Summary
Take-Two Interactive Software, Inc. (TTWO) reported its annual results for the fiscal year ended March 31, 2024, highlighting a year of significant investment and strategic development. While net revenue remained largely flat at $5.35 billion, the company incurred a substantial net loss of $3.74 billion, largely driven by a significant goodwill impairment charge of $2.34 billion. This impairment reflects a reassessment of certain reporting units' value in light of industry conditions and strategic shifts. Despite the net loss, the company continues to invest heavily in its development pipeline, with a strong focus on its core franchises like Grand Theft Auto, Red Dead Redemption, and the NBA 2K series. The upcoming release of Grand Theft Auto VI in Fall 2025 is a key strategic focus and a significant anticipated revenue driver. The company is also actively managing its debt, having completed several senior note offerings and refinancing activities. Financially, the company ended the fiscal year with $1.10 billion in cash and cash equivalents. A notable recent development is the pending acquisition of Gearbox Entertainment, which is expected to close in the first quarter of fiscal year 2025, aiming to further bolster its intellectual property portfolio. The company continues to emphasize recurrent consumer spending through add-on content and in-game purchases, which represented approximately 78.8% of net revenue, underscoring a shift towards sustained player engagement and revenue.
Financial Highlights
56 data points| Revenue | $5.35B |
| Cost of Revenue | $3.11B |
| Gross Profit | $2.24B |
| Operating Expenses | $5.83B |
| Operating Income | -$3.59B |
| Interest Expense | $132.00M |
| Net Income | -$3.74B |
| EPS (Basic) | $-22.01 |
| EPS (Diluted) | $-22.01 |
| Shares Outstanding (Basic) | 170.10M |
| Shares Outstanding (Diluted) | 170.10M |
Key Highlights
- 1Net revenue for the fiscal year ended March 31, 2024, was $5.35 billion, flat year-over-year, but was impacted by a significant goodwill impairment charge of $2.34 billion, contributing to a net loss of $3.74 billion.
- 2The company is strategically focused on its key franchises, with Grand Theft Auto and Red Dead Redemption continuing to be major contributors, and anticipates the release of Grand Theft Auto VI in Fall 2025.
- 3Recurrent consumer spending (RCS) remains a strong revenue driver, accounting for 78.8% of net revenue, reflecting a successful strategy of driving ongoing player engagement.
- 4The company announced a pending acquisition of Gearbox Entertainment, expected to close in Q1 Fiscal 2025, to enhance its intellectual property portfolio.
- 5Mobile revenue saw a notable increase, up $209.4 million, now representing 51.4% of total net revenue, largely driven by the Zynga acquisition and its titles.
- 6Cash and cash equivalents stood at $1.10 billion as of March 31, 2024, providing liquidity for operations and strategic initiatives.
- 7The company is managing its debt obligations, having completed several senior note offerings and refinancing activities during the fiscal year.