Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 135

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 135
---
 associated with multi-year contracts. During the years ended December 31, 2023, 2022, and 2021, there were no significant impairments to the Company’s contract assets, nor were there any significant changes in the timing of the Company’s contract assets being reclassified to accounts receivable. Contract liabilities are amounts received or due from customers in advance of the Company transferring the software or services to the customer and presented as “Deferred revenue and advance payments” in the Consolidated Balance Sheets. In the case of multi-year service contract arrangements, the Company generally does not invoice more than one year in advance of services and does not record deferred revenue for amounts that have not been invoiced. Revenue is subsequently recognized in the period(s) in which control of the software or services is transferred to the customer. The Company’s “Accounts receivable, net” and “Deferred revenue and advance payments” balances in the Consolidated Balance Sheets include unpaid amounts related to contracts under which the Company has an enforceable right to invoice the customer for non-cancellable and/or non-refundable software and services. Changes in accounts receivable and changes in deferred revenue and advance payments are presented net of these unpaid amounts in “Operating activities” in the Consolidated Statements of Cash Flows.

E-44

TABLE OF CONTENTS

Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of:

|                                                         |     | December 31, |     |          |
|                                                         |     |         2023 |     |     2022 |
| Current:                                                |     |              |     |          |
| Deferred product licenses revenue                       |     |       $3,579 |     |   $2,825 |
| Deferred subscription services revenue                  |     |       65,512 |     |   51,861 |
| Deferred product support revenue                        |     |      152,012 |     |  155,366 |
| Deferred other services revenue                         |     |        7,059 |     |    7,376 |
| Total current deferred revenue and advance payments     |     |     $228,162 |     | $217,428 |
| Non-current:                                            |     |              |     |          |
| Deferred product licenses revenue                       |     |           $0 |     |   $2,742 |
| Deferred subscription services revenue                  |     |        3,097 |     |    3,030 |
| Deferred product support revenue                        |