UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 16, 2022
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission | (IRS Employer | ||||||
| of incorporation) | File Number) | Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code (646) 536-2842
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition | ||||
On May 16, 2022 , Take-Two Interactive Software, Inc. (the “Company”) issued a press release announcing the financial results of the Company for its fourth fiscal quarter and fiscal year ended March 31, 2022. A copy of the press release is attached to this Current Report as Exhibit 99.1 and is incorporated by reference herein.
The information included in this Current Report on Form 8-K, including Exhibit 99.1 hereto, that is furnished pursuant to this Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, the information included in this Current Report on Form 8-K, including Exhibit 99.1 hereto, that is furnished pursuant to this Item 2.02 shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing.
Item 9.01 | Financial Statements and Exhibits | ||||
| (d) | Exhibits: | |||||||
99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||
| (Registrant) | ||||||||
| By: | /s/ Matthew Breitman | |||||||
| Matthew Breitman | ||||||||
| Senior Vice President, General Counsel Americas & Corporate Secretary | ||||||||
Date: May 16, 2022 | ||||||||
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Exhibit 99.1
 | ||||||||
| FOR IMMEDIATE RELEASE | ||||||||
| CONTACT: | |||||
| (Investor Relations) | (Corporate Press) | ||||
| Nicole Shevins | Alan Lewis | ||||
| Senior Vice President | Vice President | ||||
| Investor Relations & Corporate Communications | Corporate Communications & Public Affairs | ||||
| Take-Two Interactive Software, Inc. | Take-Two Interactive Software, Inc. | ||||
| (646) 536-3005 | (646) 536-2983 | ||||
| Nicole.Shevins@take2games.com | Alan.Lewis@take2games.com | ||||
Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal Year 2022
GAAP net revenue increased 4% to $3.50 billion
GAAP net income per diluted share was $3.58
GAAP net cash provided by operating activities for the twelve-months ended March 31, 2022 was $258.0 million
Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the twelve-months ended March 31, 2022 was
$424.9 million
Net Bookings were $3.41 billion
New York, NY – May 16, 2022 – Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported strong results for the fourth quarter and its fiscal year 2022, ended March 31, 2022. In addition, the Company provided its initial outlook on a standalone basis for its fiscal year 2023, ending March 31, 2023 and fiscal first quarter 2023, ending June 30, 2022. For further information, please see the fourth quarter fiscal 2022 results slide deck posted to the Company’s investor relations website at http://ir.take2games.com.
Fourth Quarter Fiscal 2022 Financial Highlights
GAAP net revenue increased 11% to $930.0 million, as compared to $839.4 million in last year’s fiscal fourth quarter. Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content and in-game purchases) increased 1% and accounted for 63% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 9% to $833.3 million, as compared to $768.0 million in last year’s fiscal fourth quarter, and accounted for 90% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA® 2K22 and NBA 2K21; Grand Theft Auto® Online and Grand Theft Auto V; Tiny Tina's Wonderlands®; Red Dead Redemption® 2 and Red Dead Online; WWE® 2K22; Top Eleven®; and Two Dots®.
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GAAP net income was $111.0 million, or $0.95 per diluted share, as compared to $218.8 million, or $1.88 per diluted share, for the comparable period last year.
The following data, together with a management reporting tax rate of 16%, are used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
| Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Statement of Operations | Change in deferred net revenue and related cost of goods sold | Stock-based compensation | Impact of business reorganization | Amortization and impairment of acquired intangibles | Business acquisition | Loss on long-term investments, net | Other | |||||||||||||||||||||||||||||||||||||||||||
| Net revenue | $930,004 | (84,225) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of goods sold | 398,625 | (17,317) | (16,549) | (13,170) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 531,379 | (66,908) | 16,549 | 13,170 | ||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 402,515 | (23,879) | (303) | (1,654) | (33,289) | |||||||||||||||||||||||||||||||||||||||||||||
| Income from operations | 128,864 | (66,908) | 40,428 | 303 | 14,824 | 33,289 | ||||||||||||||||||||||||||||||||||||||||||||
| Interest and other, net | (6,984) | 1,635 | 6,475 | (279) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on long-term investments, net | (39) | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 121,841 | (65,273) | 40,428 | 303 | 14,824 | 39,764 | 39 | (279) | ||||||||||||||||||||||||||||||||||||||||||
In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 116.8 million.
Fiscal Fourth Quarter Operational Metric – Net Bookings
Net Bookings is defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
During fiscal fourth quarter 2022, total Net Bookings grew 8% to $845.8 million, as compared to $784.5 million during last year’s fiscal fourth quarter. Net Bookings from recurrent consumer spending decreased 6% and accounted for 60% of total Net Bookings. Digitally-delivered Net Bookings were up 4% to $765.8 million, as compared to $738.4 million in last year’s fiscal fourth quarter, and accounted for 91% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K22; Grand Theft Auto Online and Grand Theft Auto V; Tiny Tina's Wonderlands; WWE 2K22; Red Dead Redemption 2 and Red Dead Online; Top Eleven; Two Dots; and Grand Theft Auto: The Trilogy - The Definitive Edition.
Catalog accounted for $494.9 million of Net Bookings led by Grand Theft Auto, Red Dead Redemption, Top Eleven, Borderlands®, Two Dots, NBA 2K, and Dragon City®.
Fiscal Year 2022 Financial Highlights
GAAP net revenue increased 4% to $3.50 billion, as compared to $3.37 billion in fiscal year 2021. Recurrent consumer spending increased 6% and accounted for 65% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 6% to $3.15 billion, as compared to $2.97 billion in fiscal year 2021, and accounted for 90% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Grand Theft Auto: The Trilogy - The Definitive Edition; Borderlands 3; Two Dots; and Tiny Tina's Wonderlands.
GAAP net income was $418.0 million, or $3.58 per diluted share, as compared to $588.9 million, or $5.09 per diluted share, for the comparable period last year.
