$1.34 billion Net Bookings, with outperformance
in Grand Theft Auto V and Grand Theft Auto Online, Red Dead
Redemption series, and Toon Blast
Company updates outlook for fiscal 2024,
including Net Bookings of $5.25 to $5.3 billion
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported
results for the third quarter of its fiscal year 2024, ended
December 31, 2023. For further information, please see the third
quarter fiscal 2024 results slide deck posted to the Company’s
investor relations website at take2games.com/ir.
Management Comments
"We achieved solid third quarter results, including Net Bookings
of $1.3 billion. Grand Theft Auto V and Grand Theft Auto Online,
the Red Dead Redemption series, and Zynga’s in-app purchases, led
by Toon Blast, exceeded our expectations, as we launched engaging
new content, partnerships, and activations. This was partially
offset by some softness in mobile advertising and sales for NBA
2K24," said Strauss Zelnick, Chairman and CEO of Take-Two.
"We are reducing our outlook for the year to reflect these
factors, as well as a planned release moving out of the fourth
quarter, and increased marketing for Zynga’s new hit mobile game,
Match Factory!, which we believe will enable us to scale the title
meaningfully. Our revised Net Bookings forecast is $5.25 to $5.3
billion."
"Our strategy is anchored in creativity, innovation, and
efficiency. We are currently working on a significant cost
reduction program across our entire business to maximize our
margins, while still investing for growth. These measures are
incremental to, and more robust than, our prior cost reduction
program, and we aim to achieve greater operating leverage as we
roll out our outstanding release schedule.”
"We have always managed Take-Two for the long-term. Our
Company's potential is vast and unique, driven by our creative
talent, our owned and controlled IP, and our groundbreaking
pipeline for fiscal 2025 and beyond. As we focus on our strategic
priorities, we are confident that we will grow our Net Bookings,
enhance our profitability, and continue to deliver value for our
shareholders.”
Third Quarter Fiscal 2024 Financial and
Operational Highlights
- Total Net Bookings* decreased 3% to $1.34 billion, as compared
to $1.38 billion during last year’s fiscal third quarter.
- Net Bookings from recurrent consumer spending** decreased 7%
and accounted for 75% of total Net Bookings.
- The largest contributors to Net Bookings were NBA® 2K24, Grand
Theft Auto® Online and Grand Theft Auto V, Toon Blast™, Empires
& Puzzles™, our hyper-casual mobile portfolio, Red Dead
Redemption® 2 and Red Dead Online, Words With Friends™, Grand Theft
Auto: The Trilogy - The Definitive Edition, and Merge
Dragons!™.
- GAAP net revenue decreased 3% to $1.37 billion, as compared to
$1.41 billion in last year’s fiscal third quarter.
- Recurrent consumer spending** decreased 7% and accounted for
76% of total GAAP net revenue.
- The largest contributors to GAAP net revenue were NBA 2K24 and
NBA 2K23, Grand Theft Auto Online and Grand Theft Auto V, Toon
Blast, Empires & Puzzles, our hyper-casual mobile portfolio,
Red Dead Redemption 2 and Red Dead Online, Words With Friends,
Merge Dragons!, and Grand Theft Auto: The Trilogy - The Definitive
Edition.
- GAAP net loss was $91.6 million, or $0.54 per share, as
compared to $153.4 million, or $0.91 per share, for the comparable
period last year.
- Our GAAP results include an impairment charge of $53.4 million
related to intangible assets.
* Net Bookings is our operational metric and defined as the net
amount of products and services sold digitally or sold-in
physically during the period, and includes licensing fees,
merchandise, in-game advertising, strategy guides and publisher
incentives. ** Recurrent consumer spending is generated from
ongoing consumer engagement and includes virtual currency, add-on
content, in-game purchases and in-game advertising.
