Take-Two Interactive Software Inc
Q4 2023 Earnings
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 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.
- 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
“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.”
Take-Two Interactive CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2024 (ending March 31, 2024), Take-Two expects GAAP net revenue of $5.37–$5.47 billion, GAAP net loss of $518–$477 million ($3.05–$2.80 per share), Net Bookings of $5.45–$5.55 billion, EBITDA of $427–$479 million, net cash from operating activities of approximately $90 million, Adjusted Unrestricted Operating Cash Flow of approximately $100 million, and capital expenditures of approximately $180 million. For Q1 fiscal 2024 (ending June 30, 2023), the company expects GAAP net revenue of $1.21–$1.26 billion, GAAP net loss of $178–$161 million, and Net Bookings of $1.15–$1.2 billion. Looking further ahead, management expects fiscal 2025 to be a major inflection point, with plans to deliver over $8 billion in Net Bookings and over $1 billion in Adjusted Unrestricted Operating Cash Flow, driven by the launch of several groundbreaking titles.
TTWO YoY Financials
TTWO Revenue by Segment
TTWO Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.