TTWO
$121.80
Take-Two Interactive
($3.73)
(2.97%)
Earnings Details
Quarter March 2022
Monday, May 16, 2022 4:05:00 PM
Tweet Share Watch
Summary

Take-Two Interactive Beats but Guides Lower

Take-Two Interactive (TTWO) reported Quarter March 2022 earnings of $1.22 per share on revenue of $930.0 million. The consensus earnings estimate was $1.06 per share on revenue of $882.1 million. The Earnings Whisper number was $1.01 per share. Revenue grew 10.8% on a year-over-year basis.

The company said it expects first quarter GAAP earnings of $0.80 to $0.90 per share on revenue of $810.0 million to $860.0 million. The current consensus earnings estimate is $0.57 per share on revenue of $776.28 million for the quarter ending June 30, 2022. However, the company also said it expects fiscal 2023 earnings of $1.90 to $2.15 per share on revenue of $3.67 billion to $3.77 billion. The current consensus earnings estimate is $4.49 per share on revenue of $4.01 billion for the year ending March 31, 2023.

Take-Two Interactive Software, Inc. is a developer, marketer and publisher of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two wholly-owned labels Rockstar Games and 2K.

Results
Reported Earnings
$1.22
Earnings Whisper
$1.01
Consensus Estimate
$1.06
Reported Revenue
$930.0 Mil
Revenue Estimate
$882.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal Year 2022

GAAP net revenue increased 4% to $3.50 billion

GAAP net income per diluted share was $3.58

GAAP net cash provided by operating activities for the twelve-months ended March 31, 2022 was $258.0 million

Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the twelve-months ended March 31, 2022 was $424.9 million

Net Bookings were $3.41 billion

NEW YORK--(BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported strong results for the fourth quarter and its fiscal year 2022, ended March 31, 2022. In addition, the Company provided its initial outlook on a standalone basis for its fiscal year 2023, ending March 31, 2023 and fiscal first quarter 2023, ending June 30, 2022. For further information, please see the fourth quarter fiscal 2022 results slide deck posted to the Company’s investor relations website at http://ir.take2games.com.

Fourth Quarter Fiscal 2022 Financial Highlights

GAAP net revenue increased 11% to $930.0 million, as compared to $839.4 million in last year’s fiscal fourth quarter. Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content and in-game purchases) increased 1% and accounted for 63% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 9% to $833.3 million, as compared to $768.0 million in last year’s fiscal fourth quarter, and accounted for 90% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA® 2K22 and NBA 2K21; Grand Theft Auto® Online and Grand Theft Auto V; Tiny Tina's Wonderlands®; Red Dead Redemption® 2 and Red Dead Online; WWE® 2K22; Top Eleven®; and Two Dots®.

GAAP net income was $111.0 million, or $0.95 per diluted share, as compared to $218.8 million, or $1.88 per diluted share, for the comparable period last year.

The following data, together with a management reporting tax rate of 16%, are used internally by the Company’s management and Board of Directors to adjust the Company’s 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 March 31, 2022

 

 

 

 

Financial Data

 

 

Statement

of

Operations

 

Change in

deferred net

revenue and

related cost of

goods sold

 

Stock-based

compensation

 

Impact of

business

reorganization

 

Amortization

and

impairment

of acquired

intangibles

 

Business

acquisition

 

Loss on

long-term

investments,

net

 

Other

Net revenue

 

$930,004

 

(84,225)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

398,625

 

(17,317)

 

(16,549)

 

 

 

(13,170)

 

 

 

 

 

 

Gross profit

 

531,379

 

(66,908)

 

16,549

 

 

 

13,170

 

 

 

 

 

 

Operating expenses

 

402,515

 

 

 

(23,879)

 

(303)

 

(1,654)

 

(33,289)

 

 

 

 

Income from operations

 

128,864

 

(66,908)

 

40,428

 

303

 

14,824

 

33,289

 

 

 

 

Interest and other, net

 

(6,984)

 

1,635

 

 

 

 

 

 

 

6,475

 

 

 

(279)

Gain (loss) on long-term investments, net

 

(39)

 

 

 

 

 

 

 

 

 

 

 

39

 

 

Income before income taxes

 

121,841

 

(65,273)

 

40,428

 

303

 

14,824

 

39,764

 

39

 

(279)

In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 116.8 million.

Fiscal Fourth Quarter 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 fourth quarter 2022, total Net Bookings grew 8% to $845.8 million, as compared to $784.5 million during last year’s fiscal fourth quarter. Net Bookings from recurrent consumer spending decreased 6% and accounted for 60% of total Net Bookings. Digitally-delivered Net Bookings were up 4% to $765.8 million, as compared to $738.4 million in last year’s fiscal fourth quarter, and accounted for 91% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K22; Grand Theft Auto Online and Grand Theft Auto V; Tiny Tina's Wonderlands; WWE 2K22; Red Dead Redemption 2 and Red Dead Online; Top Eleven; Two Dots; and Grand Theft Auto: The Trilogy - The Definitive Edition.

Catalog accounted for $494.9 million of Net Bookings led by Grand Theft Auto, Red Dead Redemption, Top Eleven, Borderlands®, Two Dots, NBA 2K, and Dragon City®.

Fiscal Year 2022 Financial Highlights

GAAP net revenue increased 4% to $3.50 billion, as compared to $3.37 billion in fiscal year 2021. Recurrent consumer spending increased 6% and accounted for 65% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 6% to $3.15 billion, as compared to $2.97 billion in fiscal year 2021, and accounted for 90% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Grand Theft Auto: The Trilogy - The Definitive Edition; Borderlands 3; Two Dots; and Tiny Tina's Wonderlands.

GAAP net income was $418.0 million, or $3.58 per diluted share, as compared to $588.9 million, or $5.09 per diluted share, for the comparable period last year.

During the twelve-month period ended March 31, 2022, GAAP net cash provided by operating activities was $258.0 million, as compared to $912.3 million in the same period last year. During the twelve-month period ended March 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 $424.9 million, as compared to $920.3 million in the same period last year (please see the section below titled “Non-GAAP Financial Measure” for additional information). As of March 31, 2022, the Company had cash and short-term investments of $2.6 billion.