Third Quarter Fiscal 2024 Financial
Results
The following data is used internally by the Company’s
management and Board of Directors to adjust the Company’s GAAP and
Non-GAAP financial results in order to facilitate comparison of its
operating performance between periods and to better understand its
core business and future outlook:
Three Months Ended December
31, 2023
Financial Data
in millions
Statement of
Operations
Change in deferred net revenue
and related cost of revenue
Stock-based
compensation
Amortization and impairment of
acquired intangibles
Business acquisition
Other (a)
GAAP
Total net revenue
$1,366.3
(28.5)
Cost of revenue
688.2
(6.4)
(230.1)
Gross profit
678.1
(28.5)
6.4
230.1
Operating expenses
807.6
(79.5)
(19.0)
10.9
(1.3)
(Loss) income from operations
(129.5)
(28.5)
85.9
249.1
(10.9)
1.3
Interest and other, net
(22.5)
(1.8)
1.8
3.8
(Loss) gain on fair value adjustments,
net
(0.3)
0.3
(Loss) income before income
taxes
(152.3)
(30.3)
85.9
249.1
(9.1)
5.4
Non-GAAP
EBITDA
146.5
(28.5)
85.9
(12.6)
5.1
Note: For management reporting purposes, the table above assumes
a management tax rate of 18% and a fully diluted share count of
172.7 million in order to calculate diluted net income per
share.
(a) Other includes adjustments for (i) the revaluation of the
Turkish Lira against the U.S. Dollar, (ii) business reorganization
expenses, and (iii) fair value adjustments related to certain
equity investments.
Outlook for Fiscal 2024
Take-Two is revising its outlook for the fiscal year ending
March 31, 2024 and providing its initial outlook for its fiscal
fourth quarter ending March 31, 2024:
Fiscal Year Ending March 31, 2024
The Company is also providing selected data, which is used
internally by its management and Board of Directors to adjust the
Company’s GAAP and Non-GAAP financial outlook in order to
facilitate comparison of its operating performance between periods
and to better understand its core business and future outlook:
Fiscal Year Ending March 31,
2024
Financial Data
$ in millions except for per
share amounts
Outlook (1)
Change in deferred net revenue
and related cost of revenue
Stock-based
compensation
Amortization and impairment of
acquired intangibles
Business acquisition and other
(a)
GAAP
Total net revenue
$5,270 to $5,320
$(20)
Cost of revenue
$2,787 to $2,806
$(27)
$(991)
$10
Operating expenses
$3,545 to $3,555
$(309)
$(115)
$(200)
Interest and other, net
$110
$1
$(22)
(Loss) income before income
taxes
$(1,172) to $(1,151)
$(21)
$336
$1,106
$212
Net loss
$(1,013) to $(995)
Net loss per share
$(5.95) to $(5.85)
Net cash provided by operating
activities
approximately $90
Capital expenditures
approximately $150
Non-GAAP
EBITDA
$313 to $334
$(20)
$336
$25
Adjusted Unrestricted Operating Cash
Flow
approximately $100
Operational metric
Net Bookings
$5,250 to $5,300
- Management reporting tax rate anticipated to be 18%
- Share count used to calculate GAAP net loss per share is
expected to be 170.1 million
- Share count used to calculate management reporting diluted net
income per share is expected to be 172.4 million
(a) Other includes adjustments for (i) the revaluation of the
Turkish Lira against the U.S. Dollar, (ii) business reorganization
expenses, and (iii) fair value adjustments related to certain
equity investments.
Fourth Quarter Ending March 31, 2024
The Company is also providing selected data, which is used
internally by its management and Board of Directors to adjust the
Company’s GAAP and Non-GAAP financial outlook in order to
facilitate comparison of its operating performance between periods
and to better understand its core business and future outlook:
Three Months Ending March 31,
2024
Financial Data
$ in millions except for per share
amounts
Outlook (1)
Change in deferred net revenue
and related cost of revenue
Stock-based
compensation
Amortization of intangible
assets
Business acquisition and
other
GAAP
Total net revenue
$1,323 to $1,373
$(57)
Cost of revenue
$609 to $628
$(3)
$(6)
$(164)
Operating expenses
$896 to $906
$(82)
$(20)
$6
Interest and other, net
$30
$(2)
(Loss) income before income
taxes
$(213) to $(192)
$(54)
$88
$184
$(4)
Net loss
$(170) to $(153)
Net loss per share
$(1.00) to $(0.90)
Non-GAAP
EBITDA
$33 to $55
$(54)
$88
$(6)
Operational metric
Net Bookings
$1,270 to $1,320
- Management reporting tax rate anticipated to be 18%
- Share count used to calculate GAAP net loss per share is
expected to be 170.6 million
- Share count used to calculate management reporting diluted net
income per share is expected to be 173.0 million
1)
The individual components of the financial
outlook may not foot to the totals, as the Company does not expect
actual results for every component to be at the low end or high end
of the outlook range simultaneously.
