<\/p>\n
Take-Two Interactive Software, Inc. Reports Results for Fiscal Third Quarter 2023<\/b><\/p>\n
GAAP net revenue increased 56% to $1.41 billion<\/i><\/p>\n
GAAP net loss per share was $0.91<\/i><\/p>\n
GAAP net cash provided by operating activities for the nine-months ended December 31, 2022 was $35.8 million<\/i><\/p>\n
Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the nine-months ended December 31, 2022 <\/i>was $122.9 million<\/i><\/p>\n
Net Bookings grew 60% to $1.38 billion<\/i><\/p>\n
Company updates outlook for fiscal year 2023, including Net Bookings of $5.2 to $5.25 billion<\/i><\/p>\n
NEW YORK–(BUSINESS WIRE<\/a>)– Third Quarter Fiscal 2023 Financial Highlights<\/span><\/b><\/p>\n \nGAAP net revenue increased 56% to $1.41 billion, as compared to $903.3 million in last year\u2019s fiscal third quarter. Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in game purchases and in-game advertising) increased 104% and accounted for 79% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 68% to $1.34 billion, as compared to $795.7 million in last year\u2019s fiscal third quarter, and accounted for 95% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA\u00ae 2K23 <\/i>and NBA 2K22<\/i>; Grand Theft Auto\u00ae Online <\/i>and Grand Theft Auto V; Empires & Puzzles\u2122<\/i>; Toon Blast\u2122<\/i>; Rollic’s hyper-casual portfolio; Red Dead Redemption\u00ae 2 <\/i>and Red Dead Online<\/i>; Words With Friends\u2122; Merge Dragons!\u2122<\/i>;and Toy Blast\u2122.<\/i><\/p>\n \nGAAP net loss was $153.4 million, or $0.91 per share, as compared to net income of $144.6 million, or $1.24 per diluted share, for the comparable period last year.\n<\/p>\n \nDuring the nine-month period ended December 31, 2022, GAAP net cash provided by operating activities was $35.8 million, as compared to $19.2 million in the same period last year. During the nine-month period ended December 31, 2022, Adjusted Unrestricted Operating Cash Flow (Non-GAAP), which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash, was $122.9 million, as compared to $278.7 million in the same period last year (please see the section below titled \u201cNon-GAAP Financial Measures\u201d for additional information). As of December 31, 2022, the Company had cash and short-term investments of $1.13 billion and debt of $3.09 billion.\n<\/p>\n \nThe following data, together with a management reporting tax rate of 18%, are used internally by the Company\u2019s management and Board of Directors to adjust the Company\u2019s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Three Months Ended December 31, 2022<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Financial Data<\/b><\/p>\n<\/td>\n<\/tr>\n GAAP<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Statement of <\/b><\/p>\n Operations<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Change in deferred <\/b><\/p>\n net revenue and <\/b><\/p>\n related cost of revenue<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Stock-based <\/b><\/p>\n compensation<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Amortization of <\/b><\/p>\n acquired <\/b><\/p>\n intangibles<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Business <\/b><\/p>\n acquisition<\/b><\/p>\n<\/td>\n<\/tr>\n \nTotal net revenue\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$1,407.8\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(25.0)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nCost of revenue\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n691.9\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n6.4\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(8.4)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(202.7)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Gross profit<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 715.9<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (31.4)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 8.4<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 202.7<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nOperating expenses\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n888.8\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(78.0)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(99.1)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(21.5)\n<\/p>\n<\/td>\n<\/tr>\n (Loss) income from operations<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (172.9)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (31.4)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 86.4<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 301.8<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 21.5<\/b><\/p>\n<\/td>\n<\/tr>\n \nInterest and other, net\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(28.3)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(3.8)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n3.4\n<\/p>\n<\/td>\n<\/tr>\n \n(Loss) gain on fair value adjustments, net\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.1\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.1)\n<\/p>\n<\/td>\n<\/tr>\n (Loss) income before income taxes<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (200.1)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (35.2)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 86.4<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 301.8<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 23.8<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Non-GAAP<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n EBITDA<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 147.8<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n (31.4)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 86.4<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 19.2<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 169.2 million.