Financial Data and Key Metrics Changes - GAAP net revenue decreased by 7% to $1.3 billion, while cost of revenue increased by 24% to $884 million, driven by an impairment charge of $220 million and $190 million amortization of acquired intangibles [31] - Operating expenses increased by 3% to $959 million, including $165 million of loan impairment, but were flat year-over-year on a management basis due to lower marketing expenditures [31][34] - Net bookings for the quarter were $1.44 billion, at the high end of guidance, with recurrent consumer spending accounting for 78% of net bookings [38][58] Business Line Data and Key Metrics Changes - Grand Theft Auto V and Grand Theft Auto Online continued to perform exceptionally well, with Grand Theft Auto V sold in approximately 190 million units and Red Dead Redemption 2 surpassing 57 million units sold [40][43] - NBA 2K24 launched successfully, with engagement and virtual currency bookings exceeding expectations, driving double growth in ARPU compared to NBA 2K23 [45] - The mobile business saw strong performance with new titles like PowerSlap and Top Troops, contributing positively to KPIs and engagement metrics [47][53] Market Data and Key Metrics Changes - The geographic net booking split is projected to be about 65% United States and 35% international, with a forecasted current consumer spending growth of 4% compared to fiscal 2023 [59] - The breakdown of net bookings from labels is expected to be roughly 49% Zynga, 31% 2K, 18% Rockstar Games, and 2% other [59] Company Strategy and Development Direction - The company is focused on being the most creative, innovative, and efficient entertainment company, with a robust and diverse development pipeline [12][13][39] - The strategy includes optimizing cost structures while investing for growth, with a commitment to enhancing profitability and performance across various business segments [33][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the holiday season, citing the strength of the product catalog and anticipated strong hardware sales [12][115] - The company reiterated its fiscal 2024 net bookings guidance of $5.45 billion to $5.55 billion, indicating confidence in upcoming releases and overall market conditions [12][85] Other Important Information - The company recorded an impairment charge of $220 million related to intangible assets and $165 million of goodwill, reflecting updated long-term projections for one of its reporting units [72] - The anticipated trailer for the next Grand Theft Auto is expected to be revealed in December, generating excitement and potential positive impact on catalog revenue [16][121] Q&A Session Summary Question: Thoughts on fiscal '25 and '26 guidance - Management expects net bookings to be below $8 billion due to shifts in the pipeline but not materially so [64][120] Question: Acquisition of FiveM and its implications - The acquisition is seen as a way to learn about user-generated content and monetize it, with a focus on protecting intellectual property [65] Question: Engagement with GTA+ subscribers - No materially different behavior was observed between subscribers and non-subscribers, indicating positive engagement [68] Question: Clarification on advertising revenue - There is a difference between GAAP revenue for advertising and advertising bookings due to deferrals [69] Question: Details on the write-down taken in the quarter - The write-down was related to intangible assets and goodwill, reflecting updated long-term projections [71] Question: Impact of potential strike on production - Management is optimistic about labor negotiations and believes they are well-protected in case of a strike [121] Question: Updated thoughts on AI - AI is expected to enhance efficiency and creativity, but it is not anticipated to create hit games on its own [124]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-34003 TAKE-TWO INTERACTIVE SOFTWARE, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Ju ...

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," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company's future business and financial performance. Such forward-looking statements are based on the ...

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Q1 2024 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Nicole Shevins - SVP, IR & Corporate Communications Strauss Zelnick - Chairman & CEO Karl Slatoff - President Lainie Goldstein - CFO Conference Call Participants Andrew Uerkwitz - Jefferies Eric Handler - ROTH MKM Matthew Thornton - Truist Securities Matthew Cost - Morgan Stanley Douglas Creutz - TD Cowen Eric Sheridan - Goldman Sachs Mario Lu - Barclays David Karnovsky - JPMorga ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-34003 TAKE-TWO INTERACTIVE SOFTWARE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 51-0350842 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended March 31, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file number 001-34003 TAKE-TWO INTERACTIVE SOFTWARE, INC. (Exact name of registrant as specified in its charter) Delaware 51-0350842 (State or Other Jurisdiction ...

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Q4 2023 Earnings Conference Call May 17, 2023 4:30 PM ET Corporate Participants Nicole Shevins - SVP, IR & Corporate Communications Strauss Zelnick - Chairman & Chief Executive Officer Karl Slatoff - President Lainie Goldstein - Chief Financial Officer Conference Call Participants Andrew Uerkwitz - Jefferies Matthew Thornton - Truist Securities Matthew Cost - Morgan Stanley Colin Sebastian - Baird Doug Creutz - TD Cowen Clay Griffin - MoffettNathanson Omar D ...

