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 December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Financial Data | ||||||||||||||||||||||||||||||||||||||
in millions | Statement of Operations | Change in deferred net revenue and related cost of revenue | Stock-based compensation | Amortization and impairment of acquired intangibles | Business acquisition | Other (a) | ||||||||||||||||||||||||||||||||
GAAP | ||||||||||||||||||||||||||||||||||||||
Total net revenue | $1,366.3 | (28.5) | ||||||||||||||||||||||||||||||||||||
Cost of revenue | 688.2 | — | (6.4) | (230.1) | ||||||||||||||||||||||||||||||||||
Gross profit | 678.1 | (28.5) | 6.4 | 230.1 | ||||||||||||||||||||||||||||||||||
Operating expenses | 807.6 | (79.5) | (19.0) | 10.9 | (1.3) | |||||||||||||||||||||||||||||||||
(Loss) income from operations | (129.5) | (28.5) | 85.9 | 249.1 | (10.9) | 1.3 | ||||||||||||||||||||||||||||||||
Interest and other, net | (22.5) | (1.8) | 1.8 | 3.8 | ||||||||||||||||||||||||||||||||||
(Loss) gain on fair value adjustments, net | (0.3) | 0.3 | ||||||||||||||||||||||||||||||||||||
(Loss) income before income taxes | (152.3) | (30.3) | 85.9 | 249.1 | (9.1) | 5.4 | ||||||||||||||||||||||||||||||||
Non-GAAP | ||||||||||||||||||||||||||||||||||||||
EBITDA | 146.5 | (28.5) | 85.9 | (12.6) | 5.1 |
Fiscal Year Ending March 31, 2024 | ||||||||||||||||||||||||||||||||
Financial Data | ||||||||||||||||||||||||||||||||
$ in millions except for per share amounts | Outlook (1) | Change in deferred net revenue and related cost of revenue | Stock-based compensation | Amortization and impairment of acquired intangibles | Business acquisition and other (a) | |||||||||||||||||||||||||||
GAAP | ||||||||||||||||||||||||||||||||
Total net revenue | $5,270 to $5,320 | $(20) | ||||||||||||||||||||||||||||||
Cost of revenue | $2,787 to $2,806 | $(27) | $(991) | $10 | ||||||||||||||||||||||||||||
Operating expenses | $3,545 to $3,555 | $(309) | $(115) | $(200) | ||||||||||||||||||||||||||||
Interest and other, net | $110 | $1 | $(22) | |||||||||||||||||||||||||||||
(Loss) income before income taxes | $(1,172) to $(1,151) | $(21) | $336 | $1,106 | $212 | |||||||||||||||||||||||||||
Net loss | $(1,013) to $(995) | |||||||||||||||||||||||||||||||
Net loss per share | $(5.95) to $(5.85) | |||||||||||||||||||||||||||||||
Net cash provided by operating activities | approximately $90 | |||||||||||||||||||||||||||||||
Capital expenditures | approximately $150 | |||||||||||||||||||||||||||||||
Non-GAAP | ||||||||||||||||||||||||||||||||
EBITDA | $313 to $334 | $(20) | $336 | $25 | ||||||||||||||||||||||||||||
Adjusted Unrestricted Operating Cash Flow | approximately $100 | |||||||||||||||||||||||||||||||
Operational metric | ||||||||||||||||||||||||||||||||
Net Bookings | $5,250 to $5,300 |
Three Months Ending March 31, 2024 | ||||||||||||||||||||||||||||||||
Financial Data | ||||||||||||||||||||||||||||||||
$ in millions except for per share amounts | Outlook (1) | Change in deferred net revenue and related cost of revenue | Stock-based compensation | Amortization of intangible assets | Business acquisition and other | |||||||||||||||||||||||||||
GAAP | ||||||||||||||||||||||||||||||||
Total net revenue | $1,323 to $1,373 | $(57) | ||||||||||||||||||||||||||||||
Cost of revenue | $609 to $628 | $(3) | $(6) | $(164) | ||||||||||||||||||||||||||||
Operating expenses | $896 to $906 | $(82) | $(20) | $6 | ||||||||||||||||||||||||||||
Interest and other, net | $30 | $(2) | ||||||||||||||||||||||||||||||
