TTWO Q2 2024 Earnings

Call Details

• Call Title: Take-Two Interactive Q2 2024 Earnings Call
• Date: November 8, 2023 at 9:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)
  • Nicole Shevins (Senior Vice President of Investor Relations and Corporate Communications)

Call Summary

Financial Performance

• The company reported net bookings of $1.44 billion for the quarter, which was described as at the high end of guidance.
• GAAP net revenue decreased 7% year over year to $1.3 billion for the quarter.
• Cost of revenue increased 24% year over year to $884 million, driven by a $220 million impairment charge and $190 million of amortization of acquired intangibles during the period.
• Operating expenses increased 3% year over year to $959 million and included a $165 million goodwill impairment related to a partial impairment of one reporting unit.
• On a management basis, operating expenses were flat year over year for the quarter, with management attributing the benefit to lower marketing spend and timing shifts.
• Recurrent consumer spending (RCS) declined 7% for the period and represented 78% of net bookings for the quarter.

Guidance

• The company reiterated fiscal 2024 net bookings guidance of $5.45 to $5.55 billion for the full year.
• The company forecasts GAAP net revenue for fiscal 2024 to range from $5.37 to $5.47 billion.
• The company projects full-year operating expenses to range from $3.53 to $3.55 billion compared to $3.45 billion last year.
• On a management basis, the company continues to expect operating expense growth of approximately 14% year over year for the full year driven by a full year of Zynga and higher personnel and marketing expenses.
• Third quarter fiscal 2024 net bookings are projected to range from $1.3 to $1.35 billion compared to $1.4 billion in the third quarter last year.
• Third quarter recurrent consumer spending is projected to decrease by approximately 5%, while Grand Theft Auto Online virtual currency and GTA Plus membership are expected to be up for the quarter.