Take Two Interactive Software : Q1 2022 Earnings Presentation

Take -Two Interactive Software, Inc .

( N A S DAQ : T T WO )

Q1 FY2022 Results

Cautionary Note:

Forward Looking Statements

The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company's future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including: the 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 our operations, including our ability to timely deliver our titles and other products, and on the operations of our counterparties, including retailers and distributors; the effects of the COVID-19 pandemic on consumer demand and the discretionary spending patterns of our customers, including as the situation with the pandemic continues to evolve; the impact of reductions in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of potential inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation 5 and Xbox Series X/S; the timely release and significant market acceptance of our games; the ability to maintain acceptable pricing levels on our games; and risks associated with international operations.

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 SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to

update any forward-looking statement, whether as a result of new information, future events or otherwise.

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1Q2022 RESULTS SUMMARY: GAAP

FINANCIAL SUMMARY ($ in millions, except EPS)

		Q 1
	A C T U A L	G U I D A N C E
GAAP Net Revenue	$ 8 1 3	$ 7 3 0 T O $ 7 8 0
Operating Expenses	$ 3 1 3	$ 3 1 6 T O $ 3 2 6
GAAP Net Income	$152	$116 TO $129
G A A P E P S	$ 1 . 3 0	$ 1 . 00 T O $ 1 . 1 0

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1Q2022 RESULTS SUMMARY: SELECT MANAGEMENT RESULTS

SELECT OPERATING AND FINANCIAL DATA ($ in millions)

		Q 1
	A C T U A L	G U I D A N C E
Net Bookings*	$ 7 1 1	$ 62 5 T O $ 67 5
C h a n g e i n R e c u r r e n t C o n s u m e r	-25%	-30%
S p e n d i n g ( R C S )
Change in Digitally-Delivered Net	- 2 6%	- 3 0%
Bookings
N o n - G A A P A d j u s t e d U n r e s t r i c t e d	$ 2 9	-
O p e r a t i n g C a s h F l o w ( A U O C F )

• Second-highestQ1 Net Bookings on record
• Overall engagement exceeded our expectations
• RCS outperformance was primarily driven by Grand Theft Auto Online, as well as the addition of Nordeus
• Digitally-deliveredNet Bookings performed better than our expectations, primarily due to the outperformance of RCS

* Net 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,	4
strategy guides and publisher incentives.

N e t R e v e n u e & N e t B o o k i n g s

GAAP Net

Revenue

$3,089

$3,373

$3,140 -

$ in Millions

$400

$3,240

$684

64% of

Total

$831

$813

47% of

$96

70% of

$73

60% of

Total

$2,972

Total

Total

$2,405

$736

$741

Q1 FY21

Q1 FY22

FY20

FY21

FY22E

Recurrent Consumer Spending

Physical & Other

Digital

Recurrent Consumer Spending

Physical & Other

Digital

Net Bookings (Operational

$3,553

$3,200 -

Metric)

$405

$3,300

$ in Millions

$2,990

$523

65% of

65% of

Total

$99

Total

53% of

6

66% of

$72

$711

Total

$3,148

87% of Total

Total

69% of

$31

$2,467

$925

Total

$680

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Q1 FY21

Q1 FY22

FY20

FY21

FY22E

Recurrent Consumer Spending

Physical & Other

Digital

Recurrent Consumer Spending

Physical & Other

Digital