Take-Two Q4 Earnings Highlights: Revenue Beat, Strong Digital Sales, Guidance And More

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  • Take-two has a 52-week high of $195.82 and a 52-week low of $101.85.

Take-Two Interactive Software TTWO reported fourth quarter and full fiscal year earnings results. Here are the key highlights for investors.

What Happened: The video game company reported fourth-quarter revenue of $930 million, beating a consensus estimate of $882.1 million, according to data from Benzinga Pro. Revenue was up 11% year-over-year in the quarter.

The company reported adjusted earnings of $1.09 per share, down from $1.88 per share in the previous year’s fourth quarter but ahead of the $1.04 consensus estimate.

Digital revenue increased 9% year-over-year in the quarter and represented 90% of total GAAP revenue for the fourth quarter.

The company said the games that contributed the most to revenue were “NBA 2K22,” “NBA 2K21,” “Grand Theft Auto Online,” “Grand Theft Auto V,” “Tiny Tina’s Wonderlands,” “Red Dead Redemption 2,” “Red Dead Online,” “WWE 2K22,” “Top Eleven” and “Two Dots.”

Net bookings in the quarter were $945.8 million, up 8% year-over-year.

Full fiscal year GAAP revenue was $3.5 billion, up 4% year-over-year. Net bookings were $3.4 billion in the fiscal year, down 4% year-over-year. Digital bookings declined 2% to $3.1 billion for the full fiscal year.

“Our strong fourth quarter results concluded another highly successful year for our company, during which we delivered net bookings of $3.4 billion,” Take-Two CEO Strauss Zelnick said.

Related Link: Zynga Acquired By Take-Two: What's Next For The World Of Mobile Gaming

What’s Next: Take-Two is guiding for first-quarter revenue to come in the range of $810 million to $860 million, ahead of a consensus estimate of $776 million, according to Benzinga Pro.

For the full fiscal year 2023, Take-Two sees revenue coming in a range of $3.67 billion to $3.77 billion and earnings per share in a range of $1.90 to $2.15. Take-Two is also guiding for bookings to hit a record of $3.75 billion to $3.85 billion for fiscal 2023.

The company is also working to complete its acquisition of Zynga Inc ZNGA, a mobile game company. The expected close date was listed as May 23, 2022.

“I am pleased that we took pivotal steps to position our organization for the long term by investing in talent, broadening our portfolio further, and agreeing upon our transformational pending combination with Zynga, which has the potential to exponentially increase our net bookings from mobile," Zelnick said.

Current guidance for the full fiscal year from the company does not include the impact of the Zynga acquisition.

TTWO Price Action: Take-Two shares are up 3% to $112.90 in after-hours trading.

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