428 |
|
Total current liabilities |
|
|
323,273 |
|
|
|
317,403 |
|
|
|
|
|
|
|
|
||
Long-term debt, net |
|
|
2,182,108 |
|
|
|
2,378,560 |
|
Deferred revenue and advance payments |
|
|
8,524 |
|
|
|
12,763 |
|
Operating lease liabilities |
|
|
61,086 |
|
|
|
67,344 |
|
Other long-term liabilities |
|
|
22,208 |
|
|
|
17,124 |
|
Deferred tax liabilities |
|
|
357 |
|
|
|
198 |
|
Total liabilities |
|
|
2,597,556 |
|
|
|
2,793,392 |
|
|
|
|
|
|
|
|
||
Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
||
Preferred stock undesignated, |
|
|
0 |
|
|
|
0 |
|
Class A common stock, |
|
|
24 |
|
|
|
18 |
|
Class B convertible common stock, |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
3,957,728 |
|
|
|
1,841,120 |
|
|
|
|
(782,104 |
) |
|
|
(782,104 |
) |
Accumulated other comprehensive loss |
|
|
(11,444 |
) |
|
|
(13,801 |
) |
Accumulated deficit |
|
|
(999,234 |
) |
|
|
(1,428,355 |
) |
Total stockholders’ equity (deficit) |
|
|
2,164,972 |
|
|
|
(383,120 |
) |
Total liabilities and stockholders’ equity (deficit) |
|
$ |
4,762,528 |
|
|
$ |
2,410,272 |
|
* Derived from audited financial statements. |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) |
||||||||
|
|
Twelve Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2023 |
|
|
2022* |
|
||
|
|
(unaudited) |
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
12,712 |
|
|
$ |
3,211 |
|
Net cash used in investing activities |
|
|
(1,905,237 |
) |
|
|
(278,590 |
) |
Net cash provided by financing activities |
|
|
1,889,886 |
|
|
|
265,188 |
|
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
444 |
|
|
|
(3,375 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(2,195 |
) |
|
|
(13,566 |
) |
Cash, cash equivalents, and restricted cash, beginning of year |
|
|
50,868 |
|
|
|
64,434 |
|
Cash, cash equivalents, and restricted cash, end of year |
|
$ |
48,673 |
|
|
$ |
50,868 |
|
* Derived from audited financial statements. |
REVENUE AND COST OF REVENUE DETAIL (in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022* |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product licenses and subscription services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product licenses |
|
$ |
18,372 |
|
|
$ |
27,570 |
|
|
$ |
75,351 |
|
|
$ |
86,498 |
|
Subscription services |
|
|
21,517 |
|
|
|
17,470 |
|
|
|
81,179 |
|
|
|
60,746 |
|
Total product licenses and subscription services |
|
|
39,889 |
|
|
|
45,040 |
|
|
|
156,530 |
|
|
|
147,244 |
|
Product support |
|
|
65,466 |
|
|
|
66,839 |
|
|
|
263,888 |
|
|
|
266,521 |
|
Other services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consulting |
|
|
18,082 |
|
|
|
19,591 |
|
|
|
72,075 |
|
|
|
80,844 |
|
Education |
|
|
1,047 |
|
|
|
1,084 |
|
|
|
3,768 |
|
|
|
4,655 |
|
Total other services |
|
|
19,129 |
|
|
|
20,675 |
|
|
|
75,843 |
|
|
|
85,499 |
|
Total revenues |
|
|
124,484 |
|
|
|
132,554 |
|
|
|
496,261 |
|
|
|
499,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product licenses and subscription services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product licenses |
|
|