Key assumptions and dependencies underlying the Company’s
outlook include: a continuation of the current economic backdrop;
the timely delivery of the titles included in this financial
outlook; continued growth in the installed base of PlayStation 5
and Xbox Series X|S, as well as engagement on Xbox One and
PlayStation 4; the ability to develop and publish products that
capture market share for these current generation systems while
also leveraging opportunities on PC, mobile and other platforms;
factors affecting our performance on mobile, such as player
acquisition costs; our ongoing focus on our live services portfolio
and new game pipeline; and stable foreign exchange rates. See also
“Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following have been released since October 1, 2023:
Label
Product
Platforms
Release Date
Zynga
Top Troops
iOS, Android
October 3, 2023
2K
Borderlands 3 Ultimate Edition
Switch
October 6, 2023
2K
NBA 2K24 Arcade Edition
Apple Arcade
October 24, 2023
Zynga
Match Factory!
iOS
November 7, 2023
Private Division
Rollerdrome
Xbox Series X|S
November 28, 2023
Rockstar Games
Grand Theft Auto Online: The Chop Shop
PS4, PS5, XBox One, Xbox Series X|S,
PC
December 12, 2023
Zynga
Match Factory!
Android
December 21, 2023
Take-Two's future lineup announced to-date includes:
Label
Product
Platforms
Release Date
2K
WWE 2K24
PS4, PS5, Xbox One, Xbox Series X|S,
PC
March 8, 2024
Private Division
Penny's Big Breakaway
PS5, Xbox Series X|S, PC, Switch
Q1 Calendar 2024
Private Division
No Rest for the Wicked
Early Access on PC
Q2 Calendar 2024
Zynga
Game of Thrones: Legends
iOS, Android
Calendar 2024
Zynga
Star Wars Hunters
iOS, Android, Switch
Calendar 2024
Private Division
Tales of the Shire
TBA
Fiscal 2025
Rockstar Games
Grand Theft Auto VI
PS5, Xbox Series X|S
Calendar 2025
2K
Top Spin 2K25
TBA
TBA
Ghost Story Games
Judas
PS5, Xbox Series X|S, PC
TBA
Conference Call
Take-Two will host a conference call today at 4:30 p.m. Eastern
Time to review these results and discuss other topics. The call can
be accessed by dialing (877) 407-0984 or (201) 689-8577. A live
listen-only webcast of the call will be available by visiting
http://ir.take2games.com and a replay will be available following
the call at the same location.
Non-GAAP Financial
Measures
In addition to reporting financial results in accordance with
U.S. generally accepted accounting principles (GAAP), the Company
uses Non-GAAP measures of financial performance: Adjusted
Unrestricted Operating Cash Flow, which is defined as GAAP net
cash from operating activities, adjusted for changes in restricted
cash, and EBITDA, which is defined as GAAP net income (loss)
excluding interest income (expense), provision for (benefit from)
income taxes, depreciation expense, and amortization and impairment
of acquired intangibles.
The Company’s management believes it is important to consider
Adjusted Unrestricted Operating Cash Flow, in addition to net cash
from operating activities, as it provides more transparency into
current business trends without regard to the timing of payments
from restricted cash, which is primarily related to a dedicated
account limited to the payment of certain internal royalty
obligations.
The Company’s management believes it is important to consider
EBITDA, in addition to net income, as it removes the effect of
certain non-cash expenses, debt-related charges, and income taxes.
Management believes that, when considered together with reported
amounts, EBITDA is useful to investors and management in
understanding the Company’s ongoing operations and in analysis of
ongoing operating trends and provides useful additional information
relating to the Company’s operations and financial condition.
These Non-GAAP financial measures are not intended to be
considered in isolation from, as a substitute for, or superior to,
GAAP results. These Non-GAAP financial measures may be different
from similarly titled measures used by other companies. In the
future, Take-Two may also consider whether other items should also
be excluded in calculating these Non-GAAP financial measures used
by the Company. Management believes that the presentation of these
Non-GAAP financial measures provides investors with additional
useful information to measure Take-Two's financial and operating
performance. In particular, these measures facilitate comparison of
our operating performance between periods and may help investors to
understand better the operating results of Take-Two. Internally,
management uses these Non-GAAP financial measures in assessing the
Company's operating results and in planning and forecasting. A
reconciliation of these Non-GAAP financial measures to the most
comparable GAAP measure is contained in the financial tables to
this press release.
