MicroStrategy Q1 Earnings Highlights: Revenue Beat, Cloud Update And How Many Bitcoin Company Holds

Software company MicroStrategy Inc MSTR reported first-quarter financial results after the market close Monday. Here are the key highlights.

MicroStrategy's Q1: MicroStrategy reported first-quarter revenue of $121.9 million, up 2.2% year-over-year. The revenue total came in ahead of Street consensus estimates of $119 million, according to data from Benzinga Pro.

The company reported revenue for its product licenses and subscriptions segment of $36.2 million in the quarter, up 23.4% year-over-year. Product support revenue was $65.5 million in the first quarter, down 2.5% year-over-year.

The company reported adjusted earning per share of $30.59, beating Street estimates.

MicroStrategy ended the quarter with cash and cash equivalents of $94.3 million.

Bitcoin Holdings Update: At the end of the first quarter, MicroStrategy had approximately 140,000 Bitcoin BTC, with a carried value of $2 billion.

The company said its cost basis of the Bitcoin was $4.17 billion and the current market value at the end of the quarter was $3.99 billion.

“The durability of our enterprise BI platform and the depth of our existing customer base continued to act as the drivers of growth in total revenue during the first quarter of 2023,” MicroStrategy CEO Phong Le said. “The conviction is our bitcoin strategy remains strong as the digital asset environment continues to mature.”

Chief Financial Officer Andrew Kang highlighted the company paying back a Bitcoin-backed loan, which improved its capital structure and reduced leverage.

“We also continued to strategically manage our balance sheet through the addition of 7,500 Bitcoin in the quarter for a total of 140,000,” Kang said.

Related Link: Trading Strategies For MicroStrategy Stock After Q4 Earnings

What’s Next For MicroStratgegy: The company will hold a conference call to discuss results at 5 p.m. ET. No forward guidance was given by the company. CEO Le shared one upcoming highlight.

“Furthermore, we are extremely excited to return to an in-person MicroStrategy World, showcasing the competitive advantages of our MicroStrategy One platform and highlighting the key areas of product innovation that will carry MicroStrategy into the future," Le said.

MicroStrategy World kicked off Monday,  goes through Thursday, May 4 and is held in Orlando, Florida.

“Our goals for the enterprise analytics software business remain to grow our revenues and transition that business to the cloud while rigorously managing costs and strengthening margin as we focus on product innovation and winning market share," Kang said.

MSTR Price Action: MicroStrategy shares are up 1% to $311.10 in after-hours trading Monday.

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