Take-Two Financials

Earnings season continues, as Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal First Quarter 2023. Of course the most fascinating thing about these reports is learning just how many copies of Grand Theft Auto V have been sold, which is now at an eye-watering 380 million. As for the financials, mind the GAAP. Word is GAAP net revenue is up, counter intuitively leading to a GAAP net loss:
GAAP net revenue increased 36% to $1.1 billion, as compared to $813.3 million in last year’s fiscal first 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 44% and accounted for 75% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 40% to $1.0 billion, as compared to $740.8 million in last year’s fiscal first quarter, and accounted for 94% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA® 2K22; Grand Theft Auto® Online and Grand Theft Auto V; Red Dead Redemption® 2 and Red Dead Online; Empires & Puzzles™; Tiny Tina's Wonderlands®; WWE® 2K22; Rollic's hyper-casual portfolio; Toon Blast™; The Quarry®; and Top Eleven®.

GAAP net loss was $104.0 million, or $0.76 per share, as compared to net income of $152.3 million, or $1.30 per diluted share, for the comparable period last year. GAAP net loss benefited from the reversal of expense of $47.7 million related to forfeitures of previously granted stock awards.