Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2025
Company updates fiscal year 2025 outlook and reiterates expectation for Net Bookings of
Management Comments
“I am pleased to report that we delivered strong second quarter results. Our Net Bookings of
“Our execution has been consistent, and our teams continue to make great progress advancing our development pipeline. Accordingly, we are reiterating our fiscal year 2025 Net Bookings guidance range of
“As we look ahead, we believe that Take-Two remains exceedingly well-positioned for the long-term. Our vision is clear, our talent is unparalleled, and we have one of the strongest portfolios of owned intellectual property in our industry. With many exciting new titles coming in Fiscal 2026 – including Grand Theft Auto VI in the fall, Borderlands 4 and Mafia: The Old Country – we expect to create long-term value for our shareholders.”
Second Quarter Fiscal 2025 Financial and Operational Highlights
-
Total Net Bookings* grew 2% to
$1.47 billion , as compared to$1.44 billion during last year’s fiscal second quarter.- Net Bookings from recurrent consumer spending** grew 6% and accounted for 81% of total Net Bookings.
- The largest contributors to Net Bookings were NBA® 2K25 and NBA 2K24, Grand Theft Auto® Online and Grand Theft Auto V, Toon Blast™, our hyper-casual mobile portfolio, Match Factory!™, Empires & Puzzles™, Words With Friends™, Red Dead Redemption® 2 and Red Dead Online, and Toy Blast™.
-
GAAP net revenue increased 4% to
$1.35 billion , as compared to$1.30 billion in last year’s fiscal second quarter.- Recurrent consumer spending** increased 8% and accounted for 80% of total GAAP net revenue.
- The largest contributors to GAAP net revenue were NBA 2K24 and NBA 2K25, Grand Theft Auto Online and Grand Theft Auto V, Toon Blast, Empires & Puzzles, Match Factory!, our hyper-casual mobile portfolio, Red Dead Redemption 2 and Red Dead Online, Words With Friends, and Merge Dragons!.
-
GAAP net loss was
$365.5 million , or$2.08 per share, as compared to$543.6 million , or$3.20 per share, for the comparable period last year.
* Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.
Second Quarter Fiscal 2025 Financial Results
The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business:
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Three Months Ended |
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Financial Data |
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in millions |
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Statement of
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Change in deferred
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Stock-based
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Amortization
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Business
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Business
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Other (a) |
GAAP |
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Total net revenue |
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121.9 |
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Cost of revenue |
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625.2 |
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11.5 |
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(3.1) |
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(174.1) |
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Gross profit |
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727.9 |
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110.4 |
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3.1 |
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174.1 |
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Operating expenses |
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1,025.1 |
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(83.1) |
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(17.9) |
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(16.8) |
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(53.7) |
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(Loss) income from operations |
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(297.2) |
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110.4 |
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86.2 |
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192.0 |
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16.8 |
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53.7 |
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Interest and other, net |
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(25.9) |
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(1.5) |
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2.2 |
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5.2 |
(Loss) gain on fair value adjustments, net |
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(1.2) |
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0.4 |
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0.8 |
(Loss) income before income taxes |
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(324.3) |
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108.9 |
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86.2 |
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192.0 |
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16.8 |
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56.3 |
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6.0 |
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Non-GAAP |
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EBITDA |
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(75.5) |
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110.4 |
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86.2 |
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16.8 |
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52.7 |
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6.0 |
Note: For management reporting purposes, the table above assumes a management tax rate of 18% and a fully diluted share count of 177.1 million in order to calculate diluted net income per share.
