Take-Two Interactive Software(TTWO) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 Net Bookings reached $1.35 billion, with NBA 2K24, Zynga's in-app purchases, and the Grand Theft Auto series being key contributors[2][4] - Fiscal Year 2024 Net Bookings totaled $5.33 billion, a 1% increase compared to the previous fiscal year[2][14] - Recurrent consumer spending accounted for 79% of Q4 2024 Net Bookings, decreasing by 2% year-over-year[10] - GAAP net loss for Q4 2024 was $2.90 billion, including $2.18 billion in goodwill impairment charges[10] - Fiscal Year 2025 Net Bookings are projected to be between $5.55 billion and $5.65 billion[3][16] - Fiscal Year 2024 GAAP net loss was $3.74 billion, including $2.34 billion in goodwill impairment charges[14] - Fiscal Year 2025 GAAP net loss is expected to range from $674 million to $606 million[16] - Recurrent consumer spending increased by 2% in Fiscal Year 2024, accounting for 78% of total Net Bookings[14] - Fiscal Year 2025 EBITDA is projected to be between $429 million and $483 million[16] - Total net revenue for Q1 2024 is projected to be between $1,300 million and $1,350 million, with a deferred net revenue adjustment of $(100) million[17] - Net loss for Q1 2024 is expected to range from $(272) million to $(245) million, with a net loss per share between $(1.58) and $(1.43)[17] - Non-GAAP EBITDA for Q1 2024 is forecasted to be between $26 million and $47 million[17] - Net bookings for Q1 2024 are anticipated to be between $1,200 million and $1,250 million[17] - The company's GAAP net loss for the twelve months ended March 31, 2024, was $(3,744.2) million, with a basic and diluted loss per share of $(22.01)[34] - Gross profit for the twelve months ended March 31, 2024, was $2,241.8 million, compared to $2,285.3 million in the previous year[34] - The company's total operating expenses for the twelve months ended March 31, 2024, were $5,832.4 million, including a goodwill impairment of $2,342.1 million[34] - Net loss increased significantly from $1.12 billion in 2023 to $3.74 billion in 2024, driven by a $2.34 billion goodwill impairment[38] - Net revenue decreased slightly from $1.45 billion in 2023 to $1.40 billion in 2024, with the United States contributing 62% of total revenue in 2024 compared to 66% in 2023[40] - Net cash used in operating activities was $16.1 million in 2024, compared to net cash provided by operating activities of $1.1 million in 2023[38] - Net revenue for the twelve months ended March 31, 2024, was $5,349.6 million, slightly down from $5,349.9 million in 2023[43] - Cost of revenue for game intangibles increased to $1,301.1 million in 2024 from $1,169.7 million in 2023[43] - Goodwill impairment for 2024 was $2,342.1 million, compared to $0 in 2023[43] - Adjusted Unrestricted Operating Cash Flow for 2024 was $42.0 million, down from $55.7 million in 2023[44] - Net loss for the twelve months ended March 31, 2024, was $(3,744.2) million, compared to $(1,124.7) million in 2023[45] - EBITDA for the twelve months ended March 31, 2024, was $272.0 million, down from $351.4 million in 2023[45] - Fiscal Year 2025 outlook projects a net loss of $(674) to $(606) million and EBITDA of $429 to $483 million[46] - Q2 2024 outlook projects a net loss of $(272) to $(245) million and EBITDA of $26 to $47 million[47] Product Releases and Expectations - Grand Theft Auto VI release window narrowed to Fall 2025, with high commercial expectations[5] - Key product releases in 2024 include "Penny's Big Breakaway" (February 21), "WWE 2K24" (March 8), and "TopSpin 2K25" (April 26)[18] - Future product lineup includes "Star Wars Hunters" (June 4, 2024) and "Grand Theft Auto VI" (Fall 2025)[21] Revenue and Bookings Breakdown - Digital online revenue accounted for 95% of total net revenue in 2024, consistent with 96% in 2023, indicating a continued shift towards digital distribution[40] - Mobile platform revenue remained stable at 51% of total net revenue in 2024, while console revenue decreased slightly from 40% to 41%[40] - Net Bookings by geographic region showed a slight decrease in the United States from 62% in 2023 to 61% in 2024, while international bookings remained stable at 39%[40] - Net revenue for the twelve months ended March 31, 2024, was $5,349.6 million, with the United States contributing $3,279.2 million (61%) and international markets contributing $2,070.4 million (39%)[41] - Digital online distribution accounted for 96% of net revenue ($5,112.2 million) in the twelve months ended March 31, 2024, up from 95% ($5,085.7 million) in the same period last year[41] - Mobile platform revenue increased to $2,748.0 million (51% of total) in the twelve months ended March 31, 2024, compared to $2,538.6 million (47%) in the previous year[41] - Net bookings for the twelve months ended March 31, 2024, were $5,333.0 million, with mobile platform bookings reaching $2,757.7 million (52%)[41] Expenses and Costs - Cost of revenue for the three months ended March 31, 2024, was $474.7 million for game intangibles and $210.7 million for product costs[42] - Software development costs and royalties for the three months ended March 31, 2024, were $88.2 million, with an additional $78.6 million for licenses[42] - General and administrative expenses for the three months ended March 31, 2024, were $175.0 million, with research and development costs at $245.5 million[42] - Amortization and impairment of acquired intangibles for the three months ended March 31, 2024, totaled $474.7 million[42] - Stock-based compensation for the three months ended March 31, 2024, was $29.2 million for general and administrative expenses and $25.0 million for research and development[42] - Acquisition-related expenses for the three months ended March 31, 2024, were $12.5 million, with a significant impact from goodwill impairment of $2,176.7 million[42] Balance Sheet and Cash Flow - Total assets decreased from $15.86 billion in 2023 to $12.22 billion in 2024, primarily due to a reduction in goodwill from $6.77 billion to $4.43 billion[36] - Cash and cash equivalents decreased from $827.4 million in 2023 to $754.0 million in 2024, while restricted cash and cash equivalents also declined from $307.6 million to $252.1 million[36] - Long-term debt increased from $1.73 billion in 2023 to $3.06 billion in 2024, reflecting higher borrowing activities[36] - Total stockholders' equity decreased from $9.04 billion in 2023 to $5.67 billion in 2024, primarily due to the accumulated deficit increasing to $2.58 billion[36] Tax and Share Count - The company's tax rate is expected to be 18%, with a share count of 171.7 million for GAAP net loss per share calculations[19]