Take-Two Interactive Software Inc (TTWO) 2023 Q4 法說會逐字稿

Greetings, and welcome to the Take-Two Q4 Fiscal Year 2023 Earnings Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Nicole Shevins, Senior Vice President of IR and Corporate Communications. Thank you, Ms. Shevins, you may begin.

您好，歡迎參加 2023 財年第四季度財報電話會議。此時，所有參與者都處於只聽模式。 （操作員說明）作為提醒，正在錄製此電話會議。現在我很高興向您介紹主持人 Nicole Shevins，她是 IR 和企業傳播高級副總裁。謝謝你，Shevins 女士，你可以開始了。

Good afternoon. Thank you for joining our conference call to discuss our results for the fourth quarter and fiscal year 2023 ended March 31, 2023. 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.

下午好。感謝您參加我們的電話會議，討論我們截至 2023 年 3 月 31 日的第四季度和 2023 財年的業績。今天的電話會議將由 Take-Two 董事長兼首席執行官 Strauss Zelnick 主持；我們的總裁 Karl Slatoff；和我們的首席財務官 Lainie Goldstein。在我們準備好的評論之後，我們將在問答環節回答您的問題。

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 our 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.

在我們開始之前，我想提醒大家，根據我們的聯邦證券法，本次電話會議期間做出的非歷史事實的陳述被視為前瞻性陳述。這些前瞻性陳述基於我們管理層的信念以及我們所做的假設和我們目前可獲得的信息。我們沒有義務更新這些前瞻性陳述。基於各種因素，實際經營結果可能與這些前瞻性陳述有很大差異。這些重要因素在我們提交給美國證券交易委員會的文件中有所描述，包括公司最近的 10-K 表格年度報告和 10-Q 表格季度報告，包括標題為“風險因素”的部分中總結的風險。

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 measures 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 t2games.com.

我還想指出，除非另有說明，否則我們今天要討論的所有數字都是公認會計原則，所有比較都是同比的。我們的新聞稿中包含有關我們實際結果和展望的更多詳細信息，包括我們的管理層在內部使用的項目來調整我們的 GAAP 財務結果以評估我們的經營業績。我們的新聞稿還包含任何非 GAAP 財務指標與最具可比性的 GAAP 指標的對賬。此外，我們還在我們的網站上發布了一張幻燈片，直觀地展示了我們的結果和財務前景。我們的新聞稿和向美國證券交易委員會提交的文件可從我們的網站 t2games.com 獲取。

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

現在我會把電話轉給施特勞斯。

Thanks, Nicole. Good afternoon, and thank you for joining us today. I'm pleased to report that we concluded fiscal 2023 by delivering strong fourth quarter results, including net bookings of $1.4 billion, which were above the high end of our expectations. On behalf of our management team, I'd like to thank all of our colleagues around the world for helping us achieve these results and supporting our vision to become a more scaled, diverse industry-leading organization. Especially as we navigate in oftentimes volatile and uncertain economic landscape.

謝謝，妮可。下午好，感謝您今天加入我們。我很高興地報告，我們以強勁的第四季度業績結束了 2023 財年，其中包括 14 億美元的淨預訂量，這超出了我們預期的上限。我謹代表我們的管理團隊，感謝世界各地的所有同事幫助我們取得這些成果，並支持我們成為規模更大、多元化的行業領先組織的願景。尤其是當我們在時常動盪和不確定的經濟環境中航行時。

With fiscal 2024 underway, our initial expectation is to deliver full year net bookings in the range of $5.45 billion to $5.55 billion. We're assuming a continuation of the current challenging consumer backdrop within our forecast. Additionally, the development timelines of some of our titles lengthened especially as we strive to redefine the creative standards of excellence of our industry, which affect our release slate for the year. Looking ahead, fiscal 2025 is a highly anticipated year for our company.

隨著 2024 財年的到來，我們最初的預期是全年淨預訂量在 54.5 億美元至 55.5 億美元之間。在我們的預測中，我們假設當前具有挑戰性的消費者背景將繼續存在。此外，我們的一些遊戲的開發時間延長了，尤其是在我們努力重新定義我們行業卓越的創意標準時，這影響了我們今年的發行計劃。展望未來，2025 財年對我們公司來說是備受期待的一年。

For the last several years, we've been preparing our business to release an incredibly robust pipeline of projects that we believe will take our company to even greater levels of success. In fiscal 2025, we expect to enter this new era by launching several groundbreaking titles that we believe will set new standards in our industry and enable us to achieve over $8 billion in net bookings and over $1 billion in adjusted unrestricted operating cash flow. We expect to sustain this momentum by delivering even higher levels of operating results in fiscal 2026 and beyond.

在過去的幾年裡，我們一直在為我們的業務做準備，以發布一個非常強大的項目管道，我們相信這些項目將使我們的公司取得更大的成功。在 2025 財年，我們希望通過推出幾款開創性的遊戲來進入這個新時代，我們相信這些遊戲將在我們的行業樹立新標準，並使我們能夠實現超過 80 億美元的淨預訂量和超過 10 億美元的調整後無限制運營現金流。我們希望通過在 2026 財年及以後實現更高水平的經營業績來保持這一勢頭。

I'd now like to discuss several key highlights from fiscal 2023, which was a milestone year in the 30-year history of our organization. We delivered net bookings of $5.3 billion, which reflects both the transformative evolution of our company through our combination with Zynga and our ability to create market and distribute the highest quality entertainment experiences. We made excellent progress integrating Zynga. The combination has been highly accretive to our business as we've embarked on new revenue-driven opportunities, exceeded our anticipated cost synergies for year 1 and enhance further our mobile platform through select acquisitions. As we approach the 1-year anniversary of our combination, we're immensely proud of the trajectory of our integration and the strength of our shared culture and values.

我現在想討論 2023 財年的幾個重要亮點，這是我們組織 30 年曆史上具有里程碑意義的一年。我們交付了 53 億美元的淨預訂量，這既反映了我們公司通過與 Zynga 的合併實現的變革性發展，也反映了我們創造市場和分發最高質量娛樂體驗的能力。我們在整合 Zynga 方面取得了出色的進展。這一合併極大地促進了我們的業務增長，因為我們已經開始了新的收入驅動機會，超過了我們第一年的預期成本協同效應，並通過精選收購進一步增強了我們的移動平台。在我們即將迎來合併一周年之際，我們為我們的整合軌跡以及我們共同的文化和價值觀的力量感到無比自豪。

Our headcount now stands at nearly 12,000 talented individuals, including approximately 9,000 developers in our studios throughout the world, which positions us exceedingly well to reach the full potential of our pipeline. And we've maintained our focus on our core tenet of efficiency. We've taken a rigorous approach to our cost reduction program announced in February, which we believe will surpass meaningfully the $50 million in annual savings that we originally anticipated. Our fourth quarter outperformance was led by strong results from Grand Theft Auto V and Grand Theft Online, Red Dead Redemption 2 and Zynga's mobile portfolio. Broadly speaking, the macroeconomic environment remained relatively consistent with what we experienced throughout the third quarter holiday season. While consumers continue to exercise restraint with their purchasing behaviors they prioritize blockbuster franchises and titles that offered great value.

我們現在擁有近 12,000 名才華橫溢的人才，其中包括我們遍布全球的工作室中的大約 9,000 名開發人員，這使我們能夠充分發揮我們管道的全部潛力。我們一直專注於提高效率的核心原則。我們對 2 月份宣布的成本削減計劃採取了嚴格的方法，我們相信這將大大超過我們最初預期的每年 5000 萬美元的節省。 Grand Theft Auto V 和 Grand Theft Online、Red Dead Redemption 2 以及 Zynga 的移動產品組合的強勁業績引領了我們第四季度的出色表現。從廣義上講，宏觀經濟環境與我們在整個第三季度假期期間所經歷的情況保持相對一致。雖然消費者繼續限制他們的購買行為，但他們會優先考慮提供巨大價值的大片特許經營權和頭銜。

As a result, our vast catalog of proven high-quality titles achieved strong results. As part of our ongoing portfolio management measures, we made the decision to cancel several unannounced titles in development, which we believe will enable us to tighten our focus and reallocate resources to projects for which our creative teams have higher levels of conviction expectations of success. Excluding the associated write-offs, our fourth quarter and full year management earnings results were above the high end of our guidance. We manage our pipeline actively, sometimes making difficult decisions to ensure that we're meeting our creative standards and achieving financial returns that are consistent with the goals of our company. We believe that an evolving robust pipeline is an essential part of our long-term strategy to expand, enhance and diversify our portfolio to grow our player base and to launch a multitude of new hit franchises across an array of platforms and business models.

因此，我們龐大的經過驗證的高質量圖書目錄取得了優異的成績。作為我們正在進行的投資組合管理措施的一部分，我們決定取消幾個未宣布的開發項目，我們相信這將使我們能夠加強我們的重點並將資源重新分配給我們的創意團隊對成功有更高信念期望的項目。不包括相關的註銷，我們第四季度和全年的管理收益結果高於我們指導的高端。我們積極管理我們的管道，有時會做出艱難的決定，以確保我們達到我們的創意標準並實現與我們公司目標一致的財務回報。我們相信，不斷發展的強大管道是我們長期戰略的重要組成部分，該戰略旨在擴大、增強和多樣化我們的產品組合，以擴大我們的玩家基礎，並在一系列平台和商業模式中推出大量新的熱門特許經營權。

Turning to the performance of our titles for the period. Grand Theft Auto V exceeded our expectations, and to date, the title has sold in more than 180 million units worldwide. As hardware supply constraints receded, Grand Theft Auto V and Grand Theft Auto Online adoption on the latest generation of platforms continue to grow. For the first 3 weeks of Grand Theft Auto Online's Holiday update, PlayStation 5 and Xbox Series X and S consoles grew to 14% of its audience penetration and 25% of its revenue penetration, up from 11% and 20%, respectively, versus last summer's content update for the comparable period.

談談我們的遊戲在這一時期的表現。 Grand Theft Auto V 超出了我們的預期，迄今為止，該遊戲在全球的銷量已超過 1.8 億台。隨著硬件供應限制的消退，Grand Theft Auto V 和 Grand Theft Auto Online 在最新一代平台上的採用率繼續增長。在 Grand Theft Auto Online 假日更新的前 3 週，PlayStation 5 和 Xbox Series X 和 S 遊戲機的觀眾滲透率和收入滲透率分別從去年的 11% 和 20% 增長到 14% 和 25%夏季的同期內容更新。

During the period, Rockstar Games continue to support the passionate global Grand Theft Auto online community with an array of new content offerings, including the last dose and Epic Finale at the Los Santos Drug Wars update as well as the [Rollic Gun van Taxi missions], a new 50 car garage, new vehicles, clothes, weapons, modes and much more. Los Santos Drug Wars introduced a phased approach to delivering high-value content, creating a much longer tail of sustained engagement in net bookings than we've seen with previous content updates. Additionally, GTA plus Rockstar's premium membership program continues to perform well, driven by a positive response to monthly events since the launch of Los Santos Drug Wars.

在此期間，Rockstar Games 繼續支持熱情的全球俠盜獵車手在線社區，提供一系列新內容，包括洛聖都毒品戰爭更新中的最後一劑和史詩結局，以及 [Rollic Gun van Taxi 任務] 、一個新的 50 輛車的車庫、新的車輛、衣服、武器、模式等等。 Los Santos Drug Wars 引入了一種分階段的方法來提供高價值內容，與我們在之前的內容更新中看到的相比，在淨預訂方面創造了更長的持續參與尾巴。此外，GTA plus Rockstar 的高級會員計劃繼續表現良好，這得益於自 Los Santos Drug Wars 推出以來對每月活動的積極響應。

Red Dead Redemption 2 outperformed our plans and to date, the title has sold in more than 53 million units worldwide. We're also pleased with the continued engagement of players we've Red Dead Online as demonstrated by its 10% year-on-year increase in new online players on all platforms. NBA 2K23 continues to grow its audience with the title selling in over 11 million units to date, a record for the series at this stage and achieving its highest ever virtual currency sales. In addition, engagement with NBA 2K23 remained incredibly strong, with approximately 2.3 million daily active users, including growth in the city, my career and my team users. NBA 2K23 arcade addition continues to bring the best basketball experience to mobile devices and has maintained its #1 position on Apple Arcade.

