TTWO Q2 2019 Earnings

Call Details

• Call Title: Take-Two Interactive Q2 2019 Earnings Call
• Date: November 7, 2019 at 9:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)
  • Hank Diamond (Senior Vice President of Investor Relations and Corporate Communications)

Call Summary

Financial Performance

• Total net bookings grew 63% to $951 million in the quarter versus the prior year.
• GAAP net revenue increased to $858 million in the quarter and cost of goods sold increased to $468 million.
• Operating expenses rose 36% to $315 million driven primarily by higher marketing, personnel, and R&D costs.
• GAAP net income was $72 million or $0.63 per share versus $25 million or $0.22 per share in the prior-year quarter.
• Adjusted unrestricted operating cash flow for the six months ended September 30, 2019 increased to $41 million.
• Digitally delivered net bookings grew 63% and accounted for 73% of total net bookings in the quarter.
• Recurrent consumer spending grew 39% and represented 45% of total net bookings in the quarter.

Guidance

• Third quarter net bookings are projected to range from $860 million to $910 million.
• Third quarter GAAP net revenue is forecast to range from $915 million to $965 million, with COGS of $425 million to $452 million.
• Third quarter operating expenses are expected to be $312 million to $322 million and GAAP net income is forecast at $159 million to $170 million, or $1.39 to $1.49 per share.
• Full fiscal 2020 net bookings are now expected to range from $2.75 billion to $2.85 billion, up from the prior outlook of $2.6 billion to $2.7 billion.
• Full fiscal 2020 recurrent consumer spending is now expected to increase by 25%, up from prior mid-teens guidance.
• Full fiscal 2020 digitally delivered net bookings are projected to grow nearly 30%, up from prior high-teens guidance.
• Full fiscal 2020 GAAP net revenue is expected to range from $2.93 billion to $3.03 billion and GAAP net income is expected to range from $388 million to $416 million, or $3.38 to $3.63 per share.