Take-Two Interactive Software ( TTWO Quick Quote TTWO - Free Report) reported a first-quarter fiscal 2023 loss of 76 cents per share against the year-ago quarter’s earnings of $1.30 per share. Net revenues jumped 35.5% year over year to $1.10 billion. Net Bookings surged 40.9% to $1 billion. The Zacks Consensus Estimate for earnings and revenues was pegged at 53 cents per share and $1.04 billion, respectively. Game revenues (92.5% of revenues) improved 28% year over year to $1.02 billion. Advertising revenues (7.5% of revenues) jumped 389.4% year over year to $83.2 million. Top-Line Details
Digital revenues (94.1% of revenues) improved 40.1% year over year to $1.04 billion. Physical retail revenues (5.9% of revenues) declined 10.9% year over year to $64.6 million.
Recurrent consumer spending (virtual currency, add-on content and in-game purchases, including the allocated value of virtual currency and add-on content incorporated in special editions of certain games) increased 44% year over year and accounted for 75% of total revenues. Region-wise, revenues from the United States (61.9% of revenues) soared 38.5% year over year to $682.9 million. International revenues (38.1% of revenues) increased 31.1% year over year to $419.5 million. Based on platforms, revenues from consoles (55.1% of revenues) increased 0.8% year over year to $607.2 million. Revenues from mobile (33.5% of revenues) surged 349.1% year over year to $369.6 million. Revenues from PC and other (11.4% of revenues) decreased 2.3% year over year to $125.6 million. Operating Details
Take-Two’s gross profit increased 37.9% year over year to $666.7 million. Reported gross margin of 60.5% expanded 100 basis points (bps) on a year-over-year basis.
Operating expenses surged 124.9% year over year to $704.1 million. Operating loss was $37.4 million against the year-ago quarter’s operating income of $170.5 million. Balance Sheet
As of Jun 30, 2022, Take-Two had $2.55 billion in cash, cash equivalents and short-term investments compared with $2.55 billion as of Mar 31, 2022.
The company had a debt of $3.3 billion as of Jun 30. Net cash provided by operating activities was $100.8 million compared with $148.2 million reported in the year-ago quarter. Guidance
For the second quarter of fiscal 2023, Take Two expects GAAP net revenues between $1.37 billion and $1.42 billion. The company expects loss between 96 and 86 cents per share.
Net bookings are projected between $1.5 billion and $1.55 billion. For fiscal 2023, Take-Two expects GAAP net revenues between $5.73 billion and $5.83 billion. The company expects loss between $2.75 and $2.50 per share. Net bookings are projected between $5.8 billion and $5.9 billion. Zacks Rank & Other Stocks to Consider
Take-Two currently carries a Zacks Rank #2 (Buy).
Vitru Limited ( VTRU Quick Quote VTRU - Free Report) is a better-ranked stocks that investors can consider in the broader Zacks Consumer Discretionary sector. Vitru currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Enthusiast Gaming ( EGLX Quick Quote EGLX - Free Report) and On ( ONON Quick Quote ONON - Free Report) are couple of same-ranked stocks that investors can consider in the broader sector. Both Enthusiast Gaming and On have a Zacks Rank #2 (Buy). Vitru is set to announce second-quarter fiscal 2022 results on Aug 25. VTRU shares have been up 15.4% year to date. Enthusiast is set to announce second-quarter 2022 results on Aug 15. EGLX shares have been down 37.8% year to date. On is set to announce second-quarter 2022 results on Aug 16. ONON shares have been down 40.5% year to date.