Summary
Take-Two Interactive Software Inc. (TTWO) reported strong financial results for the quarter ended June 30, 2020, with net revenue increasing by 53.8% year-over-year to $831.3 million. This significant growth was driven by robust sales from key franchises like Grand Theft Auto (including GTA Online and GTA V), NBA 2K, Borderlands 3, and Red Dead Redemption 2 (including Red Dead Online). The company also saw a substantial increase in net cash provided by operating activities, reaching $445.4 million, up from $108.5 million in the prior year period. This indicates strong operational performance and efficient cash generation. The company's strategic shift towards digital distribution continues to yield positive results, with digital online revenue accounting for 87.4% of total net revenue, up from 79.2% in the prior year. Recurrent consumer spending, which includes in-game purchases and add-on content, also showed strong performance, contributing 57.7% to net revenue. Despite an increase in cost of goods sold, the company managed its operating expenses effectively, leading to a significant increase in net income to $88.5 million from $46.3 million in the comparable prior-year period, with diluted EPS rising to $0.77 from $0.41.
Financial Highlights
51 data points| Revenue | $831.31M |
| Cost of Revenue | $476.69M |
| Gross Profit | $354.62M |
| Operating Expenses | $272.48M |
| Operating Income | $82.14M |
| Net Income | $88.50M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 113.86M |
| Shares Outstanding (Diluted) | 114.96M |
Key Highlights
- 1Net revenue surged by 53.8% to $831.3 million, driven by strong performance of key franchises like Grand Theft Auto and NBA 2K.
- 2Digital online revenue represented 87.4% of total net revenue, highlighting the company's successful transition to digital distribution.
- 3Recurrent consumer spending continued to be a major revenue driver, accounting for 57.7% of net revenue.
- 4Net income more than doubled to $88.5 million, leading to a significant increase in diluted EPS to $0.77.
- 5Net cash provided by operating activities dramatically increased to $445.4 million, showcasing robust operational cash generation.
- 6The company maintained a strong balance sheet with $1.4 billion in cash and cash equivalents and $880.8 million in short-term investments.
- 7Despite increased cost of goods sold, operating expenses were managed effectively, with selling and marketing expenses decreasing year-over-year.