Take-Two Interactive Software (TTWO) recently disclosed its financial performance for the third quarter of the 2024 fiscal year, revealing a GAAP net loss of 54 cents per share. This marks an improvement compared to the loss of 91 cents per share reported for the same quarter last year.
Revenue Overview
GAAP net revenue decreased by 3% year-over-year to $1.37 billion. Revenue from the United States saw a decline of 7.7% year-over-year to $818.3 million, representing 60% of GAAP net revenue. International business, on the other hand, experienced a revenue growth of 5.2%.
Performance by Segment
Income from games decreased by 2% year-over-year, while advertising revenue dropped by 10.4%. Booking volume decreased by 3.2% year-over-year, with US bookings down by 9.8% but international bookings increasing by 8%.
Consumer Spending Trends
Consumer spending was impacted by weak mobile advertising and NBA 2K. However, consumer spending on virtual currency for Grand Theft Auto Online saw a significant increase, as did membership in GTA+.
Key Revenue Contributors
Games such as NBA 2K24, NBA 2K23, Grand Theft Auto Online, Grand Theft Auto V, Red Dead Redemption 2, Red Dead Online, Empires & Puzzles, Toon Blast, Merge Dragons!, Words With Friends, and Grand Theft Auto: The Trilogy were the main revenue drivers in the quarter.
Distribution Channels and Digital Sales
Digital online sales revenue decreased by 3% year-over-year, while digital online booking volume decreased by 3%. Mobile revenue decreased by 2%, console revenue dropped by 2.5%, and revenue from PC and other sources decreased by 10.5%.
Financial Performance
GAAP gross profit for Take-Two decreased by 5.3% year-over-year. Operating expenses decreased by 9.1%, with sales and marketing expenses down by 17.7%, general and administrative expenses down by 2.3%, and research and development expenses down by 2.4%.
Financial Position
Take-Two ended the quarter with $1.11 billion in cash, cash equivalents, and short-term investments, compared to $1.23 billion as of September 30, 2023. The company’s debt remained relatively unchanged at $3.08 billion.
Outlook for Q4 2024
For the next quarter, Take-Two expects GAAP net revenue in the range of $1.32 billion to $1.37 billion, with a projected loss of $1 to $0.90 per share. The company anticipates net bookings for the 2024 fiscal year to range from $5.25 billion to $5.30 billion.
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