(a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the
Outlook for Fiscal Year 2025
Take-Two is revising its outlook for the fiscal year ending
Fiscal Year Ending
The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
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Fiscal Year Ending |
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Financial Data |
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$ in millions except for per share amounts |
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Outlook (1) |
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Change in
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Stock-based
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Amortization of
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Business
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GAAP |
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Total net revenue |
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Cost of revenue |
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Operating expenses |
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Interest and other, net |
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(Loss) income before income taxes |
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Net loss |
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Net loss per share |
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Net cash provided by operating activities |
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approximately |
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Capital expenditures |
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approximately |
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Non-GAAP |
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EBITDA |
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Adjusted Unrestricted Operating Cash Flow |
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approximately |
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Operational metric |
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Net Bookings |
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- Management reporting tax rate anticipated to be 18%
- Share count used to calculate GAAP net loss per share is expected to be 174.9 million
- Share count used to calculate management reporting diluted net income per share is expected to be 177.4 million
(a) Other includes adjustments for (i) business acquisition expenses, (ii) the revaluation of the Turkish Lira against the
Fiscal Third Quarter Ending
The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
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Three Months Ending |
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Financial Data |
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$ in millions except for per share amounts |
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Outlook (1) |
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Change in deferred
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Stock-based
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Amortization of
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Business
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GAAP |
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Total net revenue |
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Cost of revenue |
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Operating expenses |
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Interest and other, net |
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(Loss) income before income taxes |
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Net loss |
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Net loss per share |
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Non-GAAP |
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EBITDA |
