Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Q2 2023 Earnings Conference Call November 7, 2022 4:30 PM ET Company Participants Nicole Shevins - SVP of IR & Corporate Communications Strauss Zelnick - Chairman & Chief Executive Officer Karl Slatoff - President Lainie Goldstein - Chief Financial Officer Conference Call Participants Eric Handler - MKM Partners Andrew Uerkwitz - Jefferies Eric Sheridan - Goldman Sachs Matthew Thornton - Truist Securities Matthew Cost - Morgan Stanley Drew Crum - Stifel Mari ...

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, 2022 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 ...

Financial Data and Key Metrics Changes - The company reported first quarter Net Bookings of $1 billion, with pre-combination Net Bookings of $731 million, reflecting a 3% year-over-year growth [7][40] - GAAP net revenue increased by 36% to $1.1 billion, while operating expenses rose by 125% to $704 million, primarily due to the addition of Zynga [42][43] - The GAAP net loss was $104 million, or $0.76 per share, significantly impacted by $117 million of amortization of acquired intangibles and $165 million of business acquisition costs [43][49] Business Line Data and Key Metrics Changes - Recurrent consumer spending rose by 48%, accounting for 73% of Net Bookings, significantly above prior guidance [20][41] - Digitally-delivered Net Bookings increased by 41%, representing 95% of total Net Bookings, with 77% of console game sales delivered digitally [42][46] - NBA 2K22 and WWE 2K22 were highlighted as strong performers, with NBA 2K22 selling over 12 million units and WWE 2K22 achieving over 330 million in-game matches played [13][14] Market Data and Key Metrics Changes - The company noted a strong performance in the mobile sector, with Zynga's contributions significantly enhancing results, despite some macroeconomic pressures affecting in-app purchases [20][21] - The latest generation console players of Grand Theft Auto Online grew over 40% this quarter, with monetization rates 36% higher than previous generation players [16] - The company expects recurrent consumer spending to grow by approximately 110% and digitally-delivered Net Bookings to increase by approximately 80% for the fiscal year [47][48] Company Strategy and Development Direction - The integration with Zynga is expected to yield $100 million in annual cost synergies within two years, with a focus on enhancing mobile offerings and leveraging Zynga's ad tech platform [10][39] - The company aims to introduce mobile games based on popular intellectual properties, targeting key mobile-first emerging markets [12][23] - The long-term vision includes expanding the mobile presence and enhancing margins through a diverse pipeline of games [22][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential of the mobile industry, despite current macroeconomic challenges [9][20] - The company acknowledged some softness in the mobile market but believes it is outperforming competitors and maintaining healthy market share [60][62] - The outlook for fiscal year 2023 includes Net Bookings guidance of $5.8 billion to $5.9 billion, incorporating Zynga's contributions [22][46] Other Important Information - The company ended the quarter with over $1.3 billion in cash and short-term investments and $3.3 billion in debt [45] - The integration of corporate functions and systems has been progressing well, with no disruptions reported [10][39] Q&A Session Summary Question: Changes in guidance regarding Marvel's Midnight Suns - Management indicated that shifts in the pipeline and foreign exchange movements were the most significant factors affecting guidance [56][58] Question: State of the mobile industry and integration of Zynga's portfolio - Management noted some softness in the mobile market but emphasized that Zynga's diverse portfolio is a meaningful offset [60][62] Question: RCS percentage of bookings for legacy Take-Two - Management did not break out RCS for the pre-combination business but noted outperformance in key titles [68][70] Question: Changes in Zynga's pipeline and macro factors - Management confirmed movements in Zynga's pipeline due to FX rates and overall ad market pressures [80] Question: Impact of Google advertising format changes - Management expressed no current concerns regarding potential impacts from changes in Google ad formats [84] Question: Business plan for Chartboost - Management indicated that Chartboost currently deals with third parties and sees potential for growth in that area [87] Question: Outlook for mobile game market and expense base - Management acknowledged an increase in operating expenses due to Zynga but maintained that mid- to long-term growth prospects remain strong [88][89] Question: Development resources for mobile versus PC and console - Management stated that while there are no immediate plans for significant headcount increases, growth is expected to lead to some increases in development resources [91][92] Question: Pipeline shifts and game readiness - Management clarified that game shifts are typically based on development readiness rather than macroeconomic factors [94][95] Question: Resilience of gaming spend in a recession - Management noted that while gaming is generally resilient, current economic conditions may impact consumer spending, particularly in free-to-play models [98][99]

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, 2022 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 ...

