Take-Two Interactive Software (TTWO) First Quarter 2023 Results

  • Take-Two Interactive Software (TTWO) recently announced its first quarter 2023 results. Those are the details.

Take-Two Interactive Software, Inc. (TTWO) recently announced strong results for the first quarter of its fiscal 2023, which ended June 30, 2022. And the company revised its outlook for fiscal 2023, ending March 31, 2023, to include its combination with Zynga and provided its initial outlook for the second quarter of fiscal 2023, ending September 30, 2022.

Here are some of the highlights:

Note: The company completed its combination with Zynga on May 23, 2022; first quarter results include Zynga for 39 days of the quarter

– GAAP net revenue increased 36% to $1.1 billion

– GAAP net loss per share was $0.76

– GAAP net cash provided by operating activities for the three months ended June 30, 2022 was $100.8 million

– Adjusted (non-GAAP) unrestricted operating cash flow for the three months ended June 30, 2022 was ($14.4) million

– Net bookings increased 41% to $1.0 billion

– Company updates outlook to include combination with Zynga from date of acquisition, including FY2023 net bookings of $5.8 billion to $5.9 billion

Outlook for FY2023

Take-Two revises its outlook for the fiscal year ending March 31, 2023, to include its combination with Zynga (which closed May 23, 2022), and provides its initial outlook for its second fiscal quarter ending September 30 2022:

Fiscal year ending March 31, 2023

– GAAP net revenue is expected to be between $5.73 billion and $5.83 billion

– GAAP net loss expected to be between $438 million and $398 million

– GAAP net loss per share is expected to be between $2.75 and $2.50

– The number of shares used to calculate the GAAP net loss per share should be 159.2 million

– The number of shares used to calculate diluted net earnings per share in the management report should be 161.0 million(1)

– Net cash from operating activities expected to exceed $710 million

– Adjusted (non-GAAP) unrestricted operating cash flow expected to exceed $700 million (2)

– Capital expenditures are expected to be approximately $135 million

– Net bookings (operational measure) are expected to range from $5.8 billion to $5.9 billion

– EBITDA (non-GAAP) is expected to be between $499 million and $548 million

KEY QUOTES:

“Our 2023 fiscal year is off to a strong start, as evidenced by our net bookings of $1 billion in the first quarter. Prior to the combination, our net bookings were approximately $731 million and our operating results exceeded our expectations as we launched exciting new games and content updates, while navigating various factors macroeconomics and geopolitics.

“We remain extremely optimistic about the long-term growth potential of the mobile industry, as well as our ability to create greater shareholder value as a combined entity with Zynga. Our creative teams are actively discussing potential new projects and we remain committed to delivering over $500 million in annual net book opportunities over time. At the same time, we continue to believe that we can achieve approximately $100 million in annual cost synergies in the first two years post-closing, with upside potential. »

“For fiscal 2023, we now expect to generate net bookings of $5.8 billion to $5.9 billion including our combination with Zynga. Our pipeline for the year continues to look very strong and we are excited to significantly expand our mobile presence with a top-notch platform. Our new guidance takes into account some movement in our mailing list for the year, foreign currency pressures, and macroeconomic and geopolitical uncertainty. As we look to the future, our long-term vision is clearer than ever, and we believe that our association with Zynga will allow us to better capitalize on the evolving dynamics of the interactive entertainment industry. As we deliver our large, diverse pipeline and pursue the vast opportunities we have identified through our association with Zynga, we see a path to engage an even wider audience around the world, grow our scale and improve our margins.

– Strauss Zelnick, President and CEO of Take-Two