(Loss) income before income taxes | $(213) to $(192) | $(54) | $88 | $184 | $(4) | |||||||||||||||||||||||||||
Net loss | $(170) to $(153) | |||||||||||||||||||||||||||||||
Net loss per share | $(1.00) to $(0.90) | |||||||||||||||||||||||||||||||
Non-GAAP | ||||||||||||||||||||||||||||||||
EBITDA | $33 to $55 | $(54) | $88 | $(6) | ||||||||||||||||||||||||||||
Operational metric | ||||||||||||||||||||||||||||||||
Net Bookings | $1,270 to $1,320 |
Label | Product | Platforms | Release Date | ||||||||
Zynga | Top Troops | iOS, Android | October 3, 2023 | ||||||||
2K | Borderlands 3 Ultimate Edition | Switch | October 6, 2023 | ||||||||
2K | NBA 2K24 Arcade Edition | Apple Arcade | October 24, 2023 | ||||||||
Zynga | Match Factory! | iOS | November 7, 2023 | ||||||||
Private Division | Rollerdrome | Xbox Series X|S | November 28, 2023 | ||||||||
Rockstar Games | Grand Theft Auto Online: The Chop Shop | PS4, PS5, XBox One, Xbox Series X|S, PC | December 12, 2023 | ||||||||
Zynga | Match Factory! | Android | December 21, 2023 |
Label | Product | Platforms | Release Date | ||||||||
2K | WWE 2K24 | PS4, PS5, Xbox One, Xbox Series X|S, PC | March 8, 2024 | ||||||||
Private Division | Penny's Big Breakaway | PS5, Xbox Series X|S, PC, Switch | Q1 Calendar 2024 | ||||||||
Private Division | No Rest for the Wicked | Early Access on PC | Q2 Calendar 2024 | ||||||||
Zynga | Game of Thrones: Legends | iOS, Android | Calendar 2024 | ||||||||
Zynga | Star Wars Hunters | iOS, Android, Switch | Calendar 2024 | ||||||||
Private Division | Tales of the Shire | TBA | Fiscal 2025 | ||||||||
Rockstar Games | Grand Theft Auto VI | PS5, Xbox Series X|S | Calendar 2025 | ||||||||
2K | Top Spin 2K25 | TBA | TBA | ||||||||
Ghost Story Games | Judas | PS5, Xbox Series X|S, PC | TBA |
TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
Game | $ | 1,208.2 | $ | 1,231.3 | $ | 3,432.9 | $ | 3,469.3 | ||||||||||||||||||
Advertising | 158.1 | 176.5 | 517.3 | 434.4 | ||||||||||||||||||||||
Total net revenue | 1,366.3 | 1,407.8 | 3,950.2 | 3,903.7 | ||||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||
Game intangibles | 230.1 | 202.5 | 826.4 | 500.1 | ||||||||||||||||||||||
Product costs | 191.3 | 204.6 | 545.9 | 526.0 | ||||||||||||||||||||||
Software development costs and royalties | 59.7 | 91.6 | 258.5 | 249.0 | ||||||||||||||||||||||
Internal royalties | 134.1 | 116.7 | 319.5 | 334.4 | ||||||||||||||||||||||
Licenses | 73.0 | 76.5 | 227.2 | 232.1 | ||||||||||||||||||||||
Total cost of revenue | 688.2 | 691.9 | 2,177.5 | 1,841.6 | ||||||||||||||||||||||
Gross profit | 678.1 | 715.9 | 1,772.7 | 2,062.1 | ||||||||||||||||||||||
Selling and marketing | 367.6 | 446.7 | 1,103.1 | 1,163.1 | ||||||||||||||||||||||
Research and development | 232.4 | 238.2 | 710.7 | 655.2 | ||||||||||||||||||||||
General and administrative | 165.0 | 168.9 | 542.7 | 620.6 | ||||||||||||||||||||||
Depreciation and amortization | 42.6 | 35.0 | 128.3 | 86.0 | ||||||||||||||||||||||
Goodwill impairment | — | — | 165.4 | — | ||||||||||||||||||||||
Total operating expenses | 807.6 | 888.8 | 2,650.2 | 2,524.9 | ||||||||||||||||||||||
Loss from operations | (129.5) | (172.9) | (877.5) | (462.8) | ||||||||||||||||||||||
Interest and other, net | (22.5) | (28.3) | (79.0) | (108.1) | ||||||||||||||||||||||
(Loss) gain on fair value adjustments, net | (0.3) | 1.1 | (1.7) | (36.6) | ||||||||||||||||||||||
Loss before income taxes | (152.3) | (200.1) | (958.2) | (607.5) | ||||||||||||||||||||||
Benefit from income taxes | 60.7 | 46.7 | 117.0 | 93.1 | ||||||||||||||||||||||
Net loss | $ | (91.6) | $ | (153.4) | $ | (841.2) | $ | (514.4) | ||||||||||||||||||
