GAAP net revenue increased 56% to $1.41 billion
GAAP net loss per share was $0.91
GAAP net cash provided by operating activities for the nine-months ended December 31, 2022 was $35.8 million
Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the nine-months ended December 31, 2022 was $122.9 million
Net Bookings grew 60% to $1.38 billion
Company updates outlook for fiscal year 2023, including Net Bookings of $5.2 to $5.25 billion
NEW YORK--(BUSINESS WIRE)-- Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the third quarter of its fiscal year 2023, ended December 31, 2022. Third quarter results include the Company's combination with Zynga, which closed on May 23, 2022, and affects the comparability of its results relative to last year. In addition, the Company revised its outlook for fiscal year 2023, ending March 31, 2023, and provided its initial outlook for the fourth quarter of fiscal year 2023, ending March 31, 2023. For further information, please see the third quarter fiscal 2023 results slide deck posted to the Company’s investor relations website at take2games.com/ir.
Third Quarter Fiscal 2023 Financial Highlights
GAAP net revenue increased 56% to $1.41 billion, as compared to $903.3 million in last year’s fiscal third quarter. Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in game purchases and in-game advertising) increased 104% and accounted for 79% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 68% to $1.34 billion, as compared to $795.7 million in last year’s fiscal third quarter, and accounted for 95% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA® 2K23 and NBA 2K22; Grand Theft Auto® Online and Grand Theft Auto V; Empires & Puzzles™; Toon Blast™; Rollic's hyper-casual portfolio; Red Dead Redemption® 2 and Red Dead Online; Words With Friends™; Merge Dragons!™; and Toy Blast™.
GAAP net loss was $153.4 million, or $0.91 per share, as compared to net income of $144.6 million, or $1.24 per diluted share, for the comparable period last year.
During the nine-month period ended December 31, 2022, GAAP net cash provided by operating activities was $35.8 million, as compared to $19.2 million in the same period last year. During the nine-month period ended December 31, 2022, Adjusted Unrestricted Operating Cash Flow (Non-GAAP), which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash, was $122.9 million, as compared to $278.7 million in the same period last year (please see the section below titled “Non-GAAP Financial Measures” for additional information). As of December 31, 2022, the Company had cash and short-term investments of $1.13 billion and debt of $3.09 billion.
The following data, together with a management reporting tax rate of 18%, are 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, 2022 | |||||||||
|
|
|
| Financial Data | |||||||
GAAP |
| Statement of Operations |
| Change in deferred net revenue and related cost of revenue |
| Stock-based compensation |
|
| Amortization of acquired intangibles |
| Business acquisition |
Total net revenue |
| $1,407.8 |
| (25.0) |
|
|
|
|
|
|
|
Cost of revenue |
| 691.9 |
| 6.4 |
| (8.4) |
|
| (202.7) |
|
|
Gross profit |
| 715.9 |
| (31.4) |
| 8.4 |
|
| 202.7 |
|
|
Operating expenses |
| 888.8 |
|
|
| (78.0) |
|
| (99.1) |
| (21.5) |
(Loss) income from operations |
| (172.9) |
| (31.4) |
| 86.4 |
|
| 301.8 |
| 21.5 |
Interest and other, net |
| (28.3) |
| (3.8) |
|
|
|
|
|
| 3.4 |
(Loss) gain on fair value adjustments, net |
| 1.1 |
|
|
|
|
|
|
|
| (1.1) |
(Loss) income before income taxes |
| (200.1) |
| (35.2) |
| 86.4 |
|
| 301.8 |
| 23.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
| 147.8 |
| (31.4) |
| 86.4 |
|
|
|
| 19.2 |
In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 169.2 million.
Operational Metric – Net Bookings
Net Bookings is 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.
During fiscal third quarter 2023, total Net Bookings grew 60% to $1.38 billion, as compared to $866.1 million during last year’s fiscal third quarter. Net Bookings from recurrent consumer spending grew 117% and accounted for 78% of total Net Bookings. Digitally-delivered Net Bookings were up 72% to $1.31 billion, as compared to $762.3 million in last year’s fiscal third quarter, and accounted for 95% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K23; Grand Theft Auto Online and Grand Theft Auto V; Empires & Puzzles; Toon Blast; Red Dead Redemption 2 and Red Dead Online; Rollic's hyper-casual portfolio; Words With Friends; Merge Dragons!; and Toy Blast.
Management Comments
“During the third quarter, we continued to execute on our ambition to create the highest-quality, most engaging interactive entertainment franchises in the industry,” said Strauss Zelnick, Chairman and CEO of Take-Two. "Our new game releases and post-launch content received significant critical acclaim; however, our Net Bookings of $1.38 billion were slightly below our prior guidance, as we believe that consumers shifted their holiday spending toward established blockbuster franchises and titles that were offered with pricing promotions in light of macroeconomic conditions. While our catalog benefited from this trend, it affected the performance of certain of our new releases and recurrent consumer spending for some of our console and PC games."
"We are operating in an environment that is in many ways more challenging than we anticipated and we are lowering our Fiscal 2023 Net Bookings guidance to $5.2 to $5.25 billion to take this backdrop into account. Accordingly, we have embarked on a cost reduction program that we believe will deliver over $50 million of annual savings, which is in addition to the $100 million of annual cost synergies that we plan to realize from our combination with Zynga. These initiatives are expected to optimize our Company’s expense structure, while also positioning us to deliver on our anticipated growth trajectory. Our balance sheet remains strong, allowing us to navigate these uncertain times with confidence."
