Take-Two Interactive Software (TTWO) 9 Aug 222023 Q1 Earnings call transcript

Greetings, and welcome to Take-Two's First Quarter Fiscal Year 2023 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Nicole Shevins, Senior Vice President of Investor Relations and Corporate Communications.

Good afternoon. Thank you for joining our conference call to discuss our results for the first quarter of fiscal year 2023 ended June 30, 2022. led Karl Zelnick, Lainie Slatoff, Chief Officer. be Chief Chairman Goldstein, will Financial Officer; Executive our call by Take-Two’s Strauss and our Today's President; and

Q&A to questions We remarks. answer be our prepared available during will the session following your

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our for behalf of We'll express thank Lainie On and take like your your to the colleagues for to team, entire Karl. an year. our our appreciation excellent management questions. shareholders, Operator? now I want our And to delivering Thanks, I'd to continued support. start

MKM [Operator Eric from comes Handler Partners. question Instructions] first with Our

Two questions.

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next comes Securities. Thornton question with Truist Our from Matthew

Maybe two, if I could.

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Lu Our with Barclays. next from Mario comes question

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from Our Creutz with Doug next comes question Cowen.

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questions. Two

whether turn bit clarify Or first AppLovin an little intending or technology cross That's advertising more you're clarification companies plan a just internal Could to for of So Unity. games Chartboost question. the third-party a tool? on network promotes advertising of it's into third-party on that you ad to ironSource, like my business that broker similar specifically. inventory third-party

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mobile the second with then regards the specifically And the question Okay. game and to Zynga assets. market is

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with Our next question Oppenheimer. comes from Martin Yang

Can resources support your your more of versus PC any rest is for or into in mobile future. development console first other maybe in the in have you facing My plan and part after integration? plan of Zynga, of talk investments terms headcount for Take-Two increase about you on or infrastructure question particularly the

the robust is we think that news now. have I good very a team

pursue of publishing. grow. And and we're a colleagues ambitious time, same the a continue very growth and We we business, have world. have development at expect program the around And to XX,XXX to we to the ability

the So we headcount an to significantly somewhat. will assuming have years, expect At assume soon. in expectations expectation increase in I will development grow and headcount our we very that don't to, we we we X significantly anytime we increase next the time, the same our have grow way

more there One any Is more details us give like there the may. I if not is is maybe in question, Take-Two? Or on you reasons Can shift pipeline macro conventional the to game play for broader of more market to factors decision more environment game, wait want consumer you in into the until becomes that feel the friendly you isn't games terms released? spending ready the that ready?

the a it. on speaking, shifts, moving marketing that's that is games Potentially, trend or would X, the on But not when it any ready, or really in something pipeline really we to simply game when later, in release is where development. week mean we that's based -- economic ready Yes. we depending a don't that's typically the the for which would based -- games hold we're release game is a We is going generally the shifting maybe the that market. overall move move windows. up. case. on But game -- I typically game to is have when is on extent that We game

Brian Fitzgerald from comes Wells question next Our with Fargo.

A couple of macro rifting quick ones. on that theme. Maybe

spend mobile consumer more came of that resilient business, from Strauss, of the seeing RCS. quick impact the type of then entertainment. and Does models the if follow-up, would be seems Live any has resilient recession overall at environment? would we've And hit per on mobile Tour we a free-to-play the in macro hour that? narrative low more But think you an the upon resilient a side. into time, of and How the noise accepted a than do your kind Tour long is the because it a PGA little around gaming odd of RCS It towards be model that is For digital question. advertising. shifted really mobile you time, a consumer, cost discretionary, same PC

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well. today report reports our from it competitors' from and our seen You've as

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with question Our Littunen Bernstein. Matti from comes next

on IDFA. question A

Now mobile. out you outperformance your on pointed

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question Eric comes Sheridan Goldman from Sachs. next Our with

beginning about on around deeper supply the console cycle how console overall this of And dynamic. interesting it's new year about the get big I'll of do console meant much what third the aligning of has picture cycle you your of coming the Maybe different for we users? Strauss, term year. you've been some your the and of longer ask content this this penetration gaming very end more a among thoughts into what one. at from Any chain adoption we're think until seen habits because because elements curve up

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is Mike Hickey the question next from Our Company. Benchmark with

on and on Two acquisition, for pretty questions the your Congrats me. exciting. quarter congrats

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from with Stifel. is Drew Our next question Crum

And any the something that And Strauss to COVID And in game? are is plan at has any or company's you development separately, for complete with Maybe debt cycle? that reduction guys, is pipeline around for it risk? Karl. what the specifically, a could time 'XX? changes elongated the takes Guys, way seeing put development then fiscal the

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Karnovsky David JPMorgan. with Our next question is from

following Zynga. up Just mobile advertising on at

mentioned were up I think you you year-over-year.

mobile the pressure, TBA time slated launch release? a because you just macro gains? wanted the how delay just platform the market just to to the the that that overall wondering Wars: full Is then is you see share? initial about is seeing of Star in the And to beyond advertising Given kind And with environment if could reconcile its speak game is listed as line? decision of that cross-platform for still Hunters I

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we grew advertising they decelerated last have versus industry the revenues quarter, trends. but year. has Our outperformed the from we -- growth notably And last believe the

making of this improve over mix and trend we're in network our to year optimizations the and expect pricing. the natural We seasonality course with

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from question is Andrew next Raymond Our Marok James. with

me, please. for Two

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received Any release its Rockstar to The ongoing the upcoming content since The for out properties continue content. was they recent been Games labels. supplying most come Theft Grand Online put XXXX. you. has in and updates well from about one Auto do announcements terrific Thank

cost. about tend So advertising to we great don't And here. a talk question them about

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question next Clay is MoffettNathanson. from Griffin Our with

on maybe in light Notwithstanding a the guess window? this seeing have you're we higher ASP just impact the guess in kind I'm you XK, any of preorder Championship aggressively I the of wondering with to head the back, in do the if some free-play mobile. mix the of material any bundled into Edition virtual softness currency of I more bit as of in question flexibility go window? preorder change

Yes.

change the philosophy know -- would package our specifically that I market anything I product. there's on don't in that how think we our

opportunity time. But to new you'll I situation. always optimize see we trying experimenting us a the I the practices pricing market-driven really don't see all new specific to models and think are try arising. But

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like to question-and-answer of back I'd call the the turn comments. session. reached the Zelnick over Strauss have end closing We to for

you proud company the We're thank performing. us. joining is to like just really all of how for We'd

and world. be Our tomorrow work. hall various a creative appreciation creatively. to the to you to combination their thanks our in financially, my colleagues with all Thank all. is dedicated our talking off culturally, town We'll I These results of strategically hard, want are and terrific around to reiterate And Zynga start to them meetings. all

conference. This concludes today's

for You at may thank and you we this lines disconnect your time, your participation.