During the twelve-month period ended March 31, 2022, GAAP net cash provided by operating activities was $258.0 million, as compared to $912.3 million in the same period last year. During the twelve-month period ended March 31, 2022, Adjusted Unrestricted Operating Cash Flow (Non-GAAP), which is defined as GAAP net cash from operating activities, adjusted for
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changes in restricted cash, was $424.9 million, as compared to $920.3 million in the same period last year (please see the section below titled “Non-GAAP Financial Measure” for additional information). As of March 31, 2022, the Company had cash and short-term investments of $2.6 billion.
The following data, together with a management reporting tax rate of 16%, are used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
| Twelve Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Statement of Operations | Change in deferred net revenue and related cost of goods sold | Stock-based compensation | Impact of business reorganization | Amortization and impairment of acquired intangibles | Business acquisition | Gain on long-term investments, net | Other | |||||||||||||||||||||||||||||||||||||||||||
| Net revenue | $3,504,800 | (96,616) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of goods sold | 1,535,401 | (11,785) | (48,381) | (50,751) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 1,969,399 | (84,831) | (48,381) | (50,751) | ||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 1,495,804 | (134,588) | (849) | (12,105) | (72,819) | |||||||||||||||||||||||||||||||||||||||||||||
| Income from operations | 473,595 | (84,831) | 182,969 | (849) | 62,856 | 72,819 | ||||||||||||||||||||||||||||||||||||||||||||
| Interest and other, net | (14,212) | 2,999 | 6,475 | (279) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on long-term investments, net | 6,015 | (6,015) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 465,398 | (81,832) | 182,969 | 849 | 62,856 | 79,294 | (6,015) | (279) | ||||||||||||||||||||||||||||||||||||||||||
In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 116.8 million.
Fiscal Year 2022 Operational Metric – Net Bookings
Total Net Bookings declined 4% to $3.41 billion, as compared to $3.55 billion in fiscal year 2021. Net Bookings from recurrent consumer spending decreased 6% and accounted for 64% of total Net Bookings. Digitally-delivered Net Bookings decreased 2% to $3.08 billion, as compared to $3.15 billion in fiscal year 2021, and accounted for 91% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Borderlands 3; Grand Theft Auto: The Trilogy - The Definitive Edition; Top Eleven; and Two Dots.
Management Comments
“Our strong fourth quarter results concluded another highly successful year for our Company, during which we delivered Net Bookings of $3.4 billion,” said Strauss Zelnick, Chairman and CEO of Take-Two. “In addition to our outstanding financial results, I am pleased that we took pivotal steps to position our organization for the long term by investing in talent, broadening our portfolio further, and agreeing upon our transformational pending combination with Zynga, which has the potential to exponentially increase our Net Bookings from mobile, while also enabling us to deliver substantial cost synergies and revenue opportunities.”
"For fiscal 2023, we expect to deliver a new record of $3.75 to $3.85 billion in Net Bookings on a standalone basis. As we execute on our organic growth initiatives, while unlocking new opportunities presented by our pending transaction with Zynga, we believe that we can broaden our portfolio and capitalize further on new platforms, business models, emerging markets, and distribution channels. As we deliver on these growth drivers, we believe that Take-Two remains incredibly well-positioned to increase its scale and prominence in the industry, expand its margins, and deliver long-term value for our shareholders."
COVID-19 Update
At Take-Two, our number one priority has remained the health and safety of our employees and their families. The majority of our global offices have reopened. However, given the evolving dynamics of the COVID-19 pandemic, we are strictly following protocols from local governments and health officials to ensure that we are adhering to their safety standards.
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Due to the shelter-in-place orders that began in calendar year 2020, we experienced heightened levels of engagement and Net Bookings growth during our fiscal 2021 period. As the return to normalcy continues to unfold, the impact to our business, operations and financial results will depend on numerous evolving factors that we are not able to predict. The key risks to our business are set forth under the heading “Cautionary Note Regarding Forward-Looking Statements” in this release and in Take-Two’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022.
Business and Product Highlights
Since January 1, 2022:
Take-Two:
•On January 9th, Take-Two entered into a definitive agreement, under which Take-Two will acquire all of the outstanding shares of Zynga. The transaction, which is anticipated to close on May 23, 2022, is subject to the approval of both Take-Two and Zynga stockholders and the satisfaction of other customary closing conditions.
•On April 7th, Take-Two announced that it agreed to sell, in an underwritten public offering, $2.7 billion aggregate principal amount of its Senior Notes, consisting of $1.0 billion of its 3.300% Senior Notes due 2024, $600 million of its 3.550% Senior Notes due 2025, $600 million of its 3.700% Senior Notes due 2027 and $500 million of its 4.000% Senior Notes due 2032. The Company intends to use a portion of the net proceeds from the offering, together with cash on hand, to fund the cash portion of the consideration for its pending acquisition of Zynga and the expected settlement of the outstanding convertible notes issued by Zynga, and related costs and expenses. Any remaining net proceeds will be used for general corporate purposes. If the acquisition is not consummated on or prior to January 9, 2023, or is terminated prior to such date, the Company will be required to redeem the Senior Notes.
Rockstar Games:
•On February 11th, Rockstar Games released the physical version of Grand Theft Auto: The Trilogy - The Definitive Edition for Nintendo Switch.
•On March 15th, Rockstar Games launched Grand Theft Auto V digitally on PlayStation 5 and Xbox Series X|S, featuring access to Grand Theft Auto Online, high-end PC visuals, technical enhancements of the latest consoles, and Story Mode progress transfers for PlayStation 4 and Xbox One players.
•On March 15th, Grand Theft Auto Online was made available as a standalone title for PlayStation 5 and Xbox Series X|S, in addition to being accessible as part of Grand Theft Auto V on either platform, with graphical and technical enhancements, a new Career Builder, new menu design, five new vehicles, an exclusive vehicle for returning players, online character transfers for PlayStation 4 and Xbox One players, and Hao’s Special Works – a shop where players can purchase new modifications for select vehicles to improve driving performance, customization options and more.
