Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 318

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1B
Chunk 318
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 features and functionality of our software. These offerings include self-tutorials, custom course development, joint training with customers’ internal staff, and standard course offerings, with pricing dependent on the specific offering delivered.  Education revenues decreased $1.0 million during 2024, as compared to the prior year, primarily due to a decrease in demand for education services.

Costs and Expenses

Cost of revenues.  The following table sets forth cost of revenues (in thousands) and related percentage changes for the periods indicated:

    Years Ended December 31,

    2024

    2023

    % Change

    Cost of Revenues:

    Product licenses and subscription services:

    Product licenses
     
    $
    3,060

    $
    1,929

    58.6
    %

    Subscription services

    42,440

    31,776

    33.6
    %

    Total product licenses and subscription services

    45,500

    33,705

    35.0
    %

    Product support

    33,289

    22,434

    48.4
    %

    Other services:

    Consulting

    48,374

    51,311

    -5.7
    %

    Education

    2,305

    2,494

    -7.6
    %

    Total other services

    50,679

    53,805

    -5.8
    %

    Total cost of revenues
     
    $
    129,468

    $
    109,944

    17.8
    %

Cost of product licenses revenues.  Cost of product licenses revenues consists of referral fees paid to channel partners, the costs of product manuals and media, and royalties paid to third-party software vendors. Cost of product licenses revenues did not materially change during 2024, as compared to the prior year.

Cost of subscription services revenues.  Cost of subscription services revenues consists of equipment, facility and other related support costs (including cloud hosting infrastructure costs), and personnel and related overhead costs. Cost of subscription services revenues increased $10.7 million during 2024, as compared to the prior year, primarily due to a $10.0 million increase in cloud hosting infrastructure costs, which is a result of the increased usage by new and existing cloud subscription services customers. 

53

Cost of product support revenues.  Cost