Take-Two Interactive Software(TTWO) - 2025 Q1 - Quarterly Results

Financial Performance - Total Net Bookings for Q1 Fiscal 2025 reached $1.22 billion, a 1% increase from $1.20 billion in the same period last year[3] - GAAP net revenue increased by 4% to $1.34 billion compared to $1.28 billion in Q1 Fiscal 2024[4] - The company reported a GAAP net loss of $262 million, or $1.52 per share, compared to a net loss of $206 million, or $1.22 per share, in the prior year[4] - Total net revenue for the three months ended June 30, 2024, was $1,338.2 million, a 4.2% increase from $1,284.7 million in the same period of 2023[22] - Game revenue increased to $1,216.7 million, up from $1,096.1 million, reflecting a significant growth in gaming sales[22] - The company reported a net loss of $262.0 million, compared to a net loss of $206.0 million in the same quarter of 2023, resulting in a loss per share of $1.52[22] - Net revenue for the three months ended June 30, 2024, was $1,338.2 million, a 4.2% increase from $1,284.7 million in the same period of 2023[25] - Net loss for the same period was $262.0 million, compared to a net loss of $206.0 million in 2023[24] - The anticipated net loss for Fiscal Year 2025 is between $757 million and $690 million, with a net loss per share of $(4.33) to $(3.95)[8] Revenue Sources - Recurrent consumer spending accounted for 83% of total Net Bookings, remaining flat year-over-year[3] - Digital online revenue accounted for 97% of total net revenue, amounting to $1,295.5 million, up from $1,240.0 million in 2023[26] - Mobile platform revenue increased to $722.5 million, representing 54% of total net revenue, compared to $680.0 million (53%) in 2023[26] - The United States contributed $820.5 million (61%) to total net revenue, while international revenue was $517.7 million (39%) for the three months ended June 30, 2024[25] Future Outlook - The outlook for Fiscal Year 2025 is set at Net Bookings of $5.55 to $5.65 billion[2] - For Q2 Fiscal 2025, the company projects total net revenue between $1.29 billion and $1.34 billion[10] - Management remains optimistic about future growth opportunities and expects sequential increases in Net Bookings in Fiscal 2026 and 2027[3] - The company expects a net loss of $(400) to $(373) million for the three months ended September 30, 2024[39] Asset and Liability Management - Total current assets increased to $2,559.0 million from $2,259.7 million, driven by higher cash and cash equivalents[23] - Total assets reached $12,944.6 million, up from $12,216.9 million, reflecting overall growth in the company's financial position[23] - Total liabilities increased to $6,953.1 million from $6,549.0 million, primarily due to an increase in current liabilities[23] - The company’s additional paid-in capital rose to $9,962.5 million, up from $9,371.6 million, indicating strong investor confidence[23] Operational Efficiency - The company is focusing on efficiency while engaging players with new game releases and content updates[3] - The company continues to focus on developing new products and expanding its market presence, particularly through its subsidiaries like Rockstar Games and Zynga[19] Cash Flow and Expenses - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,471.9 million, up from $1,260.7 million at the end of June 2023[24] - Operating activities resulted in net cash used of $191.0 million, a significant decrease from net cash provided of $5.0 million in the prior year[24] - Adjusted unrestricted operating cash flow for the three months ended June 30, 2024, was $(232.8) million, compared to $(73.8) million in 2023[37] - The company incurred stock-based compensation expenses of $(24.3) million for the three months ended June 30, 2023[36] - The company reported interest expense of $12.6 million for the three months ended June 30, 2023[38] New Product Releases - The company plans to release several new titles, including NBA 2K25 on September 6, 2024, and Grand Theft Auto VI in Fall 2025[13]