GAAP Net revenue grew 34% to $418.2 million
GAAP Net income increased to $0.56 per diluted
share
Net Sales grew 28% to $348.3 million
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported
strong results for its fiscal first quarter 2018, ended June 30,
2017. In addition, the Company provided its initial financial
outlook for its fiscal second quarter ending September 30, 2017,
and updated its financial outlook for its fiscal year ending March
31, 2018.
Fiscal First Quarter 2018 GAAP
Financial Highlights
Net revenue grew 34% to $418.2 million, as compared to $311.6
million in last year’s fiscal first quarter. The largest
contributors to net revenue in fiscal first quarter 2018 were NBA®
2K17, Grand Theft Auto V® and Grand Theft Auto Online, WWE® 2K17
and WWE SuperCard, and Mafia III.
Digitally-delivered net revenue grew 56% to $268.2 million, as
compared to $172.1 million in last year’s fiscal first quarter.
Recurrent consumer spending (virtual currency, downloadable add-on
content and microtransactions) grew 72% year-over-year and
accounted for 63% of digitally-delivered net revenue, or 41% of
total net revenue. The largest contributors to digitally-delivered
net revenue in fiscal first quarter 2018 were Grand Theft Auto
Online and Grand Theft Auto V, NBA 2K17, and WWE SuperCard and WWE
2K17.
Net income increased to $60.3 million, or $0.56 per diluted
share, as compared to net loss of $38.6 million, or $0.46 per
diluted share, for the comparable period last year.
As of June 30, 2017, the Company had cash and short-term
investments of $1.281 billion.
The following data, together with a management reporting tax
rate of 22%, are used internally by the Company’s management and
Board of Directors to adjust the Company’s GAAP financial results
in order to facilitate comparison of its operating performance
between periods and to better understand its core business and
future outlook:
Three Months Ended June 30, 2017
Financial Data $ in thousands
Statement of
Operations
Change in deferred net
revenue and related cost of goods sold
Stock-based compensation
Non-cash amounts related
to convertible notes
Acquisition related
expenses
Amortization of intangible
assets
Business reorganization
excluding stock-based compensation
Net revenue $ 418,216 (69,911 ) Cost of goods sold
194,569 (40,291 ) (3,481 )
(4,242 )
Gross
profit 223,647 (29,620 ) 3,481
4,242 Total operating expenses 173,428
(20,590 ) (1) (18 )
(3,951 ) (8,178 )
Income from
operations 50,219 (29,620 ) 24,071
18 8,193 8,178 Interest and other, net
(2,808 ) 4,134
Income before income taxes
47,411 (29,620 ) 24,071 4,134
18 8,193 8,178 1) Includes $2,421 of
stock-based compensation related to business reorganization.
In order to calculate net income per diluted share for
management reporting purposes, the Company uses its fully diluted
share count of 118.8 million and adds back to net income the
interest expense, net of tax, on the convertible notes of $0.4
million.
Operational Metric – Net
Sales
Starting with fiscal first quarter 2018, Take-Two has replaced
Bookings with Net Sales as an operational metric. The Company has
made this change in order to increase transparency and to be
consistent with operational metrics provided by its peers. Net
Sales is defined as the net amount of products and services sold
digitally or sold-in physically during the period. Unlike Bookings,
Net Sales includes licensing fees, merchandise, in-game
advertising, strategy guides and publisher incentives.
During fiscal first quarter 2018, total Net Sales grew 28% to
$348.3 million, as compared to $272.6 million during last year’s
fiscal first quarter. The largest contributors to Net Sales were
Grand Theft Auto Online and Grand Theft Auto V, NBA 2K17, Dragon
City and Monster Legends, WWE 2K17 and WWE SuperCard, Mafia III,
and Sid Meier’s Civilization VI. Catalog accounted for $326.2
million of Net Sales led by Grand Theft Auto and NBA 2K.
Digitally-delivered Net Sales grew 47% to $280.9 million, as
compared to $191.2 million in last year’s fiscal first quarter, led
by Grand Theft Auto Online and Grand Theft Auto V, NBA 2K17,
Monster Legends and Dragon City, WWE SuperCard and WWE 2K17, and
Mafia III. Net Sales from recurrent consumer spending grew 71%
year-over-year and accounted for 72% of digitally-delivered Net
Sales, or 58% of total Net Sales.
