TTWO Q1 2019 Earnings

Call Details

• Call Title: Take-Two Interactive Q1 2019 Earnings Call
• Date: August 5, 2019 8:30 PM UTC
• Management Team:
  • Rebecca Lau (Vice President, Investor Relations and Corporate Finance)
  • Frank Jabot (Chief Executive Officer)
  • Jer Griffin (Chief Financial Officer)

Call Summary

Financial Performance

• Reported revenue was $265M for Q1 2019, up 27% year-over-year.
• Reported bookings were $359M for Q1 2019, up 64% year-over-year.
• Mobile revenue was $246M for the quarter, up 35% year-over-year, and mobile bookings were $341M, up 77% year-over-year.
• Mobile represented 93% of total revenue and 95% of total bookings in Q1 2019.
• Net increase in deferred revenue for Q1 2019 was $94M, which management stated was a key driver of the revenue vs bookings variance.
• GAAP operating expenses were $285M in Q1 2019, up $150M or 112% year-over-year and equal to 108% of revenue versus 65% in the prior year.
• Non-GAAP operating expenses were $183M in Q1 2019, up $63M or 52% year-over-year and represented 51% of bookings versus 55% in the prior year.
• Reported net loss was $129M in Q1 2019, which was $70M worse than guidance, and adjusted EBITDA was a loss of $19M, which was $10M better than guidance.

Monetization & Bookings Quality

• Bookings of $359M exceeded revenue by $94M due to a net increase in deferred revenue driven primarily by acquired titles.
• Company stated booking speed beat was $34M in Q1, which contributed $25M of revenue upside versus guidance.
• Management said bookings growth in 2019 is expected to outpace revenue growth due to continued deferral of bookings from newly acquired games such as Empires and Puzzles.
• Android revenue grew 43% year-over-year and Android bookings were described as having doubled year-over-year.
• Specific payer-conversion, ARPDAU, unique payers, and take-rate metrics were not disclosed.
• Top-10 game-level bookings disclosure did not include Empires and Puzzles on a revenue basis due to accounting deferral even though it was described as a material bookings contributor.