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 |