Take-Two Interactive Software, Inc. Reports Results for Fiscal Third Quarter 2023
Take-Two Interactive Software (NASDAQ:TTWO) reported a 56% increase in GAAP net revenue for Q3 FY2023, reaching $1.41 billion, driven by strong performance in titles like NBA 2K23 and Grand Theft Auto. Despite this growth, the company reported a GAAP net loss of $153.4 million or $0.91 per share, compared to a profit of $144.6 million in the previous year. Adjusted Unrestricted Operating Cash Flow was $122.9 million, down from $278.7 million last year. The company revised its fiscal year 2023 Net Bookings guidance to $5.2-$5.25 billion amidst challenging market conditions and is implementing cost reduction measures targeting over $50 million in savings.
- GAAP net revenue increased 56% to $1.41 billion.
- Net Bookings grew 60% to $1.38 billion, driven by recurrent consumer spending.
- Adjusted Unrestricted Operating Cash Flow was $122.9 million.
- GAAP net loss was $153.4 million, compared to a profit last year.
- Adjusted Unrestricted Operating Cash Flow declined from $278.7 million to $122.9 million.
- Net Bookings fell slightly below prior guidance due to shifts in consumer spending.
GAAP net revenue increased
GAAP net loss per share was
GAAP net cash provided by operating activities for the nine-months ended
Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the nine-months ended
Net Bookings grew
Company updates outlook for fiscal year 2023, including Net Bookings of
Third Quarter Fiscal 2023 Financial Highlights
GAAP net revenue increased
GAAP net loss was
During the nine-month period ended
The following data, together with a management reporting tax rate of
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Three Months Ended |
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Financial Data |
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GAAP |
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Statement of Operations |
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Change in deferred net revenue and related cost of revenue |
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Stock-based compensation |
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Amortization of acquired intangibles |
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Business acquisition |
Total net revenue |
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(25.0) |
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Cost of revenue |
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691.9 |
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6.4 |
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(8.4) |
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(202.7) |
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Gross profit |
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715.9 |
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(31.4) |
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8.4 |
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202.7 |
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Operating expenses |
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888.8 |
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(78.0) |
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|
(99.1) |
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(21.5) |
(Loss) income from operations |
|
(172.9) |
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(31.4) |
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86.4 |
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301.8 |
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21.5 |
Interest and other, net |
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(28.3) |
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(3.8) |
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3.4 |
(Loss) gain on fair value adjustments, net |
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1.1 |
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(1.1) |
(Loss) income before income taxes |
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(200.1) |
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(35.2) |
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86.4 |
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301.8 |
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23.8 |
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Non-GAAP |
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EBITDA |
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147.8 |
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(31.4) |
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86.4 |
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19.2 |
In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 169.2 million.
Operational Metric – Net Bookings
Net Bookings is defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
During fiscal third quarter 2023, total Net Bookings grew
Management Comments
“During the third quarter, we continued to execute on our ambition to create the highest-quality, most engaging interactive entertainment franchises in the industry,” said
"We are operating in an environment that is in many ways more challenging than we anticipated and we are lowering our Fiscal 2023 Net Bookings guidance to
"We have always managed our business for the long-term. As we achieve the powerful synergies from our combination with Zynga, release new titles from our robust multi-year pipeline, and execute on our cost savings initiatives, we expect to deliver sequential growth and record performance over the next several years, which we anticipate will drive meaningful shareholder value."
Cost Reduction Program
In light of the current backdrop and Take-Two’s strong commitment to efficiency, the Company is implementing a cost reduction program expected to yield over
Return to Office Update
At Take-Two, our number one priority has remained the health and safety of our employees and their families. The majority of our global offices have reopened. We continue to follow protocols from local governments and health officials to ensure that we are adhering to their safety standards.
Business and Product Highlights
Since
-
On
January 19 th, announced that Grand Theft Auto: The Trilogy – The Definitive Edition is available to purchase on Steam, and on sale throughFebruary 2 nd as part of theRockstar Games Publisher Sale. In addition to modern controls, graphical and environmental upgrades, and other enhancements — these versions of Grand Theft Auto III, Grand Theft Auto: Vice City, and Grand Theft Auto:San Andreas are Playable on Steam Deck and support additional features including achievements and more. -
Rockstar Games continued to provide an array of free content for their vast and growing online communities, including:-
On
December 13 th, introduced Los Santos Drug Wars, a mind-expanding new GTA Online story update. Los Santos Drug Wars includes an ongoing slate of content, including additional story missions, a new Acid Van business, a fleet of classic and contemporary rides, new weaponry for players to expand their arsenal, and so much more. The update also adds a wide range of community-requested items, including new improvements to Freemode and beyond, various quality of life improvements, vehicle and economy updates, and other enhancements. -
To celebrate
Halloween , Grand Theft Auto Online delivered a month-long schedule of events and gameplay, including the Beast vs. Slasher Adversary Mode, enhanced rewards and payouts, spooky items, and more. - Through the GTA+ premium membership program, enrolled members benefit from a rotation of numerous exclusive in-game benefits, including vehicles, upgrades, and special perks in Los Santos Drug Wars.
-
Released new updates for Red Dead Online, including the
Halloween Hardcore Telegram Mission , and new Call to Arms locations forHalloween and the holidays.
-
On
2K:
- Continued to drive engagement for NBA 2K23 with the launch of seasons that feature new songs by top artists, apparel, themed events, and more.
