(State or other jurisdiction | (Commission | (IRS Employer | ||||||
of incorporation) | File Number) | Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits: | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||
(Registrant) | ||||||||
By: | /s/ Matthew Breitman | |||||||
Matthew Breitman | ||||||||
Senior Vice President, General Counsel Americas & Corporate Secretary | ||||||||
Date: |
FOR IMMEDIATE RELEASE |
CONTACT: | |||||
(Investor Relations) | (Corporate Press) | ||||
Nicole Shevins | Alan Lewis | ||||
Senior Vice President | Vice President | ||||
Investor Relations & Corporate Communications | Corporate Communications & Public Affairs | ||||
Take-Two Interactive Software, Inc. | Take-Two Interactive Software, Inc. | ||||
(646) 536-3005 | (646) 536-2983 | ||||
Nicole.Shevins@take2games.com | Alan.Lewis@take2games.com |
Three Months Ended September 30, 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 | $1,299.2 | 145.7 | ||||||||||||||||||||||||||||||||||||
Cost of revenue | 883.8 | 9.7 | (7.5) | (409.4) | ||||||||||||||||||||||||||||||||||
Gross profit | 415.4 | 136.0 | 7.5 | 409.4 | ||||||||||||||||||||||||||||||||||
Operating expenses | 959.1 | (82.9) | (17.7) | (168.6) | (3.4) | |||||||||||||||||||||||||||||||||
(Loss) income from operations | (543.7) | 136.0 | 90.4 | 427.1 | 168.6 | 3.4 | ||||||||||||||||||||||||||||||||
Interest and other, net | (31.1) | 1.2 | 1.9 | 1.9 | ||||||||||||||||||||||||||||||||||
(Loss) gain on fair value adjustments, net | (2.2) | 1.7 | 0.3 | |||||||||||||||||||||||||||||||||||
(Loss) income before income taxes | (577.0) | 137.2 | 90.4 | 427.1 | 172.2 | 5.6 | ||||||||||||||||||||||||||||||||
Non-GAAP | ||||||||||||||||||||||||||||||||||||||
EBITDA | 72.9 | 136.0 | 90.4 | 4.9 | 5.6 |
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 | $5,370 to $5,470 | $80 | ||||||||||||||||||||||||||||||
Cost of revenue | $2,791 to $2,819 | $(1) | $(27) | $(948) | $10 | |||||||||||||||||||||||||||
Operating expenses | $3,530 to $3,550 | $(307) | $(115) | $(208) | ||||||||||||||||||||||||||||
Interest and other, net | $114 | $(1) | $(18) | |||||||||||||||||||||||||||||
(Loss) income before income taxes | $(1,065) to $(1,013) | $82 | $334 | $1,063 | $216 | |||||||||||||||||||||||||||
Net loss | $(957) to $(910) | |||||||||||||||||||||||||||||||
Net loss per share | $(5.62) to $(5.35) | |||||||||||||||||||||||||||||||
Net cash provided by operating activities | approximately $90 | |||||||||||||||||||||||||||||||
Capital expenditures | approximately $150 | |||||||||||||||||||||||||||||||
Non-GAAP | ||||||||||||||||||||||||||||||||
EBITDA | $378 to $430 | $81 | $334 | $33 | ||||||||||||||||||||||||||||
Adjusted Unrestricted Operating Cash Flow | approximately $100 | |||||||||||||||||||||||||||||||
Operational metric | ||||||||||||||||||||||||||||||||
Net Bookings | $5,450 to $5,550 |
Three Months Ending December 31, 2023 | ||||||||||||||||||||||||||||||||
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 | $1,290 to $1,340 | $10 | ||||||||||||||||||||||||||||||
Cost of revenue | $589 to $608 | $(3) | $(5) | $(175) | ||||||||||||||||||||||||||||
Operating expenses | $826 to $836 | $(79) | $(18) | |||||||||||||||||||||||||||||
Interest and other, net | $30 | $(2) | ||||||||||||||||||||||||||||||
(Loss) income before income taxes | $(155) to $(134) | $13 | $84 | $193 | $2 | |||||||||||||||||||||||||||
Net loss | $(124) to $(107) | |||||||||||||||||||||||||||||||
Net loss per share | $(0.73) to $(0.63) | |||||||||||||||||||||||||||||||