The following data, together with a management reporting tax rate of 16%, are used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

 

 

Twelve Months Ended March 31, 2022

 

 

 

 

 

 

Financial Data

 

 

 

 

Statement

of

Operations

 

Change in

deferred net

revenue and

related cost of

goods sold

 

Stock-based

compensation

 

Impact of

business

reorganization

 

Amortization

and

impairment

of acquired

intangibles

 

Business

acquisition

 

Gain on

long-term

investments,

net

 

Other

Net revenue

 

$3,504,800

 

(96,616)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

1,535,401

 

(11,785)

 

(48,381)

 

 

 

(50,751)

 

 

 

 

 

 

Gross profit

 

1,969,399

 

(84,831)

 

(48,381)

 

 

 

(50,751)

 

 

 

 

 

 

Operating expenses

 

1,495,804

 

 

 

(134,588)

 

(849)

 

(12,105)

 

(72,819)

 

 

 

 

Income from operations

 

473,595

 

(84,831)

 

182,969

 

(849)

 

62,856

 

72,819

 

 

 

 

Interest and other, net

 

(14,212)

 

2,999

 

 

 

 

 

 

 

6,475

 

 

 

(279)

Gain (loss) on long-term investments, net

 

6,015

 

 

 

 

 

 

 

 

 

 

 

(6,015)

 

 

Income before income taxes

 

465,398

 

(81,832)

 

182,969

 

849

 

62,856

 

79,294

 

(6,015)

 

(279)

In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 116.8 million.

Fiscal Year 2022 Operational Metric – Net Bookings

Total Net Bookings declined 4% to $3.41 billion, as compared to $3.55 billion in fiscal year 2021. Net Bookings from recurrent consumer spending decreased 6% and accounted for 64% of total Net Bookings. Digitally-delivered Net Bookings decreased 2% to $3.08 billion, as compared to $3.15 billion in fiscal year 2021, and accounted for 91% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Borderlands 3; Grand Theft Auto: The Trilogy - The Definitive Edition; Top Eleven; and Two Dots.

Management Comments

“Our strong fourth quarter results concluded another highly successful year for our Company, during which we delivered Net Bookings of $3.4 billion,” said Strauss Zelnick, Chairman and CEO of Take-Two. “In addition to our outstanding financial results, I am pleased that we took pivotal steps to position our organization for the long term by investing in talent, broadening our portfolio further, and agreeing upon our transformational pending combination with Zynga, which has the potential to exponentially increase our Net Bookings from mobile, while also enabling us to deliver substantial cost synergies and revenue opportunities.”

“For fiscal 2023, we expect to deliver a new record of $3.75 to $3.85 billion in Net Bookings on a standalone basis. As we execute on our organic growth initiatives, while unlocking new opportunities presented by our pending transaction with Zynga, we believe that we can broaden our portfolio and capitalize further on new platforms, business models, emerging markets, and distribution channels. As we deliver on these growth drivers, we believe that Take-Two remains incredibly well-positioned to increase its scale and prominence in the industry, expand its margins, and deliver long-term value for our shareholders.”

COVID-19 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. However, given the evolving dynamics of the COVID-19 pandemic, we are strictly following protocols from local governments and health officials to ensure that we are adhering to their safety standards.

Due to the shelter-in-place orders that began in calendar year 2020, we experienced heightened levels of engagement and Net Bookings growth during our fiscal 2021 period. As the return to normalcy continues to unfold, the impact to our business, operations and financial results will depend on numerous evolving factors that we are not able to predict. The key risks to our business are set forth under the heading “Cautionary Note Regarding Forward-Looking Statements” in this release and in Take-Two’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022.

Business and Product Highlights

Since January 1, 2022:

Take-Two:

  • On January 9th, Take-Two entered into a definitive agreement, under which Take-Two will acquire all of the outstanding shares of Zynga. The transaction, which is anticipated to close on May 23, 2022, is subject to the approval of both Take-Two and Zynga stockholders and the satisfaction of other customary closing conditions.
  • On April 7th, Take-Two announced that it agreed to sell, in an underwritten public offering, $2.7 billion aggregate principal amount of its Senior Notes, consisting of $1.0 billion of its 3.300% Senior Notes due 2024, $600 million of its 3.550% Senior Notes due 2025, $600 million of its 3.700% Senior Notes due 2027 and $500 million of its 4.000% Senior Notes due 2032. The Company intends to use a portion of the net proceeds from the offering, together with cash on hand, to fund the cash portion of the consideration for its pending acquisition of Zynga and the expected settlement of the outstanding convertible notes issued by Zynga, and related costs and expenses. Any remaining net proceeds will be used for general corporate purposes. If the acquisition is not consummated on or prior to January 9, 2023, or is terminated prior to such date, the Company will be required to redeem the Senior Notes.

Rockstar Games:

  • On February 11th, Rockstar Games released the physical version of Grand Theft Auto: The Trilogy - The Definitive Edition for Nintendo Switch.
  • On March 15th, Rockstar Games launched Grand Theft Auto V digitally on PlayStation 5 and Xbox Series X|S, featuring access to Grand Theft Auto Online, high-end PC visuals, technical enhancements of the latest consoles, and Story Mode progress transfers for PlayStation 4 and Xbox One players.
  • On March 15th, Grand Theft Auto Online was made available as a standalone title for PlayStation 5 and Xbox Series X|S, in addition to being accessible as part of Grand Theft Auto V on either platform, with graphical and technical enhancements, a new Career Builder, new menu design, five new vehicles, an exclusive vehicle for returning players, online character transfers for PlayStation 4 and Xbox One players, and Hao’s Special Works – a shop where players can purchase new modifications for select vehicles to improve driving performance, customization options and more.
  • On March 29th, Rockstar Games launched GTA+, a membership program exclusive to Grand Theft Auto Online players on PlayStation 5 and Xbox Series X|S, featuring a range of valuable benefits, including a monthly recurring GTA$500,000 deposit, upgrades, Members-only discounts, GTA$ and RP bonuses, and more each month.
  • Throughout the period, Rockstar Games continued to support Grand Theft Auto Online with new vehicles, rewards, and the Adversary Mode Double Down – featuring Grand Theft Auto V’s Franklin Clinton and Lamar Davis as playable characters.