Final Results
The financial results discussed herein are presented on a
preliminary basis; final data will be included in Take-Two’s
Quarterly Report on Form 10-Q for the period ended December 31,
2023.
About Take-Two Interactive
Software
Headquartered in New York City, Take-Two Interactive Software,
Inc. is a leading developer, publisher, and marketer of interactive
entertainment for consumers around the globe. We develop and
publish products principally through Rockstar Games, 2K, Private
Division, and Zynga. Our products are designed for console gaming
systems, PC, and mobile, including smartphones and tablets. We
deliver our products through physical retail, digital download,
online platforms, and cloud streaming services. The Company’s
common stock is publicly traded on NASDAQ under the symbol TTWO.
For more corporate and product information please visit our website
at http://www.take2games.com.
All trademarks and copyrights contained herein are the property
of their respective holders.
Cautionary Note Regarding
Forward-Looking Statements
The statements contained herein, which are not historical facts,
including statements relating to Take-Two Interactive Software,
Inc.'s ("Take-Two," the "Company," "we," "us," or similar pronouns)
outlook, are considered forward-looking statements under federal
securities laws and may be identified by words such as
"anticipates," "believes," "estimates," "expects," "intends,"
"plans," "potential," "predicts," "projects," "seeks," "should,"
"will," or words of similar meaning and include, but are not
limited to, statements regarding the outlook for our future
business and financial performance. Such forward-looking statements
are based on the current beliefs of our management as well as
assumptions made by and information currently available to them,
which are subject to inherent uncertainties, risks, and changes in
circumstances that are difficult to predict. Actual outcomes and
results may vary materially from these forward-looking statements
based on a variety of risks and uncertainties including risks
relating to our combination with Zynga Inc.; the risks of
conducting business internationally, including as a result of
unforeseen geopolitical events; the impact of changes in interest
rates by the Federal Reserve and other central banks, including on
our short-term investment portfolio; the impact of inflation;
volatility in foreign currency exchange rates; our dependence on
key management and product development personnel; our dependence on
our NBA 2K and Grand Theft Auto products and our ability to develop
other hit titles; our ability to leverage opportunities on
PlayStation®5 and Xbox Series X|S; factors affecting our mobile
business, such as player acquisition costs; the timely release and
significant market acceptance of our games; the ability to maintain
acceptable pricing levels on our games.
Other important factors and information are contained in the
Company's most recent Annual Report on Form 10-K, including the
risks summarized in the section entitled "Risk Factors," the
Company’s most recent Quarterly Report on Form 10-Q, and the
Company's other periodic filings with the SEC, which can be
accessed at www.take2games.com. All forward-looking statements are
qualified by these cautionary statements and apply only as of the
date they are made. The Company undertakes no obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise.
