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Contact : MicroStrategy Incorporated Investor Relations ir@microstrategy.com ( 703 ) 848-8600 MicroStrategy Announces Third Quarter 2021 Financial Results TYSONS CORNER , Va . , October 28 , 2021 - MicroStrategy® Incorporated ( Nasdaq : MSTR ) ( " MicroStrategy " ) , the largest independent publicly - traded business intelligence company , today announced financial results for the three month period ended September 30 , 2021 ( the third quarter of its 2021 fiscal year ) . " MicroStrategy delivered strong third quarter results that demonstrated successful execution on both our operational and digital asset strategies . Overall demand for the MicroStrategy platform continued to increase , and we are pleased with the growing interest and adoption of our cloud solutions , " said Michael J. Saylor , CEO , MicroStrategy . " We also significantly expanded our bitcoin holdings in the quarter , adding nearly 9,000 bitcoins to our holdings after successfully raising capital in the quarter through our at - the - market equity offering . Today , MicroStrategy is the world's largest publicly traded corporate owner of bitcoin with over 114,000 bitcoins . We will continue to evaluate opportunities to raise additional capital to execute on our bitcoin strategy . " Third Quarter 2021 Financial Highlights • Revenues : Total revenues for the third quarter of 2021 were $ 128.0 million , a 0.5 % increase , compared to the third quarter of 2020. Total revenues for the third quarter of 2021 did not materially change on a non - GAAP constant currency basis . Product licenses and subscription services revenues for the third quarter of 2021 were $ 36.7 million , a 3.2 % decrease , or a 3.1 % decrease on a non - GAAP constant currency basis , compared to the third quarter of 2020. Product support revenues for the third quarter of 2021 were $ 70.4 million , a 1.4 % decrease , or a 2.0 % decrease on a non - GAAP constant currency basis , compared to the third quarter of 2020. Other services revenues for the third quarter of 2021 were $ 20.9 million , a 15.1 % increase , or a 14.3 % increase on a non - GAAP constant currency basis , compared to the third quarter of 2020 . • Gross Profit : Gross profit for the third quarter of 2021 was $ 105.7 million , representing an 82.6 % gross margin , compared to a gross margin of 82.9 % in the third quarter of 2020 . • Operating Expenses : Operating expenses for the third quarter of 2021 were $ 155.3 million , a 23.3 % increase compared to the third quarter of 2020. Operating expenses include impairment losses on MicroStrategy's digital assets , which were $ 65.2 million during the third quarter of 2021 , compared to $ 44.2 million in the third quarter of 2020 . • Loss from Operations : Loss from operations for the third quarter of 2021 was $ 49.7 million versus $ 20.3 million for the third quarter of 2020. Non - GAAP income from operations , which excluded share - based compensation expense and digital asset impairment losses , was $ 27.7 million for the third quarter of 2021 versus $ 26.5 million for the third quarter of 2020 . • Net Loss : Net loss for the third quarter of 2021 was $ 36.1 million , or $ 3.61 per share on a diluted basis , as compared to net loss of $ 14.2 million , or $ 1.48 per share on a diluted basis , for the third quarter of 2020. Non GAAP net income , which excluded share - based compensation expense , digital asset impairment losses , interest expense arising from the amortization of debt issuance costs , and related income tax effects , was $ 18.6 million , or $ 1.86 per share on a non - GAAP diluted basis , for the third quarter of 2021 , as compared to non - GAAP net income of $ 19.8 million , or $ 2.06 per share on a non - GAAP diluted basis , for the third quarter of 2020 . • Cash and Cash Equivalents : As of September 30 , 2021 , MicroStrategy had cash and cash equivalents of $ 57.0 million , as compared to $ 59.7 million as of December 31 , 2020 , a decrease of $ 2.7 million .