Financial Data and Key Metrics Changes - The company reported net bookings of $1.38 billion, slightly below prior guidance, attributed to cautious consumer spending during the holiday season [19][33] - GAAP net revenue increased 56% to $1.41 billion, while cost of revenue rose 97% to $692 million [48] - Operating expenses increased by 123% to $889 million, primarily due to the addition of Zynga and higher marketing and stock-based compensation expenses [48] - The GAAP net loss was $153 million, or $0.91 per share, impacted by $302 million of amortization of acquired intangibles and $24 million of business acquisition costs [48] Business Line Data and Key Metrics Changes - Recurrent consumer spending rose 117% and accounted for 78% of net bookings [46] - Digitally delivered net bookings increased 72% and represented 95% of the total [2] - The largest contributors to net bookings are expected to be NBA 2K, Grand Theft Auto Online, and Grand Theft Auto V [5] Market Data and Key Metrics Changes - The geographic net bookings split is projected to be about 65% from the United States and 35% from international markets [5] - The company expects recurrent consumer spending to grow by approximately 85% and digitally delivered net bookings to increase by approximately 60% [6] Company Strategy and Development Direction - The company is focused on enhancing profitability for its hyper-casual business and evaluating cost savings opportunities to structurally enhance margins [9][4] - The strategy includes delivering captivating entertainment experiences across all platforms and geographies, with a commitment to long-term growth [26] - The company aims to achieve over $50 million in annual savings through a cost reduction program, in addition to over $100 million in annual cost synergies from the Zynga acquisition [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more challenging operating environment than anticipated, leading to a lowered fiscal 2023 net bookings guidance to $5.2 billion to $5.25 billion [47] - Despite the current challenges, management expressed confidence in long-term growth potential and the ability to deliver sequential growth and record performance over the next several years [22][56] Other Important Information - The company plans to release several new titles, including Kerbal Space Program 2 and WWE 2K23, with ongoing support for existing franchises [11][14] - The combination with Zynga is seen as highly accretive, with strong engagement among active players and a commitment to delivering planned synergies [46][45] Q&A Session Summary Question: Can you discuss mobile advertising integration in Zynga games? - Management confirmed that advertising has been integrated into Zynga titles that previously did not include it, and they are seeing early signs of success with direct-to-consumer platforms [51][58] Question: How is the company addressing the mobile market post-IDFA? - Management indicated that they are realigning their marketing strategy in mobile to address the post-IDFA landscape and are optimistic about future growth [94][96] Question: What are the expectations for fiscal 2024? - Management expects sequential growth and record results over the next couple of years, with specific guidance to be provided in the coming months [104] Question: How does the company view the impact of macroeconomic conditions on new releases? - Management believes that macroeconomic conditions have influenced consumer behavior, leading to a preference for established franchises and promotional titles [126][128] Question: What is the outlook for mobile game development? - Management acknowledged the challenges in developing new hits in mobile but remains optimistic about the potential for success with new titles [136][137]

TAKE-TWO INTERACTIVE SOFTWARE, INC. (NASDAQ: TTWO) THIRD QUARTER FISCAL 2023 RESULTS & GUIDANCE SUMMARY 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," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limite ...