Red Dead Redemption 2 的表現超出了我們的計劃，迄今為止，該遊戲在全球的銷量已超過 5300 萬套。我們也對 Red Dead 在線模式玩家的持續參與感到高興，所有平台上的新在線玩家同比增長 10% 就證明了這一點。 《NBA 2K23》的觀眾數量持續增長，迄今為止該遊戲的銷量已超過 1100 萬套，創下了該系列現階段的最高銷量記錄，並創下了有史以來最高的虛擬貨幣銷量。此外，與 NBA 2K23 的互動仍然非常強烈，每天有大約 230 萬活躍用戶，包括城市、我的職業和我的團隊用戶的增長。 NBA 2K23 街機新增功能繼續為移動設備帶來最佳籃球體驗，並一直保持其在 Apple Arcade 上的第一名。

Building upon visual concepts resounding success and reinvigorating our WWE franchise last year, WWE 2K23 enjoys the highest metacritic review score average in the history of the series, engagement with the game has been outstanding, players logging nearly 8 million hours of gameplay and facing off of more than 100 million matches. Tour 2K is supporting the title with a series of add-on content that can be purchased individually or as part of the season pass. We value deeply our relationship with the WWE and look forward to continuing and expanding upon our successful partnership in the years to come. Private Division and Intercept Games launched Kerbal Space Program 2 in early access for PC on Steam, Epic Games Store and other storefronts. Our teams are encouraged by the incoming player feedback and we've already implemented several updates with more on the way as development continues.

基於視覺概念大獲成功並在去年重振了我們的 WWE 特許經營權，WWE 2K23 享有該系列歷史上最高的元評論平均評分，遊戲參與度非常高，玩家玩了將近 800 萬小時，並面對超過 1 億場比賽。 Tour 2K 通過一系列可單獨購買或作為季票一部分的附加內容來支持該遊戲。我們非常重視與 WWE 的關係，並期待在未來幾年繼續並擴大我們成功的合作夥伴關係。 Private Division 和 Intercept Games 在 Steam、Epic Games Store 和其他店面推出了 Kerbal Space Program 2 PC 搶先體驗版。我們的團隊對即將到來的玩家反饋感到鼓舞，我們已經實施了多項更新，並且隨著開發的繼續進行更多更新。

Last week, Private Division announced a partnership with Game Freak to publish their upcoming new action-adventure IP, which is one of Private Division's most ambitious projects to date. In addition, Private Division and the Roll7 Studio were recently honored with 2 prestigious industry awards, the BAFTA for Best British game for Rollerdrome and best sports game at DICE for OlliOlli World.

上週，Private Division 宣布與 Game Freak 合作發布他們即將推出的新動作冒險 IP，這是 Private Division 迄今為止最雄心勃勃的項目之一。此外，Private Division 和 Roll7 Studio 最近獲得了 2 個著名的行業獎項，即 BAFTA 最佳英國遊戲 Rollerdrome 和 DICE 最佳體育遊戲 OlliOlli World。

Zynga's mobile business had a strong finish to the year in app purchases were above our expectations. Momentum has continued and we were pleased to experience strong demand over the Easter holiday. Efforts to increase our advertising business are tracking well with ad revenue growing quarter-over-quarter and accounting for approximately 27% of Zynga's net bookings. Our teams are successfully increasing advertising supply in our games, investing in optimization and implementing new ad products, which are helping us monetize a much broader cohort of users.

Zynga 的移動業務在今年的應用程序購買方面表現出色，超出了我們的預期。勢頭仍在繼續，我們很高興在復活節假期期間體驗到強勁的需求。增加廣告業務的努力進展順利，廣告收入環比增長，約佔 Zynga 淨預訂量的 27%。我們的團隊成功地增加了我們遊戲中的廣告供應，投資於優化和實施新的廣告產品，這有助於我們從更廣泛的用戶群中獲利。

Our direct-to-consumer efforts are tracking well with numerous titles currently in our platforms and plants for nearly all mobile games across our labels to leverage our highly profitable proprietary distribution channel over the next few years. A few highlights of Zynga's offerings during the period include a Empires & Puzzles, Zynga's highest grossing title drove engagement through its new in-game event, Season Of Love. Zynga's social casino portfolio had its best quarter in nearly 2 years, driven by record performance from Game of Thrones Slots Casino and strong overall results from Zynga Poker, Hit It Rich! and Wizard of Oz Slots. Top Eleven had a robust quarter and launched its proven ground England mini game update in February, which challenged players to recreate the greatest moments in the English football history.

我們直接面向消費者的努力與目前在我們平台和工廠中的眾多遊戲密切相關，適用於我們標籤中幾乎所有的手機遊戲，以在未來幾年利用我們高利潤的專有分銷渠道。在此期間，Zynga 產品的一些亮點包括帝國與謎題，Zynga 最暢銷的遊戲通過其新的遊戲內活動“愛的季節”推動了參與。 Zynga 的社交賭場產品組合創下近 2 年來最好的季度業績，這得益於《權力的遊戲》老虎機賭場創紀錄的業績以及 Zynga Poker、Hit It Rich 的強勁整體業績！和綠野仙踪插槽的嚮導。 Top Eleven 有一個強勁的季度，並於 2 月推出了久經考驗的英格蘭地面小遊戲更新，挑戰玩家重現英格蘭足球歷史上最偉大的時刻。

The new rate pass from CSR Racing 2 continue to drive player engagement, retention and monetization with innovative new profile manners for players to collect. We remain quite pleased with our hyper casual mobile business. Popcore achieved strong results during its first full quarter under our ownership.

CSR Racing 2 的新利率通行證繼續推動玩家參與、保留和貨幣化，並以創新的新個人資料方式供玩家收集。我們對我們的超休閒移動業務仍然非常滿意。 Popcore 在我們擁有的第一個完整季度取得了強勁的業績。

Additionally, Rollic has increased its profitability and the studio celebrated several milestones during the period, including the first anniversary of title fill The Fridge as social media inspired Pressure Washing Run, reaching the #1 most downloaded spot in Apple's U.S. App Store.

此外，Rollic 的盈利能力有所提高，工作室在此期間慶祝了幾個里程碑，包括作為社交媒體啟發 Pressure Washing Run 的標題 fill The Fridge 一周年，在 Apple 美國 App Store 中排名第一。

In closing, as we continue to pursue our mission to be the most creative, the most innovative and the most efficient entertainment company in the world, we do so incredibly well positioned with a broader portfolio of owned intellectual property, a deeper pool of the industry's top creative talent, and the sound infrastructure to capitalize on the vast opportunities on the horizon. As we execute on our strategy, we believe that we can increase meaningfully our scale and prominence within the industry, grow margins and achieved record-breaking operating results for fiscal 2025 and beyond.

最後，隨著我們繼續追求成為世界上最具創造力、最具創新性和最高效的娛樂公司的使命，我們在這方面處於令人難以置信的有利地位，擁有更廣泛的自有知識產權組合，更深入的行業資源庫頂尖的創意人才，以及完善的基礎設施，以利用地平線上的巨大機遇。在執行我們的戰略時，我們相信我們可以顯著增加我們在行業內的規模和知名度，增加利潤率並在 2025 財年及以後實現創紀錄的經營業績。

I'll now turn the call over.

我現在把電話轉過來。

Thanks, Strauss. I'd like to thank our colleagues around the world for delivering another momentous year for Take-Two. Our integration with Zynga has gone incredibly well, and we continue to release many of the industry's highest quality, most engaging entertainment experiences, thanks to the incredible passion and talent of our teams. We are extremely excited about our release pipeline, which includes approximately 52 titles through fiscal 2026. Our revised plan reflects several title cancellations as well as the reclassification of our mobile games to include only those titles currently in our plans for worldwide launch. For fiscal 2024, our pipeline includes 16 planned releases. We expect to deliver 3 immersive core offerings. This includes NBA 2K24 and WWE 2K24, our genre defining sports titles developed by Visual Concepts.

謝謝，施特勞斯。我要感謝世界各地的同事為 Take-Two 帶來又一個重要的一年。我們與 Zynga 的整合進展得非常順利，並且由於我們團隊令人難以置信的熱情和才華，我們將繼續發布許多業界最高品質、最引人入勝的娛樂體驗。我們對我們的發布管道感到非常興奮，其中包括到 2026 財年的大約 52 款遊戲。我們修訂後的計劃反映了一些遊戲的取消以及我們的手機遊戲的重新分類，以僅包括我們目前在全球發布計劃中的那些遊戲。對於 2024 財年，我們的管道包括 16 個計劃發布。我們期望提供 3 個沉浸式核心產品。這包括 NBA 2K24 和 WWE 2K24，這是我們定義由 Visual Concepts 開發的體育遊戲類型。

Additionally, we expect to release an eagerly anticipated new IP from one of our premier studios later this fiscal year. We plan to release 2 mid-core arcade titles, which includes LEGO 2K Drive, the ultimate driving adventure game from 2K and Visual Concepts. LEGO 2K Drive brings the iconic LEGO Play experience into a vast open world where players of all ages can go any vehicle, drive anywhere and become a LEGO racing legend. LEGO 2K Drive is the first release in a multi-title partnership between 2K and the LEGO Group. We are confident that 2K's proven expertise in creating high-quality and engaging interactive entertainment properties combined with the LEGO Group's unprecedented cultural reach, will evolve the iconic LEGO games experience that fans love in exciting new ways.

此外，我們預計將在本財年晚些時候從我們的一家頂級工作室發布一個備受期待的新 IP。我們計劃發布 2 款中核街機遊戲，其中包括來自 2K 和 Visual Concepts 的終極駕駛冒險遊戲 LEGO 2K Drive。 LEGO 2K Drive 將標誌性的 LEGO Play 體驗帶入廣闊的開放世界，各個年齡段的玩家都可以乘坐任何車輛，在任何地方駕駛並成為 LEGO 賽車傳奇。 LEGO 2K Drive 是 2K 和 LEGO Group 之間多標題合作夥伴關係的第一個版本。我們相信，2K 在創造高質量和引人入勝的互動娛樂資產方面久經考驗的專業知識與樂高集團前所未有的文化影響力相結合，將以令人興奮的新方式改進粉絲喜愛的標誌性樂高遊戲體驗。

We also plan to launch 2 new iterations of previously released titles and 3 independent titles, including Private Division's planned May 23 release of After Us from Piccolo Studios. Players of After Us will navigate stunning environments in a surrealistic world to salvage the souls of extinct animals and restore life on Earth. And lastly, we expect to release 6 mobile titles during the year, including Zynga's Star Wars Hunters, which offers players the opportunity to join the greatest hunters from across the Star Wars Galaxy. Players will engage in thrilling third-person combat in a range of competitive game modes across battlegrounds steady both the iconic worlds of Star Wars.

