$1.47 billion Net Bookings with outperformance
from Grand Theft Auto and Borderlands franchises
Company updates fiscal year 2025 outlook and
reiterates expectation for Net Bookings of $5.55 to $5.65
billion
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported
results for the second quarter of its fiscal year 2025, ended
September 30, 2024. For further information, please see the second
quarter fiscal 2025 results slide deck posted to the Company’s
investor relations website at take2games.com/ir.
Management Comments
“I am pleased to report that we delivered strong second quarter
results. Our Net Bookings of $1.47 billion were at the top of our
guidance range, driven by the continued success of the Grand Theft
Auto and Borderlands franchises, and our operating results
surpassed our plans, largely due to a shift in the timing of
marketing expenses within the year,” said Strauss Zelnick, Chairman
and CEO of Take-Two Interactive.
“Our execution has been consistent, and our teams continue to
make great progress advancing our development pipeline.
Accordingly, we are reiterating our fiscal year 2025 Net Bookings
guidance range of $5.55 to $5.65 billion, and we are confident that
we will achieve sequential increases and record levels of Net
Bookings in fiscal years 2026 and 2027.”
“As we look ahead, we believe that Take-Two remains exceedingly
well-positioned for the long-term. Our vision is clear, our talent
is unparalleled, and we have one of the strongest portfolios of
owned intellectual property in our industry. With many exciting new
titles coming in Fiscal 2026 – including Grand Theft Auto VI in the
fall, Borderlands 4 and Mafia: The Old Country – we expect to
create long-term value for our shareholders.”
Second Quarter Fiscal 2025 Financial
and Operational Highlights
- Total Net Bookings* grew 2% to $1.47 billion, as compared to
$1.44 billion during last year’s fiscal second quarter.
- Net Bookings from recurrent consumer spending** grew 6% and
accounted for 81% of total Net Bookings.
- The largest contributors to Net Bookings were NBA® 2K25 and NBA
2K24, Grand Theft Auto® Online and Grand Theft Auto V, Toon Blast™,
our hyper-casual mobile portfolio, Match Factory!™, Empires &
Puzzles™, Words With Friends™, Red Dead Redemption® 2 and Red Dead
Online, and Toy Blast™.
- GAAP net revenue increased 4% to $1.35 billion, as compared to
$1.30 billion in last year’s fiscal second quarter.
- Recurrent consumer spending** increased 8% and accounted for
80% of total GAAP net revenue.
- The largest contributors to GAAP net revenue were NBA 2K24 and
NBA 2K25, Grand Theft Auto Online and Grand Theft Auto V, Toon
Blast, Empires & Puzzles, Match Factory!, our hyper-casual
mobile portfolio, Red Dead Redemption 2 and Red Dead Online, Words
With Friends, and Merge Dragons!.
- GAAP net loss was $365.5 million, or $2.08 per share, as
compared to $543.6 million, or $3.20 per share, for the comparable
period last year.
* 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.
Second Quarter Fiscal 2025 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:
Three Months Ended September
30, 2024
Financial Data
in millions
Statement of
Operations
Change in deferred net revenue
and related cost of revenue
Stock-based
compensation
Amortization of acquired
intangibles
Business
reorganization
Business acquisition
Other (a)
GAAP
Total net revenue
$1,353.1
121.9
Cost of revenue
625.2
11.5
(3.1)
(174.1)
Gross profit
727.9
110.4
3.1
174.1
Operating expenses
1,025.1
(83.1)
(17.9)
(16.8)
(53.7)
(Loss) income from operations
(297.2)
110.4
86.2
192.0
16.8
53.7
Interest and other, net
(25.9)
(1.5)
2.2
5.2
(Loss) gain on fair value adjustments,
net
(1.2)
0.4
0.8
(Loss) income before income
taxes
(324.3)
108.9
86.2
192.0
16.8
56.3
6.0
Non-GAAP
EBITDA
(75.5)
110.4
86.2
16.8
52.7
6.0
Note: For management reporting purposes, the table above assumes
a management tax rate of 18% and a fully diluted share count of
177.1 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 and (ii) fair value
adjustments related to certain equity investments.
