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MSTR · Strategy

50 filings

10-Q

MSTR 10-Q Quarterly Reports

Strategy - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K265

MSTR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 265 current reports (8-K) between 2016 and 2026.

  1. FY2018 annual report10-K · Feb ’19Feb ’19
  2. Leadership change8-K · Nov ’21Nov ’21
  3. Leadership change8-K · Dec ’25Dec ’25
  1. 2027-Q1

    Strategy Quarterly Report for Q1 Ended Sep 30, 2026

    Strategy Inc reported a net income of $19.53 billion for the three months ended September 30, 2026, driven by a $20.91 billion gain on digital assets, compared with a net loss of $1.23 billion for the nine months, which reflected a $1.86 billion loss on digital assets. Total revenues were $125.4 million for the quarter and $372.1 million for the nine months, with all revenue generated by the Software segment. Bitcoin holdings rose to approximately 847,666 bitcoins at September 30, 2026, carried at a fair value of $70.82 billion against a cost basis of $63.95 billion. The company reported cash and cash equivalents of $2.50 billion, short-term investments of $3.40 billion, and total long-term debt of $6.72 billion, with convertible notes outstanding and $1.50 billion of 2029 Convertible Notes repurchased for $1.38 billion in May 2026. Preferred stock is a major capital obligation: $13.06 billion in mezzanine equity, with cash preferred dividends paid of $1.05 billion for the nine months. The company funded bitcoin purchases primarily through class A common stock and STRC preferred stock ATM sales, and it established a USD Reserve policy requiring at least 12 months of expected preferred dividends and interest. The filing describes a Digital Credit Capital Framework, including STRC preferred stock repurchases of 13.93 million shares for $1.34 billion, and subsequent events including a Dividend Amendment moving several preferred series to daily dividend payments. The company also disclosed that its bitcoin holdings are its primary treasury reserve asset, and that its software business is not expected to generate sufficient cash flow to cover its obligations over the next twelve months.

    Nov 2, 2026
  2. 2026-Q3

    Strategy Quarterly Report for Q3 Ended Jun 30, 2026

    Strategy Inc reported a net loss of $8.22 billion for the three months ended June 30, 2026 and a net loss of $20.76 billion for the six months, compared with net income of $10.02 billion and $5.80 billion in the prior-year periods. The swing is driven by an unrealized loss on digital assets of $8.32 billion in the quarter and $22.77 billion year to date, reflecting a decline in bitcoin's market price. Total revenues were $122.4 million for the quarter, up from $114.5 million, and the Software segment remains the only source of revenue. Bitcoin holdings rose to approximately 846,000 bitcoins at June 30, 2026, with a fair value of $49.67 billion against a cost basis of $63.94 billion, and the company recorded a full valuation allowance on its domestic net deferred tax assets. The balance sheet shifted meaningfully during the period. Preferred stock in mezzanine equity rose to $14.44 billion, driven largely by STRC Stock sales under the ATM program, and preferred dividends paid for the six months totaled $629.2 million. The company repurchased $1.50 billion principal of its 2029 Convertible Notes for $1.38 billion, recognizing a gain on extinguishment of $113.9 million, and total debt principal stood at about $6.75 billion. The company established a USD Reserve of $2.40 billion at June 30, 2026, which it states covers about 16 months of expected annual preferred dividends and interest of approximately $1.76 billion. On June 29, 2026, the board authorized a Digital Credit Capital Framework, including repurchase programs of up to $1.0 billion each for preferred stock and class A common stock and a BTC Monetization Program. Subsequent to June 30, 2026, the company sold approximately 2,225 bitcoins for gross proceeds of about $135.2 million and repurchased 288,930 shares of STRC Stock for $25.0 million. As of July 24, 2026, it held approximately 843,775 bitcoins with a market value of $54.14 billion. The filing states that the company does not expect its software operations to generate sufficient cash to meet its short-term or long-term liquidity needs, so it depends on the USD Reserve, bitcoin sales, and ATM issuances. It also reports a new Bitcoin reportable segment, effective the second quarter of 2026, with prior periods recast.

    Aug 3, 2026
  3. 2026-Q3

    Strategy Quarterly Report for Q3 Ended Mar 31, 2026

    Strategy Inc reported a net loss of $12.54 billion for the quarter ended March 31, 2026, compared with a net loss of $4.22 billion a year earlier. The loss was driven almost entirely by an unrealized loss on digital assets of $14.46 billion, partly offset by a $1.92 billion income tax benefit. Revenues rose to $124.3 million from $111.1 million, with subscription services up to $58.9 million from $37.1 million while product support declined. Bitcoin holdings grew to 762,099 bitcoins at March 31, 2026 (cost basis $57.69 billion, fair value $51.65 billion), and as of April 26, 2026 the company held approximately 818,334 bitcoins with an aggregate market value of $64.04 billion. Funding came mainly from equity. The company raised $7.36 billion net through at-the-market offerings, including $5.29 billion from class A common stock and $2.06 billion from STRC Stock, and used it to buy $7.25 billion of bitcoin. Preferred dividends paid rose to $229.5 million, and dividends on preferred stock were $229.5 million for the quarter. Total debt principal was about $8.25 billion, and cash and cash equivalents were $2.21 billion, of which $2.14 billion was held in the USD Reserve. The filing states the software business is not expected to generate enough cash to cover liquidity needs, so the company relies on the USD Reserve, bitcoin sales, equity and debt financing. The filing also records a deferred tax valuation allowance of $2.23 billion on domestic net deferred tax assets, and it discloses that the company may sell bitcoin if other liquidity sources are insufficient. Stockholders' equity declined to $36.65 billion from $44.12 billion, and the preferred stock in mezzanine equity increased to $8.98 billion.

    May 6, 2026
  4. 2025-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2025

    Strategy Inc (filed as Strategy Inc; previously MicroStrategy Incorporated) reported net income of $2.79 billion for the three months ended September 30, 2025 and $8.59 billion for the nine months, driven almost entirely by a $3.89 billion and $12.03 billion unrealized gain on digital assets, respectively. Operating results from the software business were modest: total revenues were $128.7 million for the quarter (up from $116.1 million) and $354.2 million for the nine months (up from $342.8 million), while product support revenue declined. Following adoption of ASU 2023-08 on January 1, 2025, bitcoin is carried at fair value, so the balance sheet shows digital assets of $73.21 billion against 640,031 bitcoins held at September 30, 2025, compared with $23.91 billion at year-end 2024. The balance sheet also shows substantial growth in capital structure. Long-term debt, net, was $8.17 billion, mezzanine equity (perpetual preferred stock: STRF, STRC, STRK and STRD) was $5.79 billion, and deferred tax liabilities rose to $6.95 billion, reflecting the tax effect of the bitcoin gain. The company raised $5.09 billion in net proceeds from capital markets activity in the third quarter, and dividends paid on preferred stock totaled $139.8 million for the quarter. The company reports that it no longer expects to be subject to the 15% CAMT due to unrealized bitcoin gains, following Treasury interim guidance issued September 30, 2025. Investors should note that results are highly sensitive to bitcoin's market price, the company's preferred stock dividend obligations are recurring and cash-based, and its reliance on capital markets to fund both dividends and bitcoin purchases continues. S&P Global Ratings assigned a corporate credit rating of B- on October 27, 2025, after the period end, and the filing notes that a Delaware class action (Dodge) challenges the STRK amendment.

    Nov 3, 2025
  5. 2025-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2025

    Strategy Inc (formerly MicroStrategy Incorporated, filed as MicroStrategy Incorporated) reported its 10-Q for the quarter ended June 30, 2025. The company's results were dominated by fair-value accounting for its bitcoin holdings following its January 1, 2025 adoption of ASU 2023-08. Net income for the three months ended June 30, 2025 was $10.02 billion, driven by a $14.05 billion unrealized gain on digital assets, while the six-month net income was $5.80 billion after an $8.14 billion unrealized gain for the period. Total revenues were $114.5 million for the quarter, down from $111.4 million a year earlier on a pure-revenue basis only modestly higher, with product licenses and product support revenues declining while subscription services grew 69.5% year over year. Digital assets rose to a carrying value of $64.36 billion, representing approximately 597,325 bitcoins held at June 30, 2025. The balance sheet shifted substantially toward bitcoin and capital raised through securities issuance. Long-term debt, net, increased to $8.16 billion, including the new 2030B Convertible Notes issued in February 2025, and total mezzanine equity from three perpetual preferred series (STRK, STRF, STRD) reached $2.89 billion. Deferred tax liabilities rose to $5.87 billion, primarily tied to the unrealized bitcoin gain. Operating cash flow was negative $37.3 million for the six months, while investing outflows of $14.46 billion were funded largely by $14.50 billion of net financing inflows, including $9.66 billion from common stock public offerings and $2.95 billion from preferred stock offerings. The filing also flags material risks for investors: potential exposure to the corporate alternative minimum tax beginning in 2026 if current rules are not amended, pending shareholder class and derivative lawsuits relating to the ASU 2023-08 impact and a Delaware action concerning the STRK amendment, and the company's statement that its enterprise analytics software business did not generate positive operating cash flow in the quarter. Subsequent to quarter end, the company disclosed purchases of approximately 31,466 bitcoins for $3.68 billion in July 2025 and a new STRC preferred stock offering that raised approximately $2.47 billion net.

