Take-Two Interactive Fourth Quarter and Fiscal 2021 Results

Key insights

6 takeaways

01
Take-Two Interactive achieved record-breaking fiscal 2021 net bookings of $3.55 billion, exceeding initial guidance by approximately $1 billion.See it on page 4
02
Recurrent consumer spending, including in-game purchases and DLC, reached a record 63% of total net bookings for fiscal 2021.See it on page 5
03
Adjusted unrestricted operating cash flow for fiscal 2021 hit a record $920 million, outperforming initial expectations by $570 million.See it on page 6
04
The fourth quarter of fiscal 2021 set a company record for the period with $785 million in net bookings, driven by the NBA 2K series and digital sales.See it on page 4
05
Management projects fiscal 2022 will be the second-highest year for net bookings in company history, supported by a diverse pipeline of core, sports, and mobile titles.See it on page 8
06
The company anticipates a moderation in pandemic-era growth trends and has issued fiscal 2022 first-quarter net bookings guidance of $625 million to $675 million.See it on page 8

Summary

Take-Two Interactive’s fiscal year 2021 results demonstrate strong financial performance, characterized by record-breaking net bookings and significant growth in recurrent consumer spending. For the full fiscal year, the company reported GAAP net revenue of $3.37 billion and net bookings of $3.55 billion, the latter exceeding initial guidance by approximately $1 billion. Recurrent consumer spending, which includes in-game purchases and downloadable content, served as a primary growth driver, accounting for 63% of total net bookings—a new record for the organization.

The fourth quarter of fiscal 2021 maintained this momentum, with net bookings reaching $785 million, the highest fourth-quarter result in the company's history. This performance was bolstered by the continued success of core franchises, particularly the NBA 2K series, and strong results from digitally delivered game sales. Adjusted unrestricted operating cash flow also reached a record level of $920 million for the fiscal year, significantly outperforming initial expectations by $570 million.

Looking ahead to fiscal year 2022, the company projects the second-highest level of net bookings in its history, supported by an extensive pipeline of new releases across immersive core, sports simulation, and mobile segments. While management anticipates that engagement trends will remain elevated compared to pre-pandemic levels, they expect a moderation of the growth trends that benefited the industry during the height of the COVID-19 pandemic. Consequently, the company is prioritizing strategic investments in marketing and personnel to support its upcoming product pipeline. The financial outlook for the first quarter of fiscal 2022 reflects this anticipated normalization, with guidance for net bookings between $625 million and $675 million.