"We have always managed our business for the long-term. As we achieve the powerful synergies from our combination with Zynga, release new titles from our robust multi-year pipeline, and execute on our cost savings initiatives, we expect to deliver sequential growth and record performance over the next several years, which we anticipate will drive meaningful shareholder value."
Cost Reduction Program
In light of the current backdrop and Take-Two’s strong commitment to efficiency, the Company is implementing a cost reduction program expected to yield over $50 million of annual savings, which it will begin to realize in the fourth quarter of its Fiscal Year 2023. The program includes personnel, processes, infrastructure, and other areas, and will primarily focus on corporate and publishing functions. This cost reduction program is in addition to the over $100 million of cost synergies the Company expects to realize from its combination with Zynga, and is not expected to impact the delivery of its robust multi-year pipeline. Take-Two believes these actions, combined with its focus on profitably growing its scale, will enable the Company to maximize its margins as it delivers on its anticipated growth trajectory over the next few years.
Return to Office Update
At Take-Two, our number one priority has remained the health and safety of our employees and their families. The majority of our global offices have reopened. We continue to follow protocols from local governments and health officials to ensure that we are adhering to their safety standards.
Business and Product Highlights
Since October 1, 2022:
Rockstar Games:
2K:
Private Division:
Zynga:
Ghost Story Games:
Outlook for Fiscal 2023
Take-Two is revising its outlook for the fiscal year ending March 31, 2023, and is providing its initial outlook for its fiscal fourth quarter ending March 31, 2023:
Fiscal Year Ending March 31, 2023
The Company is also providing selected data and its management reporting tax rate of 18%, which are 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:
|
| Twelve Months Ending March 31, 2023 | ||||||||||
|
|
|
| Financial Data | ||||||||
$ in millions |
| Outlook (3) |
| Change in deferred net revenue and related cost of revenue |
| Stock-based compensation |
| Loss on long- term investments, net |
| Amortization of acquired intangibles |
| Business acquisition |
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue |
| $5,240 to $5,290 |
| $(40) |
|
|
|
|
|
|
|
|
Cost of revenue |
| $2,530 to $2,549 |
| $10 |
| $(11) |
|
|
| $(694) |
|
|
Operating expenses |
| $3,396 to $3,406 |
|
|
| $(346) |
|
|
| $(332) |
| $(153) |
Interest and other, net |
| $174 |
| $(1) |
|
|
| $(49) |
|
|
| $(14) |
(Loss) income before income taxes |
| $(860) to $(839) |
| $(49) |
| $357 |
| $49 |
| $1,026 |
| $167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
| $386 to $406 |
| $(50) |
| $357 |
| $49 |
|
|
| $153 |
FourthQuarter Ending March 31, 2023
The Company is also providing selected data and its management reporting tax rate of 18%, which are 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, 2023 | ||||||||
|
|
|
| Financial Data | ||||||
$ in millions |
| Outlook (3) |
| Change in deferred net revenue and related cost of revenue |
| Stock-based compensation |
| Amortization of intangible assets |
| Business acquisition |
GAAP |
|
|
|
|
|
|
|
|
|
|
Total net revenue |
| $1,336 to $1,386 |
| $(26) |
|
|
|
|
|
|
Cost of revenue |
| $688 to $708 |
| $(5) |
| $(24) |
| $(198) |
|
|
Operating expenses |
| $871 to $881 |
|
|
| $(71) |
| $(97) |
| $(5) |
Interest and other, net |
| $29 |
|
|
|
|
|
|
| $(2) |
(Loss) income before income taxes |
| $(252) to $(232) |
| $(21) |
| $95 |
| $295 |
| $7 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
EBITDA |
| $102 to $122 |
| $(21) |
| $95 |
|
|
| $5 |
1) | Includes 159.8 million basic shares and 2.0 million shares representing the potential dilution from unvested employee stock grants and the potential dilution from convertible notes. | |
2) | Adjusted for changes in restricted cash. | |
3) | 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. | |
4) | Includes 168.0 million basic shares and 1.2 million shares representing the potential dilution from unvested employee stock grants and the potential dilution from convertible notes. |
Key assumptions and dependencies underlying the Company’s outlook include: the timely delivery of the titles included in this financial outlook; continued consumer acceptance of Xbox One and PlayStation 4, as well as continued growth in the installed base of PlayStation 5 and Xbox Series X|S; 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; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following have been released since October 1, 2022:
Label | Product | Platforms | Release Date |
2K | PGA TOUR 2K23 | PS4, PS5, Xbox One, Xbox Series X|S, PC (Steam) | October 14, 2022 |
2K | NBA 2K23 Arcade Edition | Apple Arcade | October 18, 2022 |
2K | New Tales From The Borderlands | PS4, PS5, Xbox One, Xbox Series X|S, PC (Steam & Epic Games Store), Switch | October 21, 2022 |
Private Division | OlliOlli World: Finding the Flowzone (DLC, Digital Only) | PS4, PS5, Xbox One, Xbox Series X|S, Switch, PC | November 2, 2022 |
2K | Marvel's Midnight Suns | PS5, Xbox Series X|S, PC (Steam and Epic Games Store) | December 2, 2022 |
Rockstar Games | Grand Theft Auto Online: Los Santos Drug Wars | PS4, PS5, Xbox One, Xbox Series X|S, PC | December 13, 2022 |
Take-Two's future lineup announced to-date includes:
Label | Product | Platforms | Release Date |
Private Division | Kerbal Space Program 2 (Early Access) | PC (Steam, Epic Games Store) | February 24, 2023 |
2K | WWE 2K23 | PS4, PS5, Xbox One, Xbox Series X|S, PC (Steam) | March 17, 2023 |
Private Division | After Us (Digital Only) | PS5, Xbox Series X|S, PC (Steam) | Spring 2023 |
Rockstar Games | Grand Theft Auto: The Trilogy - The Definitive Edition | iOS, Android | TBA |
2K | Marvel's Midnight Suns | PS4, Xbox One, Switch | TBA |
Zynga | Star Wars Hunters | iOS, Android, Switch | TBA |
Ghost Story Games | Judas | PS5, Xbox Series X|S, PC (Steam, Epic Games Store) | 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. The Company has chosen to report EBITDA in light of the combination with Zynga, including the related debt financing. 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, 2022.