Management Comments
“Fiscal 2018 is off to an excellent start, with our business’s
positive momentum continuing to exceed our expectations in the
first quarter,” said Strauss Zelnick, Chairman and CEO of Take-Two.
“We delivered growth in both Net Sales and net revenue, as well as
margin expansion. Our results were led by the ongoing extraordinary
performance of Grand Theft Auto V and Grand Theft Auto Online,
strong demand for NBA 2K17 – which is now our highest-selling
sports title ever – and increased recurrent consumer spending.
“As a result of our stronger-than-expected first quarter
operating results and improved outlook for the remainder of the
year, we are increasing our fiscal 2018 outlook for Net Sales and
net cash provided by operating activities. Looking ahead, we expect
fiscal 2019 to be a record year for Net Sales and net cash provided
by operating activities led by the launches of Rockstar Games’ Red
Dead Redemption 2 and a highly anticipated new title from one of
2K’s biggest franchises. We have a robust development pipeline and
are better positioned than ever for long-term growth and margin
expansion.”
Business and Product
Highlights
Since April 1, 2017:
Take-Two:
- Further diversified its
industry-leading portfolio of owned intellectual property through
the acquisition of Kerbal Space Program, the critically acclaimed
physics-based space simulation game. Created by independent
developer Squad, Kerbal Space Program was originally released on PC
in April 2015* and has sold over two million units to date. The
title has been widely popular with the media and consumers alike,
earning a Metacritic rating of 88** and a Steam user score of
97%***. The Kerbal Space Program: Making History Expansion is
planned to launch for PC later this calendar year.
*Game became available through Steam Early
Access in March 2013, and launched in April 2015.
**Metacritic score for PC as of July 31,
2017.
***Steam user score as of July 31,
2017.
Rockstar Games:
- Released new free content updates for
Grand Theft Auto Online, including:
- Gunrunning, a massive update offering
new opportunities in illegal weapons trafficking gameplay and
featuring tactical, full-service Mobile Operation Centers complete
with new weapon upgrades and deep customization, all new Weaponized
Vehicles and much more.
- Dawn Raid, a two-team race under the
cover of darkness to track down highly coveted contraband involving
parachutes, Night and Thermal Vision Goggles and the Trackify app
to locate the correct package.
- Overtime Rumble, a new team-based fan
favorite mode that pits up to 10 players in a vehicular remix of
Darts as players try to land the Ruiner 2000 on platforms of
various sizes.
- Power Mad, a point-based battle where
players on each team fight for the right to control the
minigun-toting Juggernaut.
- Announced that Red Dead Redemption 2®
is planned for release worldwide in spring 2018 (fiscal year 2019)
for PlayStation®4 and Xbox One.
2K:
- Released two downloadable add-on packs
for Mafia III – Stones Unturned and Sign of the Times – which are
available for individual purchase or as part of the title’s Season
Pass.
- Announced Seth Rollins as the cover
Superstar for WWE 2K18, the next release from its flagship WWE
video game franchise, which will launch on October 17, 2017 for
PlayStation 4 and Xbox One. Players who purchase the WWE 2K18
Deluxe Edition or WWE 2K18 Collector’s Edition from participating
retailers will receive Early Access to their game copies
and in-game bonuses beginning four days early on October 13,
2017. In addition, WWE 2K18 will be released for Nintendo Switch™
during fall 2017, marking the first time in five years that a WWE
game has been available on a Nintendo platform. The title will be
supported with a series of post-launch content, including a Season
Pass.
- Announced that Cleveland
Cavaliers point guard, Kyrie Irving, will be the cover athlete
of NBA 2K18, the next iteration of its top-rated and
top-selling NBA video game simulation series, which will
launch on September 19, 2017 for PlayStation 4, PlayStation 3, Xbox
One, Xbox 360, Nintendo Switch, and Windows PC platforms. In
addition, Hall of Famer Shaquille O’Neal will be on the cover of
the NBA 2K18 Legend Edition. This special edition will place a
spotlight on “The Big Aristotle” with special Shaq-themed
memorabilia and content, extending his legacy as the most dominant
center in NBA history. NBA 2K18 will also debut the series’
first-ever Canadian cover, featuring Toronto Raptors’ shooting
guard DeMar DeRozan.
