Take-Two Interactive Software, Inc.

Greetings and welcome to the Take-Two fourth quarter and fiscal year 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Nicole Shevins, Senior Vice President of Investor Relations and Corporate Communications. Thank you. You may begin.

Good afternoon. Thank you for joining our conference call to discuss our results for the fourth quarter and fiscal year 2024 ended March 31, 2024. Today's call will be led by Strauss Zelnick, Take-Two's Chairman and Chief Executive Officer, Carl Sladoff, our President, and Lainey Goldstein, our Chief Financial Officer. We will be available to answer your questions during the Q&A session following our prepared remarks. Before we begin, I'd like to remind everyone that statements made during this call that are not historical facts are considered forward-looking statements under federal securities laws. These forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to us. We have no obligation to update these forward-looking statements. Actual operating results may vary significantly from these forward-looking statements based on a variety of factors. These important factors are described in our filings with the SEC, including the company's most recent annual report on Form 10-K and quarterly report on Form 10-Q, including the risks summarized in the section entitled Risk Factors. I'd also like to note that unless otherwise stated, all numbers we will be discussing today are GAAP and all comparisons are year-over-year. Additional details regarding our actual results and outlook are contained in our press release, including the items that our management uses internally to adjust our GAAP financial results in order to evaluate our operating performance. Our press release also contains a reconciliation of any non-GAAP financial measure to the most comparable GAAP measure. In addition, we have posted to our website a slide deck that visually presents our results and financial outlook. Our press release and filings with the SEC may be obtained from our website at TakeTwoGames.com. And now I'll turn the call over to Strav.

Thanks, Nicole. Good afternoon, and thank you for joining us today. I'm pleased to report that we concluded fiscal 2024 with strength, including net bookings of $1.35 billion, which exceeded the high end of our guidance range. Contributing to our positive results was the outperformance of NBA 2K24, Zynga's in-app purchases led by Toon Blast and our newest hit, Match Factory, and the Red Dead Redemption and Grand Theft Auto series. During fiscal 2024, we generated net bookings of $5.33 billion, driven by our high-quality titles and our ability to engage consistently our player communities. With fiscal 2025 underway, our portfolio is gaining momentum, and we have many exciting releases planned for the year. We expect net bookings to be in the range of $5.55 to $5.65 billion, representing 5% year-over-year growth. Our outlook reflects a narrowing of Rockstar Games' previously established window of calendar 2025 to fall of calendar 2025 for Grand Theft Auto VI. We're highly confident that Rockstar Games will deliver an unparalleled entertainment experience, and our expectations for the commercial impact of the title continue to increase. As we release our groundbreaking pipeline, we expect to achieve tremendous growth, including sequential increases in net bookings in fiscal 2025, 2026, and 2027. We've been executing our substantial cost reduction program, which we now anticipate will result in over $165 million of annual cost savings from our current and future expenses. This will enable us to run our business more efficiently and achieve greater operating leverage as our large-scale titles come to market. Now, turning to our performance during the quarter. NBA 2K24, which remains the number one basketball simulation experience in our industry, surpassed our expectations as players responded to our promotions, in-game content strategy, and updates within seasons. To date, the title has sold in over 9 million units. Engagement remains high with nearly 2 million consumers playing daily. Our industry-leading NBA 2K brand also continued to expand its audience through several innovative mobile experiences, including NBA 2K24 My Team, the new free-to-download mobile experience that allows players to sync progress between console and mobile devices as they play their favorite My Team modes on the go, NBA 2K Mobile, and NBA 2K24 Arcade Edition, which is consistently in the top five on Apple Arcade. The Grand Theft Auto series delivered another fantastic quarter, partially driven by an array of free content updates for Grand Theft Auto Online, including new vehicles, drag races, holiday-themed items to celebrate Lunar New Year and Valentine's Day, new community series jobs, and more. Unit sales for Grand Theft Auto V exceeded our forecast, and to date, the title has sold in approximately 200 million units worldwide. We're thrilled that more than a decade after their initial releases, Grand Theft Auto 5 and Grand Theft Auto Online grew their audience size by an incredible 35% and 23%, respectively, for the full year. Grand Theft Auto 5 also reclaimed its top spot as the most watched video game across all platforms, according to StreamHatchet, thanks largely to the tremendous viewership from the series' thriving role-play community. Rockstar's premium subscription service, GTA Plus, also continues to grow, with membership for the quarter almost doubling over the same period in the prior year as Rockstar continues to add valuable benefits to players. Red Dead Redemption 2 also surpassed our expectations and is sold in nearly 64 million units worldwide. We continue to expand the audience for the series with Red Dead Redemption and Undead Nightmare recently added to the roster of games included within the GTA Plus library. Borderlands 3 outpaced our forecast and we're thrilled that Randy Pitchford and Gearbox Entertainment are slated to join officially 2K's renowned internal studios in the coming weeks. We've already identified many potential growth opportunities for the Borderlands series and Gearbox's catalog, which we plan to pursue once the studio is integrated into our organization. We're also excited to see growing buzz for the star-studded Borderlands feature film, which is planned for release by Lionsgate this summer. WWE 2K24 has been a resounding success and is the highest-rated sports simulation of 2024. The title is also the highest rated installment in the history of our popular wrestling franchise on Xbox, with an 83 average Metacritic score. Engagement has been exceptional, with players logging over 11 million hours across more than 110 million played matches. In addition, the four years of WrestleMania pack has the highest attach rate for a super deluxe DLC in the series history, with more than 25% of WWE 2K24 players owning it. 2K and Visual Concepts are continuing to support the title and will have additional packs launching throughout the fall. I'd like to thank our friends Nick Kahn and Ari Emanuel over at WWE, TKO, and WME for their continued support. Additionally, I'd like to express our immense gratitude to our team at Visual Concepts for their outstanding work on our WWE 2K and NBA 2K franchises, which are both important annual contributors for our company. Zynga delivered outstanding results for the period, led by robust in-app purchases. Match Factory is accelerating and proving to be a hit, already establishing itself as a top 20 grossing game in the U.S. Apple App Store and reaching millions of new users with its launch on the Google Play Store. We're pleased that new bold beats and other exciting features have propelled average daily play time to around 60 minutes per user. Toon Blast maintained its positive momentum, achieving nearly 20% growth of in-app purchases compared to the third quarter, driven by a new Dragons Treasure competition and many other features. We'd like to congratulate the team at Peak for their incredible performance. Top Troops launched several content updates, as well as a major cross-media collaboration with the popular influencer MrBeast. The team plans to release additional enhancements to core gameplay and progression systems to drive further growth. Momentum continues at Rollick with the studio crossing 3.5 billion all-time downloads and announcing a new partnership with Mattel to introduce a mass-market Barbie mobile game later this calendar year. Our blended monetization efforts in hypercasual are progressing well within Rollick, which has resulted in Twisted Tangle and Screwjam both becoming top 100 grossing games on the U.S. Apple App Store. Our direct-to-consumer business continues to grow, and our teams are working actively to add more titles each quarter to this highly accretive owned distribution channel. Looking ahead, Zynga has numerous titles in development and soft launch that we're eager to release worldwide this fiscal year, including Star Wars Hunters and Game of Thrones Legends. In closing, I'm highly confident in our business, led by our top creative talent, our industry-leading portfolio of owned intellectual property, our sound balance sheet, and our increasingly efficient infrastructure. Our teams are laser-focused on our core tenets of creativity, innovation, and efficiency, and as we deliver our groundbreaking pipeline over the next several years, we're poised also to deliver industry-leading growth and shareholder returns. I'll now turn the call over to Carl.