TAKE-TWO INTERACTIVE SOFTWARE, INC (NASDAQ:TTWO) Misses Analysts’ Expectations

TAKE-TWO INTERACTIVE SOFTWARE, INC  (NASDAQ:TTWO) stock fell 3.08% (As on August 9, 11:46:55 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 23. Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in game purchases and in-game advertising) increased 44% and accounted for 75% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 40% to $1.0 billion, as compared to $740.8 million in last year’s fiscal first quarter, and accounted for 94% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA 2K22; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Empires & Puzzle; Tiny Tina’s Wonderlands; WWE 2K22; Rollic’s hyper-casual portfolio; Toon Blast; The Quarry; and Top Eleven. During fiscal first quarter 2023, total Net Bookings grew 41% to $1.0 billion, as compared to $711.4 million during last year’s fiscal first quarter. Net Bookings from recurrent consumer spending grew 48% and accounted for 73% of total Net Bookings. Digitally-delivered Net Bookings were up 41% to $956.0 million, as compared to $680.4 million in last year’s fiscal first quarter, and accounted for 95% of total Net Bookings. Catalog accounted for $876.1 million of Net Bookings led by NBA 2K; Grand Theft Auto; Empires & Puzzles; Red Dead Redemption; Rollic’s hyper-casual portfolio; Toon Blast; Top Eleven; Words With Friends; and Merge Dragons!

TTWO in the first quarter of FY 23 has reported the adjusted earnings per share of 61 cents, missing the analysts’ estimates for the adjusted earnings per share of 84 cents. The company had reported the adjusted revenue growth of 36 percent to $1 billion in the first quarter of FY 23, missing the analysts’ estimates for revenue of $1.04 billion.

For the second quarter ending in October, Take-Two said it expects revenue in the range of $1.5 billion to $1.55 billion.

The company expects full-year revenue in the range of $5.8 billion to $5.9 billion. For Fiscal Year 2023, the company now expects to deliver Net Bookings of $5.8 billion to $5.9 billion when including the combination with Zynga. For fiscal 2023, the company expects Net cash provided by operating activities is expected to be over $710 million, Adjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over $700 million and Capital expenditures are expected to be approximately $135 million.

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