Take-Two Interactive Software Inc. (NASDAQ:TTWO) Q4 2019 Earnings Conference Call - Final Transcript

May 13, 2019 • 04:30 pm ET


Take-Two Interactive Software Inc. (NASDAQ:TTWO) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Take-Two Interactive Software Fourth Quarter Fiscal Year 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Hank Diamond, Senior Vice President of Investor Relations and Corporate Communications. Thank you, sir. You may begin.

Henry A. Diamond

Good afternoon. Welcome and thank you for joining Take-Two's conference call to discuss its results for the fourth quarter and fiscal year 2019 ended March 31st, 2019.

Today's call will be led by Strauss Zelnick, Take-Two's Chairman and Chief Executive Officer; Karl Slatoff, our President; and Lainie 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.

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 www.take2games.com.

And now, I'll turn the call over to Strauss.

Strauss Zelnick

Thanks, Hank. Good afternoon, and thank you for joining us today. Take-Two finished the stellar year with strong fourth quarter operating results, highlighted by the outperformance of Grand Theft Auto and NBA 2K19, and significant ongoing sales of our blockbuster hit, Red Dead Redemption 2.

For the full fiscal year, we generated record net bookings and adjusted operating cash flow, which exceeded our outlook at the start of the year, along with strong earnings growth, driven by the record-breaking launch of Red Dead Redemption 2, the outstanding performance of NBA 2K and better than expected results from Grand Theft Auto Online and Grand Theft Auto V. Our industry-leading basketball series continues to expand its audience and underscores an NBA 2K has been deep perennial favorite among both basketball and pop culture fans for more than a decade.

During the fourth quarter, net bookings growth from NBA 2K19 exceeded our expectations,