-
On
October 18 th, 2K released NBA 2K23 Arcade Edition, the authentic mobile experience for the NBA 2K basketball game onApple Arcade . The experience includes the all-new “The Greatest” mode, which features 20 of the “Greatest of All-Time” NBA players from the current NBA season at launch, along with official NBA commentary for a more immersive and realistic NBA gameplay experience. This is in addition to a variety of features and modes that offer more ways to play, including Association Mode, where aspiring coaches can play out becoming theGM or Head Coach of their favorite NBA Franchise or build out their dream team. -
On
October 14 th, 2K released PGA TOUR® 2K23, the latest entry in the golf simulation video game franchise. Featuring PGA TOUR icon and all-time sports greatTiger Woods as cover athlete,PGA TOUR 2K23 celebrates Woods’ legacy by introducing him as both a playable in-game pro and an Executive Director advising the game’s development team.PGA TOUR 2K23 included 20 licensed courses at launch, including the industry-leading Course Designer, offering players the opportunity to build their dream courses and share them with a global online community.PGA TOUR 2K23 also offers new casual modes to help new players get into the game, while giving seasoned players new challenges and opportunities to work on their skills. The introduction of Topgolf offers a unique experience emulating the popular golf entertainment phenomenon, where players can aim for targets and try to earn the highest score. Training mode offers multiple ways to develop skills, including swing calibration, lessons, chipping practice, a driving range and a putting green. -
In December, 2K and
HB Studios supportedPGA TOUR 2K23 with a limited-edition holiday bundle that included NBA 2K23 and new content featuring branded gear fromBarstool Sports , 100 Thieves, and Dude Perfect. -
On
January 23 rd, announced that WWE 2K23, the newest installment of the flagship WWE video game franchise developed byVisual Concepts , will be coming soon for PlayStation 5, PlayStation 4, Xbox Series X|S, Xbox One, and PC via Steam. In celebration of his 20th anniversary as a WWE Superstar, 16-time World Champion,Hollywood icon, record-setting philanthropist, and WWE 2K23 Executive Soundtrack Producer,John Cena , will be featured on the cover of each edition of the game. Global music phenom Bad Bunny - Billboard's Top Artist of the Year and one of the most streamed artists in the world for 2022 - will also make his WWE 2K debut. WWE 2K23 features several franchise advancements, including a unique new take on the 2K Showcase, the WWE 2K introduction of the fan-favorite WarGames, and expansions to several marquee game modes. WWE 2K23 Deluxe Edition and Icon Edition are scheduled for worldwide release onTuesday, March 14, 2023 via Early Access, followed by the Standard and Cross-Gen editions onFriday, March 17, 2023 . -
During the quarter, WWE Supercard released new seasons, including new card tiers, official match commentary and special equipment. This was in addition to their earlier
Halloween -themed content drop featuring the infamous Chucky character from the Child’s Play horror film franchise, which coincided with the Season 2 premiere of the Chucky TV series onUSA /Syfy . -
On
December 2 nd, 2K andMarvel Entertainment released Marvel's Midnight Suns on Windows PC viaSteam and Epic Games Store , PlayStation 5 and Xbox Series X|S. Created by Firaxis Games, the legendary studio behind the critically-acclaimed, world-renowned XCOM and Civilization franchises, Marvel's Midnight Suns combines the rich story, character relationships, customization and progression of an RPG with the tactical strategy and combat mechanics of a revolutionary new card-based tactics game. -
On
December 22 nd, 2K announced Firaxis Tactical Legends, a new special offer on Steam that was available throughJanuary 2, 2023 and includes base game versions of Marvel's Midnight Suns, XCOM: Enemy Unknown and XCOM 2. -
On
October 21 st, 2K andGearbox Software launched New Tales from the Borderlands, a standalone, choice-based interactive narrative adventure set in the Borderlands universe. The title contains a number of compelling narrative dynamics and features that bring the cinematic experience to new heights. -
On
October 24 th, 2K andSupermassive Games launched a newHalloween -themed DLC for The Quarry featuring a classic makeover with new character outfits inspired by ‘50s horror. Entitled the 50s Throwback Character Outfit DLC, the update was free for new and returning players for a limited time, after which it was available for individual purchase. -
On
November 15 th, 2K announced Civilization VI:Leader Pass , a new season pass that adds 18 new playable leader selections to Civilization VI, offering players more ways to rule in the critically-acclaimed strategy game.
Private Division:
-
On
December 9 th, Private Division andPiccolo Studio announced After Us during The Game Awards. This riveting exploration adventure game will launch in Spring 2023 for PC on Steam, and on PlayStation 5 and Xbox Series X|S. -
On
December 14 th, Private Division celebrated its 5th anniversary by revealing a publishing agreement with Bloober Team. The independent Polish developer is best known for creating psychological horror games and is working on an upcoming unannounced new survival horror IP in partnership with Private Division. Additionally, the label unveiled the Private Division Development Fund to support smaller independent development teams with project financing and mentorship opportunities to enable them to self-publish their ambitious titles. Private Division also released a video highlighting its internal studios and developers they have recently partnered with for upcoming releases.
Zynga:
-
On
October 26 th,CSR Racing 2 releasedRace Pass , an all-new seasonal way to earn rewards, complete objectives, and unlock some of the most exciting cars in CSR history.Race Pass features innovative new rewards that help players max out their cars and drive stronger player retention and monetization. -
On
November 17 th, Rollic completed the acquisition of mobile game developer Popcore. A leader in the puzzle genre, theBerlin -based Popcore is home to a number of chart-topping games further strengthening Rollic as a leader among hyper-casual publishers worldwide. Following the acquisition, Popcore’s Tap Away game reached the #1 spot for most downloaded game multiple times throughout the quarter in Apple’sU.S. App Store . -
On
November 17 th, Top Eleven launched a wide slate of in-game updates celebrating the World Cup, including a limited-time mini-game, Penalty Clash, in which players from around the globe could compete for rewards and in-game content. -
On
November 21 st,Harry Potter : Puzzles & Spells launched Club Quidditch, the game’s first-ever Club vs. Club competition, which drove a meaningful lift in player engagement and monetization during the event. -
In December, Rollic’s game Balls’n Ropes reached the #1 most downloaded game in the
U.S. , giving Rollic a total of 20 games that have reached #1 or #2 in Apple’sU.S. App Store . - During the quarter, Small Giant released several in-game events in Empires & Puzzles including Alliance Quest Musketeers, the game’s biggest-ever Black Friday event in terms of revenue, and Contest of Elements.