Loss per share: | ||||||||||||||||||||||||||
Basic and diluted loss per share | $ | (0.54) | $ | (0.91) | $ | (4.95) | $ | (3.27) | ||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||
Basic | 170.3 | 168.0 | 169.9 | 157.2 | ||||||||||||||||||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(in millions, except per share amounts) | ||||||||||||||
December 31, 2023 | March 31, 2023 | |||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 898.7 | $ | 827.4 | ||||||||||
Short-term investments | 23.5 | 187.0 | ||||||||||||
Restricted cash and cash equivalents | 184.6 | 307.6 | ||||||||||||
Accounts receivable, net of allowances of $1.2 and $1.3 at December 31, 2023 and March 31, 2023, respectively | 666.3 | 763.2 | ||||||||||||
Software development costs and licenses | 69.9 | 65.9 | ||||||||||||
Contract assets | 88.7 | 79.9 | ||||||||||||
Prepaid expenses and other | 286.8 | 277.1 | ||||||||||||
Total current assets | 2,218.5 | 2,508.1 | ||||||||||||
Fixed assets, net | 400.4 | 402.8 | ||||||||||||
Right-of-use assets | 316.6 | 282.7 | ||||||||||||
Software development costs and licenses, net of current portion | 1,444.3 | 1,072.2 | ||||||||||||
Goodwill | 6,614.2 | 6,767.1 | ||||||||||||
Other intangibles, net | 3,546.9 | 4,453.2 | ||||||||||||
Deferred tax assets | 7.1 | 44.8 | ||||||||||||
Long-term restricted cash and cash equivalents | 106.5 | 99.6 | ||||||||||||
Other assets | 241.2 | 231.6 | ||||||||||||
Total assets | $ | 14,895.7 | $ | 15,862.1 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 151.8 | $ | 140.1 | ||||||||||
Accrued expenses and other current liabilities | 1,022.2 | 1,225.7 | ||||||||||||
Deferred revenue | 1,081.2 | 1,078.8 | ||||||||||||
Lease liabilities | 64.0 | 60.2 | ||||||||||||
Short-term debt, net | 373.2 | 1,346.8 | ||||||||||||
Total current liabilities | 2,692.4 | 3,851.6 | ||||||||||||
Long-term debt, net | 2,708.2 | 1,733.0 | ||||||||||||
Non-current deferred revenue | 61.3 | 35.5 | ||||||||||||
Non-current lease liabilities | 380.7 | 347.0 | ||||||||||||
Non-current software development royalties | 100.8 | 110.2 | ||||||||||||
Deferred tax liabilities, net | 223.0 | 534.0 | ||||||||||||
Other long-term liabilities | 220.7 | 208.3 | ||||||||||||
Total liabilities | $ | 6,387.1 | $ | 6,819.6 | ||||||||||
Stockholders' equity: | ||||||||||||||
Preferred stock, $0.01 par value, 5.0 shares authorized; no shares issued and outstanding at December 31, 2023 and March 31, 2023 | — | — | ||||||||||||
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 194.2 and 192.6 shares issued and 170.5 and 168.9 outstanding at December 31, 2023 and March 31, 2023, respectively | 1.9 | 1.9 | ||||||||||||
Additional paid-in capital | 9,286.9 | 9,010.2 | ||||||||||||
Treasury stock, at cost; 23.7 and 23.7 common shares at December 31, 2023 and March 31, 2023, respectively | (1,020.6) | (1,020.6) | ||||||||||||
Retained earnings | 323.1 | 1,164.3 | ||||||||||||
Accumulated other comprehensive loss | (82.7) | (113.3) | ||||||||||||
Total stockholders' equity | $ | 8,508.6 | $ | 9,042.5 | ||||||||||
Total liabilities and stockholders' equity | $ | 14,895.7 | $ | 15,862.1 |
TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||||||||
(in millions) | ||||||||||||||
Nine Months Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Operating activities: | ||||||||||||||
Net loss | $ | (841.2) | $ | (514.4) | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||
Amortization and impairment of software development costs and licenses | 152.1 | 147.6 | ||||||||||||
