Take-Two Interactive Software (TTWO - Free Report) reported second-quarter fiscal 2023 loss of $1.54 per share against the year-ago quarter’s earnings of 9 cents per share.
Net revenues jumped 62.4% year over year to $1.39 billion. Net bookings increased 52.8% to $1.50 billion.
The Zacks Consensus Estimate for earnings and revenues was pegged at $1.25 per share and $1.52 billion, respectively.
Game revenues (87.5% of revenues) improved 46.4% year over year to $1.22 billion. Advertising revenues (12.5% of revenues) jumped 585.1% year over year to $174.7 million.
Take-Two experienced healthy player engagement, driven by exciting new game releases, post-launch content updates and strong adoption of its mobile offerings.
Top-line growth benefited from strong adoption titles, including NBA 2K22 and NBA 2K23, Grand Theft Auto Online and Grand Theft Auto V, Empires & Puzzles, Rollic's hyper-casual portfolio, Toon Blast, Red Dead Redemption 2 and Red Dead Online, Words With Friends, Merge Dragons! and Toy Blast.
Grand Theft Auto V exceeded Take Two’s expectations and to date has sold more than 170 million units worldwide. In the reported quarter, Take-Two launched NBA 2K23. To date, NBA 2K23 has sold nearly 5 million units, alongside significant growth in virtual currency sales.
Red Dead Redemption 2 sold more than 46 million units worldwide to date.
Top-Line Details
Digital revenues (94.7% of revenues) improved 69.3% year over year to $1.32 billion. Physical retail revenues (5.3% of revenues) declined 6.1% year over year to $74.3 million.
Region-wise, revenues from the United States (60.5% of revenues) soared 63.7% year over year to $842.9 million. International revenues (39.5% of revenues) increased 60.4% year over year to $550.6 million.
Based on platforms, revenues from consoles (39.6% of revenues) decreased 7.4% year over year to $551.9 million. Revenues from mobile (52.4% of revenues) surged 534.3% year over year to $369.6 million. Revenues from PC and other (8% of revenues) decreased 24.1% year over year to $111.5 million.
Operating Details
Take-Two’s gross profit increased 69.3% year over year to $679.6 million. Reported gross margin of 48.8% expanded 200 basis points on a year-over-year basis.
Operating expenses surged 144.4% year over year to $932.1 million.
Operating loss was $252.5 million against the year-ago quarter’s operating income of $20.1 million.
Balance Sheet
As of Sep 30, 2022, Take-Two had $1.90 billion in cash, cash equivalents and short-term investments compared with $2.55 billion as of Jun 30, 2022.
The company had a debt of $3.3 billion as of Sep 30, unchanged sequentially.
Net cash provided by operating activities was $100.8 million compared with $148.2 million reported in the year-ago quarter.
Guidance
For the third quarter of fiscal 2023, Take Two expects GAAP net revenues between $1.43 billion and $1.48 billion. The company expects a loss between 95 and 85 cents per share.
Net bookings are projected between $1.41 billion and $1.46 billion.
For fiscal 2023, Take-Two expects GAAP net revenues between $5.41 billion and $5.51 billion. The company expects a loss between $4.22 and $3.95 per share.
Net bookings are projected between $5.4 billion and $5.5 billion.
For fiscal 2023, net cash provided by operating activities is expected to be more than $630 million. Capital expenditures are expected to be approximately $150 million.
Zacks Rank & Stocks to Consider
Take-Two currently carries a Zacks Rank #4 (Sell).
Take-Two shares have lost 39% year to date, underperforming the Zacks Consumer Discretionary sector’s decline of 38.1%.
American Public Education (APEI - Free Report) , Vitru Limited (VTRU - Free Report) and Bowlero Corp (BOWL - Free Report) are some better-ranked stocks that investors can consider in the broader sector. All three companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Public Education is set to announce its third-quarter 2022 results on Nov 8. APEI shares are down 44.1% year to date.
Vitru is set to announce its third-quarter 2022 results on Nov 10. VTRU shares are up 59.5% year to date.
Bowlero is set to announce its first-quarter fiscal 2023 results on Nov 16. BOWL shares are up 58.5% year to date.
