GAAP net revenue was $480.8 million
GAAP net income was $0.21 per diluted share
Net cash provided by operating activities was $203.0 million
Net Bookings were $653.9 million
Company deployed $110.1 million to repurchase 1.06 million shares of
common stock
NEW YORK--(BUSINESS WIRE)--Feb. 7, 2018--
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results
for its fiscal third quarter 2018, ended December 31, 2017. In addition,
the Company provided its initial financial outlook for its fiscal fourth
quarter ending March 31, 2018, and updated its financial outlook for its
fiscal year ending March 31, 2018.
Fiscal Third Quarter 2018 GAAP Financial
Highlights
Net revenue grew to $480.8 million, as compared to $476.5 million in
last year’s fiscal third quarter. Recurrent consumer spending (virtual
currency, add-on content and microtransactions) grew 64% year-over-year
and accounted for 32% of total net revenue. The largest contributors to
net revenue in fiscal third quarter 2018 were Grand Theft Auto® V
and Grand Theft Auto Online, NBA® 2K18, WWE® 2K18
and WWE SuperCard, and L.A. Noire.
Digitally-delivered net revenue grew 8% to $258.4 million, as compared
to $240.2 million in last year’s fiscal third quarter, and accounted for
54% of total net revenue. The largest contributors to
digitally-delivered net revenue in fiscal third quarter 2018 were Grand
Theft Auto Online and Grand Theft Auto V, NBA 2K18, WWE
2K18 and WWE SuperCard, and Sid Meier’s Civilization VI.
Net income increased to $25.1 million, or $0.21 per diluted share, as
compared to net loss of $29.8 million, or $0.33 per diluted share, for
the comparable period last year. Net income reflects $11.9 million of
incremental income tax expense, or approximately $0.10 per diluted
share, due to the application of the Tax Cuts and Jobs Act, enacted on
December 22, 2017. This amount is a reasonable estimate provided in
accordance with Securities and Exchange Commission guidance. We will
provide additional information about such estimate in our forthcoming
Form 10-Q for the fiscal quarter ended December 31, 2017.
Net cash provided by operating activities was $203.0 million. As of
December 31, 2017, the Company had cash and short-term investments of
$1.322 billion.
The following data, together with a management reporting tax rate of
22%, 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 December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
$ in thousands
|
|
|
Statement
of
operations
|
|
|
Change in
deferred
net
revenue
and related
cost of
goods
sold
|
|
|
Stock-based
compensation
|
|
|
Non-cash
amounts
related to
convertible
notes
|
|
|
Amortization
& impairment
of
acquired
intangible
assets
|
|
|
Business
reorganization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$
|
480,840
|
|
|
173,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
267,983
|
|
|
37,647
|
|
|
8,262
|
|
|
|
|
|
|
(4,912
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
212,857
|
|
|
135,452
|
|
|
(8,262
|
)
|
|
|
|
|
|
4,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
204,005
|
|
|
|
|
|
(21,288
|
)
|
|
|
|
|
|
(4,258
|
)
|
|
|
(700
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
8,852
|
|
|
135,452
|
|
|
13,026
|
|
|
|
|
|
|
9,170
|
|
|
|
700
|
|
|
Interest and other, net
|
|
|
|
3,374
|
|
|
|
|
|
|
|
|
795
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
12,226
|
|
|
135,452
|
|
|
13,026
|
|
|
|
795
|
|
|
9,170
|
|
|
|
700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to calculate net income per diluted share for management
reporting purposes, the Company uses its fully diluted share count of
119.5 million and adds back to net income the interest expense, net of
tax, on its convertible notes of $0.01 million.
Operational Metric – Net Bookings
During fiscal third quarter 2018, total Net Bookings were $653.9
million, as compared to $744.8 million during last year’s fiscal third
quarter, which had benefitted from the launches of Mafia III and Sid
Meier’s Civilization VI. Net Bookings from recurrent consumer
spending grew 44% year-over-year and accounted for 40% of total Net
Bookings. The largest contributors to Net Bookings were Grand Theft
Auto Online and Grand Theft Auto V, NBA 2K18, WWE
2K18, L.A. Noire, and Dragon City and Monster
Legends.
Catalog accounted for $343.5 million of Net Bookings led by Grand
Theft Auto, and Dragon City and Monster Legends.
Digitally-delivered Net Bookings grew 6% to $379.7 million, as compared
to $357.4 million in last year’s fiscal third quarter, and accounted for
58% of total Net Bookings. The largest contributors to
digitally-delivered Net Bookings in fiscal third quarter 2018 were Grand
Theft Auto Online and Grand Theft Auto V, NBA 2K18, WWE
2K18 and WWE SuperCard, and Monster Legends and
Dragon City.
Management Comments
“During the holiday season, we benefited from high consumer demand for
our offerings, enabling our Company to deliver another quarter of both
strong Net Bookings and net cash provided by operating activities,” said
Strauss Zelnick, Chairman and CEO of Take-Two. “Our stellar results were
highlighted by record recurrent consumer spending on both Grand Theft
Auto Online and NBA 2K18, robust ongoing sales of Grand
Theft Auto V, and the successful launch of WWE 2K18. We took
advantage of favorable market conditions to deploy $110 million of cash
to repurchase more than 1 million shares of our stock. As a result of
our outstanding third quarter performance and increased fourth quarter
forecast, we are raising our fiscal 2018 outlook for Net Bookings.
“In addition to achieving superb results, we announced the formation
of Private Division, our new label that is dedicated to bringing titles
from top independent developers to market. Private Division already has
deals to publish several upcoming titles based on new IP from renowned
talent, and represents an exciting new growth opportunity that
complements Take-Two’s core business.
