International software solutions firm MicroStrategy has released its first-quarter revenue report. Revenue is up marginally, and the company remains committed to Bitcoin.
On May 1, MicroStrategy announced its financials for the first three months of 2023. The firm revealed that it had a net income for the first quarter of $461.2 million, or $31.79 per share on a diluted basis. Comparatively, it had a net loss of $130.8 million for the first quarter of 2022.
MicroStrategy Committed to Bitcoin
The total revenue for the period was $121.9 million, a 2.2% increase compared to the first quarter of 2022. Furthermore, product licenses and subscription services revenues for the first quarter were $36.2 million, a 23.4% increase over the same period in 2022.
However, there was a slight decline in product support revenues and other service revenues, it noted.
MicroStrategy President and Chief Executive Officer Phong Le commented that the durability of its enterprise Business Intelligence platform and the depth of its existing customer base continued to drive growth. He added that the firm was still committed to Bitcoin:
“The conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature.”
Moreover, the world’s largest digital asset gained 70% over the first quarter of 2023.
The firm’s Chief Financial Officer, Andrew Kang, explained that MicroStrategy strengthened its capital structure by reducing leverage by fully repaying its Bitcoin-backed loan in Q1.
Furthermore, it purchased another 7,500 BTC to bring the balance to 140,000. This is valued at approximately $3.9 billion at current prices.
“Our goals for the enterprise analytics software business remain to grow our revenues and transition that business to the cloud,” he said.
In April, company founder Michael Saylor converted his corporate email address into a BTC Lightning address.
MicroStrategy stock did not react very well to the news, falling 6.37% on the day. As a result, MSTR had slipped to $310 in after-hours trading. However, the firm has had a solid year, with share prices gaining 114% since the beginning of 2023.
Bitcoin Holdings Back in The Red
According to Bitcoin Treasuries, the firm is down 7% on its BTC holdings since the aggregate cost basis value equates to $4.2 billion.
The company is the largest commercial holder of Bitcoin. However, that huge 140,000 stack is back in the red following the crypto market correction.
Bitcoin would need to return to $30,000 for MicroStrategy to be back in the black again, but company executives appear unfazed.
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Source: https://beincrypto.com/microstrategy-reports-122m-revenue-committed-bitcoin/