我們還計劃推出 2 個先前發布的遊戲的新版本和 3 個獨立遊戲，包括 Private Division 計劃於 5 月 23 日從 Piccolo Studios 發布的 After Us。 After Us 的玩家將在超現實主義世界中穿越令人驚嘆的環境，以拯救滅絕動物的靈魂並恢復地球上的生命。最後，我們預計年內將發布 6 款手機遊戲，包括 Zynga 的星球大戰獵人，玩家有機會加入星戰銀河系最偉大的獵人行列。玩家將在 Star Wars 的標誌性世界中的一系列競爭性遊戲模式中參與激動人心的第三人稱戰鬥。

Throughout the year, our hypercasual studios will release the steady cadence of mobile titles, focusing on games that have the potential for enhanced retention rates and a mix of in-app purchases and advertising to drive higher modernization and profitability. Our labels will also continue to provide new content and experiences that drive engagement and recurrent consumer spending across many of our hit franchises, including Grand Theft Auto Online, Red Dead Online, WWE 2K, LEGO 2K Drive, PGA Tour 2K and throughout Zynga's mobile portfolio.

全年，我們的超休閒遊戲工作室將發布穩定的移動遊戲節奏，專注於具有提高留存率潛力的遊戲，以及應用內購買和廣告的組合，以推動更高的現代化和盈利能力。我們的唱片公司還將繼續提供新的內容和體驗，推動我們許多熱門遊戲的參與度和經常性消費者支出，包括俠盜獵車手在線 (Grand Theft Auto Online)、荒野大鏢客在線 (Red Dead Online)、WWE 2K、LEGO 2K Drive、PGA Tour 2K 以及整個 Zynga 的移動產品組合.

Looking ahead, we currently expect to deliver 36 titles throughout fiscal 2025 and 2026. As always, these plants are a snapshot of our current development pipeline. It is likely that some of these titles will not be developed through completion, that launch timing may change and that we will also add new titles to our slate. Our release slate for fiscal 2025 and 2026 includes 14 immersive core releases, 6 of which are sports simulation games, 2 mid-core games, one of which will be sports-oriented, 4 new iterations of previously released titles, 4 independent titles from Private Division, 2 of which include our previously announced partnerships with Weta Workshop and Game Freak and 12 mobile games.

展望未來，我們目前預計在整個 2025 財年和 2026 財年交付 36 款遊戲。一如既往，這些工廠是我們當前開發管道的縮影。其中一些遊戲很可能不會通過完成開發，發佈時間可能會改變，我們也會在我們的名單中添加新遊戲。我們 2025 和 2026 財年的發行計劃包括 14 款沉浸式核心遊戲，其中 6 款是運動模擬遊戲，2 款中核遊戲，其中一款以運動為導向，4 款之前發布的遊戲的新迭代，4 款來自 Private 的獨立遊戲Division，其中 2 個包括我們之前宣布的與 Weta Workshop 和 Game Freak 的合作夥伴關係以及 12 款手機遊戲。

In addition to our full game releases, we will continue to offer post-launch content for nearly all of our titles, including virtual currency, DLC packs and season passes. Given the strength of our upcoming release schedule and the high degree of visibility we have into our pipeline, we believe that we'll achieve the record levels of results that Strauss mentioned. Including over $8 billion in net bookings and over $1 billion in adjusted unrestricted operating cash flow in fiscal 2025 with further growth in fiscal 2026 and beyond. As we approach the significant inflection point in our business, we believe our expanding scale and margins will generate industry-leading returns for our shareholders.

除了我們的完整遊戲版本外，我們還將繼續為幾乎所有遊戲提供發布後內容，包括虛擬貨幣、DLC 包和季票。鑑於我們即將推出的發布計劃的強度以及我們對管道的高度可見性，我們相信我們將達到 Strauss 提到的創紀錄水平的結果。包括 2025 財年超過 80 億美元的淨預訂量和超過 10 億美元的調整後無限制運營現金流，以及 2026 財年及以後的進一步增長。隨著我們接近業務的重大轉折點，我們相信我們不斷擴大的規模和利潤率將為我們的股東帶來行業領先的回報。

I'll now turn the call over to Lainie.

我現在將電話轉給 Lainie。

Thanks, Karl, and good afternoon, everyone. Today, I'll discuss the key highlights from our fourth quarter and fiscal 2023 before reviewing our financial outlook for the full year and first quarter of fiscal 2024. Please note that our results include our combination with Zynga, which affects the comparability of our results relative to last year. Additional details regarding our actual results and outlook are contained in our press release. I'm so proud of our team for their strong execution and unwavering focus throughout the year. We made fantastic progress on our integration with Zynga delivered incredible high-quality content and announced several exciting new games from our pipeline.

謝謝，卡爾，大家下午好。今天，在回顧我們全年和 2024 財年第一季度的財務展望之前，我將討論我們第四季度和 2023 財年的主要亮點。請注意，我們的業績包括我們與 Zynga 的合併，這會影響我們業績的可比性相對於去年。我們的新聞稿中包含有關我們實際結果和展望的更多詳細信息。我為我們的團隊感到自豪，因為他們全年都具有強大的執行力和堅定不移的專注力。我們在與 Zynga 的整合方面取得了驚人的進展，提供了令人難以置信的高質量內容，並宣布了我們管道中的幾款令人興奮的新遊戲。

Efficiency was also a major area of focus. We announced our cost reduction program in February, and as part of our ongoing portfolio management process, we canceled several titles that we anticipated would not meet our internal hurdle rates. We are confident that all these steps will help grow our scale, enhance our long-term margin structure and ultimately deliver sustainable returns for our stakeholders.

效率也是一個主要關注領域。我們在 2 月份宣布了我們的成本削減計劃，並且作為我們正在進行的投資組合管理流程的一部分，我們取消了幾款我們預計不會達到我們內部最低標準的遊戲。我們相信，所有這些步驟將有助於擴大我們的規模，增強我們的長期利潤率結構，並最終為我們的利益相關者帶來可持續的回報。

As Strauss mentioned, we finished fiscal 2023 with momentum and delivered fourth quarter net bookings of $1.39 billion, which was above our guidance range of $1.31 billion to $1.36 billion. This reflected better-than-expected results from Grand Theft Auto V and Grand Theft Auto Online, Red Dead Redemption 2 and Zynga's mobile portfolio. During the period, recurring consumer spending growth 115%, which was above our outlook of 105%. Growth and accounted for 78% of net bookings. The outperformance was primarily driven by Zynga and Grand Theft Auto Online. Digitally delivered net bookings increased 76%, above our guidance of 70% growth and accounted for 97% of the total.

正如 Strauss 所提到的，我們以勢頭結束了 2023 財年，第四季度淨預訂量為 13.9 億美元，高於我們 13.1 億美元至 13.6 億美元的指導範圍。這反映出 Grand Theft Auto V 和 Grand Theft Auto Online、Red Dead Redemption 2 以及 Zynga 的移動產品組合的業績好於預期。在此期間，經常性消費者支出增長 115%，高於我們 105% 的預期。增長並占淨預訂量的 78%。出色的表現主要是由 Zynga 和俠盜獵車手 Online 推動的。數字交付的淨預訂量增長了 76%，高於我們 70% 的增長預期，佔總數的 97%。

During the quarter, 78% of console game sales were delivered digitally, up from 75% last year. GAAP net revenue increased 56% to $1.45 billion, and cost of revenue increased 207% to $1.22 billion which included impairment charges of $465 million related to intangible assets acquired from Zynga, reflecting forecast changes for a few titles and $54 million relating to capitalized software and development costs for unreleased and canceled console and PC title, a lot of which was included in our management results. Operating expenses increased by 130% to $926 million, which primarily reflected the addition of Zynga, which is partially offset by lower marketing expenses. And GAAP net loss was $610 million or $3.62 per share, which includes $302 million of amortization of acquired intangibles and $45 million of business acquisition costs. Excluding the $54 million impairment charge, our management earnings would have been above the high end of our guidance range.

本季度，78% 的主機遊戲銷售額是通過數字方式交付的，高於去年的 75%。 GAAP 淨收入增長 56% 至 14.5 億美元，收入成本增長 207% 至 12.2 億美元，其中包括與從 Zynga 收購的無形資產相關的 4.65 億美元減值費用，反映了一些遊戲的預測變化以及與資本化軟件和相關的 5400 萬美元未發布和取消的控制台和 PC 標題的開發成本，其中很多包含在我們的管理結果中。運營費用增長 130% 至 9.26 億美元，這主要反映了 Zynga 的加入，這部分被較低的營銷費用所抵消。 GAAP 淨虧損為 6.1 億美元或每股 3.62 美元，其中包括 3.02 億美元的收購無形資產攤銷和 4500 萬美元的業務收購成本。排除 5400 萬美元的減值費用，我們的管理收益將高於我們指導範圍的高端。

Turning to our fiscal 2023 results. Total net bookings were $5.28 billion, which was above our guidance of $5.2 billion to $5.25 billion. While the challenging macroeconomic backdrop affected certain components of our portfolio, we experienced favorable performance within our catalog of industry-leading intellectual properties and Zynga had a strong finish to the year. Recurrent consumer spending increased 88%, which was slightly above our outlook of 85% growth and accounted for 78% of net bookings. Digitally delivered net bookings increased 63%, which was also above our guidance of 60% growth and accounted for 95% of the total. And during the year, 74% of our console game shelf were delivered digitally, up from 68% last year. Non-GAAP adjusted unrestricted operating cash flow was $56 million as compared to our outlook of over $400 million. During fiscal 2023, we spent $204 million on capital expenditures.

轉向我們 2023 財年的業績。淨預訂總額為 52.8 億美元，高於我們 52 億美元至 52.5 億美元的指導。雖然充滿挑戰的宏觀經濟背景影響了我們投資組合的某些組成部分，但我們在行業領先的知識產權目錄中表現良好，Zynga 在這一年取得了強勁的成績。經常性消費支出增長 88%，略高於我們 85% 的增長預期，占淨預訂量的 78%。數字交付的淨預訂量增長了 63%，這也高於我們 60% 的增長預期，佔總數的 95%。在這一年中，我們 74% 的主機遊戲貨架以數字方式交付，高於去年的 68%。非美國通用會計準則調整後的無限制經營現金流為 5600 萬美元，而我們的預期為超過 4 億美元。在 2023 財年，我們在資本支出上花費了 2.04 億美元。

At fiscal year end, we had cash and short-term investments of approximately $1 billion and debt of $3.1 billion. GAAP net revenue grew 53% to $5.35 billion in cost of revenue income 100% to $3.1 billion, which included impairment charges of $465 million related to intangible assets acquired from Zynga and $79 million related to capitalized software and development costs for unreleased and canceled titles, the latter of which was included in our management results.

截至財年末，我們擁有約 10 億美元的現金和短期投資以及 31 億美元的債務。 GAAP 淨收入增長 53% 至 53.5 億美元，收入成本收入增長 100% 至 31 億美元，其中包括與從 Zynga 收購的無形資產相關的 4.65 億美元減值費用以及與未發行和取消遊戲的資本化軟件和開發成本相關的 7900 萬美元減值費用，後者包含在我們的管理結果中。

Operating expenses increased by 131% to $3.45 billion, which primarily reflected the addition of Zynga as well as higher personnel, stock compensation and IT expenses. And GAAP net loss was $1.12 billion or $7.03 per share, which includes $1.04 billion of amortization of acquired intangibles and $270 million of business acquisition costs. Today, we provided our initial outlook for fiscal 2024. We project net bookings to range from $5.45 billion to $5.55 billion. The largest contributors to net bookings are expected to be NBA 2K, and Grand Theft Auto Online and Grand Theft Auto V our hyper cash flow mobile portfolio, Empires & Puzzles, Toon Blast, Words With Friends, Merge Dragons, Red Dead Redemption 2 and Red Dead Online and Zynga Poker.