609 |
|
|
|
358 |
|
|
|
1,929 |
|
|
|
1,672 |
|
Subscription services |
|
|
8,676 |
|
|
|
7,467 |
|
|
|
31,776 |
|
|
|
24,770 |
|
Total product licenses and subscription services |
|
|
9,285 |
|
|
|
7,825 |
|
|
|
33,705 |
|
|
|
26,442 |
|
Product support |
|
|
5,319 |
|
|
|
5,722 |
|
|
|
22,434 |
|
|
|
21,264 |
|
Other services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consulting |
|
|
12,985 |
|
|
|
12,416 |
|
|
|
51,311 |
|
|
|
50,820 |
|
Education |
|
|
632 |
|
|
|
760 |
|
|
|
2,494 |
|
|
|
4,463 |
|
Total other services |
|
|
13,617 |
|
|
|
13,176 |
|
|
|
53,805 |
|
|
|
55,283 |
|
Total cost of revenues |
|
|
28,221 |
|
|
|
26,723 |
|
|
|
109,944 |
|
|
|
102,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
$ |
96,263 |
|
|
$ |
105,831 |
|
|
$ |
386,317 |
|
|
$ |
396,275 |
|
* Derived from audited financial statements. |
DIGITAL ASSETS – ADDITIONAL INFORMATION ROLLFORWARD OF BITCOIN HOLDINGS (unaudited) |
||||||||||||||||||||||
|
|
Source of Capital Used to Purchase Bitcoin |
|
Digital Asset Original Cost Basis
|
|
|
Digital Asset Impairment Losses
|
|
|
Digital Asset Carrying Value
|
|
|
Approximate Number of
|
|
|
Approximate Average Purchase or Sale Price Per Bitcoin |
|
|||||
Balance at |
|
|
|
$ |
3,751,529 |
|
|
$ |
(901,319 |
) |
|
$ |
2,850,210 |
|
|
|
124,391 |
|
|
$ |
30,159 |
|
Digital asset purchases |
|
(a) |
|
|
215,500 |
|
|
|
|
|
|
215,500 |
|
|
|
4,827 |
|
|
|
44,645 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(170,091 |
) |
|
|
(170,091 |
) |
|
|
|
|
|
|
|||
Balance at |
|
|
|
$ |
3,967,029 |
|
|
$ |
(1,071,410 |
) |
|
$ |
2,895,619 |
|
|
|
129,218 |
|
|
$ |
30,700 |
|
Digital asset purchases |
|
(b) |
|
|
10,000 |
|
|
|
|
|
|
10,000 |
|
|
|
481 |
|
|
|
20,790 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(917,838 |
) |
|
|
(917,838 |
) |
|
|
|
|
|
|
|||
Balance at |
|
|
|
$ |
3,977,029 |
|
|
$ |
(1,989,248 |
) |
|
$ |
1,987,781 |
|
|
|
129,699 |
|
|
$ |
30,664 |
|
Digital asset purchases |
|
(c) |
|
|
5,978 |
|
|
|
|
|
|
5,978 |
|
|
|
301 |
|
|
|
19,860 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(727 |
) |
|
|
(727 |
) |
|
|
|
|
|
|
|||
Balance at |
|
|
|
$ |
3,983,007 |
|
|
$ |
(1,989,975 |
) |
|
$ |
1,993,032 |
|
|
|
130,000 |
|
|
$ |
30,639 |
|
Digital asset purchases |
|
(d) |
|
|
56,443 |
|
|
|
|
|
|
56,443 |
|
|
|
3,204 |
|
|
|
17,616 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(198,557 |
) |
|
|
(198,557 |
) |
|
|
|
|
|
|
|||
Digital asset sales ** |
|
|
|
|
(46,260 |
) |
|
|
35,370 |
|
|
|
(10,890 |
) |
|
|
(704 |
) |
|
|
16,786 |
|
Balance at |
|
|
|
$ |
3,993,190 |
|
|
$ |
(2,153,162 |
) |
|
$ |
1,840,028 |
|
|
|
132,500 |
|
|
$ |
30,137 |
|
Digital asset purchases |
|
(e) |
|
|
179,275 |
|
|
|
|
|
|
179,275 |
|
|
|
7,500 |
|
|
|
23,903 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(18,911 |
) |
|
|
(18,911 |
) |
|
|
|
|
|
|
|||
Balance at |
|
|
|
$ |
4,172,465 |
|
|
$ |
(2,172,073 |
) |
|
$ |
2,000,392 |
|
|
|
140,000 |
|
|
$ |
29,803 |
|
Digital asset purchases |
|
(f) |
|
|
347,003 |
|
|
|
|
|
|
347,003 |
|
|
|
12,333 |
|
|
|
