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MicroStrategy(MSTR) - 2024 Q3 - Quarterly Results
MSTRMicroStrategy(MSTR)2024-10-30 20:02

Bitcoin Holdings and Investments - MicroStrategy holds 252,220 BTC with a YTD BTC Yield of 17.8%[1][5] - Q3 2024 saw an 11% increase in bitcoin holdings and a reduction in annualized interest expense by 24million[3]−Thecarryingvalueofdigitalassets(252,220bitcoins)was24 million[3] - The carrying value of digital assets (252,220 bitcoins) was 6.851 billion as of September 30, 2024[6] - MicroStrategy's Bitcoin holdings increased to 226,331 BTC as of June 30, 2024, with a carrying value of 5.69billion[40]−Thecompanypurchased25,889BTCinQ32024atanaveragepriceof5.69 billion[40] - The company purchased 25,889 BTC in Q3 2024 at an average price of 60,839 per Bitcoin, using 1.105billionfromstocksalesand1.105 billion from stock sales and 458.2 million from convertible notes[40] - Total Bitcoin impairment losses reached 2.64billionasofJune30,2024[40]−ThemarketvalueofBitcoinholdingsattheendofQ22024was2.64 billion as of June 30, 2024[40] - The market value of Bitcoin holdings at the end of Q2 2024 was 14.02 billion, based on the ending price of 61,926.69perBitcoin[41]−MicroStrategy′sBitcoinpurchasesin2024totaled63,070BTC,acquiredatanaveragepriceof61,926.69 per Bitcoin[41] - MicroStrategy's Bitcoin purchases in 2024 totaled 63,070 BTC, acquired at an average price of 50,817 per Bitcoin[40] - The highest market price per Bitcoin during Q2 2024 was 72,777,resultinginapotentialmarketvalueof72,777, resulting in a potential market value of 16.47 billion for the company's holdings[41] - The company's Bitcoin holdings have grown by 93,831 BTC (70.8%) since December 31, 2022[40] - MicroStrategy's Bitcoin holdings represent a total investment of 8.33billionasofJune30,2024[40]−Thecompany′sBitcoinpurchasesin2024werefundedprimarilythroughconvertiblenotesandstocksales,totalingover8.33 billion as of June 30, 2024[40] - The company's Bitcoin purchases in 2024 were funded primarily through convertible notes and stock sales, totaling over 3.17 billion[40] Financial Performance - Total revenues for Q3 2024 were 116.1million,a10.3116.1 million, a 10.3% decrease year-over-year[11] - Gross profit for Q3 2024 was 81.7 million, representing a 70.4% gross margin[12] - Operating expenses increased by 301.6% year-over-year to 514.3million,including514.3 million, including 412.1 million in impairment losses on digital assets[13] - Net loss for Q3 2024 was 340.2million,or340.2 million, or 1.72 per share on a diluted basis[14] - Total revenues for the nine months ended September 30, 2024, were 342.759million,comparedto342.759 million, compared to 371.777 million for the same period in 2023[34] - Digital asset impairment losses for the nine months ended September 30, 2024, were 783.807million,comparedto783.807 million, compared to 76.613 million for the same period in 2023[34] - Net loss for the nine months ended September 30, 2024, was 495.851million,comparedtoanetincomeof495.851 million, compared to a net income of 339.995 million for the same period in 2023[34] - Net loss for Q3 2024 was 340.2million,comparedtoanetlossof340.2 million, compared to a net loss of 143.4 million in Q3 2023[50] - Non-GAAP net loss for Q3 2024 was 307.8million,comparedtoanon−GAAPnetlossof307.8 million, compared to a non-GAAP net loss of 127.7 million in Q3 2023[50] - Total revenues for Q3 2024 decreased by 10.3% YoY to 116.1million,withaconstantcurrencydecreaseof10.5116.1 million, with a constant currency decrease of 10.5%[53] - Subscription services revenue increased by 32.5% YoY to 27.8 million in Q3 2024, with a constant currency increase of 32.0%[53] - Product licenses revenue decreased by 53.9% YoY to 11.1millioninQ32024,withaconstantcurrencydecreaseof53.211.1 