TAKE-TWO INTERACTIVE SOFTWARE,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except per share
amounts)
Three Months Ended December
31,
Nine Months Ended December
31,
2023
2022
2023
2022
Net revenue:
Game
$
1,208.2
$
1,231.3
$
3,432.9
$
3,469.3
Advertising
158.1
176.5
517.3
434.4
Total net revenue
1,366.3
1,407.8
3,950.2
3,903.7
Cost of revenue:
Game intangibles
230.1
202.5
826.4
500.1
Product costs
191.3
204.6
545.9
526.0
Software development costs and
royalties
59.7
91.6
258.5
249.0
Internal royalties
134.1
116.7
319.5
334.4
Licenses
73.0
76.5
227.2
232.1
Total cost of revenue
688.2
691.9
2,177.5
1,841.6
Gross profit
678.1
715.9
1,772.7
2,062.1
Selling and marketing
367.6
446.7
1,103.1
1,163.1
Research and development
232.4
238.2
710.7
655.2
General and administrative
165.0
168.9
542.7
620.6
Depreciation and amortization
42.6
35.0
128.3
86.0
Goodwill impairment
—
—
165.4
—
Total operating expenses
807.6
888.8
2,650.2
2,524.9
Loss from operations
(129.5
)
(172.9
)
(877.5
)
(462.8
)
Interest and other, net
(22.5
)
(28.3
)
(79.0
)
(108.1
)
(Loss) gain on fair value adjustments,
net
(0.3
)
1.1
(1.7
)
(36.6
)
Loss before income taxes
(152.3
)
(200.1
)
(958.2
)
(607.5
)
Benefit from income taxes
60.7
46.7
117.0
93.1
Net loss
$
(91.6
)
$
(153.4
)
$
(841.2
)
$
(514.4
)
Loss per share:
Basic and diluted loss per share
$
(0.54
)
$
(0.91
)
$
(4.95
)
$
(3.27
)
Weighted average shares outstanding
Basic
170.3
168.0
169.9
157.2
TAKE-TWO INTERACTIVE SOFTWARE,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions, except per share
amounts)
December 31, 2023
March 31, 2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
898.7
$
827.4
Short-term investments
23.5
187.0
Restricted cash and cash equivalents
184.6
307.6
Accounts receivable, net of allowances of
$1.2 and $1.3 at December 31, 2023 and March 31, 2023,
respectively
666.3
763.2
Software development costs and
licenses
69.9
65.9
Contract assets
88.7
79.9
Prepaid expenses and other
286.8
277.1
Total current assets
2,218.5
2,508.1
Fixed assets, net
400.4
402.8
Right-of-use assets
316.6
282.7
Software development costs and licenses,
net of current portion
1,444.3
1,072.2
Goodwill
6,614.2
6,767.1
Other intangibles, net
3,546.9
4,453.2
Deferred tax assets
7.1
44.8
Long-term restricted cash and cash
equivalents
106.5
99.6
Other assets
241.2
231.6
Total assets
$
14,895.7
$
15,862.1
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
151.8
$
140.1
Accrued expenses and other current
liabilities
1,022.2
1,225.7
Deferred revenue
1,081.2
1,078.8
Lease liabilities
64.0
60.2
Short-term debt, net
373.2
1,346.8
Total current liabilities
2,692.4
3,851.6
Long-term debt, net
2,708.2
1,733.0
Non-current deferred revenue
61.3
35.5
Non-current lease liabilities
380.7
347.0
Non-current software development
royalties
100.8
110.2
Deferred tax liabilities, net
223.0
534.0
Other long-term liabilities
220.7
208.3
Total liabilities
$
6,387.1
$
6,819.6
Stockholders' equity:
Preferred stock, $0.01 par value, 5.0
shares authorized; no shares issued and outstanding at December 31,
2023 and March 31, 2023
—
—
Common stock, $0.01 par value, 300.0 and
300.0 shares authorized; 194.2 and 192.6 shares issued and 170.5
and 168.9 outstanding at December 31, 2023 and March 31, 2023,
respectively
1.9
1.9
Additional paid-in capital
9,286.9
9,010.2
Treasury stock, at cost; 23.7 and 23.7
common shares at December 31, 2023 and March 31, 2023,
respectively
(1,020.6
)
(1,020.6
)
Retained earnings
323.1
1,164.3
Accumulated other comprehensive loss
(82.7
)
(113.3
)
Total stockholders' equity
$
8,508.6
$
9,042.5
Total liabilities and stockholders'
equity
$
14,895.7
$
15,862.1
TAKE-TWO INTERACTIVE SOFTWARE,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
Nine Months Ended December
31,
2023
2022
Operating activities:
Net loss
$
(841.2
)
$
(514.4
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Amortization and impairment of software
development costs and licenses
152.1
147.6
Stock-based compensation
255.0
238.5
Noncash lease expense
46.4
35.2
Amortization and impairment of
intangibles
924.9
740.1
Depreciation
101.6
62.9
Goodwill impairment
165.4
—
Interest expense
103.2
79.0
Gain on debt extinguishment
(7.7
)
—
Fair value adjustments
1.7
37.1
Other, net
30.6
(23.7
)
Changes in assets and liabilities, net of
effect from purchases of businesses:
Accounts receivable
98.0
158.0
Software development costs and
licenses
(457.3
)
(362.9
)
Prepaid expenses and other current and
other non-current assets
(47.8
)
(23.5
)
Deferred revenue
27.2
(88.1
)
Accounts payable, accrued expenses and
other liabilities
(559.3
)
(450.0
)
Net cash (used in) provided by operating
activities
(7.2
)
35.8
Investing activities:
Change in bank time deposits
21.2
123.0
Sale and maturities of available-for-sale
securities
144.0
436.1
Purchases of fixed assets
(95.5
)
(137.7
)
Proceeds from sale of long-term
investment
—
20.6
Purchases of long-term investments
(17.5
)
(10.2
)
Business acquisitions
(17.5
)
(3,241.8
)
Other
(8.2
)
(4.8
)
Net cash provided by (used in) investing
activities
26.5
(2,814.8
)
Financing activities:
Tax payment related to net share
settlements on restricted stock awards
(76.6
)
(90.6
)
Issuance of common stock
38.1
22.3
Payment for settlement of convertible
notes
—
(1,166.8
)
Proceeds from issuance of debt
999.3
3,248.9
Cost of debt
(7.5
)
(22.4
)
Settlement of capped calls
—
140.1
Repayment of debt
(989.6
)
(200.0
)
Payment of contingent earn-out
consideration
(35.7
)
(26.9
)
Net cash (used in) provided by financing
activities
(72.0
)
1,904.6
Effects of foreign currency exchange rates
on cash, cash equivalents, and restricted cash and cash
equivalents
7.9
(18.6
)
Net change in cash, cash equivalents, and
restricted cash and cash equivalents
(44.8
)
(893.0
)
Cash, cash equivalents, and restricted
cash and cash equivalents, beginning of year (1)
1,234.6
2,195.3
Cash, cash equivalents, and restricted
cash and cash equivalents, end of period (1)
$
1,189.8
$
1,302.3
(1) Cash, cash equivalents and restricted cash and cash
equivalents shown on our Condensed Consolidated Statements of Cash
Flow includes amounts in the Cash and cash equivalents, Restricted
cash and cash equivalents, and Long-term restricted cash and cash
equivalents on our Condensed Consolidated Balance Sheet.
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
Net Revenue and Net Bookings by
Geographic Region, Distribution Channel, and Platform
(in millions)
Three Months Ended
December 31, 2023
Three Months Ended December 31,
2022
Amount
% of total
Amount
% of total
Net revenue by geographic
region
United States
$
818.3
60
%
$
886.8
63
%
International
548.0
40
%
521.0
37
%
Total Net revenue
$
1,366.3
100
%
$
1,407.8
100
%
Net Bookings by geographic
region
United States
$
786.6
59
%
$
872.2
63
%
International
551.2
41
%
510.4
37
%
Total Net Bookings
$
1,337.8
100
%
$
1,382.6
100
%
Three Months Ended
December 31, 2023
Three Months Ended December 31,
2022
Amount
% of total
Amount
% of total
Net revenue by distribution
channel
Digital online
$
1,297.3
95
%
$
1,336.7
95
%
Physical retail and other
69.0
5
%
71.1
5
%
Total Net revenue
$
1,366.3
100
%
$
1,407.8
100
%
Net Bookings by distribution
channel
Digital online
$
1,268.4
95
%
$
1,308.2
95
%
Physical retail and other
69.4
5
%
74.4
5
%
Total Net Bookings
$
1,337.8
100
%
$
1,382.6
100
%
Three Months Ended
December 31, 2023
Three Months Ended December 31,
2022
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
706.7
52
%
$
721.2
51
%
Console
547.6
40
%
561.4
40
%
PC and other
112.0
8
%
125.2
9
%
Total Net revenue
$
1,366.3
100
%
$
1,407.8
100
%
Net Bookings by platform
Mobile
$
697.9
52
%
$
713.2
52
%
Console
524.3
39
%
541.6
39
%
PC and other