28,136 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(24,143 |
) |
|
|
(24,143 |
) |
|
|
|
|
|
|
|||
Balance at |
|
|
|
$ |
4,519,468 |
|
|
$ |
(2,196,216 |
) |
|
$ |
2,323,252 |
|
|
|
152,333 |
|
|
$ |
29,668 |
|
Digital asset purchases |
|
(g) |
|
|
161,681 |
|
|
|
|
|
|
161,681 |
|
|
|
5,912 |
|
|
|
27,348 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(33,559 |
) |
|
|
(33,559 |
) |
|
|
|
|
|
|
|||
Balance at |
|
|
|
$ |
4,681,149 |
|
|
$ |
(2,229,775 |
) |
|
$ |
2,451,374 |
|
|
|
158,245 |
|
|
$ |
29,582 |
|
Digital asset purchases |
|
(h) |
|
|
1,214,340 |
|
|
|
|
|
|
1,214,340 |
|
|
|
30,905 |
|
|
|
39,293 |
|
|
Digital asset impairment losses |
|
|
|
|
|
|
|
(39,238 |
) |
|
|
(39,238 |
) |
|
|
|
|
|
|
|||
Balance at |
|
|
|
$ |
5,895,489 |
|
|
$ |
(2,269,013 |
) |
|
$ |
3,626,476 |
|
|
|
189,150 |
|
|
$ |
31,168 |
|
* |
|
** |
In the fourth quarter of 2022, |
|
|
(a) |
In the first quarter of 2022, |
(b) |
In the second quarter of 2022, |
(c) |
In the third quarter of 2022, |
(d) |
In the fourth quarter of 2022, |
(e) |
In the first quarter of 2023, |
(f) |
In the second quarter of 2023, |
(g) |
In the third quarter of 2023, |
(h) |
In the fourth quarter of 2023, |
Excess Cash refers to cash in excess of the minimum Cash Assets that |
DIGITAL ASSETS – ADDITIONAL INFORMATION MARKET VALUE OF BITCOIN HOLDINGS (unaudited) |
||||||||||||||||||||||||||||
|
|
Approximate Number of Bitcoins Held at End of Quarter * |
|
|
|
|
|
Market Value of Bitcoin Held at End of Quarter Using Lowest Market Price (in thousands) (b) |
|
|
|
|
|
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) |
|
|||||||
|
|
|
124,391 |
|
|
$ |
42,333.00 |
|
|
$ |
5,265,844 |
|
|
$ |
69,000.00 |
|
|
$ |
8,582,979 |
|
|
$ |
45,879.97 |
|
|
$ |
5,707,055 |
|
|
|
|
129,218 |
|
|
$ |
32,933.33 |
|
|
$ |
4,255,579 |
|
|
$ |
48,240.00 |
|
|
$ |
6,233,476 |
|
|
$ |
45,602.79 |
|
|
$ |
5,892,701 |
|
|
|
|
129,699 |
|
|
$ |
17,567.45 |
|
|
$ |
2,278,481 |
|
|
$ |
47,469.40 |
|
|
$ |
6,156,734 |
|
|
$ |
18,895.02 |
|
|
$ |
2,450,665 |
|
|
|
|
130,000 |
|
|
$ |
18,153.13 |
|
|
$ |
2,359,907 |
|
|
$ |
25,214.57 |
|
|
$ |
3,277,894 |
|
|
$ |
19,480.51 |
|
|
$ |
2,532,466 |
|
|
|
|
132,500 |
|
|
$ |
15,460.00 |
|
|
$ |
2,048,450 |
|
|
$ |
21,478.80 |
|
|
$ |
2,845,941 |
|
|
$ |
16,556.32 |
|
|
$ |
2,193,712 |
|
|
|
|
140,000 |
|
|
$ |
16,490.00 |
|
|
$ |
2,308,600 |
|
|
$ |
29,190.04 |
|
|
$ |
4,086,606 |
|
|
$ |
28,468.44 |
|
|
$ |
3,985,582 |
|
|
|
|
152,333 |
|
|
$ |
24,750.00 |
|
|
$ |
3,770,242 |
|
|
$ |
31,443.67 |
|
|
$ |
4,789,909 |
|
|
$ |
30,361.51 |
|
|
$ |
4,625,060 |
|
|
|
|
158,245 |
|
|
$ |
24,900.00 |
|
|
$ |
3,940,301 |
|
|
$ |
31,862.21 |
|
|
$ |
5,042,035 |
|
|
$ |
27,030.47 |
|
|
$ |
4,277,437 |
|
|
|
|
189,150 |
|
|
$ |
26,521.32 |
|
|
$ |
5,016,508 |
|
|
$ |
45,000.00 |
|
|
$ |
8,511,750 |
|
|
$ |
42,531.41 |
|
|
$ |
8,044,816 |
|
* |
|
|
|
(a) |
The " |
(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 |
(c) |
The " |
(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 |
(e) |