Outlook for Fiscal Year
2025
Take-Two is revising its outlook for the fiscal year ending
March 31, 2025 and providing its initial outlook for its fiscal
third quarter ending December 31, 2024:
Fiscal Year Ending March 31, 2025
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,
2025
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 acquired
intangibles
Business reorganization and
other (a)
GAAP
Total net revenue
$5,570 to $5,670
$(20)
Cost of revenue
$2,397 to $2,422
$10
$(14)
$(681)
Operating expenses
$3,772 to $3,792
$(320)
$(71)
$(151)
Interest and other, net
$120
$(20)
(Loss) income before income
taxes
$(719) to $(664)
$(30)
$334
$752
$171
Net loss
$(839) to $(775)
Net loss per share
$(4.80) to $(4.43)
Net cash provided by operating
activities
approximately $(200)
Capital expenditures
approximately $140
Non-GAAP
EBITDA
$282 to $336
$(30)
$334
$151
Adjusted Unrestricted Operating Cash
Flow
approximately $(150)
Operational metric
Net Bookings
$5,550 to $5,650
- Management reporting tax rate anticipated to be 18%
- Share count used to calculate GAAP net loss per share is
expected to be 174.9 million
- Share count used to calculate management reporting diluted net
income per share is expected to be 177.4 million
(a) Other includes adjustments for (i) business acquisition
expenses, (ii) the revaluation of the Turkish Lira against the U.S.
Dollar, and (iii) fair value adjustments related to certain equity
investments.
Fiscal Third Quarter Ending December 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 December
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 acquired
intangibles
Business reorganization and
business acquisition
GAAP
Total net revenue
$1,360 to $1,410
$(10)
Cost of revenue
$591 to $610
$(5)
$(2)
$(171)
Operating expenses
$913 to $923
$(83)
$(18)
$(12)
Interest and other, net
$30
$(2)
(Loss) income before income
taxes
$(174) to $(153)
$(5)
$85
$189
$14
Net loss
$(202) to $(177)
Net loss per share
$(1.15) to $(1.01)
Non-GAAP
EBITDA
$78 to $100
$(5)
$85
$12
Operational metric
Net Bookings
$1,350 to $1,400
- Management reporting tax rate anticipated to be 18%
- Share count used to calculate GAAP net loss per share is
expected to be 174.5 million
- Share count used to calculate management reporting diluted net
income per share is expected to be 178.2 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 July
1, 2024:
Label
Product
Platforms
Release
Date
Zynga
Game of Thrones: Legends
iOs, Android
July 25, 2024
2K
NBA 2K25
PS5, PS4, Xbox Series X|S Xbox One, PC,
Switch
September 6, 2024
Rockstar Games
Red Dead Redemption and Undead
Nightmare
PC
October 29, 2024
Take-Two's future lineup announced to-date
includes:
Label
Product
Platforms
Release
Date
2K
Sid Meier's Civilization VII
PS5, PS4, Xbox Series X|S, Xbox One, PC,
Switch
February 11, 2025
2K
WWE 2K25
TBA
Q4 Fiscal 2025
Rockstar Games
Grand Theft Auto VI
PS5, Xbox Series X|S
Fall of calendar 2025
2K
Borderlands 4
PS5, Xbox Series X|S, PC
Fiscal 2026
2K
Mafia: The Old Country
PS5, Xbox Series X|S, PC
Fiscal 2026
Zynga
CSR Racing 3
iOS, Android
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 (800) 245-3047 or (203) 518-9765 (conference
ID; TAKETWO). 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 September 30,
2024.