\n<\/p>\n Operational Metric \u2013 Net Bookings<\/span><\/b><\/p>\n \nNet Bookings is 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.\n<\/p>\n \nDuring fiscal third quarter 2023, total Net Bookings grew 60% to $1.38 billion, as compared to $866.1 million during last year\u2019s fiscal third quarter. Net Bookings from recurrent consumer spending grew 117% and accounted for 78% of total Net Bookings. Digitally-delivered Net Bookings were up 72% to $1.31 billion, as compared to $762.3 million in last year\u2019s fiscal third quarter, and accounted for 95% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K23<\/i>; Grand Theft Auto Online <\/i>and Grand Theft Auto V; Empires & Puzzles; Toon Blast<\/i>; Red Dead Redemption 2<\/i> and Red Dead Online<\/i>; Rollic’s hyper-casual portfolio; Words With Friends<\/i>; Merge Dragons!<\/i>; and Toy Blast.<\/i><\/p>\n Management Comments<\/span><\/b><\/p>\n \n\u201cDuring the third quarter, we continued to execute on our ambition to create the highest-quality, most engaging interactive entertainment franchises in the industry,\u201d said Strauss Zelnick, Chairman and CEO of Take-Two. “Our new game releases and post-launch content received significant critical acclaim; however, our Net Bookings of $1.38 billion were slightly below our prior guidance, as we believe that consumers shifted their holiday spending toward established blockbuster franchises and titles that were offered with pricing promotions in light of macroeconomic conditions. While our catalog benefited from this trend, it affected the performance of certain of our new releases and recurrent consumer spending for some of our console and PC games.”\n<\/p>\n \n“We are operating in an environment that is in many ways more challenging than we anticipated and we are lowering our Fiscal 2023 Net Bookings guidance to $5.2 to $5.25 billion to take this backdrop into account. Accordingly, we have embarked on a cost reduction program that we believe will deliver over $50 million of annual savings, which is in addition to the $100 million of annual cost synergies that we plan to realize from our combination with Zynga. These initiatives are expected to optimize our Company\u2019s expense structure, while also positioning us to deliver on our anticipated growth trajectory. Our balance sheet remains strong, allowing us to navigate these uncertain times with confidence.”\n<\/p>\n \n“We have always managed our business for the long-term. As we achieve the powerful synergies from our combination with Zynga, release new titles from our robust multi-year pipeline, and execute on our cost savings initiatives, we expect to deliver sequential growth and record performance over the next several years, which we anticipate will drive meaningful shareholder value.”\n<\/p>\n Cost Reduction Program<\/span><\/b><\/p>\n \nIn light of the current backdrop and Take-Two\u2019s strong commitment to efficiency, the Company is implementing a cost reduction program expected to yield over $50 million of annual savings, which it will begin to realize in the fourth quarter of its Fiscal Year 2023. The program includes personnel, processes, infrastructure, and other areas, and will primarily focus on corporate and publishing functions. This cost reduction program is in addition to the over $100 million of cost synergies the Company expects to realize from its combination with Zynga, and is not expected to impact the delivery of its robust multi-year pipeline. Take-Two believes these actions, combined with its focus on profitably growing its scale, will enable the Company to maximize its margins as it delivers on its anticipated growth trajectory over the next few years.\n<\/p>\n Return to Office Update<\/span><\/b><\/p>\n \nAt Take-Two, our number one priority has remained the health and safety of our employees and their families. The majority of our global offices have reopened. We continue to follow protocols from local governments and health officials to ensure that we are adhering to their safety standards.