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Take-Two Interactive Software Inc. (TTWO-1.67%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a slight decrease in net revenue to $1,359.8 million from $1,366.3 million in the same quarter the previous year. This decrease is attributed to lower sales from the Grand Theft Auto and Red Dead Redemption franchises.
Gross profit for the quarter was $759.9 million, representing 55.9% of net revenue, compared to 49.7% in the same quarter of the previous year. The increase in gross profit percentage was primarily due to lower amortization of intangible assets.
Operating expenses for the quarter increased to $892.0 million from $807.6 million, driven by higher selling and marketing expenses and general and administrative expenses.
The company reported a net loss of $125.2 million for the quarter, compared to a net loss of $91.6 million in the previous year. The increase in net loss was primarily due to higher operating expenses.
Cash used in operating activities was $324.2 million, while cash provided by financing activities was $628.2 million, primarily from the issuance of senior notes.
Take-Two had cash and cash equivalents of $1,206.8 million as of December 31, 2024. The company believes it has sufficient liquidity to meet its short-term and long-term obligations.
The filing also details the acquisition of The Gearbox Entertainment Company, Inc. for $435.0 million, which is expected to enhance Take-Two's portfolio of owned intellectual property.
Take-Two continues to focus on expanding its presence internationally, particularly in Asia, and increasing its digital and mobile offerings.
The company acknowledges its dependence on the success of its key franchises, including Grand Theft Auto and NBA 2K, and the potential impact of macroeconomic factors on its business.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Take-Two Interactive Software Inc. quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.