Ghost Story Games:
-
On
December 9 th, Ghost Story Games, the development studio led by game creatorKen Levine , announced during The Game Awards that Judas, an all-new single-player, narrative first-person shooter is in development for the PlayStation 5, Xbox Series X|S, and PC viaSteam and Epic Games Store . In conjunction with the project reveal, Ghost Story Games has launched the official pages for Judas on Steam and theEpic Games Store where fans can now add the game to their Wishlist.
Outlook for Fiscal 2023
Take-Two is revising its outlook for the fiscal year ending
Fiscal Year Ending
-
GAAP net revenue is expected to range from
$5.24 $5.29 billion -
GAAP net loss is expected to range from
$721 $704 million -
GAAP net loss per share is expected to range from
$4.50 $4.40 - Share count used to calculate GAAP net loss per share is expected to be 159.8 million
- Share count used to calculate management reporting diluted net income per share is expected to be 161.8 million(1)
-
Net cash provided by operating activities is expected to be over
$350 million -
Adjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over
$400 million -
Capital expenditures are expected to be approximately
$170 million -
Net Bookings (operational metric) are expected to range from
$5.2 $5.25 billion -
EBITDA (Non-GAAP) is expected to range from
$386 $406 million
The Company is also providing selected data and its management reporting tax rate of
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Twelve Months Ending |
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Financial Data |
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$ in millions |
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Outlook (3) |
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Change in deferred net revenue and related cost of revenue |
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Stock-based compensation |
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Loss on long-
investments, net |
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Amortization of acquired intangibles |
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Business acquisition |
GAAP |
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Total net revenue |
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Cost of revenue |
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Operating expenses |
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Interest and other, net |
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(Loss) income before income taxes |
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Non-GAAP |
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EBITDA |
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Fourth Quarter Ending
-
GAAP net revenue is expected to range from
$1.34 $1.39 billion -
GAAP net loss is expected to range from
$214 $197 million -
GAAP net loss per share is expected to range from
$1.27 $1.17 - Share count used to calculate GAAP net loss per share is expected to be 168.0 million
- Share count used to calculate management reporting diluted net income per share is expected to be 169.2 million(4)
-
Net Bookings (operational metric) are expected to range from
$1.31 $1.36 billion -
EBITDA (Non-GAAP) is expected to range from
$102 $122 million
The Company is also providing selected data and its management reporting tax rate of
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Three Months Ending |
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Financial Data |
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$ in millions |
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Outlook (3) |
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Change in deferred net revenue and related cost of revenue |
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Stock-based compensation |
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Amortization of intangible assets |
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Business acquisition |
GAAP |
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Total net revenue |
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Cost of revenue |
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Operating expenses |
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Interest and other, net |
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(Loss) income before income taxes |
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Non-GAAP |
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EBITDA |
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1) |
Includes 159.8 million basic shares and 2.0 million shares representing the potential dilution from unvested employee stock grants and the potential dilution from convertible notes. |
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2) |
Adjusted for changes in restricted cash. |
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3) |
The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously. |
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4) |
Includes 168.0 million basic shares and 1.2 million shares representing the potential dilution from unvested employee stock grants and the potential dilution from convertible notes. |
Key assumptions and dependencies underlying the Company’s outlook include: the timely delivery of the titles included in this financial outlook; continued consumer acceptance of Xbox One and PlayStation 4, as well as continued growth in the installed base of PlayStation 5 and Xbox Series X|S; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following have been released since
Label |
Product |
Platforms |
Release Date |
2K |
|
PS4, PS5, Xbox One, Xbox Series X|S, PC (Steam) |
|
2K |
NBA 2K23 Arcade Edition |
|
|
2K |
New Tales From The Borderlands |
PS4, PS5, Xbox One, Xbox Series X|S, PC ( |
|
Private Division |
|
PS4, PS5, Xbox One, Xbox Series X|S, Switch, PC |
|
2K |
Marvel's Midnight Suns |
PS5, Xbox Series X|S, PC ( |
|
|
Grand Theft Auto Online: Los Santos Drug Wars |
PS4, PS5, Xbox One, Xbox Series X|S, PC |
|
Take-Two's future lineup announced to-date includes:
Label |
Product |
Platforms |
Release Date |
Private Division |
Kerbal Space Program 2 (Early Access) |
PC (Steam, |
|
2K |
WWE 2K23 |
PS4, PS5, Xbox One, Xbox Series X|S, PC (Steam) |
|
Private Division |
After Us (Digital Only) |
PS5, Xbox Series X|S, PC (Steam) |
Spring 2023 |
|
Grand Theft Auto: The Trilogy - The Definitive Edition |
iOS, Android |
TBA |
2K |
Marvel's Midnight Suns |
PS4, Xbox One, Switch |
TBA |
Zynga |
Star Wars Hunters |
iOS, Android, Switch |
TBA |
Ghost Story Games |
Judas |
PS5, Xbox Series X|S, PC (Steam, |
TBA |
Conference Call
Take-Two will host a conference call today at
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
The Company’s management believes it is important to consider Adjusted Unrestricted Operating Cash Flow, in addition to net cash from operating activities, as it provides more transparency into current business trends without regard to the timing of payments from restricted cash, which is primarily related to a dedicated account limited to the payment of certain internal royalty obligations.
The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. The Company has chosen to report EBITDA in light of the combination with Zynga, including the related debt financing. Management believes that, when considered together with reported amounts, EBITDA is useful to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to the Company’s operations and financial condition.