Acquisition and Financing - The acquisition of Zynga was completed on May 23, 2022, for a total consideration of $9,521.8 million, including $3,992.4 million in cash and $5,377.7 million in common stock[171]. - The company issued $2,700.0 million in senior notes to finance part of the Zynga acquisition, with interest rates ranging from 3.300% to 4.000%[173][174]. - The company completed the offering of $2,700.0 million in senior notes on April 14, 2022, to finance part of the Zynga acquisition[259]. - The 2022 Credit Agreement provides a $500.0 million unsecured revolving credit facility, with additional capacity based on 35.0% of the company's Consolidated Adjusted EBITDA[175]. - The 2022 Credit Agreement provides for a $500.0 million unsecured revolving credit facility, with no borrowings as of December 31, 2022, leaving approximately $499.5 million available[263]. - The company incurred $321.6 million for the tendered or converted 2024 Convertible Notes and $845.1 million for the 2026 Convertible Notes[178]. Revenue and Financial Performance - Net revenue for the three months ended December 31, 2022, was $1,407.8 million, a 55.9% increase from $903.3 million in the prior year period[207]. - Total net revenue for the nine months ended December 31, 2022, was $3,903.7 million, a 51.6% increase from $2,574.8 million in the prior year[232]. - Net revenue from digital online channels comprised 94.6% of total net revenue for the nine months ended December 31, 2022, highlighting the shift towards digital distribution[196]. - Net revenue from mobile games increased by $1,519.7 million, accounting for 46.6% of total net revenue for the nine months ended December 31, 2022, compared to 11.7% in the prior year[233]. - Net revenue from recurrent consumer spending rose by $567.6 million, representing 79.2% of total net revenue, up from 60.6% in the prior year[210]. - The acquisition of Zynga contributed $631.2 million to net revenue, with top contributors including Empires & Puzzles and Toon Blast[207]. - Sales of Grand Theft Auto products accounted for 15% of net revenue for the nine months ended December 31, 2022[191]. - Net revenue from the United States was $886.8 million, representing 63.0% of total net revenue, compared to 59.2% in the prior year[212]. - Net revenue earned outside of the United States increased by $459.3 million, accounting for 38.2% of total net revenue for the nine months ended December 31, 2022[237]. Expenses and Losses - The company experienced a net loss of $153.4 million for the three months ended December 31, 2022, compared to a net income of $144.6 million in the prior year[206]. - The net loss for the nine months ended December 31, 2022, was $514.4 million, compared to a net income of $307.1 million in the prior year, with diluted loss per share at $3.27[256]. - Total operating expenses for the three months ended December 31, 2022, were $888.8 million, a 122.9% increase from $398.8 million in the prior year[213]. - Total operating expenses for the nine months ended December 31, 2022, were $2,524.9 million, representing 64.7% of net revenue, a 130.9% increase from $1,093.3 million (42.5% of net revenue) in the prior year[238]. - Selling and marketing expenses increased by $311.4 million for the three months ended December 31, 2022, primarily due to marketing expenses from the Zynga acquisition and higher personnel costs[214]. - Selling and marketing expenses increased by $787.9 million (210.0%) to $1,163.1 million, primarily due to marketing expenses from the Zynga acquisition and higher personnel costs[239]. - Research and development expenses rose by $121.5 million for the three months ended December 31, 2022, mainly due to increased personnel expenses and production costs related to Zynga[215]. - Research and development expenses rose by $344.7 million (111.0%) to $655.2 million, driven by increased personnel expenses and production costs related to Zynga[240]. - General and administrative expenses increased by $38.1 million for the three months ended December 31, 2022, driven by higher personnel expenses, rent, and professional fees associated with the Zynga acquisition[216]. - General and administrative expenses increased by $257.6 million (71.0%) to $620.6 million, mainly due to professional fees and additional headcount related to the Zynga acquisition[241]. - Interest and other net expenses rose to $28.3 million for the three months ended December 31, 2022, compared to $5.6 million in the prior year, primarily due to interest expenses related to the Zynga acquisition[219]. - Interest and other net expenses were $108.1 million for the nine months ended December 31, 2022, compared to $7.2 million in the prior year, largely due to interest expenses from various debt instruments related to the Zynga acquisition[244]. Market and Strategic Initiatives - Zynga's game franchises have been downloaded over 6 billion times, including popular titles like FarmVille and Words With Friends[187]. - The company expects to continue developing successful franchises under its 2K label, including the NBA 2K series, which remains the top-ranked NBA basketball video game[185]. - The company aims to capitalize on the popularity of video games by creating high-quality interactive entertainment franchises across various platforms[181]. - The company continues to expand its distribution strategy in Asia, particularly in China and South Korea, with NBA 2K Online having over 55 million registered users[189]. - The company is expanding its mobile gaming efforts, with a focus on increasing profitability through direct-to-consumer strategies[197]. - The company plans to enhance its cybersecurity measures following a network intrusion incident in September 2022[179]. Economic and Operational Risks - The economic environment, including the impact of COVID-19, continues to pose risks to the company's operations and customer base[192]. - The company monitors player acquisition costs closely, which may impact operating results if they become less effective or more expensive over time[198]. - The company's five largest customers represented 79.7% of net revenue during the nine months ended December 31, 2022, indicating a high customer concentration risk[194]. - Net revenue earned outside the United States was 37.0% for the three months ended December 31, 2022, down from 40.8% in the same period of 2021[276].