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Take-Two Interactive Software (TTWO - Free Report) reported second-quarter fiscal 2023 loss of $1.54 per share against the year-ago quarter’s earnings of 9 cents per share.
Net revenues jumped 62.4% year over year to $1.39 billion. Net bookings increased 52.8% to $1.50 billion.
The Zacks Consensus Estimate for earnings and revenues was pegged at $1.25 per share and $1.52 billion, respectively.
Game revenues (87.5% of revenues) improved 46.4% year over year to $1.22 billion. Advertising revenues (12.5% of revenues) jumped 585.1% year over year to $174.7 million.
Take-Two experienced healthy player engagement, driven by exciting new game releases, post-launch content updates and strong adoption of its mobile offerings.
Top-line growth benefited from strong adoption titles, including NBA 2K22 and NBA 2K23, Grand Theft Auto Online and Grand Theft Auto V, Empires & Puzzles, Rollic's hyper-casual portfolio, Toon Blast, Red Dead Redemption 2 and Red Dead Online, Words With Friends, Merge Dragons! and Toy Blast.
Grand Theft Auto V exceeded Take Two’s expectations and to date has sold more than 170 million units worldwide. In the reported quarter, Take-Two launched NBA 2K23. To date, NBA 2K23 has sold nearly 5 million units, alongside significant growth in virtual currency sales.
Red Dead Redemption 2 sold more than 46 million units worldwide to date.
Top-Line Details
Digital revenues (94.7% of revenues) improved 69.3% year over year to $1.32 billion. Physical retail revenues (5.3% of revenues) declined 6.1% year over year to $74.3 million.
Region-wise, revenues from the United States (60.5% of revenues) soared 63.7% year over year to $842.9 million. International revenues (39.5% of revenues) increased 60.4% year over year to $550.6 million.
Based on platforms, revenues from consoles (39.6% of revenues) decreased 7.4% year over year to $551.9 million. Revenues from mobile (52.4% of revenues) surged 534.3% year over year to $369.6 million. Revenues from PC and other (8% of revenues) decreased 24.1% year over year to $111.5 million.
Operating Details
Take-Two’s gross profit increased 69.3% year over year to $679.6 million. Reported gross margin of 48.8% expanded 200 basis points on a year-over-year basis.
Operating expenses surged 144.4% year over year to $932.1 million.
Operating loss was $252.5 million against the year-ago quarter’s operating income of $20.1 million.
Balance Sheet
As of Sep 30, 2022, Take-Two had $1.90 billion in cash, cash equivalents and short-term investments compared with $2.55 billion as of Jun 30, 2022.
The company had a debt of $3.3 billion as of Sep 30, unchanged sequentially.
Net cash provided by operating activities was $100.8 million compared with $148.2 million reported in the year-ago quarter.
Guidance
For the third quarter of fiscal 2023, Take Two expects GAAP net revenues between $1.43 billion and $1.48 billion. The company expects a loss between 95 and 85 cents per share.
Net bookings are projected between $1.41 billion and $1.46 billion.
For fiscal 2023, Take-Two expects GAAP net revenues between $5.41 billion and $5.51 billion. The company expects a loss between $4.22 and $3.95 per share.
Net bookings are projected between $5.4 billion and $5.5 billion.
For fiscal 2023, net cash provided by operating activities is expected to be more than $630 million. Capital expenditures are expected to be approximately $150 million.
Zacks Rank & Stocks to Consider
Take-Two currently carries a Zacks Rank #4 (Sell).
Take-Two shares have lost 39% year to date, underperforming the Zacks Consumer Discretionary sector’s decline of 38.1%.
American Public Education (APEI - Free Report) , Vitru Limited (VTRU - Free Report) and Bowlero Corp (BOWL - Free Report) are some better-ranked stocks that investors can consider in the broader sector. All three companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Public Education is set to announce its third-quarter 2022 results on Nov 8. APEI shares are down 44.1% year to date.
Vitru is set to announce its third-quarter 2022 results on Nov 10. VTRU shares are up 59.5% year to date.
Bowlero is set to announce its first-quarter fiscal 2023 results on Nov 16. BOWL shares are up 58.5% year to date.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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