    Aug 5, 2025
  6. 2025-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2025

    Strategy Inc (filed as MicroStrategy Incorporated) reported a first-quarter 2025 net loss of $4.22 billion, or $16.49 per diluted share, compared with a net loss of $53.1 million in the prior-year quarter. The loss was driven primarily by a $5.91 billion unrealized loss on digital assets, which reflects the company's adoption of ASU 2023-08 on January 1, 2025. Under that standard, bitcoin is now carried at fair value, so results from this quarter are not directly comparable to earlier periods. Total revenues were $111.1 million, down from $115.2 million, with subscription services revenue growing 61.6% while product support and product license revenues declined. The balance sheet grew substantially. Digital assets reached a carrying value of $43.55 billion, with approximately 528,185 bitcoins held as of March 31, 2025, and total debt rose to $8.14 billion net carrying value. The company funded bitcoin purchases of $7.66 billion in the quarter through common stock at-the-market sales, convertible notes including the 2030B notes, and two perpetual preferred stock offerings (8.00% Strike and 10.00% Strife). Subsequent to quarter end, the company held approximately 555,450 bitcoins as of May 2, 2025 and announced a plan to raise $84 billion in capital over the medium to long term. The filing states that the company does not expect its enterprise analytics software business to generate sufficient cash flow to cover obligations over the next twelve months, and it expects to rely on equity and debt financing, with bitcoin sales as a possible backstop. It also flags potential future exposure to the corporate alternative minimum tax tied to unrealized bitcoin gains.

    May 5, 2025
  7. 2024-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2024

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2024 reports a net loss of $340.2 million for the third quarter and $495.9 million for the nine months, driven primarily by digital asset impairment losses of $412.1 million and $783.8 million, respectively. Total revenues were $116.1 million for the quarter, down from $129.5 million a year earlier, and $342.8 million for the nine months, down from $371.8 million. The company describes itself as a Bitcoin treasury company and held approximately 252,220 bitcoins with a carrying value of $6.85 billion against a market value of $16.0 billion at the September 30, 2024 ending price, per the filing's table. The balance sheet shows total liabilities rising to $4.57 billion from $2.60 billion at year-end 2023, largely reflecting long-term debt of $4.21 billion after new convertible note issuances in 2024 (2030, 2031, 2032 and 2028 Convertible Notes) and the redemption of the 2028 Secured Notes. Cash and cash equivalents were $46.3 million. The company funded bitcoin purchases of $4.01 billion during the nine months through debt and at-the-market equity sales, with net cash used in operating activities of $35.7 million. The filing notes that the company will adopt ASU 2023-08 effective January 1, 2025, which will require bitcoin to be measured at fair value with gains and losses recognized in net income, and states that the company could become subject to the corporate alternative minimum tax beginning in 2026 under current proposed regulations. Subsequent to quarter-end, the company filed a prospectus for a new at-the-market equity program of up to $21 billion.

    Oct 31, 2024
  8. 2024-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2024

    MicroStrategy Incorporated (now Strategy Inc) reported a net loss of $102.6 million for the second quarter of 2024 and a net loss of $155.7 million for the six months ended June 30, 2024, compared with net income of $22.2 million and $483.4 million in the same periods of 2023. The results were driven mainly by digital asset impairment losses of $180.1 million in the quarter and $371.7 million year to date. Total revenues were $111.4 million for the quarter, down from $120.4 million, with product licenses down 40.2% and subscription services up 21.1%. The company held approximately 226,331 bitcoins at June 30, 2024, with a carrying value of $5.69 billion, reflecting cumulative impairments of $2.64 billion. Its digital assets accounted for most of its total assets of $7.05 billion. Debt rose sharply during the period. Total debt was $3.85 billion at June 30, 2024, up from $2.18 billion at December 31, 2023, following the issuance of 2030, 2031 and 2032 Convertible Notes. The 2025 Convertible Notes were converted or redeemed by July 15, 2024. Subsequent events include the company's purchase of approximately 169 bitcoins for $11.4 million, at least $275.5 million of digital asset impairment losses in the third quarter of 2024 on bitcoin held at June 30, a $2.0 billion at-the-market equity program filed August 1, 2024, and an announced 10-for-1 stock split with trading expected on a split-adjusted basis from August 8, 2024. The filing also notes that the company's bitcoin is concentrated in its holdings, and that bitcoin-related accounting under ASU 2023-08 is expected to materially change future earnings volatility. Under the Treasury Reserve Policy, bitcoin is the primary treasury reserve asset, and 50,610 bitcoins serve as collateral for the 6.125% 2028 Secured Notes.

    Aug 6, 2024
  9. 2024-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2024

    MicroStrategy Incorporated (now Strategy Inc) reported a first-quarter 2024 net loss of $53.1 million, or $(3.09) per share, compared with net income of $461.2 million in the first quarter of 2023. The swing was driven mainly by digital asset impairment losses of $191.6 million, which made up 66.3% of operating expenses. Total revenues were $115.2 million, down from $121.9 million, with product licenses down 25.7% and subscription services up 22.1%. The company held approximately 214,278 bitcoins at March 31, 2024, with a carrying value of $5.074 billion after cumulative impairments of $2.461 billion. Debt rose sharply during the quarter. The company issued $800.0 million of 0.625% convertible notes due 2030 and $603.8 million of 0.875% convertible notes due 2031, and it reported total long-term debt of $3.558 billion on the balance sheet. Total principal outstanding across debt instruments was $3.614 billion. The proceeds were used to buy bitcoin, and the 2028 Secured Notes remain collateralized by about 38,557 bitcoins. The filing also notes that the company expects to adopt ASU 2023-08 for fair-value accounting of crypto assets effective January 1, 2025, which would result in volatility in future earnings. It estimates that adopting early in 2024 would increase its beginning retained earnings by approximately $3.1 billion. Subsequent to quarter end, the company disclosed at least $24.9 million of additional impairment losses in the second quarter of 2024.

    May 1, 2024
  10. 2023-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2023

    MicroStrategy Incorporated's 10-Q for the quarter ended September 30, 2023 reports net income of $339,995 thousand for the nine months, compared with a net loss of $1,220,128 thousand in the prior-year period, but a net loss of $143,441 thousand for the three months. Total revenues were $129,462 thousand for the quarter (up from $125,360 thousand) and $371,777 thousand for the nine months (up from $366,710 thousand). Nine-month results were driven by a $403,876 thousand income tax benefit, largely from releasing part of a deferred tax valuation allowance tied to bitcoin impairments, and a $44,686 thousand gain on debt extinguishment from repaying the 2025 Secured Term Loan. Digital asset impairment losses were $33,559 thousand for the quarter and $76,613 thousand for the nine months, versus $1,088,656 thousand a year earlier. The company held approximately 158,245 bitcoins at September 30, 2023, with a carrying value of $2,451,374 thousand against a market value of $4,277,437 thousand at the ending market price of $27,030.47. Funding came mainly from at-the-market sales of class A common stock, which raised $823.9 million gross proceeds (net proceeds of $819.7 million per MD&A) in the nine months, and the company had $602.1 million of capacity remaining under its August 2023 sales agreement. Total debt principal was $2.210 billion, including $650.0 million of 2025 Convertible Notes, $1.05 billion of 2027 Convertible Notes, $500.0 million of 6.125% 2028 Secured Notes, and other secured debt. The filing also discloses a pending District of Columbia False Claims Act case naming the company and Chairman Michael Saylor, a patent suit by Daedalus Blue with trial set for January 8, 2024, and a Brazilian procurement matter for which the company has accrued a minimum loss of $1.2 million.

    Nov 1, 2023
  11. 2023-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2023

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2023 shows net income of $483.4 million for the six months ended June 30, 2023, compared with a net loss of $1.19 billion in the prior-year period. The result was driven largely by a $513.5 million income tax benefit tied to the release of the remaining valuation allowance on its deferred tax asset related to bitcoin impairments, and a $44.7 million gain on debt extinguishment from repaying the 2025 Secured Term Loan. Digital asset impairment losses were much smaller at $43.1 million for the six months, versus $1.09 billion a year earlier. Total revenues were $242.3 million for the six months, roughly flat with $241.4 million a year earlier, while loss from operations narrowed to $47.0 million from $1.09 billion. The company held approximately 152,333 bitcoins at June 30, 2023, carried at $2.32 billion after $2.20 billion in cumulative impairments, and purchased about 19,833 bitcoins during the six months using $526.3 million of proceeds, mainly from at-the-market share sales. Total indebtedness was $2.211 billion principal, including $650.0 million of 2025 Convertible Notes, $1.05 billion of 2027 Convertible Notes, $500.0 million of 6.125% 2028 Secured Notes, and $10.6 million of other secured debt. Cash and cash equivalents were $66.0 million. The filing states that the 2028 Secured Notes' springing maturity feature is not expected to be triggered, and it notes that a District of Columbia False Claims Act case against the company and its Chairman remains pending, with the motion to dismiss denied on July 31, 2023. The filing also discloses that approximately 467 additional bitcoins were bought for $14.4 million between June 30, 2023 and the filing date, and that the company had $290.0 million of capacity remaining under its 2023 at-the-market sales agreement. Management states its existing cash and anticipated cash generation are sufficient for working capital and obligations for at least the next 12 months, but it does not expect the software business alone to cover long-term debt obligations.