•On March 29th, Rockstar Games launched GTA+, a membership program exclusive to Grand Theft Auto Online players on PlayStation 5 and Xbox Series X|S, featuring a range of valuable benefits, including a monthly recurring GTA$500,000 deposit, upgrades, Members-only discounts, GTA$ and RP bonuses, and more each month.
•Throughout the period, Rockstar Games continued to support Grand Theft Auto Online with new vehicles, rewards, and the Adversary Mode Double Down – featuring Grand Theft Auto V’s Franklin Clinton and Lamar Davis as playable characters.
2K:
•Continued to drive engagement for NBA 2K22 with the launch of new seasons that feature new music and content, as well as seasonal updates across MyCAREER, MyTEAM, and The W modes.
•On March 11th, 2K and Visual Concepts launched WWE 2K22, the newest installment of the flagship WWE video game series, which received the highest Metacritic critic scores in franchise history. Featuring Rey Mysterio® on the cover in celebration of his 20th anniversary as a WWE Superstar, the game features a top-to-bottom overhaul, including a redesigned engine and gameplay, the most stunning WWE 2K graphics to date, intuitive and accessible controls, multiple new fan-requested game modes, and an immersive presentation and camera angles throughout. WWE 2K22 also features a diverse soundtrack curated by Executive Soundtrack Producer Machine Gun Kelly, who will be available in a future downloadable content pack as a playable character. The first DLC pack for WWE 2K22 launched on April 26th, featuring fan-favorite WWE Legends Yokozuna and Rikishi, “The Samoan Bulldozer” Umaga, current Raw Superstar Omos, and rising NXT star Kacy Catanzaro.
•Additionally, there were updates to WWE SuperCard, including the WrestleMania 38 card tier, which includes more than 70 new cards featuring fan-favorite WWE Superstars, Legends and Hall of Famers.
•On March 25th, 2K and Gearbox Software released Tiny Tina’s Wonderlands, an all-new, fantasy-fueled looter shooter game from the unpredictable mind of Tiny Tina, which supports crossplay between Xbox Series X|S, Xbox One, PlayStation®5, PlayStation®4, and PC via the Epic Games Store. Game Informer awarded the game a 9.5 out of 10, calling it “a spellbinding hit” and “Gearbox Software’s best game.” COGconnected noted it’s “a worthy new IP,” while ComicBook.com described it as “a fantastic fantasy twist” and IGN called out the “excellent, laugh-out-loud writing.”
•To drive further engagement for Tiny Tina’s Wonderlands, 2K and Gearbox Software released Coiled Captors on April 21st, the first of four exciting post-launch content drops in the game’s Season Pass.
•On March 17th, 2K and Supermassive Games announced that they will release The Quarry on June 10th, featuring an iconic ensemble cast of Hollywood stars and celebrities, including David Arquette, Ariel Winter, Justice Smith, Brenda Song, Lance
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Henriksen, Lin Shaye, and more. The title is an all-new horror narrative game where your every choice, big or small, shapes your story and determines who lives to tell the tale.
•On April 21st, Gearbox confirmed that a new game from the Tales from the Borderlands series will be releasing this fiscal year. Developed by Gearbox and published by 2K, the title will feature all new characters and stories set in the Borderlands universe.
•On April 21st, Firaxis released XCOM 2 Collection on Epic Games Store. The XCOM 2 Collection includes the award-winning strategy game XCOM 2, the War of the Chosen expansion, and DLC packs (Resistance Warrior Pack, Anarchy's Children, Alien Hunters, Shen's Last Gift and Tactical Legacy Pack) for a bundled discount.
Private Division:
•On February 8th, Roll7 and Private Division launched OlliOlli World, the skateboarding action-platformer digitally for PlayStation 4, PlayStation 5, Xbox One, Xbox Series X|S, PC via Steam and Nintendo Switch. OlliOlli World marks a bold new direction for the OlliOlli franchise and has received much critical praise for the unique art style and tight gameplay mechanics. The title will be supported with its first expansion, VOID Riders, in the first half of fiscal 2023.
•On March 16th, Private Division announced that they have signed four new publishing agreements with leading independent developers Die Gute Fabrik, Evening Star, Piccolo Studio, and Yellow Brick Games.
Outlook for Fiscal 2023
Take-Two is providing its initial outlook for the fiscal year ending March 31, 2023 and fiscal first quarter ending June 30, 2022:
Fiscal Year Ending March 31, 2023
•This initial outlook does not include Zynga Inc. in our projected results or the interest expense on the Senior notes the Company issued in April 2022 to fund the cash portion for the pending combination with Zynga Inc.
•GAAP net revenue is expected to range from $3.67 to $3.77 billion
•GAAP net income is expected to range from $223 to $252 million(1)
•GAAP diluted net income per share is expected to range from $1.90 to $2.15(1)
•Share count used to calculate both GAAP and management reporting diluted net income per share is expected to be 117.0 million (2)
•Net cash provided by operating activities is expected to be over $390 million
•Adjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over $350 million (3)
•Capital expenditures are expected to be approximately $120 million
•Net Bookings (Operational Metric) are expected to range from $3.75 to $3.85 billion
The Company is also providing selected data and its management reporting tax rate of 16%, which are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
| Twelve Months Ending March 31, 2023 | |||||||||||||||||||||||||||||||||||
| Financial Data | |||||||||||||||||||||||||||||||||||
| $ in millions | GAAP outlook (4) | Change in deferred net revenue and related cost of goods sold | Stock-based compensation | Amortization and impairment of acquired intangibles | Reorganization & acquisition | ||||||||||||||||||||||||||||||
| Net revenue | $3,670 to $3,770 | $80 | |||||||||||||||||||||||||||||||||
| Cost of goods sold | $1,658 to $1,703 | $5 | $(29) | $(46) | |||||||||||||||||||||||||||||||
| Operating expenses | $1,735 to $1,755 | $(123) | $(2) | $(30) | |||||||||||||||||||||||||||||||
| Interest and other, net | $9 | $(12) | |||||||||||||||||||||||||||||||||
| Income before income taxes | $268 to $303 | $75 | $152 | $48 | $42 | ||||||||||||||||||||||||||||||
First Quarter Ending June 30, 2022
•This initial outlook does not include Zynga Inc. in our projected results or the interest expense on the Senior notes the Company issued in April 2022 to fund the cash portion for the pending combination with Zynga Inc.