“Rockstar Games has announced that Red Dead Redemption 2 will
launch on October 26, 2018. We continue to expect to deliver both record
Net Bookings and record net cash provided by operating activities in
fiscal 2019, in excess of $2.5 billion and $700 million, respectively,
led by the launches of Red Dead Redemption 2 and a highly
anticipated new title from one of 2K’s biggest franchises. We have a
robust development pipeline and are better positioned than ever for
long-term growth and margin expansion.”
Business and Product Highlights
Since October 1, 2017:
-
Take-Two announced the formation of Private Division, a new publishing
label that focuses on bringing titles from top independent developers
to market. Private Division will publish several upcoming titles based
on new IP from renowned industry creative talent, including the
previously announced Ancestors: The Humankind Odyssey from Panache
Digital Games; an unannounced RPG currently codenamed Project
Wight from The Outsiders; an unannounced RPG from Obsidian
Entertainment; and an unannounced sci-fi first-person shooter from V1
Interactive. Private Division is also the publisher for Kerbal
Space Program, which Take-Two acquired in May 2017.
-
Take-Two deployed $110.1 million to repurchase 1.06 million shares of
its common stock.
-
Effective December 18, 2017, Take-Two was added to the NASDAQ-100
Index® (Nasdaq: NDX). The NASDAQ-100 Index is composed of the 100
largest non-financial companies listed on The NASDAQ Stock Market®.
Rockstar Games:
-
Released new versions of the blockbuster detective thriller, L.A.
Noire, for Nintendo Switch™, PlayStation®4 and Xbox One. These new
versions include the original L.A. Noire game plus all of its
additional downloadable content, with specific enhancements tailored
to the unique capabilities of each platform. Following these came the
release of LA Noire: The VR Case Files, featuring seven select
cases from the original game rebuilt specifically for a virtual
reality experience on the HTC VIVE™ system.
-
Released new free content updates for Grand Theft Auto Online,
including:
-
More themed content drops for Smuggler’s Run featuring:
-
The Mammoth Mogul aircraft and Stockpile, a new,
jet-fueled take on capture-the-flag.
-
Transform Races, a new form of Stunt Race where players switch
vehicle classes instantly mid-race across land, air and sea.
-
Special Halloween content including the Vigilante weaponized
vehicle, the Seabreeze aircraft and Condemned Adversary
Mode.
-
The Doomsday Heist, a story-driven online adventure
involving the planning, preparation and execution of a series of
epic co-operative heist missions and featuring a ton of new
vehicles and gear, inside the biggest Grand Theft Auto Online
update yet.
-
Festive Surprise 2017, which featured holiday-themed items
in stores across Los Santos, the Firework Launcher, as well as the
return of favorite items from past holiday seasons and more.
-
Released the Criminal Enterprise Starter Pack that gives
players access to a huge range of the most exciting and popular
additions to Grand Theft Auto Online, including properties,
vehicles, weapons and more valued at over GTA$10,000,000 plus
GTA$1,000,000 Bonus Cash.
-
Announced that Red Dead Redemption 2, which had been planned
for release during Spring 2018, will now launch on October 26, 2018 to
allow additional time to polish further the final product.
2K:
-
Released the Sid Meier’s Civilization VI: Khemer and Indonesia
Civilization and Scenario Pack bringing new challenges and
scenarios to Firaxis Games’ popular strategy series, and announced
that its Rise and Fall expansion pack for the title will launch
on February 8, 2018.
-
Launched WWE 2K18 for PlayStation 4, Xbox One, Nintendo Switch
and PC. Developed collaboratively by Yuke's and Visual Concepts, WWE
2K18 features Seth Rollins as its cover Superstar, along with the
largest playable roster in franchise history, new online-centric Road
to Glory mode, notable gameplay improvements, and a powerful new
graphics engine. WWE 2K18 has been supported with a series of
downloadable content, including a Season Pass.
-
Released WWE SuperCard – Season 4, the latest addition to the
Company’s action-packed collectible card-battling game, as a free
downloadable update for iOS and Android™ devices. Featuring 250 new
cards, three new card tiers, and much more, the WWE SuperCard series
– which has now been downloaded more than 16.5 million times to date –
delivers the best in competitive and engaging WWE action for mobile
devices.
-
Launched NHL® SuperCard 2K18, the foremost NHL collectible
card-battling game. Featuring cover athlete Kyle Turris, center for
the Nashville Predators, NHL SuperCard is available for
download free of charge for iOS and Android devices and offers more
than 450 cards, thrilling game modes, weekly events and more to bring
players on the ice and into the action.
Private Division:
-
Released Kerbal Space Program Enhanced Edition, the new console
version of the beloved space simulation game, for digital download on
PlayStation 4 and Xbox One. Kerbal Space Program Enhanced Edition
is built from the ground up to include re-worked and console-optimized
UI, a new control scheme exclusively for consoles, and more ways to
enjoy launching spaceships into orbit. As a thank you to the existing
console community, all owners of the prior console version of Kerbal
Space Program can redeem the Enhanced Edition for free.
