What to expect when Take-Two Interactive Software (TTWO) reports Q2 2024 earnings

Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) were up over 1% on Friday. The stock has gained 33% year-to-date. The video game company is scheduled to report its second quarter 2024 earnings results on Wednesday, November 8, after market close. Here’s a look at what to expect from the earnings report:

Revenue

Take-Two has guided for net revenues of $1.26-1.31 billion and net bookings of $1.40-1.45 billion for the second quarter of 2024. Analysts are projecting revenue of $1.41 billion for Q2 2024. This compares to net revenue of $1.39 billion and net bookings of $1.5 billion reported in Q2 2023. In the first quarter of 2024, net revenues increased 17% year-over-year to $1.28 billion and net bookings grew 20% to $1.20 billion.

Earnings

Take-Two has guided for a net loss of $0.90-1.00 for Q2 2024. Analysts are projecting earnings of $1.04 per share for the quarter. The company reported net losses of $1.54 per share in Q2 2023 and $1.22 per share in Q1 2024.

Points to note

Take-Two is expected to benefit from the strength of its leading titles such as Grand Theft Auto, Red Dead Redemption, and the NBA 2K series in the second quarter. Last quarter, the company saw strong gains from Grand Theft Auto Online, Grand Theft Auto V, and NBA 2K23, as consumers preferred to spend on established franchises that offer value. Grand Theft Auto Online and NBA 2K23 drove a 38% growth in recurrent consumer spending in Q1.

Another area of strength is mobile gaming. Zynga and its hyper-casual portfolio are expected to continue to drive gains for the company in this rapidly growing market. Titles such as Empires & Puzzles, Toon Blast, and Words With Friends performed well in Q1.

Take-Two expects the largest contributions to net bookings for the second quarter to come from NBA 2K, Grand Theft Auto Online and Grand Theft Auto V, its hyper-casual mobile portfolio, Empires & Puzzles, Toon Blast, Words With Friends, Merge Dragons, Red Dead Redemption 2 and Red Dead Online, and Zynga Poker.

Take-Two expects recurrent consumer spending to decline by around 7% in Q2 due to modest declines in its mobile business and a reduction in DLC revenue from several titles released in prior years. It expects operating expenses to range between $811-821 million in Q2.