•GAAP net revenue is expected to range from $810 to $860 million
•GAAP net income is expected to range from $94 to $105 million(1)
•GAAP diluted net income per share is expected to range from $0.80 to $0.90(1)
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•Share count used to calculate both GAAP and management reporting diluted net income per share is expected to be 116.9 million (5)
•Net Bookings (Operational Metric) are expected to range from $700 to $750 million
The Company is also providing selected data and its management reporting tax rate of 16%, which are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
| Three Months Ending June 30, 2022 | ||||||||||||||||||||||||||||||||
| Financial Data | ||||||||||||||||||||||||||||||||
| $ in millions | GAAP outlook (4) | Change in deferred net revenue and related cost of goods sold | Stock-based compensation | Amortization of intangible assets | Reorganization & Acquisition | |||||||||||||||||||||||||||
| Net revenue | $810 to $860 | $(110) | ||||||||||||||||||||||||||||||
| Cost of goods sold | $303 to $329 | $(7) | $(5) | $(14) | ||||||||||||||||||||||||||||
| Operating expenses | $387 to $397 | $(31) | $(1) | $(15) | ||||||||||||||||||||||||||||
| Interest and other, net | $7 | $(8) | ||||||||||||||||||||||||||||||
| Income before income taxes | $113 to $127 | $(103) | $36 | $15 | $23 | |||||||||||||||||||||||||||
1)The effective tax rate utilized for our GAAP net income outlook does not reflect U.S. tax law changes that went into effect on April 1, 2022 for the Company requiring the capitalization and amortization of research and development costs rather than deduction of such costs in the year incurred for U.S. tax purposes, the potentially significant adverse impact of which we are still reviewing.
2)Includes 115.8 million basic shares and 1.2 million shares representing the potential dilution from unvested employee stock grants.
3)Adjusted for changes in restricted cash.
4)The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously.
5)Includes 115.6 million basic shares and 1.3 million shares representing the potential dilution from unvested employee stock grants.
Key assumptions and dependencies underlying the Company’s outlook include: the timely delivery of the titles included in this financial outlook; a stable economic environment; continued consumer acceptance of Xbox One and PlayStation 4, as well as continued growth in the installed base of PlayStation 5 and Xbox Series X|S; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below. The Company's outlook does not take into account the pending combination with Zynga Inc. or the interest expense on the Senior notes the Company issued in April 2022 to fund the cash portion for the pending combination with Zynga Inc.
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Product Releases
The following have been released since January 1, 2022:
| Label | Product | Platforms | Release Date | ||||||||
| Private Division | OlliOlli World (digital only) | PS4, PS5, Xbox One, Xbox Series X|S, Switch, PC | February 8, 2022 | ||||||||
| Rockstar Games | Grand Theft Auto: The Trilogy – The Definitive Edition | Switch (physical only) | February 11, 2022 (U.S. release date; other region release dates may vary) | ||||||||
| 2K | WWE 2K22 | PS4, PS5, Xbox One, Xbox Series X|S, PC | March 11, 2022 | ||||||||
| Rockstar Games | Grand Theft Auto V for PlayStation 5 and XBox Series X|S | PS5, Xbox Series X|S | March 15, 2022 | ||||||||
| Rockstar Games | Grand Theft Auto Online – Standalone | PS5, Xbox Series X|S | March 15, 2022 | ||||||||
| 2K | Tiny Tina's Wonderlands | PS4, PS5, Xbox One, Xbox Series X|S, PC | March 25, 2022 | ||||||||
| 2K | Tiny Tina's Wonderlands: Coiled Captors | PS4, PS5, Xbox One, Xbox Series X|S, PC | April 21, 2022 | ||||||||
| 2K | XCOM 2 Collection | PC | April 21, 2022 | ||||||||
| 2K | WWE 2K22 The Banzai Pack | PS4, PS5, Xbox One, Xbox Series X|S, PC | April 26, 2022 | ||||||||
Take-Two's future lineup announced to-date includes:
| Label | Product | Platforms | Release Date | ||||||||
| 2K | WWE 2K22 Most Wanted Pack | PS4, PS5, Xbox One, Xbox Series X|S, PC | May 17, 2022 | ||||||||
| 2K | WWE 2K22 Stand Back Pack | PS4, PS5, Xbox One, Xbox Series X|S, PC | June 7, 2022 | ||||||||
| 2K | The Quarry | PS4, PS5, Xbox One, Xbox Series X|S, PC | June 10, 2022 | ||||||||
| 2K | WWE 2K22 Clowning Around Pack | PS4, PS5, Xbox One, Xbox Series X|S, PC | June 28, 2022 | ||||||||
| 2K | WWE 2K22 The Whole Dam Pack | PS4, PS5, Xbox One, Xbox Series X|S, PC | July 19, 2022 | ||||||||
| 2K | Marvel's Midnight Suns | PS4, PS5, Xbox One, Xbox Series X|S, PC, Switch | Second Half of Calendar 2022 | ||||||||
| Rockstar Games | Grand Theft Auto: The Trilogy — The Definitive Edition (mobile release) | iOS, Android | Fiscal 2023 | ||||||||
| 2K | NBA 2K23 | TBA | Fiscal 2023 | ||||||||
| 2K | WWE 2K23 | TBA | Fiscal 2023 | ||||||||
| 2K | PGA TOUR 2K23 | TBA | Fiscal 2023 | ||||||||
| 2K | New Tales from the Borderlands title | TBA | Fiscal 2023 | ||||||||
| Private Division | Kerbal Space Program 2 | PC | Fiscal 2023 (console release planned for Fiscal 2024) | ||||||||
Conference Call
Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.
