Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 582

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 582
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 from providing technical software support and software updates and upgrades to customers.  Product support revenues are recognized ratably over the term of the contract, which is generally one year.  Product support revenues decreased $20.1 million during 2024, as compared to the prior year, primarily due to certain existing customers converting from perpetual product licenses with separate support contracts to our subscription services offerings. Our product support revenues may experience declines in future periods as we continue to promote our cloud offering to new and existing customers.

52

Other services revenues.  The following table sets forth other services revenues (in thousands) and related percentage changes for the periods indicated:

    Years Ended December 31,

    2024

    2023

    % Change

    Other Services Revenues:

    Consulting

    Domestic
     
    $
    27,646

    $
    35,261

    -21.6
    %

    International

    33,855

    36,814

    -8.0
    %

    Total consulting revenues

    61,501

    72,075

    -14.7
    %

    Education

    2,807

    3,768

    -25.5
    %

    Total other services revenues
     
    $
    64,308

    $
    75,843

    -15.2
    %

Consulting revenues.  Consulting revenues are derived from helping customers plan and execute the deployment of our software. Consulting revenues decreased $10.6 million during 2024, as compared to the prior year, primarily due to a decrease in demand for domestic consulting services.

Education revenues.  Education revenues are derived from the education and training that we provide to our customers to enhance their ability to fully utilize the 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