MSTR Earnings Prediction
The chart below shows how MSTR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MSTR sees a -5.86% change in stock price 10 days leading up to the earnings, and a -0.34% change 10 days following the report. On the earnings day itself, the stock moves by -1.33%. This data can give you a slight idea of what to expect for the next quarter's release.
MSTR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
120.70M
-3.04%
3.99%
Gross Margin
71.69%
-7.29%
1.82%
Operating Margin
-8.59%
201.40%
-51.36%
Net Margin
-555.78%
-876.23%
89.64%
EPS
-3.02
-874.36%
75.58%
No Data Available
MSTR Earnings Analysis
Microstrategy Inc Corporation (MSTR.O) Earnings Conference Call
Positive
Subscription Growth Momentum: In Q4 2024, current subscription billings increased by 50% year over year, while subscription services revenues rose by 48% year over year, indicating strong momentum in the managed cloud platform.
Fair Value Accounting Impact: The adoption of FASB's fair value accounting standard for Bitcoin holdings will result in a one-time cumulative increase of $12,750,000,000 to the opening balance of retained earnings in Q1 2025, reflecting the revaluation of Bitcoin to market value.
Nasdaq 100 Index Inclusion: Strategy was officially included in the Nasdaq 100 index in December 2024, providing exposure to its Bitcoin strategy for investors in QQQ and other Nasdaq 100 index funds, which collectively manage over $550 billion in assets.
Bitcoin Acquisition Growth: In 2024, Strategy acquired an additional 258,320 Bitcoin at a total cost of $22,100,000,000, with a market value of $46,000,000,000 as of February 2, 2025, demonstrating significant growth in Bitcoin holdings.
Record Equity and Convertible Bonds: The company raised $18,800,000,000 through its equity offering program and $6,200,000,000 through convertible notes in 2024, marking it as the largest issuer of convertible bonds in a single calendar year in the last decade.
Negative
Software Revenue Decline: Total software revenues decreased by 3% year over year in Q4, amounting to approximately $121,000,000, while full year revenues fell by 7% to approximately $464,000,000.
Operating Expenses Overview: Operating expenses for the software business increased by 2% year over year, totaling approximately $396,000,000 for the full year, despite a 6% decrease in Q4 compared to the previous year.
Digital Asset Impairment Losses: Digital asset impairment charges reached approximately $1,000,000,000 in Q4 and approximately $1,800,000,000 for the full year, indicating significant losses on Bitcoin holdings.
Bitcoin Purchase Price Analysis: The average purchase price of Bitcoin in Q4 was $93,600, which is higher than the market value of Bitcoin at the end of the quarter, leading to potential unrealized losses.
Slower Growth Anticipation: The company anticipates a slower growth rate due to potential unrealized capital gains tax on crypto assets, which could impact future capital raising strategies.
MSTR FAQs
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MSTR Earning Call Sentiment
Earnings call transcript: Strategy's Q4 2024 earnings miss expectations
MSTR.O
5.09%Positive
The earnings call presents a mixed outlook. While there is optimism in subscription growth and Bitcoin yield, concerns arise from declining software revenues, increased costs, and unclear tax management strategies. The capital raising plans and leverage management are positive, but the transition challenges and potential economic impacts create uncertainty. The Q&A session revealed some concerns about management's clarity, affecting sentiment. Overall, the sentiment remains neutral, indicating a balanced view of positive and negative factors, suggesting minimal short-term stock price movement.
