Revenue and profitability
Core franchises and Zynga
Take-Two saw gains in its core titles as customers, cautious with their spending, opted for established franchises. The biggest contributions to revenue in Q1 came from NBA2K23, Grand Theft Auto Online, Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online.
NBA2K23 has sold-in over 13 million units, reflecting an 11% growth YoY, fueled by high demand. The title is seeing strong engagement with around 2.6 million daily active users. Grand Theft Auto V has sold-in more than 185 million units while Red Dead Redemption 2 has sold-in more than 55 million units to-date.
Zynga is a significant contributor to revenue with franchises such as Toon Blast, Toy Blast, Words With Friends, and Empires & Puzzles recording strong gains in Q1. Zynga’s ad revenue grew around 11% YoY in the first quarter and the ad business is expected to see growth through FY2024.
Take-Two expects NBA 2K, Grand Theft Auto Online, Grand Theft Auto V, its hyper-casual mobile portfolio, Empires & Puzzles, Toon Blast, Merge Dragons, Words With Friends, Red Dead Redemption 2, Red Dead Online, and Zynga Poker to be the biggest contributors to net bookings in the second quarter and full year of 2024.
Outlook
For the second quarter of 2024, Take-Two expects revenue of $1.26-1.31 billion. Net bookings are expected to range from $1.40-1.45 billion. Recurrent consumer spending is projected to decline by around 7%. Operating expenses are estimated to range between $811-821 million.
For the full year of 2024, net revenue is expected to range between $5.37-5.47 billion. Net bookings are estimated to range between $5.45-5.55 billion. Recurrent consumer spending is expected to grow by 5% YoY. Operating expenses are expected to range between $3.38-3.40 billion.