Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2024

Rhea-AI Summary

Take-Two Interactive Software (NASDAQ: TTWO) reported Q4 and fiscal year 2024 results, with Q4 net bookings of $1.35 billion, driven by NBA 2K24, Zynga's in-app purchases, and popular series like Red Dead Redemption and Grand Theft Auto. Fiscal year 2024 net bookings reached $5.33 billion. However, GAAP net revenue decreased by 3% to $1.40 billion in Q4, and the company recorded a net loss of $2.90 billion due to significant impairment charges and business reorganization expenses. For fiscal year 2025, Take-Two projects net bookings of $5.55 to $5.65 billion and anticipates a substantial commercial impact from the release of Grand Theft Auto VI in Fall 2025.

Positive

• Q4 2024 net bookings reached $1.35 billion, exceeding guidance.
• Strong performance from key franchises like NBA 2K24, Grand Theft Auto, and Red Dead Redemption.
• Fiscal year 2024 net bookings up by 1% to $5.33 billion.
• Positive fiscal 2025 outlook with net bookings projected between $5.55 to $5.65 billion.
• Anticipated commercial success of Grand Theft Auto VI expected to boost future financials.

Negative

• Q4 2024 GAAP net revenue decreased by 3% to $1.40 billion.
• Net loss of $2.90 billion in Q4, largely due to $2.18 billion in goodwill impairment and $304.3 million in acquisition-related intangible assets impairment.
• Fiscal year 2024 GAAP net loss widened to $3.74 billion from $1.12 billion the previous year.
• Recurrent consumer spending decreased by 2% in Q4, impacting 79% of total net bookings.
• Business reorganization expenses amounted to $93.3 million in Q4 and $104.6 million for the fiscal year.

Insights

Financial Analyst

Take-Two Interactive Software, Inc.'s latest financial results reveal a mixed bag of insights for investors. Despite reporting $1.35 billion in Net Bookings for Q4, showing a slight decrease from last year’s $1.39 billion, the company exceeded its guidance range, indicating robust performance in some of its key franchises. Notably, titles like NBA 2K24, Grand Theft Auto Online and Red Dead Redemption 2 were significant contributors.

However, the GAAP net loss of $2.90 billion, largely due to impairment charges related to goodwill and acquisition-related intangible assets, is a red flag. This substantial loss contrasts sharply with the previous year's $610.3 million loss. The company's ongoing cost-reduction program appears to have been a necessary yet costly move.

Looking ahead, Take-Two's outlook for fiscal 2025 appears cautiously optimistic with projected Net Bookings of $5.55 to $5.65 billion. While the anticipation for the upcoming Grand Theft Auto VI release by Fall 2025 is optimistic, it remains to be seen whether it can drive the expected sequential growth. Investors should keep an eye on how the company manages its expenses and leverages its strong franchises to enhance margins and drive returns.

Market Analyst

From a market perspective, Take-Two Interactive's performance highlights the importance of its core franchises in sustaining revenue. The continued success of NBA 2K24 and the Grand Theft Auto series underscores the company's ability to engage its audience consistently.

The narrowing release window for Grand Theft Auto VI suggests a strategic move to capitalize on market anticipation. This title is likely to be a significant revenue driver given its historical performance. However, the market will be closely watching for precise timelines and execution to ensure minimal delays.

Additionally, the noted decrease in Recurrent Consumer Spending—which includes in-game purchases and advertising—by 2% is a slight concern. It indicates potential saturation or competitive pressures in the market. Investors should monitor how Take-Two adapts its monetization strategies to sustain engagement and conversion rates.

Tech Expert

From a technology standpoint, the planned release of Grand Theft Auto VI signals a critical juncture for Take-Two Interactive. The company's ability to deliver cutting-edge gaming experiences will be pivotal, especially as consumer expectations for graphics, gameplay and interactive content continue to rise.

The performance of Zynga’s in-app purchases, led by titles like Toon Blast and Match Factory!, shows the potential in mobile gaming. However, the integration of these mobile platforms with console and PC gaming ecosystems could unlock additional revenue streams. Investors should watch how Take-Two leverages cross-platform capabilities to enhance overall user experience and drive engagement.

The emphasis on a digital-first strategy for its games and services will be essential for future growth. Effective utilization of data analytics to understand player behavior and preferences can significantly boost revenue through personalized in-game offerings and targeted marketing.