Financial Outlook for Fiscal 2018
Take-Two is providing its initial financial outlook for its fiscal
fourth quarter ending March 31, 2018, and updating its financial outlook
for its fiscal year ending March 31, 2018, as follows:
Fourth Quarter Ending March 31, 2018
-
GAAP net revenue is expected to range from $460 to $510 million
-
GAAP net income is expected to range from $87 to $99 million
-
GAAP diluted net income per share is expected to range from $0.73 to
$0.83
-
Share count used to calculate GAAP diluted net income per share is
expected to be 118.8 million (1)
-
Net Bookings (operational metric) are expected to range from $410 to
$460 million
The Company is also providing selected data and its management reporting
tax rate of 22% that are used internally by its management and Board of
Directors to adjust the Company’s GAAP financial outlook in order to
facilitate comparison of its operating performance between periods and
to better understand its core business and future outlook:
|
|
|
|
Three Months Ending March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
|
|
$ in millions
|
|
|
GAAP
outlook (2)
|
|
|
Change in
deferred net
revenue and
related
cost of
goods sold
|
|
|
Stock-based
compensation (3)
|
|
|
Non-cash
amounts
related to
convertible
notes
|
|
|
Amortization
of acquired
intangible
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$460 to $510
|
|
|
($50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
$196 to $225
|
|
|
($20)
|
|
|
($6)
|
|
|
|
|
|
($4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
$190 to $200
|
|
|
|
|
|
($23)
|
|
|
|
|
|
($3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other, net
|
|
|
($3)
|
|
|
|
|
|
|
|
|
($0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
$77 to $88
|
|
|
($30)
|
|
|
$29
|
|
|
$0
|
|
|
$7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending March 31, 2018
As a result of its strong fiscal third quarter 2018 results and
increased outlook for the fiscal fourth quarter, Take-Two is raising its
fiscal year 2018 outlook for Net Bookings. In addition, the Company is
increasing its outlook for GAAP net revenue and GAAP net income.
-
GAAP net revenue is expected to range from $1.80 to $1.85 billion
-
GAAP net income is expected to range from $170 to $181 million
-
GAAP diluted net income per share is expected to range from $1.50 to
$1.60
-
Share count used to calculate GAAP diluted net income per share is
expected to be 113.2 million (4)
-
Net cash provided by operating activities is expected to be
approximately $300 million
-
Capital expenditures are expected to be approximately $60 million
-
Net Bookings (operational metric) are expected to range from $1.99 to
$2.04 billion
The Company is also providing selected data and its management reporting
tax rate of 22% that are used internally by its management and Board of
Directors to adjust the Company’s GAAP financial outlook in order to
facilitate comparison of its operating performance between periods and
to better understand its core business and future outlook:
|
|
|
|
Twelve Months Ending March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
|
|
$ in millions
|
|
|
GAAP
outlook (2)
|
|
|
Change in
deferred
net
revenue
and related
cost of
goods
sold
|
|
|
Stock-based
compensation (3)
|
|
|
Non-cash
amounts
related to
convertible
notes
|
|
|
Acquisition
related
expenses
|
|
|
Amortization &
impairment of
acquired
intangible
assets
|
|
|
Business
reorganization
excluding
stock-based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$1,803 to $1,853
|
|
|
$187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
$905 to $934
|
|
|
$11
|
|
|
($30)
|
|
|
|
|
|
|
|
|
($17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
$776 to $786
|
|
|
|
|
|
($93)(5)
|
|
|
|
|
|
$7
|
|
|
($27)
|
|
|
($13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other, net
|
|
|
$0
|
|
|
|
|
|
|
|
|
($10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
$123 to $133
|
|
|
$176
|
|
|
$123
|
|
|
$10
|
|
|
($7)
|
|
|
$44
|
|
|
$13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
|
For the fiscal fourth quarter ending March 31, 2018, the Company’s
fully diluted share count used for both GAAP and management
reporting purposes is expected to be 118.8 million, which includes
114.0 million basic shares, 4.1 million shares representing the
potential dilution from unvested employee stock grants, and 0.7
million shares representing the potential dilution from convertible
notes. For management reporting purposes, the interest expense, net
of tax, on the convertible notes, which is added back to net income
to calculate diluted net income per share is $0.03 million.
|
|
|
|
|
2)
|
|
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.
|
|
|
|
|
3)
|
|
The Company's stock-based compensation expense for the periods above
includes the cost of approximately 0.6 million restricted stock
units previously granted to ZelnickMedia that are subject to
variable accounting. Actual expense to be recorded in connection
with these shares is dependent upon several factors, including
future changes in Take-Two's stock price.
|
|
|
|
|
4)
|
|
For the fiscal year ending March 31, 2018, the Company’s fully
diluted share count used for management reporting purposes is
expected to be 118.0 million, which includes 110.1 million basic
shares, 3.1 million shares representing the potential dilution
from unvested employee stock grants, and 4.8 million shares
representing the potential dilution from convertible notes. The
interest expense, net of tax, on the convertible notes, which is
added back to net income to calculate diluted net income per share
for management reporting purposes is $0.83 million. Take-Two’s
GAAP net income per diluted share outlook is calculated using a
diluted share count of 113.2 million (basic shares plus unvested
employee stock grants ), because using the “if-converted” method
and the Company’s fully diluted share count of 118.0 million would
have been anti-dilutive.
|
|
|
|
|
5)
|
|
Includes $2.4 million of stock-based compensation related to
business reorganization.
|
|
|
|
|
|
|
|
Key assumptions and dependencies underlying the Company’s financial
outlook include: the timely delivery of the titles included in this
financial outlook; continued consumer acceptance of Xbox One and
PlayStation 4; the ability to develop and publish products that capture
market share for these new-generation systems while also leveraging
opportunities on Nintendo Switch, Xbox 360, PlayStation 3, PC and mobile
platforms; and stable foreign exchange rates. See also “Cautionary Note
Regarding Forward Looking Statements” below.