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 systems, personal computers, and Mobile, including smartphones and tablets, and are delivered 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
Statements contained herein which are not historical facts 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 the Company's 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; the uncertainty of the impact of the COVID-19 pandemic and measures taken in response thereto; the effect that measures taken to mitigate the COVID-19 pandemic have on our operations, including our ability to timely deliver our titles and other products, and on the operations of our counterparties, including retailers and distributors; the effects of the COVID-19 pandemic on both consumer demand and the discretionary spending patterns of our customers as the situation with the pandemic continues to evolve; the risks of conducting business internationally; 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; the timely release and significant market acceptance of our games; the ability to maintain acceptable pricing levels on our games; and risks associated with international operations.
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, | ||||||||||||
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
|
Net revenue: |
|
|
|
|
|
|
|
| ||||||||
Game |
| $ | 1,231.3 |
|
| $ | 883.3 |
|
| $ | 3,469.3 |
|
| $ | 2,512.3 |
|
Advertising |
|
| 176.5 |
|
|
| 20.0 |
|
|
| 434.4 |
|
|
| 62.5 |
|
Total net revenue |
|
| 1,407.8 |
|
|
| 903.3 |
|
|
| 3,903.7 |
|
| $ | 2,574.8 |
|
Cost of revenue: |
|
|
|
|
|
|
|
| ||||||||
Software development costs and royalties |
|
| 294.1 |
|
|
| 43.1 |
|
|
| 749.1 |
|
|
| 275.0 |
|
Product costs |
|
| 204.6 |
|
|
| 73.0 |
|
|
| 526.0 |
|
|
| 186.0 |
|
Internal royalties |
|
| 116.7 |
|
|
| 172.8 |
|
|
| 334.4 |
|
|
| 477.8 |
|
Licenses |
|
| 76.5 |
|
|
| 61.5 |
|
|
| 232.1 |
|
|
| 198.0 |
|
Total cost of revenue |
|
| 691.9 |
|
|
| 350.4 |
|
|
| 1,841.6 |
|
|
| 1,136.8 |
|
Gross profit |
|
| 715.9 |
|
|
| 552.9 |
|
|
| 2,062.1 |
|
|
| 1,438.0 |
|
Selling and marketing |
|
| 446.7 |
|
|
| 135.3 |
|
|
| 1,163.1 |
|
|
| 375.2 |
|
Research and development |
|
| 238.2 |
|
|
| 116.7 |
|
|
| 655.2 |
|
|
| 310.5 |
|
General and administrative |
|
| 168.9 |
|
|
| 130.8 |
|
|
| 620.6 |
|
|
| 363.0 |
|
Depreciation and amortization |
|
| 35.0 |
|
|
| 16.0 |
|
|
| 86.0 |
|
|
| 44.6 |
|
Total operating expenses |
|
| 888.8 |
|
|
| 398.8 |
|
|
| 2,524.9 |
|
|
| 1,093.3 |
|
(Loss) income from operations |
|
| (172.9 | ) |
|
| 154.1 |
|
|
| (462.8 | ) |
|
| 344.7 |
|
Interest and other, net |
|
| (28.3 | ) |
|
| (5.6 | ) |
|
| (108.1 | ) |
|
| (7.2 | ) |
Gain (loss) on fair value adjustments, net |
|
| 1.1 |
|
|
| 3.7 |
|
|
| (36.6 | ) |
|
| 6.1 |
|
(Loss) income before income taxes |
|
| (200.1 | ) |
|
| 152.2 |
|
|
| (607.5 | ) |
|
| 343.6 |
|
(Benefit from) provision for income taxes |
|
| (46.7 | ) |
|
| 7.6 |
|
|
| (93.1 | ) |
|
| 36.5 |
|
Net (loss) income |
| $ | (153.4 | ) |
| $ | 144.6 |
|
| $ | (514.4 | ) |
| $ | 307.1 |
|
|
|
|
|
|
|
|
|
| ||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
| ||||||||
Basic (loss) earnings per share |
| $ | (0.91 | ) |
| $ | 1.25 |
|
| $ | (3.27 | ) |
| $ | 2.66 |
|
Diluted (loss) earnings per share |
| $ | (0.91 | ) |
| $ | 1.24 |
|
| $ | (3.27 | ) |
| $ | 2.63 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
| ||||||||
Basic |
|
| 168.0 |
|
|
| 115.3 |
|
|
| 157.2 |
|
|
| 115.6 |
|
Diluted |
|
| 168.0 |
|
|
| 116.7 |
|
|
| 157.2 |
|
|
| 116.8 |
|
Computation of Basic EPS: |
|
|
|
|
|
|
|
| ||||||||
Net (loss) income |
| $ | (153.4 | ) |
| $ | 144.6 |
|
| $ | (514.4 | ) |
| $ | 307.1 |
|
Weighted average shares outstanding - basic |
|
| 168.0 |
|
|
| 115.3 |
|
|
| 157.2 |
|
|
| 115.6 |
|
Basic (loss) earnings per share |
| $ | (0.91 | ) |
| $ | 1.25 |
|
| $ | (3.27 | ) |
| $ | 2.66 |
|