Non-GAAP | ||||||||||||||||||||||||||||||||
EBITDA | $95 to $116 | $13 | $84 | $2 | ||||||||||||||||||||||||||||
Operational metric | ||||||||||||||||||||||||||||||||
Net Bookings | $1,300 to $1,350 |
Label | Product | Platforms | Release Date | ||||||||
Zynga | Power Slap | iOS, Android | August 9, 2023 | ||||||||
Zynga | Sugartown | Web3 | August 14, 2023 | ||||||||
Rockstar Games | Red Dead Redemption and Undead Nightmare | PS4, Switch | August 17, 2023 | ||||||||
2K | Borderlands Collection: Pandora's Box | PS4, PS5, Xbox One, Xbox Series X|S, PC | September 1, 2023 | ||||||||
2K | NBA 2K24 | PS4, PS5, Xbox One, Xbox Series X|S, PC, Switch | September 8, 2023 | ||||||||
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 |
Label | Product | Platforms | Release Date | ||||||||
Private Division | Rollerdrome | Xbox Series X, PC | November 28, 2023 | ||||||||
Private Division | Penny's Big Breakaway | PS5, Xbox Series X|S, PC, Switch | Early Calendar 2024 | ||||||||
2K | WWE 2K24 | TBA | Fiscal 2024 | ||||||||
Zynga | Star Wars Hunters | iOS, Android, Switch | Calendar 2024 | ||||||||
Zynga | Game of Thrones: Legends | iOS, Android | Calendar 2024 | ||||||||
Private Division | Tales of the Shire | TBA | Fiscal 2025 | ||||||||
Rockstar Games | Grand Theft Auto: The Trilogy - The Definitive Edition | iOS, Android | TBA | ||||||||
Ghost Story Games | Judas | PS5, Xbox Series X|S, PC | TBA |
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, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
Game | $ | 1,128.6 | $ | 1,218.8 | $ | 2,224.7 | $ | 2,238.0 | ||||||||||||||||||
Advertising | 170.6 | 174.7 | 359.2 | 257.9 | ||||||||||||||||||||||
Total net revenue | 1,299.2 | 1,393.5 | 2,583.9 | 2,495.9 | ||||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||
Game intangibles | 409.4 | 88.6 | 596.3 | 297.6 | ||||||||||||||||||||||
Product costs | 175.7 | 204.5 | 354.6 | 321.4 | ||||||||||||||||||||||
Software development costs and royalties | 83.1 | 201.3 | 198.8 | 157.4 | ||||||||||||||||||||||
Internal royalties | 112.8 | 124.3 | 185.4 | 217.7 | ||||||||||||||||||||||
Licenses | 102.8 | 95.2 | 154.2 | 155.6 | ||||||||||||||||||||||
Total cost of revenue | 883.8 | 713.9 | 1,489.3 | 1,149.7 | ||||||||||||||||||||||
Gross profit | 415.4 | 679.6 | 1,094.6 | 1,346.2 | ||||||||||||||||||||||
Selling and marketing | 334.6 | 444.4 | 735.5 | 716.4 | ||||||||||||||||||||||
Research and development | 234.3 | 243.2 | 478.3 | 417.0 | ||||||||||||||||||||||
General and administrative | 179.5 | 214.6 | 377.7 | 451.7 | ||||||||||||||||||||||
Depreciation and amortization | 45.3 | 29.9 | 85.7 | 51.0 | ||||||||||||||||||||||
Goodwill impairment | 165.4 | — | 165.4 | — | ||||||||||||||||||||||
Total operating expenses | 959.1 | 932.1 | 1,842.6 | 1,636.1 | ||||||||||||||||||||||
Loss from operations | (543.7) | (252.5) | (748.0) | (289.9) | ||||||||||||||||||||||
Interest and other, net | (31.1) | (50.5) | (56.5) | (79.8) | ||||||||||||||||||||||
(Loss) gain on fair value adjustments, net | (2.2) | 1.9 | (1.4) | (37.7) | ||||||||||||||||||||||
Loss before income taxes | (577.0) | (301.1) | (805.9) | (407.4) | ||||||||||||||||||||||
Benefit from income taxes | 33.4 | 44.1 | 56.3 | 46.4 | ||||||||||||||||||||||
Net loss | $ | (543.6) | $ | (257.0) | $ | (749.6) | $ | (361.0) | ||||||||||||||||||
Loss per share: | ||||||||||||||||||||||||||
Basic and diluted loss per share | $ | (3.20) | $ | (1.54) | $ | (4.42) | $ | (2.38) | ||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||
