18 slides from Take-two Interactive Software's earnings presentation, Aug 9, 2022
Slide 1: Take-Two Interactive First Quarter Fiscal 2023 Results & Guidance Summary
TAKE-TWO INTERACTIVE SOFTWARE, INC. (NASDAQ: TTWO) / FIRST QUARTER FISCAL 2023 RESULTS TAKE-TWO INTERACTIVE & GUIDANCE SUMMARY
Slide 2: Cautionary Note: Forward Looking Statements
CAUTIONARY NOTE: FORWARD LOOKING STATEMENTS Statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," “estimates,” "expects," "intends," “plans,” "potential," "p
Slide 3: Notes to Our Financial Results & Outlook
NOTES TO OUR FINANCIAL RESULTS & OUTLOOK * Our first quarter results include Zynga’s financial performance for 39 days of the quarter, which impacts the comparability of our results relative to last year, as well as to our guidance, which did not include the contribution from Zynga * Our prior FY23
Slide 4: Q1 FY2023 Results Summary: GAAP
Q1 FY2023 Results Summary: GAAP FINANCIAL SUMMARY (¢$ in millions, except EPS) Ql ACTUAL GUIDANCE (INCL ZYNGA) (EX ZYNGA) GAAP Net Revenue $1,102 $810 TO $860 Operating Expenses $704 $387 TO $397 GAAP Net Income $104) $94 TO $105 GAAP EPS $(0.76) $0.80 TO $0.90 Note: GAAP results were impacted by am
Slide 5: Q1 FY2023 Results Summary: Select Management Results
Q1 FY2023 RESULTS SUMMARY: SELECT MANAGEMENT RESULTS SELECT FINANC DATA ($ in milli fe} | * Pre-combination Net Bookings were $731 million, which grew 3% and were within our prior guidance range ACTUAL GUIDANCE + Movement in foreign currency exchange rates negatively (INCL ZYNGA) (EX ZYNGA) impacted
Slide 6: Net Revenue & Net Bookings
NET REVENUE & NET BOOKINGS GAAP Net Revenue $ in Millions $5,730 - S550 64% of 65% of Total $3,373 Total _ $3,505 Qi FY22 @1FY23 FY21 FY22 FY23E m™ Recurrent Consumer Spending Physical & Other ™ Digital ™ Recurrent Consumer Spending ™ Physical & Other —_m Digital Net Booki $ in Millions T2 Q1FY22 Ql
Slide 7: Cash Flow
CASH FLOW Net Cash From Operating Activities $ in Millions $912 $710 $258 $148 $101 $159 $135 Bios a a FY22 3 Months FY22 3 Months FY23 FY21 FY23E ™ Net Cash From Operating Activities = Capital Expenditures ™ Net Cash From Operating Activities ® Capital Expenditures Adjusted Unrestricted Operating C
Slide 8: FY 2023 Guidance: GAAP
FY 2023 GUIDANCE: GAAP FISCAL YEAR 2023 GUIDANCE (¢$ in milli except EPS) FY 2023 REVISED CHANGE FROM PRIOR GUIDANCE GUIDANCE (EX ZYNGA) (INCL ZYNGA) GAAP Net Revenue $5,730 TO $5,830 PREVIOUSLY: $3,670 TO $3,770 Operating Expenses $3,367 TO $3,377 PREVIOUSLY: $1,735 TO $1,755 GAAP Net (Loss) income
Slide 9: FY 2023 Guidance: Select Financial Data
FY 2023 GUIDANCE: SELECT FINANCIAL DATA Net Bookings Recurrent Consumer Spending Growth Digitally-Delivered Net Bookings Growth Non-GAAP Adjusted Unrestricted Operating Cash Flow KEY MODEL INPUTS FISCAL YEAR 2023 G' FY 2023 REVISED GUIDANCE (INCL ZYNGA) ($ IN MILLIONS) $5,800 TO $5,900 +110% YOY +80
Slide 10: Q2 FY2023 Guidance: GAAP
Q2 FY2023 GUIDANCE: GAAP @Q2 FISCAL 2023 GUIDANCE ($ in millions, except EPS) Q2 FY23 GUIDANCE GAAP Net Revenue $1,370 TO $1,420 Operating Expenses $849 TO $859 GAAP Net Loss $160) TO $(144) GAAP EPS $(0.96) TO $(0.86) Note: GAAP results are expected to be impacted by amortization of acquired intang
Slide 11: Q2 FY2023 Guidance: Select Financial Data
Q2 FY2023 GUIDANCE: SELECT FINANCIAL DATA Q2 FISCAL 2023 G' @Q2 FY2023 GUIDANCE ($ IN MILLIONS) Net Bookings $1,500 TO $1,550 Recurrent Consumer Spending +85% YOY Growth Digitally-Delivered Net +70% YOY Bookings Growth KEY MODEL INPUTS * Net interest expense: $26 million * Management tax rate: 18% *
Slide 12: FY23-FY25 Pipeline Details
FY23-FY25 PIPELINE DETAILS Immersive Core Independent Mobile** Titles in development & soft launch) Mid-Core New Iterations of Previously Released Titles Mobile count exclu through completion, FY 2023 - FY 2025* 24 10 38 estimates provided as of May 16, 2022; wever, mobile titles have been updated o
Slide 13: Pipeline Definitions
PIPELINE DEFINITIONS IMMERSIVE CORE Titles that have the deepest gameplay and the most hours of content. Examples include our key sports franchises (e.g. PGA TOUR2K and NBA 2k) as well as Grand Theft Auto and Red Dead Redemption (to name a few). INDEPENDENT Externally-developed Private Division rele
Slide 14: Non-GAAP Financial Measure
NON-GAAP FINANCIAL MEASURE In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses Non-GAAP. measures of financial performance: Adjusted Unrestricted Operating Cash Flow, which is defined as GAAP net cash from operating act
Slide 15: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE TAKE-TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURE Cin millions) Three Months Ended June 30, 2022 2021 Net cash from operating activities $ 100.8 $ 148.2 Net change in Restricted cash (115.2) (119.1) Adjusted Unr
Slide 16: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE TAKE-TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURE Cin millions) Three Months Ended June 30, 2022 2021 Net (loss) income $ (104.0) $ 152.3 (Benefit from) provision for income taxes (2.3) $ 19.2 Interest expense (
Slide 17: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE TAKE-TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURE Outlook Net loss Benefit from income taxes Interest expense Depreciation and amortization Amortization of acquired intangibles EBITDA Outlook Net loss Benefit fr
Slide 18: Thank You
THANK YOU TAKE-TWO INTERACTIVE