- MicroStrategy’s Q2 revenue was $111.4 million, which is a 7.4% decline year-over-year and below the estimated $119.3 million.
- Revenue from product licenses and subscription services was $33.4 million, down 5.7% year-over-year, missing the estimate of $38.5 million.
- Product support revenue came in at $61.7 million, a 6.6% decrease year-over-year, slightly below the estimate of $62.6 million.
- Gross profit was $80.5 million, reflecting a 14% drop year-over-year, and fell short of the $91.6 million estimate.
- Total operating expenses saw a significant increase to $280.8 million compared to $120.0 million last year, greatly surpassing the estimate of $99.2 million.
- Research and development expenses were $30.3 million, up 3.3% year-over-year, just over the estimated $29.2 million.
- Operating loss was $200.3 million versus a loss of $26.7 million the previous year, sharply deviating from the estimated loss of $11.5 million.
- Adjusted loss per share was $7.62 compared to earnings per share (EPS) of $2.35 last year, far off from the estimated EPS of 18 cents (2 estimates).
- Loss per share was $5.74 compared to an EPS of $1.52 the previous year.
- Cash and cash equivalents stood at $66.9 million, a 1.4% increase year-over-year, which was higher than the estimated $40.8 million.
- Analyst ratings: 6 buys, 0 holds, 0 sells.
Microstrategy Inc Cl A on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following MicroStrategy Incorporated. In their recent report “MicroStrategy Incorporated: What Is Their Enhanced Bitcoin Acquisition Strategy? – Major Drivers,” Baptista Research highlights the company’s focus on integrating Bitcoin into its treasury while advancing its core software business. They discuss factors impacting the company’s price and conduct an independent valuation using a Discounted Cash Flow methodology.
Value Investors Club, another provider on Smartkarma, takes a bearish stance on MicroStrategy Inc in their report “Microstrategy Inc (MSTR) – Tuesday, Jan 9, 2024.” They point out the volatility caused by SEC approval of Bitcoin ETFs and suggest a trade pairing short sale of MSTR shares with the purchase of bitcoin ETFs. The fluctuating premium of MSTR’s enterprise value over SOTP value is expected to dissipate with the approval of bitcoin ETFs, according to their analysis published 3 months ago.
A look at Microstrategy Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Microstrategy Inc Cl A, a provider of business intelligence software, is showing a positive long-term outlook based on the Smartkarma Smart Scores. With a strong score of 4 in Growth, the company is likely to see significant expansion and development in the future. This indicates potential for increased market share and profitability. Momentum, with a score of 3, suggests that the company is gaining traction and its stock is experiencing upward movement, which could attract more investors.
However, the lower scores in Value (2), Dividend (1), and Resilience (2) highlight areas of weakness. Investors may need to carefully consider these factors before making investment decisions. While Microstrategy Inc Cl A has a solid technological platform and provides services across various industries, it may face challenges in terms of valuation, dividend payouts, and resilience to market fluctuations.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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