TTWO Q1 2025 Earnings

Call Details

• Call Title: Take-Two Interactive Q1 2025 Earnings Call
• Date: August 8, 2024 at 8:30 PM UTC
• Management Team:
  • Nicole Shevins (Senior Vice President of Investor Relations and Corporate Communications)
  • Strauss Zelnick (Chairman and Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)

Call Summary

Financial Performance

• First quarter net bookings were $1.22B and were in line with the company's guidance range of $1.2B to $1.25B.
• GAAP net revenue increased 4% year-over-year to $1.34B for the quarter.
• Cost of revenue declined 6% year-over-year to $567M for the quarter.
• GAAP operating expenses increased 8% year-over-year to $956M for the quarter.
• On a management basis, operating expenses rose 12% year-over-year, which was reported to be better than forecast due to lower R&D and marketing costs.
• Recurrent consumer spending was flat for the period and accounted for 83% of net bookings.
• Mobile net bookings grew mid-single digits for the quarter, driven by Match Factory and growth in June Blast while Grand Theft Auto Online and NBA 2K were down.

Guidance

• Full-year net bookings guidance is reiterated at $5.55B to $5.65B, representing 5% growth versus fiscal 2024.
• Full-year GAAP net revenue is guided to $5.57B to $5.67B.
• Full-year cost of revenue is guided to $2.38B to $2.41B.
• Full-year total operating expenses are guided to $3.7B to $3.72B, compared to $5.83B last year.
• On a management basis, full-year operating expense growth is expected to be approximately 10% year-over-year.
• Full-year recurrent consumer spending growth is forecast at approximately 3% and is expected to represent 77% of net bookings.
• Full-year label net bookings mix is forecast at roughly 50% Zynga, 32% 2K, 17% Rockstar Games, and 1% other.
• Geographic net bookings are forecast at about 60% United States and 40% international.
• Second-quarter net bookings are guided to $1.42B to $1.47B, with GAAP net revenue of $1.29B to $1.34B and operating expenses planned at $982M to $992M.