Computation of Diluted EPS: |
|
|
|
|
|
|
|
| ||||||||
Net (loss) income |
| $ | (153.4 | ) |
| $ | 144.6 |
|
| $ | (514.4 | ) |
| $ | 307.1 |
|
Weighted average shares outstanding - basic |
|
| 168.0 |
|
|
| 115.3 |
|
|
| 157.2 |
|
|
| 115.6 |
|
Add: dilutive effect of common stock equivalents |
|
| — |
|
|
| 1.4 |
|
|
| — |
|
|
| 1.2 |
|
Weighted average common shares outstanding - diluted |
|
| 168.0 |
|
|
| 116.7 |
|
|
| 157.2 |
|
|
| 116.8 |
|
Diluted (loss) earnings per share |
| $ | (0.91 | ) |
| $ | 1.24 |
|
| $ | (3.27 | ) |
| $ | 2.63 |
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in millions, except per share amounts) | |||||||
| December 31, 2022 |
| March 31, 2022 | ||||
| (Unaudited) |
|
| ||||
ASSETS |
|
|
| ||||
Current assets: |
|
|
| ||||
Cash and cash equivalents | $ | 860.9 |
|
| $ | 1,732.1 |
|
Short-term investments |
| 268.6 |
|
|
| 820.1 |
|
Restricted cash and cash equivalents |
| 331.5 |
|
|
| 359.8 |
|
Accounts receivable, net of allowances of $1.3 and $0.4 at December 31, 2022 and March 31, 2022, respectively |
| 711.1 |
|
|
| 579.4 |
|
Software development costs and licenses |
| 68.1 |
|
|
| 81.4 |
|
Contract assets |
| 84.4 |
|
|
| 104.9 |
|
Prepaid expenses and other |
| 282.1 |
|
|
| 193.4 |
|
Total current assets |
| 2,606.7 |
|
|
| 3,871.1 |
|
Fixed assets, net |
| 360.6 |
|
|
| 242.0 |
|
Right-of-use assets |
| 319.9 |
|
|
| 217.2 |
|
Software development costs and licenses, net of current portion |
| 1,035.9 |
|
|
| 755.9 |
|
Goodwill |
| 6,788.2 |
|
|
| 674.6 |
|
Other intangibles, net |
| 5,222.6 |
|
|
| 266.5 |
|
Deferred tax assets |
| 123.9 |
|
|
| 73.8 |
|
Long-term restricted cash and cash equivalents |
| 109.9 |
|
|
| 103.5 |
|
Other assets |
| 313.7 |
|
|
| 341.7 |
|
Total assets | $ | 16,881.4 |
|
| $ | 6,546.3 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
| ||||
Current liabilities: |
|
|
| ||||
Accounts payable | $ | 151.6 |
|
| $ | 125.9 |
|
Accrued expenses and other current liabilities |
| 1,313.3 |
|
|
| 1,074.9 |
|
Deferred revenue |
| 1,136.4 |
|
|
| 865.3 |
|
Lease liabilities |
| 58.5 |
|
|
| 38.9 |
|
Short-term debt |
| 350.0 |
|
|
| — |
|
Total current liabilities |
| 3,009.8 |
|
|
| 2,105.0 |
|
Long-term debt, net |
| 2,735.5 |
|
|
| — |
|
Non-current deferred revenue |
| 31.0 |
|
|
| 70.9 |
|
Non-current lease liabilities |
| 354.2 |
|
|
| 211.3 |
|
Non-current software development royalties |
| 121.2 |
|
|
| 115.5 |
|
Deferred tax liabilities, net |
| 711.3 |
|
|
| 21.8 |
|
Other long-term liabilities |
| 368.0 |
|
|
| 212.1 |
|
Total liabilities | $ | 7,331.0 |
|
| $ | 2,736.6 |
|
Commitments and contingencies (See Note 12) |
|
|
| ||||
Stockholders' equity: |
|
|
| ||||
Preferred stock, $0.01 par value, 5.0 shares authorized; no shares issued and outstanding at December 31, 2022 and March 31, 2022 |
| — |
|
|
| — |
|
Common stock, $0.01 par value, 300.0 and 200.0 shares authorized; 192.2 and 139.0 shares issued and 168.5 and 115.4 outstanding at December 31, 2022 and March 31, 2022, respectively |
| 1.9 |
|
|
| 1.4 |
|
Additional paid-in capital |
| 8,928.7 |
|
|
| 2,597.2 |
|
Treasury stock, at cost; 23.7 and 23.7 common shares at December 31, 2022 and March 31, 2022, respectively |
| (1,020.6 | ) |
|
| (1,020.6 | ) |
Retained earnings |
| 1,774.6 |
|
|
| 2,289.0 |
|
Accumulated other comprehensive loss |
| (134.2 | ) |
|
| (57.3 | ) |
Total stockholders' equity | $ | 9,550.4 |
|
| $ | 3,809.7 |
|
Total liabilities and stockholders' equity | $ | 16,881.4 |
|
| $ | 6,546.3 |
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
(in millions) | ||||||||
|
|
|
|
| ||||
|
| Nine Months Ended December 31, | ||||||
|
|
| 2022 |
|
|
| 2021 |
|
Operating activities: |
|
|
|
| ||||
Net (loss) income |
| $ | (514.4 | ) |
| $ | 307.1 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
| ||||
Amortization and impairment of software development costs and licenses |
|
| 147.6 |
|