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, 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; and 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 September
30,
Six Months Ended September
30,
2024
2023
2024
2023
Net revenue:
Game
$
1,233.9
$
1,128.6
$
2,450.6
$
2,224.7
Advertising
119.2
170.6
240.7
359.2
Total net revenue
1,353.1
1,299.2
2,691.3
2,583.9
Cost of revenue:
Product costs
212.5
175.7
415.8
354.6
Game intangibles
173.4
409.4
336.9
596.3
Software development costs and
royalties
64.9
83.1
141.1
198.8
Internal royalties
77.2
112.8
146.2
185.4
Licenses
97.2
102.8
152.3
154.2
Total cost of revenue
625.2
883.8
1,192.3
1,489.3
Gross profit
727.9
415.4
1,499.0
1,094.6
Selling and marketing
461.3
334.6
892.7
734.0
Research and development
246.7
232.1
466.5
470.7
General and administrative
253.0
178.3
463.5
376.2
Depreciation and amortization
47.3
45.3
92.1
85.7
Goodwill impairment
—
165.4
—
165.4
Business reorganization
16.8
3.4
66.3
10.6
Total operating expenses
1,025.1
959.1
1,981.1
1,842.6
Loss from operations
(297.2
)
(543.7
)
(482.1
)
(748.0
)
Interest and other, net
(25.9
)
(31.1
)
(50.1
)
(56.5
)
Loss on fair value adjustments, net
(1.2
)
(2.2
)
(4.3
)
(1.4
)
Loss before income taxes
(324.3
)
(577.0
)
(536.5
)
(805.9
)
Provision for (benefit from) income
taxes
41.2
(33.4
)
91.0
(56.3
)
Net loss
$
(365.5
)
$
(543.6
)
$
(627.5
)
$
(749.6
)
Loss per share:
Basic and diluted loss per share
$
(2.08
)
$
(3.20
)
$
(3.61
)
$
(4.42
)
Weighted average shares outstanding
Basic
175.4
169.9
173.8
169.6
TAKE-TWO INTERACTIVE SOFTWARE,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions, except per share
amounts)
September 30, 2024
March 31, 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
876.1
$
754.0
Short-term investments
3.5
22.0
Restricted cash and cash equivalents
357.5
252.1
Accounts receivable, net of allowances of
$1.3 and $1.2 at September 30, 2024 and March 31, 2024,
respectively
858.9
679.7
Software development costs and
licenses
96.9
88.3
Contract assets
79.4
85.0
Prepaid expenses and other
433.4
378.6
Total current assets
2,705.7
2,259.7
Fixed assets, net
433.5
411.1
Right-of-use assets
336.6
325.7
Software development costs and licenses,
net of current portion
1,731.2
1,446.5
Goodwill
4,648.7
4,426.4
Other intangibles, net
2,896.5
3,060.6
Long-term restricted cash and cash
equivalents
86.0
95.9
Other assets
237.1
191.0
Total assets
$
13,075.3
$
12,216.9
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
177.1
$
195.9
Accrued expenses and other current
liabilities
1,300.3
1,062.6
Deferred revenue
1,064.9
1,059.5
Lease liabilities
59.0
63.8
Short-term debt, net
599.2
24.6
Total current liabilities
3,200.5
2,406.4
Long-term debt, net
3,055.9
3,058.3
Non-current deferred revenue
34.7
42.9
Non-current lease liabilities
398.3
387.3
Non-current software development
royalties
91.2
102.1
Deferred tax liabilities, net
281.9
340.9
Other long-term liabilities
214.3
211.1
Total liabilities
$
7,276.8
$
6,549.0
Stockholders' equity:
Preferred stock, $0.01 par value, 5.0
shares authorized; no shares issued and outstanding at September
30, 2024 and March 31, 2024
—
—
Common stock, $0.01 par value, 300.0 and
300.0 shares authorized; 199.2 and 194.5 shares issued and 175.5
and 170.8 outstanding at September 30, 2024 and March 31, 2024,
respectively
2.0
1.9
Additional paid-in capital
10,063.4
9,371.6
Treasury stock, at cost; 23.7 and 23.7
common shares at September 30, 2024 and March 31, 2024,
respectively
(1,020.6
)
(1,020.6
)
Accumulated deficit
(3,207.4
)
(2,579.9
)
Accumulated other comprehensive loss
(38.9
)
(105.1
)