115.6
9
%
127.8
9
%
Total Net Bookings
$
1,337.8
100.0
%
$
1,382.6
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
Net Revenue and Net Bookings by
Geographic Region, Distribution Channel, and Platform Mix
(in millions)
Nine Months Ended
December 31, 2023
Nine Months Ended December 31,
2022
Amount
% of total
Amount
% of total
Net revenue by geographic
region
United States
$
2,417.8
61
%
$
2,412.6
62
%
International
1,532.4
39
%
1,491.1
38
%
Total Net revenue
$
3,950.2
100
%
$
3,903.7
100
%
Net Bookings by geographic
region
United States
$
2,428.6
61
%
$
2,442.3
63
%
International
1,555.6
39
%
1,447.7
37
%
Total Net Bookings
$
3,984.2
100
%
$
3,890.0
100
%
Nine Months Ended
December 31, 2023
Nine Months Ended December 31,
2022
Amount
% of total
Amount
% of total
Net revenue by distribution
channel
Digital online
$
3,777.0
96
%
$
3,693.7
95
%
Physical retail and other
173.2
4
%
210.0
5
%
Total Net revenue
$
3,950.2
100
%
$
3,903.7
100
%
Net Bookings by distribution
channel
Digital online
$
3,805.7
96
%
$
3,685.1
95
%
Physical retail and other
178.5
4
%
204.9
5
%
Total Net Bookings
$
3,984.2
100
%
$
3,890.0
100
%
Nine Months Ended
December 31, 2023
Nine Months Ended December 31,
2022
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
2,032.9
52
%
$
1,820.9
47
%
Console
1,598.6
40
%
1,720.5
44
%
PC and other
318.7
8
%
362.3
9
%
Total Net revenue
$
3,950.2
100
%
$
3,903.7
100
%
Net Bookings by platform
Mobile
$
2,049.4
51
%
$
1,795.8
46
%
Console
1,622.4
41
%
1,722.4
44
%
PC and other
312.4
8
%
371.8
10
%
Total Net Bookings
$
3,984.2
100.0
%
$
3,890.0
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Three Months Ended December 31,
2023
Net revenue
Cost of revenue- Game
intangibles
Cost of revenue- Product
costs
Cost of revenue- Software
development costs and royalties
Cost of revenue- Internal
royalties
Cost of revenue-
Licenses
As reported
$
1,366.3
$
230.1
$
191.3
$
59.7
$
134.1
$
73.0
Net effect from deferred revenue and
related cost of revenue
(28.5
)
1.1
(1.5
)
0.3
Stock-based compensation
(6.4
)
Amortization and impairment of acquired
intangibles
(230.1
)
Three Months Ended December 31,
2023
Selling and marketing
Research and
development
General and
administrative
Depreciation and
amortization
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
367.6
$
232.4
$
165.0
$
42.6
$
(22.5
)
$
(0.3
)
Net effect from deferred revenue and
related cost of revenue
(1.8
)
Stock-based compensation
(23.9
)
(26.9
)
(28.7
)
Amortization and impairment of acquired
intangibles
(1.6
)
(7.2
)
(10.3
)
Acquisition related expenses
10.9
1.8
Other
(0.3
)
(1.2
)
(0.1
)
3.8
0.3
Three Months Ended December 31,
2022
Net revenue
Cost of revenue -Game
intangibles
Cost of revenue - Product
costs
Cost of revenue- Software
development costs and royalties
Cost of revenue- Internal
royalties
Cost of revenue-
Licenses
As reported
$
1,407.8
$
202.5
$
204.6
$
91.6
$
116.7
$
76.5
Net effect from deferred revenue and
related cost of revenue
(25.0
)
2.7
2.7
1.0
Stock-based compensation
(8.4
)
Amortization and impairment of acquired
intangibles
(202.5
)
(0.2
)
Three Months Ended December 31,
2022
Selling and marketing
Research and
development
General and
administrative
Depreciation and
amortization
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
446.7
$
238.2
$
168.9
$
35.0
$
(28.3
)
$
1.1
Net effect from deferred revenue and
related cost of revenue
(3.8
)
Stock-based compensation
(23.0
)
(29.2
)
(25.8
)
Amortization and impairment of acquired
intangibles
(80.5
)
(7.2
)
(11.4
)
Acquisition related expenses
(1.1
)
(1.8
)
(16.3
)
3.4
Fair value adjustments, net
(1.1
)
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Nine Months Ended December 31,
2023
Net revenue
Cost of revenue - Game
intangibles
Cost of revenue - Product
costs
Cost of revenue- Software
development costs and royalties
Cost of revenue- Internal