|
| 177.8 |
|
Stock-based compensation |
|
| 238.5 |
|
|
| 142.5 |
|
Noncash lease expense |
|
| 35.2 |
|
|
| 25.2 |
|
Amortization of intellectual property |
|
| 740.1 |
|
|
| 49.5 |
|
Depreciation |
|
| 62.9 |
|
|
| 44.7 |
|
Amortization of debt issuance costs |
|
| 12.3 |
|
|
| — |
|
Interest expense |
|
| 79.0 |
|
|
| — |
|
Fair value adjustments |
|
| 37.1 |
|
|
| (6.1 | ) |
Other, net |
|
| (36.0 | ) |
|
| 12.2 |
|
Changes in assets and liabilities, net of effect from purchases of businesses: |
|
|
|
| ||||
Accounts receivable |
|
| 158.0 |
|
|
| (85.8 | ) |
Software development costs and licenses |
|
| (362.9 | ) |
|
| (376.5 | ) |
Prepaid expenses and other current and other non-current assets |
|
| (23.5 | ) |
|
| (142.7 | ) |
Deferred revenue |
|
| (88.1 | ) |
|
| 10.6 |
|
Accounts payable, accrued expenses and other liabilities |
|
| (450.0 | ) |
|
| (139.3 | ) |
Net cash provided by operating activities |
|
| 35.8 |
|
|
| 19.2 |
|
Investing activities: |
|
|
|
| ||||
Change in bank time deposits |
|
| 123.0 |
|
|
| (43.9 | ) |
Sale and maturities of available-for-sale securities |
|
| 436.1 |
|
|
| 494.9 |
|
Purchases of available-for-sale securities |
|
| — |
|
|
| (632.5 | ) |
Purchases of fixed assets |
|
| (137.7 | ) |
|
| (133.4 | ) |
Proceeds from sale of long-term investment |
|
| 20.6 |
|
|
| — |
|
Purchases of long-term investments |
|
| (10.2 | ) |
|
| (8.7 | ) |
Business acquisitions |
|
| (3,241.8 | ) |
|
| (157.3 | ) |
Other |
|
| (4.8 | ) |
|
| 1.1 |
|
Net cash used in investing activities |
|
| (2,814.8 | ) |
|
| (479.8 | ) |
Financing activities: |
|
|
|
| ||||
Tax payment related to net share settlements on restricted stock awards |
|
| (90.6 | ) |
|
| (59.1 | ) |
Issuance of common stock |
|
| 22.3 |
|
|
| 19.6 |
|
Payment for settlement of convertible notes |
|
| (1,166.8 | ) |
|
| — |
|
Proceeds from issuance of debt |
|
| 3,248.9 |
|
|
| — |
|
Cost of debt |
|
| (22.4 | ) |
|
| — |
|
Repayment of debt |
|
| (200.0 | ) |
|
| — |
|
Settlement of capped calls |
|
| 140.1 |
|
|
| — |
|
Loan repayment |
|
| — |
|
|
| (0.2 | ) |
Repurchase of common stock |
|
| — |
|
|
| (200.0 | ) |
Payment of contingent earn-out consideration |
|
| (26.9 | ) |
|
| — |
|
Net cash provided by (used in) financing activities |
|
| 1,904.6 |
|
|
| (239.7 | ) |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents |
|
| (18.6 | ) |
|
| (2.7 | ) |
Net change in cash, cash equivalents, and restricted cash and cash equivalents |
|
| (893.0 | ) |
|
| (703.0 | ) |
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1) |
|
| 2,195.3 |
|
|
| 2,060.2 |
|
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1) |
| $ | 1,302.3 |
|
| $ | 1,357.2 |
|
|
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 December 31, 2022 |
| Three Months Ended December 31, 2021 | ||||||||
|
| Amount |
| % of total |
| Amount |
| % of total | ||||
Net revenue by geographic region |
|
|
|
|
|
|
|
| ||||
United States |
| $ | 886.8 |
| 63 | % |
| $ | 534.9 |
| 59 | % |
International |
|
| 521.0 |
| 37 | % |
|
| 368.4 |
| 41 | % |
Total net revenue |
| $ | 1,407.8 |
| 100 | % |
| $ | 903.3 |
| 100 | % |
|
|
|
|
|
|
|
|
| ||||
Net Bookings by geographic region |
|
|
|
|
|
|
|
| ||||
United States |
| $ | 872.2 |
| 63 | % |
| $ | 504.3 |
| 58 | % |
International |
|
| 510.4 |
| 37 | % |
|
| 361.8 |
| 42 | % |
Total Net Bookings |
| $ | 1,382.6 |
| 100 | % |
| $ | 866.1 |
| 100 | % |
|
|
|
|
|
|
| ||||||
|
| Three Months Ended December 31, 2022 |
| Three Months Ended December 31, 2021 | ||||||||
|
| Amount |
| % of total |
| Amount |
| % of total | ||||
Net revenue by distribution channel |
|
|
|
|
|
|
|
| ||||
Digital online |
| $ | 1,336.7 |
| 95 | % |
| $ | 795.7 |
| 88 | % |
Physical retail and other |
|
| 71.1 |
| 5 | % |
|
| 107.6 |
| 12 | % |
Total net revenue |
| $ | 1,407.8 |
| 100 | % |
| $ | 903.3 |
| 100 | % |
|
|
|
|
|
|
|
|
| ||||
Net Bookings by distribution channel |
