Take-Two Interactive Software(TTWO)

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Stock Of The Day: Is The Take-Two Rally Almost Over?
Benzinga· 2025-02-07 18:43
Group 1 - Take-Two Interactive Software, Inc. shares have surged following positive earnings reports, but this upward movement may be temporary [1] - The stock is approaching a previous peak of around $215.00 from February 2021, which may create resistance due to historical investment psychology [2][5] - Investors who bought at the previous peak may place sell orders to break even, potentially leading to a concentration of sell orders at this price level [3][4] Group 2 - The concept of "the market has a memory" suggests that significant price levels retain their importance over time, even years later [4][5] - Take-Two has filed a Shelf Registration, indicating management's belief that current stock levels may be optimal for issuing and selling more shares, which could signal a lack of confidence in further price increases [5]
Is Take-Two stock a buy before GTA 6 drops?
Finbold· 2025-02-07 15:56
Core Insights - The anticipation surrounding Grand Theft Auto VI (GTA VI) has significantly influenced the stock performance of Take-Two Interactive Software (TTWO), with recent confirmations about the game's release schedule leading to a notable stock rally [1][4]. Stock Performance - As of the latest update, TTWO stock has increased by 11.94% year-to-date (YTD), with the majority of this rally occurring in the extended trading session and the initial minutes of Friday's trading [2]. - Despite a quarterly revenue miss, where TTWO reported $1.37 billion against a forecast of $1.39 billion, the stock still rallied, indicating strong market sentiment driven by GTA VI hype [3]. Earnings Report - The earnings per share (EPS) for TTWO came in at $0.73, which was 29.71% higher than the predicted $0.56, contributing positively to investor sentiment [3]. Analyst Ratings - Recent price target increases from UBS (from $175 to $230) and Morgan Stanley (from $200 to $215) suggest that analysts view TTWO shares as a promising investment ahead of the GTA VI release [4]. Historical Context - Historical performance of the GTA series, particularly GTA V which shipped 210 million copies, supports the expectation that TTWO stock will continue to attract long positions as the release date approaches [4]. Investment Strategy - The current market environment may present a "buy the news, sell the game" scenario, where investing in anticipation of the game's release could be more beneficial than holding through the actual launch [8]. - Historical data indicates that investing in TTWO months before a game release has been lucrative, with a $1,000 investment made in 2013 growing significantly by the time of GTA V's release [8][9].
Take-Two Interactive Software(TTWO) - 2025 Q3 - Earnings Call Presentation
2025-02-07 03:11
TAKE-TWO INTERACTIVE TAKE-TWO INTERACTIVE SOFTWARE, INC. (NASDAQ: TTWO) THIRD QUARTER FISCAL 2025 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 mav be identified by words such as "anticipates," "believes," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are no ...
Take-Two Interactive Software(TTWO) - 2025 Q3 - Earnings Call Transcript
2025-02-07 02:22
Financial Data and Key Metrics Changes - The company reported third-quarter net bookings of $1.37 billion, which was within the guidance range of $1.35 billion to $1.4 billion, driven by strong performance in NBA 2K [9][32] - GAAP net revenue was $1.36 billion, flat compared to the previous year, while the cost of revenue declined by 13% to $600 million [34] - Operating expenses increased by 10% to $892 million, with a management basis increase of 8% year-over-year [35][40] Business Line Data and Key Metrics Changes - NBA 2K saw over 30% growth, significantly surpassing forecasts, with recurrent consumer spending up over 30% and daily active users up nearly 20% [12][33] - Mobile segment recurrent consumer spending grew mid-single digits, below expectations, primarily due to underperformance in hyper-casual titles and Empires and Puzzles [16][33] - The Grand Theft Auto series continues to perform well, with GTA V selling over 210 million units worldwide and GTA Online showing strong engagement [14][15] Market Data and Key Metrics Changes - The company expects net bookings for fiscal year 2025 to be between $5.55 billion and $5.65 billion, representing a 5% growth over fiscal 2024 [10][36] - The geographic split of net bookings is projected to be approximately 60% from the United States and 40% from international markets [38] Company Strategy and Development Direction - The company is optimistic about the upcoming releases, including Sid Meier's Civilization VII, Mafia: The Old Country, Grand Theft Auto VI, and Borderlands 4, which are expected to drive significant growth [11][28] - The focus remains on creating innovative and engaging entertainment experiences, with expectations for record levels of net bookings in fiscal 2026 and 2027 [12][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial potential of upcoming titles and the transformative effect they will have on the business and industry [11][22] - The company acknowledged challenges in the mobile segment but remains optimistic about Zynga's ability to create new franchises and maintain momentum [17][21] Other Important Information - The company is maintaining its guidance for the