Take-Two Interactive Software, Inc.

Good afternoon, everyone. My name is Beau, and I will be your conference operator today. At this time, I would like to welcome everyone to the Take-Two Interactive second quarter fiscal year 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 followed by the number 1 on your telephone keypad. If you would like to withdraw your question, you may press star 2. Also, today's call is being recorded, and if you should need any assistance during the call today, please press star zero. Now at this time, I'll turn things over to Nicole Shevins, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead, ma'am.

Good afternoon. Thank you for joining our conference call to discuss our results for the second quarter of fiscal year 2025 and in September 30, 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 this 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 Strauss.

Thanks, Nicole. Good afternoon and thank you for joining us today. I'm pleased to report that we delivered strong second quarter results. Our net bookings of $1.47 billion were at the top end of our guidance range, driven by the continued success of the Grand Theft Auto and Borderlands franchises, and our operating results surpassed our plans, largely due to a shift in the timing of marketing expenses within the year. We're reiterating our fiscal 2025 net bookings guidance range of $5.55 to $5.65 billion, and we remain confident that we'll achieve sequential increases and record levels of net bookings in fiscal 2026 and 2027. Now, turning to our business highlights from the quarter. Sales of Grand Theft Auto V outperformed our expectations, and to date, the title has sold in more than 205 million units worldwide. Grant Theft Auto Online also exceeded our plans, driven by sustained engagement with the summer content pack bottom dollar bounties and an array of updates, including the new multi-stage assault on ATT16 mode and experience improvements, such as a new anti-cheat system for the PC version of Grant Theft Auto Online. Momentum also continued within GTA+, as Rockstar grew its membership by 35% over last year and added the classic title, Bully, to the library of available games. Red Dead Redemption 2 posted another fantastic quarter. The title has sold in more than 67 million units to date, and six years after its release still ranks in the top 10 for unit sales globally, according to GSD. Rockstar Games was pleased to expand its audience further with the successful launch of Red Dead Redemption and Undead Nightmare for PC on October 29th. On September 6th, 2K and Visual Concepts launched NBA 2K25, which scored among the highest ratings on new gen consoles in recent franchise history. Our teams continue to raise the bar for excellence with the addition of 9,000 new pro play animations that provide increased authenticity, an all-new dribble engine representing the biggest technological update in the series' 26-year history, and a more interactive and engaging experience in the city. To date, the title has sold in nearly 4.5 million units and achieved phenomenal recurrent consumer spending performance. Compared to NBA 2K24 for the same period last year, NBA 2K25 delivered meaningful double-digit growth in average revenue per user and 40% growth in average games per user. I'd like to congratulate 2K and Visual Concepts for another stellar launch in our industry-leading NBA franchise. Our catalog also outperformed, led by our immensely popular Borderlands franchise. Now that Gearbox has officially joined the 2K and Take-Two family, we're eager to capitalize on the many potential growth opportunities for Borderlands, Tiny Tina's Wonderlands, and other Gearbox titles. Zynga delivered another quarter of solid results. Match Factory is scaling rapidly and is on track to become Zynga's second largest title by the end of this year in terms of projected annual net bookings. The title grew approximately 16% over last quarter, driven by its engaging gameplay, including the recent Star Race Bowl beat and our strategic investments in user acquisition. Toon Blast is maintaining its fantastic path of growth, with net bookings increasing more than 50% over last year, as our teams deploy highly engaging new features, including new single-player and team-based events and social challenges. We're also achieving great results as we apply our learnings to other games in Zynga's portfolio, including Toy Blast. Our blended monetization efforts in Hypercasual are advancing well. In particular, ScrewJam remains a top 50 game in the U.S. App Lab store. We're encouraged by the net bookings and profitability milestones the title has reached, and we're optimistic about it going forward. Nordius released the highly anticipated 2025 edition of our popular soccer manager game, Top Eleven. Backed by a month-long marketing campaign, the release generated positive sentiment around the community, which helped solidify the largest in-app purchase spending per active user in the game's 14-year history. During the quarter, Zynga launched Game of Thrones Legends, and we remain excited about the label's future mobile launches, including CSR3 Streetcar Racing. We continue to expand our offerings within our highly accretive direct-to-consumer business. With our current success and new titles on the horizon, we're confident in the future outlook of our mobile business. In closing, we believe that Take-Two remains exceedingly well positioned for the balance of this fiscal year and for the long term. Our vision is clear, our talent is unparalleled, and we have one of the strongest portfolios of owned intellectual property in our industry. As we release our pipeline, including many of our industry's most highly anticipated sequels, we expect to deliver leading returns for our shareholders. I'll now turn the call over to Carl.