|
|
|
|
|
|
|
| ||||
Digital online |
| $ | 1,308.2 |
| 95 | % |
| $ | 762.3 |
| 88 | % |
Physical retail and other |
|
| 74.4 |
| 5 | % |
|
| 103.8 |
| 12 | % |
Total Net Bookings |
| $ | 1,382.6 |
| 100 | % |
| $ | 866.1 |
| 100 | % |
|
|
|
|
|
|
| ||||||
|
| Three Months Ended December 31, 2022 |
| Three Months Ended December 31, 2021 | ||||||||
|
| Amount |
| % of total |
| Amount |
| % of total | ||||
Net revenue by platform mix |
|
|
|
|
|
|
|
| ||||
Mobile |
| $ | 721.2 |
| 51 | % |
| $ | 103.8 |
| 11 | % |
Console |
|
| 561.4 |
| 40 | % |
|
| 665.5 |
| 74 | % |
PC and other |
|
| 125.2 |
| 9 | % |
|
| 134.0 |
| 15 | % |
Total net revenue |
| $ | 1,407.8 |
| 100 | % |
| $ | 903.3 |
| 100 | % |
|
|
|
|
|
|
|
|
| ||||
Net Bookings by platform mix |
|
|
|
|
|
|
|
| ||||
Mobile |
| $ | 713.2 |
| 52 | % |
| $ | 108.2 |
| 12 | % |
Console |
|
| 541.6 |
| 39 | % |
|
| 622.3 |
| 72 | % |
PC and other |
|
| 127.8 |
| 9 | % |
|
| 135.6 |
| 16 | % |
Total Net Bookings |
| $ | 1,382.6 |
| 100.0 | % |
| $ | 866.1 |
| 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, 2022 |
| Nine Months Ended December 31, 2021 | ||||||||
|
| Amount |
| % of total |
| Amount |
| % of total | ||||
Net revenue by geographic region |
|
|
|
|
|
|
|
| ||||
United States |
| $ | 2,412.6 |
| 62 | % |
| $ | 1,543.0 |
| 60 | % |
International |
|
| 1,491.1 |
| 38 | % |
|
| 1,031.8 |
| 40 | % |
Total net revenue |
| $ | 3,903.7 |
| 100 | % |
| $ | 2,574.8 |
| 100 | % |
|
|
|
|
|
|
|
|
| ||||
Net Bookings by geographic region |
|
|
|
|
|
|
|
| ||||
United States |
| $ | 2,442.3 |
| 63 | % |
| $ | 1,526.9 |
| 60 | % |
International |
|
| 1,447.7 |
| 37 | % |
|
| 1,035.5 |
| 40 | % |
Total Net Bookings |
| $ | 3,890.0 |
| 100 | % |
| $ | 2,562.4 |
| 100 | % |
|
|
|
|
|
|
| ||||||
|
| Nine Months Ended December 31, 2022 |
| Nine Months Ended December 31, 2021 | ||||||||
|
| Amount |
| % of total |
| Amount |
| % of total | ||||
Net revenue by distribution channel |
|
|
|
|
|
|
|
| ||||
Digital online |
| $ | 3,693.7 |
| 95 | % |
| $ | 2,315.6 |
| 90 | % |
Physical retail and other |
|
| 210.0 |
| 5 | % |
|
| 259.2 |
| 10 | % |
Total net revenue |
| $ | 3,903.7 |
| 100 | % |
| $ | 2,574.8 |
| 100 | % |
|
|
|
|
|
|
|
|
| ||||
Net Bookings by distribution channel |
|
|
|
|
|
|
|
| ||||
Digital online |
| $ | 3,685.1 |
| 95 | % |
| $ | 2,318.8 |
| 90 | % |
Physical retail and other |
|
| 204.9 |
| 5 | % |
|
| 243.6 |
| 10 | % |
Total Net Bookings |
| $ | 3,890.0 |
| 100 | % |
| $ | 2,562.4 |
| 100 | % |
|
|
|
|
|
|
| ||||||
|
| Nine Months Ended December 31, 2022 |
| Nine Months Ended December 31, 2021 | ||||||||
|
| Amount |
| % of total |
| Amount |
| % of total | ||||
Net revenue by platform mix |
|
|
|
|
|
|
|
| ||||
Mobile |
| $ | 1,820.9 |
| 47 | % |
| $ | 301.2 |
| 12 | % |
Console |
|
| 1,720.5 |
| 44 | % |
|
| 1,864.0 |
| 72 | % |
PC and other |
|
| 362.3 |
| 9 | % |
|
| 409.6 |
| 16 | % |
Total net revenue |
| $ | 3,903.7 |
| 100 | % |
| $ | 2,574.8 |
| 100 | % |
|
|
|
|
|
|
|
|
| ||||
Net Bookings by platform mix |
|
|
|
|
|
|
|
| ||||
Mobile |
| $ | 1,795.8 |
| 46 | % |
| $ | 303.9 |
| 12 | % |
Console |
|
| 1,722.4 |
| 44 | % |
|
| 1,838.2 |
| 72 | % |
PC and other |
|
| 371.8 |
| 10 | % |
|
| 420.3 |
| 16 | % |
Total Net Bookings |
| $ | 3,890.0 |
| 100.0 | % |
| $ | 2,562.4 |
| 100 | % |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
|
|
|
|
|
|
|
| |||||||||||||||
ADDITIONAL DATA |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Three Months Ended December 31, 2022 | Net revenue |
| Cost of revenue- Software development costs and royalties |
| Cost of revenue- Product costs |
| Cost of revenue- Internal royalties |
| Cost of revenue- Licenses |
|
| ||||||||||||
As reported | $ | 1,407.8 |
|
| $ | 294.1 |
|
| $ | 204.6 |
|
| $ | 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 |
|
|