fourth quarter, projecting net bookings between $1.48 billion and $1.58 billion, with significant contributions expected from NBA 2K and new releases [42][43] - Non-GAAP adjusted unrestricted operating cash flow is expected to be an outflow of $150 million, unchanged from prior forecasts [39] Q&A Session Summary Question: Potential revenue synergies from Zynga acquisition - Management noted that while bringing legacy IP to mobile is an opportunity, the biggest hits in mobile are often native to mobile, and they are working on interesting projects that have not yet been announced [50][52] Question: Profitability of Match Factory - Management confirmed that Match Factory is expected to turn profitable towards the end of fiscal 2025, with continued strong performance [56][57] Question: Market bifurcation in mobile gaming - Management disagreed with the notion of a bifurcated market, emphasizing that Zynga's mobile business has a broad range of owned and licensed IP, which offers opportunities for growth [58][59] Question: Performance of NBA 2K - Management attributed the success of NBA 2K to both the transition to next-gen consoles and ongoing innovations in gameplay, which have resonated well with players [67][70] Question: Marketing strategies for new titles - Marketing efforts are typically ramped up around the launch of titles, with a focus on digital marketing and consumer engagement [85][87] Question: Evaluation of Netflix partnership for WWE - Management expressed a positive relationship with Netflix and emphasized the importance of evaluating opportunities based on consumer benefits [90][92] Question: Capitalized software on the balance sheet - Management clarified that the capitalized software reflects the technological feasibility of titles and will be amortized as those titles release [113][115] Question: Reactivation of GTA fans with GTA VI launch - Management highlighted the importance of delivering quality content to engage both current and lapsed players, without predicting specific reactivation rates [120][124] Question: Roblox platform as a potential destination - Management views Roblox as a competitive situation and does not currently see it as a viable destination for Take-Two's content, but remains open to opportunities [130][132]
Take-Two (TTWO) Reports Q3 Earnings: What Key Metrics Have to Say
ZACKS· 2025-02-07 00:01
Take-Two Interactive (TTWO) reported $1.37 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 2.7%. EPS of $0.72 for the same period compares to $0.71 a year ago.The reported revenue represents a surprise of -0.69% over the Zacks Consensus Estimate of $1.38 billion. With the consensus EPS estimate being $0.57, the EPS surprise was +26.32%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...
Take-Two Interactive (TTWO) Q3 Earnings Surpass Estimates
ZACKS· 2025-02-06 23:41
Take-Two Interactive (TTWO) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 26.32%. A quarter ago, it was expected that this publisher of "Grand Theft Auto" and other video games would post earnings of $0.42 per share when it actually produced earnings of $0.66, delivering a surprise ...
Take-Two Interactive Software(TTWO) - 2025 Q3 - Quarterly Report
2025-02-06 23:15
Revenue Generation - Take-Two's Grand Theft Auto products generated 13% of net revenue for the nine months ended December 31, 2024[129]. - Net revenue from digital online channels comprised 96.4% of net revenue for the nine months ended December 31, 2024[133]. - The NBA 2K Online game in China has over 65 million registered users, making it the top online PC sports game in the region[127]. - The company derives a substantial portion of its revenue from console products, which comprised 37.2% of net revenue for the nine months ended December 31, 2024[132]. - Net revenue from mobile increased by $161.4 million, accounting for 54.2% of total net revenue, up from 51.5% in the prior year period[176]. - Net revenue from digital online channels increased to $1,310.7 million, accounting for 96.4% of total net revenue, compared to 94.9% in the prior year[149]. - The five largest customers accounted for 81.8% of net revenue during the nine months ended December 31, 2024, indicating a high concentration of revenue from major clients[209]. Future Releases - Rockstar Games plans to release Grand Theft Auto VI in the fall of calendar year 2025[123]. - The company expects to continue to deliver new content for its franchises throughout the year[138]. - 2K plans to release Sid Meier's Civilization VII, PGA TOUR 2K25, and WWE 2K25 during the remainder of fiscal year 2025[137]. Financial Performance - Net Bookings for the three months ended December 31, 2024, were $1,373.4 million, an increase of 2.7% compared to $1,337.8 million in the prior year[141]. - Total net revenue for the three months ended December 31, 2024, was $1,359.8 million, a slight decrease of 0.5% from $1,366.3 million in the same period last year[144]. - Gross profit for the three months ended December 31, 2024, was $759.9 million, representing 55.9% of net revenue, up from 49.7% in the prior year[150]. - The company reported a net loss of $125.2 million for the three months ended December 31, 2024, compared to a net loss of $91.6 million in the prior year[144]. - For the nine months ended December 31, 2024, total net revenue was $4,051.1 million, representing a 2.6% increase from $3,950.2 million in the prior year