運營支出增長 131% 至 34.5 億美元，這主要反映了 Zynga 的加入以及更高的人員、股票薪酬和 IT 支出。 GAAP 淨虧損為 11.2 億美元或每股 7.03 美元，其中包括 10.4 億美元的收購無形資產攤銷和 2.7 億美元的業務收購成本。今天，我們提供了 2024 財年的初步展望。我們預計淨預訂量在 54.5 億美元至 55.5 億美元之間。預計淨預訂量的最大貢獻者是 NBA 2K、俠盜獵車手在線和俠盜獵車手 V 我們的超現金流移動產品組合、帝國與謎題、卡通爆炸、Words With Friends、合併龍、荒野大鏢客救贖 2 和紅色Dead Online 和 Zynga Poker。

We expect the net bookings breakdown from our label to be roughly 53% Zynga, 31% 2K, 15% Rockstar Games and 1% other. And we forecast our geographic net booking site to about 57% in United States and 33% international. We saw recurrent consumer spending to be up approximately 5% compared to fiscal 2023 and represents 79% of net bookings. Our forecast assumes a 76% of console game sales will be delivered digitally. [Roughly] generates approximately $100 million in non-GAAP adjusted unrestricted operating cash flow, and we plan to deploy approximately $180 million for capital expenditures. We expect GAAP net revenue to range from $5.37 billion to $5.47 billion and cost of revenue to range from $2.51 billion to $2.54 billion.

我們預計我們品牌的淨預訂量細分約為 53% Zynga、31% 2K、15% Rockstar Games 和 1% 其他。我們預測我們的地理淨預訂網站在美國約佔 57%，國際約佔 33%。我們發現經常性消費者支出與 2023 財年相比增長了約 5%，占淨預訂量的 79%。我們的預測假設 76% 的主機遊戲銷售額將以數字方式交付。 [大致] 產生約 1 億美元的非 GAAP 調整後無限制經營現金流，我們計劃部署約 1.8 億美元用於資本支出。我們預計 GAAP 淨收入在 53.7 億美元至 54.7 億美元之間，收入成本在 25.1 億美元至 25.4 億美元之間。

Our total operating expenses are expected to range from $3.39 billion to $3.41 billion as compared to $3.45 billion last year. At the midpoint, this represents a 1% reduction, reflecting lower acquisition costs, the realization of synergies from our combination with Zynga and savings from our cost reduction program, which are partly offset by a full year of Zynga, higher stock compensation and personnel expenses driven by the annualization of new hires and the effects of inflation on other business operating expenses primarily reflected in IT costs.

我們的總運營費用預計在 33.9 億美元至 34.1 億美元之間，而去年為 34.5 億美元。在中點，這表示減少了 1%，反映了較低的購置成本、我們與 Zynga 合併的協同效應的實現以及我們的成本削減計劃的節省，這部分被 Zynga 全年、更高的股票薪酬和人員費用所抵消受新員工年化和通貨膨脹對主要反映在 IT 成本中的其他業務運營支出的影響的推動。

We expect the GAAP net loss ranging from $477 million to $518 million or $2.80 to $3.05 per share, which assumes a basic share count of 170.1 million shares. For management reporting purposes, we expect our tax rate to be 18% throughout fiscal 2024. I'd like to acknowledge that our current forecast for fiscal 2024 reflects the continuation of the challenging economic environment as well as an extension of the development time lines for several high-profile and long-awaited titles. While this affects our expectations for our current fiscal year, our high degree of visibility into our pipeline gives us confidence that we are approaching a significant inflection point in our business where we will achieve new record levels of results for our business next year and beyond.

我們預計 GAAP 淨虧損在 4.77 億美元至 5.18 億美元或每股 2.80 至 3.05 美元之間，假設基本股數為 1.701 億股。出於管理報告的目的，我們預計整個 2024 財年的稅率為 18%。我想承認，我們目前對 2024 財年的預測反映了充滿挑戰的經濟環境的持續以及開發時間表的延長幾個備受矚目的和期待已久的頭銜。雖然這會影響我們對當前財政年度的預期，但我們對管道的高度了解讓我們相信我們正在接近我們業務的一個重要轉折點，我們將在明年及以後的業務中實現新的創紀錄水平的業績。

Now moving on to our guidance for the fiscal first quarter. We project net bookings to range from $1.15 billion to $1.2 billion, which reflects the full quarter of Zynga compared to $1 billion in the first quarter last year. The largest contributors to net bookings are expected to be NBA 2K, Grand Theft Auto Online, Grand Theft Auto V, a hyper-casual mobile portfolio, Empires & Puzzles, Toon Blast, Merge Dragons, Words With Friends, Zynga Poker, Red Dead Redemption 2 and Red Dead Online. We project recurrent consumer spending to increase by 35%. Our forecast assumes that 79% of console game sales will be delivered digitally, up from slightly from 77% in the same period last year. We expect GAAP net revenue to range from $1.21 billion to $1.26 billion and cost of revenue to range from $572 million to $592 million.

現在繼續我們對第一財季的指導。我們預計淨預訂量在 11.5 億美元到 12 億美元之間，這反映了 Zynga 整個季度的銷售額，而去年第一季度為 10 億美元。預計淨預訂量的最大貢獻者是 NBA 2K、俠盜獵車手在線版、俠盜獵車手 V、超休閒移動產品組合、帝國與謎題、卡通爆炸、合併龍、Words With Friends、Zynga 撲克、荒野大鏢客：救贖2 和 Red Dead 在線模式。我們預計經常性消費支出將增長 35%。我們的預測假設 79% 的主機遊戲銷售額將以數字方式交付，略高於去年同期的 77%。我們預計 GAAP 淨收入在 12.1 億美元至 12.6 億美元之間，收入成本在 5.72 億美元至 5.92 億美元之間。

Operating expenses are expected to range from $827 million to $837 million. At the midpoint, this represents an 18% increase over last year, which reflects the full quarter of Zynga and higher stock compensation, personnel and IT expenses based on the factors I mentioned previously. And GAAP net loss is expected to range from $161 million to $178 million, or $0.95 to $1.05 per share, which assumes a basic share count of 169.4 million shares.

運營費用預計在 8.27 億美元至 8.37 億美元之間。從中點來看，這比去年增長了 18%，這反映了 Zynga 整個季度以及基於我之前提到的因素的更高的股票薪酬、人員和 IT 費用。 GAAP 淨虧損預計在 1.61 億美元至 1.78 億美元之間，或每股 0.95 美元至 1.05 美元，假設基本股數為 1.694 億股。

(inaudible), we believe that we are very well positioned in our industry to deliver the highest quality content, gain market share and enhance our profitability as we grow our scale and maintain our focus on efficiency. We're extremely excited about our next chapter of growth, and we look forward to our label, sharing more detail about the many exciting projects we have underway. Thank you.

（聽不清），我們相信，隨著我們擴大規模並保持對效率的關注，我們在我們的行業中處於有利地位，可以提供最高質量的內容，獲得市場份額並提高我們的盈利能力。我們對下一個增長篇章感到非常興奮，我們期待著我們的標籤，分享我們正在進行的許多激動人心的項目的更多細節。謝謝。

I'll now turn the call back to Strauss.

我現在將電話轉回施特勞斯。

Thank you, Karl, and Lainie, and thank you to all of our colleagues for your dedication, your hard work and these terrific results. We will now take your questions. Operator?

謝謝 Karl 和 Lainie，也感謝所有同事的奉獻精神、辛勤工作和這些了不起的成果。我們現在將回答您的問題。操作員？

(Operator Instructions) Our first question comes from Andrew Uerkwitz with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Andrew Uerkwitz。

I guess I'll just skip right to fiscal '25 and '26. It's pretty rare that you guys give to your guide like this and we've seen quite a few delays across the industry. Could you just give a little additional color on where the confidence is coming from on being able to provide that to us today?

我想我會直接跳到 25 和 26 財年。很少有人像這樣給你的嚮導，我們已經看到整個行業有很多延誤。您能否就今天能夠為我們提供信心的來源提供一些額外的顏色？

Yes, you're right. It's very uncharacteristic of us to talk about subsequent years at this time. We're doing so because we've been investing in a pipeline for a long time. And we now have a great deal of confidence that, that pipeline will be delivered in the next 3 years, 12 titles in fiscal '24, 36 in the following 2 years. 44% of that is new intellectual property. The rest is new iterations of existing franchises, and that's mobile, console, PC and numerous business models. We couldn't be more excited fiscal '24 titles look good and as I said, we're very confident in the years to come as well. And we thought it was important to convey that with transparency today.

你是對的。我們在這個時候談論隨後的幾年是非常反常的。我們這樣做是因為我們長期以來一直在投資管道。我們現在非常有信心，該管道將在未來 3 年內交付，24 財年有 12 個標題，接下來的 2 年有 36 個標題。其中 44% 是新的知識產權。其餘的是現有特許經營權的新迭代，即移動、遊戲機、PC 和眾多商業模式。我們對 24 財年的遊戲看起來不錯感到無比興奮，正如我所說，我們對未來幾年也非常有信心。我們認為今天以透明的方式傳達這一點很重要。

And then just with the, I think, 44% of new IP, when you're looking this far out, what kind of -- can you walk us through a little bit like how you think about modeling those, the conservatism you're thinking about in some of those? Or just kind of how you come up with the forecast for the new IP?

然後，我認為，只有 44% 的新 IP，當你放眼望去如此遙遠時，你能給我們介紹一下你是如何考慮建模的，你的保守主義考慮其中的一些？或者你是如何提出新 IP 的預測的？

So as you know, new IP is always a little bit of a wildcard, and it's difficult to predict exactly how it's going to behave. Obviously, we're not completely flying blind because we do have a pretty comprehensive process of doing comps in the market, but you really just never know, which is one of the reasons why when we model out in our product investment review process, new IP, we typically -- actually, we never model out big hits (inaudible) [Nora's] upside. It's really -- I don't want to necessarily call it a conservative approach, but we are not -- we don't look at any sort of outlying success.

因此，如您所知，新 IP 總是有點不確定，而且很難準確預測它的行為方式。顯然，我們並非完全盲目，因為我們確實有一個相當全面的市場比較流程，但你真的永遠不知道，這就是為什麼當我們在產品投資審查流程中建模時，新IP，我們通常 - 實際上，我們從不模擬大熱門（聽不清）[Nora] 的優勢。這真的 - 我不想一定稱之為保守的方法，但我們不是 - 我們不考慮任何形式的外圍成功。

Obviously, everything that we invest in and everything that we release, we're looking to achieve that outline success, and we know for a fact that not every single one of our titles will achieve that. But that is the game we're in, and that's why we're making these investments in new IP, which ultimately is the lifeblood of our industry, and that's why we're still very much dedicated to doing that.

顯然，我們投資的所有內容和發布的所有內容，我們都希望取得大綱上的成功，而且我們知道並非我們的每一個作品都能實現這一事實。但這就是我們所處的遊戲，這就是為什麼我們要對新 IP 進行這些投資，這最終是我們行業的命脈，這就是為什麼我們仍然非常致力於這樣做的原因。

Our next question is from Matthew Thornton with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Matthew Thornton。

Maybe 2 from me. Strauss has been another 3 months and AI remains a hot topic. I'm sure you and team have had more time to digest and think about it. I'm just kind of curious of your latest thoughts on how you think it will influence the business and the industry. And then just secondly, as we think about the headcount and the infrastructure that we now have in place, are we kind of at a place where you have what you need to pursue this aggressive pipeline? Or do we still need some more investment. I'm just trying to think about the OpEx leverage and how to think about that as we kind of flow through the out years?