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Operational metric |
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Net Bookings |
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- Management reporting tax rate anticipated to be 18%
- Share count used to calculate GAAP net loss per share is expected to be 174.5 million
- Share count used to calculate management reporting diluted net income per share is expected to be 178.2 million
1) |
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. |
Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S, as well as engagement on Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; our ongoing focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following have been released since
Label |
Product |
Platforms |
Release Date |
Zynga |
Game of Thrones: Legends |
iOs, Android |
|
2K |
NBA 2K25 |
PS5, PS4, Xbox Series X|S Xbox One, PC, Switch |
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|
Red Dead Redemption and Undead Nightmare |
PC |
|
Take-Two's future lineup announced to-date includes:
Label |
Product |
Platforms |
Release Date |
2K |
|
PS5, PS4, Xbox Series X|S, Xbox One, PC, Switch |
|
2K |
WWE 2K25 |
TBA |
Q4 Fiscal 2025 |
|
Grand Theft Auto VI |
PS5, Xbox Series X|S |
Fall of calendar 2025 |
2K |
Borderlands 4 |
PS5, Xbox Series X|S, PC |
Fiscal 2026 |
2K |
Mafia: The Old Country |
PS5, Xbox Series X|S, PC |
Fiscal 2026 |
Zynga |
|
iOS, Android |
TBA |
Ghost Story Games |
Judas |
PS5, Xbox Series X|S, PC |
TBA |
Conference Call
Take-Two will host a conference call today at
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
The Company’s management believes it is important to consider Adjusted Unrestricted Operating Cash Flow, in addition to net cash from operating activities, as it provides more transparency into current business trends without regard to the timing of payments from restricted cash, which is primarily related to a dedicated account limited to the payment of certain internal royalty obligations.
The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. Management believes that, when considered together with reported amounts, EBITDA is useful to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to the Company’s operations and financial condition.
These Non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. These Non-GAAP financial measures may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating these Non-GAAP financial measures used by the Company. Management believes that the presentation of these Non-GAAP financial measures provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, these measures facilitate comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses these Non-GAAP financial measures in assessing the Company's operating results and in planning and forecasting. A reconciliation of these Non-GAAP financial measures to the most comparable GAAP measure is contained in the financial tables to this press release.
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
About
Headquartered in
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, including statements relating to
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
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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(in millions, except per share amounts) |
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Three Months Ended |
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Six Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Net revenue: |
|
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|
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|
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|
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Game |
|
$ |
1,233.9 |
|
|
$ |
1,128.6 |
|
|
$ |
2,450.6 |
|
|
$ |
2,224.7 |
|
Advertising |
|
|
119.2 |
|
|
|
170.6 |
|
|
|
240.7 |
|
|
|
359.2 |
|
Total net revenue |
