Take-Two Interactive Stock Gains On Q4 Beat, Strong Q1 Guidance

Take-Two Interactive Software Inc TTWO reported the fourth quarter FY21 net revenue growth of 10% year-on-year to $839.4 million.
Total Net Bookings rose 8% Y/Y to $784.5 million, beating the analyst consensus of $664 million.
U.S. revenue rose 24% Y/Y to $513.5 million, while International revenue declined 6% Y/Y to $325.9 million.
Digital online revenue rose 18.7% Y/Y to $753.3 million, but Physical retail and other revenue declined 31.5% Y/Y to $86.2 million.
Console revenue rose 12% Y/Y to $608 million, and PC and other revenue rose 6% Y/Y to $231.5 million.
Digitally delivered net revenue rose 19% Y/Y to $753.3 million, with Digitally delivered Net Bookings increasing 8% Y/Y to $723.7 million.
The gross margin expanded 1,871 basis points to 66.7%, and the operating margin expanded 1,445 basis points 30.5%.
GAAP net income rose 78% Y/Y to $218.8 million.
Non-GAAP EPS was $1.40 beating the analyst consensus of $0.67.
Take-Two generated $912.3 million in operating cash flow and held $2.732 billion in cash and equivalents.
Guidance: Take-Two sees a Q1 FY22 net revenue outlook of $730 million - $780 million. It expects Net Bookings of $625 million - $675 million, above the analyst consensus of $592.31 million. It sees a GAAP EPS guidance of $1 - $1.10.
"In Fiscal 2022, we plan to deliver an exciting array of offerings, including four immersive core releases, of which two will be from new franchises. In addition, we expect Fiscal 2022 to be our second consecutive year of Net Bookings in excess of $3 billion," CEO Strauss Zelnick said.
Price action: TTWO shares traded higher by 2.93% at $172.61 in the premarket session on the last check Wednesday.
Related content: Benzinga's Full Guidance Calendar

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