What Happened: MicroStrategy reported second-quarter revenue of $120.4 million, which was down 1% year-over-year. The total missed a Street consensus estimate of $126.3 million, according to data from Zenger News Pro.
The company reported second-quarter adjusted earnings per share of $2.35, which beat a Street consensus estimate of 71 cents.
Revenue was split as follows:
- Product licenses: $15.5 million
- Subscription services: $19.9 million
- Product support: $66.1 million
The highlight for the company was subscription services revenue, which was up 42% year-over-year. The company also said software licenses revenue of $35.4 million was up 4% year-over-year.
“Our new MicroStrategy ONE platform is the most important product innovation in the history of our company because it represents a fundamental shift in our industry to harness the power of business intelligence and artificial intelligence together to upgrade the way organizations do business. The growth in our recurring revenue this quarter illustrated the strength of our enterprise cloud platform, despite ongoing macroeconomic headwinds,” MicroStrategy CEO Phong Le said.
Bitcoin Update: MicroStrategy said it acquired 12,800 Bitcoins since the first quarter, spending $361.4 million, or around $28,233 per Bitcoin.
The company now holds 152,800 Bitcoins as of July 31, 2023. MicroStrategy has spent a total of $4.53 billion, or around $29,672 each, for the Bitcoins it owns.
“Our bitcoin holdings increased to 152,800 bitcoins as of July 31, 2023, with the addition in the second quarter of 12,333 bitcoins being the largest increase in a single quarter since Q2 2021. We efficiently raised capital through our at-the-market equity program and used cash from operations to continue to increase bitcoins on our balance sheet. And we did so against the promising backdrop of increasing institutional interest, progress on accounting transparency, and ongoing regulatory clarity for bitcoin,” MicroStrategy Chief Financial Officer Andrew Kang said.
MSTR, BTC Price Action: MicroStrategy shares are down slightly to $433.64 in after-hours trading at the time of writing, versus a 52-week trading range of $132.56 to $475.09.
Bitcoin trades at $29,203.38 at the time of writing versus a 52-week trading range of $15,599.05 to $31,814.51.
Produced in association with Benzinga