TTWO Q3 2024 Earnings

Call Details

• Call Title: Take-Two Interactive Q3 2024 Earnings Call
• Date: February 8, 2024 at 9:30 PM UTC
• Management Team:
  • Adam Strauss-Zelnick (Chairman and 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

• Net bookings for the quarter were reported as $1.34B by the CFO and referenced as $1.3B in prepared remarks.
• GAAP net revenue for the quarter decreased 3% year-over-year to $1.37B as stated on the call.
• Cost of revenue declined 1% to $688M and included a $53M impairment charge and $177M of amortization of acquired intangibles.
• Operating expenses declined 10% to $808M on a GAAP basis, while management-basis operating expenses rose 4% year-over-year.
• Recurrent consumer spending declined 7% for the period and accounted for 75% of net bookings for the quarter.
• Zynga in-app purchases exceeded expectations with significant sequential improvement, while Zynga advertising revenues were below expectations.

Guidance

• The company lowered its full fiscal year net bookings outlook to a range of $5.25B to $5.3B.
• The company now expects GAAP net revenue for the full year to range from $5.27B to $5.32B.
• The revised label mix for net bookings is forecast to be approximately 51% Zynga, 30% 2K, and 19% Rockstar Games.
• Geographic net bookings are forecast to be about 60% United States and 40% international for the full year.
• Recurring consumer spending is projected to be up 1% year-over-year for the full fiscal year, and RCS is expected to represent 79% of net bookings.
• Fourth quarter net bookings are guided to $1.27B to $1.32B with GAAP net revenue guided to $1.32B to $1.37B and operating expenses guided to $896M to $906M.