- Announced that XCOM® 2: War of the
Chosen, the expansion pack for the 2016 award-winning strategy
title from Firaxis Games, will be available for Windows PC,
PlayStation 4 and Xbox One on August 29, 2017.
Financial Outlook for Fiscal
2018
Take-Two is providing its initial financial outlook for its
fiscal second quarter ending September 30, 2017, and updating its
financial outlook for its fiscal year ending March 31, 2018, as
follows:
Second Quarter Ending September 30, 2017
- GAAP net revenue is expected to range
from $400 to $450 million
- GAAP net income is expected to range
from $17 to $27 million
- GAAP diluted net income per share is
expected to range from $0.15 to $0.25
- Share count used to calculate GAAP
diluted net income per share is expected to be 109.9 million
(1)
- Net Sales (operational metric) are
expected to range from $465 to $515 million
The Company is also providing selected data and its management
reporting tax rate of 22% that are used internally by its
management and Board of Directors to adjust the Company’s GAAP
financial outlook in order to facilitate comparison of its
operating performance between periods and to better understand its
core business and future outlook:
Three Months Ending September 30, 2017
Financial Data $ in millions
GAAP outlook (2)
Change in deferred net
revenue and related cost of goods sold
Stock-based compensation
(3)
Non-cash amounts related to
convertible notes
Amortization of intangible
assets
Net revenue $400 to $450 $65
Cost of goods sold $194 to $222 $22
($8) ($4) Operating Expenses $185 to
$195 ($18) ($4) Interest and other,
net $2 ($3) Income (loss) before income
taxes $19 to $31 $43 $26 $3
$8
Fiscal Year Ending March 31, 2018
As a result of its better-than-expected fiscal first quarter
2018 operating performance and improved outlook for the remainder
of the fiscal year, Take-Two is increasing its fiscal year 2018
outlook for Net Sales and net cash provided by operating
activities. In addition, due to the continued success of Grand
Theft Auto Online and other factors, the Company has determined
that it is necessary to extend the life of Grand Theft Auto V and
Grand Theft Auto Online for purposes of calculating deferrals. As a
result, and also due to higher expected internal royalties driven
by the strong performance of Grand Theft Auto V and Grand Theft
Auto Online, the Company is reducing its outlook for GAAP net
revenue and GAAP net income.
- GAAP net revenue is expected to range
from $1.62 to $1.72 billion
- GAAP net income is expected to range
from $112 to $140 million
- GAAP diluted net income per share is
expected to range from $1.00 to $1.25
- Share count used to calculate GAAP
diluted net income per share is expected to be 111.8 million
(4)
- Net cash provided by operating
activities is expected to be approximately $200 million
- Capital expenditures are expected to be
approximately $60 million
- Net Sales (operational metric) are
expected to range from $1.65 to $1.75 billion
The Company is also providing selected data and its management
reporting tax rate of 22% that are used internally by its
management and Board of Directors to adjust the Company’s GAAP
financial outlook in order to facilitate comparison of its
operating performance between periods and to better understand its
core business and future outlook:
Twelve Months Ending March 31, 2018
Financial Data $ in millions
GAAP outlook (2)
Change in deferred net
revenue and related cost of goods sold
Stock-based compensation
(3)
Non-cash amounts related
to convertible notes
Amortization of
intangible assets
Business reorganization
excluding stock-based compensation
Net revenue $1,620 to
$1,720 $30 Cost of goods sold $732 to
$781 ($13 ) ($21 ) ($18
) Operating Expenses $770 to $790
($74
) (5)
($16 ) ($8 ) Interest and
other, net $9 ($14 ) Income
(loss) before income taxes $109 to $141 $43
$95 $14 $34 $8 1)
For the fiscal second quarter ending September 30, 2017, the
Company’s fully diluted share count used for management reporting
purposes is expected to be 120.3 million, which includes 109.0
million basic shares, 0.9 million participating shares and 10.4
million shares representing the potential dilution from convertible
notes. The interest expense, net of tax, on the convertible notes,
which is added back to net income to calculate diluted net income
per share for management reporting purposes is $0.4 million.