Stock-based compensation | 255.0 | 238.5 | ||||||||||||
Noncash lease expense | 46.4 | 35.2 | ||||||||||||
Amortization and impairment of intangibles | 924.9 | 740.1 | ||||||||||||
Depreciation | 101.6 | 62.9 | ||||||||||||
Goodwill impairment | 165.4 | — | ||||||||||||
Interest expense | 103.2 | 79.0 | ||||||||||||
Gain on debt extinguishment | (7.7) | — | ||||||||||||
Fair value adjustments | 1.7 | 37.1 | ||||||||||||
Other, net | 30.6 | (23.7) | ||||||||||||
Changes in assets and liabilities, net of effect from purchases of businesses: | ||||||||||||||
Accounts receivable | 98.0 | 158.0 | ||||||||||||
Software development costs and licenses | (457.3) | (362.9) | ||||||||||||
Prepaid expenses and other current and other non-current assets | (47.8) | (23.5) | ||||||||||||
Deferred revenue | 27.2 | (88.1) | ||||||||||||
Accounts payable, accrued expenses and other liabilities | (559.3) | (450.0) | ||||||||||||
Net cash (used in) provided by operating activities | (7.2) | 35.8 | ||||||||||||
Investing activities: | ||||||||||||||
Change in bank time deposits | 21.2 | 123.0 | ||||||||||||
Sale and maturities of available-for-sale securities | 144.0 | 436.1 | ||||||||||||
Purchases of fixed assets | (95.5) | (137.7) | ||||||||||||
Proceeds from sale of long-term investment | — | 20.6 | ||||||||||||
Purchases of long-term investments | (17.5) | (10.2) | ||||||||||||
Business acquisitions | (17.5) | (3,241.8) | ||||||||||||
Other | (8.2) | (4.8) | ||||||||||||
Net cash provided by (used in) investing activities | 26.5 | (2,814.8) | ||||||||||||
Financing activities: | ||||||||||||||
Tax payment related to net share settlements on restricted stock awards | (76.6) | (90.6) | ||||||||||||
Issuance of common stock | 38.1 | 22.3 | ||||||||||||
Payment for settlement of convertible notes | — | (1,166.8) | ||||||||||||
Proceeds from issuance of debt | 999.3 | 3,248.9 | ||||||||||||
Cost of debt | (7.5) | (22.4) | ||||||||||||
Settlement of capped calls | — | 140.1 | ||||||||||||
Repayment of debt | (989.6) | (200.0) | ||||||||||||
Payment of contingent earn-out consideration | (35.7) | (26.9) | ||||||||||||
Net cash (used in) provided by financing activities | (72.0) | 1,904.6 | ||||||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents | 7.9 | (18.6) | ||||||||||||
Net change in cash, cash equivalents, and restricted cash and cash equivalents | (44.8) | (893.0) | ||||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1) | 1,234.6 | 2,195.3 | ||||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1) | $ | 1,189.8 | $ | 1,302.3 |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by geographic region | ||||||||||||||||||||||||||
United States | $ | 818.3 | 60 | % | $ | 886.8 | 63 | % | ||||||||||||||||||
International | 548.0 | 40 | % | 521.0 | 37 | % | ||||||||||||||||||||
Total Net revenue | $ | 1,366.3 | 100 | % | $ | 1,407.8 | 100 | % | ||||||||||||||||||
Net Bookings by geographic region | ||||||||||||||||||||||||||
United States | $ | 786.6 | 59 | % | $ | 872.2 | 63 | % | ||||||||||||||||||
International | 551.2 | 41 | % | 510.4 | 37 | % | ||||||||||||||||||||
Total Net Bookings | $ | 1,337.8 | 100 | % | $ | 1,382.6 | 100 | % | ||||||||||||||||||
Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 1,297.3 | 95 | % | $ | 1,336.7 | 95 | % | ||||||||||||||||||
Physical retail and other | 69.0 | 5 | % | 71.1 | 5 | % | ||||||||||||||||||||
Total Net revenue | $ | 1,366.3 | 100 | % | $ | 1,407.8 | 100 | % | ||||||||||||||||||
Net Bookings by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 1,268.4 | 95 | % | $ | 1,308.2 | 95 | % | ||||||||||||||||||
