Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal Year 2021

Rhea-AI Summary

Take-Two Interactive Software reported strong fourth quarter and fiscal year 2021 results, with GAAP net revenue rising 10% to $839.4 million. Recurrent consumer spending surged 38%, contributing 67% to total revenue. Digitally-delivered revenue grew 19% to $753.3 million, accounting for 90% of total revenue. GAAP net income increased 78% to $218.8 million, or $1.88 per diluted share. The impressive performance was driven by major titles like NBA 2K21, Grand Theft Auto Online, and Red Dead Redemption 2.

Positive

• GAAP net revenue increased 10% to $839.4 million.
• Recurrent consumer spending rose 38%, accounting for 67% of total revenue.
• Digitally-delivered revenue grew 19% to $753.3 million, representing 90% of total revenue.
• GAAP net income jumped 78% to $218.8 million, or $1.88 per diluted share.

Negative

• None.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported strong results for its fourth quarter and fiscal year 2021, ended March 31, 2021, and provided its initial outlook for its fiscal year 2022, ending March 31, 2022 and fiscal first quarter 2022, ending June 30, 2021.

Fiscal Fourth Quarter 2021 Financial Highlights

GAAP net revenue grew 10% to $839.4 million, as compared to $760.5 million in last year’s fiscal fourth quarter. Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content and in-game purchases) increased 38% and accounted for 67% of total GAAP net revenue. The largest contributors to GAAP net revenue in fiscal fourth quarter 2021 were NBA® 2K21 and NBA 2K20, Grand Theft Auto® Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, Social Point’s mobile games, Sid Meier’s Civilization® VI, Borderlands 3, and NBA Online.

Digitally-delivered GAAP net revenue grew 19% to $753.3 million, as compared to $634.7 million in last year’s fiscal fourth quarter, and accounted for 90% of total GAAP net revenue. The largest contributors to digitally-delivered GAAP net revenue in fiscal fourth quarter 2021 were NBA 2K21 and NBA 2K20, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, Social Point’s mobile games, Sid Meier’s Civilization VI, Borderlands 3, and NBA Online.

GAAP net income grew 78% to $218.8 million, or $1.88 per diluted share, as compared to $122.7 million, or $1.07 per diluted share, for the year-ago period. GAAP net income included the reversal of expense of approximately $69.5 million related to forfeitures of previously granted stock awards.

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

Three Months Ended March 31, 2021

Financial Data

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Statement of operations

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FAQ

What were the financial highlights for Take-Two Interactive in Q4 2021?

Take-Two reported a 10% increase in GAAP net revenue to $839.4 million, with net income rising 78% to $218.8 million.

How did recurrent consumer spending perform for Take-Two in Q4 2021?

Recurrent consumer spending increased by 38%, contributing 67% of total GAAP net revenue.

What is the outlook for Take-Two Interactive for FY 2022?

Take-Two provided its initial outlook for fiscal year 2022, ending March 31, 2022, but specific figures were not disclosed in the PR.

Which games contributed significantly to Take-Two's revenue in Q4 2021?

Significant contributors included NBA 2K21, Grand Theft Auto Online, and Red Dead Redemption 2.