TTWO Q3 2021 Earnings

Call Details

• Call Title: Take-Two Interactive Q3 2021 Earnings Call
• Date: February 8, 2021 at 9:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chairman and Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)
  • Nicole Shevins (Senior Vice President, Investor Relations and Corporate Communications)

Call Summary

Financial Performance

• Net bookings for Q3 were $814 million, which exceeded the outlook of $675 to $725 million.
• GAAP net revenue for the quarter was $861 million and GAAP net income was $182 million, or $1.57 per share, which was up 11% versus $164 million, or $1.43 per share, in the prior-year quarter.
• Cost of goods sold for the quarter was $346 million and operating expenses were $339 million, which was an increase of 7% year over year.
• Digitally delivered net bookings accounted for 82% of total net bookings in the quarter, and digitally delivered net bookings declined by 4% relative to the company outlook.
• Recurrent consumer spending grew 30% in the quarter and represented 58% of net bookings for the period.
• Cash and short-term investments ended the quarter at $2.42 billion, excluding cash that was previously restricted related to the Codemasters offer.

Guidance

• Q4 net bookings were guided to $602 to $652 million versus $729 million in the prior-year quarter.
• Q4 GAAP net revenue was guided to $702 to $752 million and Q4 GAAP net income was guided to $102 to $113 million, or $0.88 to $0.98 per share.
• Full-year fiscal 2021 net bookings were raised to a new record range of $3.37 to $3.42 billion, up from prior guidance of $3.15 to $3.25 billion and original guidance of $2.55 to $2.65 billion.
• Digitally delivered net bookings for the full year were projected to represent 87% of net bookings and were reforecast to increase approximately 20% versus the prior outlook.
• Recurrent consumer spending for the full year was reforecast to grow approximately 45% versus the prior outlook of 30% growth and to represent approximately 64% of net bookings versus 51% last year.
• Non-GAAP adjusted unrestricted operating cash flow was raised to more than $750 million from a prior outlook of more than $650 million, and planned capital expenditures were roughly $75 million.