Take-Two’s GAAP net income per diluted share outlook is calculated
using a diluted share count of 109.9 million (basic shares plus
participating shares), because using the “if-converted” method and
the Company’s fully diluted share count of 120.3 million would have
been anti-dilutive. 2) The individual components of the financial
outlook may not foot to the totals as the Company does not expect
actual results for every component to be at the low end or high end
of the outlook range simultaneously. 3) The Company's stock-based
compensation expense for the periods above includes the cost of
approximately 0.6 million restricted stock units previously granted
to ZelnickMedia that are subject to variable accounting. Actual
expense to be recorded in connection with these shares is dependent
upon several factors, including future changes in Take-Two's stock
price. 4) For the fiscal year ending March 31, 2018, the Company’s
fully diluted share count used for management reporting purposes is
expected to be 121.9 million, which includes 110.9 million basic
shares, 0.8 million participating shares and 10.2 million shares
representing the potential dilution from convertible notes. The
interest expense, net of tax, on the convertible notes, which is
added back to net income to calculate diluted net income per share
for management reporting purposes is $1.8 million. Take-Two’s GAAP
net income per diluted share outlook is calculated using a diluted
share count of 111.8 million (basic shares plus participating
shares), because using the “if-converted” method and the Company’s
fully diluted share count of 121.9 million would have been
anti-dilutive. 5) Includes $2.4 million of stock-based compensation
related to business reorganization.
Key assumptions and dependencies underlying the Company’s
financial outlook include: the timely delivery of the titles
included in this financial outlook; continued consumer acceptance
of the Xbox One and PlayStation 4; the ability to develop and
publish products that capture market share for these new-generation
systems while continuing to leverage opportunities on the Xbox 360,
PlayStation 3 and PC; and stable foreign exchange rates. See also
“Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following titles were released since April 1, 2017:
Label
Title
Platforms
Release Date
2K
Mafia III: Stones Unturned (DLC)
PS4, Xbox One, PC May 30, 2017 2K
Mafia III: Sign of the Times (DLC)
PS4, Xbox One, PC July 25, 2017
Take-Two's lineup of future titles
announced to date includes:
Label
Title
Platforms
Release Date
2K
XCOM 2: War of the Chosen (DLC)
PS4, Xbox One, PC August 29, 2017 2K
NBA 2K18
PS4, PS3, Xbox One, Xbox 360, Switch (digital), PC September 19,
2017 2K
WWE 2K18
PS4, Xbox One October 17, 2017 2K
NBA 2K18
Switch (physical) Fall 2017 2K
WWE 2K18
Switch Fall 2017 Take-Two
Kerbal Space Program: Making History
Expansion
PC Calendar 2017 Rockstar Games
Red Dead Redemption 2
PS4, Xbox One Spring 2018
Conference Call
Take-Two will host a conference call today at 4:30 p.m. Eastern
Time to review these results and discuss other topics. The call can
be accessed by dialing (877) 407-0984 or (201) 689-8577. A live
listen-only webcast of the call will be available by visiting
http://ir.take2games.com and a replay will be available following
the call at the same location.
Final Results
The financial results discussed herein are presented on a
preliminary basis; final data will be included in Take-Two’s
Quarterly Report on Form 10-Q for the period ended June 30,
2017.
About Take-Two Interactive
Software
Headquartered in New York City, Take-Two Interactive
Software, Inc. is a leading developer, publisher and marketer
of interactive entertainment for consumers around the globe. The
Company develops and publishes products principally through its two
wholly-owned labels Rockstar Games and 2K. Our products are
designed for console systems and personal computers, including
smartphones and tablets, and are delivered through physical retail,
digital download, online platforms and cloud streaming services.
The Company’s common stock is publicly traded on NASDAQ under the
symbol TTWO. For more corporate and product information please
visit our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property
of their respective holders.