Basic | 169.9 | 166.9 | 169.6 | 151.8 | ||||||||||||||||||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(in millions, except per share amounts) | ||||||||||||||
September 30, 2023 | March 31, 2023 | |||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 756.8 | $ | 827.4 | ||||||||||
Short-term investments | 45.1 | 187.0 | ||||||||||||
Restricted cash and cash equivalents | 424.4 | 307.6 | ||||||||||||
Accounts receivable, net of allowances of $1.2 and $1.3 at September 30, 2023 and March 31, 2023, respectively | 814.5 | 763.2 | ||||||||||||
Software development costs and licenses | 94.5 | 65.9 | ||||||||||||
Contract assets | 82.5 | 79.9 | ||||||||||||
Prepaid expenses and other | 319.0 | 277.1 | ||||||||||||
Total current assets | 2,536.8 | 2,508.1 | ||||||||||||
Fixed assets, net | 392.0 | 402.8 | ||||||||||||
Right-of-use assets | 312.8 | 282.7 | ||||||||||||
Software development costs and licenses, net of current portion | 1,270.7 | 1,072.2 | ||||||||||||
Goodwill | 6,600.3 | 6,767.1 | ||||||||||||
Other intangibles, net | 3,776.3 | 4,453.2 | ||||||||||||
Deferred tax assets | 12.3 | 44.8 | ||||||||||||
Long-term restricted cash and cash equivalents | 105.0 | 99.6 | ||||||||||||
Other assets | 201.2 | 231.6 | ||||||||||||
Total assets | $ | 15,207.4 | $ | 15,862.1 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 131.8 | $ | 140.1 | ||||||||||
Accrued expenses and other current liabilities | 1,316.2 | 1,225.7 | ||||||||||||
Deferred revenue | 1,117.5 | 1,078.8 | ||||||||||||
Lease liabilities | 61.5 | 60.2 | ||||||||||||
Short-term debt, net | 373.1 | 1,346.8 | ||||||||||||
Total current liabilities | 3,000.1 | 3,851.6 | ||||||||||||
Long-term debt, net | 2,707.1 | 1,733.0 | ||||||||||||
Non-current deferred revenue | 60.6 | 35.5 | ||||||||||||
Non-current lease liabilities | 373.0 | 347.0 | ||||||||||||
Non-current software development royalties | 99.6 | 110.2 | ||||||||||||
Deferred tax liabilities, net | 278.5 | 534.0 | ||||||||||||
Other long-term liabilities | 258.4 | 208.3 | ||||||||||||
Total liabilities | $ | 6,777.3 | $ | 6,819.6 | ||||||||||
Stockholders' equity: | ||||||||||||||
Preferred stock, $0.01 par value, 5.0 shares authorized; no shares issued and outstanding at September 30, 2023 and March 31, 2023 | — | — | ||||||||||||
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 193.7 and 192.6 shares issued and 170.0 and 168.9 outstanding at September 30, 2023 and March 31, 2023, respectively | 1.9 | 1.9 | ||||||||||||
Additional paid-in capital | 9,183.2 | 9,010.2 | ||||||||||||
Treasury stock, at cost; 23.7 and 23.7 common shares at September 30, 2023 and March 31, 2023, respectively | (1,020.6) | (1,020.6) | ||||||||||||
Retained earnings | 414.7 | 1,164.3 | ||||||||||||
Accumulated other comprehensive loss | (149.1) | (113.3) | ||||||||||||
Total stockholders' equity | $ | 8,430.1 | $ | 9,042.5 | ||||||||||
Total liabilities and stockholders' equity | $ | 15,207.4 | $ | 15,862.1 |
TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||||||||
(in millions) | ||||||||||||||
Six Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Operating activities: | ||||||||||||||
Net loss | $ | (749.6) | $ | (361.0) | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||
Amortization and impairment of software development costs and licenses | 108.1 | 81.7 | ||||||||||||
Stock-based compensation | 169.1 | 151.8 | ||||||||||||
Noncash lease expense | 32.7 | 23.3 | ||||||||||||