Product Releases
The following titles were released since October 1, 2017:
|
Label
|
|
|
Title
|
|
|
Platforms
|
|
|
Release Date
|
|
2K
|
|
|
NHL SuperCard 2K18
|
|
|
iOS, Android
|
|
|
October 4, 2017
|
|
2K
|
|
|
WWE 2K18
|
|
|
PS4, Xbox One
|
|
|
October 13, 2017
|
|
2K
|
|
|
NBA 2K18
|
|
|
Switch (physical)
|
|
|
October 17, 2017
|
|
2K
|
|
|
WWE 2K18
|
|
|
PC
|
|
|
October 17, 2017
|
|
2K
|
|
|
WWE 2K18: Accelerator (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
October 17, 2017
|
|
2K
|
|
|
WWE 2K18: MyPlayer Kickstarter (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
October 17, 2017
|
|
2K
|
|
|
Sid Meier’s Civilization VI: Khemer & Indonesia
Civilization/Scenario Pack (DLC)
|
|
|
PC
|
|
|
October 19, 2017
|
|
Rockstar Games
|
|
|
L.A. Noire
|
|
|
PS4, Xbox One, Switch
|
|
|
November 14, 2017
|
|
2K
|
|
|
Bioshock 10th Anniversary Collector’s
Edition
|
|
|
PS4, Xbox One
|
|
|
November 14, 2017
|
|
2K
|
|
|
Carnival Games VR: Alley Adventure (DLC)
|
|
|
PSVR, HTC Vive, Oculus Rift
|
|
|
November 14, 2017
|
|
2K
|
|
|
WWE SuperCard Season 4 (update)
|
|
|
iOS/Android
|
|
|
November 16, 2017
|
|
2K
|
|
|
WWE 2K18: NXT Generation Pack (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
November 21, 2017
|
|
2K
|
|
|
WWE 2K18
|
|
|
Switch
|
|
|
December 6, 2017
|
|
2K
|
|
|
WWE 2K18: New Moves Pack (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
December 12, 2017
|
|
Rockstar Games
|
|
|
L.A. Noire
|
|
|
HTC Vive
|
|
|
December 15, 2017
|
|
Private Division
|
|
|
Kerbal Space Program Enhanced Edition
|
|
|
PS4, Xbox One
|
|
|
January 16, 2018
|
|
2K
|
|
|
WWE 2K18: Enduring Icons Pack (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
January 16, 2018
|
|
|
|
Take-Two's lineup of future titles announced to date includes:
|
|
|
|
|
|
|
|
|
|
Label
|
|
|
Title
|
|
|
Platforms
|
|
|
Release Date
|
|
2K
|
|
|
Sid Meier’s Civilization VI: Rise and Fall (DLC)
|
|
|
PC
|
|
|
February 8, 2018
|
|
Private Division
|
|
|
Kerbal Space Program: Making History Expansion
|
|
|
PC
|
|
|
March 13, 2018
|
|
Rockstar Games
|
|
|
Red Dead Redemption 2
|
|
|
PS4, Xbox One
|
|
|
October 26, 2018
|
|
|
|
|
|
|
|
|
|
|
|
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.
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 December 31, 2017.
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. The Company develops and publishes
products principally through its wholly-owned labels Rockstar Games and
2K, as well as its new Private Division label and Social Point, a
leading developer of mobile games. Our products are designed for console
systems and personal computers, including smartphones and tablets, and
are delivered through physical retail, digital download, online
platforms and cloud streaming services. The Company’s common stock is
publicly traded on NASDAQ under the symbol TTWO. For more corporate and
product information please visit our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their
respective holders.
Cautionary Note Regarding Forward-Looking
Statements
The 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: our
dependence on key management and product development personnel, our
dependence on our Grand Theft Auto products and our ability to
develop other hit titles, the timely release and significant market
acceptance of our games, the ability to maintain acceptable pricing
levels on our games, and risks associated with international operations.
Other important factors and information are contained in the Company's
most recent Annual Report on Form 10-K, including the risks summarized
in the section entitled "Risk Factors," the Company’s most recent
Quarterly Report on Form 10-Q, and the Company's other periodic filings
with the SEC, which can be accessed at www.take2games.com.
