Take-Two Interactive Software (NASDAQ:TTWO) reported upbeat revenue for its first quarter and raised its guidance.
The New York-based company reported Monday that GAAP Net revenue grew 39% to $540.5 million, as compared to $388.0 million in last year’s fiscal first quarter. Recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content and in-game purchases) increased 31% and accounted for 58% of total GAAP net revenue.
The company attributes this growth to the sales of were NBA® 2K19, Grand Theft Auto® Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, the Borderlands franchise, Social Point’s mobile offerings, WWE® SuperCard and WWE 2K19, and Sid Meier’s Civilization® VI.
Digitally-delivered GAAP net revenue grew 36% to $427.8 million, as compared to $315.0 million in last year’s fiscal first quarter, and accounted for 79% of total GAAP net revenue.
GAAP net income was $46.3 million, or $0.41 per diluted share, as compared to $71.7 million, or $0.62 per diluted share, for the comparable period last year.
Said CEO Strauss Zelnick, "As a result of our better-than-expected first quarter operating results and increased forecast for the balance of the year, we are raising our outlook for fiscal 2020, which is anticipated to be another great year for our organization.
"We are exceedingly well positioned to capitalize on the positive trends in our industry, and to generate significant growth and margin expansion over the long-term."
Shares rocketed $9.82, or 8.5%, to $125.20