|
|
1,353.1 |
|
|
|
1,299.2 |
|
|
|
2,691.3 |
|
|
|
2,583.9 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
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Product costs |
|
|
212.5 |
|
|
|
175.7 |
|
|
|
415.8 |
|
|
|
354.6 |
|
Game intangibles |
|
|
173.4 |
|
|
|
409.4 |
|
|
|
336.9 |
|
|
|
596.3 |
|
Software development costs and royalties |
|
|
64.9 |
|
|
|
83.1 |
|
|
|
141.1 |
|
|
|
198.8 |
|
Internal royalties |
|
|
77.2 |
|
|
|
112.8 |
|
|
|
146.2 |
|
|
|
185.4 |
|
Licenses |
|
|
97.2 |
|
|
|
102.8 |
|
|
|
152.3 |
|
|
|
154.2 |
|
Total cost of revenue |
|
|
625.2 |
|
|
|
883.8 |
|
|
|
1,192.3 |
|
|
|
1,489.3 |
|
Gross profit |
|
|
727.9 |
|
|
|
415.4 |
|
|
|
1,499.0 |
|
|
|
1,094.6 |
|
Selling and marketing |
|
|
461.3 |
|
|
|
334.6 |
|
|
|
892.7 |
|
|
|
734.0 |
|
Research and development |
|
|
246.7 |
|
|
|
232.1 |
|
|
|
466.5 |
|
|
|
470.7 |
|
General and administrative |
|
|
253.0 |
|
|
|
178.3 |
|
|
|
463.5 |
|
|
|
376.2 |
|
Depreciation and amortization |
|
|
47.3 |
|
|
|
45.3 |
|
|
|
92.1 |
|
|
|
85.7 |
|
|
|
|
— |
|
|
|
165.4 |
|
|
|
— |
|
|
|
165.4 |
|
Business reorganization |
|
|
16.8 |
|
|
|
3.4 |
|
|
|
66.3 |
|
|
|
10.6 |
|
Total operating expenses |
|
|
1,025.1 |
|
|
|
959.1 |
|
|
|
1,981.1 |
|
|
|
1,842.6 |
|
Loss from operations |
|
|
(297.2 |
) |
|
|
(543.7 |
) |
|
|
(482.1 |
) |
|
|
(748.0 |
) |
Interest and other, net |
|
|
(25.9 |
) |
|
|
(31.1 |
) |
|
|
(50.1 |
) |
|
|
(56.5 |
) |
Loss on fair value adjustments, net |
|
|
(1.2 |
) |
|
|
(2.2 |
) |
|
|
(4.3 |
) |
|
|
(1.4 |
) |
Loss before income taxes |
|
|
(324.3 |
) |
|
|
(577.0 |
) |
|
|
(536.5 |
) |
|
|
(805.9 |
) |
Provision for (benefit from) income taxes |
|
|
41.2 |
|
|
|
(33.4 |
) |
|
|
91.0 |
|
|
|
(56.3 |
) |
Net loss |
|
$ |
(365.5 |
) |
|
$ |
(543.6 |
) |
|
$ |
(627.5 |
) |
|
$ |
(749.6 |
) |
|
|
|
|
|
|
|
|
|
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Loss per share: |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted loss per share |
|
$ |
(2.08 |
) |
|
$ |
(3.20 |
) |
|
$ |
(3.61 |
) |
|
$ |
(4.42 |
) |
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
175.4 |
|
|
|
169.9 |
|
|
|
173.8 |
|
|
|
169.6 |
|
|
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CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in millions, except per share amounts) |
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|
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(Unaudited) |
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|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
876.1 |
|
|
$ |
754.0 |
|
Short-term investments |
|
|
3.5 |
|
|
|
22.0 |
|
Restricted cash and cash equivalents |
|
|
357.5 |
|
|
|
252.1 |
|
Accounts receivable, net of allowances of |
|
|
858.9 |
|
|
|
679.7 |
|
Software development costs and licenses |
|
|
96.9 |
|
|
|
88.3 |
|
Contract assets |
|
|
79.4 |
|
|
|
85.0 |
|
Prepaid expenses and other |
|
|
433.4 |
|
|
|
378.6 |
|
Total current assets |
|
|
2,705.7 |
|
|
|
2,259.7 |
|
Fixed assets, net |
|
|
433.5 |
|
|
|
411.1 |
|
Right-of-use assets |
|
|
336.6 |
|
|
|
325.7 |
|
Software development costs and licenses, net of current portion |
|
|
1,731.2 |
|
|
|
1,446.5 |
|
|
|
|
4,648.7 |
|
|
|
4,426.4 |
|
Other intangibles, net |
|
|
2,896.5 |
|
|
|
3,060.6 |
|
Long-term restricted cash and cash equivalents |
|
|
86.0 |
|
|
|
95.9 |
|
Other assets |
|
|
237.1 |
|
|
|
191.0 |
|
Total assets |
|
$ |
13,075.3 |
|
|
$ |
12,216.9 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
177.1 |
|
|
$ |
195.9 |
|
Accrued expenses and other current liabilities |
|
|
1,300.3 |
|
|
|
1,062.6 |
|
Deferred revenue |
|
|
1,064.9 |
|
|
|
1,059.5 |
|
Lease liabilities |
|
|
59.0 |
|
|
|
63.8 |
|
Short-term debt, net |
|
|
599.2 |
|
|
|
24.6 |
|
Total current liabilities |
|
|
3,200.5 |
|
|
|
2,406.4 |
|
Long-term debt, net |
|
|
3,055.9 |
|
|
|
3,058.3 |
|
Non-current deferred revenue |
|
|
34.7 |
|
|
|
42.9 |
|
