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Take-Two Interactive (TTWO) lowers FY23 revenue & EPS guidance

Take-Two Interactive is tempering expectations for the upcoming fiscal year in the wake of Monday's earnings report.

Ozzie Mejia

February 6, 2023 1:41 PM

Take-Two Interactive

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Take-Two Interactive (TTWO), parent company of 2K Games and Rockstar Games, issued its Q3 2023 earnings results on Monday. While the publisher has a big year lined up, it has tempered its expectations slightly in the wake of today's earnings report. Revenue and EPS guidance numbers for the 2023 fiscal year ending March 31, 2023 have been lowered slightly to account for Monday's results.

Here are the major bullet points, as indicated by the Take-Two Q3 earnings report:

• GAAP net revenue is expected to range from $5.24 to $5.29 billion
• GAAP net loss is expected to range from $721 to $704 million
• GAAP net loss per share is expected to range from $4.50 to $4.40
• Share count used to calculate GAAP net loss per share is expected to be 159.8 million
• Share count used to calculate management reporting diluted net income per share is expected to be 161.8 million
• Net cash provided by operating activities is expected to be over $350 million
• Adjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over $400 million
• Capital expenditures are expected to be approximately $170 million
• Net Bookings (operational metric) are expected to range from $5.2 to $5.25 billion
• EBITDA (Non-GAAP) is expected to range from $386 to $406 million

Here are the Q4 2023 expectations:

• GAAP net revenue is expected to range from $1.34 to $1.39 billion
• GAAP net loss is expected to range from $214 to $197 million
• GAAP net loss per share is expected to range from $1.27 to $1.17
• Share count used to calculate GAAP net loss per share is expected to be 168.0 million
• Share count used to calculate management reporting diluted net income per share is expected to be 169.2 million
• Net Bookings (operational metric) are expected to range from $1.31 to $1.36 billion
• EBITDA (Non-GAAP) is expected to range from $102 to $122 million

Take-Two only has a small portion of its FY23 lineup revealed. The major releases on the horizon include WWE 2K23, After Us, and the early access version of Kerbal Space Program 2. Mobile versions of Grand Theft Auto: The Trilogy - The Definitive Edition, the current console generation versions of Marvel's Midnight Suns, and the upcoming Star Wars Hunters currently have undetermined release dates. Take-Two Interactive stock is down 3.4 percent at the end of trading on Monday and continues to fall in after hours trading.

More information is expected to come during Monday's Take-Two Interactive Q3 2023 earnings call, which will air at 1:30 p.m. PT/4:30 p.m. ET and can be viewed live on the Shacknews Twitch channel. We'll have our eye out for any breaking news, so keep it on Shacknews for any updates.

Ozzie Mejia

Senior Editor

Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?