Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 591

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 591
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 152,012

    Deferred other services revenue

    4,394

    7,059

    Total current deferred revenue and advance payments
     
    $
    237,974

    $
    228,162

    Non-current:

    Deferred product licenses revenue
     
    $
    174

    $
    0

    Deferred subscription services revenue

    2,263

    3,097

    Deferred product support revenue

    2,111

    4,984

    Deferred other services revenue

    422

    443

    Total non-current deferred revenue and advance payments
     
    $
    4,970

    $
    8,524

    Total current and non-current:

    Deferred product licenses revenue
     
    $
    1,951

    $
    3,579

    Deferred subscription services revenue

    109,382

    68,609

    Deferred product support revenue

    126,795

    156,996

    Deferred other services revenue

    4,816

    7,502

    Total current and non-current deferred revenue and advance payments
     
    $
    242,944

    $
    236,686

The portions of multi-year contracts that will be invoiced in the future are not presented on the balance sheet in “Accounts receivable, net” and “Deferred revenue and advance payments” and instead are included in the remaining performance obligation disclosure below.  Total deferred revenue and advance payments increased $6.3 million in 2024, as compared to the prior year, primarily due to (i) an increase in deferred revenue from subscription services contracts, partially offset by (ii) a decrease in deferred product support revenue from an increase in conversions from on-premises to subscription services contracts.

Our remaining performance obligation represents all future revenue under contract and includes deferred revenue and advance payments and billable non-cancellable amounts that will be invoiced and recognized as revenue in future periods. The remaining performance obligation excludes contracts that are billed in arrears, such as certain time and materials contracts. As of December 31, 2024, we had an aggregate transaction price of $454.9 million allocated to the remaining performance obligation related to subscription services, product support, product licenses, and other services contracts. We expect to recognize approximately $278.4 million of the remaining performance obligation over the next 12 months and the remainder