$1.35 billion fourth quarter Net Bookings, with outperformance in NBA 2K24; Zynga’s in-app purchases, led by Toon Blast and Match Factory!; the Red Dead Redemption series and the Grand Theft Auto series

$5.33 billion fiscal year 2024 Net Bookings

Company gives initial outlook for fiscal 2025, including Net Bookings of $5.55 to $5.65 billion

NEW YORK--(BUSINESS WIRE)-- Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the fourth quarter and fiscal year 2024, ended March 31, 2024. For further information, please see the fourth quarter and fiscal 2024 results slide deck posted to the Company’s investor relations website at take2games.com/ir.

Management Comments

"We concluded Fiscal 2024 with strong fourth quarter results, including Net Bookings of $1.35 billion, which exceeded the high-end of our guidance range. Many of our key franchises outperformed, including NBA 2K24; Zynga’s in-app purchases, led by Toon Blast and our newest hit, Match Factory!; the Red Dead Redemption series and the Grand Theft Auto series," said Strauss Zelnick, Chairman and CEO of Take-Two.

"As we enter Fiscal 2025 with positive momentum, we expect to deliver Net Bookings of $5.55 to $5.65 billion. Our outlook reflects a narrowing of Rockstar Games' previously established window of Calendar 2025 to Fall of Calendar 2025 for Grand Theft Auto VI. We are highly confident that Rockstar Games will deliver an unparalleled entertainment experience, and our expectations for the commercial impact of the title continue to increase. Looking ahead, we believe that our Company is poised to achieve new levels of success, and we expect to deliver sequential growth in Net Bookings for Fiscal 2025, 2026, and 2027. As we deliver our pipeline, we are confident that we will drive our scale, enhance our margins, and deliver industry-leading returns for our shareholders."

Fourth Quarter Fiscal 2024 Financial and Operational Highlights

• Total Net Bookings* decreased 3% to $1.35 billion, as compared to $1.39 billion during last year’s fiscal fourth quarter.
  • Net Bookings from recurrent consumer spending** decreased 2% and accounted for 79% of total Net Bookings.
  • The largest contributors to Net Bookings were NBA® 2K24, Grand Theft Auto® Online and Grand Theft Auto V, Toon Blast™, Empires & Puzzles™, our hyper-casual mobile portfolio, Red Dead Redemption® 2 and Red Dead Online, WWE® 2K24, Match Factory!, Words With Friends™, and Merge Dragons!™.

• GAAP net revenue decreased 3% to $1.40 billion, as compared to $1.45 billion in last year’s fiscal fourth quarter.
  • Recurrent consumer spending** decreased 2% and accounted for 79% of total GAAP net revenue.
  • The largest contributors to GAAP net revenue were NBA 2K24 and NBA 2K23, Grand Theft Auto Online and Grand Theft Auto V, Toon Blast, Empires & Puzzles, our hyper-casual mobile portfolio, Red Dead Redemption 2 and Red Dead Online, WWE 2K24, Match Factory!, and Words With Friends.

• GAAP net loss was $2.90 billion, or $17.02 per share, as compared to $610.3 million, or $3.62 per share, for the comparable period last year.

• Our GAAP results include impairment charges of (i) $2.18 billion related to goodwill and (ii) $304.3 million for acquisition-related intangible assets, and business reorganization expenses of $93.3 million related to our cost-reduction program.

* Net Bookings is our operational metric and 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. 
** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.

Fourth Quarter Fiscal 2024 Financial Results

The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

		Three Months Ended March 31, 2024
				Financial Data
in millions		Statement of Operations		Change in deferred net revenue and related cost of revenue		Stock-based compensation		Impact of business reorganization		Amortization and impairment of acquired intangibles		Business acquisition		Other (a)
GAAP
Total net revenue		$1,399.4		(50.7)
Cost of revenue		930.3		(3.4)		(3.9)				(476.3)
Gross profit		469.1		(47.3)		3.9				476.3
Operating expenses		3,182.2				(76.7)		(93.3)		(17.7)		(2,164.7)
(Loss) income from operations		(2,713.1)		(47.3)		80.6		93.3		494.0		2,164.7
Interest and other, net		(24.6)		2.0								1.9		6.8
(Loss) gain on fair value adjustments, net		(6.9)										3.3		3.4
(Loss) income before income taxes		(2,744.6)		(45.3)		80.6		93.3		494.0		2,169.9		10.2
Non-GAAP
EBITDA		(19.6)		(47.3)		80.6		93.3				13.4		(10.2)

Note: For management reporting purposes, the table above assumes a management tax rate of 18% and a fully diluted share count of 173.2 million in order to calculate diluted net income per share.

^(a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity investments.