Amortization and impairment of intangibles | 676.8 | 438.2 | ||||||||||||
Depreciation | 67.9 | 38.9 | ||||||||||||
Goodwill impairment | 165.4 | — | ||||||||||||
Interest expense | 71.4 | 60.0 | ||||||||||||
Gain on debt extinguishment | (7.7) | — | ||||||||||||
Fair value adjustments | 1.4 | 38.2 | ||||||||||||
Other, net | 28.8 | (37.4) | ||||||||||||
Changes in assets and liabilities, net of effect from purchases of businesses: | ||||||||||||||
Accounts receivable | (52.2) | 15.2 | ||||||||||||
Software development costs and licenses | (300.7) | (228.9) | ||||||||||||
Prepaid expenses and other current and other non-current assets | (44.5) | (44.7) | ||||||||||||
Deferred revenue | 65.3 | (57.4) | ||||||||||||
Accounts payable, accrued expenses and other liabilities | (162.4) | 37.5 | ||||||||||||
Net cash provided by operating activities | 69.8 | 155.4 | ||||||||||||
Investing activities: | ||||||||||||||
Change in bank time deposits | 12.5 | 124.4 | ||||||||||||
Sale and maturities of available-for-sale securities | 131.0 | 354.3 | ||||||||||||
Purchases of fixed assets | (59.9) | (99.4) | ||||||||||||
Proceeds from sale of long-term investment | — | 20.6 | ||||||||||||
Purchases of long-term investments | (6.5) | (7.6) | ||||||||||||
Business acquisitions | (13.0) | (3,156.9) | ||||||||||||
Other | (3.8) | (26.0) | ||||||||||||
Net cash provided by (used in) investing activities | 60.3 | (2,790.6) | ||||||||||||
Financing activities: | ||||||||||||||
Tax payment related to net share settlements on restricted stock awards | (57.1) | (77.7) | ||||||||||||
Issuance of common stock | 18.8 | 11.4 | ||||||||||||
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) | — | ||||||||||||
Payment of contingent earn-out consideration | (35.0) | — | ||||||||||||
Net cash (used in) provided by financing activities | (71.1) | 2,133.5 | ||||||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents | (7.4) | (36.2) | ||||||||||||
Net change in cash, cash equivalents, and restricted cash and cash equivalents | 51.6 | (537.9) | ||||||||||||
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) | $ | 1,286.2 | $ | 1,657.4 |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by geographic region | ||||||||||||||||||||||||||
United States | $ | 795.6 | 61 | % | $ | 842.9 | 60 | % | ||||||||||||||||||
International | 503.6 | 39 | % | 550.6 | 40 | % | ||||||||||||||||||||
Total Net revenue | $ | 1,299.2 | 100 | % | $ | 1,393.5 | 100 | % | ||||||||||||||||||
Net Bookings by geographic region | ||||||||||||||||||||||||||
United States | $ | 915.8 | 63 | % | $ | 947.3 | 63 | % | ||||||||||||||||||
International | 529.1 | 37 | % | 557.6 | 37 | % | ||||||||||||||||||||
Total Net Bookings | $ | 1,444.9 | 100 | % | $ | 1,504.9 | 100 | % | ||||||||||||||||||
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 1,239.7 | 95 | % | $ | 1,319.2 | 95 | % | ||||||||||||||||||
Physical retail and other | 59.5 | 5 | % | 74.3 | 5 | % | ||||||||||||||||||||
Total Net revenue | $ | 1,299.2 | 100 | % | $ | 1,393.5 | 100 | % | ||||||||||||||||||
Net Bookings by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 1,371.6 | 95 | % | $ | 1,420.9 | 94 | % | ||||||||||||||||||
Physical retail and other | 73.3 | 5 | % | 84.0 | 6 | % | ||||||||||||||||||||
Total Net Bookings | $ | 1,444.9 | 100 | % | $ | 1,504.9 | 100 | % | ||||||||||||||||||
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by platform | ||||||||||||||||||||||||||
Mobile | $ | 646.2 | 50 | % | $ | 730.1 | 52 | % | ||||||||||||||||||
