TTWO Q4 2023 Earnings

Call Details

• Call Title: Take-Two Interactive Q4 2023 Earnings Call
• Date: May 17, 2023 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

• Take-Two reported fourth quarter net bookings of $1.39B which exceeded the guidance range of $1.31B to $1.36B.
• Fiscal 2023 total net bookings were $5.28B which exceeded the prior outlook range of $5.20B to $5.25B.
• GAAP net revenue for fiscal 2023 grew 53% to $5.35B and GAAP net loss was $1.12B, or $7.03 per share.
• Cost of revenue for fiscal 2023 increased to $3.1B and included $465M of impairment charges related to intangible assets acquired from Zynga.
• Non-GAAP adjusted unrestricted operating cash flow for fiscal 2023 was $56M versus the outlook of over $400M.
• At fiscal year end, cash and short-term investments were approximately $1.0B and total debt was $3.1B.

Guidance

• Fiscal 2024 net bookings are guided to $5.45B to $5.55B and fiscal 2024 GAAP net revenue is guided to $5.37B to $5.47B.
• Company expects fiscal 2024 non-GAAP adjusted unrestricted operating cash flow of approximately $100M and plans $180M of capital expenditures.
• Label contribution to fiscal 2024 net bookings is forecasted at roughly 53% Zynga, 31% 2K, 15% Rockstar Games, and 1% other.
• Geographic mix for fiscal 2024 net bookings is forecasted at approximately 67% United States and 33% international.
• The company expects current consumer spending to be up approximately 5% in fiscal 2024 and to represent about 79% of net bookings.
• The company reiterated expectations for fiscal 2025 of over $8.0B in net bookings and over $1.0B in adjusted unrestricted operating cash flow.