2K:

  • Continued to drive engagement for NBA 2K22 with the launch of new seasons that feature new music and content, as well as seasonal updates across MyCAREER, MyTEAM, and The W modes.
  • On March 11th, 2K and Visual Concepts launched WWE 2K22, the newest installment of the flagship WWE video game series, which received the highest Metacritic critic scores in franchise history. Featuring Rey Mysterio® on the cover in celebration of his 20th anniversary as a WWE Superstar, the game features a top-to-bottom overhaul, including a redesigned engine and gameplay, the most stunning WWE 2K graphics to date, intuitive and accessible controls, multiple new fan-requested game modes, and an immersive presentation and camera angles throughout. WWE 2K22 also features a diverse soundtrack curated by Executive Soundtrack Producer Machine Gun Kelly, who will be available in a future downloadable content pack as a playable character. The first DLC pack for WWE 2K22 launched on April 26th, featuring fan-favorite WWE Legends Yokozuna and Rikishi, “The Samoan Bulldozer” Umaga, current Raw Superstar Omos, and rising NXT star Kacy Catanzaro.
  • Additionally, there were updates to WWE SuperCard, including the WrestleMania 38 card tier, which includes more than 70 new cards featuring fan-favorite WWE Superstars, Legends and Hall of Famers.
  • On March 25th, 2K and Gearbox Software released Tiny Tina’s Wonderlands, an all-new, fantasy-fueled looter shooter game from the unpredictable mind of Tiny Tina, which supports crossplay between Xbox Series X|S, Xbox One, PlayStation®5, PlayStation®4, and PC via the Epic Games Store. Game Informer awarded the game a 9.5 out of 10, calling it “a spellbinding hit” and “Gearbox Software’s best game.” COGconnected noted it’s “a worthy new IP,” while ComicBook.com described it as “a fantastic fantasy twist” and IGN called out the “excellent, laugh-out-loud writing.”
  • To drive further engagement for Tiny Tina’s Wonderlands, 2K and Gearbox Software released Coiled Captors on April 21st, the first of four exciting post-launch content drops in the game’s Season Pass.
  • On March 17th, 2K and Supermassive Games announced that they will release The Quarry on June 10th, featuring an iconic ensemble cast of Hollywood stars and celebrities, including David Arquette, Ariel Winter, Justice Smith, Brenda Song, Lance Henriksen, Lin Shaye, and more. The title is an all-new horror narrative game where your every choice, big or small, shapes your story and determines who lives to tell the tale.
  • On April 21st, Gearbox confirmed that a new game from the Tales from the Borderlands series will be releasing this fiscal year. Developed by Gearbox and published by 2K, the title will feature all new characters and stories set in the Borderlands universe.
  • On April 21st, Firaxis released XCOM 2 Collection on Epic Games Store. The XCOM 2 Collection includes the award-winning strategy game XCOM 2, the War of the Chosen expansion, and DLC packs (Resistance Warrior Pack, Anarchy's Children, Alien Hunters, Shen's Last Gift and Tactical Legacy Pack) for a bundled discount.

Private Division:

  • On February 8th, Roll7 and Private Division launched OlliOlli World, the skateboarding action-platformer digitally for PlayStation 4, PlayStation 5, Xbox One, Xbox Series X|S, PC via Steam and Nintendo Switch. OlliOlli World marks a bold new direction for the OlliOlli franchise and has received much critical praise for the unique art style and tight gameplay mechanics. The title will be supported with its first expansion, VOID Riders, in the first half of fiscal 2023.
  • On March 16th, Private Division announced that they have signed four new publishing agreements with leading independent developers Die Gute Fabrik, Evening Star, Piccolo Studio, and Yellow Brick Games.

Outlook for Fiscal 2023

Take-Two is providing its initial outlook for the fiscal year ending March 31, 2023 and fiscal first quarter ending June 30, 2022:

Fiscal Year Ending March 31, 2023

  • This initial outlook does not include Zynga Inc. in our projected results or the interest expense on the Senior notes the Company issued in April 2022 to fund the cash portion for the pending combination with Zynga Inc.
  • GAAP net revenue is expected to range from $3.67 to $3.77 billion
  • GAAP net income is expected to range from $223 to $252 million(1)
  • GAAP diluted net income per share is expected to range from $1.90 to $2.15(1)
  • Share count used to calculate both GAAP and management reporting diluted net income per share is expected to be 117.0 million (2)
  • Net cash provided by operating activities is expected to be over $390 million
  • Adjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over $350 million (3)
  • Capital expenditures are expected to be approximately $120 million
  • Net Bookings (Operational Metric) are expected to range from $3.75 to $3.85 billion

The Company is also providing selected data and its management reporting tax rate of 16%, which are used internally by its management and Board of Directors to adjust the Company’s 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

 

GAAP outlook (4)

 

Change in

deferred net

revenue and

related cost of

goods sold

 

Stock-based

compensation

 

 

Amortization and

impairment of

acquired

intangibles

 

Reorganization &

acquisition

Net revenue

 

$3,670 to $3,770

 

$80

 

 

 

 

 

 

 

Cost of goods sold

 

$1,658 to $1,703

 

$5

 

$(29)

 

 

$(46)

 

 

Operating expenses

 

$1,735 to $1,755

 

 

 

$(123)

 

 

$(2)

 

$(30)

Interest and other, net

 

$9

 

 

 

 

 

 

 

 

$(12)

Income before income taxes

 

$268 to $303

 

$75

 

$152

 

 

$48

 

