Take-Two Interactive Software, Inc. stock research
FY2024 Q2
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter but slightly lower than the same quarter last year. Gross profit and gross margin weakened significantly from both the preceding quarter and the year-ago period, driven by a substantially higher cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q2
Revenue was stable compared to the prior quarter but slightly lower than the same quarter last year. Gross profit and gross margin weakened significantly from both the preceding quarter and the year-ago period, driven by a substantially higher cost of revenue.
- The most observable driver of the gross margin decline is the increase in cost of revenue relative to revenue, as revenue remained nearly unchanged while cost of revenue rose sharply from the prior quarter.
- Compared to the immediately preceding quarter, gross margin weakened substantially, with gross profit lower despite similar revenue. Versus the same quarter one year earlier, gross margin also weakened, as revenue was slightly lower and cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.0%
Gross profit
$415.4M
Revenue
$1.3B
Cost of revenue
$883.8M
Quarter-over-quarter change
-20.9 pts
Year-over-year change
-16.8 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% |
| Sep 30, 2023 | $1.3B | $415.4M | $883.8M | 32.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-20.9 pts
Year-over-year change
Sep 30, 2022
-16.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin decline is the increase in cost of revenue relative to revenue, as revenue remained nearly unchanged while cost of revenue rose sharply from the prior quarter.
Compared to the immediately preceding quarter, gross margin weakened substantially, with gross profit lower despite similar revenue. Versus the same quarter one year earlier, gross margin also weakened, as revenue was slightly lower and cost of revenue was higher.
Monitor the trajectory of cost of revenue, as its increase was the primary factor behind the margin compression in the current quarter.