TTWO Q2 2020 Earnings

Call Details

• Call Title: Take-Two Interactive Q2 2020 Earnings Call
• Date: November 7, 2019 at 9:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chairman and 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 Q2 FY2020 versus the prior year period.
• GAAP net revenue increased to $858 million in the quarter while cost of goods sold rose to $468 million.
• GAAP operating expenses increased 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 Q2 FY2019.
• Adjusted unrestricted operating cash flow for the six months ended September 30, 2019 was $41 million.
• The company ended the period with $1.5 billion in cash and short-term investments.

Guidance

• The company projects Q3 net bookings to range from $860 to $910 million.
• For Q3 the company expects GAAP net revenue to range from $915 to $965 million, cost of goods sold of $425 to $452 million, and GAAP net income of $159 to $170 million, or $1.39 to $1.49 per share.
• For full fiscal 2020 the company raised net bookings guidance to $2.75 to $2.85 billion from a prior outlook of $2.6 to $2.7 billion.
• Full fiscal 2020 GAAP net revenue is expected to range from $2.93 to $3.03 billion and GAAP net income is expected to range from $388 to $416 million, or $3.38 to $3.63 per share.
• The company now expects recurrent consumer spending to increase by 25% for fiscal 2020, up from prior mid-teens expectations.
• Digitally delivered net bookings are projected to grow nearly 30% for fiscal 2020 with an assumed 57% of current generation console games delivered digitally.