Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2025

Take-Two Interactive Software, Inc., a leading developer, publisher, and marketer of interactive entertainment, has released its financial results for the first quarter of fiscal year 2025, which ended on June 30, 2024. The company reported solid performance metrics and provided updates on its future outlook.

Financial Highlights

For the first quarter of fiscal 2025, Take-Two Interactive reported:

• Total Net Bookings: $1.22 billion, a 1% increase from $1.20 billion in the same period last year.
• GAAP Net Revenue: $1.34 billion, up 4% from $1.28 billion in the previous fiscal year's first quarter.
• GAAP Net Loss: $262.0 million, or $1.52 per share, compared to a net loss of $206.0 million, or $1.22 per share, in the same period last year.

Business and Operational Highlights

Key contributors to the company's net bookings included popular titles such as NBA 2K24, Grand Theft Auto Online, Grand Theft Auto V, and Red Dead Redemption 2. Recurrent consumer spending, which includes virtual currency, add-on content, and in-game purchases, accounted for 83% of total net bookings.

GAAP net revenue saw a 4% increase, driven by recurrent consumer spending, which grew by 3% and accounted for 82% of total GAAP net revenue.

Strategic Initiatives and Corporate Developments

Take-Two Interactive has revised its outlook for the fiscal year ending March 31, 2025, and provided its initial outlook for the fiscal second quarter ending September 30, 2024. The company expects total net revenue for the fiscal year to be between $5.57 billion and $5.67 billion, with net bookings projected to be in the range of $5.55 billion to $5.65 billion.

Notable product releases since April 1, 2024, include "No Rest for the Wicked" (Private Division), "NFL 2K Playmakers" (2K), and "Star Wars: Hunters" (Zynga). Upcoming releases include "NBA 2K25" and "Grand Theft Auto VI."

Management's Perspective

Strauss Zelnick, Chairman and CEO of Take-Two Interactive, commented, "We achieved solid first quarter results by engaging our players with exciting new game releases and content updates, while also maintaining our focus on efficiency. Our management team remains confident in our path forward and we are reiterating our Net Bookings outlook for the year of $5.55 to $5.65 billion."

Zelnick also expressed optimism about the company's future, highlighting the vibrancy of core franchises, the ambitious development pipeline, and new growth opportunities that could enhance the business model and financial profile.

Future Outlook

For the fiscal year ending March 31, 2025, Take-Two Interactive expects:

• Total Net Revenue: $5.57 billion to $5.67 billion
• Net Bookings: $5.55 billion to $5.65 billion
• Net Loss: $757 million to $690 million
• Net Loss Per Share: $4.33 to $3.95

For the second quarter ending September 30, 2024, the company projects:

• Total Net Revenue: $1.29 billion to $1.34 billion
• Net Bookings: $1.42 billion to $1.47 billion
• Net Loss: $400 million to $373 million
• Net Loss Per Share: $2.30 to $2.15

SEC Filing: TAKE TWO INTERACTIVE SOFTWARE INC [ TTWO ] - 8-K - Aug. 08, 2024