Take-Two Interactive Software, Inc.

Greetings and welcome to the Take-Two Interactive first quarter fiscal year 2025 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 to you Nicole Shevins, SVP of Investor Relations and Corporate Communications. Thank you, Nicole. You may begin.

Good afternoon. Thank you for joining our conference call to discuss our results for the first quarter of fiscal year 2025 and to June 30, 2024. Today's call will be led by Strauss Delnick, 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 take2games.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 fiscal year 2025 is off to a solid start. Our first quarter net bookings of $1.2 billion were in line with our expectations, and our management team remains highly confident in our path forward. We're reiterating our net bookings outlook for the year. As we release our groundbreaking pipeline, we expect to achieve tremendous growth, including sequential increases in net bookings in fiscal 2026 and 2027. I'd like to thank our talented teams across our labels for their boundless passion, hard work, and dedication to our mission. Now, turning to our business highlights from the quarter. The Grand Theft Auto series exceeded our expectations as momentum continues to build ahead of the launch of Grand Theft Auto 6 in fall 2025. Unit sales for Grand Theft Auto 5 continue to grow, and to date, the title has sold in over 200 million units. Grand Theft Auto Online also surpassed our projections, led by its summer content pack, Bottom Dollar Bounties, which launched June 25th. The audience for Rockstar's premium membership service, GTA Plus, grew strong double digits over last year, with Rockstar Games offering its members an array of valuable benefits that range from enhancing the in-game experience to providing access to their classic titles, including the recent addition of L.A. Noire. We're pleased with the performance of Red Dead Redemption 2, which has sold in more than 65 million units to date. In addition, Red Dead Online continued to engage its audience during the period with new monthly bonuses and free outfits inspired by top content creators within the Red Dead community. NBA 2K24 delivered a solid quarter and to date has sold in close to 11 million units. Engagement remains strong with users playing more frequently and participating in more games compared to NBA 2K23 for the same period last year. The franchise continues to expand its audience through several innovative mobile experiences, including NBA 2K24 My Team, a free-to-play card-collecting experience that has been downloaded nearly 3 million times since its launch in February. Moreover, NBA 2K24 Arcade Edition continues to enjoy huge success on Apple Arcade and is consistently a top-two game on the service. WWE 2K24, which launched at the end of fiscal 2024, has continued to grow its audience and enhance its profitability. Our teams have driven meaningful engagement through the release of several content packs with more on the way. To date, players have logged 27 million hours of gameplay across more than 200 million matches, featuring a series-high roster of over 300 past and present superstars. On April 4th, 2K and Cat Daddy Games released NFL 2K Playmakers, a new free-to-play mobile title that allows fans to collect NFL player cards and assemble an exciting roster of offensive, defensive, and special teams. We're proud to add NFL 2K Playmakers to our ever-expanding mobile portfolio in partnership with the NFL and the NFL Players Association. On April 26th, 2K and Hangar 13 launched Top Spin 2K25, marking the return of our popular tennis franchise after a 13-year hiatus. The title was well-received by critics and fans alike, who praised its authentic tennis experience, deep personalization, and legendary venues. 2K is supporting Top Spin with a series of center court passes that feature iconic courts, brands, and tournaments. During the period, we added to the caliber of our world-class development teams with our acquisition of Gearbox Entertainment. We're thrilled to welcome Randy Pitchford and his studio to the Take-Two and 2K family. We've identified many potential growth opportunities for the Borderlands series and Gearbox's catalog. In addition, tomorrow marks the box office debut of the star-studded Borderlands feature film from Lionsgate, and we hope that audiences will enjoy experiencing the series' vibrant, character-driven world on the big screen. Zynga delivered another solid quarter, including phenomenal performance at peak. Match Factory is scaling quickly and has established itself as one of Zynga's largest contributors to netbookings. The title is responding well to our investment in user acquisition, reflected in netbookings growth of more than 50% over the last quarter. we believe that there are even more growth opportunities ahead as we add new features and updates. Toon Blast delivered strong year-over-year growth for the third consecutive quarter. As the title celebrates its seventh anniversary this month, we're pleased that it has become a top-ten grossing game in the U.S. Apple App Store this quarter and has achieved more than $2.5 billion in lifetime gross bookings. On June 4th, Zynga and Lucasfilm Games launched Star Wars Hunters, the label's first ever cross-platform title, which is available for free on Nintendo Switch and iOS and Android devices. Expanding the iconic Star Wars universe with new locations and characters, the competitive battle arena game received a tremendous amount of fanfare from the media and audiences around the globe. Players can look forward to additional content offerings coming soon. Our blended monetization efforts in Hypercasual are progressing well at Rollick, which cost 3.6 billion all-time downloads. Fan favorite titles ScrewJam and Twisted Tangle both performed well this quarter, becoming top 50 and top 100 grossing games, respectively, in 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 creative owned distribution channel. Looking ahead, Zynga has numerous titles in development and soft launch, including the latest installment in their popular racing franchise, CSR Racing 3. In closing, I believe that our talented creative teams and owned portfolio of iconic entertainment franchises are driving both the consistent performance of our company and our potential to achieve unprecedented levels of multi-year growth. As we focus on our strategic priorities and embody our core tenets of creativity, innovation, and efficiency, I'm confident that we'll set new benchmarks for our industry and deliver strong returns for our shareholders. I'll now turn the call over to Carl.