7
Non-GAAP Financial Measure
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP measure of financial performance: Adjusted Unrestricted Operating Cash Flow, which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash. The Company’s management believes it is important to consider Adjusted Unrestricted Operating Cash Flow, in addition to net cash from operating activities, as it provides more transparency into current business trends without regard to the timing of payments from restricted cash, which is primarily related to a dedicated account limited to the payment of certain internal royalty obligations.
This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating this Non-GAAP financial measure used by the Company. Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in planning and forecasting. A reconciliation of this Non-GAAP financial measure to the most comparable GAAP measure is contained in the financial tables to this press release.
Final Results
The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Annual Report on Form 10−K for the period ended March 31, 2022.
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, Private Division, and T2 Mobile Games. Our products are designed for console systems and personal computers, including smartphones and tablets, and are delivered through physical retail, digital download, online platforms, and cloud streaming services. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their respective holders.
Cautionary Note Regarding Forward-Looking Statements
Statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," “should,” "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company's future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including: risks relating to our pending acquisition of Zynga; the uncertainty of the impact of the COVID-19 pandemic and measures taken in response thereto; the effect that measures taken to mitigate the COVID-19 pandemic have on our operations, including our ability to timely deliver our titles and other products, and on the operations of our counterparties, including retailers and distributors; the effects of the COVID-19 pandemic on both consumer demand and the discretionary spending patterns of our customers as the situation with the pandemic continues to evolve; the risks of conducting business internationally; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of potential inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; the timely release and significant market acceptance of our games; the ability to maintain acceptable pricing levels on our games; and risks associated with international operations.
Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements
8
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.
# # #
9
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||||
| Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| Net revenue | $ | 930,004 | $ | 839,431 | $ | 3,504,800 | $ | 3,372,772 | ||||||||||||||||||
| Cost of goods sold: | ||||||||||||||||||||||||||
| Internal royalties | 142,172 | 158,128 | 619,902 | 637,652 | ||||||||||||||||||||||
| Software development costs and royalties | 142,468 | 22,465 | 417,431 | 396,797 | ||||||||||||||||||||||
| Licenses | 56,162 | 53,841 | 254,203 | 260,721 | ||||||||||||||||||||||
| Product costs | 57,823 | 45,213 | 243,865 | 239,915 | ||||||||||||||||||||||
| Total cost of goods sold | 398,625 | 279,647 | 1,535,401 | 1,535,085 | ||||||||||||||||||||||
| Gross profit | 531,379 | 559,784 | 1,969,399 | 1,837,687 | ||||||||||||||||||||||
| Selling and marketing | 141,270 | 106,609 | 516,429 | 444,985 | ||||||||||||||||||||||
| General and administrative | 148,371 | 98,453 | 510,855 | 390,683 | ||||||||||||||||||||||
| Research and development | 96,108 | 83,559 | 406,566 | 317,311 | ||||||||||||||||||||||
| Depreciation and amortization | 16,463 | 15,480 | 61,105 | 55,596 | ||||||||||||||||||||||
| Business reorganization | 303 | (134) | 849 | (272) | ||||||||||||||||||||||
| Total operating expenses | 402,515 | 303,967 | 1,495,804 | 1,208,303 | ||||||||||||||||||||||
| Income from operations | 128,864 | 255,817 | 473,595 | 629,384 | ||||||||||||||||||||||
| Interest and other, net | (6,984) | (3,226) | (14,212) | 8,796 | ||||||||||||||||||||||
| Gain (loss) on long-term investments, net | (39) | 1,000 | 6,015 | 39,636 | ||||||||||||||||||||||
| Income before income taxes | 121,841 | 253,591 | 465,398 | 677,816 | ||||||||||||||||||||||
| Provision for income taxes | 10,869 | 34,779 | 47,376 | 88,930 | ||||||||||||||||||||||
| Net income | $ | 110,972 | $ | 218,812 | $ | 418,022 | $ | 588,886 | ||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.96 | $ | 1.90 | $ | 3.62 | $ | 5.14 | ||||||||||||||||||
| Diluted earnings per share | $ | 0.95 | $ | 1.88 | $ | 3.58 | $ | 5.09 | ||||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||||||||
| Basic | 115,335 | 115,110 | 115,485 | 114,602 | ||||||||||||||||||||||
| Diluted | 116,802 | 116,300 | 116,775 | 115,744 | ||||||||||||||||||||||
| Computation of Basic EPS: | ||||||||||||||||||||||||||
| Net income | $ | 110,972 | $ | 218,812 | $ | 418,022 | $ | 588,886 | ||||||||||||||||||
| Weighted average shares outstanding - basic | 115,335 | 115,110 | 115,485 | 114,602 | ||||||||||||||||||||||
| Basic earnings per share | $ | 0.96 | $ | 1.90 | $ | 3.62 | $ | 5.14 | ||||||||||||||||||
| Computation of Diluted EPS: | ||||||||||||||||||||||||||
| Net income | $ | 110,972 | $ | 218,812 | $ | 418,022 | $ | 588,886 | ||||||||||||||||||
| Weighed average shares outstanding - basic | 115,335 | 115,110 | 115,485 | 114,602 | ||||||||||||||||||||||
| Add: dilutive effect of common stock equivalents | 1,467 | 1,190 | 1,290 | 1,142 | ||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 116,802 | 116,300 | 116,775 | 115,744 | ||||||||||||||||||||||
