TTWO Q2 2022 Earnings

Call Details

• Call Title: Take-Two Interactive Q2 2022 Earnings Call
• Date: November 3, 2021 at 8:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chairman and Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)
  • Nicole Shevins (Senior Vice President of Investor Relations)

Call Summary

Financial Performance

• Net bookings for the quarter were $985M, which exceeded guidance of $815M to $865M and were up 3% versus the prior year.
• GAAP net revenue increased 2% to $858M for the quarter.
• Cost of goods sold rose 6% to $457M and included a $53M impairment charge for an unannounced title.
• Operating expenses increased 30% to $381M versus the prior year, driven by personnel, marketing, IT, PlayDots and Nordius additions, and earn-out revaluation.
• GAAP net income was $10M, or $0.09 per share, versus $99M, or $0.86 per share, in the prior year quarter.
• The company ended the quarter with approximately $2.3B of cash and short-term investments.

Guidance

• Full fiscal 2022 net bookings outlook was raised to $3.3B to $3.4B from the prior $3.2B to $3.3B outlook.
• Recurrent consumer spending is now expected to decline 6% versus the prior year, compared to the prior outlook of a 9% decline.
• Recurrent consumer spending is expected to represent 66% of net bookings, versus 65% last year.
• Digitally delivered net bookings are projected to decline approximately 4%, with digital representing roughly 90% of total net bookings versus 89% last year.
• GAAP net revenue guidance was raised to $3.35B to $3.45B, cost of goods sold is expected to be $1.51B to $1.55B, and total operating expenses are expected to be $1.47B to $1.49B.
• The company expects more than $400M in non-GAAP adjusted unrestricted operating cash flow and plans approximately $170M in capital expenditures for the fiscal year.