Fiscal Year 2024 Financial and Operational Highlights

• Total Net Bookings* increased 1% to $5.33 billion, as compared to $5.28 billion during last fiscal year.
  • Net Bookings from recurrent consumer spending** increased 2% and accounted for 78% of total Net Bookings.
  • The largest contributors to Net Bookings were NBA 2K24, Grand Theft Auto Online and Grand Theft Auto V, Toon Blast, Empires & Puzzles, our hyper-casual mobile portfolio, Red Dead Redemption 2 and Red Dead Online, Words With Friends, and Merge Dragons!.

• GAAP net revenue was flat at $5.35 billion when compared to last fiscal year.
  • Recurrent consumer spending** increased 1% and accounted for 79% of total GAAP net revenue.
  • The largest contributors to GAAP net revenue were NBA 2K23 and NBA 2K24, Grand Theft Auto Online and Grand Theft Auto V, Toon Blast, our hyper-casual mobile portfolio, Empires & Puzzles, Red Dead Redemption 2 and Red Dead Online, Merge Dragons!, Words With Friends, and Zynga Poker.

• GAAP net loss was $3.74 billion, or $22.01 per share, as compared to $1.12 billion, or $7.03 per share, for the comparable period last year.

• Our GAAP results include impairment charges of (i) $2.34 billion related to goodwill and (ii) $577.4 million for acquisition-related intangible assets, and business reorganization expenses of $104.6 million related to our cost-reduction programs.

Fiscal Year 2024 Financial Results

The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

		Twelve Months Ended March 31, 2024
				Financial Data
in millions		Statement of Operations		Change in deferred net revenue and related cost of revenue		Stock-based compensation		Impact of business reorganization		Amortization and impairment of acquired intangibles		Business acquisition		Other (a)
GAAP
Total net revenue		$5,349.6		(16.7)
Cost of revenue		3,107.8				(24.4)				(1,303.5)		10.0
Gross profit		2,241.8		(16.7)		24.4				(1,303.5)
Operating expenses		5,832.4				(311.2)		(104.6)		(115.4)		(2,351.8)
(Loss) income from operations		(3,590.6)		(16.7)		335.6		104.6		1,418.9		2,341.8
Interest and other, net		(103.6)		2.0								0.5		26.7
(Loss) gain on fair value adjustments, net		(8.6)										6.4		1.9
(Loss) income before income taxes		(3,702.8)		(14.7)		335.6		104.6		1,418.9		2,348.7		28.6
Non-GAAP
EBITDA		272.0		(16.7)		335.6		104.6				(1.9)		28.6

Note: For management reporting purposes, the table above assumes a management tax rate of 18% and a fully diluted share count of 172.6 in order to calculate diluted net income per share.

^(a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity investments.

Outlook for Fiscal 2025

Take-Two is providing its initial outlook for the fiscal year ending March 31, 2025 and fiscal first quarter ending June 30, 2024.

Fiscal Year Ending March 31, 2025

The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

		Fiscal Year Ending March 31, 2025
				Financial Data
$ in millions except for per share amounts		Outlook (1)		Change in deferred net revenue and related cost of revenue		Stock-based compensation		Amortization of acquired intangibles		Other (a)
GAAP
Total net revenue		$5,570 to $5,670		(20)
Cost of revenue		$2,431 to $2,457		10		(10)		(640)
Operating expenses		$3,559 to $3,579				(306)		(70)		(31)
Interest and other, net		$111								(4)
(Loss) income before income taxes		$(531) to $(477)		(30)		316		710		35
Net loss		$(674) to $(606)
Net loss per share		$(3.90) to $(3.50)
Net cash from operating activities		approximately $(20)
Capital expenditures		approximately $140
Non-GAAP
EBITDA		$429 to $483		(30)		316				31
Adjusted Unrestricted Operating Cash Flow		approximately $(200)
Operational Metric
Net Bookings		$5,550 to $5,650

• Management reporting tax rate anticipated to be 18%
• Share count used to calculate GAAP net loss per share is expected to be 172.9 million
• Share count used to calculate management reporting diluted net income per share is expected to be 175.3 million

^(a) Other includes adjustments for (i) business reorganization expenses and (ii) deferred financing costs associated with our debt.

