01—Abstract
Summary
Summary of the 10-K filed May 22, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb 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%c of net revenue, underscoring a shift towards sustained player engagement and revenue.
02—Key points
Key Highlights
- Net 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.
- The 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.
- Recurrent consumer spending (RCS) remains a strong revenue driver, accounting for 78.8% of net revenue, reflecting a successful strategy of driving ongoing player engagement.
- The company announced a pending acquisition of Gearbox Entertainment, expected to close in Q1 Fiscal 2025, to enhance its intellectual property portfolio.
- Mobile 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.
- Cash and cash equivalents stood at $1.10 billion as of March 31, 2024, providing liquidity for operations and strategic initiatives.
- The company is managing its debt obligations, having completed several senior note offerings and refinancing activities during the fiscal year.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Take Two Interactive Software Inc lost $0.70.
- Revenue$5.35B100.0%
- Cost of revenue−$3.11B58.1%
- Gross profit$2.24B41.9%
- Operating costs−$5.83B109.0%
- Operating income−$3.59B67.1%
- Interest, other & tax−$153.6M2.9%
- Net income−$3.74B70.0%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed May 22, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.35B$5.35B | 0.0% |
| Cost of Revenue | $3.11B$3.06B | +1.4% |
| Gross Profit | $2.24B$2.29B | −1.9% |
| Operating Expenses | $5.83B$3.45B | +69.0% |
| Operating Income | -$3.59B-$1.17B | −208.2% |
| Interest Expense | $132.00M$108.60M | +21.5% |
| Net Income | -$3.74B-$1.12B | −232.9% |
| EPS (Basic) | $-22.01$-7.03 | −213.1% |
| EPS (Diluted) | $-22.01$-7.03 | −213.1% |
| Shares Outstanding (Basic) | 170.10M159.90M | +6.4% |
| Shares Outstanding (Diluted) | 170.10M159.90M | +6.4% |
05—Questions
Frequently Asked Questions
What is the financial performance of Take-Two Interactive Software for the fiscal year ended March 31, 2024?
Take-Two Interactive Software reported net revenue of $5.35 billion, which was largely flat compared to the prior fiscal year. However, the company incurred a substantial net loss of $3.74 billion. This loss was significantly influenced by a goodwill impairment charge of $2.34 billion recognized during the period, reflecting a reassessment of asset values.
What are the company's key strategic priorities and upcoming major releases?
The company's strategy focuses on developing and publishing high-quality interactive entertainment through its labels like Rockstar Games and 2K. A major upcoming release is Grand Theft Auto VI, scheduled for Fall 2025, which is expected to be a significant revenue driver. The company also continues to emphasize recurrent consumer spending through in-game purchases and add-on content.
How is the Gearbox Entertainment acquisition expected to impact the company?
The pending acquisition of Gearbox Entertainment, expected to close in the first quarter of fiscal year 2025, aims to strengthen Take-Two's intellectual property portfolio. By bringing popular franchises under its umbrella, Take-Two expects to further diversify and enhance its offerings, particularly in the shooter genre.
What is the company's financial health and liquidity position?
As of March 31, 2024, Take-Two Interactive Software had $1.10 billion in cash and cash equivalents. The company has been actively managing its debt, completing several senior note offerings and refinancing activities. The overall liquidity appears sufficient to support ongoing operations and strategic investments, although the significant net loss and impairment charge warrant careful monitoring.
06—Continue