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Jun 30, 2021

Take-Two Q1 2022 Earnings Report

Take-Two's Q1 2022 earnings exceeded expectations, driven by strong recurrent consumer spending and digital delivery.

Key Takeaways

Take-Two Interactive reported better than expected results for the first quarter of fiscal year 2022. GAAP net revenue decreased slightly, but net income increased significantly. The company reiterated its outlook for fiscal year 2022.

GAAP net revenue decreased 2% to $813.3 million.

GAAP net income increased 72% to $152.3 million, or $1.30 per diluted share.

Net Bookings decreased 29% to $711.4 million.

Digitally-delivered GAAP net revenue increased 1% to $740.8 million, accounting for 91% of total GAAP net revenue.

Total Revenue
$711M
Previous year: $996M
-28.6%
EPS
$1.01
Previous year: $2.3
-56.1%
Net Bookings
$711M
Previous year: $996M
-28.6%
Gross Profit
$484M
Previous year: $355M
+36.4%
Cash and Equivalents
$2.54B
Previous year: $2.29B
+11.0%
Free Cash Flow
$61.8M
Previous year: $437M
-85.8%
Total Assets
$6.31B
Previous year: $5.37B
+17.6%

Take-Two

Take-Two

Forward Guidance

Take-Two reiterates its outlook for the fiscal year ending March 31, 2022 and providing its initial outlook for its fiscal second quarter ending September 30, 2021.

Positive Outlook

  • Timely delivery of titles included in the financial outlook.
  • Stable economic environment.
  • 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.
  • Ability to develop and publish products that capture market share for current generation systems while also leveraging opportunities on PC, mobile and other platforms.
  • Stable foreign exchange rates.

Challenges Ahead

  • Uncertainty of the impact of the COVID-19 pandemic and measures taken in response thereto.
  • The effect that measures taken to mitigate the COVID-19 pandemic have on Take-Two's operations.
  • Effects of the COVID-19 pandemic on both consumer demand and the discretionary spending patterns of customers as the situation with the pandemic continues to evolve.
  • Risks of conducting business internationally.
  • Impact of potential inflation.