Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 581

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 581
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    Domestic
     
    $
    19,803

    $
    39,193

    -49.5
    %

    International

    28,764

    36,158

    -20.4
    %

    Total product licenses revenues

    48,567

    75,351

    -35.5
    %

    Subscription Services

    Domestic

    66,820

    52,528

    27.2
    %

    International

    39,956

    28,651

    39.5
    %

    Total subscription services revenues

    106,776

    81,179

    31.5
    %

    Total product licenses and subscription services revenues
     
    $
    155,343

    $
    156,530

    -0.8
    %

Product licenses revenues. Product licenses revenues decreased $26.8 million during 2024, as compared to the prior year, primarily due to an overall decrease in the volume of deals. Our product licenses revenues may continue to experience declines in future periods as we continue to promote our cloud offering to new and existing customers.

Subscription services revenues. Subscription services revenues are derived from our cloud subscription service for commercial and government use and are recognized ratably over the service period in the contract. Subscription services revenues increased $25.6 million during 2024, as compared to the prior year, primarily due to conversions to cloud-based subscriptions from existing on-premises customers, a net increase in the use of subscription services by existing customers, and sales contracts with new customers. We expect our subscription services revenues to continue to grow in future periods as we continue to promote our cloud offering to new and existing customers.

Product support revenues.  The following table sets forth product support revenues (in thousands) and related percentage changes for the periods indicated:

    Years Ended December 31,

    2024

    2023

    % Change

    Product Support Revenues:

    Domestic
     
    $
    144,869

    $
    158,308

    -8.5
    %

    International

    98,936

    105,580

    -6.3
    %

    Total product support revenues
     
    $
    243,805

    $
    263,888

    -7.6
    %

Product support revenues are derived