MicroStrategy Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>MicroStrategy Inc. filed its Q1 2024 10-Q, detailing its financial position and various debt instruments, including convertible notes and stock-based compensation.</b>

AI Summary

MICROSTRATEGY Inc (STRD) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. MicroStrategy Inc. filed its 10-Q report for the period ending March 31, 2024. The filing details various convertible senior notes, including those due in 2025, 2027, 2030, and 2031. Information regarding share-settled restricted stock units (RSUs) and performance stock units is included. The company's financial statements reflect activity related to employee stock options and common stock. Subsequent events up to April 26, 2024, are noted in the filing.

Why It Matters

For investors and stakeholders tracking MICROSTRATEGY Inc, this filing contains several important signals. The filing provides a detailed look at MicroStrategy's capital structure, particularly its significant convertible debt, which is a key component of its financing strategy. Disclosure of stock-based compensation plans and their impact on equity is crucial for understanding shareholder dilution and executive incentives.

Risk Assessment

Risk Level: medium — MICROSTRATEGY Inc shows moderate risk based on this filing. The company's significant reliance on convertible debt and its substantial Bitcoin holdings (though not explicitly detailed in this snippet) present financial and market risks.

Analyst Insight

Investors should review the detailed breakdown of convertible notes and any associated covenants or conversion triggers mentioned in the full filing.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-01 — Filing Date (FILED AS OF DATE)
• 79 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 2025, 2027, 2030, 2031 — Convertible Note Maturities (mstr:ConvertibleSeniorNotesDue202520272030And2031Member)

Key Players & Entities

• MICROSTRATEGY Inc (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-01 (date) — FILED AS OF DATE
• 703-848-8600 (phone) — BUSINESS PHONE
• 2024-01-01 (date) — Reporting period for Convertible Senior Notes Due Twenty Thirty One Member
• 2024-03-31 (date) — Reporting period for Convertible Senior Notes Due Twenty Thirty One Member
• 2023-12-31 (date) — Reporting period for ShareSettledRestrictedStockUnitsRSUMember
• 2021-06-14 (date) — Date associated with SecuredNotesDueTwentyTwentyEightMember

FAQ

Risk Factors

• Convertible Debt Obligations [medium — financial]: The company has significant convertible senior notes outstanding, which mature in various years up to 2031.
• Stock-Based Compensation [medium — financial]: The filing addresses share-settled restricted stock units and performance stock units, impacting equity.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides an update on the company's financial performance and position between annual reports.)

Key Financial Figures

• $0.001 — tered Class A common stock, par value $0.001 per share MSTR The Nasdaq Global Se

Filing Documents

• mstr-20240331.htm (10-Q) — 3358KB
• mstr-ex10_1.htm (EX-10.1) — 81KB
• mstr-ex10_2.htm (EX-10.2) — 15KB
• mstr-ex31_1.htm (EX-31.1) — 13KB
• mstr-ex31_2.htm (EX-31.2) — 13KB
• mstr-ex32_1.htm (EX-32.1) — 9KB
• 0000950170-24-051230.txt (&nbsp;) — 12490KB
• mstr-20240331.xsd (EX-101.SCH) — 1605KB
• mstr-20240331_htm.xml (XML) — 2360KB

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 1 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 2 Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended March 31, 2024 and 2023 3 Consolidated Statements of Stockholders' Equity (Deficit) as of March 31, 2024 4 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39 PART II. OTHER INFORMATION 40 Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 67 Item 5. Other Information 67 Item 6. Exhibits 68

- FINANCI AL INFORMATION

PART I - FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements MICROSTRATEGY INCORPORATED CONSOLIDATED B ALANCE SHEETS (in thousands, except per share data) March 31, December 31, 2024 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 81,326 $ 46,817 Restricted cash 2,402 1,856 Accounts receivable, net 115,150 183,815 Prepaid expenses and other current assets 42,714 35,407 Total current assets 241,592 267,895 Digital assets 5,074,152 3,626,476 Property and equipment, net 29,108 28,941 Right-of-use assets 55,093 57,343 Deposits and other assets 31,757 24,300 Deferred tax assets, net 919,837 757,573 Total assets $ 6,351,539 $ 4,762,528 Liabilities and Stockholders' Equity Current liabilities: Accounts payable, accrued expenses, and operating lease liabilities $ 41,866 $ 43,090 Accrued compensation and employee benefits 40,617 50,045 Accrued interest 10,878 1,493 Current portion of long-term debt, net 492 483 Deferred revenue and advance payments 215,955 228,162 Total current liabilities 309,808 323,273 Long-term debt, net 3,558,801 2,182,108 Deferred revenue and advance payments 6,486 8,524 Operating lease liabilities 58,430 61,086 Other long-term liabilities 17,552 22,208 Deferred tax liabilities 357 357 Total liabilities 3,951,434 2,597,556 Commitments and Contingencies Stockholders' Equity Preferred stock undesignated, $ 0.001 par value; 5,000 shares authorized; no shares issued or outstanding 0 0 Class A common stock, $ 0.001 par value; 330,000 shares authorized; 24,367 shares issued and 15,683 shares outstanding, and 23,588 shares issued and 14,904 shares outstanding, respectively 24 24 Class B convertible common stock, $ 0.001 par value; 165,000 shares authorized; 1,964 shares issued and outstanding, and 1,964 shares issued and outstanding, respectively 2 2 Additional paid-in capita

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (1) Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying Consolidated Financial Statements of MicroStrategy Incorporated ("MicroStrategy" or the "Company") are unaudited. In the opinion of management, all adjustments necessary for a fair statement of financial position and results of operations have been included. All such adjustments are of a normal recurring nature, unless otherwise disclosed. Interim results are not necessarily indicative of results for a full year. The Consolidated Financial Statements and Notes to Consolidated Financial Statements are presented as required by the United States Securities and Exchange Commission ("SEC") and do not contain certain information included in the Company's annual financial statements and notes. These financial statements should be read in conjunction with the Company's audited financial statements and the notes thereto filed with the SEC in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes in the Company's accounting policies since December 31, 2023. The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. (2) Recent Accounting Standards Crypto Assets In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets ("ASU 2023-08"). ASU 2023-08 requires in-scope crypto assets (including the Company's bitcoin holdings) to be measured at fair value in the statement of financial position, with gains and losses from changes in the fair value of such crypto assets recognized in net income each reporting period. ASU 2023-08 also requires certain interi

View Full Filing

View this 10-Q filing on SEC EDGAR