| (202.7 | ) |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Three Months Ended December 31, 2022 | Selling and marketing |
| General and administrative |
| Research and development |
| Depreciation and amortization |
| Interest and other, net |
| Gain (loss) on fair value adjustments, net | ||||||||||||
As reported | $ | 446.7 |
|
| $ | 168.9 |
|
| $ | 238.2 |
|
| $ | 35.0 |
|
| $ | (28.3 | ) |
| $ | 1.1 |
|
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
| (3.8 | ) |
|
| ||||||||||
Stock-based compensation |
| (23.0 | ) |
|
| (25.8 | ) |
|
| (29.2 | ) |
|
|
|
|
|
| ||||||
Amortization and impairment of acquired intangibles |
| (80.5 | ) |
|
|
|
| (7.2 | ) |
|
| (11.4 | ) |
|
|
|
| ||||||
Acquisition related expenses |
| (1.1 | ) |
|
| (16.3 | ) |
|
| (4.1 | ) |
|
|
|
| 3.4 |
|
|
| ||||
Gain on fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
| (1.1 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Three Months Ended December 31, 2021 | Net revenue |
| Cost of revenue- Software development costs and royalties |
| Cost of revenue- Product costs |
| Cost of revenue- Internal royalties |
| Cost of revenue- Licenses |
|
| ||||||||||||
As reported | $ | 903.3 |
|
| $ | 43.1 |
|
| $ | 73.0 |
|
| $ | 172.8 |
|
| $ | 61.5 |
|
|
| ||
Net effect from deferred revenue and related cost of revenue |
| (37.1 | ) |
|
| 2.6 |
|
|
| 2.7 |
|
|
|
|
| 0.2 |
|
|
| ||||
Stock-based compensation |
|
|
| (9.4 | ) |
|
|
|
|
|
|
|
| ||||||||||
Amortization and impairment of acquired intangibles |
|
|
| (12.5 | ) |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Three Months Ended December 31, 2021 | Selling and marketing |
| General and administrative |
| Research and development |
| Depreciation and amortization |
| Interest and other, net |
| Gain (loss) on fair value adjustments, net | ||||||||||||
As reported | $ | 135.3 |
|
| $ | 130.8 |
|
| $ | 116.7 |
|
| $ | 16.0 |
|
| $ | (5.6 | ) |
| $ | 3.7 |
|
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
| 1.0 |
|
|
| ||||||||||
Stock-based compensation |
| (7.2 | ) |
|
| (16.5 | ) |
|
| (13.2 | ) |
|
|
|
|
|
| ||||||
Amortization and impairment of acquired intangibles |
| (0.8 | ) |
|
|
|
| (1.6 | ) |
|
| (0.3 | ) |
|
|
|
| ||||||
Impact of business reorganization |
|
|
| (0.1 | ) |
|
|
|
|
|
|
|
| ||||||||||
Acquisition related expenses |
|
|
| (14.0 | ) |
|
|
|
|
|
|
|
| ||||||||||
Gain on fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
| (3.7 | ) | ||||||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
|
|
|
|
|
|
|
| |||||||||||||||
ADDITIONAL DATA |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Nine Months Ended December 31, 2022 | Net revenue |
| Cost of revenue- Software development costs and royalties |
| Cost of revenue- Product costs |
| Cost of revenue- Internal royalties |
| Cost of revenue- Licenses |
|
| ||||||||||||
As reported | $ | 3,903.7 |
|
| $ | 749.1 |
|
| $ | 526.0 |
|
| $ | 334.4 |
|
| $ | 232.1 |
|
|
| ||
Net effect from deferred revenue and related cost of revenue |
| (13.6 | ) |
|
| 12.9 |
|
|
| 0.3 |
|
|
|
|
| 2.6 |
|
|
| ||||
Stock-based compensation |
|
|
| 17.0 |
|
|
|
|
|
|
|
|
| ||||||||||
Amortization and impairment of acquired intangibles |
|
|
| (500.2 | ) |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Nine Months Ended December 31, 2022 | Selling and marketing |
| General and administrative |
| Research and development |
| Depreciation and amortization |
| Interest and other, net |
| Gain (loss) on long-term investments, net | ||||||||||||
As reported | $ | 1,163.1 |
|
| $ | 620.6 |
|
| $ | 655.2 |
|
| $ | 86.0 |
|
| $ | (108.1 | ) |
| $ | (36.6 | ) |
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
| 1.3 |
|
|
| ||||||||||
Stock-based compensation |
| (76.2 | ) |
|
| (90.6 | ) |
|
| (88.7 | ) |
|
|
|
|
|
| ||||||
Amortization and impairment of acquired intangibles |
| (196.5 | ) |
|
|
|
| (17.4 | ) |
|
| (24.1 | ) |
|
|
|
| ||||||
Acquisition related expenses |