All forward-looking statements are qualified by these cautionary
statements and apply only as of the date they are made. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$
|
480,840
|
|
|
$
|
476,473
|
|
|
$
|
1,342,618
|
|
|
$
|
1,208,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold:
|
|
|
|
|
|
|
|
|
|
|
Internal royalties
|
|
|
|
112,996
|
|
|
|
103,613
|
|
|
|
294,749
|
|
|
|
240,711
|
|
|
Software development costs and royalties
|
|
|
|
54,008
|
|
|
|
109,900
|
|
|
|
164,419
|
|
|
|
218,753
|
|
|
Product costs
|
|
|
|
69,492
|
|
|
|
70,089
|
|
|
|
156,124
|
|
|
|
170,127
|
|
|
Licenses
|
|
|
|
31,487
|
|
|
|
27,472
|
|
|
|
93,808
|
|
|
|
78,468
|
|
|
Total cost of goods sold
|
|
|
|
267,983
|
|
|
|
311,074
|
|
|
|
709,100
|
|
|
|
708,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
212,857
|
|
|
|
165,399
|
|
|
|
633,518
|
|
|
|
500,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
|
79,513
|
|
|
|
95,820
|
|
|
|
208,641
|
|
|
|
247,141
|
|
|
General and administrative
|
|
|
|
65,951
|
|
|
|
52,939
|
|
|
|
187,378
|
|
|
|
149,367
|
|
|
Research and development
|
|
|
|
49,977
|
|
|
|
37,589
|
|
|
|
142,245
|
|
|
|
101,494
|
|
|
Depreciation and amortization
|
|
|
|
7,864
|
|
|
|
7,460
|
|
|
|
34,490
|
|
|
|
22,329
|
|
|
Business reorganization
|
|
|
|
700
|
|
|
|
-
|
|
|
|
13,012
|
|
|
|
-
|
|
|
Total operating expenses
|
|
|
|
204,005
|
|
|
|
193,808
|
|
|
|
585,766
|
|
|
|
520,331
|
|
|
Income (loss) from operations
|
|
|
|
8,852
|
|
|
|
(28,409
|
)
|
|
|
47,752
|
|
|
|
(20,198
|
)
|
|
Interest and other, net
|
|
|
|
3,374
|
|
|
|
(3,715
|
)
|
|
|
(2,403
|
)
|
|
|
(15,298
|
)
|
|
Gain on long-term investments, net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,350
|
|
|
Income (loss) before income taxes
|
|
|
|
12,226
|
|
|
|
(32,124
|
)
|
|
|
45,349
|
|
|
|
(34,146
|
)
|
|
Benefit from income taxes
|
|
|
|
(12,914
|
)
|
|
|
(2,282
|
)
|
|
|
(37,331
|
)
|
|
|
(2,169
|
)
|
|
Net income (loss)
|
|
|
$
|
25,140
|
|
|
$
|
(29,842
|
)
|
|
$
|
82,680
|
|
|
$
|
(31,977
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
$
|
0.22
|
|
|
$
|
(0.33
|
)
|
|
$
|
0.76
|
|
|
$
|
(0.37
|
)
|
|
Diluted earnings (loss) per share
|
|
|
$
|
0.21
|
|
|
$
|
(0.33
|
)
|
|
$
|
0.74
|
|
|
$
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
113,991
|
|
|
|
90,428
|
|
|
|
109,010
|
|
|
|
86,796
|
|
|
Diluted
|
|
|
|
117,918
|
|
|
|
90,428
|
|
|
|
111,440
|
|
|
|
86,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Basic EPS:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
25,140
|
|
|
$
|
(29,842
|
)
|
|
$
|
82,680
|
|
|
$
|
(31,977
|
)
|
|
Less: net income allocated to participating securities
|
|
|
|
(62
|
)
|
|
|
-
|
|
|
|
(487
|
)
|
|
|
-
|
|
|
Net loss for basic and diluted EPS calculation
|
|
|
$
|
25,078
|
|
|
$
|
(29,842
|
)
|
|
$
|
82,193
|
|
|
$
|
(31,977
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
|
113,991
|
|
|
|
90,428
|
|
|
|
109,010
|
|
|
|
86,796
|
|
|
Less: weighted average participating shares outstanding
|
|
|
|
(279
|
)
|
|
|
-
|
|
|
|
(278
|
)
|
|
|
-
|
|
|
Weighted average common shares outstanding - basic
|
|
|
|
113,712
|
|
|
|
90,428
|
|
|
|
108,732
|
|
|
|
86,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
$
|
0.22
|
|
|
$
|
(0.33
|
)
|
|
$
|
0.76
|
|
|
$
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Diluted EPS:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
25,140
|
|
|
$
|
(29,842
|
)
|
|
$
|
82,680
|
|
|
$
|
(31,977
|
)
|
|
Less: net income allocated to participating securities
|
|
|
|
(59
|
)
|
|
|
-
|
|
|
|
(206
|
)
|
|
|
-
|
|
|
Net income (loss) for diluted EPS calculation
|
|
|
$
|
25,081
|
|
|
$
|
(29,842
|
)
|
|
$
|
82,474
|
|
|
$
|
(31,977
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
|
|
|
|
113,712
|
|
|
|
90,428
|
|
|
|
108,732
|
|
|
|
86,796
|
|
|
Add: dilutive effect of common stock equivalents
|
|
|
|
4,206
|
|
|
|
-
|
|
|
|
2,708
|
|
|
|
-
|
|
|
Total weighted average shares outstanding - diluted
|
|
|
|
117,918
|
|
|
|
90,428
|
|
|
|
111,440
|
|
|
|
86,796
|
|
|
Less: weighted average participating shares outstanding
|
|
|
|
(279
|
)
|
|
|
-
|
|
|
|
(278
|
)
|
|
|
-
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
|
117,639
|
|
|
|
90,428
|
|
|
|
111,162
|
|
|
|
86,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
|
$
|
0.21
|
|
|
$
|
(0.33
|
)
|
|
$
|
0.74
|
|
|
$
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
March 31,
|
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
774,455
|
|
|
$
|
943,396
|
|
|
Short-term investments
|
|
|
547,329
|
|
|
|
448,932
|
|
|
Restricted cash
|
|
|
374,806
|
|
|
|
337,818
|
|
|
Accounts receivable, net of allowances of $67,685 and $66,483 at
December 31, 2017 and March 31, 2017 respectively
|
|
|
425,931
|
|
|
|
219,558
|
|
|
Inventory
|
|
|
30,857
|
|
|
|
16,323
|
|
|
Software development costs and licenses
|
|
|
39,369
|
|
|
|
41,721
|
|
|
Deferred cost of goods sold
|
|
|
164,112
|
|
|
|
127,901
|
|
|
Prepaid expenses and other
|
|
|
90,865
|
|
|
|
59,593
|
|
|
Total current assets
