Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 215

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 215
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005 |     |  12,134 |     |   7.2% |     |            36,546 |     |  38,326 |     | -4.6%  |
| Education                                        |     |                549 |     |     626 |     | -12.3% |     |             1,693 |     |   1,862 |     | -9.1%  |
| Total other services                             |     |             13,554 |     |  12,760 |     |   6.2% |     |            38,239 |     |  40,188 |     | -4.8%  |
| Total cost of revenues                           |     |            $34,349 |     | $26,661 |     |  28.8% |     |           $95,299 |     | $81,723 |     | 16.6%  |

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 for the three months ended September 30, 2024, as compared to the same period in the prior year. Cost of product licenses revenues increased $0.8 million for the nine months ended September 30, 2024, as compared to the same period in the prior year, primarily due to the amortization of the prepaid patent license received as part of the settlement agreement with Daedalus, as described in Note 6, Commitments and Contingencies, to the Consolidated Financial Statements.

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TABLE OF CONTENTS

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 $3.4 million for the three months ended September 30, 2024, as compared to the same period in the prior year, primarily due to a $2.9 million increase in cloud hosting infrastructure costs, which is a result of the increased usage by new and existing cloud subscription services customers. Cost of subscription services revenues increased $6.5 million for the nine months ended September 30, 2024, as compared to the same period in the prior year, primarily due to a $6.2 million increase in cloud