Thank you for your time today and for your continued support of MicroStrategy. Software business operating expenses were $96.1 million, up 1.7% compared to $94.5 million in Q1 of last year. The increase was primarily due to higher G&A expenses this quarter, which was specifically related to an increase in employer-paid payroll taxes in connection with employee stock option exercises in the first quarter. However, overall operating expenses were also offset by lower costs in sales, marketing, and R&D, also consistent with recent quarters as we maintain strong discipline and expenses and we continue to optimize overall headcount. Noncash stock-based compensation expense was mostly flat year over year at $17.8 million for the quarter. In October 2002, the FASB and the IASB issued the Norwalk Agreement, which marked a significant step towards formalising their commitment to the convergence of US and international accounting standards.
- Board members are appointed by the FAF’s board of trustees for five-year terms and may serve for up to 10 years.
- Still, it also makes their financial reporting more transparent and understandable to investors and other financial market governance bodies.
- The FASB is governed by seven full-time board members, who are required to sever their ties to the companies or organizations they work for before joining the board.
- You’re not going to see it in any analog commodity because it’s impossible.
- MicroStrategy remains the largest corporate holder of bitcoin in the world, and we remain committed to our bitcoin acquisition strategy with the utmost conviction, long-term focus, and with a strong risk-managed approach.
- These principles are established by various accounting standard-setting organizations, with FASB being the primary one in the U.S.
During the same period, our total basic share count, comprised of total basic class A shares outstanding and total basic class B shares outstanding, increased by only 4.6%. This is in part due to the deferred dilution impact of leveraging convertible debt and our opportunistic execution of these financings which has resulted in tremendous value creation for our shareholders. The difference between our bitcoin accretion and the shared dilution is representative of the yield we are able to generate for our shareholders as a bitcoin development company. And overall, non-GAAP adjusted operating income or profit from the software business category was $6.9 million. But in the long run, we expect it to be more than offset by increases in subscription services revenue.
What Is the Financial Accounting Standards Board (FASB)?
When companies follow the accounting standards set by FASB, it promotes consistency in financial reporting, making it easier for investors to analyze and compare different entities. This fosters investor confidence, which is crucial for the functioning of capital markets. And it’s going to allow us to find more accretive capital markets opportunities in the future that we will avail ourselves of to the benefit of our shareholders. And so, in summary, bitcoin’s crossed the chasm to institutional adoption. Bitcoin is unique and is being uniquely recognized as the one institutional crypto asset.
We like to keep score every quarter and evaluate ourselves against all the relevant benchmarks. What you can see here in a nutshell is all of the enterprise software companies that we compete against in the business intelligence business and what does fasb do their performance since we embarked on our bitcoin strategy in the summer of 2020. And you can see we’re approximately 10x to 30x more in performance to any of those companies. I’ll start with first a recap of our software financial results.
Who They Apply To: The Application of GASB vs FASB Standards
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