Console | 546.7 | 42 | % | 551.9 | 40 | % | ||||||||||||||||||||
PC and other | 106.3 | 8 | % | 111.5 | 8 | % | ||||||||||||||||||||
Total Net revenue | $ | 1,299.2 | 100 | % | $ | 1,393.5 | 100 | % | ||||||||||||||||||
Net Bookings by platform | ||||||||||||||||||||||||||
Console | $ | 678.9 | 47 | % | $ | 677.1 | 45 | % | ||||||||||||||||||
Mobile | 661.9 | 46 | % | 712.9 | 47 | % | ||||||||||||||||||||
PC and other | 104.1 | 7 | % | 114.9 | 8 | % | ||||||||||||||||||||
Total Net Bookings | $ | 1,444.9 | 100.0 | % | $ | 1,504.9 | 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, 2023 | Six Months Ended September 30, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by geographic region | ||||||||||||||||||||||||||
United States | $ | 1,599.5 | 62 | % | $ | 1,525.8 | 61 | % | ||||||||||||||||||
International | 984.4 | 38 | % | 970.1 | 39 | % | ||||||||||||||||||||
Total Net revenue | $ | 2,583.9 | 100 | % | $ | 2,495.9 | 100 | % | ||||||||||||||||||
Net Bookings by geographic region | ||||||||||||||||||||||||||
United States | $ | 1,642.0 | 62 | % | $ | 1,570.1 | 63 | % | ||||||||||||||||||
International | 1,004.5 | 38 | % | 937.3 | 37 | % | ||||||||||||||||||||
Total Net Bookings | $ | 2,646.5 | 100 | % | $ | 2,507.4 | 100 | % | ||||||||||||||||||
Six Months Ended September 30, 2023 | Six Months Ended September 30, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 2,479.7 | 96 | % | $ | 2,357.0 | 94 | % | ||||||||||||||||||
Physical retail and other | 104.2 | 4 | % | 138.9 | 6 | % | ||||||||||||||||||||
Total Net revenue | $ | 2,583.9 | 100 | % | $ | 2,495.9 | 100 | % | ||||||||||||||||||
Net Bookings by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 2,537.3 | 96 | % | $ | 2,376.9 | 95 | % | ||||||||||||||||||
Physical retail and other | 109.2 | 4 | % | 130.5 | 5 | % | ||||||||||||||||||||
Total Net Bookings | $ | 2,646.5 | 100 | % | $ | 2,507.4 | 100 | % | ||||||||||||||||||
Six Months Ended September 30, 2023 | Six Months Ended September 30, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by platform | ||||||||||||||||||||||||||
Mobile | $ | 1,326.2 | 51 | % | $ | 1,099.7 | 44 | % | ||||||||||||||||||
Console | 1,051.0 | 41 | % | 1,159.1 | 46 | % | ||||||||||||||||||||
PC and other | 206.7 | 8 | % | 237.1 | 10 | % | ||||||||||||||||||||
Total Net revenue | $ | 2,583.9 | 100 | % | $ | 2,495.9 | 100 | % | ||||||||||||||||||
Net Bookings by platform | ||||||||||||||||||||||||||
Mobile | $ | 1,351.5 | 51 | % | $ | 1,082.6 | 43 | % | ||||||||||||||||||
Console | 1,098.1 | 42 | % | 1,180.8 | 47 | % | ||||||||||||||||||||
PC and other | 196.9 | 7 | % | 244.0 | 10 | % | ||||||||||||||||||||
Total Net Bookings | $ | 2,646.5 | 100.0 | % | $ | 2,507.4 | 100 | % |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | Net revenue | Cost of revenue- Game intangibles | Cost of revenue- Product costs | Cost of revenue- Internal royalties | Cost of revenue- Licenses | Cost of revenue- Software development costs and royalties | |||||||||||||||||||||||||||||||||||
As reported | $ | 1,299.2 | $ | 409.4 | $ | 175.7 | $ | 112.8 | $ | 102.8 | $ | 83.1 | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 145.7 | 1.3 | (1.3) | 9.7 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | (7.5) | ||||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (409.4) | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 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 | $ | 334.6 | $ | 234.3 | $ | 179.5 | $ | 45.3 | $ | 165.4 | $ | (31.1) | $ | (2.2) | |||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 1.2 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (24.6) | (28.9) | (29.4) | ||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (1.6) | (7.2) | (8.9) | ||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | (0.5) | (2.7) | (165.4) | 1.9 | 1.7 | ||||||||||||||||||||||||||||||||||||