    Aug 1, 2023
  12. 2023-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2023

    MicroStrategy Incorporated's first-quarter 2023 Form 10-Q reports net income of $461.2 million, compared with a net loss of $130.8 million in the first quarter of 2022. The result was driven largely by a $453.2 million benefit from income taxes, mainly from the release of a valuation allowance on the deferred tax asset tied to bitcoin impairments, and a $44.7 million gain on debt extinguishment from repaying the 2025 Secured Term Loan. Total revenues were $121.9 million, up from $119.3 million, and loss from operations narrowed to $20.3 million from $170.0 million, as digital asset impairment losses fell to $18.9 million from $170.1 million. The company held approximately 140,000 bitcoins at March 31, 2023, with a carrying value of $2.000 billion after cumulative impairments of $2.172 billion. It bought about 7,500 bitcoins during the quarter for $179.3 million, funded by net proceeds of $339.0 million from at-the-market sales of class A common stock. The 2025 Secured Term Loan was repaid in full on March 24, 2023, and all bitcoin collateral was released. Total indebtedness was $2.211 billion principal at quarter end, including $650.0 million of 2025 Convertible Notes, $1.05 billion of 2027 Convertible Notes, and $500.0 million of 2028 Secured Notes. The filing also discloses pending matters, including the Daedalus Blue patent infringement suit, Brazilian procurement and competition proceedings with an accrued minimum loss of $0.2 million, and a District of Columbia False Claims Act action in which a motion to amend was filed on April 13, 2023 to restore claims against the company and Michael J. Saylor. Management states that the outcome of the District and Daedalus matters is not presently determinable.

    May 1, 2023
  13. 2022-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2022

    MicroStrategy Incorporated's third-quarter 2022 Form 10-Q, filed November 1, 2022, reports a net loss of $27.1 million for the three months ended September 30, 2022, compared with a net loss of $36.1 million a year earlier. Total revenues were $125.4 million, down from $128.0 million, and the company recorded only $0.7 million of digital asset impairment losses in the quarter, versus $65.2 million in the prior-year quarter. For the nine months, the net loss widened to $1.220 billion, driven by $1.089 billion of digital asset impairment losses, against a $445.5 million net loss a year earlier. Bitcoin holdings were approximately 130,000 coins with a carrying value of $1.993 billion, against cumulative impairments of $1.990 billion, and the market value using the September 30, 2022 price was $2.532 billion. Total debt principal was about $2.4 billion at September 30, 2022, including $1.7 billion of convertible notes, $500.0 million of 6.125% senior secured notes due 2028, and a $205.0 million secured term loan issued in March 2022 by subsidiary MacroStrategy LLC. Stockholders' deficit was $200.3 million, and a $411.8 million valuation allowance was recorded against deferred tax assets, mainly tied to the bitcoin impairment. Cash and cash equivalents were $60.4 million. Operating cash flow for the nine months was $21.4 million, and the company had not sold any bitcoin. The filing also discloses a District of Columbia civil complaint filed August 31, 2022 against the company and Chairman Michael J. Saylor over alleged unpaid personal income taxes, with claims of more than $25 million; the company says the claims have no merit. A patent infringement suit by Daedalus Blue, LLC remains pending, with its outcome not presently determinable. In September 2022 the company also set up a $500.0 million at-the-market equity program, under which no shares had been sold as of quarter end.

    Nov 1, 2022
  14. 2022-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2022

    MicroStrategy Incorporated's 10-Q for the quarter ended June 30, 2022 reports a net loss of $1.062 billion for the three months and $1.193 billion for the six months, driven primarily by digital asset impairment losses of $917.8 million in the quarter and $1.088 billion year to date. Total revenues were $122.1 million for the quarter, down from $125.4 million a year earlier, and $241.4 million for the six months, down from $248.3 million. The company held approximately 129,699 bitcoins with a carrying value of $1.988 billion against cumulative impairment losses of $1.989 billion, and stockholders' equity fell to a deficit of $187.1 million at June 30, 2022 from $979.0 million at December 31, 2021. Debt rose to $2.37 billion in carrying value, including the $205.0 million 2025 Secured Term Loan from Silvergate Bank, collateralized by bitcoin held by its subsidiary MacroStrategy LLC. The filing states that the loan's loan-to-collateral value covenant of 50% required MacroStrategy to deposit an additional 10,585 bitcoins in June 2022 as bitcoin's price declined. The company also recorded a $136.1 million tax provision for the quarter, reflecting a $391.3 million valuation allowance on its deferred tax asset related to the bitcoin impairment. The filing also discloses a Brazilian procurement matter for which management believes a loss is probable but not reasonably estimable, and a pending patent infringement suit by Daedalus Blue, LLC. Under Item 5, the company announced that Michael J. Saylor will transition to Executive Chairman and Phong Le will become Chief Executive Officer, both effective August 8, 2022.

    Aug 2, 2022
  15. 2022-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2022

    MicroStrategy Incorporated's first-quarter 2022 Form 10-Q reports a net loss of $130.8 million on total revenues of $119.3 million, compared with a net loss of $110.0 million on revenues of $122.9 million in the prior-year quarter. The loss was driven mainly by digital asset impairment losses of $170.1 million, which the filing says represented 64.5% of operating expenses. The company's bitcoin holdings were approximately 129,218 bitcoins with a carrying value of $2.896 billion at March 31, 2022, after cumulative impairments of $1.071 billion. Total assets were $3.638 billion and total liabilities were $2.775 billion. The company operates two strategies: holding bitcoin as a treasury reserve asset and growing its enterprise analytics software business. Long-term debt rose to $2.362 billion net carrying value from $2.155 billion, following a $205.0 million secured term loan issued by subsidiary MacroStrategy LLC in March 2022 that is collateralized by bitcoin. Operating cash flow was $43.7 million, down from $62.7 million a year earlier, and cash and cash equivalents were $92.7 million at quarter end. The filing also describes the bitcoin-backed debt covenants, including a 50% loan-to-collateral-value ratio requirement, and the ongoing Daedalus Blue patent litigation and Brazilian regulatory matters. The filing notes that the company recorded at least $30.2 million in additional digital asset impairment losses in the second quarter of 2022 on bitcoin held at March 31, 2022.

    May 3, 2022
  16. 2021-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2021

    MicroStrategy Incorporated's 10-Q for the quarter ended September 30, 2021 reports a net loss of $36.1 million for the three months and $445.5 million for the nine months, driven primarily by digital asset impairment losses of $65.2 million and $684.0 million, respectively. Total revenues were $128.0 million for the quarter, up slightly from $127.4 million a year earlier, and $376.2 million for the nine months, up from $349.4 million. The company's balance sheet shows digital assets (bitcoin) of $2.41 billion, held as approximately 114,042 bitcoins, against total assets of $2.99 billion. Long-term debt, net, rose to $2.15 billion, reflecting the 2027 convertible notes, the 2028 senior secured notes, and the 2025 convertible notes. The company states that it pursues two strategies: enterprise analytics software and acquiring and holding bitcoin as a treasury reserve asset. Bitcoin purchases during the nine months totaled about $2.04 billion in cash, funded by convertible and secured notes and by sales of class A common stock under a Sale Agreement with Jefferies, which allows up to $1.0 billion of stock sales, with about $596.0 million remaining as of September 30, 2021. The filing notes that carrying value reflects the lowest bitcoin price since acquisition, so impairments cannot be reversed while later price gains are not recognized until sale. The filing also highlights risk items for investors: the company's reliance on bitcoin price for its earnings and asset base, a pending Daedalus Blue patent suit, Brazilian procurement matters with a probable but not yet estimable loss, and a controlling-stockholder structure in which Michael J. Saylor holds about 70.0% of total voting power. Management says it does not expect to sell bitcoin within the next twelve months to meet working capital needs.

    Oct 28, 2021
  17. 2021-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2021

    MicroStrategy Incorporated's second-quarter 2021 Form 10-Q reports a net loss of $299.3 million for the three months ended June 30, 2021, compared with net income of $3.4 million a year earlier, and a net loss of $409.4 million for the six months, compared with net income of $4.0 million. The loss was driven by digital asset impairment losses of $424.8 million in the quarter and $618.9 million year to date, against no impairments in the prior-year periods. Total revenues rose to $125.4 million for the quarter, up from $110.6 million, and to $248.3 million for the six months, up from $222.0 million. Product licenses revenue grew 49.5% in the quarter. The company's balance sheet reflects its bitcoin acquisition strategy. Digital assets were carried at $2.051 billion at June 30, 2021, representing approximately 105,085 bitcoins with $689.6 million in cumulative impairments. Long-term debt, net, rose to $2.151 billion from $486.4 million at year-end 2020, following the issuance of $1.050 billion of 0% convertible senior notes due 2027 in February 2021 and $500.0 million of 6.125% senior secured notes due 2028 in June 2021. Cash and cash equivalents were $56.4 million, and total stockholders' equity fell to $77.4 million from $553.0 million at December 31, 2020. The filing states that the company purchased approximately 34,616 bitcoins for $1.616 billion during the first half of 2021. It also discloses a $1.0 billion at-the-market equity sale agreement with Jefferies, under which no shares had been sold as of June 30, 2021. The company identifies bitcoin price volatility, concentration of holdings, and the springing maturity feature of the secured notes as principal risks. It also discloses an unresolved patent infringement suit by Daedalus Blue, LLC and an unquantified probable loss in Brazilian procurement matters.

    Jul 29, 2021
  18. 2021-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2021

    MicroStrategy Incorporated reported a net loss of $110.0 million for the three months ended March 31, 2021, compared with net income of $0.7 million in the prior-year quarter. The loss was driven primarily by $194.1 million of digital asset impairment losses on bitcoin, which pushed loss from operations to $183.2 million. Total revenues rose to $122.9 million from $111.4 million, and gross profit increased to $100.4 million from $86.9 million, reflecting growth in product licenses and subscription services. The company continued its strategy of acquiring and holding bitcoin. During the quarter it purchased approximately 20,857 bitcoins for $1.086 billion, funded in part by $1.050 billion of 0% Convertible Senior Notes due 2027 issued in February 2021. As of March 31, 2021, it held approximately 91,326 bitcoins with a carrying value of $1.947 billion, reflecting cumulative impairments of $264.8 million. As of April 28, 2021, it held approximately 91,579 bitcoins acquired at an aggregate purchase price of $2.226 billion. Total convertible senior notes principal reached $1.7 billion, and total liabilities increased to $2.08 billion from $912.6 million at year-end 2020. Cash and cash equivalents were $82.5 million at March 31, 2021, and total stockholders' equity fell to $365.0 million from $553.0 million. The company adopted ASU 2020-06 effective January 1, 2021, which changed its convertible debt accounting and diluted EPS methodology. Brazilian procurement matters and a patent infringement suit filed by Daedalus Blue, LLC remain pending, and management did not estimate the amount of the Brazilian loss.

