Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 86

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 86
---
 quarter-to-quarter comparisons of our operating results may not be a good indication of our future performance.

E-5

TABLE OF CONTENTS

Share-based Compensation Expense As discussed in Note 11, Share-based Compensation, to the Consolidated Financial Statements, under our 2013 Stock Incentive Plan (as amended, the “2013 Equity Plan”) and 2023 Equity Incentive Plan (the “2023 Equity Plan”, and together with the 2013 Equity Plan, the “Stock Incentive Plans”), we have awarded stock options to purchase shares of our class A common stock, restricted stock units, performance stock units, and certain other stock-based awards. Each restricted stock unit and performance stock unit represents a contingent right to receive a share of our class A common stock upon the satisfaction of applicable vesting requirements. We also provide opportunities for eligible employees to purchase shares of our class A common stock under our 2021 Employee Stock Purchase Plan (the “2021 ESPP”). Share-based compensation expense (in thousands) from these awards was recognized in the following cost of revenues and operating expense line items for the periods indicated: setcolor;;;0>

|                                        |     | Years Ended December 31, |     |         |
|                                        |     |                     2023 |     |    2022 |
| Cost of subscription services revenues |     |                     $361 |     |    $304 |
| Cost of product support revenues       |     |                    2,156 |     |   2,039 |
| Cost of consulting revenues            |     |                    1,940 |     |   1,754 |
| Cost of education revenues             |     |                       99 |     |     177 |
| Sales and marketing                    |     |                   18,022 |     |  18,274 |
| Research and development               |     |                   13,549 |     |  13,896 |
| General and administrative             |     |                   33,444 |     |  27,175 |
| Total share-based compensation expense |     |                  $69,571 |     | $63,619 |

The $6.0 million increase in share-based compensation expense during 2023, as compared to the prior year, is primarily due to the grant of additional awards under the Stock Incentive Plans as part of the expansion of our equity award program worldwide and the revaluation of certain liability-classified stock-based awards, partially offset by the forfeiture of certain stock