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Net bookings: $1.47 billion, at the high end of the guidance range.
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Net accounting guidelines for fiscal year 2025: $5.55 billion to $5.65 billion.
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GAAP net income: Up 4% to $1.35 billion.
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Cost of income: Dropped 29% to $625 million.
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Operating costs: Increased 7% to $1 billion.
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Recurring consumer spending: Increase of 6%, accounting for 81% of net bookings.
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Mobile Revenue: Elevated high single digits.
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NBA 2K Revenue: Grew low single digits.
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Net bookings breakdown: 51% Zynga, 32% 2K, 17% Rockstar games.
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Geographic net postings: 60% United States, 40% International.
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Non-GAAP adjusted unrestricted operating cash flow: Expected outflow of $150 million.
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Capital expenditures: About $140 million.
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Tax guidance for net bookings in the third quarter: $1.35 billion to $1.4 billion.
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Forecasting recurring consumer spending: An increase of approximately 9% is expected.
Release date: November 6, 2024
For the full earnings call transcript, please refer to the full earnings call transcript.
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Take-Two Interactive Software Inc (NASDAQ:TTWO) reported strong second-quarter results with net bookings of $1.47 billion, hitting the high end of their expectations.
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The Grand Theft Auto and Borderlands franchises continue to perform exceptionally well, with Grand Theft Auto V exceeding expectations and selling more than 205 million copies worldwide.
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NBA 2K25 achieved significant growth in average revenue per user and games per user, with 4.5 million units sold and a 40% increase in average games per user.
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Zynga’s mobile games, such as Match Factory and Toon Blast, showed strong growth, with Toon Blast’s net bookings increasing more than 50% year-over-year.
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Take-Two Interactive Software Inc (NASDAQ:TTWO) is optimistic about future growth and plans to release several blockbuster titles in fiscal 2026, including Grand Theft Auto VI, Borderlands 4 and Mafia: The Old Country.
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The company experienced declines in its hyper-casual mobile portfolio and Empires & Puzzles, which partially offset growth in other mobile segments.
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Despite higher review scores for NBA 2K25, unit sales remained flat year-over-year, indicating the difficulty in translating critical acclaim into higher sales.
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The decision to sell the Private Division label signals a strategic shift, but may also indicate challenges in achieving desired growth through partnerships with independent developers.
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There is continued pressure on operating costs, up 7% year-on-year, driven by marketing and personnel costs.
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The company is facing challenges in the mobile industry, with the need to balance user acquisition costs and monetization strategies across platforms.
