The following is a summary of the MicroStrategy Incorporated (MSTR) Q1 2024 Earnings Call Transcript:
Financial Performance:
MicroStrategy reported Q1 2024 revenue of $115.2 million, subscription services revenues amounted to $23 million, up 22% YoY.
Bitcoin acquisitions have been enabled through excess cash or through corporate debt capital raises or equity capital raises.
The company issued $800 million and $603.75 million of convertible notes due March 2030 and 2031 respectively, with proceeds used for Bitcoin investments.
Since Q3 2021, the company raised a total of $3.2 billion through ATM offerings aiming to increase Bitcoin holdings.
As of Q1 2024, the company increased unrestricted cash and cash equivalents on the balance sheet to $81.3 million.
Business Progress:
MicroStrategy is focusing on transitioning its business to the cloud, with subscription revenues evidencing its success.
The company continues to innovate in AI with the launch of Auto Express and other AI offerings.
MicroStrategy's cloud-native platform is now offered across Google Cloud Marketplace, Azure, and AWS.
The company is developing security software for Bitcoin, with new developments expected to be shared at an upcoming conference.
The company aims to convert as many clients as possible to the cloud, leveraging partnerships with hyperscalers; however, acknowledges potential short-term disruptions to product license and total revenue.
Future strategic focus remains on growing the cloud business, AI innovation and boosting Bitcoin holdings.
More details: MicroStrategy IR
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