|
|
|
2,447,724
|
|
|
|
2,195,242
|
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
96,570
|
|
|
|
67,300
|
|
|
Software development costs and licenses, net of current portion
|
|
|
586,866
|
|
|
|
381,910
|
|
|
Goodwill
|
|
|
389,728
|
|
|
|
359,115
|
|
|
Other intangibles, net
|
|
|
108,112
|
|
|
|
110,262
|
|
|
Other assets
|
|
|
53,610
|
|
|
|
35,325
|
|
|
Total assets
|
|
$
|
3,682,610
|
|
|
$
|
3,149,154
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
45,998
|
|
|
$
|
31,892
|
|
|
Accrued expenses and other current liabilities
|
|
|
907,345
|
|
|
|
750,875
|
|
|
Deferred revenue
|
|
|
1,118,774
|
|
|
|
903,125
|
|
|
Total current liabilities
|
|
|
2,072,117
|
|
|
|
1,685,892
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
13,838
|
|
|
|
251,929
|
|
|
Non-current deferred revenue
|
|
|
44,501
|
|
|
|
10,406
|
|
|
Other long-term liabilities
|
|
|
151,334
|
|
|
|
197,199
|
|
|
Total liabilities
|
|
|
2,281,790
|
|
|
|
2,145,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock, $.01 par value, 5,000 shares authorized
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, $.01 par value, 200,000 shares authorized; 132,581 and
119,813 shares
|
|
|
|
|
|
issued and 114,325 and 102,621 outstanding at December 31, 2017 and
March 31, 2017, respectively
|
|
|
1,326
|
|
|
|
1,198
|
|
|
Additional paid-in capital
|
|
|
1,861,424
|
|
|
|
1,452,754
|
|
|
Treasury stock, at cost; 18,256 and 17,192 common shares at December
31, 2017 and March 31, 2017, respectively
|
|
|
(413,524
|
)
|
|
|
(303,388
|
)
|
|
Accumulated deficit
|
|
|
(17,311
|
)
|
|
|
(99,694
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(31,095
|
)
|
|
|
(47,142
|
)
|
|
Total stockholders' equity
|
|
|
1,400,820
|
|
|
|
1,003,728
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,682,610
|
|
|
$
|
3,149,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
|
|
Nine Months Ended December 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
Net income (loss)
|
|
$
|
82,680
|
|
|
$
|
(31,977
|
)
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Amortization and impairment of software development costs and
licenses
|
|
|
62,235
|
|
|
|
130,019
|
|
|
Depreciation
|
|
|
23,233
|
|
|
|
22,329
|
|
|
Amortization and impairment of intellectual property
|
|
|
26,470
|
|
|
|
1,398
|
|
|
Impairment of in-process research and development
|
|
|
11,257
|
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
96,111
|
|
|
|
55,421
|
|
|
Amortization of discount on Convertible Notes
|
|
|
15,424
|
|
|
|
17,870
|
|
|
Gain on conversions of Convertible Notes
|
|
|
(4,855
|
)
|
|
|
-
|
|
|
Amortization of debt issuance costs
|
|
|
554
|
|
|
|
1,078
|
|
|
Other, net
|
|
|
3,432
|
|
|
|
(3,604
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Restricted cash
|
|
|
(36,988
|
)
|
|
|
(17,372
|
)
|
|
Accounts receivable
|
|
|
(206,084
|
)
|
|
|
(160,095
|
)
|
|
Inventory
|
|
|
(12,976
|
)
|
|
|
(15,876
|
)
|
|
Software development costs and licenses
|
|
|
(186,373
|
)
|
|
|
(194,422
|
)
|
|
Prepaid expenses and other assets
|
|
|
(39,133
|
)
|
|
|
(31,460
|
)
|
|
Deferred revenue
|
|
|
238,590
|
|
|
|
302,728
|
|
|
Deferred cost of goods sold
|
|
|
(33,578
|
)
|
|
|
(66,502
|
)
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
164,086
|
|
|
|
230,067
|
|
|
Net cash provided by operating activities
|
|
|
204,085
|
|
|
|
239,602
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Change in bank time deposits
|
|
|
10,000
|
|
|
|
66,841
|
|
|
Proceeds from available-for-sale securities
|
|
|
172,925
|
|
|
|
101,357
|
|
|
Purchases of available-for-sale securities
|
|
|
(282,596
|
)
|
|
|
(104,357
|
)
|
|
Purchases of fixed assets
|
|
|
(47,478
|
)
|
|
|
(14,369
|
)
|
|
Proceeds from sale of long-term investments
|
|
|
-
|
|
|
|
1,350
|
|
|
Purchase of long-term investments
|
|
|
-
|
|
|
|
(1,885
|
)
|
|
Asset acquisition
|
|
|
(25,965
|
)
|
|
|
(750
|
)
|
|
Business acquisition
|
|
|
(9,401
|
)
|
|
|
-
|
|
|
Net cash (used in) provided by investing activities
|
|
|
(182,515
|
)
|
|
|
48,187
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
-
|
|
|
|
1,499
|
|
|
Tax payment related to net share settlements on restricted stock
awards
|
|
|
(94,930
|
)
|
|
|
(36,734
|
)
|
|
Repurchase of common stock
|
|
|
(110,136
|
)
|
|
|
-
|
|
|
Net cash used in financing activities
|
|
|
(205,066
|
)
|
|
|
(35,235
|
)
|
|
|
|
|
|
|
|
Effects of foreign exchange rates on cash and cash equivalents
|
|
|
14,555
|
|
|
|
(11,866
|
)
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
(168,941
|
)
|
|
|
240,688
|
|
|
Cash and cash equivalents, beginning of year
|
|
|
943,396
|
|
|
|
798,742
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
774,455
|
|
|
$
|
1,039,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
|
|
|
|
Net Revenue and Net Bookings by Geographic Region, Distribution
Channel, and Platform Mix
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
|
Three Months Ended
December 31, 2016
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
262,338
|
|
