19 slides from Take-two Interactive Software's earnings presentation, May 16, 2024
Slide 1: Fourth Quarter and Fiscal 2024 Results & Guidance Summary
TAKE-TWO INTERACTIVE SOFTWARE, INC. (NASDAQ: TTWO) FOURTH QUARTER AND FISCAL 2024 RESULTS & 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: Q4 FY2024 Results Summary: GAAP
Q4 FY2024 RESULTS SUMMARY: GAAP FINANCIAL SUMMARY ($ in millions, except EPS) Q4 ACTUAL GUIDANCE GAAP Net Revenue $1,399 $1,323 TO $1,373 Operating Expenses $3,182 $896 TO $906 GAAP Net Loss $(2,903) $(170) TO $(153) GAAP EPS $(17.02) $(1.00) TO $(0.90) Note: GAAP results were impacted by: 1) a good
Slide 4: Q4 FY2024 Results Summary: Select Management and Operating Results
Q4 FY2024 RESULTS SUMMARY: SELECT MANAGEMENT AND OPERATING RESULTS SELECT FINANCIAL DATA ($ in millions) • 4Q Net Bookings were above our revised guidance range due to better- than-expected results from NBA 2K24; Zynga’s in-app purchases, led by Toon Blast and Match Factory!; the Red Dead Redemption
Slide 5: FY2024 Results Summary: GAAP
FY2024 RESULTS SUMMARY: GAAP FINANCIAL SUMMARY ($ in millions, except EPS) FY2024 ACTUAL GUIDANCE GAAP Net Revenue $5,350 $5,270 TO $5,320 Operating Expenses $5,832 $3,545 TO $3,555 GAAP Net Loss $(3,744) $(1,013) TO $(995) GAAP EPS $(22.01) $(5.95) TO $(5.85) Note: GAAP results were impacted by: 1)
Slide 6: FY2024 Results Summary: Select Management and Operating Results
FY2024 RESULTS SUMMARY: SELECT MANAGEMENT AND OPERATING RESULTS SELECT FINANCIAL DATA ($ in millions) • Net Bookings were slightly above our guidance range • Recurrent consumer spending grew 2%, which exceeded our outlook. FY2024 Recurrent consumer spending for mobile increased high single-digits; N
Slide 7: Net Revenue and Net Bookings
NET REVENUE AND NET BOOKINGS GAAP Net Revenue $ in Millions $400 $5,570 - $5,670 $1,446 $1,399 $5,350 $5,350 $684 $54 $64 $264 $237 79% of 79% of 78% of 79% of Total Total Total Total $1,392 $5,086 $5,112 $1,335 Q4 FY23 Q4 FY24 FY23 FY24 FY25E Recurrent Consumer Spending Physical & Other Digital Rec
Slide 8: Cash Flow
CASH FLOW $ in Millions Net Cash From Operating Activities $204 $142 $140 $1 FY23 -$16 FY24 FY25E -$20 Net Cash From Operating Activities Capital Expenditures Adjusted Unrestricted Operating Cash Flow (Non-GAAP)(1) $ in Millions $204 $142 $140 $56 $42 FY23 FY24 FY25E -$200 Adjusted Unrestricted Oper
Slide 9: FY 2025 Guidance: GAAP
FY 2025 GUIDANCE: GAAP FISCAL YEAR 2025 GUIDANCE ($ in millions, except EPS) FY 2025 GUIDANCE GAAP Net Revenue $5,570 TO $5,670 Operating Expenses $3,559 TO $3,579 GAAP Net Loss $(674) TO $(606) GAAP EPS $(3.90) TO $(3.50) 9
Slide 10: FY 2025 Guidance: Select Financial Data
FY 2025 GUIDANCE: SELECT FINANCIAL DATA FISCAL YEAR 2025 GUIDANCE ($ in millions, except EPS) FY 2025 GUIDANCE ($ IN MILLIONS) Net Bookings $5,550 TO $5,650 Recurrent Consumer Spending Growth (RCS) +3% YOY Non-GAAP Adjusted Unrestricted Operating Cash APPROXIMATELY ($200) Flow • We project 5% Net Bo
Slide 11: Q1 FY2025 Guidance: GAAP
Q1 FY2025 GUIDANCE: GAAP Q1 FISCAL 2025 GUIDANCE ($ in millions, except EPS) Q1 FY25 GUIDANCE GAAP Net Revenue $1,300 TO $1,350 Operating Expenses $928 TO $938 GAAP Net Loss $(272) TO $(245) GAAP EPS $(1.58) TO $(1.43) 11
Slide 12: Q1 FY2025 Guidance: Select Financial Data
Q1 FY2025 GUIDANCE: SELECT FINANCIAL DATA Q1 FISCAL 2025 GUIDANCE ($ in millions, except EPS) Q1 FY2025 GUIDANCE ($ IN MILLIONS) Net Bookings $1,200 TO $1,250 Recurrent Consumer Spending Growth +1% YOY (RCS) • Our release slate for the quarter includes TopSpin 2K25, No Rest for the Wicked on Early A
Slide 13: Investing in the Strongest Development Pipeline in the Company's History
INVESTING IN THE STRONGEST DEVELOPMENT PIPELINE IN THE COMPANY’S HISTORY FY 2025 – TITLES OFFICALLY ANNOUNCED TO-DATE FY 2027* • Top Spin 2K25 (2K) – Launched April 26, 2024 • NBA 2K25 (2K) – Launching Fiscal 2025 • WWE 2K25 (2K) – Launching Fiscal 2025 Immersive Core 22 • Grand Theft Auto VI – Laun
Slide 14: Pipeline Definitions
PIPELINE DEFINITIONS IMMERSIVE CORE Titles that have the deepest gameplay and the most hours of content. Examples include our key sports franchises (like PGA 2K and NBA 2K) as well as Grand Theft Auto and Red Dead Redemption (to name a few). INDEPENDENT Externally developed Private Division releases
Slide 15: 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 acti
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 (in millions) 16
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 (in millions) 17
Slide 18: 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 (in millions) 18
Slide 19: Thank You
THANK YOU TAKE-TWO INTERACTIVE