TAKE-TWO INTERACTIVE
SOFTWARE, INC.
(NASDAQ: TTWO)
SECOND QUARTER FISCAL 2023 RESULTS & GUIDANCE SUMMARY
CAUTIONARY NOTE:
FORWARD LOOKING STATEMENTS
Statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company's future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including: risks relating to our combination with Zynga; the uncertainty of the impact of the COVID-19 pandemic and measures taken in response thereto; the effect that measures taken to mitigate the COVID-19 pandemic have on our operations, including our ability to timely deliver our titles and other products, and on the operations of our counterparties, including retailers and distributors; the effects of the COVID-19 pandemic on both consumer demand and the discretionary spending patterns of our customers as the situation with the pandemic continues to evolve; the risks of conducting business internationally; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of potential inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; the timely release and significant market acceptance of our games; the ability to maintain acceptable pricing levels on our games; and risks associated with international operations.
Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company's most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward- looking statement, whether as a result of new information, future events or otherwise.
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Q2 FY2023 Results Summary:
GAAP
FINANCIAL SUMMARY ($ in millions, except EPS)
Q2 | |||
ACTUAL | GUIDANCE | ||
GAAP Net Revenue | $1,394 | $1,370 TO $1,420 | |
Operating Expenses | $932 | $849 TO $859 | |
GAAP Net Income | $(257) | $(160) | TO $(144) |
GAAP EPS | $(1.54) | $(0.96) | TO $(0.86) |
Note: GAAP results were impacted by amortization of acquired intangibles and business acquisition costs
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Q2 FY2023 RESULTS SUMMARY:
SELECT MANAGEMENT RESULTS
SELECT FINANCIAL DATA ($ in millions)
Q2 | ||
ACTUAL | GUIDANCE | |
Net Bookings | $1,505 | $1,500 TO $1,550 |
Recurrent Consumer Spending | +76% | +85% |
Growth (RCS) | ||
Digitally-Delivered Net Bookings | +62% | +70% |
Growth | ||
- Net Bookings were $1.5 billion, which was in-line with our guidance
- Movement in foreign currency exchange rates negatively impacted our Net Bookings by approximately 1%
- With consumers navigating ongoing macroeconomic uncertainties, we believe that our financial performance demonstrates the incredible quality of our games and the significant value that our interactive entertainment experiences provide our players
- RCS rose 76%. NBA 2K and Rollic's hyper-casual mobile portfolio outperformed our plans, while we experienced some softness across other parts of our portfolio as the interactive entertainment industry faced continued headwinds
- We ended the quarter with over $1.3 billion in cash and short-term investments and $3.3 billion of debt
Note: Results from last year did not include Zynga business.
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N e t R e v e n u e & N e t B o o k i n g s
GAAP Net Revenue
$ in Millions | ||||||||
$400 | $5,410 - $5,510 | |||||||
$1,394 | $684 | |||||||
79% of | $75 | $400 | $356 | |||||
Total | ||||||||
$858 | $3,373 | $3,505 | ||||||
$356 | ||||||||
$79 | 64% of | $400 | ||||||
66% of | 65% of | |||||||
Total | $1,319 | Total | Total | |||||
$779 | $2,972 | $3,149 | ||||||
Q2 FY22 | Q2 FY23 | FY21 | FY22 | FY23E | ||||||||||||||||||||
Recurrent Consumer Spending | Physical & Other | Digital | Recurrent Consumer Spending | Physical & Other | Digital | |||||||||||||||||||
(Operational Metric) | ||||||||||||||||||||||||
Net Bookings | $405 | |||||||||||||||||||||||
$ in Millions | $1,505 | $5,400 - $5,500 | ||||||||||||||||||||||
80% of | $84 | $523 | ||||||||||||||||||||||
Total | $405 | $323 | 77% of | |||||||||||||||||||||
$985 | Total | |||||||||||||||||||||||
$3,553 | $3,408 | |||||||||||||||||||||||
$109 | ||||||||||||||||||||||||
$405 | ||||||||||||||||||||||||
69% of | $1,421 | 65% of | 64% of | $323 | ||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | Total | 96% of | ||||||||||||||||||||||
Total | ||||||||||||||||||||||||
$876 | $3,148 | $3,085 | ||||||||||||||||||||||
5 | ||||||||||||||||||||||||
FY21 | FY22 | FY23E | ||||||||||||||||||||||
Q2 FY22 | Q2 FY23 | |||||||||||||||||||||||
Recurrent Consumer Spending | Physical & Other | Digital | Recurrent Consumer Spending | Physical & Other | Digital | |||||||||||||||||||
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Take-Two Interactive Software Inc. published this content on 07 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2022 21:45:32 UTC.