55%
|
|
$
|
257,504
|
|
54%
|
|
International
|
|
|
218,502
|
|
45%
|
|
|
218,969
|
|
46%
|
|
Total net revenue
|
|
|
480,840
|
|
100%
|
|
|
476,473
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
Net bookings by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
381,277
|
|
58%
|
|
$
|
396,914
|
|
53%
|
|
International
|
|
|
272,664
|
|
42%
|
|
|
347,909
|
|
47%
|
|
Total net bookings
|
|
$
|
653,941
|
|
100%
|
|
$
|
744,823
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
|
Three Months Ended
December 31, 2016
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue by distribution channel
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
$
|
258,442
|
|
54%
|
|
$
|
240,213
|
|
50%
|
|
Physical retail and other
|
|
|
222,398
|
|
46%
|
|
|
236,260
|
|
50%
|
|
Total net revenue
|
|
|
480,840
|
|
100%
|
|
|
476,473
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
Net bookings by distribution channel
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
$
|
379,723
|
|
58%
|
|
$
|
357,435
|
|
48%
|
|
Physical retail and other
|
|
|
274,218
|
|
42%
|
|
|
387,388
|
|
52%
|
|
Total net bookings
|
|
$
|
653,941
|
|
100%
|
|
$
|
744,823
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
|
Three Months Ended
December 31, 2016
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
Net revenue by platform mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
$
|
394,461
|
|
82%
|
|
$
|
354,220
|
|
74%
|
|
PC and other
|
|
|
86,379
|
|
18%
|
|
|
122,253
|
|
26%
|
|
Total net revenue
|
|
|
480,840
|
|
100%
|
|
|
476,473
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
Net bookings by platform mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
$
|
546,645
|
|
84%
|
|
$
|
600,443
|
|
81%
|
|
PC and other
|
|
|
107,296
|
|
16%
|
|
|
144,380
|
|
19%
|
|
Total net bookings
|
|
$
|
653,941
|
|
100%
|
|
$
|
744,823
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
Net Revenue and Net Bookings by Geographic Region, Distribution
Channel, and Platform Mix
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
December 31, 2017
|
|
Nine Months Ended
December 31, 2016
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
796,603
|
|
59%
|
|
$
|
703,088
|
|
58%
|
|
International
|
|
|
546,015
|
|
41%
|
|
|
505,104
|
|
42%
|
|
Total net revenue
|
|
|
1,342,618
|
|
100%
|
|
|
1,208,192
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
Net bookings by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
929,229
|
|
59%
|
|
$
|
838,123
|
|
56%
|
|
International
|
|
|
650,005
|
|
41%
|
|
|
658,696
|
|
44%
|
|
Total net bookings
|
|
|
1,579,234
|
|
100%
|
|
|
1,496,819
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
December 31, 2017
|
|
Nine Months Ended
December 31, 2016
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue by distribution channel
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
$
|
829,564
|
|
62%
|
|
$
|
643,051
|
|
53%
|
|
Physical retail and other
|
|
|
513,054
|
|
38%
|
|
|
565,141
|
|
47%
|
|
Total net revenue
|
|
|
1,342,618
|
|
100%
|
|
|
1,208,192
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
Net bookings by distribution channel
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
$
|
1,016,373
|
|
64%
|
|
$
|
782,777
|
|
52%
|
|
Physical retail and other
|
|
|
562,861
|
|
36%
|
|
|
714,042
|
|
48%
|
|
Total net bookings
|
|
|
1,579,234
|
|
100%
|
|
|
1,496,819
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
December 31, 2017
|
|
Nine Months Ended
December 31, 2016
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
Net Revenues by Platform Mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
$
|
1,099,843
|
|
82%
|
|
$
|
961,285
|
|
80%
|
|
PC and other
|
|
|
242,775
|
|
18%
|
|
|
246,907
|
|
20%
|
|
Total net revenue
|
|
|
1,342,618
|
|
100%
|
|
|
1,208,192
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
Net bookings by platform mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
$
|
1,298,258
|
|
82%
|
|
$
|
1,235,671
|
|
83%
|
|
PC and other
|
|
|
280,976
|
|
18%
|
|
|
261,148
|
|
17%
|
|
Total net bookings
|
|
|
1,579,234
|
|
100%
|
|
|
1,496,819
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
ADDITIONAL DATA
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2017
|
Net Revenues
|
|
Cost of Goods Sold-
Internal Royalties
|
|
Cost of Goods Sold-
Software
Development
Costs
and Royalties
|
|
Cost of Goods Sold-
Product Costs
|
|
Cost of Goods Sold-
Licenses
|
|
Selling and
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
480,840
|
|
|
$
|
112,996
|
|
|
$
|
54,008
|
|
|
$
|
69,492
|
|
|
$
|
31,487
|
|
|
$
|
79,513
|
|
|
|
Net effect from deferral and related cost of goods sold
|
|
173,099
|
|
|
|
|
|
108
|
|
|
|
20,576
|
|
|
|
16,963
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
8,262
|
|
|
|
|
|
|
|
(3,014
|
)
|
|
|
Amortization and impairment of acquired intangibles
|
|
|
|
|
|
(4,912
|
)
|
|
|
|
|
|
|
(2,477
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2017
|
General and
Administrative
|
|
Research and
Development
|
|
Depreciation and