也許 2 來自我。 Strauss 又過了 3 個月，人工智能仍然是一個熱門話題。我相信您和團隊有更多時間來消化和思考它。我只是有點好奇你最近的想法，你認為它將如何影響業務和行業。其次，當我們考慮我們現在擁有的員工人數和基礎設施時，我們是否處於一個你擁有追求這一積極管道所需的東西的地方？或者我們還需要更多的投資嗎？我只是想考慮 OpEx 的槓桿作用，以及隨著我們過去幾年的流動如何考慮它？

Yes, as you know, I'm usually a skeptic when others engage in hyperbole. In the case of AI, I'm pretty enthusiastic. First of all, despite the fact that artificial intelligence is an oxymoron as is machine learning. This company has been involved in those activities no matter how you -- no matter what words used to describe them for its entire history, and we're a leader in the space. So while the most recent developments in AI are surprising and exciting to many. They are exciting to us, but not at all surprising. Our view is that AI will allow us to do a better job and to do a more efficient job. When you're talking about tools and they are simply better and more effective tools. I wish I could say that the advances in AI will make it easier to create hits.

是的，如你所知，當其他人誇大其詞時，我通常持懷疑態度。就人工智能而言，我非常熱情。首先，儘管人工智能和機器學習一樣是矛盾的。這家公司一直參與這些活動，無論你如何 - 無論用什麼詞來描述其整個歷史，我們都是該領域的領導者。因此，雖然 AI 的最新發展令許多人感到驚訝和興奮。他們讓我們興奮，但一點也不奇怪。我們的觀點是，人工智能將使我們能夠做得更好，工作效率更高。當您談論工具時，它們只是更好、更有效的工具。我希望我可以說人工智能的進步將使創造熱門產品變得更加容易。

Obviously, it won't. Hits are created by Genius and data sets plus compute, plus large language models does not equal Genius. Genius is in the domain of human beings, and I believe we'll stay that way. However, I think jobs can be made a whole lot easier and more efficient by developments in AI, and we're certainly looking forward to that. And as I said, we're already putting it in practice every day.

顯然，它不會。 Hit 是由 Genius 創造的，數據集加上計算，再加上大型語言模型並不等於 Genius。天才屬於人類，我相信我們會一直如此。然而，我認為人工智能的發展可以讓工作變得更加輕鬆和高效，我們當然對此充滿期待。正如我所說，我們每天都在付諸實踐。

So your second question in terms of costs. So from a -- I'm not sure exactly what you meant by operating expenses. So I'll just kind of break it down about overhead. So publishing, overhead and corporate overhead. I would say, generally speaking, we're kind of at scale. We have what we need. That's not to say -- to achieve our plan over the next few years. That's not to say that we won't still be investing in those areas, and there will be cost increases associated with that. We're always looking for efficiencies but people do get raises, and we find needs as new opportunities arise. So I can't stand here and say that we don't have any more investment on publishing and corporate overhead, but we certainly believe that we're at scale.

所以你的第二個問題是關於成本的。所以從 - 我不確定你所說的運營費用到底是什麼意思。所以我只是將其分解為開銷。所以出版、間接費用和公司間接費用。我會說，一般來說，我們有點規模化。我們有我們需要的。這並不是說——在未來幾年內實現我們的計劃。這並不是說我們不會繼續在這些領域進行投資，而且相關的成本也會增加。我們一直在尋求效率，但人們確實得到了加薪，而且我們會在新機會出現時找到需求。所以我不能站在這裡說我們不再對出版和公司管理費用進行任何投資，但我們當然相信我們已經達到了規模。

And we also believe that that's an opportunity for us to expand our margins based on the fact that we are very nearly -- we are at scale or very nearly at scale in that regard. On the development side, we do intend over the next few years to continue to add to our development capacity. That's something that we have been able to do successfully about 9,000 developers in-house today. That doesn't include our third-party relationships, which are vast and strong. And we do -- part of our plan is to continue investing in that area.

我們也相信，這對我們來說是一個擴大利潤的機會，因為我們在這方面非常接近 - 我們已經達到規模或非常接近規模。在開發方面，我們確實打算在未來幾年繼續增加我們的開發能力。這是我們今天已經能夠在內部約 9,000 名開發人員成功完成的事情。這不包括我們廣泛而強大的第三方關係。我們確實這樣做了——我們計劃的一部分是繼續在該領域進行投資。

Our next question is from Matthew Cost with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Matthew Cost。

The first one is just about the long-term guidance. I think you mentioned growth in fiscal '26 off of a base of fiscal '25 -- off of the base in fiscal '25. Presumably, there's quite a few units of new games that are being launched in that year. I guess when you think out into fiscal '26, what are the moving pieces that you see driving growth year-over-year off of what looks to be based on the numbers you've just provided a very, very strong year in fiscal '25.

第一個是關於長期指導。我認為你提到了 26 財年在 25 財年基礎上的增長——在 25 財年的基礎上。據推測，那一年將推出相當多的新遊戲。我想當你考慮到 26 財年時，你看到的推動增長的因素有哪些，而這些因素看起來是基於你剛剛提供的非常非常強勁的財年數據25.

And then the second question is just on mobile. You announced that you're going to be launching Star Wars Hunters this fiscal year, I think the game has been in development for some time. Are you seeing something in the mobile gaming market as sort of stabilization or improvement of marketing efficiency that makes you feel this is the right time to come out with the game?

然後第二個問題只是關於移動設備。你宣布你將在本財政年度推出星球大戰獵人，我認為這款遊戲已經開發了一段時間。您是否在移動遊戲市場看到某種穩定或提高營銷效率的東西，讓您覺得現在是推出這款遊戲的最佳時機？

So in terms of our confidence in talking about what would grow as fiscal '26 over '25. It's the same answer what would grow '25 or '24, which is our pipeline, and it's the makeup of that pipeline. And I don't want to get into too much detail about it -- what title unit expectations are, whether it's unit, it's title units or it's recurrent consumer spending because the fact is it's very -- it's all of the above. But in the end, it's based on us delivering the pipeline that we have on plan and achieving the results that we expect. I really don't have much more to say beyond that. You want to do Hunters?

因此，就我們對談論 26 財年到 25 財年增長的信心而言。 25 年或 24 年增長的答案是相同的，這是我們的管道，也是該管道的構成。而且我不想詳細介紹它 - 標題單位的期望是什麼，無論是單位，標題單位還是經常性消費者支出，因為事實是 - 以上都是。但最終，它取決於我們交付計劃中的管道並實現我們預期的結果。除此之外，我真的沒有太多要說的了。你想做獵人？

Yes. On Star Wars, Hunters, you asked about the market backdrop. We are seeing some improvement in year-over-year comps. Mobile really was under a lot of pressure. The market is recovering a bit. It's still down year-over-year. In certain instances, we appear to be overperforming. And we're excited about many developments at Zynga for example, advertising penetration, advertising that represents 27% of Zynga's net bookings, which is great. That will continue to improve. We're excited also about our direct-to-consumer platform, which obviously has an effect on our margins, a beneficial effect on our margins.

是的。關於星球大戰，獵人，你詢問了市場背景。我們看到同比比較有所改善。移動確實承受了很大的壓力。市場正在一點點復甦。它仍然同比下降。在某些情況下，我們似乎表現超常。我們對 Zynga 的許多發展感到興奮，例如，廣告滲透率，廣告佔 Zynga 淨預訂量的 27%，這很棒。這將繼續改善。我們也對我們的直接面向消費者的平台感到興奮，這顯然對我們的利潤產生了影響，對我們的利潤產生了有益的影響。

So I think the backdrop is stable and perhaps improving a little bit. At the end of the day, what will matter, of course, is the quality of the title. Mobile is a very competitive space. We feel really good about Star Wars Hunters.

所以我認為背景是穩定的，也許會有所改善。歸根結底，重要的當然是標題的質量。移動是一個競爭非常激烈的領域。我們對 Star Wars Hunters 感覺非常好。

Our next question is from Colin Sebastian with Baird.

我們的下一個問題來自 Colin Sebastian 和 Baird。

Strauss, you talk about setting new standards in the industry, and I know quality is a big piece of that, but would be also curious to know beyond that, what specific areas of innovation within your games, you would say, keep the portfolio ahead of the competition? And then regarding the fiscal '25 commentary, I'd just be curious how of that more than $2.5 billion in incremental bookings next year. What portion of that should we think of as falling into RCS versus, I guess, unit sales?

Strauss，你談到了在行業中設定新標準，我知道質量是其中的重要組成部分，但也很想知道除此之外，你的遊戲中有哪些特定的創新領域，你會說，讓產品組合保持領先比賽的？然後關於 25 財年的評論，我很好奇明年超過 25 億美元的增量預訂量如何。我們應該將其中的哪一部分視為屬於 RCS，而不是單位銷售？

Yes. Thanks for your question. In terms of how do you define innovation, if it had one definition, I think it would stop being innovation pretty quickly. But I think our labels are known for leading in new areas, whether that's a 3D view when there wasn't one before, whether that was downloadable add-on content many years ago or in-game purchases, virtual currency or the like that was the neighborhood or the city and NBA 2K, GTA Online, Red Dead Online, what you could do in those online environments, all of those were innovations driven by our labels. And everyone who works in the creative capacity at this company is trying to think about how do we engage and entertain consumers in a way that's novel that hasn't been seen before.

是的。謝謝你的問題。就如何定義創新而言，如果它有一個定義，我認為它很快就會不再是創新。但我認為我們的唱片公司以在新領域處於領先地位而聞名，無論是以前沒有的 3D 視圖，無論是多年前的可下載附加內容還是遊戲內購買、虛擬貨幣等社區或城市以及 NBA 2K、GTA 在線模式、荒野大鏢客在線模式，以及您在這些在線環境中可以做的事情，所有這些都是由我們的品牌推動的創新。在這家公司從事創意工作的每個人都在努力思考我們如何以前所未有的新穎方式吸引和娛樂消費者。

We actually just had an internal e-mail exchange earlier today talking about the unknown unknowns that we know in the next 10 years, there will be extraordinary changes in this industry. This is a highly dynamic industry. And we need to be not only current, we need to be leading the charge.

事實上，我們今天早些時候剛剛進行了一次內部電子郵件交流，討論了我們知道在未來 10 年內，這個行業將發生非凡變化的未知未知數。這是一個充滿活力的行業。我們不僅需要跟上潮流，還需要引領潮流。

Sometimes historically, we have. Other times, we've missed the boat, and we want to be at the front of the line and our creative folks work in service of their passions to make the best entertainment, anyone creates on earth. And again, we don't always succeed, but often we do. Our track record is pretty great creatively. And that's thanks to our 9,000 developers who work here and another 1,500 who work outside of our 4 walls to do work that Take-Two brings to market. So I'm sort of highly optimistic on the one hand and very mindful that this is a really ambitious challenge, and the ambition is it's been emotional burden for everyone who works here, but also a great benefit when we succeed.

有時在歷史上，我們有。其他時候，我們錯過了機會，我們想站在最前沿，我們的創意人員為他們的熱情服務，為地球上任何人創造最好的娛樂。再一次，我們並不總是成功，但我們經常這樣做。我們的往績記錄非常有創意。這要歸功於我們在這里工作的 9,000 名開發人員和另外 1,500 名在我們 4 堵牆之外工作的開發人員，他們完成了 Take-Two 推向市場的工作。因此，一方面我非常樂觀，並且非常清楚這是一個非常雄心勃勃的挑戰，雄心壯志是它對在這里工作的每個人來說都是一種情感負擔，但當我們成功時也會帶來巨大的好處。

On your second point, I think you asked us to distinguish between RCS and console sale and full game sales.

關於你的第二點，我想你要求我們區分 RCS 和主機銷售與完整遊戲銷售。

Right. So for fiscal year '25, we are really excited to talk about it. It's a highly anticipated year. And we're really happy to talk about us hitting $8 billion in net bookings, but we aren't talking about what the detail of that is at this time.

正確的。因此，對於 25 財年，我們真的很高興談論它。這是備受期待的一年。我們真的很高興談論我們達到 80 億美元的淨預訂量，但我們目前並沒有談論它的細節。

Our next question is from Doug Creutz with TD Cowen.