Total stockholders' equity
$
5,798.5
$
5,667.9
Total liabilities and stockholders'
equity
$
13,075.3
$
12,216.9
TAKE-TWO INTERACTIVE SOFTWARE,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
Six Months Ended September
30,
2024
2023
Operating activities:
Net loss
$
(627.5
)
$
(749.6
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Amortization and impairment of software
development costs and licenses
139.6
108.1
Stock-based compensation
161.5
169.1
Noncash lease expense
31.3
32.7
Amortization and impairment of
intangibles
374.1
676.8
Depreciation
74.0
67.9
Goodwill impairment
—
165.4
Interest expense
80.4
71.4
Gain on debt extinguishment
—
(7.7
)
Fair value adjustments
4.3
1.4
Other, net
5.9
28.8
Changes in assets and liabilities, net of
effect from purchases of businesses:
Accounts receivable
(169.6
)
(52.2
)
Software development costs and
licenses
(362.8
)
(300.7
)
Prepaid expenses and other current and
other non-current assets
22.1
(44.5
)
Deferred revenue
(4.6
)
65.3
Accounts payable, accrued expenses and
other liabilities
(48.1
)
(162.4
)
Net cash (used in) provided by operating
activities
(319.4
)
69.8
Investing activities:
Change in bank time deposits
18.5
12.5
Sale and maturities of available-for-sale
securities
—
131.0
Purchases of fixed assets
(71.9
)
(59.9
)
Purchases of long-term investments
(14.7
)
(6.5
)
Business acquisitions
9.4
(13.0
)
Other
(9.3
)
(3.8
)
Net cash (used in) provided by investing
activities
(68.0
)
60.3
Financing activities:
Tax payment related to net share
settlements on restricted stock awards
—
(57.1
)
Issuance of common stock
23.8
18.8
Payment for settlement of convertible
notes
(8.3
)
—
Proceeds from issuance of debt
598.9
999.3
Cost of debt
(5.4
)
(7.5
)
Repayment of debt
—
(989.6
)
Payment of contingent earn-out
consideration
(12.0
)
(35.0
)
Net cash provided by (used in) financing
activities
597.0
(71.1
)
Effects of foreign currency exchange rates
on cash, cash equivalents, and restricted cash and cash
equivalents
8.0
(7.4
)
Net change in cash, cash equivalents, and
restricted cash and cash equivalents
217.6
51.6
Cash, cash equivalents, and restricted
cash and cash equivalents, beginning of year (1)
1,102.0
1,234.6
Cash, cash equivalents, and restricted
cash and cash equivalents, end of period (1)
$
1,319.6
$
1,286.2
(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 Mix
(in millions)
Three Months Ended
September 30, 2024
Three Months Ended September 30,
2023
Amount
% of total
Amount
% of total
Net revenue by geographic
region
United States
$
814.5
60
%
$
795.6
61
%
International
538.6
40
%
503.6
39
%
Total Net revenue
$
1,353.1
100
%
$
1,299.2
100
%
Net Bookings by geographic
region
United States
$
914.4
62
%
$
915.8
63
%
International
560.5
38
%
529.1
37
%
Total Net Bookings
$
1,474.9
100
%
$
1,444.9
100
%
Three Months Ended
September 30, 2024
Three Months Ended September 30,
2023
Amount
% of total
Amount
% of total
Net revenue by distribution
channel
Digital online
$
1,300.0
96
%
$
1,239.7
95
%
Physical retail and other
53.1
4
%
59.5
5
%
Total Net revenue
$
1,353.1
100
%
$
1,299.2
100
%
Net Bookings by distribution
channel
Digital online
$
1,417.2
96
%
$
1,371.6
95
%
Physical retail and other
57.7
4
%
73.3
5
%
Total Net Bookings
$
1,474.9
100
%
$
1,444.9
100
%
Three Months Ended
September 30, 2024
Three Months Ended
September 30, 2023
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
740.2
55
%
$
646.2
50
%
Console
491.1
36
%
546.7
42
%
PC and other
121.8
9
%
106.3
8
%
Total Net revenue
$
1,353.1
100
%
$
1,299.2
100
%
Net Bookings by platform
Mobile
$
723.0
49
%
$
661.9
46
%
Console
622.3
42
%
678.9
47
%
PC and other
129.6
9
%
104.1
7
%
Total Net Bookings
$
1,474.9
100
%
$
1,444.9
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
Net Revenue and Net Bookings by
Geographic Region, Distribution Channel, and Platform Mix
(in millions)
Six Months Ended
September 30, 2024
Six Months Ended September 30,
2023
Amount
% of total
Amount
% of total
Net revenue by geographic
region
United States
$
1,635.0
61
%
$
1,599.5
62
%
International
1,056.3
39
%
984.4
38
%
Total Net revenue
$
2,691.3
100
%
$
2,583.9
100
%
Net Bookings by geographic
region
United States
$
1,642.9
61
%
$
1,642.0
62
%
International
1,050.2
39
%
1,004.5
38
%
Total Net Bookings
$
2,693.1
100
%
$
2,646.5
100
%
Six Months Ended
September 30, 2024
Six Months Ended September 30,
2023
Amount
% of total
Amount
% of total
Net revenue by distribution
channel
Digital online
$
2,595.5
96
%
$
2,479.7
96
%
Physical retail and other
95.8
4
%
104.2
4
%
Total Net revenue
$
2,691.3
100
%
$
2,583.9
100
%
Net Bookings by distribution
channel
Digital online
$
2,604.5
97
%
$
2,537.3
96
%
Physical retail and other
88.6
3
%
109.2
4
%
Total Net Bookings
$
2,693.1
100
%
$
2,646.5
100
%
Six Months Ended
September 30, 2024
Six Months Ended September 30,
2023
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
1,462.7
55
%
$
1,326.2
51
%
Console
1,000.0
37
%
1,051.0
41
%
PC and other
228.6
8
%
206.7
8
%
Total Net revenue
$
2,691.3
100
%
$
2,583.9
100
%
Net Bookings by platform
Mobile
$
1,432.4
53
%
$
1,351.5
52
%
Console
1,027.7
38
%
1,098.1
41
%
PC and other
233.0
9
%
196.9
7
%
Total Net Bookings
$
2,693.1
100.0
%
$
2,646.5
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Three Months Ended September 30,
2024
Net revenue
Cost of revenue- Product
costs
Cost of revenue- Game
intangibles
Cost of revenue- Software
development costs and royalties
Cost of revenue- Internal
royalties
Cost of revenue-
Licenses
As reported
$
1,353.1
$
212.5
$
173.4
$
64.9
$
77.2
$
97.2
Net effect from deferred revenue and
related cost of revenue
121.9
0.8
9.8
0.9
Stock-based compensation
(3.1
)
Amortization and impairment of acquired
intangibles
(0.7
)
(173.4
)
Three Months Ended September 30,
2024
Selling and marketing
Research and
development
General and
administrative
Depreciation and
amortization
Business
reorganization
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
461.3
$
246.7
$
253.0
$
47.3
16.8
$
(25.9
)
$
(1.2
)
Net effect from deferred revenue and
related cost of revenue
(1.5
)
Stock-based compensation
(24.5
)
(26.2
)
(32.4
)
Amortization and impairment of acquired
intangibles
(1.5
)
(7.2
)
(9.2
)
Acquisition related expenses
(0.1
)
(0.7
)
(52.9
)
2.2
0.4
Impact of business reorganization
(16.8
)
Other
5.2
0.8
Three Months Ended September 30,
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
Selling and marketing
As reported
$
1,299.2
$
409.4
$
175.7
$
83.1
$
112.8
$
102.8
$
334.6
Net effect from deferred revenue and
related cost of revenue
145.7
1.3
9.7
(1.3
)
Stock-based compensation
(7.5
)
(24.3
)
Amortization and impairment of acquired
intangibles
(409.4
)
(1.6
)
Three Months Ended September 30,
2023
Research and
development
General and
administrative
Depreciation and
amortization
Goodwill impairment
Business
reorganization
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
232.1
$
178.3
$
45.3
$
165.4
$
3.4
$
(31.1
)
$
(2.2
)
Net effect from deferred revenue and
related cost of revenue
1.2
Stock-based compensation
(28.9
)
(29.4
)
Amortization and impairment of acquired
intangibles
(7.2
)
(8.9
)
Acquisition related expenses
(0.5
)
(2.7
)
(165.4
)
1.9
1.7
Impact of business reorganization
