Take-Two (TTWO) Q4 2024 Earnings Report Highlights:
Revenue:
* $1.36 billion, 1.6% YoY increase
* Missed analyst estimates by 2.1%
Earnings Per Share (EPS):
* -$0.71 (GAAP)
* Beat analyst estimates by 21.1%
Adjusted EBITDA:
* $88.8 million
* 49.9% miss against analyst estimates
Guidance:
* Q1 2025 revenue: $1.57 billion, exceeding analyst estimates
* Full-year 2025 EPS (GAAP): -$4.34, slightly beating estimates
* Full-year 2025 EBITDA: $290 million, below analyst estimates
Key Metrics:
* Operating margin: -9.7%, inline with Q4 2023
* Free cash flow: -$48.2 million, improvement from -$165.2 million in Q3 2024
Market Cap:
* $32.48 billion
Commentary:
Take-Two Interactive Chairman and CEO Strauss Zelnick stated, "We achieved solid results during the holiday season. NBA 2K's strong performance helped offset declines in our mobile franchises. Additionally, expenses were managed effectively, leading to better-than-expected operating results."
Analysis:
Take-Two's revenue growth slowed in Q4 2024, but the company's guidance for the next quarter and full year is positive. The market reacted positively to the results, with the stock rising 6.8%. However, analysts remain cautious due to the company's cash burn and margin compression.
Investment Considerations:
Take-Two's long-term growth prospects are supported by its popular franchises and the ongoing expansion of the video game industry. However, investors should carefully consider the company's financial performance and valuation before making a decision.