\n<\/p>\n Business and Product Highlights<\/span><\/b><\/p>\n \nSince October 1, 2022:\n<\/p>\n Rockstar Games:<\/b><\/p>\n 2K:<\/b><\/p>\n Private Division:<\/b><\/p>\n Zynga:<\/b><\/p>\n Ghost Story Games:<\/b><\/p>\n Outlook for Fiscal 2023<\/span><\/b><\/p>\n \nTake-Two is revising its outlook for the fiscal year ending March 31, 2023, and is providing its initial outlook for its fiscal fourth quarter ending March 31, 2023:\n<\/p>\n Fiscal Year Ending March 31, 2023<\/i><\/b><\/p>\n \nThe Company is also providing selected data and its management reporting tax rate of 18%, which are used internally by its management and Board of Directors to adjust the Company\u2019s 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:\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Twelve Months Ending March 31, 2023<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Financial Data<\/b><\/p>\n<\/td>\n<\/tr>\n $ in millions<\/i><\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Outlook (3)<\/sup><\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Change in <\/b><\/p>\n deferred net <\/b><\/p>\n revenue and <\/b><\/p>\n related cost of <\/b><\/p>\n revenue<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Stock-based <\/b><\/p>\n compensation<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Loss on long- investments, <\/b><\/p>\n net<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Amortization of <\/b><\/p>\n acquired <\/b><\/p>\n intangibles<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Business <\/b><\/p>\n acquisition<\/b><\/p>\n<\/td>\n<\/tr>\n GAAP<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Total net revenue<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $5,240 to $5,290<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(40)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Cost of revenue<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $2,530 to $2,549<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $10<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(11)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(694)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Operating expenses<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $3,396 to $3,406<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(346)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(332)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(153)<\/b><\/p>\n<\/td>\n<\/tr>\n Interest and other, net<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $174<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(1)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(49)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(14)<\/b><\/p>\n<\/td>\n<\/tr>\n (Loss) income before income taxes<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(860) to $(839)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(49)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $357<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $49<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $1,026<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $167<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Non-GAAP<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n EBITDA<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $386 to $406<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(50)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $357<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $49<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $153<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Fourth<\/i><\/b>Quarter Ending March 31, 2023<\/i><\/b><\/p>\n \nThe Company is also providing selected data and its management reporting tax rate of 18%, which are used internally by its management and Board of Directors to adjust the Company\u2019s 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:\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Three Months Ending March 31, 2023<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Financial Data<\/b><\/p>\n<\/td>\n<\/tr>\n $ in millions<\/i><\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Outlook (3)<\/sup><\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Change in deferred <\/b><\/p>\n net revenue and <\/b><\/p>\n related cost of <\/b><\/p>\n revenue<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Stock-based <\/b><\/p>\n compensation<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Amortization of <\/b><\/p>\n intangible assets<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Business <\/b><\/p>\n acquisition<\/b><\/p>\n<\/td>\n<\/tr>\n GAAP<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Total net revenue<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $1,336 to $1,386<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(26)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Cost of revenue<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $688 to $708<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(5)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(24)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(198)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Operating expenses<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $871 to $881<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(71)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(97)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(5)<\/b><\/p>\n<\/td>\n<\/tr>\n Interest and other, net<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $29<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(2)<\/b><\/p>\n<\/td>\n<\/tr>\n (Loss) income before income taxes<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(252) to $(232)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(21)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $95<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $295<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $7<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Non-GAAP<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n EBITDA<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $102 to $122<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $(21)<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $95<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n $5<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n1)\n<\/p>\n<\/td>\n \nIncludes 159.8 million basic shares and 2.0 million shares representing the potential dilution from unvested employee stock grants and the potential dilution from convertible notes.\n<\/p>\n<\/td>\n<\/tr>\n \n2)\n<\/p>\n<\/td>\n \nAdjusted for changes in restricted cash.\n<\/p>\n<\/td>\n<\/tr>\n \n3)\n<\/p>\n<\/td>\n \nThe 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.\n<\/p>\n<\/td>\n<\/tr>\n \n4)\n<\/p>\n<\/td>\n \nIncludes 168.0 million basic shares and 1.2 million shares representing the potential dilution from unvested employee stock grants and the potential dilution from convertible notes.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nKey assumptions and dependencies underlying the Company\u2019s outlook include: the timely delivery of the titles included in this financial outlook; continued consumer acceptance of Xbox One and PlayStation 4, as well as continued growth in the installed base of PlayStation 5 and Xbox Series X|S; 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; and stable foreign exchange rates. See also \u201cCautionary Note Regarding Forward Looking Statements\u201d below.\n<\/p>\n Product Releases<\/span><\/b><\/p>\n \nThe following have been released since October 1, 2022:\n<\/p>\n Label<\/b><\/p>\n<\/td>\n Product<\/b><\/p>\n<\/td>\n Platforms<\/b><\/p>\n<\/td>\n Release Date<\/b><\/p>\n<\/td>\n<\/tr>\n \n2K\n<\/p>\n<\/td>\n PGA TOUR 2K23<\/i><\/p>\n<\/td>\n \nPS4, PS5, Xbox One, Xbox Series X|S, PC (Steam)\n<\/p>\n<\/td>\n \nOctober 14, 2022\n<\/p>\n<\/td>\n<\/tr>\n \n2K\n<\/p>\n<\/td>\n NBA 2K23 Arcade Edition<\/i><\/p>\n<\/td>\n \nApple Arcade\n<\/p>\n<\/td>\n \nOctober 18, 2022\n<\/p>\n<\/td>\n<\/tr>\n \n2K\n<\/p>\n<\/td>\n New Tales From The Borderlands<\/i><\/p>\n<\/td>\n \nPS4, PS5, Xbox One, Xbox Series X|S, PC (Steam & Epic Games Store), Switch\n<\/p>\n<\/td>\n \nOctober 21, 2022\n<\/p>\n<\/td>\n<\/tr>\n \nPrivate Division\n<\/p>\n<\/td>\n OlliOlli World: Finding the Flowzone <\/i>(DLC, Digital Only)\n<\/p>\n<\/td>\n \nPS4, PS5, Xbox One, Xbox Series X|S, Switch, PC\n<\/p>\n<\/td>\n \nNovember 2, 2022\n<\/p>\n<\/td>\n<\/tr>\n \n2K\n<\/p>\n<\/td>\n Marvel’s Midnight Suns<\/i><\/p>\n<\/td>\n \nPS5, Xbox Series X|S, PC (Steam and Epic Games Store)\n<\/p>\n<\/td>\n \nDecember 2, 2022\n<\/p>\n<\/td>\n<\/tr>\n \nRockstar Games\n<\/p>\n<\/td>\n Grand Theft Auto Online: Los Santos Drug Wars<\/i><\/p>\n<\/td>\n \nPS4, PS5, Xbox One, Xbox Series X|S, PC\n<\/p>\n<\/td>\n \nDecember 13, 2022\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nTake-Two’s future lineup announced to-date includes:\n<\/p>\n Label<\/b><\/p>\n<\/td>\n Product<\/b><\/p>\n<\/td>\n Platforms<\/b><\/p>\n<\/td>\n Release Date<\/b><\/p>\n<\/td>\n<\/tr>\n \nPrivate Division\n<\/p>\n<\/td>\n Kerbal Space Program 2 <\/i>(Early Access)\n<\/p>\n<\/td>\n \nPC (Steam, Epic Games Store)\n<\/p>\n<\/td>\n \nFebruary 24, 2023\n<\/p>\n<\/td>\n<\/tr>\n \n2K\n<\/p>\n<\/td>\n WWE 2K23<\/i><\/p>\n<\/td>\n \nPS4, PS5, Xbox One, Xbox Series X|S, PC (Steam)\n<\/p>\n<\/td>\n \nMarch 17, 2023\n<\/p>\n<\/td>\n<\/tr>\n \nPrivate Division\n<\/p>\n<\/td>\n After Us <\/i>(Digital Only)\n<\/p>\n<\/td>\n \nPS5, Xbox Series X|S, PC (Steam)\n<\/p>\n<\/td>\n \nSpring 2023\n<\/p>\n<\/td>\n<\/tr>\n \nRockstar Games\n<\/p>\n<\/td>\n Grand Theft Auto: The Trilogy – The Definitive Edition<\/i><\/p>\n<\/td>\n \niOS, Android\n<\/p>\n<\/td>\n \nTBA\n<\/p>\n<\/td>\n<\/tr>\n \n2K\n<\/p>\n<\/td>\n Marvel’s Midnight Suns<\/i><\/p>\n<\/td>\n \nPS4, Xbox One, Switch\n<\/p>\n<\/td>\n \nTBA\n<\/p>\n<\/td>\n<\/tr>\n \nZynga\n<\/p>\n<\/td>\n Star Wars Hunters<\/i><\/p>\n<\/td>\n \niOS, Android, Switch\n<\/p>\n<\/td>\n \nTBA\n<\/p>\n<\/td>\n<\/tr>\n \nGhost Story Games\n<\/p>\n<\/td>\n Judas<\/i><\/p>\n<\/td>\n \nPS5, Xbox Series X|S, PC (Steam, Epic Games Store)\n<\/p>\n<\/td>\n \nTBA\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nTake-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the third quarter of its fiscal year 2023, ended December 31, 2022. Third quarter results include the Company’s combination with Zynga, which closed on May 23, 2022, and affects the comparability of its results relative to last year. In addition, the Company revised its outlook for fiscal year 2023, ending March 31, 2023, and provided its initial outlook for the fourth quarter of fiscal year 2023, ending March 31, 2023. For further information, please see the third quarter fiscal 2023 results slide deck posted to the Company\u2019s investor relations website at take2games.com\/ir<\/a>.\n<\/p>\n\n
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