(3.4
)
Other
1.9
0.3
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Six Months Ended September 30,
2024
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
$
2,691.3
$
336.9
$
415.8
$
141.1
$
146.2
$
152.3
Net effect from deferred revenue and
related cost of revenue
1.8
(2.4
)
1.2
1.6
Stock-based compensation
(6.0
)
Amortization and impairment of acquired
intangibles
(336.9
)
(1.6
)
Six Months Ended September 30,
2024
Selling and marketing
Research and
development
General and
administrative
Depreciation and
amortization
Business
reorganization
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
892.7
$
466.5
$
463.5
$
92.1
$
66.3
$
(50.1
)
$
(4.3
)
Net effect from deferred revenue and
related cost of revenue
(0.8
)
Stock-based compensation
(45.7
)
(49.4
)
(60.4
)
Amortization and impairment of acquired
intangibles
(3.1
)
(14.3
)
(18.2
)
Impact of business reorganization
(66.3
)
Acquisition related expenses
(0.1
)
(0.7
)
(69.6
)
4.2
1.1
Other
7.2
3.2
Six Months Ended September 30,
2023
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
Selling and marketing
As reported
$
2,583.9
$
596.3
$
354.6
$
198.8
$
185.4
$
154.2
$
734.0
Net effect from deferred revenue and
related cost of revenue
62.5
(1.0
)
4.5
(0.7
)
Stock-based compensation
(14.2
)
(48.9
)
Amortization and impairment of acquired
intangibles
(596.3
)
(47.9
)
Acquisition related expenses
10.0
(0.2
)
Six Months Ended September 30,
2023
Research and
development
General and
administrative
Depreciation and
amortization
Goodwill impairment
Business
reorganization
Interest and other,
net
(Loss) gain on fair value
adjustments, net
As reported
$
470.7
$
376.2
$
85.7
$
165.4
$
10.6
$
(56.5
)
$
(1.4
)
Net effect from deferred revenue and
related cost of revenue
1.8
Stock-based compensation
(52.5
)
(53.5
)
Amortization and impairment of acquired
intangibles
(14.3
)
(17.9
)
Impact of business reorganization
(10.6
)
Acquisition related expenses
(2.2
)
(28.0
)
(165.4
)
(3.0
)
3.2
Other
15.8
(2.0
)
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
MEASURE
(in millions)
Six Months Ended September
30,
2024
2023
Net cash from operating
activities
$
(319.4
)
$
69.8
Net change in Restricted cash (1)
(94.5
)
(123.3
)
Adjusted Unrestricted Operating Cash
Flow
$
(413.9
)
$
(53.5
)
Six Months Ended September
30,
2024
2023
Restricted cash beginning of period
$
348.0
$
407.2
Restricted cash end of period
443.5
529.4
Restricted cash related to
acquisitions
(1.0
)
1.1
(1) Net change in Restricted cash
$
(94.5
)
$
(123.3
)
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
MEASURE
(in millions)
Three Months Ended September
30,
Six Months Ended September
30,
2024
2023
2024
2023
Net loss
$
(365.5
)
$
(543.6
)
$
(627.5
)
$
(749.6
)
Provision for (benefit from) income
taxes
41.2
(33.4
)
91.0
(56.3
)
Interest expense
18.7
21.0
37.9
33.7
Depreciation and amortization
47.3
45.3
92.1
85.7
Amortization of acquired intangibles
182.8
418.2
356.0
658.5
Goodwill impairment
—
165.4
—
165.4
EBITDA
$
(75.5
)
$
72.9
$
(50.5
)
$
137.4
Outlook
Fiscal Year Ending March 31,
2025
Net loss
$(839) to $(775)
Provision for income taxes
$120 to $110
Interest expense
$98
Depreciation
$151
Amortization of acquired intangibles
$752
EBITDA
$282 to $336
Outlook
Three Months Ended December
31, 2024
Net loss
$(202) to $(177)
Provision for income taxes
$27 to $24
Interest expense
$26
Depreciation
$38
Amortization of acquired intangibles
$189
EBITDA
$78 to $100
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106543274/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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