Take-Two Interactive Q2 Revenue Dips Slightly to $1.32B

TL;DR

TTWO Q2 revenue $1.32B, down slightly YoY. Cash flow strong at $331.5M YTD.

AI Summary

Take-Two Interactive Software Inc. reported its second quarter results for fiscal year 2025, ending September 30, 2024. The company's net revenue for the quarter was $1.32 billion, a decrease from $1.35 billion in the same period last year. Operating cash flow for the six months ended September 30, 2024, was $331.5 million.

Why It Matters

This filing provides insight into Take-Two's financial performance in a key quarter, impacting investor sentiment and future strategic decisions for its gaming portfolio.

Risk Assessment

Risk Level: medium — The company's revenue has seen a slight decrease, and the gaming industry is highly competitive and subject to changing consumer preferences.

Key Numbers

• $1.32B — Net Revenue (Q2 FY25) (Represents revenue for the quarter ending September 30, 2024.)
• $1.35B — Net Revenue (Q2 FY24) (Represents revenue for the comparable prior year quarter.)
• $331.5M — Operating Cash Flow (YTD FY25) (Represents cash generated from operations for the first six months of fiscal year 2025.)

Key Players & Entities

• Take-Two Interactive Software Inc. (company) — Filer of the 10-Q report
• 110 WEST 44TH STREET (location) — Company's business and mail address
• New York (location) — City of company's business and mail address
• 10036 (location) — ZIP code of company's business and mail address
• $1.32 billion (dollar_amount) — Net revenue for the quarter ended September 30, 2024
• $1.35 billion (dollar_amount) — Net revenue for the same period last year
• $331.5 million (dollar_amount) — Operating cash flow for the six months ended September 30, 2024

FAQ

Key Financial Figures

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

Filing Documents

• ttwo-20240930.htm (10-Q) — 1720KB
• a09302024ttwoex-31x1.htm (EX-31.1) — 10KB
• a09302024ttwoex-31x2.htm (EX-31.2) — 10KB
• a09302024ttwoex-32x1.htm (EX-32.1) — 5KB
• a09302024ttwoex-32x2.htm (EX-32.2) — 5KB
• 0001628280-24-045867.txt ( ) — 8907KB
• ttwo-20240930.xsd (EX-101.SCH) — 59KB
• ttwo-20240930_cal.xml (EX-101.CAL) — 91KB
• ttwo-20240930_def.xml (EX-101.DEF) — 284KB
• ttwo-20240930_lab.xml (EX-101.LAB) — 689KB
• ttwo-20240930_pre.xml (EX-101.PRE) — 502KB
• ttwo-20240930_htm.xml (XML) — 1456KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Condensed Consolidated Balance Sheets 2 Condensed Consolidated Statements of Operations 3 Condensed Consolidated Statements of Comprehensive 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 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 40 PART II. OTHER INFORMATION 42 Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 5. Other Information 42 Item 6. Exhibits 43

Signatures

Signatures 44 (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) September 30, 2024 March 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 876.1 $ 754.0 Short-term investments 3.5 22.0 Restricted cash and cash equivalents 357.5 252.1 Accounts receivable, net of allowances of $ 1.3 and $ 1.2 at September 30, 2024 and March 31, 2024, respectively 858.9 679.7 Software development costs and licenses 96.9 88.3 Contract assets 79.4 85.0 Prepaid expenses and other 433.4 378.6 Total current assets 2,705.7 2,259.7 Fixed assets, net 433.5 411.1 Right-of-use assets 336.6 325.7 Software development costs and licenses, net of current portion 1,731.2 1,446.5 Goodwill 4,648.7 4,426.4 Other intangibles, net 2,896.5 3,060.6 Long-term restricted cash and cash equivalents 86.0 95.9 Other assets 237.1 191.0 Total assets $ 13,075.3 $ 12,216.9 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 177.1 $ 195.9 Accrued expenses and other current liabilities 1,300.3 1,062.6 Deferred revenue 1,064.9 1,059.5 Lease liabilities 59.0 63.8 Short-term debt, net 599.2 24.6 Total current liabilities 3,200.5 2,406.4 Long-term debt, net 3,055.9 3,058.3 Non-current deferred revenue 34.7 42.9 Non-current lease liabilities 398.3 387.3 Non-current software development royalties 91.2 102.1 Deferred tax liabilities, net 281.9 340.9 Other long-term liabilities 214.3 211.1 Total liabilities $ 7,276.8 $ 6,549.0 Commitments and contingencies (See Note 11 ) Stockholders' equity: Preferred stock, $ 0.01 par value, 5.0 shares authorized; no shares issued and outstanding at September 30, 2024 and March 31, 2024 — — Common stock, $ 0.01 par value, 300.0 and 300.0 shares authorized; 199.2 and 194.5 shares issued and 175.5 and 170.8 outstanding at September 30, 2024 and March 31, 2024, respectively 2.0 1.9 Additional paid-in capital 10,063.4 9,371

View Full Filing

View this 10-Q filing on SEC EDGAR