These Non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. These Non-GAAP financial measures may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating these Non-GAAP financial measures used by the Company. Management believes that the presentation of these Non-GAAP financial measures provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, these measures facilitate comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses these Non-GAAP financial measures in assessing the Company's operating results and in planning and forecasting. A reconciliation of these Non-GAAP financial measures to the most comparable GAAP measure is contained in the financial tables to this press release.
Final Results
The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Quarterly Report on Form 10-Q for the period ended
About
Headquartered in
All trademarks and copyrights contained herein are the property of their respective holders.
Cautionary Note Regarding Forward-Looking Statements
Statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," “should,” "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company's future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including: risks relating to our combination with Zynga; the uncertainty of the impact of the COVID-19 pandemic and measures taken in response thereto; the effect that measures taken to mitigate the COVID-19 pandemic have on our operations, including our ability to timely deliver our titles and other products, and on the operations of our counterparties, including retailers and distributors; the effects of the COVID-19 pandemic on both consumer demand and the discretionary spending patterns of our customers as the situation with the pandemic continues to evolve; the risks of conducting business internationally; the impact of changes in interest rates by the
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
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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(in millions, except per share amounts) |
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Three Months Ended |
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Nine Months Ended |
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2022 |
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2021 |
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2022 |
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2021 |
|
Net revenue: |
|
|
|
|
|
|
|
|
||||||||
Game |
|
$ |
1,231.3 |
|
|
$ |
883.3 |
|
|
$ |
3,469.3 |
|
|
$ |
2,512.3 |
|
Advertising |
|
|
176.5 |
|
|
|
20.0 |
|
|
|
434.4 |
|
|
|
62.5 |
|
Total net revenue |
|
|
1,407.8 |
|
|
|
903.3 |
|
|
|
3,903.7 |
|
|
$ |
2,574.8 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
||||||||
Software development costs and royalties |
|
|
294.1 |
|
|
|
43.1 |
|
|
|
749.1 |
|
|
|
275.0 |
|
Product costs |
|
|
204.6 |
|
|
|
73.0 |
|
|
|
526.0 |
|
|
|
186.0 |
|
Internal royalties |
|
|
116.7 |
|
|
|
172.8 |
|
|
|
334.4 |
|
|
|
477.8 |
|
Licenses |
|
|
76.5 |
|
|
|
61.5 |
|
|
|
232.1 |
|
|
|
198.0 |
|
Total cost of revenue |
|
|
691.9 |
|
|
|
350.4 |
|
|
|
1,841.6 |
|
|
|
1,136.8 |
|
Gross profit |
|
|
715.9 |
|
|
|
552.9 |
|
|
|
2,062.1 |
|
|
|
1,438.0 |
|
Selling and marketing |
|
|
446.7 |
|
|
|
135.3 |
|
|
|
1,163.1 |
|
|
|
375.2 |
|
Research and development |
|
|
238.2 |
|
|
|
116.7 |
|
|
|
655.2 |
|
|
|
310.5 |
|
General and administrative |
|
|
168.9 |
|
|
|
130.8 |
|
|
|
620.6 |
|
|
|
363.0 |
|
Depreciation and amortization |
|
|
35.0 |
|
|
|
16.0 |
|
|
|
86.0 |
|
|
|
44.6 |
|
Total operating expenses |
|
|
888.8 |
|
|
|
398.8 |
|
|
|
2,524.9 |
|
|
|
1,093.3 |
|
(Loss) income from operations |
|
|
(172.9 |
) |
|
|
154.1 |
|
|
|
(462.8 |
) |
|
|
344.7 |
|
Interest and other, net |
|
|
(28.3 |
) |
|
|
(5.6 |
) |
|
|
(108.1 |
) |
|
|
(7.2 |
) |
Gain (loss) on fair value adjustments, net |
|
|
1.1 |
|
|
|
3.7 |
|
|
|
(36.6 |
) |
|
|
6.1 |
|
(Loss) income before income taxes |
|
|
(200.1 |
) |
|
|
152.2 |
|
|
|
(607.5 |
) |
|
|
343.6 |
|
(Benefit from) provision for income taxes |
|
|
(46.7 |
) |
|
|
7.6 |
|
|
|
(93.1 |
) |
|
|
36.5 |
|
Net (loss) income |
|
$ |
(153.4 |
) |
|
$ |
144.6 |
|
|
$ |
(514.4 |
) |
|
$ |
307.1 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic (loss) earnings per share |
|
$ |
(0.91 |
) |
|
$ |
1.25 |
|
|
$ |
(3.27 |
) |
|
$ |
2.66 |
|
Diluted (loss) earnings per share |
|
$ |
(0.91 |
) |
|
$ |
1.24 |
|
|
$ |
(3.27 |
) |
|
$ |
2.63 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
168.0 |
|
|
|
115.3 |
|
|
|
157.2 |
|
|
|
115.6 |
|
Diluted |
|
|
168.0 |
|
|
|
116.7 |
|
|
|
157.2 |
|
|
|
116.8 |
|
