Take-Two Interactive (TTWO) Q4 2023 Earnings
Did TTWO Beat Earnings? Q4 2023 Results
No. Take-Two Interactive reported Q4 2023 earnings of $-3.62 a share on May 17, 2023, missing the $0.67 consensus estimate by 640.3%. Revenue was $1.4B against a $1.3B estimate.
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
What Was Take-Two Interactive's Outlook in Q4 2023?
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
| Metric | Q4 2023 | Q4 2022 | Year over year |
|---|---|---|---|
| Revenue | $1.4B | $930.0M | +55.5% |
| Gross Profit | $223.2M | $531.4M | −58.0% |
TTWO Revenue by Segment
TTWO Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.