TAKE-TWO INTERACTIVE SOFTWARE, INC Common Stock (NASDAQ: TTWO) stock soared over 7.8% on 6th August 2019 (as of 11:46 am GMT-4; Source: Google finance) as the company reported fiscal first-quarter net income of $46.3 million compared with $71.7 million, in the year-ago period. The revenue rose to $540.5 million from $388 million in the year-ago period, which is a growth of 39%. Further, the company, which has been working to secure a foothold in the changing gaming landscape, has managed to prevail over challenges posed by the rise of mobile-based, free-to-play games with its series of popular games. “Grand Theft Auto V” has sold nearly 100 million units since its launch in 2013, making it one of the best-selling games ever for the company. “NBA 2K19”, which debuted last September, was the 5th best-selling game of 2018, according to research firm NPD. Both the games were among the top-10 selling video games in June, according to NPD.
Bookings grew 46% to $422.2 million. Analysts surveyed by FactSet had estimated TTWO’s adjusted earnings of 4 cents a share on bookings of $357 million.
Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content and in-game purchases) increased 31% and accounted for 58% of total GAAP net revenue. Digitally-delivered GAAP net revenue grew 36% to $427.8 million, as compared to $315.0 million in last year’s fiscal first quarter, and accounted for 79% of total GAAP net revenue.
Additionally, during the first quarter 2020, GAAP net cash provided by (used in) operating activities increased to $108.5 million, as compared to ($11.2) million in the same period last year. During the first quarter 2020, Adjusted Operating Cash Flow (Non-GAAP), adjusted for changes in restricted cash, increased to $46.6 million, as compared to ($83.2) million in the same period last year
For the fiscal second quarter, the analysts expect adjusted earnings of $1.71 a share on sales of $852 million.
The company has raised its fiscal 2020 outlook to earnings of $1.04 to $1.14 a share on sales of $855 million to $905 million. It said it expects bookings to be in the range of $860 million to $910 million. The company has raised its full-year revenue forecast on Monday, based on the success of its games “NBA 2K”, “Grand Theft Auto V” and “Red Dead Redemption 2”.