Physical retail and other | 69.4 | 5 | % | 74.4 | 5 | % | ||||||||||||||||||||
Total Net Bookings | $ | 1,337.8 | 100 | % | $ | 1,382.6 | 100 | % | ||||||||||||||||||
Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by platform | ||||||||||||||||||||||||||
Mobile | $ | 706.7 | 52 | % | $ | 721.2 | 51 | % | ||||||||||||||||||
Console | 547.6 | 40 | % | 561.4 | 40 | % | ||||||||||||||||||||
PC and other | 112.0 | 8 | % | 125.2 | 9 | % | ||||||||||||||||||||
Total Net revenue | $ | 1,366.3 | 100 | % | $ | 1,407.8 | 100 | % | ||||||||||||||||||
Net Bookings by platform | ||||||||||||||||||||||||||
Mobile | $ | 697.9 | 52 | % | $ | 713.2 | 52 | % | ||||||||||||||||||
Console | 524.3 | 39 | % | 541.6 | 39 | % | ||||||||||||||||||||
PC and other | 115.6 | 9 | % | 127.8 | 9 | % | ||||||||||||||||||||
Total Net Bookings | $ | 1,337.8 | 100.0 | % | $ | 1,382.6 | 100 | % |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Nine Months Ended December 31, 2023 | Nine Months Ended December 31, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by geographic region | ||||||||||||||||||||||||||
United States | $ | 2,417.8 | 61 | % | $ | 2,412.6 | 62 | % | ||||||||||||||||||
International | 1,532.4 | 39 | % | 1,491.1 | 38 | % | ||||||||||||||||||||
Total Net revenue | $ | 3,950.2 | 100 | % | $ | 3,903.7 | 100 | % | ||||||||||||||||||
Net Bookings by geographic region | ||||||||||||||||||||||||||
United States | $ | 2,428.6 | 61 | % | $ | 2,442.3 | 63 | % | ||||||||||||||||||
International | 1,555.6 | 39 | % | 1,447.7 | 37 | % | ||||||||||||||||||||
Total Net Bookings | $ | 3,984.2 | 100 | % | $ | 3,890.0 | 100 | % | ||||||||||||||||||
Nine Months Ended December 31, 2023 | Nine Months Ended December 31, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 3,777.0 | 96 | % | $ | 3,693.7 | 95 | % | ||||||||||||||||||
Physical retail and other | 173.2 | 4 | % | 210.0 | 5 | % | ||||||||||||||||||||
Total Net revenue | $ | 3,950.2 | 100 | % | $ | 3,903.7 | 100 | % | ||||||||||||||||||
Net Bookings by distribution channel | ||||||||||||||||||||||||||
Digital online | $ | 3,805.7 | 96 | % | $ | 3,685.1 | 95 | % | ||||||||||||||||||
Physical retail and other | 178.5 | 4 | % | 204.9 | 5 | % | ||||||||||||||||||||
Total Net Bookings | $ | 3,984.2 | 100 | % | $ | 3,890.0 | 100 | % | ||||||||||||||||||
Nine Months Ended December 31, 2023 | Nine Months Ended December 31, 2022 | |||||||||||||||||||||||||
Amount | % of total | Amount | % of total | |||||||||||||||||||||||
Net revenue by platform | ||||||||||||||||||||||||||
Mobile | $ | 2,032.9 | 52 | % | $ | 1,820.9 | 47 | % | ||||||||||||||||||
Console | 1,598.6 | 40 | % | 1,720.5 | 44 | % | ||||||||||||||||||||
PC and other | 318.7 | 8 | % | 362.3 | 9 | % | ||||||||||||||||||||
Total Net revenue | $ | 3,950.2 | 100 | % | $ | 3,903.7 | 100 | % | ||||||||||||||||||
Net Bookings by platform | ||||||||||||||||||||||||||
Mobile | $ | 2,049.4 | 51 | % | $ | 1,795.8 | 46 | % | ||||||||||||||||||
Console | 1,622.4 | 41 | % | 1,722.4 | 44 | % | ||||||||||||||||||||
PC and other | 312.4 | 8 | % | 371.8 | 10 | % | ||||||||||||||||||||
Total Net Bookings | $ | 3,984.2 | 100.0 | % | $ | 3,890.0 | 100 | % |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2023 | Net revenue | Cost of revenue- Game intangibles | Cost of revenue- Product costs | Cost of revenue- Software development costs and royalties | Cost of revenue- Internal royalties | Cost of revenue- Licenses | |||||||||||||||||||||||||||||
As reported | $ | 1,366.3 | $ | 230.1 | $ | 191.3 | $ | 59.7 | $ | 134.1 | $ | 73.0 | |||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | (28.5) | 1.1 | (1.5) | 0.3 | |||||||||||||||||||||||||||||||
