MicroStrategy Incorporated reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a decline in total revenues, which amounted to $116.1 million for the three months ended September 30, 2024, down from $129.5 million in the same period of 2023. For the nine months, revenues decreased to $342.8 million from $371.8 million year-over-year. The decline was attributed to a substantial drop in product licenses revenue, which fell by 53.9% to $11.1 million, while subscription services revenue increased by 32.5% to $27.8 million.
Gross profit also decreased, totaling $81.7 million for the third quarter, compared to $102.8 million in the prior year. Operating expenses surged dramatically to $514.3 million, primarily due to digital asset impairment losses of $412.1 million, compared to $33.6 million in the same quarter of 2023. This led to a net loss of $340.2 million for the three months ended September 30, 2024, compared to a net loss of $143.4 million in the same period of 2023. For the nine months, the net loss was $495.9 million, a stark contrast to a net income of $340.0 million in the previous year.
As of September 30, 2024, MicroStrategy's total assets increased to $8.3 billion from $4.8 billion at the end of 2023, driven by a substantial rise in digital assets, which reached $6.9 billion, up from $3.6 billion. However, current assets decreased to $186.0 million, down from $267.9 million. The company’s long-term debt rose significantly to $4.2 billion from $2.2 billion, reflecting new convertible notes issued during the year.
Strategically, MicroStrategy completed a 10-for-1 stock split on August 7, 2024, and announced plans to adopt ASU 2023-08, which will require the fair value measurement of crypto assets starting January 1, 2025. The company also indicated that it may be subject to a 15% corporate alternative minimum tax beginning in 2026, depending on its financial performance.
In terms of workforce, MicroStrategy had 1,637 employees as of September 30, 2024, with a notable increase in share-based compensation expenses due to additional awards under its Stock Incentive Plans. The company continues to focus on its Bitcoin acquisition strategy, holding approximately 252,220 bitcoins, which it views as a long-term treasury reserve asset.
About MICROSTRATEGY Inc
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