Summary
Take-Two Interactive Software, Inc. (TTWO) reported its third-quarter fiscal year 2024 results, ending December 31, 2023. The company experienced a net loss of $91.6 million for the quarter, a slight improvement from the $153.4 million net loss in the same period last year. Total net revenue was $1.37 billion, down 2.9% year-over-year, primarily due to lower contributions from mobile games and console titles, partially offset by strong performance in the Grand Theft Auto and Red Dead Redemption franchises. The company also recognized a significant goodwill impairment charge of $165.4 million and intangible asset impairments totaling $273.1 million for the nine-month period, reflecting challenges in certain game titles. Despite the quarterly revenue decline, Net Bookings, a key operating metric, saw a modest increase of 2.4% for the nine-month period, driven by the inclusion of Zynga and recent mobile game launches. The company's balance sheet shows robust liquidity with cash and cash equivalents totaling $1.19 billion. Debt levels remain significant, with long-term debt at $2.71 billion, though the company recently completed an add-on offering of senior notes and intends to use proceeds for general corporate purposes, including the retirement of maturing debt. Investors will be closely watching the upcoming release of Grand Theft Auto VI in 2025 as a major potential catalyst for future growth.
Financial Highlights
53 data points| Revenue | $1.37B |
| Cost of Revenue | $688.20M |
| Gross Profit | $678.10M |
| Operating Expenses | $807.60M |
| Operating Income | -$129.50M |
| Interest Expense | $31.10M |
| Net Income | -$91.60M |
| EPS (Basic) | $-0.54 |
| EPS (Diluted) | $-0.54 |
| Shares Outstanding (Basic) | 170.30M |
Key Highlights
- 1Net loss for the three months ended December 31, 2023, was $91.6 million, an improvement from $153.4 million in the prior year period.
- 2Total net revenue for the quarter decreased by 2.9% year-over-year to $1.37 billion, impacted by lower mobile and console game revenue.
- 3Net Bookings, an operating metric, increased by 2.4% for the nine months ended December 31, 2023, driven by Zynga's performance and new mobile titles.
- 4The company recognized significant impairment charges totaling $165.4 million for goodwill and $273.1 million for intangible assets during the nine-month period.
- 5Cash and cash equivalents stood at $1.19 billion as of December 31, 2023, indicating strong liquidity.
- 6Long-term debt remained substantial at $2.71 billion as of December 31, 2023.
- 7Grand Theft Auto VI is slated for release in 2025, representing a significant future growth driver.