First Quarter Ending June 30, 2024

The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

		Three Months Ending June 30, 2024
				Financial Data
$ in millions except for per share amounts		Outlook (1)		Change in deferred net revenue and related cost of revenue		Stock-based compensation		Amortization of acquired intangibles		Other (a)
GAAP
Total net revenue		$1,300 to $1,350		(100)
Cost of revenue		$559 to $578		(14)		(9)		(161)
Operating expenses		$928 to $938				(75)		(18)		(25)
Interest and other, net		$27								(1)
(Loss) income before income taxes		$(214) to $(193)		(86)		84		179		26
Net loss		$(272) to $(245)
Net loss per share		$(1.58) to $(1.43)
Non-GAAP
EBITDA		$26 to $47		(86)		84				25
Operational Metric
Net Bookings		$1,200 to $1,250

• Management reporting tax rate is anticipated to be 18%
• Share count used to calculate GAAP net loss per share is expected to be 171.7 million
• Share count used to calculate management reporting diluted net income per share is expected to be 173.7 million

^(a) Other includes adjustments for (i) business reorganization expenses and (ii) deferred financing costs associated with our debt.

1)

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.

Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S, as well as engagement on Xbox One and PlayStation 4; 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; our ongoing focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.

Product Releases

The following have been released since January 1, 2024:

Label	Product	Platforms	Release Date
Private Division	Penny's Big Breakaway	PS5, Xbox Series X|S, PC, Switch	February 21, 2024
2K	WWE 2K24	PS4, PS5, Xbox One, Xbox Series X|S, PC	March 8, 2024
Private Division	No Rest for the Wicked	Early Access on PC	April 18, 2024
2K	NFL 2K Playmakers	iOs, Android	April 23, 2024
2K	TopSpin 2K25	PS4, PS5, Xbox One, Xbox Series X|S, PC	April 26, 2024

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

Label	Product	Platforms	Release Date
Zynga	Star Wars Hunters	iOS, Android, Switch	June 4, 2024
Zynga	Game of Thrones: Legends	iOs, Android	Fiscal 2025
Private Division	Tales of the Shire: A The Lord of the Rings Game	PS5, Xbox Series X|S, PC, Switch	Fiscal 2025
2K	NBA 2K25	TBA	Fiscal 2025
2K	WWE 2K25	TBA	Fiscal 2025
Rockstar Games	Grand Theft Auto VI	PS5, Xbox Series X|S	Fall of Calendar 2025
Ghost Story Games	Judas	PS5, Xbox Series X|S, PC	TBA

Conference Call

Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses Non-GAAP measures of financial performance: Adjusted Unrestricted Operating Cash Flow, which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash, and EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), provision for (benefit from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles.

The Company’s management believes it is important to consider Adjusted Unrestricted Operating Cash Flow, in addition to net cash from operating activities, as it provides more transparency into current business trends without regard to the timing of payments from restricted cash, which is primarily related to a dedicated account limited to the payment of certain internal royalty obligations.

The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. 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 Annual Report on Form 10−K for the period ended March 31, 2024.

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, Private Division, and Zynga. Our products are designed for console gaming systems, PC, and mobile, including smartphones and tablets. We deliver our products 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

The statements contained herein, which are not historical facts, including statements relating to Take-Two Interactive Software, Inc.'s ("Take-Two," the "Company," "we," "us," or similar pronouns) outlook, 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 our 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 Inc.; the risks of conducting business internationally, including as a result of unforeseen geopolitical events; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; factors affecting our mobile business, such as player acquisition costs; the timely release and significant market acceptance of our games; and the ability to maintain acceptable pricing levels on our games.

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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
		Three Months Ended March 31,								Twelve Months Ended March 31,
			2024				2023				2024				2023
Net revenue:
Game		$	1,260.6			$	1,266.3			$	4,693.5			$	4,735.6
Advertising			138.8				179.9				656.1				614.3
Total net revenue			1,399.4				1,446.2				5,349.6				5,349.9
Cost of revenue:
Game intangibles			474.7				669.6				1,301.1				1,169.7
Product costs			210.7				188.0				756.6				714.0
Software development costs and royalties			88.2				186.1				346.7				435.1
Licenses			78.6				74.8				305.8				306.9
Internal royalties			78.1				104.5				397.6				438.9
Cost of revenue			930.3				1,223.0				3,107.8				3,064.6
Gross profit			469.1				223.2				2,241.8				2,285.3
Selling and marketing			448.8				423.4				1,550.2				1,586.5
Research and development			245.5				232.4				948.2				887.6
General and administrative			175.0				218.9				716.1				839.5
Depreciation and amortization			42.9				36.3				171.2				122.3
Goodwill impairment			2,176.7				—				2,342.1				—
Business reorganization			93.3				14.6				104.6				14.6
Total operating expenses			3,182.2				925.6				5,832.4				3,450.5
(Loss) income from operations			(2,713.1	)			(702.4	)			(3,590.6	)			(1,165.2	)
Interest and other, net			(24.6	)			(33.8	)			(103.6	)			(141.9	)
(Loss) gain on fair value adjustments, net			(6.9	)			5.6				(8.6	)			(31.0	)
(Loss) income before income taxes			(2,744.6	)			(730.6	)			(3,702.8	)			(1,338.1	)
Provision for (benefit from) income taxes			158.4				(120.3	)			41.4				(213.4	)
Net (loss) income		$	(2,903.0	)		$	(610.3	)		$	(3,744.2	)		$	(1,124.7	)
Loss per share:
Basic and diluted loss per share		$	(17.02	)		$	(3.62	)		$	(22.01	)		$	(7.03	)
Weighted average shares outstanding
Basic			170.6				168.7				170.1				159.9

TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
	March 31, 2024				March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	754.0			$	827.4
Short-term investments		22.0				187.0
Restricted cash and cash equivalents		252.1				307.6
Accounts receivable, net of allowances of $1.2 and $1.3 at March 31, 2024 and 2023, respectively		679.7				763.2
Software development costs and licenses		88.3				65.9
Contract assets		85.0				79.9
Prepaid expenses and other		378.6				277.1
Total current assets		2,259.7				2,508.1
Fixed assets, net		411.1				402.8
Right-of-use assets		325.7				282.7
Software development costs and licenses, net of current portion		1,446.5				1,072.2
Goodwill		4,426.4				6,767.1
Other intangibles, net		3,060.6				4,453.2
Deferred tax assets		1.9				44.8
Long-term restricted cash and cash equivalents		95.9				99.6
Other assets		189.1				231.6
Total assets	$	12,216.9			$	15,862.1
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	195.9			$	140.1
Accrued expenses and other current liabilities		1,062.6				1,225.7
Deferred revenue		1,059.5				1,078.8
Lease liabilities		63.8				60.2
Short-term debt, net		24.6				1,346.8
Total current liabilities		2,406.4				3,851.6
Long-term debt, net		3,058.3				1,733.0
Non-current deferred revenue		42.9				35.5
Non-current lease liabilities		387.3				347.0
Non-current software development royalties		102.1				110.2
Deferred tax liabilities, net		340.9				534.0
Other long-term liabilities		211.1				208.3
Total liabilities	$	6,549.0			$	6,819.6
Stockholders' equity:
Preferred stock, $0.01 par value, 5.0 shares authorized: no shares issued and outstanding at March 31, 2024 and 2023		—				—
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 194.5 and 192.6 shares issued and 170.8 and 168.9 outstanding at March 31, 2024 and 2023, respectively		1.9				1.9
Additional paid-in capital		9,371.6				9,010.2
Treasury stock, at cost; 23.7 and 23.7 common shares at March 31, 2024 and 2023, respectively		(1,020.6	)			(1,020.6	)
(Accumulated Deficit) / Retained earnings		(2,579.9	)			1,164.3
Accumulated other comprehensive loss		(105.1	)			(113.3	)
Total stockholders' equity	$	5,667.9			$	9,042.5
Total liabilities and stockholders' equity	$	12,216.9			$	15,862.1

TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
		Twelve Months Ended March 31,
			2024				2023
Operating activities:
Net (loss) income		$	(3,744.2	)		$	(1,124.7	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Amortization and impairment of software development costs and licenses			292.7				268.3
Stock-based compensation			335.6				317.8
Noncash lease expense			61.1				81.7
Amortization and impairment of intangibles			1,418.9				1,506.7
Depreciation			135.5				90.3
Goodwill impairment			2,342.1				—
Interest expense			140.6				122.7
Deferred income taxes			(150.4	)			(410.8	)
Fair value adjustments			8.6				31.5
Other, net			30.5				(26.6	)
Changes in assets and liabilities, net of effect from purchases of businesses:
Accounts receivable			83.7				106.8
Software development costs and licenses			(603.4	)			(492.8	)
Prepaid expenses, other current and other non-current assets			(154.7	)			77.2
Deferred revenue			(11.8	)			(141.9	)
Accounts payable, accrued expenses and other liabilities			(200.9	)			(405.1	)
Net cash (used in) provided by operating activities			(16.1	)			1.1
Investing activities:
Change in bank time deposits			19.8				100.0
Sale and maturities of available-for-sale securities			146.9				542.0
Purchases of available-for-sale securities			—				—
Purchases of fixed assets			(141.7	)			(204.2	)
Proceeds from sale of long-term investments			—				20.6
Purchase of long-term investments			(18.5	)			(15.7	)
Business acquisitions			(18.1	)			(3,310.9	)
Other			(16.6	)			(8.1	)
Net cash (used in) provided by investing activities			(28.2	)			(2,876.3	)
Financing activities:
Tax payment related to net share settlements on restricted stock awards			(94.1	)			(108.1	)
Repurchase of common stock			—				—
Issuance of common stock			39.4				65.4
Cost of debt			(10.3	)			(22.4	)
Repayment of debt			(1,339.6	)			(200.0	)
Settlement of capped calls			—				140.1
Payment for settlement of convertible notes			—				(1,166.8	)
Proceeds from issuance of debt			1,348.9				3,248.9
Payment of contingent earn-out consideration			(35.7	)			(26.8	)
Net cash (used in) provided by financing activities			(91.4	)			1,930.3
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents			3.1				(15.9	)
Net change in cash, cash equivalents, and restricted cash and cash equivalents			(132.6	)			(960.8	)
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1)			1,234.6				2,195.4
Cash, cash equivalents, and restricted cash equivalents, end of year (1)		$	1,102.0			$	1,234.6