royalties
Cost of revenue-
Licenses
As reported
$
3,950.2
$
826.4
$
545.9
$
258.5
$
319.5
$
227.2
Net effect from deferred revenue and
related cost of revenue
34.0
0.1
3.0
(0.4
)
Stock-based compensation
(20.5
)
Amortization and impairment of acquired
intangibles
(826.4
)
Acquisition related expenses
10.0
Nine Months Ended December 31,
2023
Selling and marketing
Research and
development
General and
administrative
Depreciation and
amortization
Goodwill impairment
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
1,103.1
$
710.7
$
542.7
$
128.3
$
165.4
$
(79.0
)
$
(1.7
)
Net effect from deferred revenue and
related cost of revenue
Stock-based compensation
(72.8
)
(79.4
)
(82.3
)
Amortization and impairment of acquired
intangibles
(49.4
)
(21.5
)
(28.2
)
Acquisition related expenses
(0.2
)
(2.2
)
(17.1
)
(165.4
)
(1.0
)
3.2
Other
(1.7
)
(8.8
)
(1.6
)
19.6
(1.7
)
Nine Months Ended December 31,
2022
Net revenue
Cost of revenue - Game
intangibles
Cost of revenue - Product
costs
Cost of goods revenue-
Software development costs and royalties
Cost of revenue - Internal
royalties
Cost of revenue -
Licenses
As reported
$
3,903.7
$
500.1
$
526.0
$
249.0
$
334.4
$
232.1
Net effect from deferred revenue and
related cost of revenue
(13.6
)
0.3
12.9
2.6
Stock-based compensation
17.0
Amortization and impairment of acquired
intangibles
(500.1
)
(0.1
)
Nine Months Ended December 31,
2022
Selling and marketing
Research and
development
General and
administrative
Depreciation and
amortization
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
1,163.1
$
655.2
$
620.6
$
86.0
$
(108.1
)
$
(36.6
)
Net effect from deferred revenue and
related cost of revenue
1.3
Stock-based compensation
(76.2
)
(88.7
)
(90.6
)
Amortization and impairment of acquired
intangibles
(196.5
)
(17.4
)
(24.1
)
Acquisition related expenses
(8.0
)
(15.3
)
(140.1
)
24.4
37.9
Fair value adjustments, net
(0.5
)
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
MEASURE
(in millions)
Nine Months Ended December
31,
2023
2022
Net cash from operating
activities
$
(7.2
)
$
35.8
Net change in Restricted cash (1)
115.0
87.1
Adjusted Unrestricted Operating Cash
Flow
$
107.8
$
122.9
Nine Months Ended December
31,
2023
2022
Restricted cash beginning of period
$
407.2
$
463.3
Restricted cash end of period
291.1
441.4
Restricted cash related to
acquisitions
1.1
(65.2
)
(1) Net change in Restricted cash
$
115.0
$
87.1
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
MEASURE
(in millions)
Three Months Ended December
31,
Nine Months Ended December
31,
2023
2022
2023
2022
Net loss
$
(91.6
)
$
(153.4
)
$
(841.2
)
$
(514.4
)
Benefit from income taxes
(60.7
)
(46.7
)
(117.0
)
(93.1
)
Interest expense (income)
17.4
22.5
50.3
72.1
Depreciation and amortization
42.6
35.0
128.3
86.0
Amortization and impairment of acquired
intangibles
238.8
290.4
897.3
714.1
Goodwill impairment
—
—
165.4
—
EBITDA
$
146.5
$
147.8
$
283.2
$
264.6
Outlook
Fiscal Year Ending March 31,
2024
Net loss
$(1,013) to $(995)
Benefit from income taxes
$(159) to $(156)
Interest expense
$79
Depreciation
$135
Amortization of acquired intangibles
$1,106
Goodwill impairment
$165
EBITDA
$313 to $334
Outlook
Three Months Ended March 31,
2024
Net loss
$(170) to $(153)
Benefit from income taxes
$(43) to $(38)
Interest expense
$29
Depreciation
$33
Amortization of acquired intangibles
$184
EBITDA
$33 to $55
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240208002077/en/
(Investor Relations) Nicole Shevins Senior Vice President
Investor Relations & Corporate Communications Take-Two
Interactive Software, Inc. (646) 536-3005
Nicole.Shevins@take2games.com
(Corporate Press) Alan Lewis Vice President Corporate
Communications & Public Affairs Take-Two Interactive
Software, Inc. (646) 536-2983 Alan.Lewis@take2games.com
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