Non-current lease liabilities |
|
|
398.3 |
|
|
|
387.3 |
|
Non-current software development royalties |
|
|
91.2 |
|
|
|
102.1 |
|
Deferred tax liabilities, net |
|
|
281.9 |
|
|
|
340.9 |
|
Other long-term liabilities |
|
|
214.3 |
|
|
|
211.1 |
|
Total liabilities |
|
$ |
7,276.8 |
|
|
$ |
6,549.0 |
|
Stockholders' equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
2.0 |
|
|
|
1.9 |
|
Additional paid-in capital |
|
|
10,063.4 |
|
|
|
9,371.6 |
|
|
|
|
(1,020.6 |
) |
|
|
(1,020.6 |
) |
Accumulated deficit |
|
|
(3,207.4 |
) |
|
|
(2,579.9 |
) |
Accumulated other comprehensive loss |
|
|
(38.9 |
) |
|
|
(105.1 |
) |
Total stockholders' equity |
|
$ |
5,798.5 |
|
|
$ |
5,667.9 |
|
Total liabilities and stockholders' equity |
|
$ |
13,075.3 |
|
|
$ |
12,216.9 |
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
(in millions) |
||||||||
|
|
|
|
|
||||
|
|
Six Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(627.5 |
) |
|
$ |
(749.6 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
Amortization and impairment of software development costs and licenses |
|
|
139.6 |
|
|
|
108.1 |
|
Stock-based compensation |
|
|
161.5 |
|
|
|
169.1 |
|
Noncash lease expense |
|
|
31.3 |
|
|
|
32.7 |
|
Amortization and impairment of intangibles |
|
|
374.1 |
|
|
|
676.8 |
|
Depreciation |
|
|
74.0 |
|
|
|
67.9 |
|
|
|
|
— |
|
|
|
165.4 |
|
Interest expense |
|
|
80.4 |
|
|
|
71.4 |
|
Gain on debt extinguishment |
|
|
— |
|
|
|
(7.7 |
) |
Fair value adjustments |
|
|
4.3 |
|
|
|
1.4 |
|
Other, net |
|
|
5.9 |
|
|
|
28.8 |
|
Changes in assets and liabilities, net of effect from purchases of businesses: |
|
|
|
|
||||
Accounts receivable |
|
|
(169.6 |
) |
|
|
(52.2 |
) |
Software development costs and licenses |
|
|
(362.8 |
) |
|
|
(300.7 |
) |
Prepaid expenses and other current and other non-current assets |
|
|
22.1 |
|
|
|
(44.5 |
) |
Deferred revenue |
|
|
(4.6 |
) |
|
|
65.3 |
|
Accounts payable, accrued expenses and other liabilities |
|
|
(48.1 |
) |
|
|
(162.4 |
) |
Net cash (used in) provided by operating activities |
|
|
(319.4 |
) |
|
|
69.8 |
|
Investing activities: |
|
|
|
|
||||
Change in bank time deposits |
|
|
18.5 |
|
|
|
12.5 |
|
Sale and maturities of available-for-sale securities |
|
|
— |
|
|
|
131.0 |
|
Purchases of fixed assets |
|
|
(71.9 |
) |
|
|
(59.9 |
) |
Purchases of long-term investments |
|
|
(14.7 |
) |
|
|
(6.5 |
) |
Business acquisitions |
|
|
9.4 |
|
|
|
(13.0 |
) |
Other |
|
|
(9.3 |
) |
|
|
(3.8 |
) |
Net cash (used in) provided by investing activities |
|
|
(68.0 |
) |
|
|
60.3 |
|
Financing activities: |
|
|
|
|
||||
Tax payment related to net share settlements on restricted stock awards |
|
|
— |
|
|
|
(57.1 |
) |
Issuance of common stock |
|
|
23.8 |
|
|
|
18.8 |
|
Payment for settlement of convertible notes |
|
|
(8.3 |
) |
|
|
— |
|
Proceeds from issuance of debt |
|
|
598.9 |
|
|
|
999.3 |
|
Cost of debt |
|
|
(5.4 |
) |
|
|
(7.5 |
) |
Repayment of debt |
|
|
— |
|
|
|
(989.6 |
) |
Payment of contingent earn-out consideration |
|
|
(12.0 |
) |
|
|
(35.0 |
) |
Net cash provided by (used in) financing activities |
|
|
597.0 |
|
|
|
(71.1 |
) |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents |
|
|
8.0 |
|
|
|
(7.4 |
) |
Net change in cash, cash equivalents, and restricted cash and cash equivalents |
|
|
217.6 |
|
|
|
51.6 |
|
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1) |
|
|
1,102.0 |
|
|
|
1,234.6 |
|
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1) |
|
$ |
1,319.6 |
|
|
$ |
1,286.2 |
|
(1) Cash, cash equivalents and restricted cash and cash equivalents shown on our Condensed Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Condensed Consolidated Balance Sheet. |
|
||||||||||||
Net Revenue and Net Bookings by |
||||||||||||
(in millions) |
||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
814.5 |
|
60 |
% |
|
$ |
795.6 |
|
61 |
% |
International |
|
|
538.6 |
|
40 |
% |
|
|
503.6 |
|
39 |
