10-KPeriod: FY2021

TAKE TWO INTERACTIVE SOFTWARE INC Annual Report, Year Ended Mar 31, 2021

Filed May 19, 2021For Securities:TTWO

Summary

Take-Two Interactive Software, Inc. (TTWO) demonstrated robust financial performance in the fiscal year ending March 31, 2021, with net revenue increasing by 9.2% to $3.37 billion, driven by strong performance in its key franchises like NBA 2K and Grand Theft Auto. The company continues to benefit from the shift towards digital distribution, with digital online channels accounting for 86.6% of net revenue. Recurrent consumer spending, encompassing virtual currency and in-game purchases, also saw significant growth, comprising 61.5% of net revenue, indicating a successful transition to a more stable revenue model. The company reported a substantial increase in net income to $588.9 million, reflecting improved operational efficiency and revenue growth. Looking ahead, Take-Two is investing in new content for its established franchises and expanding its offerings across various platforms. The acquisition of Playdots further strengthens its mobile gaming segment. While facing industry competition and the ongoing impact of economic conditions, the company appears well-positioned to capitalize on the continued growth in interactive entertainment.

Financial Statements
Beta
Revenue$3.37B
Cost of Revenue$1.54B
Gross Profit$1.84B
Operating Expenses$1.21B
Operating Income$629.40M
Net Income$588.90M
EPS (Basic)$5.14
EPS (Diluted)$5.09
Shares Outstanding (Basic)114.60M
Shares Outstanding (Diluted)115.70M

Key Highlights

  • 1Net revenue increased by 9.2% to $3.37 billion for the fiscal year ended March 31, 2021.
  • 2Net income grew to $588.9 million, up from $404.5 million in the prior year.
  • 3Digital online channels accounted for 86.6% of net revenue, highlighting a strong shift towards digital distribution.
  • 4Recurrent consumer spending (virtual currency, add-on content, in-game purchases) represented 61.5% of net revenue, indicating successful monetization of live services.
  • 5The company's top franchises, including NBA 2K, Grand Theft Auto, and Red Dead Redemption, remain key drivers of revenue.
  • 6Acquisition of Playdots strengthens the company's mobile gaming portfolio.
  • 7Significant investment in software development continues, with $490.9 million in capitalized costs at March 31, 2021.

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