$42

First Quarter Ending June 30, 2022

  • This initial outlook does not include Zynga Inc. in our projected results or the interest expense on the Senior notes the Company issued in April 2022 to fund the cash portion for the pending combination with Zynga Inc.
  • GAAP net revenue is expected to range from $810 to $860 million
  • GAAP net income is expected to range from $94 to $105 million(1)
  • GAAP diluted net income per share is expected to range from $0.80 to $0.90(1)
  • Share count used to calculate both GAAP and management reporting diluted net income per share is expected to be 116.9 million (5)
  • Net Bookings (Operational Metric) are expected to range from $700 to $750 million

The Company is also providing selected data and its management reporting tax rate of 16%, which are used internally by its management and Board of Directors to adjust the Company’s 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 June 30, 2022

 

 

 

 

Financial Data

$ in millions

 

GAAP outlook (4)

 

Change in deferred

net revenue and

related cost of goods

sold

 

Stock-based

compensation

 

Amortization of

intangible assets

 

Reorganization &

Acquisition

Net revenue

 

$810 to $860

 

$(110)

 

 

 

 

 

 

Cost of goods sold

 

$303 to $329

 

$(7)

 

$(5)

 

$(14)

 

 

Operating expenses

 

$387 to $397

 

 

 

$(31)

 

$(1)

 

$(15)

Interest and other, net

 

$7

 

 

 

 

 

 

 

$(8)

Income before income taxes

 

$113 to $127

 

$(103)

 

$36

 

$15

 

$23

 

1)

The effective tax rate utilized for our GAAP net income outlook does not reflect U.S. tax law changes that went into effect on April 1, 2022 for the Company requiring the capitalization and amortization of research and development costs rather than deduction of such costs in the year incurred for U.S. tax purposes, the potentially significant adverse impact of which we are still reviewing.

 

2)

Includes 115.8 million basic shares and 1.2 million shares representing the potential dilution from unvested employee stock grants.

 

3)

Adjusted for changes in restricted cash.

 

4)

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.

 

5)

Includes 115.6 million basic shares and 1.3 million shares representing the potential dilution from unvested employee stock grants.

Key assumptions and dependencies underlying the Company’s outlook include: the timely delivery of the titles included in this financial outlook; a stable economic environment; 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; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below. The Company's outlook does not take into account the pending combination with Zynga Inc. or the interest expense on the Senior notes the Company issued in April 2022 to fund the cash portion for the pending combination with Zynga Inc.

Product Releases

The following have been released since January 1, 2022:

Label

Product

Platforms

Release Date

Private Division

OlliOlli World (digital only)

PS4, PS5, Xbox One, Xbox Series X|S, Switch, PC

February 8, 2022

Rockstar Games

Grand Theft Auto: The Trilogy – The Definitive Edition

Switch (physical only)

February 11, 2022 (U.S. release date; other region release dates may vary)

2K

WWE 2K22

PS4, PS5, Xbox One, Xbox Series X|S, PC

March 11, 2022

Rockstar Games

Grand Theft Auto V for PlayStation 5 and XBox Series X|S

PS5, Xbox Series X|S

March 15, 2022

Rockstar Games

Grand Theft Auto Online – Standalone

PS5, Xbox Series X|S

March 15, 2022

2K

Tiny Tina's Wonderlands

PS4, PS5, Xbox One, Xbox Series X|S, PC

March 25, 2022

2K

Tiny Tina's Wonderlands: Coiled Captors

PS4, PS5, Xbox One, Xbox Series X|S, PC

April 21, 2022

2K

XCOM 2 Collection

PC

April 21, 2022

2K

WWE 2K22 The Banzai Pack

PS4, PS5, Xbox One, Xbox Series X|S, PC

April 26, 2022

Take-Two's future lineup announced to-date includes:

Label

Product

Platforms

Release Date

2K

WWE 2K22 Most Wanted Pack

PS4, PS5, Xbox One, Xbox Series X|S, PC

May 17, 2022

2K

WWE 2K22 Stand Back Pack

PS4, PS5, Xbox One, Xbox Series X|S, PC

June 7, 2022

2K

The Quarry

PS4, PS5, Xbox One, Xbox Series X|S, PC

June 10, 2022

2K

WWE 2K22 Clowning Around Pack

PS4, PS5, Xbox One, Xbox Series X|S, PC

June 28, 2022

2K

WWE 2K22 The Whole Dam Pack

PS4, PS5, Xbox One, Xbox Series X|S, PC

July 19, 2022

2K

Marvel's Midnight Suns

PS4, PS5, Xbox One, Xbox Series X|S, PC, Switch

Second Half of Calendar 2022

Rockstar Games

Grand Theft Auto: The Trilogy — The Definitive Edition (mobile release)

iOS, Android

Fiscal 2023

2K

NBA 2K23

TBA

Fiscal 2023

2K

WWE 2K23

TBA

Fiscal 2023

2K

PGA TOUR 2K23

TBA

Fiscal 2023

2K

New Tales from the Borderlands title

TBA

Fiscal 2023

Private Division

Kerbal Space Program 2

PC

Fiscal 2023 (console release planned for Fiscal 2024)

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 Measure

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP measure of financial performance: Adjusted Unrestricted Operating Cash Flow, which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash. 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.

This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP financial measure 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 this Non-GAAP financial measure used by the Company. Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in planning and forecasting. A reconciliation of this Non-GAAP financial measure 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 Annual Report on Form 10-K for the period ended March 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 T2 Mobile Games. Our products are designed for console systems and personal computers, 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 pending acquisition of 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 potential 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. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

Twelve Months Ended March 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net revenue

 

$

930,004

 

 

$

839,431

 

 

$

3,504,800

 

 

$

3,372,772

 

Cost of goods sold:

 

 

 

 

 

 

 

 

Internal royalties

 

 

142,172

 

 

 

158,128

 

 

 

619,902

 

 

 

637,652

 

Software development costs and royalties

 

 

142,468

 

 

 

22,465

 

 

 

417,431

 

 

 

396,797

 

Licenses

 

 

56,162

 

 

 

53,841

 

 

 

254,203

 

 

 

260,721

 

Product costs

 

 

57,823

 

 

 

45,213

 

 

 

243,865

 

 

 

239,915

 

Total cost of goods sold

 

 

398,625

 

 

 

279,647

 

 