% |
Total Net revenue |
|
$ |
1,353.1 |
|
100 |
% |
|
$ |
1,299.2 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
914.4 |
|
62 |
% |
|
$ |
915.8 |
|
63 |
% |
International |
|
|
560.5 |
|
38 |
% |
|
|
529.1 |
|
37 |
% |
Total Net Bookings |
|
$ |
1,474.9 |
|
100 |
% |
|
$ |
1,444.9 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
1,300.0 |
|
96 |
% |
|
$ |
1,239.7 |
|
95 |
% |
Physical retail and other |
|
|
53.1 |
|
4 |
% |
|
|
59.5 |
|
5 |
% |
Total Net revenue |
|
$ |
1,353.1 |
|
100 |
% |
|
$ |
1,299.2 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
1,417.2 |
|
96 |
% |
|
$ |
1,371.6 |
|
95 |
% |
Physical retail and other |
|
|
57.7 |
|
4 |
% |
|
|
73.3 |
|
5 |
% |
Total Net Bookings |
|
$ |
1,474.9 |
|
100 |
% |
|
$ |
1,444.9 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by platform |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
740.2 |
|
55 |
% |
|
$ |
646.2 |
|
50 |
% |
Console |
|
|
491.1 |
|
36 |
% |
|
|
546.7 |
|
42 |
% |
PC and other |
|
|
121.8 |
|
9 |
% |
|
|
106.3 |
|
8 |
% |
Total Net revenue |
|
$ |
1,353.1 |
|
100 |
% |
|
$ |
1,299.2 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by platform |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
723.0 |
|
49 |
% |
|
$ |
661.9 |
|
46 |
% |
Console |
|
|
622.3 |
|
42 |
% |
|
|
678.9 |
|
47 |
% |
PC and other |
|
|
129.6 |
|
9 |
% |
|
|
104.1 |
|
7 |
% |
Total Net Bookings |
|
$ |
1,474.9 |
|
100 |
% |
|
$ |
1,444.9 |
|
100 |
% |
|
||||||||||||
Net Revenue and Net Bookings by |
||||||||||||
(in millions) |
||||||||||||
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
1,635.0 |
|
61 |
% |
|
$ |
1,599.5 |
|
62 |
% |
International |
|
|
1,056.3 |
|
39 |
% |
|
|
984.4 |
|
38 |
% |
Total Net revenue |
|
$ |
2,691.3 |
|
100 |
% |
|
$ |
2,583.9 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by geographic region |
|
|
|
|
|
|
|
|
||||
|
|
$ |
1,642.9 |
|
61 |
% |
|
$ |
1,642.0 |
|
62 |
% |
International |
|
|
1,050.2 |
|
39 |
% |
|
|
1,004.5 |
|
38 |
% |
Total Net Bookings |
|
$ |
2,693.1 |
|
100 |
% |
|
$ |
2,646.5 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
2,595.5 |
|
96 |
% |
|
$ |
2,479.7 |
|
96 |
% |
Physical retail and other |
|
|
95.8 |
|
4 |
% |
|
|
104.2 |
|
4 |
% |
Total Net revenue |
|
$ |
2,691.3 |
|
100 |
% |
|
$ |
2,583.9 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by distribution channel |
|
|
|
|
|
|
|
|
||||
Digital online |
|
$ |
2,604.5 |
|
97 |
% |
|
$ |
2,537.3 |
|
96 |
% |
Physical retail and other |
|
|
88.6 |
|
3 |
% |
|
|
109.2 |
|
4 |
% |
Total Net Bookings |
|
$ |
2,693.1 |
|
100 |
% |
|
$ |
2,646.5 |
|
100 |
% |
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||
|
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||
Net revenue by platform |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
1,462.7 |
|
55 |
% |
|
$ |
1,326.2 |
|
51 |
% |
Console |
|
|
1,000.0 |
|
37 |
% |
|
|
1,051.0 |
|
41 |
% |
PC and other |
|
|
228.6 |
|
8 |
% |
|
|
206.7 |
|
8 |
% |
Total Net revenue |
|
$ |
2,691.3 |
|
100 |
% |
|
$ |
2,583.9 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net Bookings by platform |
|
|
|
|
|
|
|
|
||||
Mobile |
|
$ |
1,432.4 |
|
53 |
% |
|
$ |
1,351.5 |
|
52 |
% |
Console |
|
|
1,027.7 |
|
38 |
% |
|
|
1,098.1 |
|
41 |
% |
PC and other |
|
|
233.0 |
|
9 |
% |
|
|
196.9 |
|
7 |
% |
Total Net Bookings |
|
$ |
2,693.1 |
|
100.0 |
% |
|
$ |
2,646.5 |
|
100 |
% |
|
|||||||||||||||||||||||||||
ADDITIONAL DATA |
|||||||||||||||||||||||||||
(in millions) |
|||||||||||||||||||||||||||
Three Months Ended |
Net revenue |
|
Cost of
|
|
Cost of
|
|
Cost of revenue-
|
|
Cost of revenue-
|
|
Cost of
|
|
|
||||||||||||||
As reported |
$ |
1,353.1 |
|
|
$ |
212.5 |
|
|
$ |
173.4 |
|
|
$ |
64.9 |
|
|
$ |
77.2 |
|
|
$ |
97.2 |
|
|
|
||
Net effect from deferred revenue and related cost of revenue |
|
121.9 |
|
|
|
0.8 |
|
|
|
|
|
9.8 |
|
|
|
|
|
0.9 |
|
|
|
||||||
Stock-based compensation |
|
|
|
|