(1)	Cash, cash equivalents and restricted cash and cash equivalents shown on our Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Consolidated Balance Sheet.

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix
(in millions)
		Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
		Amount			% of total			Amount			% of total
Net revenue by geographic region
United States		$	861.4		62	%		$	947.4		66	%
International			538.0		38	%			498.8		34	%
Total Net revenue		$	1,399.4		100	%		$	1,446.2		100	%
Net Bookings by geographic region
United States		$	818.8		61	%		$	860.8		62	%
International			530.0		39	%			532.6		38	%
Total Net Bookings		$	1,348.8		100	%		$	1,393.4		100	%
		Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
		Amount			% of total			Amount			% of total
Net revenue by distribution channel
Digital online		$	1,335.2		95	%		$	1,392.0		96	%
Physical retail and other			64.2		5	%			54.2		4	%
Total Net revenue		$	1,399.4		100	%		$	1,446.2		100	%
Net Bookings by distribution channel
Digital online		$	1,291.6		96	%		$	1,348.3		97	%
Physical retail and other			57.2		4	%			45.1		3	%
Total Net Bookings		$	1,348.8		100	%		$	1,393.4		100	%
		Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
		Amount			% of total			Amount			% of total
Net revenue by platform
Mobile		$	715.1		51	%		$	717.7		50	%
Console			568.7		41	%			583.3		40	%
PC and other			115.6		8	%			145.2		10	%
Total Net revenue		$	1,399.4		100	%		$	1,446.2		100	%
Net Bookings by platform
Mobile		$	708.3		53	%		$	706.2		51	%
Console			527.4		39	%			535.1		38	%
PC and other			113.1		8	%			152.1		11	%
Total Net Bookings		$	1,348.8		100.0	%		$	1,393.4		100	%

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix
(in millions)
		Twelve Months Ended March 31, 2024						Twelve Months Ended March 31, 2023
		Amount			% of total			Amount			% of total
Net revenue by geographic region
United States		$	3,279.2		61	%		$	3,360.0		63	%
International			2,070.4		39	%			1,989.9		37	%
Total Net revenue		$	5,349.6		100	%		$	5,349.9		100	%
Net Bookings by geographic region
United States		$	3,247.4		61	%		$	3,303.3		63	%
International			2,085.6		39	%			1,980.3		37	%
Total Net Bookings		$	5,333.0		100	%		$	5,283.6		100	%
		Twelve Months Ended March 31, 2024						Twelve Months Ended March 31, 2023
		Amount			% of total			Amount			% of total
Net revenue by distribution channel
Digital online		$	5,112.2		96	%		$	5,085.7		95	%
Physical retail and other			237.4		4	%			264.2		5	%
Total Net revenue		$	5,349.6		100	%		$	5,349.9		100	%
Net Bookings by distribution channel
Digital online		$	5,097.3		96	%		$	5,033.4		95	%
Physical retail and other			235.7		4	%			250.2		5	%
Total Net Bookings		$	5,333.0		100	%		$	5,283.6		100	%
		Twelve Months Ended March 31, 2024						Twelve Months Ended March 31, 2023
		Amount			% of total			Amount			% of total
Net revenue by platform
Mobile		$	2,748.0		51	%		$	2,538.6		47	%
Console			2,167.3		41	%			2,303.8		43	%
PC and other			434.3		8	%			507.5		10	%
Total Net revenue		$	5,349.6		100	%		$	5,349.9		100	%
Net Bookings by platform
Mobile		$	2,757.7		52	%		$	2,502.0		47	%
Console			2,149.8		40	%			2,257.6		43	%
PC and other			425.5		8	%			524.0		10	%
Total Net Bookings		$	5,333.0		100.0	%		$	5,283.6		100	%