 

1,535,401

 

 

 

1,535,085

 

Gross profit

 

 

531,379

 

 

 

559,784

 

 

 

1,969,399

 

 

 

1,837,687

 

Selling and marketing

 

 

141,270

 

 

 

106,609

 

 

 

516,429

 

 

 

444,985

 

General and administrative

 

 

148,371

 

 

 

98,453

 

 

 

510,855

 

 

 

390,683

 

Research and development

 

 

96,108

 

 

 

83,559

 

 

 

406,566

 

 

 

317,311

 

Depreciation and amortization

 

 

16,463

 

 

 

15,480

 

 

 

61,105

 

 

 

55,596

 

Business reorganization

 

 

303

 

 

 

(134

)

 

 

849

 

 

 

(272

)

Total operating expenses

 

 

402,515

 

 

 

303,967

 

 

 

1,495,804

 

 

 

1,208,303

 

Income from operations

 

 

128,864

 

 

 

255,817

 

 

 

473,595

 

 

 

629,384

 

Interest and other, net

 

 

(6,984

)

 

 

(3,226

)

 

 

(14,212

)

 

 

8,796

 

Gain (loss) on long-term investments, net

 

 

(39

)

 

 

1,000

 

 

 

6,015

 

 

 

39,636

 

Income before income taxes

 

 

121,841

 

 

 

253,591

 

 

 

465,398

 

 

 

677,816

 

Provision for income taxes

 

 

10,869

 

 

 

34,779

 

 

 

47,376

 

 

 

88,930

 

Net income

 

$

110,972

 

 

$

218,812

 

 

$

418,022

 

 

$

588,886

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.96

 

 

$

1.90

 

 

$

3.62

 

 

$

5.14

 

Diluted earnings per share

 

$

0.95

 

 

$

1.88

 

 

$

3.58

 

 

$

5.09

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

115,335

 

 

 

115,110

 

 

 

115,485

 

 

 

114,602

 

Diluted

 

 

116,802

 

 

 

116,300

 

 

 

116,775

 

 

 

115,744

 

Computation of Basic EPS:

 

 

 

 

 

 

 

 

Net income

 

$

110,972

 

 

$

218,812

 

 

$

418,022

 

 

$

588,886

 

Weighted average shares outstanding - basic

 

 

115,335

 

 

 

115,110

 

 

 

115,485

 

 

 

114,602

 

Basic earnings per share

 

$

0.96

 

 

$

1.90

 

 

$

3.62

 

 

$

5.14

 

Computation of Diluted EPS:

 

 

 

 

 

 

 

 

Net income

 

$

110,972

 

 

$

218,812

 

 

$

418,022

 

 

$

588,886

 

Weighed average shares outstanding - basic

 

 

115,335

 

 

 

115,110

 

 

 

115,485

 

 

 

114,602

 

Add: dilutive effect of common stock equivalents

 

 

1,467

 

 

 

1,190

 

 

 

1,290

 

 

 

1,142

 

Weighted average common shares outstanding - diluted

 

 

116,802

 

 

 

116,300

 

 

 

116,775

 

 

 

115,744

 

Diluted earnings per share

 

$

0.95

 

 

$

1.88

 

 

$

3.58

 

 

$

5.09

 

 

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

 

 

 

 

 

 

 

March 31, 2022

 

March 31, 2021

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,732,047

 

 

$

1,422,884

 

Short-term investments

 

 

820,060

 

 

 

1,308,692

 

Restricted cash and cash equivalents

 

 

359,832

 

 

 

538,822

 

Accounts receivable, net of allowances of $350 and $350 at March 31, 2022 and 2021, respectively

 

 

579,433

 

 

 

552,762

 

Inventory

 

 

13,224

 

 

 

17,742

 

Software development costs and licenses

 

 

81,394

 

 

 

43,443

 

Deferred cost of goods sold

 

 

12,374

 

 

 

15,524

 

Prepaid expenses and other

 

 

272,724

 

 

 

320,646

 

Total current assets

 

 

3,871,088

 

 

 

4,220,515

 

 

 

 

 

 

Fixed assets, net

 

 

242,039

 

 

 

149,364

 

Right-of-use assets

 

 

217,206

 

 

 

164,763

 

Software development costs and licenses, net of current portion

 

 

755,888

 

 

 

490,892

 

Goodwill

 

 

674,554

 

 

 

535,306

 

Other intangibles, net

 

 

266,475

 

 

 

121,591

 

Deferred tax assets

 

 

73,801

 

 

 

90,206

 

Long-term restricted cash and cash equivalents

 

 

103,452

 

 

 

98,541

 

Other assets

 

 

341,716

 

 

 

157,040

 

Total assets

 

$

6,546,219

 

 

$

6,028,218

 

 

 

 

 

 

LIABILITIES AND EQUITY 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

125,882

 

 

$

71,001

 

Accrued expenses and other current liabilities

 

 

1,074,891

 

 

 

1,204,090

 

Deferred revenue

 

 

865,270

 

 

 

928,029

 

Lease liabilities

 

 

38,921

 

 

 

31,595

 

Total current liabilities

 

 

2,104,964

 

 

 

2,234,715

 

Non-current deferred revenue

 

 

70,911

 

 

 

37,302

 

Non-current lease liabilities

 

 

211,297

 

 

 

159,671

 

Non-current software development royalties

 

 

115,527

 

 

 

110,127

 

Other long-term liabilities

 

 

233,861

 

 

 

154,511

 

Total liabilities

 

 

2,736,560

 

 

 

2,696,326

 

Stockholders' equity:

 

 

 

 

Preferred stock, $0.01 par value, 5,000 shares authorized; no shares issued and outstanding at March 31, 2022 and March 31, 2021

 

 

 

 

 

 

Common stock, $0.01 par value, 200,000 shares authorized; 139,048 and 137,584 shares issued and 115,367 and 115,163 outstanding at March 31, 2022 and 2021, respectively

 

 

1,390

 

 

 

1,376

 

Additional paid-in capital

 

 

2,597,205

 

 

 

2,288,781

 

Treasury stock, at cost; 23,681 and 22,421 common shares at March 31, 2022 and 2021, respectively

 

 

(1,020,584

)

 

 

(820,572

)

Retained earnings

 

 

2,288,993

 

 

 

1,870,971

 

Accumulated other comprehensive loss

 

 

(57,345

)

 

 

(8,664

)

Total stockholders' equity

 

$

3,809,659

 

 

$

3,331,892

Total liabilities and stockholders' equity

 

$

6,546,219

 

 

$

6,028,218 

 

 

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

Twelve Months Ended March 31,

 

 

 

2022

 

 

 

2021

 

Operating activities:

 

 

 

 

Net income

 

$

418,022

 

 

$

588,886

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Amortization and impairment of software development costs and licenses

 

 

153,279

 

 

 

144,263

 

Stock-based compensation

 

 

182,969

 

 

 

110,472

 

Noncash lease expense

 

 

34,511

 

 

 

30,553

 

Amortization of intellectual property

 

 

64,817

 

 

 

32,241

 

Depreciation

 

 

61,196

 

 

 

56,309

 

Impairment of software development costs and licenses

 

 

70,611

 

 

 

39,073

 

Amortization of debt issuance costs

 

 

6,525

 

 

 

 

Deferred income taxes

 

 

8,104

 

 

 

10,631

 

Gain on long-term investments, net

 

 

(6,015

)

 

 

(41,588

)

Other, net

 

 

16,243

 

 

 

5,515

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(17,857

)

 

 

47,195

 

Inventory

 

 

4,106

 

 

 

2,503

 

Software development costs and licenses

 

 

(457,556

)

 

 

(260,352

)

Prepaid expenses, other current and other non-current assets

 

 

(207,559

)

 

 

(89,290

)

Deferred revenue

 

 

(30,946

)

 

 

152,466

 

Deferred cost of goods sold

 

 

3,139

 

 

 

4,768

 

Accounts payable, accrued expenses and other liabilities

 

 

(45,605

)

 

 

78,673

 

Net cash provided by operating activities

 

 

257,984

 

 

 

912,318

 

Investing activities:

 

 

 

 

Change in bank time deposits

 

 

446,965

 

 

 

(387,762

)

Proceeds from available-for-sale securities

 

 

779,940

 

 

 

546,287

 

Purchases of available-for-sale securities

 

 

(756,266

)

 

 

(824,477

)

Purchases of fixed assets

 

 

(158,642

)

 

 

(68,923

)

Proceeds from sale of long-term investment

 

 

 

 

 

47,472

 

Purchase of long-term investments

 

 

(12,272

)

 

 

(16,852

)

Business acquisitions, net of cash acquired

 

 

(161,331

)

 

 

(102,469

)

Other

 

 

822

 

 

 

 

Net cash provided by (used in) investing activities

 

 

139,216

 

 

 

(806,724

)

Financing activities:

 

 

 

 

Tax payment related to net share settlements on restricted stock awards

 

 

(64,074

)

 

 

(71,552

)

Repurchase of common stock

 

 

(200,012

)

 

 

 

Issuance of common stock

 

 

19,657

 

 

 

14,214

 

Cost of debt

 

 

(12,150

)

 

 

 

Other

 

 

(234

)

 

 

 

Net cash used in financing activities

 

 

(256,813

)

 

 

(57,338

)

Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents

 

 

(5,303

)

 

 

18,599

 

Net change in cash, cash equivalents, and restricted cash and cash equivalents

 

 

135,084

 

 

 

66,855

 

Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year

 

 

2,060,247

 

 

 

1,993,392

 

Cash, cash equivalents, and restricted cash equivalents, end of year

 

$

2,195,331

 

 

$

2,060,247 

 

 

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

 

 

Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

March 31, 2022

 

Three Months Ended

March 31, 2021

 

 

Amount

 

% of total

 

Amount

 

% of total

Net revenue by geographic region

 

 

 

 

 

 

 

 

United States

 

$

557,262

 

60

%

 

$

513,488

 

61

%

International

 

 

372,742

 

40

%

 

 

325,943

 

39

%

Total net revenue

 

$

930,004

 

100

%

 

$

839,431

 

100

%

 

 

 

 

 

 

 

 

 

Net Bookings by geographic region

 

 

 

 

 

 

 

 

United States

 

$

492,726

 

58

%

 

$

479,784

 

61

%

International

 

 

353,053

 

42

%

 

 

304,748

 

39

%

Total Net Bookings

 

$

845,779

 

100

%

 

$

784,532

 

100

%

 

 

 

 

 

 

 

 

 

Three Months Ended

March 31, 2022

 

Three Months Ended

March 31, 2021

 

 

Amount

 

% of total

 

Amount

 

% of total

Net revenue by distribution channel

 

 

 

 

 

 

 

 

Digital online

 

$

833,339

 

90

%

 

$

768,002

 

91

%

Physical retail and other

 

 

96,665

 

10

%

 

 

71,429

 

9

%

Total net revenue

 

$

930,004

 

100

%

 

$

839,431

 

100

%

 

 

 

 

 

 

 

 

 

Net Bookings by distribution channel

 

 

 

 

 

 

 

 

Digital online

 

$

765,803

 

91

%

 

$

738,401

 

94

%

Physical retail and other

 

 

79,976

 

9

%

 

 

46,131

 

6

%

Total Net Bookings

 

$

845,779

 

100

%

 

$

784,532

 

100

%

 

 

 

 

 

 

 

 

 

Three Months Ended

March 31, 2022

 

Three Months Ended

March 31, 2021

 

 

Amount

 

% of total

 

Amount

 

% of total

Net revenue by platform mix

 

 

 

 

 

 

 

 

Console

 

$

664,799

 

72

%

 

$

607,960

 

72

%

PC and other

 

 

162,952

 

18

%

 

 

142,190

 

17

%

Mobile

 

 

102,253

 

10

%

 

 

89,281

 

11

%

Total net revenue

 

$

930,004

 

100

%

 

$

839,431

 

100

%

 

 

 

 

 

 

 

 

 

