Take-Two Interactive Software, Inc. stock research
FY2024 Q1
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was lower than the preceding quarter, while cost of revenue decreased at a much larger rate, yielding gross profit substantially higher and gross margin improved. Compared to the same quarter one year earlier, revenue was higher yet cost of revenue increased faster, leading to gross profit slightly higher and gross margin weakened.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2024 Q1
Revenue was lower than the preceding quarter, while cost of revenue decreased at a much larger rate, yielding gross profit substantially higher and gross margin improved. Compared to the same quarter one year earlier, revenue was higher yet cost of revenue increased faster, leading to gross profit slightly higher and gross margin weakened.
- Gross profit in the current quarter was markedly higher than the preceding quarter, driven by a steep decline in cost of revenue relative to the revenue change. The relationship between revenue and cost of revenue was the dominant factor shaping the margin outcome.
- Sequentially, gross margin improved materially from a weak level as revenue decreased but cost of revenue declined even more. Year over year, gross margin weakened from a higher level as revenue increased but cost of revenue grew by a larger proportion.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.9%
Gross profit
$679.2M
Revenue
$1.3B
Cost of revenue
$605.5M
Quarter-over-quarter change
+37.4 pts
Year-over-year change
-7.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.4B | $223.2M | $1.2B | 15.4% |
| Jun 30, 2023 | $1.3B | $679.2M | $605.5M | 52.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+37.4 pts
Year-over-year change
Jun 30, 2022
-7.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit in the current quarter was markedly higher than the preceding quarter, driven by a steep decline in cost of revenue relative to the revenue change. The relationship between revenue and cost of revenue was the dominant factor shaping the margin outcome.
Sequentially, gross margin improved materially from a weak level as revenue decreased but cost of revenue declined even more. Year over year, gross margin weakened from a higher level as revenue increased but cost of revenue grew by a larger proportion.
Monitor the trajectory of cost of revenue, which showed a sharp sequential decline but a notable year-over-year increase.