| Diluted earnings per share | $ | 0.95 | $ | 1.88 | $ | 3.58 | $ | 5.09 | ||||||||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||
| March 31, 2022 | March 31, 2021 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 1,732,047 | $ | 1,422,884 | ||||||||||
| Short-term investments | 820,060 | 1,308,692 | ||||||||||||
| Restricted cash and cash equivalents | 359,832 | 538,822 | ||||||||||||
| Accounts receivable, net of allowances of $350 and $350 at March 31, 2022 and 2021, respectively | 579,433 | 552,762 | ||||||||||||
| Inventory | 13,224 | 17,742 | ||||||||||||
| Software development costs and licenses | 81,394 | 43,443 | ||||||||||||
| Deferred cost of goods sold | 12,374 | 15,524 | ||||||||||||
| Prepaid expenses and other | 272,724 | 320,646 | ||||||||||||
| Total current assets | 3,871,088 | 4,220,515 | ||||||||||||
| Fixed assets, net | 242,039 | 149,364 | ||||||||||||
| Right-of-use assets | 217,206 | 164,763 | ||||||||||||
| Software development costs and licenses, net of current portion | 755,888 | 490,892 | ||||||||||||
| Goodwill | 674,554 | 535,306 | ||||||||||||
| Other intangibles, net | 266,475 | 121,591 | ||||||||||||
| Deferred tax assets | 73,801 | 90,206 | ||||||||||||
| Long-term restricted cash and cash equivalents | 103,452 | 98,541 | ||||||||||||
| Other assets | 341,716 | 157,040 | ||||||||||||
| Total assets | $ | 6,546,219 | $ | 6,028,218 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 125,882 | $ | 71,001 | ||||||||||
| Accrued expenses and other current liabilities | 1,074,891 | 1,204,090 | ||||||||||||
| Deferred revenue | 865,270 | 928,029 | ||||||||||||
| Lease liabilities | 38,921 | 31,595 | ||||||||||||
| Total current liabilities | 2,104,964 | 2,234,715 | ||||||||||||
| Non-current deferred revenue | 70,911 | 37,302 | ||||||||||||
| Non-current lease liabilities | 211,297 | 159,671 | ||||||||||||
| Non-current software development royalties | 115,527 | 110,127 | ||||||||||||
| Other long-term liabilities | 233,861 | 154,511 | ||||||||||||
| Total liabilities | $ | 2,736,560 | $ | 2,696,326 | ||||||||||
| Stockholders' equity: | ||||||||||||||
Preferred stock, $0.01 par value, 5,000 shares authorized; no shares issued and outstanding at March 31, 2022 and March 31, 2021 | — | — | ||||||||||||
Common stock, $0.01 par value, 200,000 shares authorized; 139,048 and 137,584 shares issued and 115,367 and 115,163 outstanding at March 31, 2022 and 2021, respectively | 1,390 | 1,376 | ||||||||||||
| Additional paid-in capital | 2,597,205 | 2,288,781 | ||||||||||||
| Treasury stock, at cost; 23,681 and 22,421 common shares at March 31, 2022 and 2021, respectively | (1,020,584) | (820,572) | ||||||||||||
| Retained earnings | 2,288,993 | 1,870,971 | ||||||||||||
| Accumulated other comprehensive loss | (57,345) | (8,664) | ||||||||||||
| Total stockholders' equity | $ | 3,809,659 | $ | 3,331,892 | ||||||||||
| Total liabilities and stockholders' equity | $ | 6,546,219 | $ | 6,028,218 | ||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| (in thousands) | ||||||||||||||
| Twelve Months Ended March 31, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| Operating activities: | ||||||||||||||
| Net income | $ | 418,022 | $ | 588,886 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Amortization and impairment of software development costs and licenses | 153,279 | 144,263 | ||||||||||||
| Stock-based compensation | 182,969 | 110,472 | ||||||||||||
| Noncash lease expense | 34,511 | 30,553 | ||||||||||||
| Amortization of intellectual property | 64,817 | 32,241 | ||||||||||||
| Depreciation | 61,196 | 56,309 | ||||||||||||
| Impairment of software development costs and licenses | 70,611 | 39,073 | ||||||||||||
| Amortization of debt issuance costs | 6,525 | — | ||||||||||||
| Deferred income taxes | 8,104 | 10,631 | ||||||||||||
| Gain on long-term investments, net | (6,015) | (41,588) | ||||||||||||
| Other, net | 16,243 | 5,515 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Accounts receivable | (17,857) | 47,195 | ||||||||||||
| Inventory | 4,106 | 2,503 | ||||||||||||
| Software development costs and licenses | (457,556) | (260,352) | ||||||||||||
| Prepaid expenses, other current and other non-current assets | (207,559) | (89,290) | ||||||||||||
| Deferred revenue | (30,946) | 152,466 | ||||||||||||
| Deferred cost of goods sold | 3,139 | 4,768 | ||||||||||||
| Accounts payable, accrued expenses and other liabilities | (45,605) | 78,673 | ||||||||||||
| Net cash provided by operating activities | 257,984 | 912,318 | ||||||||||||
| Investing activities: | ||||||||||||||
| Change in bank time deposits | 446,965 | (387,762) | ||||||||||||
| Proceeds from available-for-sale securities | 779,940 | 546,287 | ||||||||||||
| Purchases of available-for-sale securities | (756,266) | (824,477) | ||||||||||||
| Purchases of fixed assets | (158,642) | (68,923) | ||||||||||||
| Proceeds from sale of long-term investment | — | 47,472 | ||||||||||||
| Purchase of long-term investments | (12,272) | (16,852) | ||||||||||||
| Business acquisitions, net of cash acquired | (161,331) | (102,469) | ||||||||||||
| Other | 822 | — | ||||||||||||
| Net cash provided by (used in) investing activities | 139,216 | (806,724) | ||||||||||||
| Financing activities: | ||||||||||||||
| Tax payment related to net share settlements on restricted stock awards | (64,074) | (71,552) | ||||||||||||
| Repurchase of common stock | (200,012) | — | ||||||||||||
| Issuance of common stock | 19,657 | 14,214 | ||||||||||||
| Cost of debt | (12,150) | — | ||||||||||||
| Other | (234) | — | ||||||||||||
| Net cash used in financing activities | (256,813) | (57,338) | ||||||||||||
| Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents | (5,303) | 18,599 | ||||||||||||
| Net change in cash, cash equivalents, and restricted cash and cash equivalents | 135,084 | 66,855 | ||||||||||||
| Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year | 2,060,247 | 1,993,392 | ||||||||||||