Amortization
|
|
Business Reorganization
|
|
Interest and Other,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
65,951
|
|
|
$
|
49,977
|
|
|
$
|
7,864
|
|
|
$
|
700
|
|
|
$
|
3,374
|
|
|
|
|
|
Stock-based compensation
|
|
(16,051
|
)
|
|
|
(2,223
|
)
|
|
|
|
|
|
|
|
|
|
|
Non-cash amounts related to Convertible Notes
|
|
|
|
|
|
|
|
|
|
795
|
|
|
|
|
|
Acquisition related expenses
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and impairment of acquired intangibles
|
|
(18
|
)
|
|
|
(1,635
|
)
|
|
|
(128
|
)
|
|
|
|
|
|
|
|
|
Impact of business reorganization
|
|
|
|
|
|
|
|
(700
|
)
|
|
|
|
|
|
|
Other, net
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
Net Revenues
|
|
Cost of Goods Sold-
Internal Royalties
|
|
Cost of Goods Sold-
Software
Development
Costs
and Royalties
|
|
Cost of Goods Sold-
Product Costs
|
|
Cost of Goods Sold-
Licenses
|
|
Selling and
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
476,473
|
|
|
$
|
103,613
|
|
|
$
|
109,900
|
|
|
$
|
70,089
|
|
|
$
|
27,472
|
|
|
$
|
95,820
|
|
|
|
Net effect from deferral and related cost of goods sold
|
|
268,350
|
|
|
|
|
|
58,446
|
|
|
|
47,272
|
|
|
|
11,953
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
(5,566
|
)
|
|
|
|
|
|
|
(2,441
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
General and
Administrative
|
|
Research and
Development
|
|
Depreciation and
Amortization
|
|
Interest and Other, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
52,939
|
|
|
$
|
37,589
|
|
|
$
|
7,460
|
|
|
$
|
(3,715
|
)
|
|
|
|
|
|
|
Stock-based compensation
|
|
(10,382
|
)
|
|
|
(3,243
|
)
|
|
|
|
|
|
|
|
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
|
|
|
|
|
4,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
ADDITIONAL DATA
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended December 31, 2017
|
Net Revenues
|
|
Cost of Goods Sold-
Internal Royalties
|
|
Cost of Goods Sold-
Software
Development
Costs
and Royalties
|
|
Cost of Goods Sold-
Product Costs
|
|
Cost of Goods Sold-
Licenses
|
|
Selling and
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
1,342,618
|
|
|
$
|
294,749
|
|
|
$
|
164,419
|
|
|
$
|
156,124
|
|
|
$
|
93,808
|
|
|
$
|
208,641
|
|
|
|
Net effect from deferral and related cost of goods sold
|
|
236,616
|
|
|
|
|
|
(2,944
|
)
|
|
|
19,308
|
|
|
|
14,920
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
(23,284
|
)
|
|
|
|
|
|
|
(8,787
|
)
|
|
|
Amortization and impairment of acquired intangibles
|
|
|
|
|
|
(14,052
|
)
|
|
|
|
|
|
|
(7,255
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended December 31, 2017
|
General and
Administrative
|
|
Research and
Development
|
|
Depreciation and
Amortization
|
|
Business
Reorganization
|
|
Interest and Other,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
187,378
|
|
|
$
|
142,245
|
|
|
$
|
34,490
|
|
|
$
|
13,012
|
|
|
$
|
(2,403
|
)
|
|
|
|
|
Stock-based compensation
|
|
(48,629
|
)
|
|
|
(12,990
|
)
|
|
|
|
|
(2,421
|
)
|
|
|
|
|
|
|
Non-cash amounts related to Convertible Notes
|
|
|
|
|
|
|
|
|
|
10,569
|
|
|
|
|
|
Non-cash (gain) loss on redemption of Convertible Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related expenses
|
|
6,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and impairment of acquired intangibles
|
|
|
|
(4,788
|
)
|
|
|
(11,633
|
)
|
|
|
|
|
|
|
|
|
Impact of business reorganization
|
|
|
|
|
|
|
|
(10,591
|
)
|
|
|
|
|
|
|
Other, net
|
|
|
|
|
|
|
|
|
|
(93
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended December 31, 2016
|
Net Revenues
|
|
Cost of Goods Sold-
Internal Royalties
|
|
Cost of Goods Sold-
Software
Development
Costs
and Royalties
|
|
Cost of Goods Sold-
Product Costs
|
|
Cost of Goods Sold-
Licenses
|
|
Selling and
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
1,208,192
|
|
|
$
|
240,711
|
|
|
$
|
218,753
|
|
|
$
|
170,127
|
|
|
$
|
78,468
|
|
|
$
|
247,141
|
|
|
|
Net effect from deferral and related cost of goods sold
|
|
288,627
|
|
|
|
|
|
60,971
|
|
|
|
50,071
|
|
|
|
11,239
|
|
|
|
(7,269
|
)
|
|
|
Stock-based compensation
|
|
|
|
|
|
(15,974
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended December 31, 2016
|
General and
Administrative
|
|
Research and
Development
|
|
Depreciation and
Amortization
|
|
Interest and Other, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
149,367
|
|
|
$
|
101,494
|
|
|
$
|
22,329
|
|
|
$
|
(15,298
|
)
|
|
|
|
|
|
|
Stock-based compensation
|
|
(26,851
|
)
|
|
|
(5,317
|
)
|
|
|
|
|
|
|
|
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
|
|
|
|
|
17,903
|
|
|
|
|
|
|
|
Acquisition related expenses
|
|
(317
|
)
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180207006003/en/
Source: Take-Two Interactive
Take-Two Interactive Software, Inc.
Investor Relations:
Henry
A. Diamond, 646-536-3005
Senior Vice President
Investor
Relations & Corporate Communications
Henry.Diamond@take2games.com
or
Corporate
Press:
Alan Lewis, 646-536-2983
Vice President
Corporate
Communications & Public Affairs
Alan.Lewis@take2games.com
|