Cautionary Note Regarding
Forward-Looking Statements
The statements contained herein which are not historical facts
are considered forward-looking statements under federal securities
laws and may be identified by words such as "anticipates,"
"believes," "estimates," "expects," "intends," "plans,"
"potential," "predicts," "projects," "seeks," “should,” "will," or
words of similar meaning and include, but are not limited to,
statements regarding the outlook for the Company's future business
and financial performance. Such forward-looking statements are
based on the current beliefs of our management as well as
assumptions made by and information currently available to them,
which are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Actual outcomes and
results may vary materially from these forward-looking statements
based on a variety of risks and uncertainties including: our
dependence on key management and product development personnel, our
dependence on our Grand Theft Auto products and our ability to
develop other hit titles, the timely release and significant market
acceptance of our games, the ability to maintain acceptable pricing
levels on our games, and risks associated with international
operations. Other important factors and information are contained
in the Company's most recent Annual Report on Form 10-K, including
the risks summarized in the section entitled "Risk Factors," the
Company’s most recent Quarterly Report on Form 10-Q, and the
Company's other periodic filings with the SEC, which can be
accessed at www.take2games.com. All forward-looking statements are
qualified by these cautionary statements and apply only as of the
date they are made. The Company undertakes no obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise.
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share amounts) Three months
ended June 30, 2017 2016
Net revenue
$ 418,216 $ 311,552
Cost of goods sold: Internal royalties
77,704
59,673 Software development costs and royalties
43,629
63,659 Product costs
44,069 44,979 Licenses
29,167 23,069 Total cost of goods sold
194,569 191,380 Gross
profit
223,647 120,172 General and administrative
60,603 46,743 Selling and marketing
52,214 71,134
Research and development
42,269 33,900 Business
reorganization
10,599 - Depreciation and amortization
7,743 7,378 Total operating expenses
173,428 159,155 Income (loss)
from operations
50,219 (38,983 ) Interest and other, net
(2,808 ) (4,506 ) Gain on long-term investments, net
- 1,350 Income (loss) before
income taxes
47,411 (42,139 ) Benefit from income taxes
12,865 3,572 Net income (loss)
$ 60,276 $ (38,567 ) Earnings (loss)
per share: Basic earnings (loss) per share
$ 0.57 $
(0.46 ) Diluted earnings (loss) per share
$ 0.56 $
(0.46 ) Weighted average shares outstanding: Basic
104,465 84,588 Diluted
117,753 84,588
Computation of Basic EPS: Net income (loss)
$
60,276 $ (38,567 ) Less: net income allocated to
participating securities
(588 ) -
Net loss for basic and diluted EPS calculation
$
59,688 $ (38,567 ) Weighted average shares
outstanding - basic
105,494 84,588 Less: weighted average
participating shares outstanding
(1,029 )
- Weighted average common shares outstanding - basic
104,465 84,588 Basic
earnings (loss) per share
$ 0.57 $ (0.46 )
Computation of Diluted EPS: Net income (loss)
$
60,276 $ (38,567 ) Less: net income allocated to
participating securities
(522 ) - Add: interest
expense, net of tax, on Convertible Notes
5,750
- Net income (loss) for diluted EPS
calculation
$ 65,504 $ (38,567 )
Weighted average common shares outstanding - basic
105,494
84,588 Add: dilutive effect of common stock equivalents
13,288 - Total weighted average shares
outstanding - diluted
118,782 84,588 Less: weighted average
participating shares outstanding
(1,029 )
- Weighted average common shares outstanding -
diluted
117,753 84,588
Diluted earnings (loss) per share
$ 0.56 $ (0.46 )