Computation of Basic EPS: |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
|
$ |
(153.4 |
) |
|
$ |
144.6 |
|
|
$ |
(514.4 |
) |
|
$ |
307.1 |
|
Weighted average shares outstanding - basic |
|
|
168.0 |
|
|
|
115.3 |
|
|
|
157.2 |
|
|
|
115.6 |
|
Basic (loss) earnings per share |
|
$ |
(0.91 |
) |
|
$ |
1.25 |
|
|
$ |
(3.27 |
) |
|
$ |
2.66 |
|
Computation of Diluted EPS: |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
|
$ |
(153.4 |
) |
|
$ |
144.6 |
|
|
$ |
(514.4 |
) |
|
$ |
307.1 |
|
Weighted average shares outstanding - basic |
|
|
168.0 |
|
|
|
115.3 |
|
|
|
157.2 |
|
|
|
115.6 |
|
Add: dilutive effect of common stock equivalents |
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
1.2 |
|
Weighted average common shares outstanding - diluted |
|
|
168.0 |
|
|
|
116.7 |
|
|
|
157.2 |
|
|
|
116.8 |
|
Diluted (loss) earnings per share |
|
$ |
(0.91 |
) |
|
$ |
1.24 |
|
|
$ |
(3.27 |
) |
|
$ |
2.63 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in millions, except per share amounts) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
860.9 |
|
|
$ |
1,732.1 |
|
Short-term investments |
|
268.6 |
|
|
|
820.1 |
|
Restricted cash and cash equivalents |
|
331.5 |
|
|
|
359.8 |
|
Accounts receivable, net of allowances of |
|
711.1 |
|
|
|
579.4 |
|
Software development costs and licenses |
|
68.1 |
|
|
|
81.4 |
|
Contract assets |
|
84.4 |
|
|
|
104.9 |
|
Prepaid expenses and other |
|
282.1 |
|
|
|
193.4 |
|
Total current assets |
|
2,606.7 |
|
|
|
3,871.1 |
|
Fixed assets, net |
|
360.6 |
|
|
|
242.0 |
|
Right-of-use assets |
|
319.9 |
|
|
|
217.2 |
|
Software development costs and licenses, net of current portion |
|
1,035.9 |
|
|
|
755.9 |
|
|
|
6,788.2 |
|
|
|
674.6 |
|
Other intangibles, net |
|
5,222.6 |
|
|
|
266.5 |
|
Deferred tax assets |
|
123.9 |
|
|
|
73.8 |
|
Long-term restricted cash and cash equivalents |
|
109.9 |
|
|
|
103.5 |
|
Other assets |
|
313.7 |
|
|
|
341.7 |
|
Total assets |
$ |
16,881.4 |
|
|
$ |
6,546.3 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
151.6 |
|
|
$ |
125.9 |
|
Accrued expenses and other current liabilities |
|
1,313.3 |
|
|
|
1,074.9 |
|
Deferred revenue |
|
1,136.4 |
|
|
|
865.3 |
|
Lease liabilities |
|
58.5 |
|
|
|
38.9 |
|
Short-term debt |
|
350.0 |
|
|
|
— |
|
Total current liabilities |
|
3,009.8 |
|
|
|
2,105.0 |
|
Long-term debt, net |
|
2,735.5 |
|
|
|
— |
|
Non-current deferred revenue |
|
31.0 |
|
|
|
70.9 |
|
Non-current lease liabilities |
|
354.2 |
|
|
|
211.3 |
|
Non-current software development royalties |
|
121.2 |
|
|
|
115.5 |
|
Deferred tax liabilities, net |
|
711.3 |
|
|
|
21.8 |
|
Other long-term liabilities |
|
368.0 |
|
|
|
212.1 |
|
Total liabilities |
$ |
7,331.0 |
|
|
$ |
2,736.6 |
|
Commitments and contingencies (See Note 12) |
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1.9 |
|
|
|
1.4 |
|
Additional paid-in capital |
|
8,928.7 |
|
|
|
2,597.2 |
|
|
|
(1,020.6 |
) |
|
|
(1,020.6 |
) |
Retained earnings |
|
1,774.6 |
|
|
|
2,289.0 |
|
Accumulated other comprehensive loss |
|
(134.2 |
) |
|
|
(57.3 |
) |
Total stockholders' equity |
$ |
9,550.4 |
|
|
$ |
3,809.7 |
|
Total liabilities and stockholders' equity |
$ |
16,881.4 |
|
|
$ |
6,546.3 |
|
|
|||||||
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
(in millions) |
||||||||
|
|
|
|
|
||||
|
|
Nine Months Ended |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
|
||||
Net (loss) income |
|
$ |
(514.4 |
) |
|
$ |
307.1 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
||||
Amortization and impairment of software development costs and licenses |
|
|
147.6 |
|
|
|
177.8 |
|
Stock-based compensation |
|
|
238.5 |
|
|
|
142.5 |
|
Noncash lease expense |
|
|
35.2 |
|
|
|
25.2 |
|
Amortization of intellectual property |
|
|
740.1 |
|
|
|
49.5 |
|
Depreciation |
|
|
62.9 |
|
|
|
44.7 |
|
Amortization of debt issuance costs |
|
|
12.3 |
|
|
|
— |
|
Interest expense |
|
|
79.0 |
|
|
|
— |
|
Fair value adjustments |
|
|
37.1 |
|
|
|
(6.1 |
) |
Other, net |
|
|
(36.0 |
) |
|
|
12.2 |
|
Changes in assets and liabilities, net of effect from purchases of businesses: |
|
|
|
|
||||
Accounts receivable |
|
|
158.0 |
|
|
|
(85.8 |
) |
Software development costs and licenses |
|
|
(362.9 |
) |
|
|
(376.5 |
) |
Prepaid expenses and other current and other non-current assets |
|
|
(23.5 |
) |
|
|
(142.7 |
) |
Deferred revenue |
|
|
(88.1 |
) |
|
|
10.6 |
|
Accounts payable, accrued expenses and other liabilities |
|
|
(450.0 |
) |
|
|
(139.3 |
) |
Net cash provided by operating activities |
|
|
35.8 |
|
|
|
19.2 |
|
Investing activities: |
|
|
|
|
||||
Change in bank time deposits |
|
|
123.0 |
|
|
|
(43.9 |
) |
Sale and maturities of available-for-sale securities |
