MicroStrategy Files Q3 2024 10-Q

TL;DR

MSTR Q3 10-Q filed. Financials look solid, keep an eye on debt.

AI Summary

MicroStrategy Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial data and disclosures relevant to investors are presented, including information on revenue, expenses, and balance sheet items.

Why It Matters

This filing provides crucial insights into MicroStrategy's financial health and strategic direction for the third quarter of 2024, impacting investor decisions.

Risk Assessment

Risk Level: medium — The company's significant holdings in Bitcoin and convertible debt introduce financial volatility and market risk.

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the specific date for which financial information is reported.)
• 20241031 — Filing Date (The date the document was officially submitted to the SEC.)

Key Players & Entities

• MICROSTRATEGY Inc (company) — Filer of the 10-Q
• September 30, 2024 (date) — End of the reporting period
• 20241031 (date) — Filing date
• 703-848-8600 (phone_number) — Company business phone number

FAQ

Key Financial Figures

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

Filing Documents

• mstr-20240930.htm (10-Q) — 4792KB
• mstr-ex4_1.htm (EX-4.1) — 8KB
• mstr-ex31_1.htm (EX-31.1) — 14KB
• mstr-ex31_2.htm (EX-31.2) — 14KB
• mstr-ex32_1.htm (EX-32.1) — 9KB
• img264269277_0.jpg (GRAPHIC) — 196KB
• img264269277_1.jpg (GRAPHIC) — 78KB
• 0000950170-24-119263.txt ( ) — 16874KB
• mstr-20240930.xsd (EX-101.SCH) — 1673KB
• mstr-20240930_htm.xml (XML) — 3524KB

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 1 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 2 Consolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months Ended September 30, 2024 and 2023 3 Consolidated Statements of Stockholders' Equity (Deficit) as of September 30, 2024 4 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 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 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45 Item 4.

Controls and Procedures

Controls and Procedures 45 PART II. OTHER INFORMATION 46 Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 73 Item 5. Other Information 73 Item 6. Exhibits 73

- 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) September 30, December 31, 2024 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 46,343 $ 46,817 Restricted cash 1,862 1,856 Accounts receivable, net 107,169 183,815 Prepaid expenses and other current assets 30,668 35,407 Total current assets 186,042 267,895 Digital assets 6,850,879 3,626,476 Property and equipment, net 27,517 28,941 Right-of-use assets 55,308 57,343 Deposits and other assets 51,109 24,300 Deferred tax assets, net 1,172,726 757,573 Total assets $ 8,343,581 $ 4,762,528 Liabilities and Stockholders' Equity Current liabilities: Accounts payable, accrued expenses, and operating lease liabilities $ 45,714 $ 43,090 Accrued compensation and employee benefits 51,686 50,045 Accrued interest 5,800 1,493 Current portion of long-term debt, net 509 483 Deferred revenue and advance payments 184,402 228,162 Total current liabilities 288,111 323,273 Long-term debt, net 4,211,949 2,182,108 Deferred revenue and advance payments 6,344 8,524 Operating lease liabilities 57,495 61,086 Other long-term liabilities 5,676 22,208 Deferred tax liabilities 357 357 Total liabilities 4,569,932 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; 191,684 shares issued and 183,000 shares outstanding, and 157,725 shares issued and 149,041 shares outstanding, respectively 192 24 Class B convertible common stock, $ 0.001 par value; 165,000 shares authorized; 19,640 shares issued and outstanding, and 19,640 shares issued and outstanding, respectively 20 2 Additional pa

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. On July 11, 2024, the Company announced a 10 -for-1 stock split of the Company's class A common stock and class B common stock. The stock split was effected by means of a stock dividend to the holders of record of the Company's class A common stock and class B common stock as of the close of business on August 1, 2024, the record date for the dividend. Shares held in treasury by the Company were not impacted by the stock split. The dividend was distributed after the close of trading on August 7, 2024 and trading commenced on a split-adjusted basis at market open on August 8, 2024. As a result of the stock split, all applicable share, per share, and equity award information has been retroactively adjusted in the Consolidated Financial Statements and Notes to Consolidated Financial Statements to reflect the stock split for all periods presented. 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 account

View Full Filing

View this 10-Q filing on SEC EDGAR