Summary
Take-Two Interactive Software, Inc. (TTWO) reported its second-quarter results for fiscal year 2022, ending September 30, 2021. The company generated net revenue of $858.2 million, a slight increase of 2.0% year-over-year, primarily driven by growth in recurrent consumer spending and mobile segments, offsetting a decline in full game and physical retail sales. The company's net income for the quarter significantly decreased to $10.3 million from $99.3 million in the prior year, resulting in diluted EPS of $0.09 compared to $0.86. This decline was largely influenced by increased operating expenses, including higher selling, general, and administrative, and research and development costs, as well as a significant increase in the fair value of contingent earn-out liabilities related to the Nordeus acquisition. Despite the sequential earnings decline, the company's balance sheet remains robust with $1.7 billion in cash and cash equivalents and restricted cash, and it continues to execute on its strategic growth initiatives, including ongoing development and marketing for key franchises.
Financial Highlights
54 data points| Revenue | $858.20M |
| Cost of Revenue | $456.70M |
| Gross Profit | $401.50M |
| Operating Expenses | $381.40M |
| Operating Income | $20.10M |
| Net Income | $10.20M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 115.80M |
| Shares Outstanding (Diluted) | 116.80M |
Key Highlights
- 1Net revenue for the quarter was $858.2 million, a 2.0% increase year-over-year, driven by recurrent consumer spending and mobile growth.
- 2Net income declined significantly to $10.3 million from $99.3 million in the prior year's quarter.
- 3Diluted EPS decreased to $0.09 from $0.86 in the comparable prior year period.
- 4Operating expenses increased significantly, with Selling & Marketing up 19.6%, General & Administrative up 39.3%, and R&D up 36.8% year-over-year for the quarter.
- 5The company completed the acquisition of Nordeus in June 2021 for an aggregate fair value of $289.8 million, which includes a significant contingent earn-out consideration.
- 6Net Bookings decreased by 13.2% year-over-year for the six-month period, primarily due to lower bookings from Grand Theft Auto V and Online, and NBA 2K.
- 7The company continued its share repurchase program, spending $200.0 million during the quarter.