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Take-Two Interactive Software, Inc. stock research

Mar 31, 2024

FY2024 Q4

Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Mar 31, 2024

This quarter's gross margin weakened sequentially but improved from the same quarter last year. Revenue was stable, while gross profit and cost of revenue shifted accordingly.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q4

This quarter's gross margin weakened sequentially but improved from the same quarter last year. Revenue was stable, while gross profit and cost of revenue shifted accordingly.

  • The primary driver was the change in gross profit relative to revenue, as gross profit decreased from the prior quarter and increased from a year ago.
  • Compared to the prior quarter, gross margin was lower, with gross profit decreasing and cost of revenue increasing. Compared to the same quarter last year, gross margin was higher, with gross profit increasing and cost of revenue decreasing.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

33.5%

Gross profit

$469.1M

Revenue

$1.4B

Cost of revenue

$930.3M

Quarter-over-quarter change

-16.1 pts

Year-over-year change

+18.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$1.3B$679.2M$605.5M52.9%
Sep 30, 2023$1.3B$415.4M$883.8M32.0%
Dec 31, 2023$1.4B$678.1M$688.2M49.6%
Mar 31, 2024$1.4B$469.1M$930.3M33.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

-16.1 pts

Year-over-year change

Mar 31, 2023

+18.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary driver was the change in gross profit relative to revenue, as gross profit decreased from the prior quarter and increased from a year ago.

Compared to the prior quarter, gross margin was lower, with gross profit decreasing and cost of revenue increasing. Compared to the same quarter last year, gross margin was higher, with gross profit increasing and cost of revenue decreasing.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.