Other | (2.2) | (1.2) | 1.9 | 0.3 | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Net revenue | Cost of revenue -Game intangibles | Cost of revenue - Product costs | Cost of revenue- Internal royalties | Cost of revenue- Licenses | Cost of revenue- Software development costs and royalties | |||||||||||||||||||||||||||||||||||
As reported | $ | 1,393.5 | $ | 88.6 | $ | 204.5 | $ | 124.3 | $ | 95.2 | $ | 201.3 | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 111.3 | 0.4 | 1.5 | 8.7 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | (8.0) | ||||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (88.6) | (201.4) | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 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 | $ | 444.4 | $ | 243.2 | $ | 214.6 | $ | 29.9 | $ | (50.5) | $ | 1.9 | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 3.5 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (17.5) | (38.2) | (44.2) | ||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (101.0) | (9.2) | (8.8) | ||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | (1.2) | (1.8) | (22.8) | 12.6 | (1.4) | ||||||||||||||||||||||||||||||||||||
Fair value adjustments, net | (0.5) |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Six 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 | |||||||||||||||||||||||||||||||||||
As reported | $ | 2,583.9 | $ | 596.3 | $ | 354.6 | $ | 198.8 | $ | 185.4 | $ | 154.2 | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 62.5 | (1.0) | 4.5 | (0.7) | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | (14.2) | ||||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (596.3) | ||||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | 10.0 | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended September 30, 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 | $ | 735.5 | $ | 478.3 | $ | 377.7 | $ | 85.7 | $ | 165.4 | $ | (56.5) | $ | (1.4) | |||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 1.8 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (48.9) | (52.5) | (53.5) | ||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (47.9) | (14.3) | (17.9) | ||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | (0.2) | (2.2) | (28.0) | (165.4) | (3.0) | 3.2 | |||||||||||||||||||||||||||||||||||
Other | (1.4) | (7.6) | (1.6) | 15.8 | (2.0) | ||||||||||||||||||||||||||||||||||||
Six Months Ended September 30, 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 | $ | 2,495.9 | $ | 297.6 | $ | 321.4 | $ | 157.4 | $ | 217.7 | $ | 155.6 | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 11.4 | (3.0) | 10.2 | 1.5 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | 25.4 | ||||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (297.6) | (297.7) | |||||||||||||||||||||||||||||||||||||||
Six Months Ended September 30, 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 | $ | 716.4 | $ | 417.0 | $ | 451.7 | $ | 51.0 | $ | (79.8) | $ | (37.7) | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 5.1 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (53.2) | (59.3) | (64.7) | ||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (116.0) | (10.3) | (12.8) | ||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | (6.4) | (11.2) | (124.4) | 21.0 | 37.9 | ||||||||||||||||||||||||||||||||||||