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Three Months Ended March 31, 2024	Net revenue				Cost of revenue - Game intangibles				Cost of revenue- Product costs				Cost of revenue- Software development costs and royalties				Cost of revenue- Licenses				Cost of revenue- Internal royalties				Selling and marketing
As reported	$	1,399.4			$	474.7			$	210.7			$	88.2			$	78.6			$	78.1			$	448.8
Net effect from deferred revenue and related cost of revenue		(50.7	)							(0.3	)			(1.7	)			(1.4	)
Stock-based compensation														(3.9	)											(22.5	)
Amortization and impairment of acquired intangibles						(474.7	)			(1.6	)															(1.6	)
Three Months Ended March 31, 2024	General and administrative				Research and development				Depreciation and amortization				Goodwill impairment				Business reorganization				Interest and other, net				(Loss) gain on fair value adjustments, net
As reported	$	175.0			$	245.5			$	42.9			$	2,176.7			$	93.3			$	(24.6	)		$	(6.9	)
Net effect from deferred revenue and related cost of revenue																						2.0
Stock-based compensation		(29.2	)			(25.0	)
Amortization and impairment of acquired intangibles						(7.2	)			(8.9	)
Acquisition related expenses		12.5				(0.5	)							(2,176.7	)							1.9				3.3
Impact of business reorganization																		(93.3	)
Other																						6.8				3.4
Three Months Ended March 31, 2023	Net revenue				Cost of revenue - Game intangibles				Cost of revenue - Product costs				Cost of revenue- Software development costs and royalties				Cost of revenue- Licenses				Cost of revenue- Internal royalties				Selling and marketing
As reported	$	1,446.2			$	669.6			$	188.0			$	186.1			$	74.8			$	104.5			$	423.4
Net effect from deferred revenue and related cost of revenue		(52.7	)							(1.9	)			1.7				(0.4	)
Stock-based compensation														(7.5	)											(19.0	)
Amortization and impairment of acquired intangibles						(669.6	)																			(80.6	)
Three Months Ended March 31, 2023	General and administrative				Research and development				Depreciation and amortization				Business reorganization				Interest and other, net				(Loss) gain on fair value adjustments, net
As reported	$	218.9			$	232.4			$	36.3			$	14.6			$	(33.8	)		$	5.6
Net effect from deferred revenue and related cost of revenue																		(0.6	)
Stock-based compensation		(24.9	)			(27.9	)
Amortization and impairment of acquired intangibles						(7.2	)			(9.4	)
Acquisition related expenses		(46.3	)			(2.2	)											1.9				(5.6	)
Impact of business reorganization														(14.6	)

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Twelve Months Ended March 31, 2024	Net revenue				Cost of revenue - Game intangibles				Cost of revenue - Product costs				Cost of revenue- Software development costs and royalties				Cost of revenue- Licenses				Cost of revenue- Internal royalties				Selling and marketing
As reported	$	5,349.6			$	1,301.1			$	756.6			$	346.7			$	305.8			$	397.6			$	1,550.2
Net effect from deferred revenue and related cost of revenue		(16.7	)							0.6				1.2				(1.8	)
Stock-based compensation														(24.4	)											(95.3	)
Amortization and impairment of acquired intangibles						(1,301.1	)			(2.4	)															(51.0	)
Acquisition related expenses																		10.0								(0.2	)
Twelve Months Ended March 31, 2024	General and administrative				Research and development				Depreciation and amortization				Goodwill impairment				Business reorganization				Interest and other, net				(Loss) gain on fair value adjustments, net
As reported	$	716.1			$	948.2			$	171.2			$	2,342.1			$	104.6			$	(103.6	)		$	(8.6	)
Net effect from deferred revenue and related cost of revenue																						2.0
Stock-based compensation		(111.5	)			(104.4	)
Amortization and impairment of acquired intangibles						(28.7	)			(35.7	)			(2,342.1	)
Acquisition related expenses		(4.6	)			(3.5	)			(1.4	)											0.5				6.4
Impact of business reorganization																		(104.6	)
Other																						26.7				1.9
Twelve Months Ended March 31, 2023	Net revenue				Cost of revenue - Game intangibles				Cost of revenue - Product costs				Cost of goods revenue- Software development costs and royalties				Cost of revenue - Licenses				Cost of revenue - Internal royalties				Selling and marketing
As reported	$	5,349.9			$	1,169.7			$	714.0				435.1			$	306.9			$	438.9			$	1,586.5
Net effect from deferred revenue and related cost of revenue		(66.4	)							(2.2	)			14.6				2.1
Stock-based compensation														9.5												(95.2	)
Amortization and impairment of acquired intangibles						(1,169.7	)																			(277.1	)
Acquisition related expenses																										(8.0	)
Twelve Months Ended March 31, 2023	General and administrative				Research and development				Depreciation and amortization				Business reorganization				Interest and other, net				(Loss) gain on fair value adjustments, net
As reported	$	839.5			$	887.6			$	122.3			$	14.6			$	(141.9	)		$	(31.0	)
Net effect from deferred revenue and related cost of revenue																		0.7
Stock-based compensation		(115.5	)			(116.6	)
Amortization and impairment of acquired intangibles						(24.6	)			(33.5	)
Acquisition related expenses		(187.0	)			(17.4	)											26.3				31.0
Impact of business reorganization														(14.6	)