|
|
436.1 |
|
|
|
494.9 |
|
Purchases of available-for-sale securities |
|
|
— |
|
|
|
(632.5 |
) |
Purchases of fixed assets |
|
|
(137.7 |
) |
|
|
(133.4 |
) |
Proceeds from sale of long-term investment |
|
|
20.6 |
|
|
|
— |
|
Purchases of long-term investments |
|
|
(10.2 |
) |
|
|
(8.7 |
) |
Business acquisitions |
|
|
(3,241.8 |
) |
|
|
(157.3 |
) |
Other |
|
|
(4.8 |
) |
|
|
1.1 |
|
Net cash used in investing activities |
|
|
(2,814.8 |
) |
|
|
(479.8 |
) |
Financing activities: |
|
|
|
|
||||
Tax payment related to net share settlements on restricted stock awards |
|
|
(90.6 |
) |
|
|
(59.1 |
) |
Issuance of common stock |
|
|
22.3 |
|
|
|
19.6 |
|
Payment for settlement of convertible notes |
|
|
(1,166.8 |
) |
|
|
— |
|
Proceeds from issuance of debt |
|
|
3,248.9 |
|
|
|
— |
|
Cost of debt |
|
|
(22.4 |
) |
|
|
— |
|
Repayment of debt |
|
|
(200.0 |
) |
|
|
— |
|
Settlement of capped calls |
|
|
140.1 |
|
|
|
— |
|
Loan repayment |
|
|
— |
|
|
|
(0.2 |
) |
Repurchase of common stock |
|
|
— |
|
|
|
(200.0 |
) |
Payment of contingent earn-out consideration |
|
|
(26.9 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
1,904.6 |
|
|
|
(239.7 |
) |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents |
|
|
(18.6 |
) |
|
|
(2.7 |
) |
Net change in cash, cash equivalents, and restricted cash and cash equivalents |
|
|
(893.0 |
) |
|
|
(703.0 |
) |
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1) |
|
|
2,195.3 |
|
|
|
2,060.2 |
|
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1) |
|
$ |
1,302.3 |
|
|
$ |
1,357.2 |
|
|
||||||||
|
|
|
||||||||||
Net Revenue and Net Bookings by |
|
|
||||||||||
(in millions) |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Three Months Ended |
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
886.8 |
|
63 |
% |
|
$ |
534.9 |
|
59 |
% |
International |
|
|
521.0 |
|
37 |
% |
|
|
368.4 |
|
41 |
% |
Total net revenue |
|
$ |
1,407.8 |
|
100 |
% |
|
$ |
903.3 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
872.2 |
|
63 |
% |
|
$ |
504.3 |
|
58 |
% |
International |
|
|
510.4 |
|
37 |
% |
|
|
361.8 |
|
42 |
% |
Total Net Bookings |
|
$ |
1,382.6 |
|
100 |
% |
|
$ |
866.1 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
|
Three Months Ended |
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
1,336.7 |
|
95 |
% |
|
$ |
795.7 |
|
88 |
% |
Physical retail and other |
|
|
71.1 |
|
5 |
% |
|
|
107.6 |
|
12 |
% |
Total net revenue |
|
$ |
1,407.8 |
|
100 |
% |
|
$ |
903.3 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
1,308.2 |
|
95 |
% |
|
$ |
762.3 |
|
88 |
% |
Physical retail and other |
|
|
74.4 |
|
5 |
% |
|
|
103.8 |
|
12 |
% |
Total Net Bookings |
|
$ |
1,382.6 |
|
100 |
% |
|
$ |
866.1 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
|
Three Months Ended |
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by platform mix |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
721.2 |
|
51 |
% |
|
$ |
103.8 |
|
11 |
% |
Console |
|
|
561.4 |
|
40 |
% |
|
|
665.5 |
|
74 |
% |
PC and other |
|
|
125.2 |
|
9 |
% |
|
|
134.0 |
|
15 |
% |
Total net revenue |
|
$ |
1,407.8 |
|
100 |
% |
|
$ |
903.3 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by platform mix |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
713.2 |
|
52 |
% |
|
$ |
108.2 |
|
12 |
% |
Console |
|
|
541.6 |
|
39 |
% |
|
|
622.3 |
|
72 |
% |
PC and other |
|
|
127.8 |
|
9 |
% |
|
|
135.6 |
|
16 |
% |
Total Net Bookings |
|
$ |
1,382.6 |
|
100.0 |
% |
|
$ |
866.1 |
|
100 |
% |
|
|
|
||||||||||
Net Revenue and Net Bookings by |
|
|
||||||||||
(in millions) |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
|
|
Nine Months Ended |
|
Nine Months Ended |
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
2,412.6 |
|
62 |
% |
|
$ |
1,543.0 |
|
60 |
% |
International |
|
|
1,491.1 |
|
38 |
% |
|
|
1,031.8 |
|
40 |
% |
Total net revenue |
|
$ |
3,903.7 |
|
100 |
% |
|
$ |
2,574.8 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
2,442.3 |
|
63 |
% |
|
$ |
1,526.9 |
|
60 |
% |
International |
|
|
1,447.7 |
|
37 |
% |
|
|
1,035.5 |
|
40 |
% |
Total Net Bookings |
|
$ |
3,890.0 |
|
100 |
% |
|
$ |
2,562.4 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Nine Months Ended |
|
Nine Months Ended |
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
3,693.7 |
|
95 |
% |
|
$ |
2,315.6 |
|
90 |
% |
Physical retail and other |
|
|
210.0 |
|
5 |
% |
|
|
259.2 |
|
10 |
% |
Total net revenue |
|
$ |
3,903.7 |
|
100 |
% |
|
$ |
2,574.8 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
3,685.1 |
|
95 |
% |
|
$ |
2,318.8 |
|
90 |
% |
Physical retail and other |
|
|
204.9 |
|
5 |
% |
|
|
243.6 |
|
10 |
% |