| (8.0 | ) |
|
| (140.1 | ) |
|
| (15.3 | ) |
|
|
|
| 24.4 |
|
|
| 37.9 |
| ||
Gain on long-term investments, net |
|
|
|
|
|
|
|
|
|
|
| (0.5 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Nine Months Ended December 31, 2021 | Net revenue |
| Cost of goods revenue- Software development costs and royalties |
| Cost of revenue- Product costs |
| Cost of revenue- Internal royalties |
| Cost of revenue- Licenses |
|
| ||||||||||||
As reported | $ | 2,574.8 |
|
| $ | 275.0 |
|
| $ | 186.0 |
|
| $ | 477.8 |
|
| $ | 198.0 |
|
|
| ||
Net effect from deferred revenue and related cost of revenue |
| (12.4 | ) |
|
| 6.2 |
|
|
| (0.1 | ) |
|
|
|
| 0.2 |
|
|
| ||||
Stock-based compensation |
|
|
| (31.8 | ) |
|
|
|
|
|
|
|
| ||||||||||
Amortization and impairment of acquired intangibles |
|
|
| (37.6 | ) |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Nine Months Ended December 31, 2021 | Selling and marketing |
| General and administrative |
| Research and development |
| Depreciation and amortization |
| Interest and other, net |
| Gain (loss) on long-term investments, net | ||||||||||||
As reported | $ | 375.2 |
|
| $ | 363.0 |
|
| $ | 310.5 |
|
| $ | 44.6 |
|
| $ | (7.2 | ) |
| $ | 6.1 |
|
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
| 1.4 |
|
|
| ||||||||||
Stock-based compensation |
| (22.4 | ) |
|
| (50.3 | ) |
|
| (38.0 | ) |
|
|
|
|
|
| ||||||
Amortization and impairment of acquired intangibles |
| (4.5 | ) |
|
|
|
| (5.0 | ) |
|
| (1.0 | ) |
|
|
|
| ||||||
Impact of business reorganization |
|
|
| (0.5 | ) |
|
|
|
|
|
|
|
| ||||||||||
Acquisition related expenses |
|
|
| (39.5 | ) |
|
|
|
|
|
|
|
| ||||||||||
Gain on long-term investments, net |
|
|
|
|
|
|
|
|
|
|
| (6.1 | ) | ||||||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
|
|
|
| |||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE |
|
|
|
| |||
(in millions) |
|
|
|
| |||
|
|
|
|
| |||
|
| Nine Months Ended December 31, | |||||
|
|
| 2022 |
|
|
| 2021 |
Net cash from operating activities |
| $ | 35.8 |
|
| $ | 19.0 |
Net change in Restricted cash (1) |
|
| 87.1 |
|
|
| 259.7 |
Adjusted Unrestricted Operating Cash Flow |
| $ | 122.9 |
|
| $ | 278.7 |
|
|
|
|
| |||
|
| Nine Months Ended December 31, | |||||
|
|
| 2022 |
|
|
| 2021 |
Restricted cash beginning of period |
| $ | 463.3 |
|
| $ | 637.4 |
Restricted cash end of period |
|
| 441.4 |
|
|
| 370.5 |
Restricted cash related to acquisitions |
|
| (65.2 | ) |
|
| 7.1 |
(1) Net change in Restricted cash |
| $ | 87.1 |
|
| $ | 259.7 |
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, | ||||||||||||
|
|
| 2022 |
|
|
| 2021 |
|
| 2022 |
|
|
| 2021 |
|
Net (loss) income |
| $ | (153.4 | ) |
| $ | 144.6 |
| $ | (514.4 | ) |
| $ | 307.1 |
|
(Benefit from) provision for income taxes |
|
| (46.7 | ) |
| $ | 7.6 |
| $ | (93.1 | ) |
| $ | 36.5 |
|
Interest expense (income) |
|
| 22.5 |
|
| $ | (1.0 | ) | $ | 72.1 |
|
| $ | (3.2 | ) |
Depreciation and amortization |
|
| 35.0 |
|
|
| 16.0 |
|
| 86.0 |
|
|
| 44.6 |
|
Amortization of acquired intangibles |
|
| 290.4 |
|
|
| 12.5 |
|
| 714.1 |
|
|
| 47.0 |
|
EBITDA |
| $ | 147.8 |
|
| $ | 179.8 |
| $ | 264.6 |
|
| $ | 432.0 |
|
Outlook |
|
|
|
| Twelve Months Ending March 31, 2023 |
Net loss |
| $(721) to $(704) |
Benefit from income taxes |
| $(138) to $(135) |
Interest expense |
| $100 |
Depreciation |
| $119 |
Amortization of acquired intangibles |
| $1,026 |
EBITDA |
| $386 to $406 |
Outlook |
|
|
|
| Three Months Ending March 31, 2023 |
Net loss |
| $(214) to $(197) |
Benefit from income taxes |
| $(38) to $(35) |
Interest expense |
| $28 |
Depreciation |
| $32 |
Amortization of acquired intangibles |
| $294 |
EBITDA |
| $102 to $122 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230206005455/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 AffairsTake-Two Interactive Software, Inc.(646) 536-2983 Alan.Lewis@take2games.com
Source: Take-Two Interactive