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURE
(in millions)
		Twelve Months Ended March 31,
			2024				2023
Net cash from operating activities		$	(16.1	)		$	1.1
Net change in Restricted cash (1)			58.1				54.6
Adjusted Unrestricted Operating Cash Flow		$	42.0			$	55.7
		Twelve Months Ended March 31,
			2024				2023
Restricted cash beginning of period		$	407.2			$	463.3
Restricted cash end of period			348.0				407.2
Restricted cash related to acquisitions			1.1				1.5
(1) Net change in Restricted cash		$	58.1			$	54.6

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURE
(in millions)
		Three Months Ended March 31,								Twelve Months Ended March 31,
			2024				2023				2024				2023
Net (loss) income		$	(2,903.0	)		$	(610.3	)		$	(3,744.2	)		$	(1,124.7	)
Provision for (benefit from) income taxes			158.4				(120.3	)			41.4				(213.4	)
Interest expense (income)			20.3				23.9				78.3				95.8
Depreciation and amortization			42.9				36.3				171.2				122.3
Amortization and impairment of acquired intangibles			485.1				757.4				1,383.2				1471.4
Goodwill impairment			2,176.7				—				2,342.1				—
EBITDA		$	(19.6	)		$	87.0			$	272.0			$	351.4

Outlook
		Fiscal Year Ending March 31, 2025
Net loss		$(674) to $(606)
Provision for income taxes		$143 to $129
Interest expense		$100
Depreciation		$150
Amortization of acquired intangibles		$710
EBITDA		$429 to $483

Outlook
		Three Months Ended June 30, 2024
Net loss		$(272) to $(245)
Provision for income taxes		$58 to $52
Interest expense		$25
Depreciation		$36
Amortization of acquired intangibles		$179
EBITDA		$26 to $47

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516922240/en/

(Investor Relations)

Nicole Shevins

Senior Vice President

Investor Relations & Corporate Communications

Take-Two Interactive Software, Inc.

(646) 536-3005

Nicole.Shevins@take2games.com

(Corporate Press)

Alan Lewis

Vice President

Corporate Communications & Public Affairs

Take-Two Interactive Software, Inc.

(646) 536-2983

Alan.Lewis@take2games.com

Source: Take-Two Interactive

FAQ

What were Take-Two Interactive's Q4 2024 net bookings?

Take-Two Interactive reported Q4 2024 net bookings of $1.35 billion, driven by strong performance from NBA 2K24 and key franchises.

How did Take-Two Interactive's fiscal year 2024 net bookings compare to the previous year?

Take-Two Interactive's fiscal year 2024 net bookings increased by 1% to $5.33 billion compared to the previous year.

What is the projected net bookings range for Take-Two Interactive in fiscal year 2025?

Take-Two Interactive projects net bookings for fiscal year 2025 to be between $5.55 billion and $5.65 billion.

What was the main driver of Take-Two Interactive's Q4 2024 net loss?

The main driver of Take-Two Interactive's Q4 2024 net loss was significant impairment charges related to goodwill and acquisition-related intangible assets.

How did recurrent consumer spending affect Take-Two Interactive's Q4 2024 results?

Recurrent consumer spending decreased by 2% in Q4 2024, accounting for 79% of total net bookings, which impacted the overall financial performance.

When is the expected release of Grand Theft Auto VI, and how is it anticipated to impact Take-Two Interactive's financials?

Grand Theft Auto VI is expected to be released in Fall 2025, with anticipated significant commercial impact boosting Take-Two Interactive's future financial performance.