Take-Two Interactive

Take-Two Interactive (TTWO) Q4 2023 Earnings

Reported May 17, 2023 at 4:15 PM ET · SEC Source

Q4 23 EPS

$-3.62

MISS 640.30%

Est. $0.67

Q4 23 Revenue

$1.45B

BEAT +8.00%

Est. $1.34B

vs S&P Since Q4 23

-2.4%

TRAILING MARKET

TTWO +77.7% vs S&P +80.1%

Full Year 2023 Results

FY 23 EPS

$-7.03

FY 23 Revenue

$5.35B

Market Reaction

Did TTWO Beat Earnings? Q4 2023 Results

Take-Two Interactive delivered a deeply conflicted fourth fiscal quarter, posting a sharp earnings miss alongside a revenue beat that underscored the transformative but costly impact of its Zynga acquisition. The company reported a GAAP loss of $3.62… Read more Take-Two Interactive delivered a deeply conflicted fourth fiscal quarter, posting a sharp earnings miss alongside a revenue beat that underscored the transformative but costly impact of its Zynga acquisition. The company reported a GAAP loss of $3.62 per share, missing the $0.68 consensus estimate by 632.35%, as a $465.30 million impairment charge on acquisition-related intangible assets and a $54.20 million write-down on cancelled software titles weighed heavily on the bottom line. Revenue, however, climbed 55.5% year-over-year to $1.45 billion, topping the $1.34 billion consensus by 8.00%, with mobile now comprising half of total net revenue compared to just 11% a year earlier. Net Bookings grew 65% to $1.39 billion, exceeding management's own guidance range. Looking ahead, the company projected fiscal 2024 Net Bookings of $5.45 to $5.55 billion, while targeting a significant step-up to over $8.00 billion in fiscal 2025, a forecast that analysts widely view as tied to the anticipated launch of Grand Theft Auto VI.

Key Takeaways

  • Recurrent consumer spending grew 94% in Q4 and accounted for 79% of GAAP net revenue
  • Zynga combination significantly expanded mobile and advertising revenue streams
  • NBA 2K23, Grand Theft Auto Online, Grand Theft Auto V, and Zynga mobile portfolio were largest Q4 contributors
  • Digital delivery accounted for 96% of Q4 GAAP net revenue
  • Q4 Net Bookings of $1.39 billion exceeded the high end of guidance
24/7 Wall St

TTWO YoY Financials

Q4 2023 vs Q4 2022, source: SEC Filings

24/7 Wall St

TTWO Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 23 Q4 26
24/7 Wall St

TTWO Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 23 Q4 26

“We finished fiscal 2023 with momentum. Our fourth quarter Net Bookings were $1.4 billion, above the high end of our guidance range, driven by Grand Theft Auto V and Grand Theft Auto Online, Red Dead Redemption 2, and Zynga's mobile portfolio.”

— Strauss Zelnick, Q4 2023 Earnings Press Release