NASDAQ$TTWO

Take Two Interactive Software Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong results driven by new game launches and content updates, while updating the outlook for fiscal year 2023 to reflect shifts in pipeline, FX rates, and macroeconomic conditions.

Take-Two Interactive reported a 62% increase in GAAP net revenue to $1.4 billion and a 53% increase in Net Bookings to $1.5 billion for the second quarter of fiscal year 2023. The company updated its outlook for fiscal year 2023, projecting Net Bookings between $5.4 billion and $5.5 billion.

  • GAAP net revenue increased 62% to $1.4 billion.
  • Net Bookings grew 53% to $1.5 billion.
  • Company updated outlook for fiscal year 2023, including Net Bookings of $5.4 billion to $5.5 billion.
  • Recurrent consumer spending increased 95% and accounted for 79% of total GAAP net revenue.

Headline financials

Total Revenue

$1.39B

Previous: $858M+62.4%
EPS (adj)

$1.30

Previous: $1.63-20.2%
Net Bookings

$1.5B

Previous: $985M+52.3%
Capital Expenditures

-$99.4M

Previous: -$111M+10.6%
Free Cash Flow

-$356M

Previous: -$101M-253.2%
Net Income

-$257M

Previous: $10.3M-2595.9%
Operating Income

-$253M

Previous: $20.2M-1353.0%
Gross Profit

$680M

Previous: $402M+69.3%
Cash & Equivalents

$956M

Previous: $857M+11.6%
Total Assets

$17.5B

Previous: $6.62B+164.3%
Stock-Based Comp

$108M

Previous: $47.1M+129.1%

Revenue & EPS history

Take-Two · Revenue · Quarterly

$1.39B

Q2 2023+62.4%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Take-Two · $1.28B total across 2 segments · Q2 2023

  • Mobile
    $730M+534.2%
  • Console
    $552M-7.4%

Forward guidance

Take-Two is revising its outlook for the fiscal year ending March 31, 2023, and is providing its initial outlook for its fiscal third quarter ending December 31, 2022.

Tailwinds

  • GAAP net revenue is expected to range from $5.41 to $5.51 billion
  • Net cash provided by operating activities is expected to be over $630 million
  • Adjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over $650 million
  • Net Bookings (operational metric) are expected to range from $5.4 to $5.5 billion
  • EBITDA (Non-GAAP) is expected to range from $465 to $514 million

Headwinds

  • GAAP net loss is expected to range from $674 to $631 million
  • GAAP net loss per share is expected to range from $4.22 to $3.95
  • GAAP net revenue is expected to range from $1.43 to $1.48 billion
  • GAAP net loss is expected to range from $160 to $142 million
  • GAAP net loss per share is expected to range from $0.95 to $0.85

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+2.0%

Avg return

30 days after

60%

40 / 67 earnings

Positive

+15.9%

Q4 2015

Best reaction

-13.8%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+0.8%-13.4%-5.4%
Q3 2026-5.4%-3.4%-0.3%
Q2 2026-0.9%-4.8%-1.8%
Q1 2026-7.0%+4.3%+5.8%
Q4 2025-2.4%-2.4%-0.9%
Q3 2025+14.0%+14.3%+11.6%
Q2 2025+9.2%+9.4%+15.7%
Q1 2025+6.7%+6.8%+15.4%
Q4 2024-0.2%+2.3%+7.3%
Q3 2024-8.6%-9.5%-15.2%
Q2 2024+7.3%+10.1%+13.9%
Q1 2024-1.3%-0.7%+0.7%
Q4 2023+12.6%+10.6%+11.8%
Q3 2023+4.2%+1.7%+6.4%
Q2 2023-13.8%-5.8%-8.3%
Q1 2023-5.0%-3.2%-5.2%
Q4 2022+12.0%+5.6%+14.8%
Q3 2022-1.6%-2.0%-9.5%
Q2 2022+4.9%+0.7%-9.9%
Q1 2022-7.8%-8.7%-6.6%
Q4 2021+6.6%+9.6%+1.4%
Q3 2021-3.5%-3.7%-20.6%
Q2 2021+7.0%-5.4%+10.4%
Q1 2021+8.2%+6.7%+5.4%
Q4 2020-2.8%-1.2%+0.3%
Q3 2020-6.8%-6.9%-2.5%
Q2 2020+0.2%+2.0%+6.0%
Q1 2020+2.4%+5.9%+9.1%
Q4 2019+0.2%+3.2%+5.2%
Q3 2019-10.2%-12.9%-18.9%
Q2 2019-3.7%-11.8%-17.0%
Q4 2018+0.4%+2.2%+7.1%
Q3 2018-12.5%-7.1%-1.4%
Q2 2018+10.0%+8.1%-0.4%
Q1 2018+11.5%+13.2%+20.0%
Q4 2017+12.6%+11.6%+5.8%
Q3 2017-0.9%+6.8%+9.2%
Q2 2017+9.9%+12.8%+8.0%
Q1 2017+1.4%+1.5%+9.6%
Q4 2016+3.6%
Q3 2016+4.9%
Q2 2016+0.5%
Q1 2016-2.8%
Q4 2015+15.9%
Q3 2015-3.4%
Q2 2015+9.3%
Q1 2015-7.9%
Q4 2014-8.1%
Q3 2014-11.1%
Q2 2014-3.1%
Q1 2014+3.4%
Q4 2013+0.6%
Q3 2013+15.4%
Q2 2013+4.7%
Q1 2013-13.8%
Q4 2012+4.5%
Q3 2012+2.8%
Q2 2012-0.8%
Q1 2012-4.4%
Q4 2008+4.1%
Q4 2010+6.1%
Q3 2011+6.1%
Q3 2010+6.1%
Q2 2011+1.8%
Q1 2011+5.8%
Q3 2009+5.8%
Q4 2009+5.8%

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