Take-Two Interactive Q3 Earnings: Revenue Miss, EPS Beat, Bookings Up 3%, Grand Theft Auto VI On Track For Fall Release

Take-Two Interactive Software Inc. (TTWO) reported its third-quarter earnings results on Thursday, February 6, 2025, after the market close. The video game publisher and developer reported mixed results, with revenue missing analyst estimates but earnings per share (EPS) beating expectations. Here's a breakdown of the key takeaways and their impact on the company's financial outlook and investor sentiment.

Revenue Miss and EPS Beat

* Take-Two reported third-quarter revenue of $1.37 billion, missing analyst estimates of $1.39 billion.
* The company reported third-quarter adjusted earnings of 72 cents per share, beating analyst estimates of 57 cents per share.

Net Bookings Growth

* Total net bookings grew 3% year-over-year to $1.37 billion, driven by significant outperformance in NBA 2K, which helped offset moderation experienced in several of the company's mobile franchises.
* Net bookings from recurrent consumer spending grew 9% year-over-year and accounted for 79% of total net bookings.

Grand Theft Auto VI Release Timeline

* Take-Two reiterated its guidance for the release of Grand Theft Auto VI in the fall of 2025, with CEO Strauss Zelnick stating that the company is highly confident in the game's release timeline.
* The anticipated release of Grand Theft Auto VI is expected to drive sequential increases and record levels of net bookings in fiscal years 2026 and 2027.

Investor Sentiment and Stock Performance

* Investors responded favorably to the commentary on the timing of Grand Theft Auto VI's release, with Take-Two shares up 5.91% after hours, trading at $193.90 at the time of publication.
* The company's stock price has been on an upward trend, with a year-to-date gain of 4.95% as of February 7, 2025.

Outlook and Upcoming Releases

* Take-Two expects fourth-quarter revenue to be between $1.52 billion and $1.62 billion, with EPS ranging from a loss of 20 cents per share to positive earnings of 13 cents per share.
* The company anticipates full-year revenue in the range of $5.57 billion to $5.67 billion, with a full-year loss of $4.17 to $4.50 per share.
* Take-Two has a strong pipeline of upcoming titles, including Sid Meier's Civilization VII, Mafia: The Old Country, Grand Theft Auto VI, and Borderlands 4, which are expected to create long-term value for shareholders.

In conclusion, Take-Two Interactive's third-quarter earnings results showed a revenue miss but an EPS beat, with net bookings growth driven by the strong performance of NBA 2K. The anticipated release of Grand Theft Auto VI in the fall of 2025 is expected to have a significant positive impact on the company's financial outlook and investor sentiment. With a strong pipeline of upcoming titles and a positive outlook for the future, Take-Two Interactive appears well-positioned to maintain long-term growth and create value for shareholders.