Summary
Take-Two Interactive Software, Inc. reported strong performance for the nine months ended December 31, 2020, with net revenue increasing by 8.8% to $2.53 billion and net income growing to $370.1 million, up from $281.7 million in the prior year. Diluted EPS also saw a significant increase to $3.20 from $2.47. The company experienced a notable shift in revenue composition, with recurrent consumer spending (in-game purchases, virtual currency, add-on content) increasing to 59.5% of net revenue for the nine-month period, up from 41.8% in the prior year. Conversely, full game and other revenue decreased as a percentage of total revenue. The company also demonstrated solid operational execution, with operating cash flow significantly improving to $787.7 million from $440.0 million. The balance sheet remains robust, with cash and cash equivalents and restricted cash and cash equivalents totaling $2.51 billion at the end of the period. The acquisition of Playdots, Inc. in September 2020 for $195.5 million further strengthens Take-Two's mobile offerings. While the company faces ongoing risks related to customer concentration and the evolving hardware market, the results indicate strong underlying demand and successful strategic execution.
Financial Highlights
53 data points| Revenue | $860.89M |
| Cost of Revenue | $346.24M |
| Gross Profit | $514.64M |
| Operating Expenses | $338.59M |
| Operating Income | $176.06M |
| Net Income | $182.25M |
| EPS (Basic) | $1.58 |
| EPS (Diluted) | $1.57 |
| Shares Outstanding (Basic) | 115.00M |
| Shares Outstanding (Diluted) | 116.12M |
Key Highlights
- 1Net revenue for the nine months ended December 31, 2020, increased by 8.8% to $2.53 billion, compared to $2.33 billion in the prior year.
- 2Net income for the nine months ended December 31, 2020, rose to $370.1 million, a significant increase from $281.7 million in the prior year.
- 3Diluted earnings per share (EPS) improved to $3.20 for the nine months ended December 31, 2020, up from $2.47 in the prior year.
- 4Recurrent consumer spending revenue grew substantially, representing 59.5% of total net revenue for the nine-month period, up from 41.8% in the prior year, indicating a successful shift towards ongoing player engagement.
- 5Net cash provided by operating activities significantly increased to $787.7 million for the nine months ended December 31, 2020, up from $440.0 million in the prior year.
- 6The company ended the period with a strong liquidity position, holding $2.51 billion in cash, cash equivalents, and restricted cash and cash equivalents.
- 7Acquisition of Playdots, Inc. in September 2020 for $195.5 million enhances the company's mobile game portfolio and is expected to contribute to future growth.