MicroStrategy has released its Q1 2023 financial results and recorded a net income of $461.2 million.
MicroStrategy, the self-proclaimed largest independent publicly-traded business intelligence company, has released its financial results from January to March 31, 2023.
The company recorded a total revenue of $121.9 million in Q1, 2023, a 2.2% increase compared to Q1, 2022, and a 5.7% increase on a non-GAAP constant currency basis.
Subscription services and product licenses for Q1 2023 were $36.2 million, a 23.4% increase or a 29.5% increase on a constant currency basis compared to Q1 2022.
The company recorded a 2.5% decrease in product support revenue at $65.5 million. This is a 0.3% decrease on a non-GAAP constant currency basis compared to Q1, 2022.
Other service revenues decreased by 11.2% to $20.2 million. The decrease is equivalent to a 7.5% decrease on a non-GAAP constant currency basis.
MicroStrategy Q1 2023 gross profit was $94.0 million, equivalent to 77.1% gross margin compared to $93.6 million and 78.5% gross margin in Q1 2022.
The company’s operating expenses have decreased by 56.6% compared to Q1 2022, to $114.3 million. The expenses include impairment losses on MicroStrategy’s digital assets, which have fallen from $170.1 million to $18.9 million.
The operations and net income loss had decreased from $170.0 million in Q1 2022 to $20.3 million.
MicroStrategy aims to grow even bigger
The company’s president and CEO, Phong Le, said that the company’s BI platform and the existing customer base are the main drivers of the revenue recorded. The company’s Bitcoin strategy is still foolproof as the digital asset industry matures.
Le also expressed the company’s excitement about returning to the in-person MicroStrategy World. The in-person MicroStrategy World will help them display the competitive advantages of the in-person MicroStrategy World and the key product innovations that will carry the company in the future.
MicroStrategy Chief Financial Officer Andrew Kang said the company strengthened its capital structure by repaying its Bitcoin-backed loan. The company also managed its balance sheet by adding 7,500 bitcoin to 140,000.