Fair value adjustments, net | (0.2) |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE | ||||||||||||||
(in millions) | ||||||||||||||
Six Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net cash from operating activities | $ | 69.8 | $ | 155.4 | ||||||||||
Net change in Restricted cash (1) | (123.3) | (172.5) | ||||||||||||
Adjusted Unrestricted Operating Cash Flow | $ | (53.5) | $ | (17.1) | ||||||||||
Six Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Restricted cash beginning of period | $ | 407.2 | $ | 463.3 | ||||||||||
Restricted cash end of period | 529.4 | 701.0 | ||||||||||||
Restricted cash related to acquisitions | 1.1 | (65.2) | ||||||||||||
(1) Net change in Restricted cash | $ | (123.3) | $ | (172.5) |
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, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net loss | $ | (543.6) | $ | (257.0) | $ | (749.6) | $ | (361.0) | |||||||||||||||
Benefit from income taxes | (33.4) | (44.1) | (56.3) | (46.4) | |||||||||||||||||||
Interest expense (income) | 21.0 | 24.9 | 33.7 | 49.9 | |||||||||||||||||||
Depreciation and amortization | 45.3 | 29.9 | 85.7 | 51.0 | |||||||||||||||||||
Amortization and impairment of acquired intangibles | 418.2 | 311.6 | 658.5 | 424.0 | |||||||||||||||||||
Goodwill impairment | 165.4 | — | 165.4 | — | |||||||||||||||||||
EBITDA | $ | 72.9 | $ | 65.3 | $ | 137.4 | $ | 117.5 |
Outlook | ||||||||
Fiscal Year Ending March 31, 2024 | ||||||||
Net loss | $(957) to $(910) | |||||||
Benefit from income taxes | $(108) to $(103) | |||||||
Interest expense | $85 | |||||||
Depreciation | $130 | |||||||
Amortization of acquired intangibles | $1,063 | |||||||
Goodwill impairment | $165 | |||||||
EBITDA | $378 to $430 |
Outlook | ||||||||
Three Months Ended December 31, 2023 | ||||||||
Net loss | $(124) to $(107) | |||||||
Benefit from income taxes | $(31) to $(27) | |||||||
Interest expense | $26 | |||||||
Depreciation | $30 | |||||||
Amortization of acquired intangibles | $194 | |||||||
EBITDA | $95 to $116 |
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end
Cover |
Nov. 08, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 08, 2023 |
Entity Registrant Name | TAKE-TWO INTERACTIVE SOFTWARE, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-34003 |
Entity Tax Identification Number | 51-0350842 |
Entity Address, Address Line One | 110 West 44th Street, |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10036 |
City Area Code | (646) |
Local Phone Number | 536-2842 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | TTWO |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000946581 |
Amendment Flag | false |
&UL4$L! A0#% @ \(%H5S-UF+Y1!
MAA !@ ("!#0@ 'AL+W=O
5 >
MFTWH#\FK#ITTDZ23I\5QF7'%3*U@&U:^8)5=YUG.O<75O,$0ZA5)(D$BU6>"
M_ E^M_2Y]LS?JK!LH+0>#09 S98^/<
MRLNT=Y%6Q: U=.H$F(+"Z LB>[?TB87B
M/S<38F^92<>'2JT$U6WPF'A=,H^27J3G+N:5CF-8LD;7-0N2#(_S$'LH=A]Q
M&G>N*BRH>NW%%/#*ZA4T( ";Q]FO'"EY/F=2@;&YS;V6&[#^<[(L@#1#8]P>
MA!A];Z,1F?TY\I[0<[2YQJGK+SYK&'*7ILMM@^.-SY9*,^Q4G:&!ON-V_RGX
M2R2-YBROB3XSIPE0?C#WARRILNU00RU-[HK8 58M ?X;&N#T(,?K>1J,8A^?(
M>T+/T>;GIZZ_\! 9BJS99.ZY/POW^+^W]@2CZA79L1AWPA8>FD7X?/'+Q8(K
M7)]Y#]E+%U,4C@FAI+1JSEZX^9@;,+F]HA]926@H%6GIE]/;,KNUY7Q,[G4,
MV>YHF;<562UY3U>[I=Y\;;*J*2MVV0F=8+(=-=^$=FY&JOEN)5TR#X6'F!;;
MY^I@I-_[_;K=_W8GW=SVK^][E_V;?UQ+#W>?^M]Z]]
M *]CEL;PTQ-B"_/#E=@D4+;Z\9&*[.Z'?%0OL9IB(VIZG_(VLK$\"/6IML?