|
|
|
(3.1 |
) |
|
|
|
|
|
|
||||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(0.7 |
) |
|
|
(173.4 |
) |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three Months Ended |
Selling and
|
|
Research and
|
|
General and
|
|
Depreciation and
|
|
Business
|
|
Interest and
|
|
(Loss) gain on
|
||||||||||||||
As reported |
$ |
461.3 |
|
|
$ |
246.7 |
|
|
$ |
253.0 |
|
|
$ |
47.3 |
|
|
|
16.8 |
|
|
$ |
(25.9 |
) |
|
$ |
(1.2 |
) |
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
(1.5 |
) |
|
|
||||||||||||
Stock-based compensation |
|
(24.5 |
) |
|
|
(26.2 |
) |
|
|
(32.4 |
) |
|
|
|
|
|
|
|
|
||||||||
Amortization and impairment of acquired intangibles |
|
(1.5 |
) |
|
|
(7.2 |
) |
|
|
|
|
(9.2 |
) |
|
|
|
|
|
|
||||||||
Acquisition related expenses |
|
(0.1 |
) |
|
|
(0.7 |
) |
|
|
(52.9 |
) |
|
|
|
|
|
|
2.2 |
|
|
|
0.4 |
|
||||
Impact of business reorganization |
|
|
|
|
|
|
|
|
|
(16.8 |
) |
|
|
|
|
||||||||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
5.2 |
|
|
|
0.8 |
|
||||||||||
Three Months Ended |
Net revenue |
|
Cost of revenue
|
|
Cost of revenue
|
|
Cost of revenue-
|
|
Cost of revenue-
|
|
Cost of
|
|
Selling and
|
||||||||||||||
As reported |
$ |
1,299.2 |
|
|
$ |
409.4 |
|
|
$ |
175.7 |
|
|
$ |
83.1 |
|
|
$ |
112.8 |
|
|
$ |
102.8 |
|
|
$ |
334.6 |
|
Net effect from deferred revenue and related cost of revenue |
|
145.7 |
|
|
|
|
|
1.3 |
|
|
|
9.7 |
|
|
|
|
|
(1.3 |
) |
|
|
||||||
Stock-based compensation |
|
|
|
|
|
|
|
(7.5 |
) |
|
|
|
|
|
|
(24.3 |
) |
||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(409.4 |
) |
|
|
|
|
|
|
|
|
|
|
(1.6 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three Months Ended |
Research and
|
|
General and
|
|
Depreciation
|
|
|
|
Business
|
|
Interest and
|
|
(Loss) gain on
|
||||||||||||||
As reported |
$ |
232.1 |
|
|
$ |
178.3 |
|
|
$ |
45.3 |
|
|
$ |
165.4 |
|
|
$ |
3.4 |
|
|
$ |
(31.1 |
) |
|
$ |
(2.2 |
) |
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
1.2 |
|
|
|
||||||||||||
Stock-based compensation |
|
(28.9 |
) |
|
|
(29.4 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization and impairment of acquired intangibles |
|
(7.2 |
) |
|
|
|
|
(8.9 |
) |
|
|
|
|
|
|
|
|
||||||||||
Acquisition related expenses |
|
(0.5 |
) |
|
|
(2.7 |
) |
|
|
|
|
(165.4 |
) |
|
|
|
|
1.9 |
|
|
|
1.7 |
|
||||
Impact of business reorganization |
|
|
|
|
|
|
|
|
|
(3.4 |
) |
|
|
|
|
||||||||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
1.9 |
|
|
|
0.3 |
|
|
|||||||||||||||||||||||||||
ADDITIONAL DATA |
|||||||||||||||||||||||||||
(in millions) |
|||||||||||||||||||||||||||
Six Months Ended |
Net revenue |
|
Cost of revenue -
|
|
Cost of revenue -
|
|
Cost of revenue-
|
|
Cost of revenue-
|
|
Cost of revenue-
|
|
|
||||||||||||||
As reported |
$ |
2,691.3 |
|
|
$ |
336.9 |
|
|
$ |
415.8 |
|
|
$ |
141.1 |
|
|
$ |
146.2 |
|
|
$ |
152.3 |
|
|
|
||
Net effect from deferred revenue and related cost of revenue |
|
1.8 |
|
|
|
|
|
(2.4 |
) |
|
|
1.2 |
|
|
|
|
|
1.6 |
|
|
|
||||||
Stock-based compensation |
|
|
|
|
|
|
|
(6.0 |
) |
|
|
|
|
|
|
||||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(336.9 |
) |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Six Months Ended |
Selling and
|
|
Research and
|
|
General and
|
|
Depreciation
|
|
Business
|
|
Interest and
|
|
(Loss) gain on
|
||||||||||||||
As reported |
$ |
892.7 |
|
|
$ |
466.5 |
|
|
$ |
463.5 |
|
|
$ |
92.1 |
|
|
$ |
66.3 |
|
|
$ |
(50.1 |
) |
|
$ |
(4.3 |
) |
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
(0.8 |
) |
|
|
||||||||||||
Stock-based compensation |
|
(45.7 |
) |
|
|
(49.4 |
) |
|
|
(60.4 |
) |
|
|
|
|
|
|
|
|
||||||||
Amortization and impairment of acquired intangibles |
|
(3.1 |
) |
|
|
(14.3 |
) |
|
|
|
|
(18.2 |
) |
|
|
|
|
|
|
||||||||
Impact of business reorganization |
|
|
|
|
|
|
|
|
|
(66.3 |
) |
|
|
|
|
||||||||||||
Acquisition related expenses |
|
(0.1 |
) |
|
|
(0.7 |
) |
|
|
(69.6 |