| Cash, cash equivalents, and restricted cash equivalents, end of year | $ | 2,195,331 | $ | 2,060,247 | ||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||
| Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix | ||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by geographic region | ||||||||||||||||||||||||||
| United States | $ | 557,262 | 60 | % | $ | 513,488 | 61 | % | ||||||||||||||||||
| International | 372,742 | 40 | % | 325,943 | 39 | % | ||||||||||||||||||||
| Total net revenue | $ | 930,004 | 100 | % | $ | 839,431 | 100 | % | ||||||||||||||||||
| Net Bookings by geographic region | ||||||||||||||||||||||||||
| United States | $ | 492,726 | 58 | % | $ | 479,784 | 61 | % | ||||||||||||||||||
| International | 353,053 | 42 | % | 304,748 | 39 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 845,779 | 100 | % | $ | 784,532 | 100 | % | ||||||||||||||||||
| Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by distribution channel | ||||||||||||||||||||||||||
| Digital online | $ | 833,339 | 90 | % | $ | 768,002 | 91 | % | ||||||||||||||||||
| Physical retail and other | 96,665 | 10 | % | 71,429 | 9 | % | ||||||||||||||||||||
| Total net revenue | $ | 930,004 | 100 | % | $ | 839,431 | 100 | % | ||||||||||||||||||
| Net Bookings by distribution channel | ||||||||||||||||||||||||||
| Digital online | $ | 765,803 | 91 | % | $ | 738,401 | 94 | % | ||||||||||||||||||
| Physical retail and other | 79,976 | 9 | % | 46,131 | 6 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 845,779 | 100 | % | $ | 784,532 | 100 | % | ||||||||||||||||||
| Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by platform mix | ||||||||||||||||||||||||||
| Console | $ | 664,799 | 72 | % | $ | 607,960 | 72 | % | ||||||||||||||||||
| PC and other | 162,952 | 18 | % | 142,190 | 17 | % | ||||||||||||||||||||
| Mobile | 102,253 | 10 | % | 89,281 | 11 | % | ||||||||||||||||||||
| Total net revenue | $ | 930,004 | 100 | % | $ | 839,431 | 100 | % | ||||||||||||||||||
| Net Bookings by platform mix | ||||||||||||||||||||||||||
| Console | $ | 601,789 | 71 | % | $ | 550,231 | 70 | % | ||||||||||||||||||
| PC and other | 143,052 | 17 | % | 140,614 | 18 | % | ||||||||||||||||||||
| Mobile | 100,938 | 12 | % | 93,687 | 12 | % | ||||||||||||||||||||
| Total Net Bookings | 845,779 | 100 | % | $ | 784,532 | 100 | % | |||||||||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||
| Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix | ||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Twelve Months Ended March 31, 2022 | Twelve Months Ended March 31, 2021 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by geographic region | ||||||||||||||||||||||||||
| United States | $ | 2,100,237 | 60 | % | 2,015,885 | 60 | % | |||||||||||||||||||
| International | 1,404,563 | 40 | % | 1,356,887 | 40 | % | ||||||||||||||||||||
| Total net revenue | $ | 3,504,800 | 100 | % | $ | 3,372,772 | 100 | % | ||||||||||||||||||
| Net Bookings by geographic region | ||||||||||||||||||||||||||
| United States | $ | 2,019,642 | 59 | % | $ | 2,171,240 | 61 | % | ||||||||||||||||||
| International | 1,388,542 | 41 | % | 1,381,358 | 39 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 3,408,184 | 100 | % | $ | 3,552,598 | 100 | % | ||||||||||||||||||
| Twelve Months Ended March 31, 2022 | Twelve Months Ended March 31, 2021 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by distribution channel | ||||||||||||||||||||||||||
| Digital online | $ | 3,148,957 | 90 | % | $ | 2,972,403 | 88 | % | ||||||||||||||||||
| Physical retail and other | 355,843 | 10 | % | 400,369 | 12 | % | ||||||||||||||||||||
| Total net revenue | $ | 3,504,800 | 100 | % | $ | 3,372,772 | 100 | % | ||||||||||||||||||
| Net Bookings by distribution channel | ||||||||||||||||||||||||||
| Digital online | $ | 3,084,574 | 91 | % | $ | 3,148,073 | 89 | % | ||||||||||||||||||
| Physical retail and other | 323,610 | 9 | % | 404,525 | 11 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 3,408,184 | 100.0 | % | $ | 3,552,598 | 100 | % | ||||||||||||||||||
| Twelve Months Ended March 31, 2022 | Twelve Months Ended March 31, 2021 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by platform mix | ||||||||||||||||||||||||||
| Console | $ | 2,528,857 | 72 | % | $ | 2,516,993 | 75 | % | ||||||||||||||||||
| PC and other | 572,506 | 16 | % | 581,702 | 17 | % | ||||||||||||||||||||
| Mobile | 403,437 | 12 | % | 274,077 | 8 | % | ||||||||||||||||||||
| Total net revenue | $ | 3,504,800 | 100 | % | $ | 3,372,772 | 100 | % | ||||||||||||||||||
| Net Bookings by platform mix | ||||||||||||||||||||||||||
| Console | $ | 2,440,031 | 72 | % | $ | 2,637,340 | 74 | % | ||||||||||||||||||
| PC and other | 563,307 | 17 | % | 616,555 | 17 | % | ||||||||||||||||||||
| Mobile | 404,846 | 12 | % | 298,703 | 9 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 3,408,184 | 100 | % | $ | 3,552,598 | 100 | % | ||||||||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2022 | Net revenue | Cost of goods sold- Internal royalties | Cost of goods sold- Software development costs and royalties | Cost of goods sold- Licenses | Cost of goods sold- Product costs | Selling and marketing | |||||||||||||||||||||||||||||
| As reported | $ | 930,004 | $ | 142,172 | $ | 142,468 | $ | 56,162 | $ | 57,823 | $ | 141,270 | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | (84,225) | (12,781) | (1,319) | (3,217) | |||||||||||||||||||||||||||||||
| Stock-based compensation | (16,549) | (7,671) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (13,170) | (800) | |||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2022 | General and administrative | Research and development | Depreciation and amortization | Business reorganization | Interest and other, net | Gain on long-term investments, net | |||||||||||||||||||||||||||||