TAKE-TWO INTERACTIVE SOFTWARE, INC. and
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in
thousands, except per share amounts) June
30, March 31, 2017
2017 ASSETS Current assets: Cash and
cash equivalents
$ 828,112 $ 943,396 Short-term
investments
452,949 448,932 Restricted cash
406,336
337,818
Accounts receivable, net of allowances of
$52,262 and $66,483 at June 30, 2017 and March 30, 2017,
respectively
229,197 219,558 Inventory
11,636 16,323 Software
development costs and licenses
20,181 41,721 Deferred cost
of goods sold
79,902 127,901 Prepaid expenses and other
84,823 59,593 Total current
assets
2,113,136 2,195,242
Fixed assets, net
76,613 67,300 Software development
costs and licenses, net of current portion
462,877 381,910
Deferred cost of goods sold, net of current portion
17,021 -
Goodwill
369,622 359,115 Other intangibles, net
133,330 110,262 Other assets
46,971
35,325 Total assets
$ 3,219,570
$ 3,149,154
LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable
$
36,934 $ 31,892 Accrued expenses and other current
liabilities
809,685 750,875 Deferred revenue
619,439 903,125 Total current
liabilities
1,466,058 1,685,892
Long-term debt
212,864 251,929 Non-current deferred
revenue
231,526 10,406 Other long-term liabilities
209,367 197,199 Total liabilities
2,119,815 2,145,426
Stockholders' equity: Preferred stock, $.01 par value, 5,000
shares authorized
- - Common stock, $.01 par value, 200,000
shares authorized; 123,027 and 119,813 shares issued and 105,835
and 102,621 outstanding at June 30, 2017 and March 31, 2017,
respectively
1,230 1,198 Additional paid-in capital
1,479,143 1,452,754 Treasury stock, at cost; 17,192 common
shares at June 30, 2017 and March 31, 2017, respectively
(303,388 ) (303,388 ) Accumulated deficit
(39,648 ) (99,694 ) Accumulated other comprehensive
loss
(37,582 ) (47,142 ) Total
stockholders' equity
1,099,755
1,003,728 Total liabilities and stockholders' equity
$ 3,219,570 $ 3,149,154
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Three months ended June 30,
2017 2016
Operating activities: Net income (loss)
$
60,276 $ (38,567 ) Adjustments to reconcile net loss
to net cash provided by operating activities: Amortization and
impairment of software development costs and licenses
18,206
41,034 Depreciation and amortization
7,743 7,378
Amortization and impairment of intellectual property
8,181 -
Stock-based compensation
24,071 15,100 Amortization of
discount on Convertible Notes
5,237 6,098 Gain on
conversions of Convertible Notes
(1,103 ) -
Amortization of debt issuance costs
188 381 Other, net
(9,669 ) (3,171 ) Changes in assets and liabilities:
Restricted cash
(68,518 ) (57,335 ) Accounts
receivable
(9,294 ) 28,226 Inventory
5,451
2,696 Software development costs and licenses
(71,829
) (62,392 ) Prepaid expenses and other assets
(23,199
) (3,867 ) Deferred revenue
(67,883 ) (36,446
) Deferred cost of goods sold
32,233 17,223 Accounts
payable, accrued expenses and other liabilities
71,281 36,394 Net cash used in
operating activities
(18,628 ) (47,248
)
Investing activities: Change in bank time deposits
(24,999 ) 78,691 Proceeds from available-for-sale
securities
45,705 29,795 Purchases of available-for-sale
securities
(33,158 ) (30,836 ) Purchases of fixed
assets
(16,092 ) (4,230 ) Purchases of commercial
paper
(7,989 ) - Proceeds from commercial paper
16,500 - Proceeds from sale of long-term investments
- 1,350 Purchase of long-term investments
- (1,885 )
Asset acquisition
(25,381 ) -
Net cash (used in) provided by investing activities
(45,415 ) 72,885
Financing
activities: Excess tax benefit from stock-based compensation
- 887 Tax payment related to net share settlements on
restricted stock awards
(57,689 )
(25,166 ) Net cash used in financing activities
(57,689 ) (24,279 ) Effects of foreign
exchange rates on cash and cash equivalents
6,448
(3,772 ) Net decrease in cash and cash
equivalents
(115,284 ) (2,414 ) Cash and cash