period[175]. - Net loss for the three months ended December 31, 2024, was $125.2 million, compared to a net loss of $91.6 million in the prior year period[174]. - Net loss for the nine months ended December 31, 2024, was $752.7 million, an improvement from a net loss of $841.2 million in the prior year, with a basic and diluted loss per share of $4.31[201]. Operating Expenses - Total operating expenses for the three months ended December 31, 2024, were $892.0 million, representing 65.5% of net revenue, an increase from 59.1% in the prior year[152]. - Selling and marketing expenses increased by $21.6 million for the three months ended December 31, 2024, mainly due to higher marketing expenses for Match Factory![156]. - General and administrative expenses increased by $24.6 million for the three months ended December 31, 2024, driven by higher personnel and consulting expenses[157]. - Total operating expenses for the nine months ended December 31, 2024, were $2,873.1 million, representing 70.9% of net revenue, an increase of $222.9 million or 8.4% compared to the prior year[181]. - Selling and marketing expenses increased by $180.3 million to $1,281.6 million, accounting for 31.6% of net revenue, primarily due to higher marketing expenses for the Match Factory! release[182]. - Research and development expenses increased by $8.9 million for the three months ended December 31, 2024, primarily due to increased headcount[159]. - General and administrative expenses increased by $111.9 million to $653.1 million, or 16.1% of net revenue, due to higher legal fees, personnel expenses, and IT-related costs[184]. Cash and Liquidity - As of December 31, 2024, the company had $1,308.9 million in cash and cash equivalents, an increase from $1,102.0 million at March 31, 2024, primarily due to net cash provided by financing activities[214]. - Cash and cash equivalents held outside of the U.S. by foreign subsidiaries amounted to $804.9 million, supporting the liquidity needs of the company's international operations[212]. - For the nine months ended December 31, 2024, net cash used in operating activities was $(324.2) million, compared to $(7.2) million for the same period in 2023[214]. - As of December 31, 2024, the company had $3,650.0 million of Senior Notes outstanding and $747.8 million available for additional borrowings under the 2022 Credit Agreement[204][205]. Economic Factors - The company continues to monitor macroeconomic factors that may affect consumer demand and pricing pressure on products[130]. - The company anticipates fluctuations in quarterly operating results due to various factors, including the timing of new title introductions and seasonal demand[219]. - A hypothetical 10% increase in the value of the U.S. dollar against all currencies would decrease revenues by 3.9%, while a 10% decrease would increase revenues by 3.9%[229]. Currency and Foreign Operations - The company recorded a foreign currency translation adjustment loss of $104.3 million for the three months ended December 31, 2024, compared to a gain of $66.3 million for the same period in 2023[226]. - The company had $270.3 million of forward contracts outstanding to sell foreign currencies in exchange for U.S. dollars as of December 31, 2024[228]. - For the three months ended December 31, 2024, 39.3% of the company's net revenue was generated outside the United States, compared to 40.1% for the same period in 2023[217]. Taxation - The effective tax rate for the three months ended December 31, 2024, was 18.1%, down from 39.9% in the prior year period, primarily due to decreased tax benefits related to unrecognized tax benefits[165].
Take-Two Interactive Software(TTWO) - 2025 Q3 - Earnings Call Transcript
2025-02-06 22:30
Take-Two Interactive (TTWO) Q3 2025 Earnings Call February 06, 2025 04:30 PM ET Company Participants Nicole Shevins - SVP of IR & Corporate CommunicationsStrauss Zelnick - Chairman and CEOKarl Slatoff - PresidentLainie Goldstein - CFODoug Creutz - Managing DirectorAndrew Marok - DirectorCory Carpenter - Internet Equity ResearchJames Heaney - SVP - Equity ResearchChristopher Schoell - Equity Research AssociateJason Bazinet - Director Conference Call Participants Eric Handler - MD & Senior Research AnalystMat ...
Take-Two Interactive Software(TTWO) - 2025 Q3 - Quarterly Results
2025-02-06 21:11
Exhibit 99.1 FOR IMMEDIATE RELEASE CONTACT: (Investor Relations) (Corporate Press) Nicole Shevins Alan Lewis Senior Vice President Vice President Investor Relations & Corporate Communications Take-Two Interactive Software, Inc. Take-Two Interactive Software, Inc. (646) 536-3005 (646) 536-2983 Nicole.Shevins@take2games.com Alan.Lewis@take2games.com Corporate Communications & Public Affairs Take-Two Interactive Software, Inc. Reports Results for Fiscal Third Quarter 2025 $1.37 billion Net Bookings, within Com ...
Take-Two: Once In A Decade Opportunity
Seeking Alpha· 2025-02-02 22:00
Take-Two Interactive (NASDAQ: TTWO ) remains one of the biggest powerhouses in the gaming world. With Grand Theft Auto VI right around the corner, the company is poised for a major growth spurt. The dramatic rise of AI"AWS Certified AI Practitioner Early Adopter"I am a DevOps Engineer for a major, wholly owned subsidiary of a large-cap Fortune 500. I am a true subject-matter expert on the actual buildout, deployment, and maintenance of AI tools and applications. I have increasingly deep knowledge on the sci ...