) |
|
|
|
|
|
|
4.2 |
|
|
|
1.1 |
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
7.2 |
|
|
|
3.2 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Six Months Ended |
Net revenue |
|
Cost of revenue -
|
|
Cost of revenue -
|
|
Cost of goods
|
|
Cost of revenue -
|
|
Cost of revenue -
|
|
Selling and
|
||||||||||||||
As reported |
$ |
2,583.9 |
|
|
$ |
596.3 |
|
|
$ |
354.6 |
|
|
$ |
198.8 |
|
|
$ |
185.4 |
|
|
$ |
154.2 |
|
|
$ |
734.0 |
|
Net effect from deferred revenue and related cost of revenue |
|
62.5 |
|
|
|
|
|
(1.0 |
) |
|
|
4.5 |
|
|
|
|
|
(0.7 |
) |
|
|
||||||
Stock-based compensation |
|
|
|
|
|
|
|
(14.2 |
) |
|
|
|
|
|
|
(48.9 |
) |
||||||||||
Amortization and impairment of acquired intangibles |
|
|
|
(596.3 |
) |
|
|
|
|
|
|
|
|
|
|
(47.9 |
) |
||||||||||
Acquisition related expenses |
|
|
|
|
|
|
|
|
|
|
|
10.0 |
|
|
|
(0.2 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Six Months Ended |
Research and
|
|
General and
|
|
Depreciation
|
|
|
|
Business
|
|
Interest and
|
|
(Loss) gain on
|
||||||||||||||
As reported |
$ |
470.7 |
|
|
$ |
376.2 |
|
|
$ |
85.7 |
|
|
$ |
165.4 |
|
|
$ |
10.6 |
|
|
$ |
(56.5 |
) |
|
$ |
(1.4 |
) |
Net effect from deferred revenue and related cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
1.8 |
|
|
|
||||||||||||
Stock-based compensation |
|
(52.5 |
) |
|
|
(53.5 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization and impairment of acquired intangibles |
|
(14.3 |
) |
|
|
|
|
(17.9 |
) |
|
|
|
|
|
|
|
|
||||||||||
Impact of business reorganization |
|
|
|
|
|
|
|
|
|
(10.6 |
) |
|
|
|
|
||||||||||||
Acquisition related expenses |
|
(2.2 |
) |
|
|
(28.0 |
) |
|
|
|
|
(165.4 |
) |
|
|
|
|
(3.0 |
) |
|
|
3.2 |
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
15.8 |
|
|
|
(2.0 |
) |
|
|
|
|
|
||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE |
|
|
|
|
||||
(in millions) |
|
|
|
|
||||
|
|
Six Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Net cash from operating activities |
|
$ |
(319.4 |
) |
|
$ |
69.8 |
|
Net change in Restricted cash (1) |
|
|
(94.5 |
) |
|
|
(123.3 |
) |
Adjusted Unrestricted Operating Cash Flow |
|
$ |
(413.9 |
) |
|
$ |
(53.5 |
) |
|
|
|
|
|
||||
|
|
Six Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Restricted cash beginning of period |
|
$ |
348.0 |
|
|
$ |
407.2 |
|
Restricted cash end of period |
|
|
443.5 |
|
|
|
529.4 |
|
Restricted cash related to acquisitions |
|
|
(1.0 |
) |
|
|
1.1 |
|
(1) Net change in Restricted cash |
|
$ |
(94.5 |
) |
|
$ |
(123.3 |
) |
|
|
|
|
||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE |
|
|
|
||||||||||||
(in millions) |
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
Six Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Net loss |
|
$ |
(365.5 |
) |
|
$ |
(543.6 |
) |
$ |
(627.5 |
) |
|
$ |
(749.6 |
) |
Provision for (benefit from) income taxes |
|
|
41.2 |
|
|
|
(33.4 |
) |
|
91.0 |
|
|
|
(56.3 |
) |
Interest expense |
|
|
18.7 |
|
|
|
21.0 |
|
|
37.9 |
|
|
|
33.7 |
|
Depreciation and amortization |
|
|
47.3 |
|
|
|
45.3 |
|
|
92.1 |
|
|
|
85.7 |
|
Amortization of acquired intangibles |
|
|
182.8 |
|
|
|
418.2 |
|
|
356.0 |
|
|
|
658.5 |
|
|
|
|
— |
|
|
|
165.4 |
|
|
— |
|
|
|
165.4 |
|
EBITDA |
|
$ |
(75.5 |
) |
|
$ |
72.9 |
|
$ |
(50.5 |
) |
|
$ |
137.4 |
|
Outlook |
|
|
|
|
Fiscal Year Ending |
Net loss |
|
|
Provision for income taxes |
|
|
Interest expense |
|
|
Depreciation |
|
|
Amortization of acquired intangibles |
|
|
EBITDA |
|
|
Outlook |
|
|
|
|
Three Months Ended |
Net loss |
|
|
Provision for income taxes |
|
|
Interest expense |
|
|
Depreciation |
|
|
Amortization of acquired intangibles |
|
|
EBITDA |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106543274/en/
(Investor Relations)
Senior Vice President
Investor Relations & Corporate Communications
(646) 536-3005
[email protected]
(
Vice President
(646) 536-2983
[email protected]
Source: Take-Two Interactive