Take-Two Interactive Software, Inc. stock research
FY2025 Q1
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Sequentially, revenue decreased slightly, but gross profit rose substantially and cost of revenue fell sharply, leading to a significantly higher gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2025 Q1
Revenue was stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Sequentially, revenue decreased slightly, but gross profit rose substantially and cost of revenue fell sharply, leading to a significantly higher gross margin.
- The most observable margin driver is the reduction in cost of revenue, which declined sequentially and year-over-year while revenue remained relatively stable.
- Compared to the immediately preceding quarter, gross margin improved markedly due to a lower cost of revenue and higher gross profit despite a slight drop in revenue. Relative to the same quarter one year earlier, gross margin also strengthened, supported by a higher gross profit on comparable revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.6%
Gross profit
$771.1M
Revenue
$1.3B
Cost of revenue
$567.1M
Quarter-over-quarter change
+24.1 pts
Year-over-year change
+4.8 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $1.3B | $415.4M | $883.8M | 32.0% |
| Dec 31, 2023 | $1.4B | $678.1M | $688.2M | 49.6% |
| Mar 31, 2024 | $1.4B | $469.1M | $930.3M | 33.5% |
| Jun 30, 2024 | $1.3B | $771.1M | $567.1M | 57.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+24.1 pts
Year-over-year change
Jun 30, 2023
+4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the reduction in cost of revenue, which declined sequentially and year-over-year while revenue remained relatively stable.
Compared to the immediately preceding quarter, gross margin improved markedly due to a lower cost of revenue and higher gross profit despite a slight drop in revenue. Relative to the same quarter one year earlier, gross margin also strengthened, supported by a higher gross profit on comparable revenue.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the gross margin improvement.