Net Bookings by platform mix

 

 

 

 

 

 

 

 

Console

 

$

601,789

 

71

%

 

$

550,231

 

70

%

PC and other

 

 

143,052

 

17

%

 

 

140,614

 

18

%

Mobile

 

 

100,938

 

12

%

 

 

93,687

 

12

%

Total Net Bookings

 

 

845,779

 

100

%

 

$

784,532

 

100 

%

 

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

 

 

Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

March 31, 2022

 

Twelve Months Ended

March 31, 2021

 

 

Amount

 

% of total

 

Amount

 

% of total

Net revenue by geographic region

 

 

 

 

 

 

 

 

United States

 

$

2,100,237

 

60

%

 

 

2,015,885

 

60

%

International

 

 

1,404,563

 

40

%

 

 

1,356,887

 

40

%

Total net revenue

 

$

3,504,800

 

100

%

 

$

3,372,772

 

100

%

 

 

 

 

 

 

 

 

 

Net Bookings by geographic region

 

 

 

 

 

 

 

 

United States

 

$

2,019,642

 

59

%

 

$

2,171,240

 

61

%

International

 

 

1,388,542

 

41

%

 

 

1,381,358

 

39

%

Total Net Bookings

 

$

3,408,184

 

100

%

 

$

3,552,598

 

100

%

 

 

 

 

 

 

 

 

 

Twelve Months Ended

March 31, 2022

 

Twelve Months Ended

March 31, 2021

 

 

Amount

 

% of total

 

Amount

 

% of total

Net revenue by distribution channel

 

 

 

 

 

 

 

 

Digital online

 

$

3,148,957

 

90

%

 

$

2,972,403

 

88

%

Physical retail and other

 

 

355,843

 

10

%

 

 

400,369

 

12

%

Total net revenue

 

$

3,504,800

 

100

%

 

$

3,372,772

 

100

%

 

 

 

 

 

 

 

 

 

Net Bookings by distribution channel

 

 

 

 

 

 

 

 

Digital online

 

$

3,084,574

 

91

%

 

$

3,148,073

 

89

%

Physical retail and other

 

 

323,610

 

9

%

 

 

404,525

 

11

%

Total Net Bookings

 

$

3,408,184

 

100.0

%

 

$

3,552,598

 

100

%

 

 

 

 

 

 

 

 

 

Twelve Months Ended

March 31, 2022

 

Twelve Months Ended

March 31, 2021

 

 

Amount

 

% of total

 

Amount

 

% of total

Net revenue by platform mix

 

 

 

 

 

 

 

 

Console

 

$

2,528,857

 

72

%

 

$

2,516,993

 

75

%

PC and other

 

 

572,506

 

16

%

 

 

581,702

 

17

%

Mobile

 

 

403,437

 

12

%

 

 

274,077

 

8

%

Total net revenue

 

$

3,504,800

 

100

%

 

$

3,372,772

 

100

%

 

 

 

 

 

 

 

 

 

Net Bookings by platform mix

 

 

 

 

 

 

 

 

Console

 

$

2,440,031

 

72

%

 

$

2,637,340

 

74

%

PC and other

 

 

563,307

 

17

%

 

 

616,555

 

17

%

Mobile

 

 

404,846

 

12

%

 

 

298,703

 

9

%

Total Net Bookings

 

$

3,408,184

 

100

%

 

$

3,552,598

 

100

%

 

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

 

 

 

 

 

 

 

 

ADDITIONAL DATA

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2022

Net revenue

 

Cost of goods sold-

Internal royalties

 

Cost of goods sold-

Software development

costs and royalties

 

Cost of goods

sold- Licenses

 

Cost of goods

sold- Product

costs

 

Selling and

marketing

As reported

$

930,004

 

 

$

142,172

 

 

$

142,468

 

 

$

56,162

 

 

$

57,823

 

 

$

141,270

 

Net effect from deferred revenue and related cost of goods sold

 

(84,225

)

 

 

 

 

(12,781

)

 

 

(1,319

)

 

 

(3,217

)

 

 

Stock-based compensation

 

 

 

 

 

(16,549

)

 

 

 

 

 

 

(7,671

)

Amortization and impairment of acquired intangibles

 

 

 

 

 

(13,170

)

 

 

 

 

 

 

(800

)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2022

General and

administrative

 

Research and

development

 

Depreciation and

amortization

 

Business

reorganization

 

Interest and

other, net

 

Gain on

long-term

investments, net

As reported

$

148,371

 

 

$

96,108

 

 

$

16,463

 

 

$

303

 

 

$

(6,984

)

 

$

(39

)

Net effect from deferred revenue and related cost of goods sold

 

 

 

 

 

 

 

 

 

1,635

 

 

 

Stock-based compensation

 

(16,102

)

 

 

(106

)

 

 

 

 

 

 

 

 

Amortization and impairment of acquired intangibles

 

 

 

(525

)

 

 

(329

)

 

 

 

 

 

 

Impact of business reorganization

 

 

 

 

 

 

 

(303

)

 

 

 

 

Acquisition related expenses

 

(33,289

)

 

 

 

 

 

 

 

 

6,475

 

 

 

Gain on long-term investments, net

 

 

 

 

 

 

 

 

 

 

 

39

 

Other

 

 

 

 

 

 

 

 

 

(279

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2021

Net revenue

 

Cost of goods sold-

Internal royalties

 

Cost of goods sold-

Software development

costs and royalties

 

Cost of goods

sold- Licenses

 

Cost of goods

sold- Product

costs

 

Selling and

marketing

As reported

$

839,431

 

 

$

158,128

 

 

$

22,465

 

 

$

53,841

 

 

$

45,213

 

 

$

106,609

 

Net effect from deferred revenue and related cost of goods sold

 

(54,889

)

 

 

 

 

(5,836

)

 

 

(455

)

 

 

(4,501

)

 

 

Stock-based compensation

 

 

 

 

 

52,821

 

 

 

 

 

 

 

(5,050

)

Amortization and impairment of acquired intangibles

 

 

 

 

 

(6,465

)

 

 

 

 

 

 

(1,550

)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2021

General and

administrative

 

Research and

development

 

Depreciation and

amortization

 

Business

reorganization

 

Interest and

other, net

 

Gain on

long-term

investments, net

As reported

$

98,453

 

 

$

83,559

 

 

$

15,480

 

 

$

(134

)

 

$

(3,226

)

 

$

1,000

 

Net effect from deferred revenue and related cost of goods sold

 

 

 

 

 

 

 

 

 

2,425

 

 

 

Stock-based compensation

 

(14,262

)

 

 

(4,147

)

 

 

 

 

 

 

 

 

Amortization and impairment of acquired intangibles

 

 

 

(1,718

)

 

 

(238

)

 

 

 

 

 

 

Impact of business reorganization

 

 

 

 

 

 

 

134

 

 

 

 

 

Acquisition related expenses

 

(1,378

)

 

 

 

 

 

 

 

 

 

 

Gain on long-term investments

 

 

 

 

 

 

 

 

 

 

 

(1,000

)

 

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

 

 

 

 

 

 

 

 

ADDITIONAL DATA

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended March 31, 2022

Net revenue

 

Cost of goods sold-

Internal royalties

 

Cost of goods sold-

Software development

costs and royalties

 

Cost of goods

sold- Licenses

 

Cost of goods

sold- Product

costs

 

Selling and

marketing

As reported

$

3,504,800

 

 

$

619,902

 

 

$

417,431

 

 

$

254,203

 

 

$

243,865

 

 

$

516,429

 

Net effect from deferred revenue and related cost of goods sold

 

(96,616

)

 

 

 

 

(6,615

)

 

 

(1,120

)

 

 

(4,050

)

 

 

Stock-based compensation

 

 

 

 

 

(48,381

)

 

 

 

 

 

 

(30,027

)

Amortization and impairment of acquired intangibles

 

 

 

 

 

(50,751

)

 

 

 

 

 

 

(5,250

)

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended March 31, 2022

General and

administrative

 

Research and

development

 

Depreciation and

amortization

 

Business

reorganization

 

Interest and

other, net

 

Gain on

long-term

investments, net

As reported

$

510,855

 

 

$

406,566

 

 

$

61,105

 

 

$

849

 

 

$

(14,212

)

 

$

6,015

 

Net effect from deferred revenue and related cost of goods sold

 

 

 

 

 

 

 

 

 

2,999

 

 

 

Stock-based compensation

 

(66,443

)

 

 

(38,118

)

 

 

 

 

 

 

 

 

Amortization and impairment of acquired intangibles

 

 

 

(5,489

)

 

 

(1,366

)

 

 

 

 

 

 

Impact of business reorganization

 

 

 

 

 

 

 

(849

)

 

 

 

 

Acquisition related expenses

 

(72,819

)

 

 

 

 

 

 

 

 

6,475

 

 

 

Gain on long-term investments, net

 

 

 

 

 

 

 

 

 

 

 

(6,015

)

Other

 

 

 

 

 

 

 

 

 

(279

)

 

 

Twelve Months Ended March 31, 2021

Net revenue

 

Cost of goods sold-

Internal royalties

 

Cost of goods sold-

Software development

costs and royalties

 

Cost of goods

sold- Licenses

 

Cost of goods

sold- Product

costs

 

Selling and

marketing

As reported

$

3,372,772

 

 

$

637,652

 

 

$

396,797

 

 

$

260,721

 

 

$

239,915

 

 

$

444,985

 

Net effect from deferred revenue and related cost of goods sold

 

179,825

 

 

 

 

 

15,663

 

 

 

(282

)

 

 

(4,098

)

 

 

Stock-based compensation

 

 

 

 

 

(8,707

)

 

 

 

 

 

 

(18,348

)

Amortization and impairment of acquired intangibles

 

 

 

 

 

(20,587

)

 

 

 

 

 

 

(3617

)

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended March 31, 2021

General and

administrative

 

Research and

development

 

Depreciation and

amortization

 

Business

reorganization

 

Interest and

other, net

 

Gain on

long-term

investments, net

As reported

$

390,683

 

 

$

317,311

 

 

$

55,596

 

 

$

(272

)

 

$

8,796

 

 

$

39,636

 

Net effect from deferred revenue and related cost of goods sold

 

 

 

 

 

 

 

 

 

(2,874

)

 

 

Stock-based compensation

 

(56,830

)

 

 

(26,587

)

 

 

 

 

 

 

 

 

Amortization and impairment of acquired intangibles

 

 

 

(6,663

)

 

 

(757

)

 

 

 

 

 

 

Impact of business reorganization

 

 

 

 

 

 

 

272

 

 

 

 

 

Acquisition related expenses

 

(7,317

)

 

 

 

 

 

 

 

 

 

 

Gain on long-term investments

 

 

 

 

 

 

 

 

 

 

 

(39,636

)

 

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

 

 

 

 

RECONCILIATION OF GAAP TO NON-GAAP MEASURE

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended March 31,

 

 

2022

 

2021

Net cash from operating activities

 

$

257,984

 

$

912,318

Net change in Restricted cash (1)

 

 

166,948

 

 

7,965

Adjusted Unrestricted Operating Cash Flow

 

$

424,932

 

$

920,283

 

 

 

 

 

 

 

Twelve Months Ended March 31,

 

 

2022

 

2021

Restricted cash beginning of period

 

$

637,363

 

$

635,728

Restricted cash end of period

 

 

463,284

 

 

637,363

Restricted cash related to acquisitions

 

 

7,131

 

 

9,600

(1) Net change in Restricted cash

 

$

166,948

 

$

7,965

 

(Investor Relations)
Nicole Shevins
Senior Vice President
Investor Relations & Corporate Communications
Take-Two Interactive Software, Inc.
(646) 536-3005
Nicole.Shevins@take2games.com

(Corporate Press)
Alan Lewis
Vice President
Corporate Communications & Public Affairs
Take-Two Interactive Software, Inc.
(646) 536-2983
Alan.Lewis@take2games.com

Source: Take-Two Interactive