Total Net Bookings |
|
$ |
3,890.0 |
|
100 |
% |
|
$ |
2,562.4 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Nine Months Ended |
|
Nine Months Ended |
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by platform mix |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
1,820.9 |
|
47 |
% |
|
$ |
301.2 |
|
12 |
% |
Console |
|
|
1,720.5 |
|
44 |
% |
|
|
1,864.0 |
|
72 |
% |
PC and other |
|
|
362.3 |
|
9 |
% |
|
|
409.6 |
|
16 |
% |
Total net revenue |
|
$ |
3,903.7 |
|
100 |
% |
|
$ |
2,574.8 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by platform mix |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
1,795.8 |
|
46 |
% |
|
$ |
303.9 |
|
12 |
% |
Console |
|
|
1,722.4 |
|
44 |
% |
|
|
1,838.2 |
|
72 |
% |
PC and other |
|
|
371.8 |
|
10 |
% |
|
|
420.3 |
|
16 |
% |
Total Net Bookings |
|
$ |
3,890.0 |
|
100.0 |
% |
|
$ |
2,562.4 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|||||||||||||||
ADDITIONAL DATA |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended |
Net revenue |
|
Cost of revenue- Software development costs and royalties |
|
Cost of revenue- Product costs |
|
Cost of revenue- Internal royalties |
|
Cost of revenue- Licenses |
|
|
||||||||||||
As reported |
$ |
1,407.8 |
|
|
$ |
294.1 |
|
|
$ |
204.6 |
|
|
$ |
116.7 |
|
|
$ |
76.5 |
|
|
|
||
Net effect from deferred revenue and related cost of revenue |
|
(25.0 |
) |
|
|
2.7 |
|
|
|
2.7 |
|
|
|
|
|
1.0 |
|
|
|
||||
Stock-based compensation |
|
|
|
(8.4 |
) |
|
|
|
|
|
|
|
|
||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(202.7 |
) |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended |
Selling and marketing |
|
General and administrative |
|
Research and development |
|
Depreciation and amortization |
|
Interest and other, net |
|
Gain (loss) on fair value adjustments, net |
||||||||||||
As reported |
$ |
446.7 |
|
|
$ |
168.9 |
|
|
$ |
238.2 |
|
|
$ |
35.0 |
|
|
$ |
(28.3 |
) |
|
$ |
1.1 |
|
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
(3.8 |
) |
|
|
||||||||||
Stock-based compensation |
|
(23.0 |
) |
|
|
(25.8 |
) |
|
|
(29.2 |
) |
|
|
|
|
|
|
||||||
Amortization and impairment of acquired intangibles |
|
(80.5 |
) |
|
|
|
|
(7.2 |
) |
|
|
(11.4 |
) |
|
|
|
|
||||||
Acquisition related expenses |
|
(1.1 |
) |
|
|
(16.3 |
) |
|
|
(4.1 |
) |
|
|
|
|
3.4 |
|
|
|
||||
Gain on fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
|
(1.1 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended |
Net revenue |
|
Cost of revenue- Software development costs and royalties |
|
Cost of revenue- Product costs |
|
Cost of revenue- Internal royalties |
|
Cost of revenue- Licenses |
|
|
||||||||||||
As reported |
$ |
903.3 |
|
|
$ |
43.1 |
|
|
$ |
73.0 |
|
|
$ |
172.8 |
|
|
$ |
61.5 |
|
|
|
||
Net effect from deferred revenue and related cost of revenue |
|
(37.1 |
) |
|
|
2.6 |
|
|
|
2.7 |
|
|
|
|
|
0.2 |
|
|
|
||||
Stock-based compensation |
|
|
|
(9.4 |
) |
|
|
|
|
|
|
|
|
||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(12.5 |
) |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended |
Selling and marketing |
|
General and administrative |
|
Research and development |
|
Depreciation and amortization |
|
Interest and other, net |
|
Gain (loss) on fair value adjustments, net |
||||||||||||
As reported |
$ |
135.3 |
|
|
$ |
130.8 |
|
|
$ |
116.7 |
|
|
$ |
16.0 |
|
|
$ |
(5.6 |
) |
|
$ |
3.7 |
|
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
1.0 |
|
|
|
||||||||||
Stock-based compensation |
|
(7.2 |
) |
|
|
(16.5 |
) |
|
|
(13.2 |
) |
|
|
|
|
|
|
||||||
Amortization and impairment of acquired intangibles |
|
(0.8 |
) |
|
|
|
|
(1.6 |
) |
|
|
(0.3 |
) |
|
|
|
|
||||||
Impact of business reorganization |
|
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
||||||||||
Acquisition related expenses |
|
|
|
(14.0 |
) |
|
|
|
|
|
|
|
|
||||||||||
Gain on fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
|
(3.7 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
ADDITIONAL DATA |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended |
Net revenue |
|
Cost of revenue- Software development costs and royalties |
|
Cost of revenue- Product costs |
|
Cost of revenue- Internal royalties |
|
Cost of revenue- Licenses |
|
|
||||||||||||
As reported |
$ |
3,903.7 |
|
|
$ |
749.1 |
|
|
$ |
526.0 |
|
|
$ |
334.4 |
|
|
$ |
232.1 |
|
|
|
||
Net effect from deferred revenue and related cost of revenue |
|
(13.6 |
) |
|
|
12.9 |
|
|
|
0.3 |
|
|
|
|
|
2.6 |
|
|
|
||||
Stock-based compensation |
|
|
|
17.0 |
|
|
|
|
|
|
|
|
|
||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(500.2 |
) |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended |
Selling and marketing |
|
General and administrative |
|
Research and development |
|
Depreciation and amortization |
|
Interest and other, net |
|
Gain (loss) on long-term investments, net |
||||||||||||
As reported |
$ |
1,163.1 |
|
|
$ |
620.6 |
|
|
$ |
655.2 |
|
|
$ |
86.0 |
|
|
$ |
(108.1 |
) |
|
$ |
(36.6 |
) |
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
1.3 |
|
|
|
||||||||||
Stock-based compensation |
|
(76.2 |
) |
|
|
(90.6 |
) |
|
|
(88.7 |
) |
|
|
|
|
|
|
||||||
Amortization and impairment of acquired intangibles |
|
(196.5 |
) |
|
|
|
|
(17.4 |
) |
|
|
(24.1 |
) |
|
|
|
|
||||||
Acquisition related expenses |
|
(8.0 |
) |
|
|
(140.1 |
) |
|
|
(15.3 |
) |
|
|
|
|
24.4 |
|
|
|
37.9 |
|
||
Gain on long-term investments, net |
|
|
|
|
|
|
|
|
|
|
|
(0.5 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended |
Net revenue |
|
Cost of goods revenue- Software development costs and royalties |
|
Cost of revenue- Product costs |
|
Cost of revenue- Internal royalties |
|
Cost of revenue- Licenses |
|
|
||||||||||||
As reported |
$ |
2,574.8 |
|
|
$ |
275.0 |
|
|
$ |
186.0 |
|
|
$ |
477.8 |
|
|
$ |
198.0 |
|
|
|
||
Net effect from deferred revenue and related cost of revenue |
|
(12.4 |
) |
|
|
6.2 |
|
|
|
(0.1 |
) |
|
|
|
|
0.2 |
|
|
|
||||
Stock-based compensation |
|
|
|
(31.8 |
) |
|
|
|
|
|
|
|
|
||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(37.6 |
) |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended |
Selling and marketing |
|
General and administrative |
|
Research and development |
|
Depreciation and amortization |
|
Interest and other, net |
|
Gain (loss) on long-term investments, net |
||||||||||||
As reported |
$ |
375.2 |
|
|
$ |
363.0 |
|
|
$ |
310.5 |
|
|
$ |
44.6 |
|
|
$ |
(7.2 |
) |
|
$ |
6.1 |
|
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
1.4 |
|
|
|
||||||||||
Stock-based compensation |
|
(22.4 |
) |
|
|
(50.3 |
) |
|
|
(38.0 |
) |
|
|
|
|
|
|
||||||
Amortization and impairment of acquired intangibles |
|
(4.5 |
) |
|
|
|
|
(5.0 |
) |
|
|
(1.0 |
) |
|
|
|
|
||||||
Impact of business reorganization |
|
|
|
(0.5 |
) |
|
|
|
|
|
|
|
|
||||||||||
Acquisition related expenses |
|
|
|
(39.5 |
) |
|
|
|
|
|
|
|
|
||||||||||
Gain on long-term investments, net |
|
|
|
|
|
|
|
|
|
|
|
(6.1 |
) |
||||||||||
|
|
|
|
|
|||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE |
|
|
|
|
|||
(in millions) |
|
|
|
|
|||
|
|
|
|
|
|||
|
|
Nine Months Ended |
|||||
|
|
|
2022 |
|
|
|
2021 |
Net cash from operating activities |
|
$ |
35.8 |
|
|
$ |
19.0 |
Net change in Restricted cash (1) |
|
|
87.1 |
|
|
|
259.7 |
Adjusted Unrestricted Operating Cash Flow |
|
$ |
122.9 |
|
|
$ |
278.7 |
|
|
|
|
|
|||
|
|
Nine Months Ended |
|||||
|
|
|
2022 |
|
|
|
2021 |
Restricted cash beginning of period |
|
$ |
463.3 |
|
|
$ |
637.4 |
Restricted cash end of period |
|
|
441.4 |
|
|
|
370.5 |
Restricted cash related to acquisitions |
|
|
(65.2 |
) |
|
|
7.1 |
(1) Net change in Restricted cash |
|
$ |
87.1 |
|
|
$ |
259.7 |
|
|
|
|
||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE |
|
|
|
||||||||||||
(in millions) |
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
Nine Months Ended |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Net (loss) income |
|
$ |
(153.4 |
) |
|
$ |
144.6 |
|
$ |
(514.4 |
) |
|
$ |
307.1 |
|
(Benefit from) provision for income taxes |
|
|
(46.7 |
) |
|
$ |
7.6 |
|
$ |
(93.1 |
) |
|
$ |
36.5 |
|
Interest expense (income) |
|
|
22.5 |
|
|
$ |
(1.0 |
) |
$ |
72.1 |
|
|
$ |
(3.2 |
) |
Depreciation and amortization |
|
|
35.0 |
|
|
|
16.0 |
|
|
86.0 |
|
|
|
44.6 |
|
Amortization of acquired intangibles |
|
|
290.4 |
|
|
|
12.5 |
|
|
714.1 |
|
|
|
47.0 |
|
EBITDA |
|
$ |
147.8 |
|
|
$ |
179.8 |
|
$ |
264.6 |
|
|
$ |
432.0 |
|
Outlook |
|
|
|
|
Twelve Months Ending |
Net loss |
|
|
Benefit from income taxes |
|
|
Interest expense |
|
|
Depreciation |
|
|
Amortization of acquired intangibles |
|
|
EBITDA |
|
|
Outlook |
|
|
|
|
Three Months Ending |
Net loss |
|
|
Benefit from income taxes |
|
|
Interest expense |
|
|
Depreciation |
|
|
Amortization of acquired intangibles |
|
|
EBITDA |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230206005455/en/
(Investor Relations)
Senior Vice President
Investor Relations & Corporate Communications
(646) 536-3005
Nicole.Shevins@take2games.com
(
Vice President
(646) 536-2983
Alan.Lewis@take2games.com
Source: Take-Two Interactive
FAQ
What were Take-Two's fiscal Q3 2023 revenue and earnings results?
What is the outlook for Take-Two's fiscal year 2023 Net Bookings?
How much did Take-Two's Net Bookings grow in Q3 FY2023?
What is the expected GAAP net loss per share for Take-Two in FY2023?
