TakeTwo Interactive Software Reports First Quarter Fiscal 2025 Results
Intellectia.AI Updated: 1970-01-01
Take-Two Interactive Software Reports First Quarter Fiscal 2025 Results
Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced its financial results for the first quarter of its fiscal year 2025, which ended on June 30, 2024. Below is a summary of the company’s earnings and key metrics.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | Consensus Estimates | Beat/Miss |
|---|---|---|---|---|---|
| Total Revenue | $1.34B | $1.28B | +4% | $1.25B | Beat by $0.09B |
| Earnings Per Share (EPS) | -$1.52 | -$1.22 | N/A | -$0.02 | Miss by $1.50 |
| Net Bookings | $1.22B | $1.20B | +1% | N/A | In line |
Interpretation: Despite a net loss of $1.52 per share, Take-Two Interactive's GAAP net revenue of $1.34 billion exceeded consensus estimates by $0.09 billion, indicating a robust topline performance. The company reported net bookings of $1.22 billion, showing consistent growth and meeting guidance expectations.
Revenue Performance by Segment
| Segment | Q1 FY2025 | Q1 FY2024 | YoY Change |
|---|---|---|---|
| Recurrent Consumer Spending | 82% of revenue | 79% of revenue | +3% |
| Major Contributors | NBA 2K24, GTA Online & V, Toon Blast, Empires & Puzzles, Hyper-casual portfolio, Red Dead Redemption 2, Words With Friends, Merge Dragons! | Same contributors last year | N/A |
Interpretation: The recurrent consumer spending increased by 3%, now accounting for 82% of the GAAP net revenue. Major franchises like NBA 2K24 and Grand Theft Auto continue to be key revenue drivers, maintaining consistent engagement and sales performance.
Key Comments from Management
Strauss Zelnick, Chairman, and CEO, emphasized that Take-Two Interactive achieved solid results by keeping players engaged with new game releases and content updates while focusing on operational efficiency. He reiterated their net bookings outlook for the fiscal year 2025, projecting between $5.55 to $5.65 billion. Zelnick also highlighted the company's highly ambitious development pipeline and optimism for sequential increases in net bookings in the fiscal years 2026 and 2027.
Forward Guidance
Take-Two Interactive reiterated its net bookings outlook for the fiscal year ending March 31, 2025, to be between $5.55 to $5.65 billion. The company provided its initial outlook for the second quarter ending September 30, 2024, including assumptions about tax rates and share counts.
Stock Price Movement
Following the earnings release, Take-Two Interactive experienced a post-event stock price increase of approximately 2.29%.
Conclusion: Take-Two Interactive presented a strong financial performance for the first quarter of fiscal 2025, surpassing revenue expectations but falling short on EPS. Positive momentum in its core gaming franchises and a robust forward outlook contribute to a favorable market reaction.
