TTWO Q1 2022 Earnings

Call Details

• Call Title: Take-Two Interactive Q1 2022 Earnings Call
• Date: August 2, 2021 at 8:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)
  • Nicole Shevins (Senior Vice President of Investor Relations and Corporate Communications)

Call Summary

Financial Performance

• Net bookings for Q1 were $711 million, which exceeded prior guidance of $625 million to $675 million and marked the company's second highest Q1 on record.
• GAAP net revenue declined 2% to $813 million for the quarter.
• GAAP cost of goods sold decreased 31% to $330 million in Q1.
• GAAP operating expenses increased 15% to $313 million, driven by higher personnel and stock compensation and the additions of PlayDots and Nordius.
• GAAP net income was $152 million, or $1.30 per share, versus $89 million, or $0.77 per share, in the prior-year quarter.
• The company ended the quarter with over $2.5 billion of cash and short-term investments.

Guidance

• Take-Two reiterated full fiscal year net bookings guidance of $3.2 to $3.3 billion.
• Full year GAAP net revenue is expected to range from $3.14 to $3.24 billion and GAAP net income is expected to range from $229 to $259 million, or $1.95 to $2.20 per share.
• The company now expects recurring consumer spending to decline by 9% for fiscal 2022 versus the prior outlook of a 15% decline.
• Digitally delivered net bookings are now projected to decrease approximately 6% for fiscal 2022 versus a prior outlook of an 8% decline, with digital expected to represent about 90% of net bookings.
• Label and geographic mixes are forecasted at roughly 55% 2K, 35% Rockstar Games, 10% Private Division and T2 Mobile Games, and about 60% United States and 40% international.
• For fiscal Q2, the company projects net bookings of $815 to $865 million and GAAP net income of $41 to $53 million, or $0.35 to $0.45 per share.