million in Q3 2024, with a constant currency decrease of 53.2%[53] - Total deferred revenue as of September 30, 2024, was 190.7 million, down from 236.7millionattheendof2023[57]−SoftwarebusinesssegmentrevenueforQ32024was236.7 million at the end of 2023[57] - Software business segment revenue for Q3 2024 was 116.1 million, down from 129.5millioninQ32023[58]−GrossprofitforQ32024was129.5 million in Q3 2023[58] - Gross profit for Q3 2024 was 81.7 million, compared to 102.8millioninQ32023[58]−OperatinglossforQ32024was102.8 million in Q3 2023[58] - Operating loss for Q3 2024 was 432.6 million, compared to an operating loss of 25.2millioninQ32023[58]−Share−basedcompensationexpenseforQ32024was25.2 million in Q3 2023[58] - Share-based compensation expense for Q3 2024 was 19.4 million, up from 16.8millioninQ32023[50]−TotalrevenuesfortheninemonthsendedSeptember30,2024,were16.8 million in Q3 2023[50] - Total revenues for the nine months ended September 30, 2024, were 342.759 million, compared to 371.777millionforthesameperiodin2023[59]−GrossprofitfortheninemonthsendedSeptember30,2024,was371.777 million for the same period in 2023[59] - Gross profit for the nine months ended September 30, 2024, was 247.460 million, down from 290.054millioninthesameperiodin2023[59]−TotaloperatingexpensesfortheninemonthsendedSeptember30,2024,were290.054 million in the same period in 2023[59] - Total operating expenses for the nine months ended September 30, 2024, were 1.084 billion, significantly higher than 362.316millioninthesameperiodin2023[59]−LossfromoperationsfortheninemonthsendedSeptember30,2024,was362.316 million in the same period in 2023[59] - Loss from operations for the nine months ended September 30, 2024, was 836.558 million, compared to a loss of 72.262millioninthesameperiodin2023[59]CapitalandDebtManagement−Thecompanyannounceda72.262 million in the same period in 2023[59] Capital and Debt Management - The company announced a 42 billion capital plan, including 21billioninequityand21 billion in equity and 21 billion in fixed-income securities[1][2] - Long-term debt increased to 4.212billionasofSeptember30,2024,from4.212 billion as of September 30, 2024, from 2.182 billion as of December 31, 2023[37] - Net cash used in investing activities for the nine months ended September 30, 2024, was 4.011billion,comparedto4.011 billion, compared to 690.550 million for the same period in 2023[39] - Net cash provided by financing activities for the nine months ended September 30, 2024, was 4.046billion,comparedto4.046 billion, compared to 676.025 million for the same period in 2023[39] - Total liabilities increased to 4.570billionasofSeptember30,2024,from4.570 billion as of September 30, 2024, from 2.598 billion as of December 31, 2023[37] - Total stockholders' equity increased to 3.774billionasofSeptember30,2024,from3.774 billion as of September 30, 2024, from 2.165 billion as of December 31, 2023[38] - Cash, cash equivalents, and restricted cash decreased to 48.205millionasofSeptember30,2024,from48.205 million as of September 30, 2024, from 48.673 million at the beginning of the period[39] Corporate Actions and Strategic Updates - The company revised its long-term BTC Yield target to 6% to 10% for 2025 through 2027[5] - MicroStrategy completed a 10-for-1 stock split on August 7, 2024[4] - MicroStrategy introduced a new Corporate & Other category in 2024, which includes impairment charges and other third-party costs related to its digital asset holdings[59] Non-GAAP Metrics - MicroStrategy's non-GAAP loss from operations for Q3 2024 was 413.2million,comparedto413.2 million, compared to 8.4 million in Q3 2023[49] - Non-GAAP net loss for Q3 2024 was 307.8million,comparedtoanon−GAAPnetlossof307.8 million, compared to a non-GAAP net loss of 127.7 million in Q3 2023[50]