    Apr 29, 2021
  19. 2020-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2020

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2020 reports a net loss of $14.2 million for the three months, compared with net income of $9.7 million a year earlier, and a net loss of $10.2 million for the nine months versus net income of $22.2 million. Total revenues for the quarter were $127.4 million, up from $119.7 million, and total revenues for the nine months were $349.4 million, down from $352.8 million. The quarterly loss was driven primarily by a $44.2 million digital asset impairment loss on bitcoin, partly offset by a lower sales and marketing expense base, which fell to $35.3 million from $43.9 million. During the third quarter the company purchased approximately 38,250 bitcoins for $425.0 million, with a carrying value of $380.8 million at quarter-end after cumulative impairments of $44.2 million. The filing states that bitcoin is now the primary treasury reserve asset under a new Treasury Reserve Policy adopted in September 2020. Cash and cash equivalents fell to $52.7 million from $456.7 million at year-end 2019, and total stockholders' equity declined to $389.3 million from $508.6 million, reflected in part by $122.5 million of treasury stock purchases during the nine months. The filing also discloses a pending Brazilian matter in which the company believes a loss is probable but not reasonably estimable, and it notes that the company's Chairman and CEO Michael J. Saylor controls a majority of voting power through class B common stock. Management states that existing cash and cash equivalents are sufficient for at least the next 12 months.

    Oct 27, 2020
  20. 2020-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2020

    MicroStrategy Incorporated's 10-Q for the quarter ended June 30, 2020 reports total revenues of $110.6 million for the three months, down from $117.7 million a year earlier, and net income of $3.4 million, compared with $20.4 million in the prior-year quarter. The prior-year quarter included a $29.8 million gain from the Voice.com Domain Name Sale. Gross profit was $86.6 million and operating income was $6.3 million, versus an operating loss of $4.8 million a year earlier, as sales and marketing expense fell to $35.0 million from $48.3 million. For the six months, net income was $4.0 million and operating income was $6.3 million. Product licenses revenue declined 26.4% in the quarter, which the company attributes partly to the COVID-19 pandemic's macroeconomic effects, while subscription services revenue grew 12.9%. The balance sheet shows cash and cash equivalents of $420.9 million and short-term investments of $110.0 million at June 30, 2020, against total liabilities of $374.6 million and stockholders' equity of $458.5 million. During the six months, the company used $61.9 million to repurchase class A common stock, and $209.1 million remained available under its $800.0 million Share Repurchase Program. Management stated it intends to return up to $250 million to stockholders and invest up to another $250 million in alternative investments over the next 12 months. Deferred revenue and advance payments totaled $173.6 million, with $167.6 million expected to be recognized within 12 months. The filing also discloses a Brazilian subsidiary matter in which bank accounts were frozen in February 2020 and later unfrozen; management believes a loss is probable but not reasonably estimable, and does not expect a material effect on financial position. The company's Chairman and CEO, Michael J. Saylor, controls the company through class B shares holding 72.7% of total voting power.

    Jul 28, 2020
  21. 2020-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2020

    MicroStrategy Incorporated reported a first-quarter 2020 net income of $657 thousand, compared with a net loss of $7.9 million in the first quarter of 2019. Total revenues were $111.4 million, down from $115.4 million a year earlier. Product licenses revenue fell to $12.6 million from $18.3 million, which the filing attributes in part to COVID-19-related delays in customers' operational priorities and deal closings. Subscription services revenue rose to $8.0 million from $7.1 million, and other services revenue rose to $19.7 million from $18.5 million. Total operating expenses fell to $87.0 million from $99.6 million, leaving a loss from operations of $72 thousand compared with a $10.4 million loss a year earlier. The balance sheet shows cash and cash equivalents of $429.3 million and short-term investments of $109.9 million at March 31, 2020, against total liabilities of $387.8 million and stockholders' equity of $461.4 million. Deferred revenue and advance payments totaled $188.6 million. The company repurchased 354,633 class A shares for $50.7 million in the quarter and had $220.3 million remaining under its $800.0 million repurchase program. Operating cash flow was $29.1 million. The filing also discloses that the Brazilian subsidiary's bank accounts were frozen, with the company believing a loss is probable but not reasonably estimable in amount, and that Chief Financial Officer Lisa Mayr resigned, with Phong Le appointed to succeed her. Management states that COVID-19 may reduce product licenses, consulting, and product support revenues in future periods and expects lower sales and marketing expenses due to reduced travel and in-person events. The company also reports that Michael J. Saylor controls approximately 71.6% of the total voting power through class B shares.

    Apr 28, 2020
  22. 2019-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2019

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2019 reports total revenues of $119.7 million for the three months, down from $122.2 million a year earlier, and net income of $9.7 million versus $12.7 million. For the nine months, total revenues were $352.8 million (versus $365.7 million) and net income was $22.2 million (versus $19.2 million). The nine-month results include a $29.8 million pre-tax gain from the sale of the Voice.com domain name, which carried an $8.1 million discrete tax provision. Excluding that gain and the related tax, the filing's non-GAAP reconciliation shows a nine-month non-GAAP net income of $0.4 million, and GAAP loss from operations of $10.6 million for the nine months compared with income of $6.1 million a year earlier. Operating results were pressured by lower product support and other services revenue, partly due to unfavorable foreign currency effects. Cash, cash equivalents and short-term investments combined stood at roughly $578.3 million at quarter end, and cash provided by operating activities for the nine months was $52.3 million. The company repurchased 362,148 Class A shares for $48.2 million during the nine months under its $800.0 million authorization. The filing discloses that disclosure controls were not effective due to material weaknesses identified in the 2018 Form 10-K, with remediation expected by the end of 2019. It also notes a probable but not yet estimable loss related to a Brazilian subsidiary's procurement compliance, and that Michael J. Saylor controls about 70.4% of total voting power through Class B shares.

    Oct 29, 2019
  23. 2019-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2019

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2019 reports total revenues of $117.7 million for the three months ended June 30, 2019, down from $120.6 million a year earlier, and a loss from operations of $4.8 million compared with a loss of $1.8 million in the prior-year quarter. Net income for the quarter was $20.4 million, or $1.98 per diluted share, but this was driven by a $29.8 million gain from the May 2019 sale of the Voice.com domain name, which was recorded in other income, net. Excluding the domain name sale, the company reports non-GAAP net loss of $1.4 million for the quarter and a non-GAAP diluted loss per share of $0.14. For the six months ended June 30, 2019, total revenues were $233.1 million versus $243.6 million a year earlier, and net income was $12.5 million, compared with a non-GAAP net loss of $9.3 million after excluding the domain name gain. The balance sheet shows cash and cash equivalents of $261.5 million and short-term U.S. Treasury investments of $313.3 million at June 30, 2019, against total liabilities of $397.0 million and stockholders' equity of $502.7 million. The company adopted ASU 2016-02 (Leases) on January 1, 2019, which added $108.2 million of non-current operating lease liabilities and right-of-use assets of $89.6 million to the balance sheet. The filing states that management's disclosure controls were not effective due to material weaknesses previously disclosed in the 2018 Form 10-K, with remediation expected by the end of fiscal 2019. The filing also discloses a Brazilian subsidiary matter where a loss is considered probable but not reasonably estimable. The filing notes that Chairman, President and CEO Michael J. Saylor controls 70.4% of total voting power through class B common stock, that two executive officers departed in July 2019, and that the company repurchased $48.2 million of class A common stock in the first half of 2019 under its $800.0 million share repurchase program, with no repurchases in the second quarter.

    Jul 30, 2019
  24. 2019-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2019

    MicroStrategy Incorporated reported a net loss of $7.9 million, or $(0.77) per share, for the three months ended March 31, 2019, compared with net income of $1.7 million in the same period of 2018. Total revenues declined to $115.4 million from $123.0 million, driven mainly by lower other services (consulting and education) and product support revenues, with a $2.7 million unfavorable foreign currency impact on product support. Loss from operations was $10.4 million versus income of $0.7 million a year earlier, as research and development expenses rose 19.8% to $28.2 million. Non-GAAP loss from operations, which excludes share-based compensation, was $7.4 million. Cash and cash equivalents rose to $258.7 million at March 31, 2019 from $109.9 million at year-end 2018, while short-term investments fell to $292.3 million from $466.2 million. Operating cash flow was $26.5 million, and the company repurchased 362,148 Class A shares for $48.2 million during the quarter, leaving $295.5 million available under its $800.0 million repurchase program. Total stockholders' equity declined to $478.3 million from $529.7 million, and total liabilities increased to $410.0 million, largely reflecting the adoption of ASU 2016-02 on leases, which added operating lease liabilities of $106.7 million (non-current). The filing discloses that disclosure controls were not effective due to material weaknesses identified in the 2018 Form 10-K, with remediation expected by the end of fiscal 2019. It also notes an unresolved Brazilian procurement matter for which a loss is probable but not reasonably estimable, and that Michael J. Saylor controls the majority of voting power through Class B shares.