Stock-based compensation | (6.4) | ||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (230.1) | ||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2023 | Selling and marketing | Research and development | General and administrative | Depreciation and amortization | Interest and other, net | (Loss) gain on fair value adjustments, net | |||||||||||||||||||||||||||||
As reported | $ | 367.6 | $ | 232.4 | $ | 165.0 | $ | 42.6 | $ | (22.5) | $ | (0.3) | |||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | (1.8) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | (23.9) | (26.9) | (28.7) | ||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (1.6) | (7.2) | (10.3) | ||||||||||||||||||||||||||||||||
Acquisition related expenses | 10.9 | 1.8 | |||||||||||||||||||||||||||||||||
Other | (0.3) | (1.2) | (0.1) | 3.8 | 0.3 | ||||||||||||||||||||||||||||||
Three Months Ended December 31, 2022 | Net revenue | Cost of revenue -Game intangibles | Cost of revenue - Product costs | Cost of revenue- Software development costs and royalties | Cost of revenue- Internal royalties | Cost of revenue- Licenses | |||||||||||||||||||||||||||||
As reported | $ | 1,407.8 | $ | 202.5 | $ | 204.6 | $ | 91.6 | $ | 116.7 | $ | 76.5 | |||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | (25.0) | 2.7 | 2.7 | 1.0 | |||||||||||||||||||||||||||||||
Stock-based compensation | (8.4) | ||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (202.5) | (0.2) | |||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2022 | Selling and marketing | Research and development | General and administrative | Depreciation and amortization | Interest and other, net | (Loss) gain on fair value adjustments, net | |||||||||||||||||||||||||||||
As reported | $ | 446.7 | $ | 238.2 | $ | 168.9 | $ | 35.0 | $ | (28.3) | $ | 1.1 | |||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | (3.8) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | (23.0) | (29.2) | (25.8) | ||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (80.5) | (7.2) | (11.4) | ||||||||||||||||||||||||||||||||
Acquisition related expenses | (1.1) | (1.8) | (16.3) | 3.4 | |||||||||||||||||||||||||||||||
Fair value adjustments, net | (1.1) |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Nine Months Ended December 31, 2023 | Net revenue | Cost of revenue - Game intangibles | Cost of revenue - Product costs | Cost of revenue- Software development costs and royalties | Cost of revenue- Internal royalties | Cost of revenue- Licenses | |||||||||||||||||||||||||||||||||||
As reported | $ | 3,950.2 | $ | 826.4 | $ | 545.9 | $ | 258.5 | $ | 319.5 | $ | 227.2 | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 34.0 | 0.1 | 3.0 | (0.4) | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | (20.5) | ||||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (826.4) | ||||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | 10.0 | ||||||||||||||||||||||||||||||||||||||||
Nine Months Ended December 31, 2023 | Selling and marketing | Research and development | General and administrative | Depreciation and amortization | Goodwill impairment | Interest and other, net | (Loss) gain on fair value adjustments, net | ||||||||||||||||||||||||||||||||||
As reported | $ | 1,103.1 | $ | 710.7 | $ | 542.7 | $ | 128.3 | $ | 165.4 | $ | (79.0) | $ | (1.7) | |||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (72.8) | (79.4) | (82.3) | ||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (49.4) | (21.5) | (28.2) | ||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | (0.2) | (2.2) | (17.1) | (165.4) | (1.0) | 3.2 | |||||||||||||||||||||||||||||||||||