| As reported | $ | 148,371 | $ | 96,108 | $ | 16,463 | $ | 303 | $ | (6,984) | $ | (39) | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | 1,635 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | (16,102) | (106) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (525) | (329) | |||||||||||||||||||||||||||||||||
| Impact of business reorganization | (303) | ||||||||||||||||||||||||||||||||||
| Acquisition related expenses | (33,289) | 6,475 | |||||||||||||||||||||||||||||||||
| Gain on long-term investments, net | 39 | ||||||||||||||||||||||||||||||||||
| Other | (279) | ||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2021 | Net revenue | Cost of goods sold- Internal royalties | Cost of goods sold- Software development costs and royalties | Cost of goods sold- Licenses | Cost of goods sold- Product costs | Selling and marketing | |||||||||||||||||||||||||||||
| As reported | $ | 839,431 | $ | 158,128 | $ | 22,465 | $ | 53,841 | $ | 45,213 | $106,609 | ||||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | (54,889) | (5,836) | (455) | (4,501) | |||||||||||||||||||||||||||||||
| Stock-based compensation | 52,821 | (5,050) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (6,465) | (1,550) | |||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2021 | General and administrative | Research and development | Depreciation and amortization | Business reorganization | Interest and other, net | Gain on long-term investments, net | |||||||||||||||||||||||||||||
| As reported | $ | 98,453 | $ | 83,559 | $ | 15,480 | $ | (134) | $ | (3,226) | $ | 1,000 | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | 2,425 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | (14,262) | (4,147) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (1,718) | (238) | |||||||||||||||||||||||||||||||||
| Impact of business reorganization | 134 | ||||||||||||||||||||||||||||||||||
| Acquisition related expenses | (1,378) | ||||||||||||||||||||||||||||||||||
| Gain on long-term investments | (1,000) | ||||||||||||||||||||||||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Twelve Months Ended March 31, 2022 | Net revenue | Cost of goods sold- Internal royalties | Cost of goods sold- Software development costs and royalties | Cost of goods sold- Licenses | Cost of goods sold- Product costs | Selling and marketing | |||||||||||||||||||||||||||||
| As reported | $ | 3,504,800 | $ | 619,902 | $ | 417,431 | $ | 254,203 | $ | 243,865 | $ | 516,429 | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | (96,616) | (6,615) | (1,120) | (4,050) | |||||||||||||||||||||||||||||||
| Stock-based compensation | (48,381) | (30,027) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (50,751) | (5,250) | |||||||||||||||||||||||||||||||||
| Twelve Months Ended March 31, 2022 | General and administrative | Research and development | Depreciation and amortization | Business reorganization | Interest and other, net | Gain on long-term investments, net | |||||||||||||||||||||||||||||
| As reported | $ | 510,855 | $ | 406,566 | $ | 61,105 | $ | 849 | $ | (14,212) | $ | 6,015 | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | 2,999 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | (66,443) | (38,118) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (5,489) | (1,366) | |||||||||||||||||||||||||||||||||
| Impact of business reorganization | (849) | ||||||||||||||||||||||||||||||||||
| Acquisition related expenses | (72,819) | 6,475 | |||||||||||||||||||||||||||||||||
| Gain on long-term investments, net | (6,015) | ||||||||||||||||||||||||||||||||||
| Other | (279) | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended March 31, 2021 | Net revenue | Cost of goods sold- Internal royalties | Cost of goods sold- Software development costs and royalties | Cost of goods sold- Licenses | Cost of goods sold- Product costs | Selling and marketing | |||||||||||||||||||||||||||||
| As reported | $ | 3,372,772 | $ | 637,652 | $ | 396,797 | $ | 260,721 | $ | 239,915 | $444,985 | ||||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | 179,825 | 15,663 | (282) | (4,098) | |||||||||||||||||||||||||||||||
| Stock-based compensation | (8,707) | (18,348) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (20,587) | (3617) | |||||||||||||||||||||||||||||||||
| Twelve Months Ended March 31, 2021 | General and administrative | Research and development | Depreciation and amortization | Business reorganization | Interest and other, net | Gain on long-term investments, net | |||||||||||||||||||||||||||||
| As reported | $ | 390,683 | $ | 317,311 | $ | 55,596 | $ | (272) | $ | 8,796 | $ | 39,636 | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of goods sold | (2,874) | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | (56,830) | (26,587) | |||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (6,663) | (757) | |||||||||||||||||||||||||||||||||
| Impact of business reorganization | 272 | ||||||||||||||||||||||||||||||||||
| Acquisition related expenses | (7,317) | ||||||||||||||||||||||||||||||||||
| Gain on long-term investments | (39,636) | ||||||||||||||||||||||||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURE | ||||||||||||||
| (in thousands) | ||||||||||||||
| Twelve Months Ended March 31, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| Net cash from operating activities | $ | 257,984 | $ | 912,318 | ||||||||||
Net change in Restricted cash (1) | 166,948 | 7,965 | ||||||||||||
| Adjusted Unrestricted Operating Cash Flow | $ | 424,932 | $ | 920,283 | ||||||||||
| Twelve Months Ended March 31, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| Restricted cash beginning of period | $ | 637,363 | $ | 635,728 | ||||||||||
| Restricted cash end of period | 463,284 | 637,363 | ||||||||||||
| Restricted cash related to acquisitions | 7,131 | 9,600 | ||||||||||||
(1) Net change in Restricted cash | $ | 166,948 | $ | 7,965 | ||||||||||