Financial Data and Key Metrics Changes - For Q4 2022, net bookings increased by 8% to $846 million, while GAAP net revenue grew by 11% to $930 million [52][55] - Total net bookings for fiscal 2022 were $3.41 billion, down from $3.55 billion in the prior year, with GAAP net income at $418 million, or $3.58 per share, compared to $589 million, or $5.09 per share in the previous year [56][59] - Digital net bookings accounted for 91% of total bookings, with a slight increase in digitally delivered console game sales to 75% [52][56] Business Line Data and Key Metrics Changes - WWE 2K22 and Tiny Tina's Wonderlands outperformed expectations, contributing significantly to net bookings [12][52] - Recurrent consumer spending declined by 6% year-over-year, accounting for 60% of total net bookings, with NBA 2K and Grand Theft Auto Online being the largest contributors [27][61] - The mobile title Top Eleven performed well, becoming the number one mobile title during the fourth quarter [28] Market Data and Key Metrics Changes - The geographic split of net bookings is expected to be approximately 60% from the United States and 40% from international markets [61] - The company anticipates a flat recurrent consumer spending for fiscal 2023, representing 58% of net bookings [62] Company Strategy and Development Direction - The company is focused on long-term growth through strategic acquisitions, including the pending combination with Zynga, which is expected to enhance its mobile offerings and overall market presence [12][29] - A diverse pipeline of approximately 69 titles is planned for release through fiscal 2025, with a strong emphasis on innovative gaming experiences [31][45] - The company aims to expand its margins and deliver long-term value for shareholders by leveraging its growing scale and capabilities [32][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a strong pipeline of releases and the potential synergies from the Zynga acquisition [29][67] - The company acknowledged the impact of the post-COVID environment on engagement trends but noted a stabilization in player behavior [88] - Concerns about a potential economic slowdown were addressed, with management indicating that the entertainment industry could be resistant to downturns [95][96] Other Important Information - The company reported a cash and short-term investments balance of approximately $2.6 billion at the end of fiscal 2022 [58] - The NBA 2K League has increased its overall prize pool to $2.5 million for the current season, reflecting growth in eSports engagement [47] Q&A Session Summary Question: On recurrent consumer spending guidance - Management indicated that the flat guidance for recurrent consumer spending is influenced by strong competition from full game releases and the impact of COVID comparisons [72][73] Question: Thoughts on M&A activity - Management remains optimistic about the company's fundamentals and does not see current market volatility as a significant concern [75][76] Question: Shift in gamer preferences - Management believes that story mode content remains attractive and has always been a significant part of the gaming experience [80] Question: Impact of Russia-Ukraine situation on guidance - Management noted that the Russia-Ukraine situation did not have a material impact on projections but acknowledged fluidity in the release schedule [86] Question: Normalization of player behavior post-COVID - Management characterized the current situation as normalized, with audiences remaining engaged and stabilizing after initial post-COVID fluctuations [88] Question: Interest in building a soccer franchise - Management expressed excitement about expanding their sports business but did not provide specific details [107] Question: Cross-play functionality impact - Management highlighted the positive impact of cross-play on engagement for Tiny Tina's Wonderlands, although specific data was not available [111]

Take-Two Interactive Software, Inc. (NASDAQ: TTWO) Fourth Quarter and Fiscal 2022 Results & Guidance Summary Cautionary Note: Forward Looking Statements • Content 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 ...

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, 2022 ☐ 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 (State or Other Jurisdiction of Incorporat ...

Take-Two Interactive Software, Inc. ( N A S D A Q : T T W O ) Q3 FY2022 Results Cautionary Note: Forward Looking Statements 2 • Content The 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, st ...

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Q3 2022 Earnings Conference Call February 7, 2022 4:30 PM ET Company Participants Nicole Shevins - Senior Vice President, Investor Relations and Corporate Communications Strauss Zelnick - Chairman and CEO Karl Slatoff - President Lainie Goldstein - Chief Financial Officer Conference Call Participants Mario Lu - Barclays Matthew Cost - Morgan Stanley Colin Sebastian - Baird Doug Creutz - Cowen & Co. Martin Yang - Oppenheimer Drew Crum - Stifel Matthew Thornto ...

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 December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Delaware 51-0350842 (State or Other Jurisdiction of Incorporation or Organization) 110 West 44th Street 10036 New York New York (Zip Code) (Add ...