Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 88

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 88
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), and we use a residual approach to establish SSP for these revenue streams. As such, the establishment of SSP of our product support, consulting services, and education services directly impacts the amount of product licenses and subscription services revenues recognized, and therefore also impacts the overall timing of revenue recognition. We review and analyze the SSP ranges we have established for product support, consulting services, and education services semi-annually, and these SSP ranges do not change significantly year to year. We also perform analyses on a semi-annual basis using historical pricing data for both product license and subscription services transactions to assess whether the selling price is highly variable in order to support our conclusion that the residual method to estimate SSP of our product licenses and subscription services continues to be a fair allocation of the transaction price. In the future, SSP for our software and services could be impacted by various factors, including potential changes in our pricing practices, customer demand for our products and services, and various market or economic conditions. However, we consider the risk of significant volatility in our established SSP to be small given our historical transaction experience and internal processes to monitor SSP ranges on an ongoing basis and work with management in the event a trend that could impact the future ranges is detected. Results of Operations Comparison of the Years Ended December 31, 2023 and 2022 Revenues Except as otherwise indicated herein, the term “domestic” refers to operations in the United States and Canada and the term “international” refers to operations outside of the United States and Canada. Product licenses and subscription services revenues. The following table sets forth product licenses and subscription services revenues (in thousands) and related percentage changes for the periods indicated:

|                                                           |     | Years Ended December 31, |     |          |     | % Change |
|                                                           |     |                     2023 |     |     2022 |     |          |
| Product Licenses and Subscription Services Revenues:      |     |                          |     |          |     |          |
| Product Licenses                                          |     |                          |     |          |     |          |
| Domestic                                                  |     |                  $39,193 |     |  $54,794 |     | -28.5%   |
| International                                             |     |                   36,158 |     |   31,704 |     | 14.0%    |
| Total product licenses revenues                           |     |                   75,351 |     |   86,498 |     | -12.9%   |
| Subscription