M<\#:&EKG\6J[=?\SDBOUUCES)'-+P5L1"3%U",7 &P8>$=J?D&T=86HB7%=J:Y2H
M@HD43M-J]B61NH7L 'K&J6'UF>E1O'9$/Z!N?>EQY)*U(Z#M:K7+L*^0/\;)
MYH-D-& "7%O@4'H^IJ#63A98%'M>Q 7W(^G9AMWIL_.)RK<$:/P)O"WB=#7;
MCXYQY*K#1 ^A;H<\0*,U9R/+
%&L2P'K27E_4VKLOYTU&V
)[.-#Z=GRN7Q:D]"?7)_(9/)M1K9W,YR\3?[^&QG:H\,7
M4Y"VG5O4UW>N=Q8.0$+HA& VG%W5$ UE5:US4:F:3-&R 0?5D$VZ[GY [/.-
MW?%_J(D2)CJ2\2>V,ZX[@(ALBQ+)%286#+EK*DOWD)/H7AXB
9U(0&$W5
M23)BFF@E@"#!# "R XUD
M7A!%TA-1\'\V#5WN2-.%SD]TQI]U65-H#$IR0/[2#M!,2U8V7U%ETUA_91'S
MD+S'$M63H):5O5 P_.DH^#UHV0^N,$V#&1BV%W%\29 3EER"$#=,3O(G3(6E
M!L*9^Y[@5;5E*S'P4N0FL7P)VET_1O[8I:A$483CY*#^S*5OJAU3-C;>;*V_
M.@X"AX8 T(LS,B'LLV@))!':B.G9Z=JD:!"2CQ>Q2$FD)'UX[KMQ=(J0N6Y)
M2?8_TN:9B9M$/@1K1\133"R'81)5@D
)6-;55M)?
MAE6?9046'EUG,9;KNZRIU/J8]'HZ9CQQPV5;XL7@5WC(RLIOC*^SK>B4P&3C
MY"\JGI+ /RG4KC.AQB]UK%KC4*PB+PK64$LV(CRD,I8VYVE)3Q-W.,GHT4.Q
M?
#H2)AGRLT0;&97P/(5H+-5A!Y-ZOHR-%S+L,6.YQ:8V@[DC^:1
MVC)BK?2.*BL<4=L1M1!!-H*>\^]Y%-,BXI$4!U*(AX$_=#U,2^ZR'8)>I;\/
M43219F'PZ%(C9/ L!;RJ,@*.<6R%1.W*&N^$. W(7/Z+Z/$*"U!PIS/DAJR\
M?3#:7?:>YHDET0R>2RRA"(JIECB#5[HB1!3^R%HV2U%CD0Y9H]
MLE1*Q51E 8-5!#TS%Y!$#)%42A$RKJ!2[>%T,-6T914D"-]H,J!8;?V=E%\O
M(55RGS!UI0,MJ8! L@FDVSCB$$<+:PIE9D1%ZU9A'0S$1^7QS37D8
!:8X
Y?]FW]<2P]WG_K?>O?7+7+U4F:GW@]_?'RX
MN;KIW=]^107 OL3A4^6B.\W5]?WMU>WGR^Z?5O[FZENT_2;[W>5ZE_)]W>
MW;;9[U^N>P]_W%\#MDZ/K3/7E\BP'M%[HA?*I6@(V5(%7ZT8R.="#D^$AYB)
MG8>TJZP3DY.X7R_(MD'M%4)SS?PI4]%E-YRGKN-X^$1PUA1-S^,S>G.YS8*9
M5H0"^2Z0F'/1-(%LB*))DCX6S#"MQ4:K! Z)B4Z,[^-4@'_K/2'24W-".']^
M:K'%G\@SEG/5'5ON+A9^W._O=LV52^7B(T&VD