Other | (1.7) | (8.8) | (1.6) | 19.6 | (1.7) | ||||||||||||||||||||||||||||||||||||
Nine Months Ended December 31, 2022 | Net revenue | Cost of revenue - Game intangibles | Cost of revenue - Product costs | Cost of goods revenue- Software development costs and royalties | Cost of revenue - Internal royalties | Cost of revenue - Licenses | |||||||||||||||||||||||||||||||||||
As reported | $ | 3,903.7 | $ | 500.1 | $ | 526.0 | $ | 249.0 | $ | 334.4 | $ | 232.1 | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | (13.6) | 0.3 | 12.9 | 2.6 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | 17.0 | ||||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (500.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended December 31, 2022 | Selling and marketing | Research and development | General and administrative | Depreciation and amortization | Interest and other, net | (Loss) gain on fair value adjustments, net | |||||||||||||||||||||||||||||||||||
As reported | $ | 1,163.1 | $ | 655.2 | $ | 620.6 | $ | 86.0 | $ | (108.1) | $ | (36.6) | |||||||||||||||||||||||||||||
Net effect from deferred revenue and related cost of revenue | 1.3 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (76.2) | (88.7) | (90.6) | ||||||||||||||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (196.5) | (17.4) | (24.1) | ||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | (8.0) | (15.3) | (140.1) | 24.4 | 37.9 | ||||||||||||||||||||||||||||||||||||
Fair value adjustments, net | (0.5) |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE | ||||||||||||||
(in millions) | ||||||||||||||
Nine Months Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net cash from operating activities | $ | (7.2) | $ | 35.8 | ||||||||||
Net change in Restricted cash (1) | 115.0 | 87.1 | ||||||||||||
Adjusted Unrestricted Operating Cash Flow | $ | 107.8 | $ | 122.9 | ||||||||||
Nine Months Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Restricted cash beginning of period | $ | 407.2 | $ | 463.3 | ||||||||||
Restricted cash end of period | 291.1 | 441.4 | ||||||||||||
Restricted cash related to acquisitions | 1.1 | (65.2) | ||||||||||||
(1) Net change in Restricted cash | $ | 115.0 | $ | 87.1 |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net loss | $ | (91.6) | $ | (153.4) | $ | (841.2) | $ | (514.4) | |||||||||||||||
Benefit from income taxes | (60.7) | (46.7) | (117.0) | (93.1) | |||||||||||||||||||
Interest expense (income) | 17.4 | 22.5 | 50.3 | 72.1 | |||||||||||||||||||
Depreciation and amortization | 42.6 | 35.0 | 128.3 | 86.0 | |||||||||||||||||||
Amortization and impairment of acquired intangibles | 238.8 | 290.4 | 897.3 | 714.1 | |||||||||||||||||||
Goodwill impairment | — | — | 165.4 | — | |||||||||||||||||||
EBITDA | $ | 146.5 | $ | 147.8 | $ | 283.2 | $ | 264.6 |
Outlook | ||||||||
Fiscal Year Ending March 31, 2024 | ||||||||
Net loss | $(1,013) to $(995) | |||||||
Benefit from income taxes | $(159) to $(156) | |||||||
Interest expense | $79 | |||||||
Depreciation | $135 | |||||||
Amortization of acquired intangibles | $1,106 | |||||||
Goodwill impairment | $165 | |||||||
EBITDA | $313 to $334 |
Outlook | ||||||||
Three Months Ended March 31, 2024 | ||||||||
Net loss | $(170) to $(153) | |||||||
Benefit from income taxes | $(43) to $(38) | |||||||
Interest expense | $29 | |||||||
Depreciation | $33 | |||||||
Amortization of acquired intangibles | $184 | |||||||
EBITDA | $33 to $55 |