    Apr 30, 2019
  25. 2018-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2018

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2018 reports total revenues of $122.2 million for the three months ended September 30, 2018, down from $126.0 million in the prior-year period (as adjusted), and net income of $12.7 million versus $18.2 million. For the nine months, total revenues were $365.7 million compared with $367.5 million, and net income was $19.2 million versus $43.7 million. The results reflect the company's adoption of ASU 2014-09 (Revenue from Contracts with Customers) with full retrospective application, which changed revenue timing for term licenses and OEM sales. The company also recorded a $3.1 million measurement-period adjustment reducing its Transition Tax under the Tax Act; the remaining provisional Transition Tax estimate was $37.2 million, of which $8.3 million had been paid. Operating income fell to $7.2 million for the quarter from $21.2 million, and to $6.1 million for the nine months from $56.1 million. The filing attributes the increase in costs mainly to higher sales and marketing and research and development spending, which management says reflects its strategy to take greater advantage of market opportunities. Non-GAAP income from operations, which excludes share-based compensation, was $10.2 million for the quarter and $17.3 million for the nine months. Cash and cash equivalents were $112.1 million at September 30, 2018, while short-term investments, consisting mainly of U.S. Treasury securities, totaled $587.1 million. Net cash provided by operating activities was $23.2 million for the nine months, down from $49.3 million. The filing also discloses a contingency: the Brazilian subsidiary likely failed to comply with local procurement regulations with certain government entities, and management believes a loss is probable but cannot yet estimate its amount or range. Management does not expect the matter to have a material effect on financial position. Michael J. Saylor, through his class B shares, controls 67.5% of total voting power as of October 15, 2018, and the company is a controlled company under Nasdaq rules.

    Oct 25, 2018
  26. 2018-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2018

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2018 reports total revenues of $120.6 million for the three months ended June 30, 2018, up from $119.2 million (as adjusted) in the prior-year period, and a loss from operations of $1.8 million compared with income from operations of $14.1 million a year earlier. Net income for the quarter was $4.8 million, or $0.42 diluted per share, versus $9.95 million ($0.86 per share, as adjusted) in Q2 2017. Results were shaped by a sharp increase in operating expenses, with sales and marketing up 22.5% to $51.0 million and research and development up 28.2% to $25.1 million, which the filing attributes to a previously announced strategy of greater sales, marketing and R&D investment. The company also reported that foreign currency transaction gains contributed $4.5 million to other income in the quarter. For the six months ended June 30, 2018, total revenues were $243.6 million (versus $241.5 million as adjusted) and the company posted an operating loss of $1.1 million, compared with operating income of $34.9 million in the prior year. Net income was $6.5 million, or $0.57 per diluted share. Operating cash flow fell to $23.3 million from $37.1 million, while cash and cash equivalents declined to $90.4 million at June 30, 2018 from $420.2 million at December 31, 2017, as the company shifted cash into short-term investments of $609.2 million. Total stockholders' equity was $620.4 million, and total liabilities were $307.0 million. The filing adopts ASU 2014-09 (Topic 606) with full retrospective application, which changed the timing of term license revenue and the treatment of OEM sales and capitalized sales commissions, and restated prior-period figures. The filing also discloses that Michael J. Saylor controls approximately 67.5% of total voting power through Class B shares, and that the company is a 'controlled company' under Nasdaq rules.

    Jul 26, 2018
  27. 2018-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2018

    MicroStrategy Incorporated's first-quarter 2018 Form 10-Q reports total revenues of $122,967 thousand ($122.97 million) for the three months ended March 31, 2018, up slightly from $122,232 thousand in the prior-year period as adjusted for the adoption of ASU 2014-09. Product licenses revenue fell to $17,301 thousand from $22,646 thousand, while product support revenue rose to $74,415 thousand from $70,512 thousand. Income from operations was $20,835 thousand in the prior-year quarter, and the company reported a net income of $1,673 thousand for Q1 2018 versus $15,557 thousand in Q1 2017, with diluted earnings per share of $0.15 compared with $1.34. Sales and marketing expense rose 29.7% to $51,335 thousand, and operating expenses in total increased to $97,067 thousand from $78,265 thousand, which the filing attributes mainly to higher marketing, staffing and travel costs. The balance sheet shows cash and cash equivalents of $152,155 thousand and short-term investments of $543,312 thousand at March 31, 2018, compared with $420,244 thousand and $254,927 thousand at December 31, 2017. Net cash provided by operating activities was $18,717 thousand, down from $26,521 thousand, and the company held $303.3 million of cash and short-term investments in U.S. entities and $392.2 million in non-U.S. entities. Total deferred revenue and advance payments were $207.4 million. The company had no share repurchases during the quarter under its 2005 Share Repurchase Program, which the board extended through April 29, 2023 in April 2018. Michael J. Saylor, Chairman, President and CEO, controlled 67.6% of total voting power through class B shares as of April 16, 2018.

    Apr 26, 2018
  28. 2017-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2017

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2017 reports total revenues of $125.2 million for the three months ended September 30, 2017, down from $129.9 million a year earlier, and net income of $17.9 million (diluted EPS $1.56) versus $26.6 million (diluted EPS $2.31) in the prior-year quarter. Income from operations was $20.6 million compared with $30.0 million, and the company reports non-GAAP income from operations of $24.2 million, which excludes share-based compensation. For the nine months, total revenues were $366.4 million versus $372.1 million, and net income was $43.9 million versus $59.8 million. Product license revenue declined 27.3% in the quarter, with domestic product licenses down 43.6%, while product support and other services grew modestly. The balance sheet remained liquid, with cash and cash equivalents of $386.9 million and short-term investments of $259.2 million at September 30, 2017, against total liabilities of $201.3 million and stockholders' equity of $612.3 million. Net cash provided by operating activities fell to $49.3 million for the nine months from $94.0 million, driven mainly by changes in operating assets and liabilities. Gross current and non-current deferred revenue totaled $191.1 million, and management expects to recognize approximately $176.6 million of deferred revenue over the next 12 months. The filing also discloses the DataTern patent infringement lawsuit, which the District Court dismissed on October 20, 2017 for failure to prosecute, while indemnification requests from channel partners and customers remain stayed. The company notes that Michael J. Saylor controls about 67.6% of total voting power through class B shares, and that it adopts ASU 2014-09 (revenue recognition) on January 1, 2018 using the full retrospective method.

    Oct 26, 2017
  29. 2017-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2017

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2017 reports total revenues of $120.6 million for the three months ended June 30, 2017, down from $123.1 million a year earlier, and net income of $11.1 million (basic EPS of $0.97), compared with $18.9 million (basic EPS of $1.65) in the prior-year quarter. Product license revenue fell to $19.1 million from $23.5 million, while product support ($70.8 million), other services ($22.4 million) and subscription services ($8.3 million, up from $7.8 million) were the other revenue lines. Income from operations was $15.7 million versus $21.1 million, and non-GAAP income from operations (excluding share-based compensation and restructuring) was $19.4 million versus $24.7 million. For the six months, net income was $25.9 million and net cash provided by operating activities was $37.1 million, down from $66.5 million. At June 30, 2017, cash and cash equivalents were $379.7 million and short-term investments were $252.7 million, against total liabilities of $207.4 million and stockholders' equity of $589.7 million. Gross current and non-current deferred revenue totaled $209.7 million, and management expects to recognize approximately $193.7 million of deferred revenue over the next 12 months. The company also disclosed a pending patent infringement lawsuit filed by DataTern, Inc. in December 2011, for which the outcome is not presently determinable and no liability has been accrued. The filing states that Michael J. Saylor controls roughly 68% of total voting power through class B common stock, and that the company qualifies as a "controlled company" under NASDAQ rules. The company also disclosed that it is preparing to adopt ASU 2014-09 (revenue from contracts with customers) on January 1, 2018, using the full retrospective method.

    Jul 27, 2017
  30. 2017-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2017

    MicroStrategy Incorporated filed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. Total revenues were $120.6 million, up from $119.0 million in the prior-year quarter, while income from operations was $19.4 million versus $19.8 million, and net income rose to $14.9 million from $14.3 million. Basic earnings per share were $1.30 and diluted earnings per share were $1.28. Non-GAAP income from operations, which excludes share-based compensation and restructuring, was $22.5 million compared with $21.3 million a year earlier. Product license revenue declined 6.2% to $21.0 million, while product support revenue rose 2.9% to $70.5 million. Cash, cash equivalents and short-term investments held by U.S. and non-U.S. entities totaled $288.2 million and $330.3 million, respectively, at March 31, 2017. Net cash provided by operating activities fell to $26.5 million from $50.8 million, and total stockholders' equity was $572.0 million. Gross current and non-current deferred revenue was $223.4 million. The company states that existing cash and investments are sufficient to meet its needs for at least the next 12 months. The filing also discloses an ongoing patent infringement lawsuit brought by DataTern, Inc., in which a claim construction ruling was issued in February 2017 and the company cannot estimate a possible loss, with no liability accrued. Michael J. Saylor controls approximately 68.4% of total voting power through class B common stock, and the company is designated a controlled company under NASDAQ rules.

    Apr 27, 2017
  31. 2016-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2016

    MicroStrategy Incorporated filed this Form 10-Q for the quarter ended September 30, 2016. For the three months ended September 30, 2016, total revenues were $129.9 million versus $129.5 million a year earlier, income from operations was $30.0 million (versus $30.7 million), and net income was $26.6 million (versus $23.9 million), with diluted EPS of $2.31 compared with $2.06. For the nine months, total revenues were $372.1 million (versus $386.3 million), income from operations was $70.9 million (versus $88.1 million), and net income was $59.8 million (versus $66.8 million), with diluted EPS of $5.20 versus $5.80. Net income in the nine-month period was helped by a lower effective tax rate of 16.9% (versus 26.5%), which the filing attributes mainly to a change in the expected mix of U.S. and foreign income and discrete tax benefits recorded in the third quarter of 2016. Cash and cash equivalents rose to $365.6 million at September 30, 2016 from $292.3 million at December 31, 2015, and short-term investments were $213.3 million. Net cash provided by operating activities fell to $94.0 million from $123.4 million for the nine months. Total stockholders' equity was $519.9 million, and total liabilities were $215.6 million. Gross current and non-current deferred revenue and advance payments totaled $192.7 million. The filing also discloses an ongoing patent infringement lawsuit filed by DataTern, Inc. in December 2011, for which a claim construction hearing was held in September 2016 with the outcome still pending, and for which no loss estimate has been accrued. Management also reports that it is undertaking a transformation of its worldwide finance and accounting organization into three geographically based centers, expected to be substantially complete by the end of the first quarter of 2017.

    Oct 27, 2016
  32. 2016-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2016

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2016 reports total revenues of $123.1 million for the three months ended June 30, 2016, down from $132.9 million a year earlier, while net income was $18.9 million versus $22.5 million. For the six months, total revenues were $242.2 million (versus $256.8 million) and net income was $33.2 million (versus $42.9 million). Product license revenue declined in the quarter, with domestic product licenses falling 31.0% year over year, partially offset by international growth, and consulting revenue dropped 23.6%. Profitability and liquidity remained solid on the filing's figures. Income from operations was $21.1 million for the quarter versus $34.8 million a year earlier, and non-GAAP income from operations (excluding share-based compensation and restructuring) was $24.7 million. Cash and cash equivalents rose to $347.4 million at June 30, 2016 from $292.3 million at December 31, 2015, and short-term investments were $202.7 million. Management states that existing cash and investments are sufficient for working capital, capital expenditures, and contractual obligations for at least the next 12 months. The filing also discloses that the DataTern patent infringement lawsuit remains pending, with the District Court having denied the Company's summary judgment motions on September 4, 2015, and an outcome that the Company says is not presently determinable. Michael J. Saylor, Chairman, President and CEO, controls the company through class B shares carrying 67.6% of total voting power as of July 22, 2016.

    Jul 28, 2016
  33. 2016-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2016

    MicroStrategy Incorporated's first quarter 2016 Form 10-Q reports total revenues of $119.0 million for the three months ended March 31, 2016, down from $123.9 million a year earlier, with product licenses revenue up to $22.4 million from $20.8 million while other services revenue fell to $20.8 million from $27.1 million. Income from operations was $19.8 million compared with $22.6 million in the prior-year period, and net income was $14.3 million, or $1.24 per diluted share, versus $20.5 million, or $1.79 per diluted share, a year earlier. Other expense, net, was $1.7 million in 2016 after other income of $4.8 million in 2015, mainly from foreign currency transaction effects. The balance sheet strengthened over the quarter, with cash and cash equivalents of $308.9 million and short-term investments of $227.4 million at March 31, 2016, against total assets of $693.2 million. Net current deferred revenue and advance payments rose to $131.4 million from $100.7 million at year-end 2015, and operating cash flow was $50.8 million compared with $55.8 million in the first quarter of 2015. The company also reported that international revenues were 39.5% of total revenues, up from 36.3% a year earlier. The filing highlights several risk items for investors. The company is defending a DataTern patent infringement suit, and the District Court denied its summary judgment motions in September 2015; the outcome is not presently determinable and no liability has been accrued. Michael J. Saylor controls roughly 67.6% of total voting power through class B shares, and the company relies on the controlled company exemption from certain NASDAQ governance requirements. Headcount fell to 2,005 at March 31, 2016 from 2,232 a year earlier.

    Apr 27, 2016
  34. 2015-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2015

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2015 reports total revenues of $129.5 million for the three months, down from $151.2 million a year earlier, while the company posted net income of $23.9 million versus a net loss of $0.8 million in the prior-year quarter. Diluted earnings per share were $2.06 compared with a loss of $0.07. The decline in revenue was led by lower product licenses revenue ($27.5 million vs. $34.0 million), lower other services revenue ($24.1 million vs. $36.2 million), and product support revenue of $71.4 million vs. $75.0 million, with the filing citing foreign currency headwinds of $5.3 million on product support revenue in the quarter. Operating income was $30.7 million compared with a loss from operations of $7.0 million a year earlier, reflecting lower sales and marketing, research and development, and general and administrative expenses following the 2014 Restructuring Plan. For the nine months ended September 30, 2015, total revenues were $386.3 million versus $431.0 million, and net income was $66.8 million versus a net loss of $17.7 million. Net cash provided by operating activities was $123.4 million, compared with $16.3 million a year earlier. Cash and cash equivalents were $230.2 million and short-term investments were $226.7 million at September 30, 2015, and total stockholders' equity was $408.5 million. The filing also discloses a pending patent infringement case brought by DataTern, Inc. in which the District Court denied the company's summary judgment motions on September 4, 2015; the outcome is not presently determinable and no liability has been accrued. Management concluded that disclosure controls were not effective at the reasonable assurance level because of a material weakness tied to a third-party service organization's SOC 1 Type 2 report.

    Oct 29, 2015
  35. 2015-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2015

    MicroStrategy Incorporated reported results for the quarter and six months ended June 30, 2015. Total revenues for the three months were $132.9 million, down from $141.9 million a year earlier, while operating income was $34.8 million compared with an operating loss of $12.7 million in the prior-year quarter. Net income for the quarter was $22.5 million, or $1.95 diluted earnings per share, versus a net loss of $10.3 million in the second quarter of 2014. For the six months, total revenues were $256.8 million (down from $279.8 million), and net income was $42.9 million. The decline in revenue was driven mainly by lower product licenses, product support, and other services revenues, with foreign currency exchange rates a significant headwind; the company's operating expenses fell sharply, reflecting the 2014 Restructuring Plan that cut 777 positions. The balance sheet remained strong, with cash and cash equivalents of $201.1 million and short-term investments of $226.7 million at June 30, 2015, against total liabilities of $230.4 million and stockholders' equity of $380.7 million. Net cash provided by operating activities was $92.0 million for the six months, compared with $14.4 million a year earlier. The company also disclosed a material weakness in internal control over financial reporting, tied to a third-party service organization's failure to provide an adequate SOC 1 Type 2 report, and concluded its disclosure controls were not effective at the reasonable assurance level. Legal matters remain open: the DataTern patent suit is awaiting district court rulings on summary judgment motions argued on May 13, 2015, and the Vasudevan patent case ended with a non-infringement judgment affirmed by the Federal Circuit in April 2015. The filing also notes that Michael J. Saylor controls the company through majority ownership of class B common stock, representing 67.8% of total voting power as of July 23, 2015.

    Jul 30, 2015
  36. 2015-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2015

    MicroStrategy Incorporated reported net income of $20.5 million, or $1.81 basic earnings per share, for the three months ended March 31, 2015, compared with a net loss of $6.5 million in the prior-year quarter. Total revenues declined to $123.9 million from $137.9 million, with product licenses revenue down to $20.8 million from $27.9 million, while subscription services revenue rose to $6.7 million from $4.4 million. The improvement in profitability was driven mainly by lower operating expenses following the 2014 Restructuring Plan, with sales and marketing expenses falling to $36.5 million from $58.9 million and research and development expenses falling to $15.4 million from $28.1 million. Income from operations was $22.6 million, versus a loss of $8.3 million a year earlier. The balance sheet strengthened over the quarter, with cash and cash equivalents of $165.1 million and short-term investments of $226.7 million at March 31, 2015, and net cash provided by operating activities of $55.8 million for the quarter. Total stockholders' equity rose to $348.3 million. Net current and non-current deferred revenue and advance payments totaled $142.8 million, and the company disclosed approximately $130.7 million of future customer purchase commitments through 2020 that are not included in deferred revenue. The filing also discloses two pending patent infringement matters (DataTern and Vasudevan), for which the company states the outcome is not presently determinable and no liability has been accrued. Management reported that disclosure controls were not effective at the reasonable assurance level because of a material weakness tied to a third-party service organization's controls, although management believes the financial statements fairly present the company's results in all material respects.

    Apr 30, 2015
  37. 2014-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2014

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2014 reports total revenues of $151.2 million for the three months, up from $141.9 million a year earlier, while the company posted a net loss of $0.8 million compared with net income of $17.1 million in the prior-year quarter. Loss from continuing operations was $7.0 million at the operating level, reflecting $11.6 million in restructuring costs tied to the 2014 Restructuring Plan, which targets an approximately 800-employee workforce reduction and annualized pre-tax savings of about $73.4 million. For the nine months, revenue was $431.0 million and the net loss was $17.7 million, compared with net income of $67.2 million in the prior-year period, which included a $57.4 million gain from the sale of Angel.com. Balance sheet liquidity remained substantial, with cash and cash equivalents of $136.0 million and short-term investments of $218.6 million at September 30, 2014, against total stockholders' equity of $299.1 million. Management expects an additional pre-tax restructuring charge of $6.8 million in the fourth quarter of 2014 and says existing cash and investments are sufficient for at least the next 12 months. The filing also discloses pending patent litigation (DataTern and Vasudevan) for which no loss estimate has been accrued, and states that Michael J. Saylor controls about 65.6% of total voting power through class B shares.

    Oct 29, 2014
  38. 2014-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2014

    MicroStrategy Incorporated reported a loss from continuing operations, net of tax, of $10.3 million for the three months ended June 30, 2014, compared with a loss of $1.6 million in the prior-year quarter, on total revenues of $141.9 million versus $137.9 million. For the six months ended June 30, 2014, total revenues were $279.8 million and the loss from continuing operations was $16.8 million, compared with a loss from continuing operations of $6.7 million and net income of $50.0 million in the prior-year period, which included a $56.8 million gain from discontinued operations tied to the sale of Angel.com. Operating expenses rose sharply, with research and development up 35.2% and sales and marketing up 15.7% for the quarter, as the company increased headcount to focus on product development and sales efforts. The balance sheet remained liquid, with cash and cash equivalents of $111.9 million and short-term investments of $255.7 million at June 30, 2014, against total liabilities of $270.2 million and stockholders' equity of $298.1 million. Management stated that existing cash and investments are sufficient to meet working capital, capital expenditure and contractual obligations for at least the next 12 months. Subsequent to quarter-end, in July 2014, the company announced it was developing a restructuring plan expected to deliver annualized pre-tax savings of at least $40.0 million, with total charges of approximately $3.0 million to $5.0 million. The filing also highlights pending patent litigation involving DataTern, Inc. and Vasudevan Software, Inc., for which the company stated no estimated liability has been accrued, and notes that Chairman and CEO Michael J. Saylor controls approximately 64.2% of total voting power through class B common stock as of July 22, 2014.

    Jul 30, 2014
  39. 2014-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2014

    MicroStrategy Incorporated reported a net loss of $6.5 million, or $(0.57) per share, for the three months ended March 31, 2014, compared with net income of $51.6 million in the prior-year quarter, which included $56.8 million from discontinued operations tied to the March 2013 sale of Angel.com. Total revenues rose to $137.9 million from $130.2 million, led by product support revenues of $71.5 million (up from $65.3 million) and product licenses and subscription services revenues of $32.3 million (up from $30.8 million). Loss from continuing operations was $8.3 million, versus $8.7 million a year earlier, as sales and marketing expenses rose to $58.9 million from $50.7 million and research and development rose to $28.1 million from $25.8 million. Management said it expects 2014 investment and related expenses to be higher than in 2013. The balance sheet remained liquid, with cash and cash equivalents of $214.8 million and short-term investments of $151.1 million at March 31, 2014. Operating cash flow from continuing operations was $10.8 million, compared with a $9.5 million outflow in the prior-year quarter. Deferred revenue and advance payments totaled $219.6 million gross, net of unpaid amounts $147.3 million. Management stated that existing cash and investments are sufficient to meet working capital, capital expenditure and contractual obligations for at least the next 12 months. The filing also highlights share-based compensation of $1.6 million in the quarter under the 2013 Stock Incentive Plan, which stockholders approved in April 2014, and an April 2014 proposal to raise the plan's share authorization from 600,000 to 1,500,000 shares. Two patent infringement suits (DataTern and Vasudevan) remain pending, with no loss accrued. Class B holders, led by Chairman and CEO Michael J. Saylor, hold 71.1% of total voting power as of April 22, 2014.

    Apr 29, 2014
  40. 2013-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2013

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2013 reports total revenues of $141.9 million for the three months ended September 30, 2013, up from $136.1 million a year earlier, and income from continuing operations, net of tax, of $17.1 million versus $5.1 million. The quarter's net income was $17.1 million, compared with $4.8 million in the prior-year period. For the nine months, net income was $67.2 million, aided by a $56.8 million net contribution from discontinued operations, primarily the $57.4 million after-tax gain on the March 2013 sale of Angel.com. Nine-month income from continuing operations was only $10.4 million, and operating income fell to $0.9 million from $19.4 million, as operating expenses rose to $303.5 million from $285.7 million. The quarter's net income was lifted by a $8.7 million income tax benefit, which the company attributed to releasing unrecognized tax benefit liabilities as statutes of limitations expired and to a favorable German tax settlement. Product license revenue was $33.8 million in the quarter, up from $31.7 million, while nine-month license revenue declined to $92.7 million from $101.1 million. Cash and cash equivalents were $163.8 million and short-term investments were $180.2 million at September 30, 2013. The filing also discloses a 2013 Stock Incentive Plan with 600,000 option shares granted to executives, which the company expects to expense at about $1.6 million per quarter over four years. The filing discloses two pending patent infringement lawsuits. DataTern's appeal of a judgment in MicroStrategy's favor remains pending. In Vasudevan Software's case, the court dismissed the action on October 17, 2013 and found the four asserted patents invalid, though an appeal is likely. Management states that the outcomes of these matters are not presently determinable and that no liability has been accrued.

    Oct 30, 2013
  41. 2013-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2013

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2013 shows a return to a loss from continuing operations in the second quarter. Revenues were $137.9 million for the three months ended June 30, 2013, up from $135.3 million a year earlier, but the company reported a loss from continuing operations of $1.6 million (or $0.14 per diluted share), compared with income of $7.9 million in the prior-year quarter. Operating expenses rose to $103.5 million from $90.8 million, driven by higher research and development and general and administrative spending, and the company states it expects 2013 investment levels to be higher than in 2012. For the six months ended June 30, 2013, net income was $50.0 million, but this was driven by a $57.4 million after-tax gain on the March 15, 2013 sale of the Angel.com business, which was reported as discontinued operations. Loss from continuing operations for the six months was $6.7 million. Product licenses revenue fell 15.0% year over year to $59.0 million, while product support and other services revenue rose 2.3% to $209.1 million. Cash and cash equivalents were $188.7 million at June 30, 2013, plus $129.1 million in short-term U.S. Treasury investments. Investors should note the pending patent litigation: the DataTern case is on appeal after a summary judgment of non-infringement in the company's favor, and the Vasudevan Software case has a trial scheduled for November 18, 2013, with the outcome not presently determinable. The filing also discloses that Michael J. Saylor controls 64.2% of the total voting power through class B shares, and that the company relies on the controlled company exemption from certain Nasdaq governance requirements.

    Aug 1, 2013
  42. 2013-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2013

    MicroStrategy Incorporated's first-quarter 2013 Form 10-Q reports a swing to a loss from continuing operations, driven by lower revenue and higher operating expenses, with net income of $51.6 million coming entirely from the sale of Angel.com. Total revenues were $130.2 million, down from $138.3 million a year earlier. Product license revenues fell 24.3% to $28.4 million, while product support and other services revenues rose 0.9% to $101.8 million. Total operating expenses increased to $102.9 million from $101.0 million, producing an operating loss from continuing operations of $8.7 million versus operating income of $1.6 million in the prior-year period. The loss from continuing operations was $5.2 million, which included an income tax benefit of $1.7 million. The company completed the sale of its Angel.com business to Genesys Telecommunications Laboratories on March 15, 2013 for consideration of approximately $111.2 million, producing a net cash inflow of $100.7 million after $10.5 million in transaction costs and a gain of $57.4 million, net of tax. Cash and cash equivalents rose to $330.2 million at March 31, 2013 from $223.0 million at December 31, 2012, although operating cash flow from continuing operations was negative $9.5 million. Management states that existing cash and anticipated cash generation are sufficient to meet needs for at least the next 12 months, and that it does not expect to need to borrow. The filing also flags ongoing patent litigation, including a DataTern matter and a Vasudevan case with trial scheduled for November 18, 2013, for which no loss can be reasonably estimated. Management expects 2013 investment and related expenses to exceed those of 2012, and the company notes that its Class B shares give Michael J. Saylor 64.2% of total voting power.

    May 3, 2013
  43. 2012-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2012

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2012 reports total revenues of $143.2 million for the three months ended September 30, 2012, up from $141.7 million a year earlier, and net income of $4.8 million, or $0.43 per diluted share, compared with $4.9 million, or $0.44 per diluted share, in the prior-year quarter. Product license revenues fell to $31.7 million from $39.3 million, while product support and other services revenues rose to $111.5 million from $102.4 million. For the nine months, total revenues were $430.2 million versus $401.9 million, and net income was $12.3 million, or $1.10 per diluted share, versus $8.9 million, or $0.81. Operating income for the quarter was $6.7 million, compared with $1.5 million a year earlier, as sales and marketing expense declined to $52.1 million from $61.5 million while research and development rose to $23.5 million from $20.4 million. The effective tax rate for the nine months was 29.6%, up from 7.1% in the prior-year period, which the company attributed mainly to higher expected U.S. results and a favorable U.K. tax settlement recorded in 2011. Cash and cash equivalents were $216.6 million at September 30, 2012, and operating cash flow for the nine months was $41.2 million. The filing states the company believes existing cash is sufficient for at least the next 12 months, though it is evaluating borrowing options in the near term. The filing describes several pending patent and contract matters, including the Acacia Research/DAS dispute with trial scheduled for February 4, 2013, and patent infringement suits brought by Datatern, Inc. and Vasudevan Software, Inc. For each, the company states the outcome is not presently determinable and has not accrued any liability. Class B shareholders, led by Chairman and CEO Michael J. Saylor, hold 71.2% of the total voting power as of October 23, 2012.

    Nov 2, 2012
  44. 2012-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2012

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2012 reports total revenues of $141.8 million for the three months ended June 30, 2012, up from $138.2 million a year earlier, and net income of $7.3 million, or $0.65 diluted EPS, versus $2.9 million, or $0.26 diluted EPS, in the prior-year quarter. Operating income before financing and other income was $9.5 million, compared with $3.5 million. For the six months, total revenues were $286.9 million and net income was $7.5 million. Product licenses revenue for the quarter fell to $31.9 million from $33.4 million, while product support and other services revenue rose to $109.9 million from $104.7 million. Operating expenses declined in sales and marketing but rose in research and development and general and administrative. Cash and cash equivalents were $195.5 million at June 30, 2012, versus $199.6 million at December 31, 2011, and operating cash flow for the six months was $19.8 million, down from $31.5 million. Total stockholders' equity was $179.2 million. The company repurchased no shares under its $800.0 million 2005 Share Repurchase Program during the quarter; cumulative repurchases under that program total $345.3 million. Management states that existing cash is sufficient for at least the next 12 months, though it is evaluating borrowing in the second half of 2012. The filing discloses several pending patent suits (Acacia Research/DAS, Datatern, and Vasudevan) for which the company states the outcome is not presently determinable and no liability has been accrued. Class B shareholders, led by Chairman and CEO Michael J. Saylor, hold 71.9% of total voting power as of July 24, 2012, and the company is a controlled company under Nasdaq rules.

    Aug 3, 2012
  45. 2012-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2012

    MicroStrategy Incorporated's Form 10-Q for the quarter ended March 31, 2012 reports total revenues of $145.1 million, up from $122.0 million in the prior-year quarter, with product licenses revenue of $37.5 million (up from $27.4 million) and product support and other services revenue of $107.6 million (up from $94.6 million). Net income was $272 thousand, or $0.02 diluted earnings per share, compared with $1.1 million, or $0.10 per diluted share, a year earlier. Income from operations before financing and other income and income taxes fell to $458 thousand from $1.1 million, as total operating expenses rose to $105.6 million from $87.8 million, driven by a 41.5% increase in research and development expenses before capitalized software costs and higher sales and marketing spending. The effective tax rate was 13.1%, versus a tax benefit in the prior-year period. Balance sheet and liquidity remained solid. Cash and cash equivalents were $211.1 million at March 31, 2012, up from $199.6 million at December 31, 2011, while net cash from operating activities was $20.8 million, down from $28.2 million. Cash held by non-U.S. entities totaled $182.2 million. Management stated that existing cash and expected cash generation are sufficient to meet needs for at least the next 12 months. The company did not repurchase any shares during the quarter, leaving $800.0 million authorized under the 2005 Share Repurchase Program through April 29, 2013, with 3,826,947 shares repurchased to date. Investors should note several risk items: the company is a defendant in three patent infringement lawsuits (Acacia/DAS, Datatern, and Vasudevan), none of which has an accrued liability, and a trial in the Acacia matter is scheduled for December 3, 2012. Control is concentrated in class B shares, with Chairman and CEO Michael J. Saylor holding 64.6% of total voting power as of April 24, 2012. Deferred revenue and advance payments totaled $131.4 million net, and management expects to recognize approximately $176.3 million of gross deferred revenue over the next 12 months.

    May 4, 2012
  46. 2011-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2011

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2011 reports total revenues of $141.7 million for the three months, up from $114.5 million a year earlier, and net income of $4.9 million, down from $7.4 million. For the nine months, total revenues were $401.9 million (versus $315.5 million) and net income was $8.9 million (versus $25.9 million). Product licenses revenue rose 22.0% in the quarter to $39.3 million, while product support and other services revenue reached $102.4 million. Operating income before financing and other income fell to $1.5 million for the quarter from $9.8 million, as sales and marketing expenses rose to $61.5 million from $42.0 million and research and development expenses rose to $20.4 million from $13.7 million. Cash and cash equivalents were $186.3 million at September 30, 2011, and the company stated it believes existing cash is sufficient for at least the next 12 months and does not expect to need to borrow. The filing describes ongoing litigation over the aircraft damaged in a 2010 hangar collapse, with the company having recorded a cumulative $7.7 million impairment against a carrying value of $45.6 million and insurance coverage of up to $50.0 million. A dismissal and tolling agreement was reached on October 24, 2011, and the company received an additional $0.4 million from the insurers. A separate patent-related lawsuit with Acacia Research and DAS, with trial scheduled for May 29, 2012, remains pending, and the filing states its outcome is not presently determinable. Class B stock carries ten votes per share, and Michael J. Saylor controls the company through class B holdings.

    Nov 3, 2011
  47. 2011-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2011

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2011 reports total revenues of $138.2 million for the three months ended June 30, 2011, up from $107.5 million a year earlier, while net income fell to $2.9 million from $11.6 million. Diluted earnings per share were $0.26 versus $0.97. For the six months, total revenues were $260.2 million (versus $200.9 million) and net income was $4.0 million (versus $18.5 million), with a benefit for income taxes of $0.3 million. Operating expenses rose sharply, with sales and marketing up 53.0% in the quarter for the core BI business, and the company states that cost of revenues and operating expenses will continue to increase through the rest of 2011, which could lead to operating losses in the second half. The balance sheet showed cash and cash equivalents of $193.0 million at June 30, 2011, up from $174.1 million at December 31, 2010, and total stockholders' equity of $156.5 million. Net cash provided by operating activities was $31.5 million for the six months. The company did not repurchase any shares under its 2005 Share Repurchase Program during the period, and it has been authorized to repurchase up to $800.0 million in aggregate, having repurchased $345.3 million to date. Litigation remains significant. The company is pursuing an insurance claim over its corporate aircraft, damaged in a February 2010 hangar collapse, with the carrying value written down to $6.5 million and a trial set for February 6, 2012. The company is also in litigation with Acacia Research and Database Application Solutions LLC over a patent claim, with the outcome not presently determinable. The filing notes that Michael J. Saylor controls the company through its class B common stock, holding 65.5% of the total voting power as of July 27, 2011.

    Aug 3, 2011
  48. 2011-Q1

    Strategy Quarterly Report for Q3 Ended Mar 31, 2011

    MicroStrategy Incorporated's Form 10-Q for the quarter ended March 31, 2011 reports total revenues of $122.0 million, up from $93.4 million in the prior-year quarter, with product licenses revenues of $27.4 million (up from $18.0 million) and product support and other services revenues of $94.6 million (up from $75.4 million). Income from operations before financing and other income and income taxes fell to $1.1 million from $7.6 million, as operating expenses rose to $87.8 million from $64.2 million, led by a $16.7 million increase in core sales and marketing expense. Net income was $1.1 million, or $0.10 diluted earnings per share, compared with $6.9 million, or $0.56 diluted, in the prior-year period, and the quarter included a tax benefit of $0.6 million. The balance sheet showed cash and cash equivalents of $203.1 million at March 31, 2011, up from $174.1 million at December 31, 2010, and management stated that existing cash and operating cash flow should be sufficient for at least the next 12 months, with no expected borrowing. Net cash provided by operating activities was $28.2 million, and deferred revenue and advance payments rose to $119.8 million net. The company repurchased no shares during the quarter under its 2005 Share Repurchase Program, which has $800.0 million of authorized capacity, of which 3,826,947 shares totaling $345.3 million had been repurchased to date. The filing also details ongoing litigation: a complaint filed in February 2011 against the insurance carriers over the damaged corporate aircraft, and a dispute with Acacia Research and its affiliate DAS over a patent claim, both of which the company states are not presently determinable. The aircraft carrying value was reduced by an additional $2.9 million impairment during the quarter, leaving an estimated total loss of $6.5 million, with a possible damage estimate of up to $46.0 million.

    May 5, 2011
  49. 2010-Q3

    Strategy Quarterly Report for Q1 Ended Sep 30, 2010

    MicroStrategy Incorporated's Form 10-Q for the quarter ended September 30, 2010 shows total revenues of $114.5 million for the three months, up from $104.0 million a year earlier, while net income fell to $7.4 million from $21.4 million. Operating income dropped to $9.8 million from $30.4 million, as total operating expenses rose to $77.5 million from $57.1 million, driven by sales and marketing, general and administrative, and cost of revenues increases tied to a planned headcount expansion. For the nine months, revenues were $315.5 million (up from $272.0 million) and net income from continuing operations was $25.9 million, compared with $40.0 million a year earlier, which had included a prior-year discontinued operations gain. Cash and cash equivalents declined to $184.3 million at September 30, 2010 from $224.8 million at December 31, 2009. The company repurchased 1,048,335 Class A shares for $81.6 million during the nine months under its 2005 Share Repurchase Program, leaving $482.1 million available. Management stated that existing cash and expected operating cash flow should suffice for working capital and capital expenditures for at least the next 12 months, and that it does not currently expect to borrow. The filing also highlights several risk and contingency items: the February 2010 collapse of a hangar that damaged the corporate aircraft, with a $1.9 million impairment recorded against a carrying value of $46.5 million and a $50.0 million insurance policy in litigation against the insurance carriers; a patent dispute with Acacia Research affiliate Database Application Solutions LLC; and a new Northern Virginia headquarters lease with an expected one-time operating expense increase of approximately $5.2 million for 2010.

    Nov 3, 2010
  50. 2010-Q2

    Strategy Quarterly Report for Q3 Ended Jun 30, 2010

    MicroStrategy Incorporated's Form 10-Q for the quarter ended June 30, 2010 reports total revenues of $107.5 million for the three months ended June 30, 2010, up from $87.8 million a year earlier, and net income of $11.6 million compared with $10.0 million from continuing operations in the prior-year quarter. For the six months, total revenues were $200.9 million versus $168.0 million, and net income was $18.5 million versus $32.9 million, the prior-year period including a $14.3 million gain from discontinued operations tied to the Alarm.com sale. Product licenses revenues rose 41.2% in the quarter and 25.2% for the six months, while product support and other services revenues grew 16.2% and 16.9%, respectively. Cash and cash equivalents declined to $202.7 million at June 30, 2010 from $224.8 million at December 31, 2009, as the company spent $41.7 million on treasury stock repurchases in the six months and generated $31.4 million from operating activities. Management states that existing cash and operating cash flow will be sufficient for working capital and capital expenditures for at least the next 12 months, and that it does not currently expect to borrow. The filing highlights several open matters: a February 2010 collapse of a hangar that damaged the corporate aircraft (carried at $46.9 million in property and equipment, with insurers having rejected a $50.0 million proof of loss and litigation ongoing), a new patent infringement allegation received June 29, 2010, and the company's stated expectation that operating costs will rise in 2010 due to planned headcount growth and a new headquarters lease.

    Aug 4, 2010