equivalents, beginning of year
943,396
798,742 Cash and cash equivalents, end of period
$
828,112 $ 796,328
TAKE-TWO
INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Net Revenue and
Net Sales by Geographic Region, Distribution Channel, and Platform
Mix (in thousands)
Three Months Ended June 30,
2017
Three Months EndedJune 30, 2016
Amount % of Total Amount % of Total
Net
revenue by geographic region United States
$
258,260 62 % $ 193,101 62 % International
159,956 38 % 118,451 38 % Total
net revenue
418,216 100 %
311,552 100 %
Net sales by geographic region United
States
$ 199,871 57 % $ 143,240 53 %
International
148,434 43 %
129,316 47 % Total net sales
$ 348,305 100
% $ 272,556 100 %
Three Months Ended
June 30, 2017
Three Months Ended
June 30, 2016
Amount % of Total Amount % of Total
Net
revenue by distribution channel Digital online
$
268,235 64 % $ 172,078 55 % Physical retail
and other
149,981 36 % 139,474
45 % Total net revenue
418,216 100 %
311,552 100 %
Net sales by distribution
channel Digital online
$ 280,914 81
% $ 191,164 70 % Physical retail and other
67,391 19 % 81,392 30 % Total net sales
$ 348,305 100 % $ 272,556 100 %
Three Months Ended
June 30, 2017
Three Months Ended
June 30, 2016
Amount % of Total Amount % of Total
Net
revenue by platform mix Console
$ 344,917
82 % $ 254,026 82 % PC and other
73,299
18 % 57,526 18 % Total net revenue
418,216 100 % 311,552 100 %
Net sales by platform mix Console
$ 265,750
76 % $ 213,845 78 % PC and other
82,555
24 % 58,711 22 % Total net sales
$
348,305 100 % $ 272,556 100 %
TAKE-TWO
INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES ADDITIONAL
DATA (in thousands) Three Months Ended June 30,
2017 Net Revenue
Cost of Goods Sold- Internal
Royalties
Cost of Goods Sold- Software
Development Costs and Royalties
Cost of Goods Sold- Product
Costs
Cost of Goods Sold-
Licenses
General and
Administrative
As reported $ 418,216 $ 77,704 $ 43,629 $ 44,069 $
29,167 $ 60,603 Net effect from deferral and related cost of goods
sold (69,911 ) (7,654 ) (17,806 ) (14,831 ) Stock-based
compensation (3,481 ) (13,120 ) Amortization of intangibles (4,242
) Acquisition related expenses (18 )
Three Months Ended
June 30, 2017
Selling and Marketing
Research and Development
Business Reorganization
Depreciation and
Amortization
Interest and Other, net
As reported $ 52,214 $ 42,269 $ 10,599
$ 7,743 $ (2,808 ) Stock-based compensation (2,585 ) (2,464 )
(2,421 ) Non-cash amortization of discount on Convertible Notes
5,237 Non-cash (gain) loss on redemption of Convertible Notes
(1,103 ) Amortization of intangibles (2,308 ) (1,523 ) (120 )
Impact of business reorganization (8,178 )
Three Months
Ended June 30, 2016 Net Revenue
Cost of Goods Sold- Internal
Royalties
Cost of Goods Sold- Software
Development Costs and Royalties
Cost of Goods Sold- Product
Costs
Cost of Goods Sold-
Licenses
General and
Administrative
As reported $ 311,552 $ 59,673 $ 63,659 $ 44,979 $
23,069 $ 46,743 Net effect from deferral and related cost of goods
sold (38,996 ) (2,727 ) (8,889 ) (13,007 ) (6,705 ) Stock-based
compensation (4,386 )
Three Months Ended June 30,
2016
Selling and Marketing
Research and Development
Depreciation and
Amortization
Interest and Other, net
Gain on long-term
investments
As reported $ 71,134 $ 33,900 $ 7,378 $
(4,506 ) $ 1,350 Stock-based compensation (2,549 ) (1,459 )
Non-cash amortization of discount on Convertible Notes 6,099 Impact
of business reorganization Proceeds from sale of long-term
investments (1,350 )
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170802006214/en/
Take-Two Interactive Software, Inc.Investor
Relations:Henry A. Diamond, 646-536-3005Senior Vice
PresidentInvestor Relations & Corporate
CommunicationsHenry.Diamond@take2games.comorCorporate Press:Alan
Lewis, 646-536-2983Vice PresidentCorporate Communications &
Public AffairsAlan.Lewis@take2games.com
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