Take-Two Interactive Software, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Take-Two Interactive Software reported a net loss of $1.06 billion for the first nine months of fiscal year 2024, despite a slight increase in net revenue to $2.71 billion.</b>

AI Summary

TAKE TWO INTERACTIVE SOFTWARE INC (TTWO) filed a Quarterly Report (10-Q) with the SEC on February 9, 2024. Net revenue for the nine months ended December 31, 2023, was $2.71 billion. Net revenue for the three months ended December 31, 2023, was $1.37 billion. Net revenue for the nine months ended December 31, 2022, was $2.57 billion. Net revenue for the three months ended December 31, 2022, was $1.45 billion. The company reported a net loss of $1.06 billion for the nine months ended December 31, 2023.

Why It Matters

For investors and stakeholders tracking TAKE TWO INTERACTIVE SOFTWARE INC, this filing contains several important signals. The significant net loss indicates potential challenges in profitability, possibly due to increased operating expenses, development costs, or one-time charges. The slight increase in net revenue suggests continued demand for their gaming products, but the overall financial performance is overshadowed by the substantial loss.

Risk Assessment

Risk Level: high — TAKE TWO INTERACTIVE SOFTWARE INC shows elevated risk based on this filing. The company reported a substantial net loss of $1.06 billion for the nine months ended December 31, 2023, indicating significant financial challenges.

Analyst Insight

Investors should monitor future earnings reports closely to see if Take-Two Interactive can improve its profitability and reduce its net loss.

Financial Highlights

revenue

2.71B

net Income

-1.06B

Key Numbers

• 2.71 — Net Revenue (9 months ended 2023-12-31) (in billions USD)
• 1.37 — Net Revenue (3 months ended 2023-12-31) (in billions USD)
• 2.57 — Net Revenue (9 months ended 2022-12-31) (in billions USD)
• 1.45 — Net Revenue (3 months ended 2022-12-31) (in billions USD)
• -1.06 — Net Loss (9 months ended 2023-12-31) (in billions USD)

Key Players & Entities

• TAKE TWO INTERACTIVE SOFTWARE INC (company) — Filer name
• TTWO (company) — Ticker symbol
• 20231231 (date) — Conformed period of report
• 2024-02-09 (date) — Filed as of date
• $2.71 billion (dollar_amount) — Net revenue for the nine months ended December 31, 2023
• $1.37 billion (dollar_amount) — Net revenue for the three months ended December 31, 2023
• $1.06 billion (dollar_amount) — Net loss for the nine months ended December 31, 2023

Forward-Looking Statements

• Take-Two will launch a major new game title or significant content update in the near future. (Take-Two Interactive Software Inc.) — medium confidence, target: 2024-06-30

FAQ

Risk Factors

• Net Loss [high — financial]: The company reported a significant net loss of $1.06 billion for the nine months ended December 31, 2023.

Key Dates

• 2023-12-31: End of Reporting Period — Third quarter of fiscal year 2024
• 2024-02-09: Filing Date — 10-Q filing date

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value TTWO NASDAQ Global Select Mar

Filing Documents

• ttwo-20231231.htm (10-Q) — 1854KB
• a12312023ttwoex-31x1.htm (EX-31.1) — 10KB
• a12312023ttwoex-31x2.htm (EX-31.2) — 10KB
• a12312023ttwoex-32x1.htm (EX-32.1) — 5KB
• a12312023ttwoex-32x2.htm (EX-32.2) — 5KB
• 0001628280-24-003951.txt (&nbsp;) — 9378KB
• ttwo-20231231.xsd (EX-101.SCH) — 62KB
• ttwo-20231231_cal.xml (EX-101.CAL) — 99KB
• ttwo-20231231_def.xml (EX-101.DEF) — 306KB
• ttwo-20231231_lab.xml (EX-101.LAB) — 755KB
• ttwo-20231231_pre.xml (EX-101.PRE) — 515KB
• ttwo-20231231_htm.xml (XML) — 1565KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Condensed Consolidated Balance Sheets 2 Condensed Consolidated Statements of Operations 3 Condensed Consolidated Statements of Comprehensive Income ( Loss ) 4 Condensed Consolidated Statements of Cash Flows 5 Condensed Consolidated Statements of Equity 6 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 43 PART II. OTHER INFORMATION 44 Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 5. Other Information 44 Item 6. Exhibits 46

Signatures

Signatures 47 (All other items in this report are inapplicable) 1 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TAKE-TWO INTERACTIVE SOFTWARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) December 31, 2023 March 31, 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 898.7 $ 827.4 Short-term investments 23.5 187.0 Restricted cash and cash equivalents 184.6 307.6 Accounts receivable, net of allowances of $ 1.2 and $ 1.3 at December 31, 2023 and March 31, 2023, respectively 666.3 763.2 Software development costs and licenses 69.9 65.9 Contract assets 88.7 79.9 Prepaid expenses and other 286.8 277.1 Total current assets 2,218.5 2,508.1 Fixed assets, net 400.4 402.8 Right-of-use assets 316.6 282.7 Software development costs and licenses, net of current portion 1,444.3 1,072.2 Goodwill 6,614.2 6,767.1 Other intangibles, net 3,546.9 4,453.2 Deferred tax assets 7.1 44.8 Long-term restricted cash and cash equivalents 106.5 99.6 Other assets 241.2 231.6 Total assets $ 14,895.7 $ 15,862.1 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 151.8 $ 140.1 Accrued expenses and other current liabilities 1,022.2 1,225.7 Deferred revenue 1,081.2 1,078.8 Lease liabilities 64.0 60.2 Short-term debt, net 373.2 1,346.8 Total current liabilities 2,692.4 3,851.6 Long-term debt, net 2,708.2 1,733.0 Non-current deferred revenue 61.3 35.5 Non-current lease liabilities 380.7 347.0 Non-current software development royalties 100.8 110.2 Deferred tax liabilities, net 223.0 534.0 Other long-term liabilities 220.7 208.3 Total liabilities $ 6,387.1 $ 6,819.6 Commitments and contingencies (See Note 11 ) Stockholders' equity: Preferred stock, $ 0.01 par value, 5.0 shares authorized; no shares issued and outstanding at December 31, 2023 and March 31, 2023 — — Common stock, $ 0.01 par value, 300.0 and 300.0 shares authorized; 194.2 and 192.6 shares issued and 170.5 and 168.9 outstanding at December 31, 2023 and March 31, 2023, respectively 1.9 1.9 Additiona

View Full Filing

View this 10-Q filing on SEC EDGAR