TTWO Q4 2021 Earnings

Call Details

• Call Title: Take-Two Interactive Q4 2021 Earnings Call
• Date: May 18, 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 IR and Corporate Communications)

Call Summary

Financial Performance

• Total net bookings grew 19% to a new record of $3.55 billion for fiscal 2021.
• Fourth quarter total net bookings grew 8% to $785 million and exceeded guidance of $602 to $652 million.
• GAAP net revenue for fiscal 2021 grew 9% to $3.37 billion.
• GAAP net income for fiscal 2021 grew 46% to $589 million, or $5.09 per share.
• GAAP net revenue grew 10% to $839 million in Q4 and GAAP net income grew 78% to $219 million, or $1.88 per share, in Q4.
• Non-GAAP adjusted unrestricted operating cash flow was $920 million for fiscal 2021, above prior outlook of over $750 million.
• Cash and short-term investments exceeded $2.7 billion at fiscal year end and capital expenditures were $69 million for fiscal 2021.

Monetization & Bookings Quality

• Recurrent consumer spending grew 48% for fiscal 2021 and represented 63% of total net bookings.
• Recurrent consumer spending grew 17% in the fourth quarter and accounted for 67% of Q4 net bookings.
• Digitally delivered net bookings grew 27% to approximately $3.1 billion and represented 87% of total net bookings for fiscal 2021.
• Digitally delivered net bookings grew 8% in Q4 and accounted for 92% of total net bookings in the fourth quarter.
• Console digital share increased to 64% of console game sales for fiscal 2021, up from 55% the prior year.
• First quarter fiscal 2022 guidance expects recurrent consumer spending to decline by 30% year-over-year and digitally delivered net bookings to decline by approximately 30%.
• Fiscal 2022 guidance assumes digital will represent 87% of the business and that 74% of console game sales will be delivered digitally.