TTWO Q2 2021 Earnings

Call Details

• Call Title: Take-Two Interactive Q2 2021 Earnings Call
• Date: November 5, 2020 at 9:30 PM UTC
• Management Team:
  • Hank Diamond (Senior Vice President of Investor Relations and Corporate Communications)
  • Strauss Zelnick (Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)

Call Summary

Financial Performance

• Net bookings for Q2 grew to $958M and exceeded the prior outlook range of $775M to $825M.
• GAAP net revenue for Q2 was $841M and cost of goods sold was $433M for the quarter.
• GAAP net income for Q2 was $99M, or $0.86 per share, compared with $72M, or $0.63 per share, in Q2 last year.
• Digitally delivered net bookings grew 14% and represented 83% of total Q2 net bookings.
• Recurrent consumer spending grew 43% in Q2 and accounted for 64% of net bookings in the quarter.
• Operating expenses decreased 7% year-over-year to $293M in Q2, driven primarily by lower marketing spend.

Guidance

• Q3 net bookings are projected to be $675M to $725M versus $888M in Q3 last year.
• Q3 digitally delivered net bookings are expected to be down approximately 15% and to represent 82% of total net bookings.
• Q3 recurrent consumer spending is projected to grow approximately 5% year-over-year.
• Full-year net bookings outlook was raised to $3.15B to $3.25B from prior $2.8B to $2.9B and is described as a record net bookings outlook.
• Digitally delivered net bookings are now expected to increase by approximately 15% for the full year, with digital representing roughly 87% of net bookings.
• Full-year recurring consumer spending is now expected to grow approximately 30% and to represent about 63% of net bookings.
• The company projects GAAP net revenue for the full year to range from $3.05B to $3.15B and GAAP cost of goods sold to range from $1.44B to $1.49B.