我們的下一個問題來自 TD Cowen 的 Doug Creutz。

I just wanted to talk about your adjusted operating cash flow margins for a minute. If I go back to fiscal '18 through fiscal '21, you were pretty consistently in the low mid-20% range. It slipped down below then since then, I think, is a function of you investing against your future pipeline. Your fiscal '25 guide is over $1 billion in OCF against over $8 billion in bookings, which is still only about a 12.5% margin, if my math is correct, which seems low. Do you expect that in fiscal '25, you're still going to be investing heavily against future opportunities? Do you expect to get back to that 20% plus range in '25 or thereafter? Any kind of color you've given that would be great.

我只想談談您調整後的經營現金流量利潤率。如果我回到 18 財年到 21 財年，你會一直處於 20% 的中低區間。我認為，從那時起，它就跌到了下方，這是你對未來管道進行投資的結果。你的 25 財年指南中 OCF 超過 10 億美元，而預訂量超過 80 億美元，如果我的計算正確的話，這仍然只有 12.5% 左右的利潤率，這似乎很低。您是否預計在 25 財年，您仍會針對未來的機會進行大量投資？您是否希望在 25 年或之後回到 20% 以上的範圍？你給的任何一種顏色都會很棒。

Sure. It's definitely still going to be investing in the pipeline going forward. And we still have interest payments and tax payments through those years but we definitely will see a lot of the titles that we have been building up on to the balance sheet coming out those years. So that will definitely be affecting the AOCF in those years as well.

當然。它肯定仍將投資於未來的管道。那些年我們仍然需要支付利息和納稅，但我們肯定會看到那些年我們一直在資產負債表上建立的很多標題。所以這肯定也會影響那些年的 AOCF。

Our next question is from Clay Griffin with MoffettNathanson.

我們的下一個問題來自 Clay Griffin 和 MoffettNathanson。

I guess I'm thinking about the -- the marketing strategies for some of these big highly anticipated title is different now than they were, say, maybe in the Red Dead 2 launch. I mean, notwithstanding the fact that a larger number of titles ought to bring a higher level of marketing support in the aggregate. I'm curious if the overall level of marketing efficiency against bookings is materially different now maybe the prior generation, I guess, in other words, awareness of your IP is already quite high. So just curious on that.

我想我正在考慮——這些備受期待的大作中的一些現在的營銷策略與它們不同，比如說，也許在 Red Dead 2 發佈時。我的意思是，儘管事實上更多的標題應該帶來更高水平的總體營銷支持。我很好奇現在針對預訂的營銷效率的整體水平是否有實質性的不同，也許是上一代，我想，換句話說，你的 IP 意識已經相當高了。所以只是好奇。

So I would say, Clay, I wouldn't say that the overall marketing spend levels are different. I think we continue to spend in a consistent manner. Although the makeup of that spending and the timing of the spending is definitely different now than it has been in the past. We don't spend a heck of a lot of money on TV, really, if any, at this point. Outdoor, a lot of those items are not really in our media plan. We have a lot more social spending than we did before, targeted spending performance marketing, et cetera. And it also used to be that a big portion of the marketing budget was spent prior to the release in the weeks prior to the release and certainly within the couple of weeks following the release.

所以我會說，克萊，我不會說整體營銷支出水平不同。我認為我們將繼續以一致的方式支出。儘管現在這些支出的構成和支出的時間肯定與過去不同。在這一點上，我們並沒有在電視上花很多錢，真的，如果有的話。戶外，其中很多項目並不真正在我們的媒體計劃中。我們有比以前更多的社會支出，有針對性的支出績效營銷等等。而且過去，很大一部分營銷預算都花在了發布前的幾週內，當然還有發布後的幾週內。

We still will spend a significant amount of marketing in and around the launch date, but it is much more spread out because we have the ability to monetize for a much longer period of time, and there are certain opportunities for us to market additional content drops. So you would see our marketing budgets are definitely spread out. Longer than they would have been in the past. So those are really the 2 changes. But no, I don't really think there'd be a significant change in the scale of what we spend.

我們仍然會在發布日期前後花費大量的營銷費用，但會更加分散，因為我們有能力在更長的時間內獲利，並且我們有一定的機會營銷額外的內容掉落.所以你會看到我們的營銷預算肯定是分散的。比過去更長。所以這些確實是 2 個變化。但不，我真的不認為我們的支出規模會發生重大變化。

Got it. And there was some commentary about what sounded like a onetime tax -- cash tax issue in Q4. I just wanted to confirm that. And maybe just give us a sense of I mean what that was, we expect that to repeat? And just kind of general framework for thinking about cash taxes going forward?

知道了。還有一些關於聽起來像是一次性稅收的評論——第四季度的現金稅問題。我只是想確認一下。也許只是給我們一種感覺，我的意思是那是什麼，我們希望重複嗎？以及考慮未來現金稅的一般框架？

It wasn't really like a onetime taxing. It was really like a time -- it was a timing issue. So it's not something that will repeat, but it is our tax balances for each year. So it's something that we'll have tax payments every year going forward.

這真的不像是一次徵稅。這真的很像一個時間——這是一個時間問題。所以這不會重複，但它是我們每年的稅收餘額。所以這是我們以後每年都要納稅的事情。

But the rate that you guys have been speaking to is there's no sense that that's moving one direction or the other.

但是你們一直在談論的速度是沒有意義的，那就是朝一個方向或另一個方向移動。

Well, we have -- it's like 18% estimated tax rate is in our management rate and that's in the annual rate that we use for every year.

好吧，我們有 - 就像 18% 的估計稅率在我們的管理稅率中，這是我們每年使用的年稅率。

Our next question is from Omar Dessouky with Bank of America.

我們的下一個問題來自美國銀行的 Omar Dessouky。

So I guess I was wondering if you could maybe parse out a little bit implied in your operating income guidance, mobile versus PC console. I think a number of your peers guided profits roughly at the same levels for calendar '23 as was calendar '22. And I was just wondering, just for starters, whether your implied guide is up or down, if you could tell me that? And then I have a follow-up question.

所以我想我想知道你是否可以分析一下你的營業收入指南中暗示的一點，移動與 PC 控制台。我認為您的許多同行將 23 年日曆的利潤指導水平與 22 年日曆大致相同。我只是想知道，對於初學者來說，你的隱含指導是向上還是向下，你能告訴我嗎？然後我有一個後續問題。

Can you repeat the first question? I'm sorry.

你能重複第一個問題嗎？對不起。

Yes. No problem. A number of your peers that publish only mobile games have guided profits at similar levels in 2023, full year as 2022 full year. And I was wondering whether your guidance implies your profitability for Zynga and your Take-Two Mobile business up or down. I realize there's a number of moving pieces such as potential revenue synergies, reducing the cost of advertising and, of course, cost synergies. But are you -- is your implied guide for mobile up or down versus last year? Like-for-like, including 53 days of Zynga.

是的。沒問題。許多僅發布手機遊戲的同行在 2023 年全年的指導利潤與 2022 年全年的利潤水平相似。我想知道你的指導是否意味著你對 Zynga 和你的 Take-Two 移動業務的盈利能力是上升還是下降。我意識到有許多動人的因素，例如潛在的收入協同效應、降低廣告成本，當然還有成本協同效應。但是你 - 與去年相比，你的移動設備上升或下降的隱含指南是什麼？同類產品，包括 Zynga 的 53 天。

Yes. So on a like-for-like basis for a comparable 12 months, the Zynga mobile business is up year-over-year.

是的。因此，在可比的 12 個月的同類基礎上，Zynga 移動業務同比增長。

Okay. Okay. Great. And I'm also glad that you guys addressed the $500 million of annual net bookings opportunities in the presentation. So I wanted to dig into that for a second. I think you have -- the first question on that is, can you give us any sense of the cadence of how you might get to $500 million? In terms of like fiscal '24, fiscal '25, fiscal '26. The reason I asked that is because you guys did put out a cadence in the S-4, obviously, that's a long time ago, but any update there would be great. So the cadence first.

好的。好的。偉大的。我也很高興你們在演示中談到了 5 億美元的年度淨預訂機會。所以我想深入研究一下。我想你有 - 第一個問題是，你能告訴我們你如何達到 5 億美元的節奏嗎？就像'24財政年度，'25財政年度'，'26財政年度'而言。我問這個的原因是因為你們確實在 S-4 中推出了節奏，顯然，那是很久以前的事了，但任何更新都會很棒。所以節奏第一。

And then the second, the ramp to $500 million. And then the second one is you have a couple of bullet points here establishing a more meaningful presence in key mobile first emerging markets and introducing mobile games from some of our most popular improvement intellectual properties. So does that include high fidelity mobile games? Is that what you're referring to there? And specifically for Asian markets, potentially using some of your PC console IP. Lots of questions I appreciate your responses.

然後是第二個，增加到 5 億美元。然後第二個是你在這裡有幾個要點，在關鍵的移動優先新興市場建立更有意義的存在，並從我們一些最受歡迎的改進知識產權中引入移動遊戲。那包括高保真手機遊戲嗎？那是你指的那個嗎？並且專門針對亞洲市場，可能會使用您的一些 PC 控制台 IP。很多問題我感謝你的回答。

It's Karl. So in terms of some of the cadence around the $500 million -- the $500 million revenue synergies, obviously, we're still very committed to that, and we feel very good about those opportunities for us. I think in the near term, there are several meaningful opportunities that we believe our teams -- we can actually start to begin to activate this fiscal year. And those are really more around expanding our D2C efforts more meaningfully in some of our other games. And also things like implementing new bold beats, marketing beats across the company, user acquisition optimization, creating centralized library of customer data across the company, integrating the Take-Two databases with the Zynga databases. All those things we're going to be able to start realizing some of that in this fiscal year and then obviously accelerate that into the next few years as well.

是卡爾。因此，就 5 億美元左右的一些節奏而言 - 5 億美元的收入協同效應，顯然，我們仍然非常致力於這一點，我們對這些機會感到非常滿意。我認為在短期內，我們相信我們的團隊有幾個有意義的機會——我們實際上可以開始激活本財年。而這些實際上更多的是圍繞在我們的其他一些遊戲中更有意義地擴展我們的 D2C 努力。還有諸如實施新的大膽節拍、整個公司的營銷節拍、用戶獲取優化、在整個公司創建集中的客戶數據庫、將 Take-Two 數據庫與 Zynga 數據庫集成等事情。所有這些我們將能夠在本財政年度開始實現其中的一些，然後顯然也會在接下來的幾年中加速實現。

In terms of the immediate and long term, I think this will answer I think both of your questions. We are -- we do have a vision to introduce mobile games to some of some of our most popular properties on the T2 side into the mobile space. That's something that we're having conversations right now, nothing to announce specifically but the conversations are happening, and I would characterize them as very positive and people are excited about that opportunity. I'm not really sure I understood the sort of reference to Asia and high fidelity, et cetera. But these are intellectual properties think about them as some of our more core type games.

就近期和長期而言，我認為這將回答我認為你的兩個問題。我們 - 我們確實有一個願景，將手機遊戲引入我們在 T2 端的一些最受歡迎的屬性進入移動領域。這是我們現在正在討論的事情，沒有什麼可以具體宣布的，但對話正在進行，我認為他們非常積極，人們對這個機會感到興奮。我不太確定我理解那種對亞洲和高保真度等的提及。但這些都是知識產權，將它們視為我們的一些更核心的類型遊戲。

And by definition, you would expect and again, I don't have anything to announce right now because we don't have any games necessarily in development in that regard, that those games would be a little bit more upmarket they -- because we do believe that there's a market for that. You've seen some success in the mobile space with other folks bringing their titles to market. Call of Duty is a perfect example of that. We think that there is several of our titles that have that kind of opportunity.