The "Market Price Per Bitcoin at End of Quarter" represents the market price of one bitcoin on the Coinbase exchange at |
(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 |
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 |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES LOSS FROM OPERATIONS (in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Reconciliation of non-GAAP loss from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from operations |
|
$ |
(42,785 |
) |
|
$ |
(193,717 |
) |
|
$ |
(115,047 |
) |
|
$ |
(1,275,742 |
) |
Share-based compensation expense |
|
|
19,716 |
|
|
|
17,032 |
|
|
|
69,571 |
|
|
|
63,619 |
|
Non-GAAP loss from operations |
|
$ |
(23,069 |
) |
|
$ |
(176,685 |
) |
|
$ |
(45,476 |
) |
|
$ |
(1,212,123 |
) |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE (in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Reconciliation of non-GAAP net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
89,126 |
|
|
$ |
(249,669 |
) |
|
$ |
429,121 |
|
|
$ |
(1,469,797 |
) |
Share-based compensation expense |
|
|
19,716 |
|
|
|
17,032 |
|
|
|
69,571 |
|
|
|
63,619 |
|
Interest expense arising from amortization of debt issuance costs |
|
|
2,209 |
|
|
|
2,204 |
|
|
|
8,808 |
|
|
|
8,694 |
|
Gain on debt extinguishment |
|
|
0 |
|
|
|
0 |
|
|
|
(44,686 |
) |
|
|
0 |
|
Income tax effects (1) |
|
|
(8,600 |
) |
|
|
(3,064 |
) |
|
|
(6,062 |
) |
|
|
(13,250 |
) |
Non-GAAP net income (loss) |
|
$ |
102,451 |
|
|
$ |
(233,497 |
) |
|
$ |
456,752 |
|
|
$ |
(1,410,734 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of non-GAAP diluted earnings (loss) per share (2): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings (loss) per share |
|
$ |
4.96 |
|
|
$ |
(21.93 |
) |
|
$ |
26.42 |
|
|
$ |
(129.83 |
) |
Share-based compensation expense (per diluted share) |
|
|
1.07 |
|
|
|
1.50 |
|
|
|
4.20 |
|
|
|
5.62 |
|
Interest expense arising from amortization of debt issuance costs (per diluted share) (3) |
|
|
0.02 |
|
|
|
0.19 |
|
|
|
0.10 |
|
|
|
0.77 |
|
Gain on debt extinguishment (per diluted share) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(2.70 |
) |
|
|
0.00 |
|
Income tax effects (per diluted share) (3) |
|
|
(0.43 |
) |
|
|
(0.27 |
) |
|
|
(0.24 |
) |
|
|
(1.17 |
) |
Non-GAAP diluted earnings (loss) per share |
|
$ |
5.62 |
|
|
$ |
(20.51 |
) |
|
$ |
27.78 |
|
|
$ |
(124.61 |
) |
(1) |
Income tax effects reflect the net tax effects of share-based compensation expense, 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 and twelve months ended |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES CONSTANT CURRENCY (in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
(unaudited) |
|
|||||||||||||||||||||
|
|
GAAP |
|
|
Foreign
|
|
|
Non-GAAP
|
|
|
GAAP |
|
|
GAAP %
|
|
|
Non-GAAP
|
|
||||||
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product licenses |
|
$ |
18,372 |
|
|
$ |
427 |
|
|
$ |
17,945 |
|
|
$ |
27,570 |
|
|
|
-33.4 |
% |
|
|
-34.9 |
% |
Subscription services |
|
|
21,517 |
|
|
|
303 |
|
|
|
21,214 |
|
|
|
17,470 |
|
|
|
23.2 |
% |
|
|
21.4 |
% |
Total product licenses and subscription services |
|
|
39,889 |
|
|
|
730 |
|
|
|
39,159 |
|
|
|
45,040 |
|
|
|
-11.4 |
% |
|
|
-13.1 |
% |
Product support |
|
|
65,466 |
|
|
|
1,137 |
|
|
|
64,329 |
|
|
|
66,839 |
|
|
|
-2.1 |
% |
|
|
-3.8 |
% |
Other services |
|
|
19,129 |
|
|
|
388 |
|
|
|
18,741 |
|
|
|
20,675 |
|
|
|
-7.5 |
% |
|
|
-9.4 |
% |
Total revenues |
|
|
124,484 |
|
|
|
2,255 |
|
|
|
122,229 |
|
|
|
132,554 |
|
|
|
-6.1 |
% |
|
|
-7.8 |
% |
|
|
Twelve Months Ended |
|
|||||||||||||||||||||
|
|
(unaudited) |
|
|||||||||||||||||||||
|
|
GAAP |
|
|
Foreign
|
|
|
Non-GAAP
|
|
|
GAAP |
|
|
GAAP %
|
|
|
Non-GAAP
|
|
||||||
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product licenses |
|
$ |
75,351 |
|
|
$ |
300 |
|
|
$ |
75,051 |
|
|
$ |
86,498 |
|
|
|
-12.9 |
% |
|
|
-13.2 |
% |
Subscription services |
|
|
81,179 |
|
|
|
296 |
|
|
|
80,883 |
|
|
|
60,746 |
|
|
|
33.6 |
% |
|
|
33.1 |
% |
Total product licenses and subscription services |
|
|
156,530 |
|
|
|
596 |
|
|
|
155,934 |
|
|
|
147,244 |
|
|
|
6.3 |
% |
|
|
5.9 |
% |
Product support |
|
|
263,888 |
|
|
|
1,514 |
|
|
|
262,374 |
|
|
|
266,521 |
|
|
|
-1.0 |
% |
|
|
-1.6 |
% |
Other services |
|
|
75,843 |
|
|
|
186 |
|
|
|
75,657 |
|
|
|
85,499 |
|
|
|
-11.3 |
% |
|
|
-11.5 |
% |
Total revenues |
|
|
496,261 |
|
|
|
2,296 |
|
|
|
493,965 |
|
|
|
499,264 |
|
|
|
-0.6 |
% |
|
|
-1.1 |
% |
(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. Beginning in the third quarter of 2023, the term “international” refers to operations outside of |
(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. |
DEFERRED REVENUE DETAIL (in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
2023 |
|
|
2022* |
|
||
|
|
(unaudited) |
|
|
|
|
||
Current: |
|
|
|
|
|
|
||
Deferred product licenses revenue |
|
$ |
3,579 |
|
|
$ |
2,825 |
|
Deferred subscription services revenue |
|
|
65,512 |
|
|
|
51,861 |
|
Deferred product support revenue |
|
|
152,012 |
|
|
|
155,366 |
|
Deferred other services revenue |
|
|
7,059 |
|
|
|
7,376 |
|
Total current deferred revenue and advance payments |
|
$ |
228,162 |
|
|
$ |
217,428 |
|
|
|
|
|
|
|
|
||
Non-current: |
|
|
|
|
|
|
||
Deferred product licenses revenue |
|
$ |
0 |
|
|
$ |
2,742 |
|
Deferred subscription services revenue |
|
|
3,097 |
|
|
|
3,030 |
|
Deferred product support revenue |
|
|
4,984 |
|
|
|
6,387 |
|
Deferred other services revenue |
|
|
443 |
|
|
|
604 |
|
Total non-current deferred revenue and advance payments |
|
$ |
8,524 |
|
|
$ |
12,763 |
|
|
|
|
|
|
|
|
||
Total current and non-current: |
|
|
|
|
|
|
||
Deferred product licenses revenue |
|
$ |
3,579 |
|
|
$ |
5,567 |
|
Deferred subscription services revenue |
|
|
68,609 |
|
|
|
54,891 |
|
Deferred product support revenue |
|
|
156,996 |
|
|
|
161,753 |
|
Deferred other services revenue |
|
|
7,502 |
|
|
|
7,980 |
|
Total current and non-current deferred revenue and advance payments |
|
$ |
236,686 |
|
|
$ |
230,191 |
|
* Derived from audited financial statements. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206684972/en/
Investor Relations
ir@microstrategy.com
Source: