Take-Two Q2 Earnings Highlights: Shares Hit On Updated Guidance, Here's What The Company Says

Zinger Key Points
  • Take-Two Interactive reported GAAP revenue of $1.4 billion, up 62% year-over-year.
  • Guidance for the full year is below analysts' expectations.
Take-Two Q2 Earnings Highlights: Shares Hit On Updated Guidance, Here's What The Company Says

Video game company Take-Two Interactive Software TTWO reported second-quarter financial results after market close Monday. Here are the key highlights.

What Happened: Take-Two Interactive reported GAAP revenue of $1.4 billion, up 62% year-over-year. The company reported net bookings of $1.5 billion, up 52%. The bookings total missed a Street estimate of $1.55 billion, according to data from Benzinga Pro.

The company reported earnings per share of $1.30 in the second quarter missing a Street estimate of $1.37.

Recurrent consumer spending was up 95% year-over-year and made up 79% of GAAP revenue. The segment includes items like virtual currency, add-on content, in-game advertising and in-game purchases.

Digital net revenue was up 69% to $1.3 billion in the second quarter.

Key titles for the company in the second quarter were NBA 2K22, NBA 2K23, Grand Theft Auto Online, Grand Theft Auto V, Empires & Puzzles, Red Dead Redemption 2 and Red Dead Online.

NBA 2K23 was released on Sept. 9 by the company.

This marked the first full quarter of Zynga results for Take-Two after the mobile game company was acquired earlier this year. Zynga also completed its acquisition of Storemaven on Sept. 12, 2022.

Related Link: Take-Two To Shut Down Major Gaming Studio In A Surprise Move, Closure To Cost 65 Jobs 

What’s Next: The company is guiding for third quarter GAAP net revenue to be in a range of $1.43 billion to $1.48 billion.

Take-Two is guiding for full-year revenue to be in the range of $5.41 billion to $5.51 billion. Analysts were expecting full-year revenue of $5.89 billion according to data from Benzinga Pro.

TTWO Price Action: Take-Two shares were down 16.05% to $91 in after-hours trading Monday. Shares could open at a new 52-week low Tuesday with the current 52-week trading range being $101.85 to $189.89.

Read Next: Analyst Ratings For Take-Two 

Photo: Sergei Elagin via Shutterstock

 

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