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Take-Two Interactive Software(TTWO) - 2024 Q4 - Annual Results
TTWOTake-Two Interactive Software(TTWO)2024-05-16 20:11

Financial Performance - Q4 2024 Net Bookings reached 1.35billion,withNBA2K24,Zynga′sin−apppurchases,andtheGrandTheftAutoseriesbeingkeycontributors[2][4]−FiscalYear2024NetBookingstotaled1.35 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 2.90billion,including2.90 billion, including 2.18 billion in goodwill impairment charges[10] - Fiscal Year 2025 Net Bookings are projected to be between 5.55billionand5.55 billion and 5.65 billion[3][16] - Fiscal Year 2024 GAAP net loss was 3.74billion,including3.74 billion, including 2.34 billion in goodwill impairment charges[14] - Fiscal Year 2025 GAAP net loss is expected to range from 674millionto674 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 429millionand429 million and 483 million[16] - Total net revenue for Q1 2024 is projected to be between 1,300millionand1,300 million and 1,350 million, with a deferred net revenue adjustment of (100)million[17]−NetlossforQ12024isexpectedtorangefrom(100) million[17] - Net loss for Q1 2024 is expected to range from (272) million to (245)million,withanetlosspersharebetween(245) million, with a net loss per share between (1.58) and (1.43)[17]−Non−GAAPEBITDAforQ12024isforecastedtobebetween(1.43)[17] - Non-GAAP EBITDA for Q1 2024 is forecasted to be between 26 million and 47million[17]−NetbookingsforQ12024areanticipatedtobebetween47 million[17] - Net bookings for Q1 2024 are anticipated to be between 1,200 million and 1,250million[17]−Thecompany′sGAAPnetlossforthetwelvemonthsendedMarch31,2024,was1,250 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]−GrossprofitforthetwelvemonthsendedMarch31,2024,was(22.01)[34] - Gross profit for the twelve months ended March 31, 2024, was 2,241.8 million, compared to 2,285.3millioninthepreviousyear[34]−Thecompany′stotaloperatingexpensesforthetwelvemonthsendedMarch31,2024,were2,285.3 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 2,342.1million[34]−Netlossincreasedsignificantlyfrom2,342.1 million[34] - Net loss increased significantly from 1.12 billion in 2023 to 3.74billionin2024,drivenbya3.74 billion in 2024, driven by a 2.34 billion goodwill impairment[38] - Net revenue decreased slightly from 1.45billionin2023to1.45 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 16.1millionin2024,comparedtonetcashprovidedbyoperatingactivitiesof16.1 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 5,349.6million,slightlydownfrom5,349.6 million, slightly down from 5,349.9 million in 2023[43] - Cost of revenue for game intangibles increased to 1,301.1millionin2024from1,301.1 million in 2024 from 1,169.7 million in 2023[43] - Goodwill impairment for 2024 was 2,342.1million,comparedto2,342.1 million, compared to 0 in 2023[43] - Adjusted Unrestricted Operating Cash Flow for 2024 was 42.0million,downfrom42.0 million, down from 55.7 million in 2023[44] - Net loss for the twelve months ended March 31, 2024, was (3,744.2)million,comparedto(3,744.2) million, compared to (1,124.7) million in 2023[45] - EBITDA for the twelve months ended March 31, 2024, was 272.0million,downfrom272.0 million, down from 351.4 million in 2023[45] - Fiscal Year 2025 outlook projects a net loss of (674)to(674) to (606) million and EBITDA of 429to429 to 483 million[46] - Q2 2024 outlook projects a net loss of (272)to(272) to (245) million and EBITDA of 26to26 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 5,349.6million,withtheUnitedStatescontributing5,349.6 million, with the United States contributing 3,279.2 million (61%) and international markets contributing 2,070.4million(392,070.4 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% (5,085.7million)inthesameperiodlastyear[41]−Mobileplatformrevenueincreasedto5,085.7 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 2,538.6million(472,538.6 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 2,757.7million(522,757.7 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 210.7millionforproductcosts[42]−SoftwaredevelopmentcostsandroyaltiesforthethreemonthsendedMarch31,2024,were210.7 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 78.6millionforlicenses[42]−GeneralandadministrativeexpensesforthethreemonthsendedMarch31,2024,were78.6 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 245.5million[42]−AmortizationandimpairmentofacquiredintangiblesforthethreemonthsendedMarch31,2024,totaled245.5 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 29.2millionforgeneralandadministrativeexpensesand29.2 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 12.5million,withasignificantimpactfromgoodwillimpairmentof12.5 million, with a significant impact from goodwill impairment of 2,176.7 million[42] Balance Sheet and Cash Flow - Total assets decreased from 15.86billionin2023to15.86 billion in 2023 to 12.22 billion in 2024, primarily due to a reduction in goodwill from 6.77billionto6.77 billion to 4.43 billion[36] - Cash and cash equivalents decreased from 827.4millionin2023to827.4 million in 2023 to 754.0 million in 2024, while restricted cash and cash equivalents also declined from 307.6millionto307.6 million to 252.1 million[36] - Long-term debt increased from 1.73billionin2023to1.73 billion in 2023 to 3.06 billion in 2024, reflecting higher borrowing activities[36] - Total stockholders' equity decreased from 9.04billionin2023to9.04 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]