根據定義，你會再次期望，我現在沒有任何要宣布的，因為我們在這方面沒有任何必要開發的遊戲，這些遊戲會更高端一點——因為我們相信那是有市場的。您已經看到其他人在移動領域取得了一些成功，將他們的作品推向市場。使命召喚就是一個很好的例子。我們認為我們的幾款遊戲都有這樣的機會。

And I would expect those games to be a little bit more towards the mid-core arena. I hope that answers your question.

而且我希望這些遊戲更傾向於中核競技場。我希望這能回答你的問題。

Our next question is from Martin Yang with Oppenheimer.

我們的下一個問題來自 Martin Yang 和 Oppenheimer。

First question on Zynga, can you tell us that Zynga's developer headcount growth since it was acquired?

關於 Zynga 的第一個問題，您能告訴我們自收購以來 Zynga 的開發人員人數增長情況嗎？

Yes, we don't break out the headcount label by label, but we did say that we have about 9,000 internal development people at the company.

是的，我們沒有按標籤細分人數，但我們確實說過我們公司有大約 9,000 名內部開發人員。

My second question is broader. I want to get your broader view on console cycles. When do you stop -- when do you plan to stop supporting past-gen consoles? And what goes into the decision stopping our -- for the past-gen consoles for certain franchise or for overall take to release gains?

我的第二個問題更廣泛。我想了解您對控制台週期的更廣泛看法。你什麼時候停止——你打算什麼時候停止支持上一代遊戲機？什麼決定停止我們的 - 對於某些特許經營的上一代遊戲機或整體釋放收益？

It really varies. I mean, obviously, our labels will continue to support platforms for which they believe there's a meaningful audience. And if and when the audience diminishes to (inaudible), it's not economical to do so, we stop supporting the platforms. But in general, we're pretty supportive on an ongoing basis.

它真的不同。我的意思是，很明顯，我們的唱片公司將繼續支持他們認為擁有有意義受眾的平台。如果當觀眾減少到（聽不清）時，這樣做是不經濟的，我們將停止支持這些平台。但總的來說，我們在持續的基礎上非常支持。

Our next question is from Brian Fitzgerald with Wells Fargo.

我們的下一個問題來自富國銀行的 Brian Fitzgerald。

A couple of questions on consumer pricing, not with your titles, but we've seen discounting on some of your competitors' recent releases they were anticipated AAA titles, but were being discounted within days and weeks. So do you think the gamer is still struggling a little bit with coming to terms of $70 price points, maybe still macro impacted? And then the second one related to pricing is, again, you saw a strong RCS performance. Historically, the narrative has been gaming spending is resilient because even in macro because you get that bang for buck, relatively low cost per hour -- per hour of entertainment. At the same time, the model is evolving to more live services, more RCS. Is that RCS spend just as resilient as the historical industry consumer spend has been?

關於消費者定價的幾個問題，不是關於你們的作品，但我們已經看到你們的一些競爭對手最近發布的產品打折，它們是預期的 AAA 作品，但在幾天和幾週內就打折了。那麼您是否認為遊戲玩家仍在為接受 70 美元的價格點而苦苦掙扎，也許仍然受到宏觀影響？然後第二個與定價相關的是，你再次看到了強大的 RCS 性能。從歷史上看，遊戲支出是有彈性的，因為即使在宏觀上，你也能物有所值，每小時的成本相對較低——每小時的娛樂。同時，該模型正在向更多實時服務、更多 RCS 演進。 RCS 支出是否與歷史行業消費者支出一樣具有彈性？

Yes. We've talked about this in the past. I mean, to take your second question first. We do think that live services spending is probably more affected by macroeconomic conditions because you don't need to spend. If you have the game, you can enjoy the game. There are certain titles that we don't really put ours into this category where you kind of have toll boots. If you don't pay, you really can't play, but that doesn't describe any of our titles mobile or console. So we think of spending in a live services environment is a nice to have for the consumer, not a must-have. And as a result, if the consumer is feeling a pinch that might be an area that would be more likely to be influenced negatively.

是的。我們過去談過這個。我的意思是，先回答你的第二個問題。我們確實認為現場服務支出可能更受宏觀經濟條件的影響，因為您不需要支出。如果你有遊戲，你可以享受遊戲。有些標題我們並沒有真正將我們的標題歸入您有收費靴子的類別。如果你不付錢，你真的不能玩，但這並沒有描述我們的任何遊戲手機或遊戲機。因此，我們認為在現場服務環境中消費對消費者來說是一件好事，而不是必須擁有的。因此，如果消費者感到壓力，那可能是一個更有可能受到負面影響的區域。

In terms of the pricing point that you raised, we're not seeing a pushback on frontline price. What we're seeing is consumers are seeking to limit their spending by going either to the stuff they really, really care about blockbusters or to value. And sometimes it could be both. And the good news is like we have a bunch of blockbusters, and we have a wonderful catalog. The other news is we also have a robust frontline release schedule and without regard to price, there has been some pressure as a result. If a consumer sees something is interesting but not necessarily yet a huge blockbuster. We think that will change. This is a growth business, and this is a unique market.

就您提出的定價點而言，我們沒有看到一線價格出現回落。我們看到的是，消費者正在尋求限制他們的支出，要么轉向他們真正非常關心的大片，要么轉向重視的東西。有時可能兩者兼而有之。好消息是我們有一堆大片，我們有一個很棒的目錄。另一個消息是我們也有一個強大的前線發佈時間表，並且不考慮價格，因此存在一些壓力。如果消費者看到的東西很有趣但不一定是巨大的重磅炸彈。我們認為這會改變。這是一個成長型企業，這是一個獨特的市場。

And nothing that's going on now is inconsistent with the view that we outlined during the pandemic. We said at that time, we were benefiting greatly from people being at home and an odd turn of events. And we set our expectations post-pandemic, as an industry being in a better place than pre-pandemic in a worse place than during time when people were sheltering at home.

現在發生的一切都與我們在大流行期間概述的觀點不一致。我們當時說，我們從人們在家和一些奇怪的事件中受益匪淺。我們設定了大流行後的期望，因為這個行業比大流行前處於更好的位置，而不是人們在家裡避難的時候。

And that's exactly what's happened exacerbated by a challenging mixed economy and what I believe is a recession, at least if you look at it through the lens of people who purvey digital entertainment consumed at home and e-commerce suppliers. There's a lot of pressure in those markets. But the overall tailwinds of the industry will continue. This is a growth business. It will remain fastest-growing part of the entertainment business for the next 20-plus years. And we will have those tailwinds. Now we still have to deliver in that context, and we intend to. But to torture the metaphor, the wind at our back.

這正是充滿挑戰的混合經濟和我認為的經濟衰退所加劇的情況，至少如果你從提供在家消費的數字娛樂的人和電子商務供應商的角度來看的話。這些市場壓力很大。但該行業的整體順風將繼續。這是一個成長型企業。在接下來的 20 多年裡，它仍將是娛樂業務中增長最快的部分。我們將擁有這些順風。現在我們仍然必須在這種情況下交付，我們打算這樣做。但是為了折磨這個比喻，我們背後的風。

Awesome. Thanks, Strauss. Really appreciate it.

驚人的。謝謝，施特勞斯。真的很感激。

Our next question is from Mike Hickey with Benchmark.

我們的下一個問題來自 Benchmark 的 Mike Hickey。

Charles in (inaudible). (inaudible) congrats on your -- I guess it's been at under '25 guide, no pressure guys $8 billion in revenue. Just curious, you didn't guide to profitability expecting to now that $8 billion was a little bit above consensus view. Just curious how we should think about profitability, I think consensus for is over $8 in EPS. I don't expect you to confirm that either way, but just thoughts on how we should think about profitability on '25, especially given that we have extended time lines now on development and what impact that could have?

查爾斯在（聽不清）。 （聽不清）祝賀你——我想它一直在 25 歲以下，沒有壓力，伙計們，80 億美元的收入。只是好奇，你沒有指導盈利預期，現在 80 億美元略高於普遍看法。只是好奇我們應該如何考慮盈利能力，我認為共識是每股收益超過 8 美元。我不希望您以任何一種方式確認這一點，只是想一想我們應該如何考慮 25 年的盈利能力，特別是考慮到我們現在已經延長了開發時間線，這可能會產生什麼影響？

And then the second question, just another one on AI, Strauss. I'm glad to hear you're positive on it. That's nice curious on the mobile side with AI and barriers to entry. Just curious if you think that will have any challenges in terms of more competitors coming to the market?

然後是第二個問題，另一個關於 AI 的問題，Strauss。我很高興聽到你對此持肯定態度。在具有 AI 和進入壁壘的移動端，這很好奇。只是好奇您是否認為在更多競爭者進入市場方面會有任何挑戰？

Thanks, Mike. Well, we basically have indicated profitability by talking about our operating cash flow. You're right, we haven't gotten granular because we're not providing initial specific guidance, but we do expect that fiscal '25, '26 and beyond will be highly profitable years. And we've said repeatedly in these remarks today, we expect to grow our margins. That's a big part of what our financial objectives include. With regard to AI and mobile, I think the implication of your question is does generative AI allow people who aren't in the business to make mobile hits by say, ChatGPT. I come up with a great idea for a new mobile hit. Oh, and by the way, please code it for me, too. And while you can do that now, you should give it a try and you'll see what happens because we certainly have tried it around here.

謝謝，邁克。好吧，我們基本上已經通過談論我們的經營現金流來表明盈利能力。你是對的，我們沒有得到細化，因為我們沒有提供初步的具體指導，但我們確實預計 25 財年、26 財年及以後的財年將是高利潤的年份。我們今天在這些言論中一再表示，我們希望增加利潤。這是我們財務目標的重要組成部分。關於 AI 和移動，我認為你的問題的含義是生成 AI 是否允許非業務人員通過 ChatGPT 進行移動點擊。我想出了一個新的移動熱門的好主意。哦，順便說一句，請也為我編碼。雖然您現在可以做到這一點，但您應該嘗試一下，您會看到會發生什麼，因為我們肯定已經在這裡嘗試過了。

And let's just say that, no, you will not be able to create hits that way. I mean remember, what you're looking at with AI and what you will always be looking at is a data set compute and at least sitting here today, large language models. And in the future, you may not be looking at large language models or they will change, but you'll still be looking at a data set and compute. And a data set by definition, is backward-looking and hits in the entertainment business, by definition, are forward-looking. And no matter how intelligent, and I use the word in quotes very much in quotes, maybe multiple quotes. "A machine is a machine is not going to be able to look forward." A machine can predict based on data sets and using massive compute and using large language models. We're all super excited about what we see because we haven't seen before the possibility of doing a natural language query and getting a natural language result. That looks incredibly cool.

讓我們這麼說吧，不，你將無法以這種方式創造成功。我的意思是記住，你正在看的人工智能和你將永遠看的是數據集計算，至少今天坐在這裡，大型語言模型。在未來，你可能不會關注大型語言模型，或者它們會發生變化，但你仍然會關注數據集和計算。根據定義，數據集是向後看的，而根據定義，娛樂業的熱門歌曲是前瞻性的。而且無論多麼聰明，我在引號中經常使用引號中的單詞，也許是多個引號。 “機器就是機器，是不能向前看的。”機器可以基於數據集並使用大量計算和使用大型語言模型進行預測。我們都對我們所看到的感到非常興奮，因為我們以前從未見過進行自然語言查詢並獲得自然語言結果的可能性。這看起來非常酷。

But to confuse that result with intelligence and creativity is like confusing a magic trick with magic. It's not magic. It's still a magic trick. So that's where I'm at on this. No AI is not going to allow people to push a button to make a hit. However, AI is going to make certain elements of any process that requires coding easier for everyone, for everyone, not disproportionately for anyone, for everyone.

