Take Two Interactive Software : Q3 2021 Earnings Presentation

Take-Two Interactive Software, Inc.

( N A S DA Q : T T WO )

Third Quarter Fiscal 2021 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 Grand Theft Auto and NBA 2K products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation 5 and Xbox Series X; 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.

Net Revenue & Net Bookings

									Net Revenue					$3,089	$3,240 - $3,290
$ in Millions								$2,668
													$710
$930								$987
		$861
													45% of
$230			$132
								Total
						62% of				40% of
		37% of		Total						Total		$2,379
			Total			$729				$1,682
$700
				Q3 FY20		Q3 FY21	FY19	FY20					FY21E
				Recurrent Consumer Spending		Physical & Other		Digital			Recurrent Consumer Spending			Physical & Other		Digital
								Net Bookings (Operational Metric)
																			$3,370 - $3,420
$ in Millions								$2,929		$2,990
												$1,127		$550
$888											51% of
$198			$814				39% of	Total
		$150
						58% of				Total		$2,440
						Total
		41% of
									$1,802
			Total
$691			$664
				Q3 FY20		Q3 FY21	FY19	FY20					FY21E

Recurrent Consumer Spending		Physical & Other		Digital		Recurrent Consumer Spending		Physical & Other		Digital

Cash Flow

Net Cash From Operating Activities(1)

	$844
	$810
	$788
$ in Millions	$686
	$440

$35	$40	$67	$53	$75

9 Months FY20		9 Months FY21	FY19	FY20		FY21E
	Net Cash From Operating Activities		Capital Expenditures		Net Cash From Operating Activities		Capital Expenditures

Adjusted Unrestricted Operating Cash Flow (Non-GAAP)(2)

$854

$ in Millions	$715	$750
	$615
	$548

$35	$40	$67	$53	$75

9 Months FY20	9 Months FY21		FY19	FY20		FY21E
Adjusted Unrestricted Operating Cash Flow		Capital Expenditures		Adjusted Unrestricted Operating Cash Flow		Capital Expenditures

1. During Q1 FY19, the Company adopted Accounting Standards Update 2016-18,Statement of Cash Flows (Topic 230): Restricted Cash, and applied that standard retroactively. The application of this new standard resulted in a decrease to net cash from operating activities of $128.1 million in FY19, as reflected in the charts above.
2. The Company is reporting a Non-GAAP measure of financial performance: Adjusted unrestricted Operating Cash Flow, which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash.