Take-Two Interactive Software, Inc. stock research
FY2024 Q3
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved from the prior quarter but weakened from the year-ago quarter, as cost of revenue decreased sequentially but increased year-over-year, resulting in a gross margin that strengthened from the prior quarter but weakened from the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q3
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved from the prior quarter but weakened from the year-ago quarter, as cost of revenue decreased sequentially but increased year-over-year, resulting in a gross margin that strengthened from the prior quarter but weakened from the year-ago quarter.
- The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as cost of revenue declined while revenue increased. This improvement is tempered by the year-over-year weakening in gross margin, where cost of revenue rose slightly while revenue was stable.
- Compared to the prior quarter, gross margin improved significantly as cost of revenue decreased and revenue increased. Compared to the same quarter last year, gross margin weakened slightly as cost of revenue increased while revenue was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.6%
Gross profit
$678.1M
Revenue
$1.4B
Cost of revenue
$688.2M
Quarter-over-quarter change
+17.7 pts
Year-over-year change
-1.2 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% |
| Dec 31, 2023 | $1.4B | $678.1M | $688.2M | 49.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+17.7 pts
Year-over-year change
Dec 31, 2022
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as cost of revenue declined while revenue increased. This improvement is tempered by the year-over-year weakening in gross margin, where cost of revenue rose slightly while revenue was stable.
Compared to the prior quarter, gross margin improved significantly as cost of revenue decreased and revenue increased. Compared to the same quarter last year, gross margin weakened slightly as cost of revenue increased while revenue was stable.
Monitor the trajectory of cost of revenue, which decreased sequentially but increased year-over-year, as it directly impacts gross margin stability.