但是，將結果與智力和創造力混淆就像將魔術與魔法混淆一樣。這不是魔術。這仍然是一個魔術。這就是我的立場。沒有人工智能不會允許人們按下按鈕來獲得成功。然而，人工智能將使任何需要編碼的過程中的某些元素對每個人來說都更容易，對每個人來說，對任何人來說都是不成比例的。

(Operator Instructions) Our next question is from Gerrick Johnson with BMO Capital Markets.

（操作員說明）我們的下一個問題來自 BMO 資本市場的 Gerrick Johnson。

On the topic of delivering mobile games direct-to-consumer, what kind of share are you targeting for downloads in MPX? And then what kind of margin lift would you see on a game-by-game basis as well as a consolidated basis?

關於直接向消費者提供手機遊戲這一主題，您希望在 MPX 中獲得什麼樣的下載份額？然後你會在逐個遊戲的基礎上以及合併的基礎上看到什麼樣的利潤率提升？

So we're not -- we haven't disclosed what our target is. We do think it's a significant opportunity for us. So it certainly is greater than 0 and less than 100%. We don't think that it makes sense in all cases to go to direct-to-consumer, but we do think there's a lot of room for us to grow from where we are right now. I think it's the second question. What was the second?

所以我們不是——我們還沒有透露我們的目標是什麼。我們確實認為這對我們來說是一個重要的機會。所以它肯定大於 0 且小於 100%。我們不認為在所有情況下都直接面向消費者是有意義的，但我們確實認為我們現在的發展空間很大。我認為這是第二個問題。第二個是什麼？

What was the second part of your question?

你問題的第二部分是什麼？

Margin list.

保證金列表。

Yes. Well, I mean, again, I don't think we've talked about the margins, but you can kind of back into them yourself. I mean we're doing it ourselves and the sort of the take rate, obviously, is much, much, much lower because you're really talking about payment clearances and things of that nature. When you go to (inaudible) other rates that may be in the.

是的。好吧，我的意思是，再一次，我不認為我們已經討論過利潤率，但你可以自己回到它們。我的意思是我們自己在做這件事，顯然，這種接受率要低得多，因為你真的在談論付款清算和那種性質的事情。當你去（聽不清）其他可能在的利率。

Our next question is from Benjamin Soff with Deutsche Bank.

我們的下一個問題來自德意志銀行的本傑明索夫。

Just one on the slide. So LEGO Drive is listed under the mid-core section, but it seems like a $70 price point with a full year of seasonal updates. And to me, that would seem like a AAA title. So do you mind expanding a bit on the difference between immersive and mid-core in your mind? And then apologies if I missed it, but are you expecting both top line and bottom line growth in fiscal '26?

幻燈片上只有一個。所以 LEGO Drive 列在中核部分下，但它似乎是 70 美元的價格點，全年季節性更新。對我來說，這似乎是 AAA 級的稱號。那麼你介意在你的腦海中擴展一下沉浸式和中核之間的區別嗎？如果我錯過了，請道歉，但您是否期望 26 財年的收入和利潤都增長？

So in terms of -- it's a funny question you asked because we've debated this exact thing internally, whether or not like a LEGO title, for example, is a mid core title. Mid-core/arcade or is it immersive. And it really isn't a question of quality and the amount of gameplay that's involved. So the $70 price point, I would say, is a bit of a red herring. We think that the game is certainly worthwhile with that experience. But the experience itself when you look at sort of the over -- if you compare that experience to a Grand Theft Auto, for example, obviously, there's a big difference. In the depth of the storyline, the vastness of the world, et cetera, LEGO Drive is an open world driving experiences, but it's not Los Santos, so there's quite a bit -- it's probably not even the city with NBA.

因此，就您提出的這個問題而言，這是一個有趣的問題，因為我們已經在內部討論過這個確切的事情，例如樂高遊戲是否是中核遊戲。中核/街機還是身臨其境。這真的不是質量和所涉及遊戲玩法數量的問題。所以 70 美元的價格點，我想說，有點轉移注意力。我們認為這款遊戲當然值得擁有那種體驗。但是當你看到某種程度上的體驗本身時——如果你將這種體驗與俠盜獵車手進行比較，例如，顯然，有很大的不同。在故事情節的深度、廣闊的世界等等方面，LEGO Drive 是一種開放世界的駕駛體驗，但它不是 Los Santos，所以有很多 - 它可能甚至不是擁有 NBA 的城市。

So the term is probably a little bit of art in terms of how we classify things. But in this particular case, just given the look in the field of the game, we thought that mid-core/arcade was the right categorization of it. But there's no specific guideline other than kind of in this particular case, it kind of felt that way. And I should also say -- sorry to -- and Lainie was about to answer the other question. Whether it's mid-core or arcade versus core or immersive, that doesn't necessarily indicate our expectations about commercial success because you can have a commercially successful title, that's mid-core or casual.

因此，就我們如何對事物進行分類而言，該術語可能有點藝術。但在這種特殊情況下，僅考慮到遊戲領域的外觀，我們認為中核/街機是對它的正確分類。但是除了在這種特殊情況下，沒有具體的指導方針，感覺就是這樣。我還應該說——很抱歉——Lainie 正要回答另一個問題。無論是中核遊戲、街機遊戲還是核心遊戲還是沉浸式遊戲，這並不一定表明我們對商業成功的期望，因為你可以擁有商業上成功的遊戲，無論是中核遊戲還是休閒遊戲。

Yes. Okay. Got it. And then.

是的。好的。知道了。進而。

For fiscal '26, what we've said is that we expect net bookings and operational results to be higher than fiscal '25. So that would imply that it would -- both would be growing.

對於 26 財年，我們所說的是我們預計淨預訂量和運營結果將高於 25 財年。所以這意味著它會 - 兩者都會增長。

Our next question is from Stephen Ju with Credit Suisse.

我們的下一個問題來自瑞士信貸的 Stephen Ju。

Okay. Thank you. So Strauss, I certainly do not want to put words in your mouth, but your answer to one of the prior questions. It sounded like you were talking about incremental barbelling of industry dollars, I guess, similar to what you were seeing during the financial crisis. And then I guess in an environment where only the AAA and the value games are going to capture dollars and the stuff in the middle maybe in some trouble. So what are you doing at the studio level that is different now to maybe adjust for that environment. And Karl, like what are you doing at the Private Division level to adjust to what might be the new normal?

好的。謝謝。所以施特勞斯，我當然不想把話放在你嘴裡，而是你對先前問題之一的回答。聽起來你在談論行業美元的增量槓鈴，我猜，類似於你在金融危機期間所看到的。然後我想在一個只有 AAA 和價值遊戲才能獲得美元的環境中，中間的東西可能會遇到一些麻煩。那麼，您現在在工作室級別做什麼，可能會針對該環境進行調整。 Karl，你在私人部門級別做了什麼來適應可能的新常態？

I think that's right. But at the end of the day, it just means quality. Just means you have to put out great stuff, and that speaks to Private Division as well. and that's always the case. This is less about changing strategy because our strategy is that everything that we put out should be just spectacular and more just a reflection of where the consumer sits. And the consumer will return, and this is going to be a growth business. As long as we make the highest quality titles, we should do just fine.

我認為這是對的。但歸根結底，它只意味著質量。只是意味著你必須拿出很棒的東西，這也適用於私人部門。情況總是如此。這與改變策略無關，因為我們的策略是我們推出的所有產品都應該是壯觀的，而更應該反映消費者的位置。消費者將會回歸，這將是一項增長業務。只要我們製作最高質量的遊戲，我們就應該做得很好。

Private Division's approach has never been based on sort of taking a shortcut on quality. Its approach has been let's bring into the 10 developers who might not otherwise bring their products to Take-Two. And in certain instances, we can deliver an A+ title on a more economical level than we might be able to do in-house. And that's been proven out and Private Division has generated a lot of successful titles. And in fact, virtually everything they've done, not everything, but virtually everything has been successful.

Private Division 的方法從來都不是基於在質量上走捷徑。它的方法是讓 10 名開發人員加入，否則他們可能不會將他們的產品帶到 Take-Two。在某些情況下，我們可以比我們在內部做的更經濟的水平提供 A+ 標題。這已經被證明了，Private Division 已經產生了很多成功的遊戲。事實上，他們所做的幾乎所有事情，不是每件事，但幾乎每件事都取得了成功。

Our next question is from Matthew Thornton with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Matthew Thornton。

Just a quick follow-up. I'm not sure if this is for Strauss or Karl. We've talked about DTC on the mobile side. You guys have DTC experience with the Rockstar launch or on the PC side, if we think out a couple of years, given the scale you're going to be at as the world perhaps starts to take more steps towards streaming, do you see the opportunity to perhaps partner on the back end or white label the streaming back end to go D2C on streaming, again, given the scale you'll be in a couple of years. Just kind of curious if you're thinking about that yet.

只是快速跟進。我不確定這是給施特勞斯還是給卡爾的。我們已經討論了移動端的 DTC。你們有 Rockstar 發布或 PC 方面的 DTC 經驗，如果我們考慮幾年，考慮到隨著世界可能開始採取更多步驟流媒體，你們將達到的規模，你們看到了嗎？有機會在後端合作或白標流媒體後端以在流媒體上進行 D2C，再一次，考慮到你將在幾年內達到的規模。只是有點好奇你是否正在考慮這個問題。

Our strategy has always been to have the broadest possible distribution. We were a leader in digital distribution in the very beginning. And one of the reasons we did so well is that we basically were willing to do business with everyone whose terms made sense to us and who were good market participants in terms of security and compliance. And to the extent that streaming is a viable business opportunity and technology for our industry. Of course, we'll avail ourselves of it. And I'm certain we'll work with third parties as we have in the past. We were I think the first license sort of Stadia, for example, sorry, didn't work out, but we were there to support the effort.

我們的策略一直是盡可能廣泛地分發。從一開始，我們就是數字發行領域的領導者。我們做得很好的原因之一是，我們基本上願意與所有條款對我們有意義並且在安全性和合規性方面是良好市場參與者的人開展業務。在某種程度上，流媒體對我們的行業來說是一個可行的商業機會和技術。當然，我們會利用它。我確信我們會像過去一樣與第三方合作。我認為我們是 Stadia 的第一個許可證，例如，抱歉，沒有成功，但我們在那裡支持這項工作。

And equally to the extent that it makes sense to have our own platform, we will do that, too. But we're not very unlikely to be exclusively limited in one direction or the other. We want to be where the consumer is.

同樣，在擁有自己的平台有意義的情況下，我們也會這樣做。但我們不太可能完全局限於一個方向或另一個方向。我們想成為消費者所在的地方。

So I think that's all the questions we have today. Thank you so much for joining us. We're thrilled with these results. We're more than thrilled with our outlook. I want to reiterate our gratitude to our teams around the world who show up every day with more or less -- with smiles on their faces, mostly with smiles. Aiming to do their very best work in pursuing their passions. I want to thank our business teams who bring their great work to market and make sure that we run our business in a first-class fashion. And of course, I want to thank our shareholders for their support and confidence in us. Have a great day.

所以我認為這就是我們今天的所有問題。非常感謝您加入我們。我們對這些結果感到非常興奮。我們對我們的前景感到非常興奮。我想重申我們對我們在世界各地的團隊的感謝，他們每天都或多或少地帶著微笑出現——他們的臉上大多帶著微笑。旨在盡最大努力追求自己的激情。我要感謝我們的業務團隊，他們將出色的工作推向市場，並確保我們以一流的方式開展業務。當然，我要感謝我們的股東對我們的支持和信任。祝你有美好的一天。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。