MicroStrategy Announces First Quarter 2024 Financial Results; Now Holds 214,400 BTC
-
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 ofApril 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
“As the world’s first
“In the first quarter we raised over
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 ofDecember 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 ofMarch 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: InMarch 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 onMarch 15 andSeptember 15 of each year, beginning onSeptember 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 onMarch 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 onSeptember 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 .
InMarch 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 onMarch 15 andSeptember 15 of each year, beginning onSeptember 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 onMarch 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 onSeptember 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 ofMarch 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
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 |
|
|||||
|
|
|
|
|||||
|
|
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. |
CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) |
||||||||
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||
|
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|
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|
||
|
|
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 |
|
|
|
0 |
|
Class A common stock, |
|
|
24 |
|
|
|
24 |
|
Class B convertible common stock, |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
4,247,704 |
|
|
|
3,957,728 |
|
|
|
|
(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. |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) |
||||||||
|
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|
|||||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
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 |
|
REVENUE AND COST OF REVENUE DETAIL (in thousands) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
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 |
|
DIGITAL ASSETS – ADDITIONAL INFORMATION ROLLFORWARD OF BITCOIN HOLDINGS (unaudited) |
||||||||||||||||||||||
|
|
Source of Capital Used to Purchase Bitcoin |
|
Digital Asset
|
|
|
Digital Asset Impairment Losses
|
|
|
Digital Asset
|
|
|
Approximate Number of Bitcoins Held * |
|
|
Approximate Average Purchase Price Per Bitcoin |
|
|||||
Balance at |
|
|
|
$ |
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 |
|
|
|
$ |
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 |
|
|
|
$ |
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 |
|
|
|
$ |
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 |
|
|
|
$ |
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 |
|
|
|
$ |
7,534,798 |
|
|
$ |
(2,460,646 |
) |
|
$ |
5,074,152 |
|
|
|
214,278 |
|
|
$ |
35,164 |
|
* |
|
|
|
|
|
(a) |
|
In the first quarter of 2023, |
(b) |
|
In the second quarter of 2023, |
(c) |
|
In the third quarter of 2023, |
(d) |
|
In the fourth quarter of 2023, |
(e) |
|
In the first quarter of 2024, |
Excess Cash refers to cash in excess of the minimum Cash Assets that |
DIGITAL ASSETS – ADDITIONAL INFORMATION MARKET VALUE OF BITCOIN HOLDINGS (unaudited) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Approximate
|
|
|
Lowest
|
|
|
Market Value
|
|
|
Highest
Market Price
|
|
|
Market Value
|
|
|
Market Price
|
|
|
Market Value
|
|
|||||||
|
|
|
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 |
|
|
|
|
214,278 |
|
|
$ |
38,501.00 |
|
|
$ |
8,249,917 |
|
|
$ |
73,835.57 |
|
|
$ |
15,821,338 |
|
|
$ |
71,028.14 |
|
|
$ |
15,219,768 |
|
* |
|
|
|
|
|
(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 |
|
|||||
|
|
|
|
|||||
|
|
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 |
) |
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 |
|
|||||
|
|
|
|
|||||
|
|
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 |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES CONSTANT CURRENCY (in thousands) |
||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
|
|
(unaudited) |
|
|||||||||||||||||||||
|
|
GAAP |
|
|
Foreign
|
|
|
Non-GAAP
|
|
|
GAAP |
|
|
GAAP %
|
|
|
Non-GAAP
|
|
||||||
|
|
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 |
|
|
|
(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) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
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. |
SEGMENT INFORMATION (in thousands, unaudited) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Three Months Ended |
|
|
Three Months Ended |
|
||||||||||||||||||
|
|
Software
|
|
|
Corporate &
|
|
|
Total
|
|
|
Software
|
|
|
Corporate &
|
|
|
Total
|
|
||||||
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 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240429608423/en/
Investor Relations
ir@microstrategy.com
Source: