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Take-Two Interactive Software Inc (TTWO) Q1 2020 Earnings Call Transcript

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Take-Two Interactive Software Inc (NASDAQ: TTWO)
Q1 2020 Earnings Call
Aug 5, 2019, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Take-Two Interactive Software First Quarter Fiscal Year 2020 Earnings Call. [Operator Instructions]. A question-and-answer session will follow the formal presentation. [Operator Instructions].

I would now like to turn the conference over to your host, Hank Diamond, SVP of Investor Relations and Corporate Communications.

Henry Diamond -- Senior Vice President Investor Relations & Corporate Communications

Good afternoon. Welcome and thank you for joining Take-Two's conference call to discuss its results for the first quarter and fiscal year 2020 ended June 30, 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 -- Chairman and Chief Executive Officer

Thanks, Hank. Good afternoon and thank you for joining us today. I'm pleased to report that fiscal 2020 is off to a terrific start with first quarter operating results that exceeded our expectations. We delivered significant net bookings and cash flow growth driven by the performance of Grand Theft Auto Online and Grand Theft Auto V, NBA 2K19, the Borderlands franchise, and Red Dead Redemption 2 and Red Dead Online.

As we approach the sixth anniversary of their initial launch, sales of Grand Theft Auto V and recurrent consumer spending on Grand Theft Auto Online once again exceeded our expectations in the first quarter. Net bookings from Grand Theft Auto Online grew year-over-year, driven by the increased installed base of Grand Theft Auto V units as well as numerous reward bonus programs tied to game mode events and promotions.

Grand Theft Auto V also continued its unprecedented level of success, charting in the top 10 games in 5 out of the past 6 months in the US based on combined physical and digital sales, according to the NPD Group. The title is now sold in more than 110 million units and remains one of the most revered and successful entertainment experiences across all art forms of all time.

Our industry-leading basketball series continues to set new benchmarks for excellence. NBA 2K19 is now our highest-selling sports game ever, with selling to date of nearly 12 million units. During the first quarter net bookings from NBA 2K19 more than doubled, driven by strong recurrent consumer spending, and increased unit sales. Recurrent consumer spending on NBA 2K grew more than 140% and was the single largest contributor to that part of our business. Moreover, engagement with NBA 2K19 continues to increase with average games played and daily active users growing 12% and 23% respectively. This was driven by a variety of factors, including an enhanced mix of game modes that appeals to a broader audience and play styles, the strong performance of recent sales promotions, new player virtual currency bundles and engaging late cycle my team content. We expect the lifetime net bookings from NBA 2K19 will be the highest ever for a 2K sports title, including both record unit sales and recurrent consumer spending.

Leading up to the eagerly anticipated September launch of Borderlands 3, which Karl will discuss shortly, we've seen a significant increase in sales of our Borderlands catalog offerings. During the quarter, 2K and Gearbox Software released the Borderlands Game of the Year edition for PlayStation 4, Xbox One and PC which features all new Ultra HD visuals, numerous gameplay improvements and all previously released add-on packs. In addition, we launched the Ultra HD texture pack that increases the visual fidelity of Borderlands: The Handsome Collection on consoles and provides a graphical upgrade for Borderlands 2, Borderlands: The Pre-Sequel and all of the add-ons for both titles on PC.

Turning to Rockstar Games' latest creative and commercial masterpiece Red Dead Redemption 2 continues to expand its audience and to date has sold an approximately 25 million units worldwide. On May 14, Red Dead Online exited its beta phase with a massive update that brought a host of new gameplay modes, including new cooperative story missions, free-roam activities, and the introduction of poker along with a range of updates and improvements that strengthen and stabilize the foundational world of the Red Dead Online experience. In addition, throughout the quarter, Rockstar Games released additional content such as numerous new Weapons, Clothing, emotes, and more. Both engagement and recurrent consumer spending in the game, continue to gain momentum and Rockstar plans to continue to enhance and evolve the world of Red Dead Online with ongoing updates to drive growth over time.

On July 1st, Rockstar Games and Twitch announced an exciting new program, through which Rockstar Games Social Club members and Twitch Prime subscribers receive free in-game rewards, bonuses, and exclusive discounts in both Grand Theft Auto Online and Red Dead Online simply by linking their Twitch Prime and Social Club accounts. Benefits continue for months to come and include special in-game benefits for both Red Dead Online and Grand Theft Auto Online. Rockstar Games plan to support both Red Dead Online and Grand Theft Auto Online with much more content moving forward and we now expect combined results from these titles to grow in fiscal 2020.

Our first quarter results were also enhanced by Social Point's mobile games WWE SuperCard and WWE 2K19 as well as Sid Meier's Civilization VI. One of our key strategic priorities is to continue to drive growth in engagement with our titles after their initial purchase. Our ability to achieve this goal consistently results from our firm commitment to providing consumers with opportunities that are compelling of the highest quality and meaningfully add to their overall gameplay experience. To that end, during the first quarter, recurrent consumer spending exceeded our expectations, growing 55% and accounting for 67% of our total net bookings.

In addition to virtual currency for NBA 2K, Grand Theft Auto Online, and Red Dead Online, recurrent consumer spending was enhanced by a variety of other offerings. In the free to play category, Social Point remains a meaningful contributor to our results through its two biggest mobile titles Dragon City and Monster Legends as well as World Chef and Tasty Town. In May, our Barcelona-based studio successfully launched Word Life, a new crossword game and continues to invest in its broad and innovative pipeline of new games planned for launch in the coming years.

Recurrent consumer spending on WWE SuperCard exceeded our expectations and the title has now been downloaded nearly 19.5 million times and remains 2K's highest grossing mobile title and recurrent consumer spending on NBA 2K Online in China also outperformed growing 7% driven by the launch of NBA 2K Online 2 in August last year. Total combined registered users for NBA 2K Online 2 and its predecessor currently stand at 46 million and the franchise remains the number 1 PC online sports game in China. Asia and China in particular continues to be a significant long-term growth opportunity for our business.

Lastly, add-on content grew nearly 135% led by our offerings for the Borderlands franchise and Sid Meier's Civilization VI. As a result of our better-than-expected first quarter operating results and increased forecast for the balance of the year, we're raising our outlook for fiscal 2020, which is anticipated -- anticipated to be another great year for our organization. Looking ahead, we have the strongest development pipeline in our history, including sequels from our biggest franchises, as well as exciting new IP. Take-Two remains exceedingly well positioned creatively , strategically, and financially to capitalize on our industry's many opportunities and to deliver growth and returns for our shareholders over the long term. With the promise of new consoles along with emerging platforms, distribution channels, business models and markets, we have tremendous potential to engage and expand further our global audience to our development team's passion and vision for creative excellence.

I'll now turn the call over to Karl.

Karl Slatoff -- President

Thanks, Strauss. I'd like to begin by thanking our teams for delivering a strong start to the fiscal year.

Turning now to our recent and upcoming results. On July 23rd Rockstar Games held the grand opening of the Diamond Casino & Resort for Grand Theft Auto Online. The Diamond is the one-stop destination for quality entertainment, high-end living, and a range of experiences that you won't find anywhere else. Players can engage in a Classic Casino activities such as 3-card poker, blackjack, roulette, and a variety of slot machines or watch virtual horse racing at the inside track lounge. Guests looking for high-end fashion can choose from a variety of new clothing accessories in the casino store.

Diamond also offers the most luxurious penthouse residences in all of our Santos and owners have the ability to customize the penthouse and enjoy VIP memberships at the resort including exclusive lounges, high-limit tables, aircraft and limousine services and more. This highly engaging update also features a series of new story-based cooperative missions, open board activities and additional opportunities to earn special rewards.

The Diamond Casino & Resort update was Grand Theft Auto Online's biggest launch ever, delivering record player engagement in daily active users, weekly active users, and monthly active users.

Now that Red Dead Online has exited the beta phase, Rockstar Games will continue to add more free content to the game.

Following the massive content drop in May, later this summer, the world will evolve again with the introduction of specialist roles, including tracking down wanted criminals as a bounty hunter, searching the world for treasure and other exotic items to sell as a collector or building a business as a trader.Throughout the year, Rockstar Games will continue to support both Red Dead Online and Grand Theft Auto Online with many more updates in order to drive engagement and player growth. On July 23rd, 2K released the Rise and Fall expansion pack for Sid Meier's Civilization VI on iOS through Aspyr. 2K also announced that they will bring all of the previously released add-on content for Sid Meier's Civilization VI to both iOS and Nintendo Switch later this year. Civilization VI is the fastest selling title in the history of the series -- of more than 5.5 million units worldwide.

August 27th, Private Division will release Ancestors: The Humankind Odyssey for digital download on PC. The title is the first release from Panache Digital Games, the studio co-founded by Patrice Desilets, the original creative director of the Assassin's Creed franchise. in Ancestors: The Humankind Odyssey, players are challenged to survive and evolve in the harsh yet beautiful land of Africa spanning from 10 million to 2 million years ago.

Ancestors will also be available for digital download on PlayStation 4 and Xbox One in December. On September 6, 2K and Visual Concepts will launch NBA 2K20, the next annual offering from our industry-leading basketball simulation for PlayStation 4, Xbox One, Nintendo Switch, and PC.The title will also be available for Google Stadia when the platform launches in November 2019.

The NBA 2K20, standard and digital deluxe editions will feature 6-time NBA All-Star, 3-time All-NBA First Team, 3-time NBA All-Defensive team, and 2012 Olympic gold medalist Anthony Davis on the cover.The NBA 2K20 Legend Edition will feature three-time NBA Champion, 13 time NBA All-Star, 2008 Olympic gold medalist and 2006 NBA Finals MVP, Dwyane Wade on the cover. NBA 2K20 will feature the most expensive soundtrack in the history of the series with 50 tracks from artists such as Drake, Meek Mill, Billie Eilish, Post Malone and the late Nipsey Hussle. Additional sounds will be dynamically added throughout the year across genres spanning hip-hop R&B, electronic pop and rock. On September 13th, 2K and Gearbox Software will launch Borderlands 3 for PlayStation 4, Xbox One and PC. The title will also be available for Google Stadia when the platform launches in November 2019. The Borderlands franchise, which combines the exhilarating action of a first person shooter with the rich progression and loot systems of a role playing game has sold in more than 48 million units worldwide today.

In June at E3, more than 8,000 consumers are able to experience Borderlands 3 and the reaction was phenomenal. Throughout the show, there was enormous excitement around our massive, high-energy booth with feet -- which featured larger than life statues and photo ops, 100 gameplay stations and a 100-seat demotheater. The global media in attendance lot in Borderlands 3 with more than 50 E3 award wins and nominations including Best-in-Show -- from IGM, game spot, disrupt joint, pars technica -- the E3 Game Critics and more.

In addition, during the month June, 2K worked with our first-party partners to offer an array of low to no cost engagement opportunities including the release of a new TLC campaign for Borderlands 2, entitled Commander Lewis and they fight for sanctuary, which provides the narrative lead into the events of Borderlands 3. In addition, Borderlands: The Handsome Collection was added to Xbox game pass and was included in the PlayStation instant game collection for the month. On PC, our entire Borderlands Quebec handle was made available at a deep discount for our retail partners.

These efforts, together with a launch of the Borderlands Game of the Year edition in April has resulted in selling of over 6 million units of Borderlands titles and over 4 million players enjoying the critically acclaimed command -- level of TLC. Later this month, Borderlands 3 will be a Gamescom in Germany impacts Western Seattle, where we will share details on an expansive post launch content plan that will keep players engaged with new experiences well past September 13th.

The consumer excitement, leading up to next month launch Borderlands 3 is incredibly strong and we very much look forward to the next chapter in the highly successful Borderlands franchise. On October 22nd, 2K's popular WWE series will be back when WWE 2K20 launches for PlayStation 4, Xbox One, and PC. Developed by Visual Concepts, WWE 2K20 includes several franchise first alongside streamline gameplay and a variety of popular modes. Current -- Raw women's Champion Becky Lynch and WWE Superstar Roman Reigns, will service the games cover Superstars and ambassadors for its worldwide marketing campaign Step Inside, which invites players to enter the world of WWE superstars and face a variety of new and exciting challenges in the virtual realm. On October 25th, private Division will released The Outer Worlds, developed by Obsidian Entertainment, the Outer Worlds marks the reunion of Tim Cain and Leonard Boyarsky, the creators of Fallout, who are introducing an entirely new single player Sci-Fi RPG experience. Launching on PlayStation 4, Xbox One, and PC, The Outer Worlds is a dark and witty player-driven story set in a colony at the farthest reaches of the galaxy.

In addition, the title will be coming to the Nintendo Switch following the launch on the other platforms. At E3 in June, The Outer Worlds received 4 nominations from The Game Critics Award for Best of E3 more than any other game and won the award for best original game, throughout fiscal year 2020, we will continue to support our titles with innovative post with launch content designed to drive engagement. In addition, Social Point and 2K will continue to broaden our offerings for mobile devices. Looking ahead to fiscal year 2021, Private Division announced disintegration, a new Sci-Fi first person shooter from V1 Interactive, the studio co-founded by Marcus Lehto former creative director at Bungie and co-creator of Halo.

The title will be fully unveiled later this month at Gamescom. Private Division will have more exciting news and announcements in the coming months. Turning to Esports, the second season of the NBA 2K League, our joint venture with the NBA concluded this past weekend. Just prior to playoffs the League announced that Tencent would be their first distribution partner in China and stream condensed playoffs and finals games to the 100s of millions of daily users across Tencent sports, Tencent Video, and Tencent news. NBA 2K League content has generated more than 243 million video views across all NBA and NBA 2K League, social media platforms. In addition, NBA 2K League viewership both live and on-demand continues to rise, with the second season seeing 34% increase in views overseas over Season 1. We are very excited about the continued progress and growth of the League, which has the long-term potential to enhance engagement and to be a driver of profits for our company.

Looking ahead, we will continue to focus on delivering the highest quality entertainment and to provide new and innovative ways to enhance players experiences with our games. To that end, we are investing heavily in opportunities to grow our scale, increase our presence in mobile and capitalize on emerging distribution channels and business models such as free to play, streaming, and subscription and subscription. The successful execution of the strategy will continue to engage our customers and generate growth and profits for our company over long-term.

I'll now turn the call over to Lainie.

Lainie Goldstein -- Chief Financial Officer

Thanks Karl and good afternoon everyone. Today, we'll discuss our first quarter results and then review our financial outlook for the second quarter and fiscal year 2020. Please note that additional details regarding our actual results and outlook are contained in our press release. As Strauss mentioned fiscal 2020 is off to a terrific start. The first quarter operating results that exceeded our expectation. Total net bookings grew 46% to $422 million as compared to our outlook of $310 million to $360 million. This outperformance is driven primarily by better than expected results from Grand Theft Auto Online and Grand Theft Auto V, NBA 2K19 and the Borderlands franchise.

Recurrent consumer spending grew 55% and accounted for 67% of total net bookings. as compared to our outlook of over 20% growth. The current consumer spending exceeded our expectations due primarily to the outperformance Grand Theft Auto Online and NBA 2K.

Digitally delivered net bookings grew 51% percent and accounted for 91% of the total, as compared to our outlook of over 20% growth. This result exceeded our expectations due to the outperformance of recurrent consumer spending and higher than forecasted mix of digitally delivered full game sales. During the first quarter, 75% of current generation console games were delivered digitally, up from 53% last year.

Turning to some details from our first quarter income statement. GAAP net revenue grew to $540 million and cost of goods sold increased to $241 million. Operating expenses increased by 33% to $247 million due primarily to higher marketing and R&D costs and GAAP net income was $46 million or $0.41 per share as compared to $72 million or $0.62 per share in the first quarter of fiscal 2019. Adjusted operating cash flow increased to nearly $47 million and we ended the period with $1.54 billion in cash and short-term investments.

Now, I will review the highlights of our fiscal 2020 financial outlook. Starting with the second quarter, we project net bookings to range from $860 million to $910 million, up from $583 million in the second quarter last year. The increase is driven primarily by the release of Borderlands 3, the largest contributors to net bookings are expected to be NBA 2K20, Borderlands 3, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online and Social Point's mobile offerings. We project recurrent consumer spending to grow by over 20%. This growth is expected to be driven by NBA 2K, Borderlands 3, and Red Dead Online, as well as modest growth from Grand Theft Auto Online. We expect digitally delivered net bookings to increased by more than 40%. Our forecast assumes that 48% of our current generation console games will be delivered digitally, up from 47% in the same period last year.

That GAAP net revenue to range from $855 million to $905 million and cost of goods sold range from $415 million to $442 million. Operating expenses are expected to range from $312 million to $322 million. At the midpoint, this represents 37% increase over last year driven primarily by higher marketing and R&D costs and GAAP net income is expected to range from $118 million to $130 million or $1.04 to $1.14 per share. For management reporting purposes, we expect our tax rate to be 17% throughout fiscal 2020.

Turning to our outlook for the full fiscal year, we are raising our outlook as a result of better than expected first quarter operating results and increased forecast for the balance of the year. We now expect net bookings to range from $2.6 billion, $2.7 billion, up from our prior outlook of $2.5 billion to $2.6 billion. Compared to the prior year, we expect NBA 2K and WWE 2K to grow, offset by lower results from Red Dead Redemption 2 and Grand Theft Auto V and Grand Theft Auto Online. The largest contributors to net bookings are expected to be NBA 2K, Grand Theft Auto Online and Grand Theft Auto V, Borderlands 3, Red Dead Redemption 2 and Red Dead Online, The Outer Worlds and WWE 2K.

We expect the net bookings breakdown from our labels to be roughly 60% 2K, 30% Rockstar Games, and 10% Private Division, Social Point and other and we forecast our geographic net bookings to be about 65% United States and 35% international. We now expect recurrent consumer spending to increase in the mid teens, up from our prior outlook of low single-digit growth, driven primarily by higher expectations for Grand Theft Auto Online and NBA 2K. Importantly, we now expect combined results from Grand Theft Auto Online and Red Dead Online to grow in fiscal 2020. This growth excludes the value that was allocated to recurrent consumer spending from the Red Dead Redemption 2 premium edition.

We now project digitally delivered net bookings to grow in the high teens. This is up from our prior outlook of low double-digit growth, driven primarily by our increased forecast for recurrent consumer spending and a higher mix of digitally delivered full game South. Our outlook assumes that 55% of current generation console games will be delivered digitally, up from 38% last year. We expect to generate more than $450 million and adjusted operating cash flow and we plan to deploy approximately $90 million for capital expenditures. We expect GAAP net revenue to range from $2.83 billion to $2.93 billion and cost of goods sold to range from $1.3 billion to $1.34 billion.

Total operating expenses are expected to range from $1.07 billion to $1.09 billion. At the midpoint, this represents a 15% increase over the prior year, driven primarily by higher marketing R&D and personnel costs, and we expect GAAP net income to range from $425 million to $454 million or $3.71 to $3.96 per share.

In closing, fiscal 2020 is off to a fantastic start. It's poised to be another outstanding year for Take-Two, driven by the talent of our creative teams and our management's unwavering commitment to operational excellence. We have a strong financial foundation that enables us to pursue a variety of opportunities to enhance our strategic positioning and increase our ability to deliver growth and margin expansion over the long term.

Thank you. I'll now turn the call back to Strauss.

Strauss Zelnick -- Chairman and Chief Executive Officer

Thanks Lainie and Karl. On behalf of the entire management team, I'd like to thank our colleagues for their hard work in delivering an excellent start to the year. To our shareholders, I would like to express our appreciation for your continued support and we'll now take your questions. Operator?

Questions and Answers:

Operator

At this time, we will be conducting a question-and-answer session. [Operator Instructions]. Our first question comes from the line of Eric Handler with MKM Partners. Please proceed with your question.

Eric Handler -- MKM Partners LLC

Good afternoon and thank you for the -- thank you for the question. Two things. First, I wondered if you could talk about Red Dead Redemption Online and maybe you could give a few metrics about engagement or the ramp in revenue that you have seen since the game has come out of beta and gone live. And then secondly, wondered if you could give a little color about the private division. Obviously, you made a recent announcement for one game coming out in fiscal '21, but at this point, how many games have you signed up for Private Division and how big of an opportunity do you see that to be over the next 12 months.

Strauss Zelnick -- Chairman and Chief Executive Officer

Thanks, Eric. This is Strauss. So on Red Dead Online, we exited the Beta phase on May 14th with a huge update and created a lot of opportunity to enjoy the online world. We also introduced Poker at that time. In addition, throughout the first quarter, Rockstar released additional content including new weapons, clothing, emotes, and others, which I mentioned earlier. We're not giving out any statistics; however, we're really thrilled with the sales of Red Dead Redemption 2 at over 25 million units and we're excited about the continuing momentum with Red Dead Online. We've also said that we expect that Rockstar Online, which is both Red Dead Online and Grand Theft Auto Online should be setting a new record this year. So couldn't be more excited. And Karl will talk about Private Division.

Karl Slatoff -- President

So for private Division, we've announced three titles to date. We've been -- Private Division has been in existence for quite some time and we tend to only announced things when we are ready to announce things about games themselves. We have a lot of other activity that we haven't talked about in Private Division, but those are the three games that we've announced, ancestors with Patrice Desilets at Panache games. We have The Outer Worlds with Obsidian and we also have -- we just announced recently of this integration was V1 which is marketplace of a studio. So that's all we have to say, but you should expect more in the future.

Eric Handler -- MKM Partners LLC

Thank you very much.

Operator

Our next question comes from the line of Matthew Thornton with SunTrust. Please proceed with your question.

Matthew Thornton -- SunTrust

Hey, good afternoon and thanks for taking my question and congrats on the strong results. Maybe just on -- first on Borderlands. Can you help us maybe -- as we think about recurrent revenue on Borderlands 3, how can we think about or maybe compare and contrast Borderlands versus Red Dead this year, yes obviously last year, you talked about Red Dead having about 17% attach rate of premium SKUs obviously the beta took a couple of quarters, although there wasn't a lot of MTX per se, it's out there with Borderlands 3 we'll get a DLC but just any comparing and contrasting on the recurrent revenue for the key frontline release there would be really helpful.

And then just I'll throw it out there, any high level commentary you'd be willing to offer on -- on the out years plays would be -- would be great as well? Thanks guys.

Karl Slatoff -- President

Hi, it's Karl. Just in terms of Borderlands 3, we haven't discussed too much about our plan for recurrent consumer spending. But its with most our games, if not all of our games. We have a robust plan around delivering post launching gate content to engage consumers. And it's -- it will be quite a bit different than Red Dead Online. For the most part, we've talked about DLP content, so story-driven mission-based content, there'll be some cosmetics with Borderlands 3. But it is a different kind of experience. As we said before, 2K is going to be announcing more about that in the not-too-distant future. So you'll get some more -- a little bit more clarity on exactly what we have to offer. But it's history and we don't really talk about engagement and attach, but I think most of the people on the call know that Borderlands has a very strong history of delivering a lot of downloadable content and having great success with that.

So obviously, we're very excited about that plan.

Lainie Goldstein -- Chief Financial Officer

About R&D expenses.

Karl Slatoff -- President

Yeah, in terms of our out-years release schedule, we basically disclosed everything that -- we've already disclosed everything that we're talking about now. So there's nothing more to say about that. Other than the fact that we do have -- and you can see in our numbers, we have to talk about R&D expenses going up particularly in this year, which would be indicative of investment in new titles. So that is in fact what's going on. And we've got a very robust maybe our most robust line -- pipeline of all time for new IP, a lot of that driven a Private Division, but there's new IP throughout the entire company as well.

So again, you'll be hearing more about that soon in the future.

Operator

Our next question comes from the line of Ben Schachter with Macquarie Group . Please proceed with your question.

Ben Schachter -- Macquarie Group

Hey, guys congrats on the continued great execution. Few questions, one, you raised the year by more than the beat in the quarter. So what specifically are you seeing and then perhaps related to that Rockstar stated that the casino expansion was the biggest effort ever. And I think they were referring to overall players on day-one and during the week. Can you help translate that into how it impacts your monetization and how that influences guidance for the year. And then separately, Strauss heading into the launch of cloud services, the new console of next year and obviously the continued growth of mobile, how do you think platform fees may evolve, should we expect the platform owners to operate similarly to what we've seen in the past, or do you think things are going to change? Thanks.

Lainie Goldstein -- Chief Financial Officer

For the fiscal year guidance increase, it is driven primarily by the first quarter beat. But we've also updated our forecast for the remainder of the year and the primary increases our GTA V, GTA Online and Borderlands 3.

Karl Slatoff -- President

And in terms of the new casino update. This has been our biggest ever for Grand Theft Auto Online, which is saying a lot and we've seen already is record player engagement in daily, weekly, and monthly active users with a lot of more content coming. So it's looking just fantastic and of course, we're up year-over-year in the quarter, which is great.

Turning to platform fees, look with competition, I think you have to expect that we will do much better in terms of tick rates. You're already seeing that some recently launched platforms have announced lower fees, and if you go from an oligopoly environment to a broadly competitive environment, I think that has to be your expectations, and I would just note that obviously got benefits the company directly as those fees decline and that's not even counting -- that doesn't even count of course the volume, so I think it's going to be sort of the food is both tasty and plentiful, which is nice.

Ben Schachter -- Macquarie Group

Great. If I could sneak one more in -- just Lainie, I think you mentioned capex was $90 million. Could you remind me where it was last year, and what are you spending the bulk on this year? Thanks.

Lainie Goldstein -- Chief Financial Officer

Last year it was $60 million for the year and this year, the increase is driven by some development kits , as well as some build outs some new office throughout the organization.

Operator

Our next question comes from the line of Drew Crum with Stifel. Please proceed with your question.

Drew Crum -- Stifel

Okay. Thanks. Hey guys, good afternoon. So Strauss, understand you guys don't provide specific guidance on individual titles. We're coming off a very strong performance for NBA 2K19, this conceptually, what are your thoughts around perennial titles and I guess sports included and how they perform late in a hardware cycle and whether or not they're more susceptible to weaker sales as consumers look ahead purchasing new consoles and then I guess separately for Lainie, maybe I'll ask Ben's question a little bit differently here, you're guiding Rockstar Online to be up in fiscal '20.Does that include growth for GTA Online? Thanks.

Karl Slatoff -- President

Thanks, Drew for your question. We've been blessed by the amazing work that Visual Concepts and 2K do on NBA 2K and we're having a record setting year again this year with NBA 2K19, which has sold in over 12 million units and recurrent consumer spending was of a 140% in the quarter just amazing with extraordinary growth in average games played and daily active users really across the border and I attribute that to, not only that we have the industry-leading same game, but that there -- you can inhabit this game and enjoy its sort of the lifestyle that it offers for -- in addition to playing the same game itself.

I think 6, 7 years ago, basketball was a 3-month experience and now it's 9-10-month experience and we think it's going to grow to be a full 1-your experience. To address your question, particularly, the last console cycle had no negative influence on us and frankly not really much on the industry, because the entire platform businesses diversifying -- the PC format and particularly since that's now all digital has transformed that business that can be 40% 50% of the release of a console release now if you're out on all those platforms and that will continue to grow. So we expect that the new console generation will be significant net positive and there is nothing about an annualized sports title that would play out differently.

Lainie Goldstein -- Chief Financial Officer

For Rockstar Online, for the fiscal year '20 growth, you have to expect the two games together to grow. The GTA Online, for the full year will be, will be down over last year, Q1 and Q2 are up over the prior year. So, it's still really early in the year, so we'll see how the rest of the year plays out, but right now the 2 together are up.

Drew Crum -- Stifel

Okay. Very helpful. Thanks guys.

Operator

Our next question comes from the line of Brian Nowak with Morgan Stanley. Please proceed with your question.

Brian Nowak -- Morgan Stanley

Thanks for taking my questions. I have two, just to come back to Red Dead Online, another incredible quarter out of GTA Online. I was wondering if you could just talk to us all about any differences you noticed in player engagement or player behavior in Red Dead Online that could change the way you think about the long-term monetization opportunity for game like Red Dead as opposed to a game with GTA, which just continues to surprise to the upside and the second one on mobile, Karl, I think last quarter you talked about, there were 10 games in development at Social Point. Just any update there and how you think about the timing of those releases and what's the impact from those in the full year guide for this year? Thanks.

Karl Slatoff -- President

Well, thanks, with the game like Red Dead, where you can engage significantly with the characters in the games, we think there are wonderful opportunities for players to experience the Red Dead Online World on an ongoing basis, especially as new content has dropped and we don't -- we tend to focus on the experience first, we want to make something that consumers love and engage with and then monetization follows. But we do feel there are and will be plenty of opportunities to create recurrent consumer spending, based on the format of the Red Dead Online World.

Strauss Zelnick -- Chairman and Chief Executive Officer

I mean, in terms of Private -- Sorry not Private Division, Social Point. Yeah. As you know, our two main titles continue to perform very, very well and we have announced that we've had approximately 10 games in development, that hasn't really changed. Games can come in and come out, but that sort of reflects what the capacity is for that division in terms of having and things in different stages of the pipeline at any given point. We did launched Tasty Town in January to a global launch and we also launched Word Life in May and so, not every game makes it, but the good news is we've got games that are actually coming out and are worthy of -- global launch. So we continue down that path and like I said you can expect to see new games coming out of Social Point all the time. But that 10-number is still a good number.

Brian Nowak -- Morgan Stanley

Great. Thanks guys.

Operator

Our next question comes from the line of Todd Juenger with Sanford Bernstein. Please proceed with your question.

Todd Juenger -- Sanford Bernstein

Hi, thanks. Thanks for taking the questions. Notwithstanding the long list of sort of double-digit growth rates in the quarter, I did see those, but I'd love to talk a little bit about growth over the horizon. And I guess Strauss or Karl who -- whoever wants to take it. There's not that many examples I can think of of companies in your business of your size or bigger that are able to organically grow over time consistently. I just wonder, I guess do you guys subscribe to a view that at a certain size it gets harder and harder for a company in your business to grow or do you think that's a false cue and it takes a follow on. I'll just keep it to one or two but can -- does it mean that you guys will have to perhaps start introducing more than one frontline title other than NBA 2K a year, does online services sort of change that need or replace extra releases and that sort of growth algorithm and what does that mean for your organization, just thinking over the horizon of how you keep this going? Thanks.

Karl Slatoff -- President

Well, I really appreciate it. And, yes, you're right -- lot of big numbers as the numbers get bigger, of course, growing at the same rate will become more challenging, but we have this wonderful situation in the marketplace, which is the sector has extraordinary tailwinds. And we expect those to continue and that's driven by the growth in the cohort that enjoys video games, remember people consume for the rest of their lives, the entertainment that they love the age of 17, the video game business is about 30 years old, 35 years old effectively and the average player age today is around 37 or 38. So plenty of room for growth as people age, more people come into the market. But people don't stop playing video games.

So for 20 or 25 years, demographics will grow, will cause the industry to grow and industry participants who do a good job will benefit from that. We're also seeing growth from geographies that we're currently not involved in, for example, Africa and India, to a lesser extent, Russia -- Russia, the Middle East, and of course, China where we currently have a meaningful business, but we think there's a lot of growth opportunity there as well. And third, growth in new business models, new technologies such as streaming and new kinds of games, I would just observe 10 years ago, there was no mobile business and today that's $60 billion marketplace. And at the same time, that sprung up and grown the core console and PC businesses continue to grow at a rapid clip. So this industry is the most rapidly growing industry in entertainment and that's not going to change for the next 10, 20, 25 years.

Now with that backdrop, can we fail to execute, of course we can. So what are we doing about it. First, our focus is on being the most creative, the most innovative, and the most efficient company in the business. We take that incredibly seriously and the reflection of that are the quality of what we do most of the time and the reflection of that is in the financial results that we're able to deliver more often than not. Right now, we are increasing -- to your specific question, we are increasing our investment in development, we are increasing our R&D investment. We do expect to enhance our release schedule. We launched Private Division, we bought Social Point and I think you can expect opportunities are both driven organically and driven inorganically.

So finally, when we took over this company roughly 12 years ago, we had $700 million in net revenue. This year we're projecting to $2.5 billion, $2.6 billion in net bookings. That is primarily organic growth. We've done a few acquisitions, but primarily that's organic growth. And I'd be low to give you a prediction of an annual growth rate. I can't really do that, but what I can tell you is we're duty bound to deliver new IP every year and new releases of franchise IP, we're duty bound to deliver the biggest and best titles in the business and it's our job to create hits and more often than not, we do that. If we do that, we're going to have a great set of results and if we can add on some inorganic growth, which is also part of our current strategy selectively in a highly disciplined way, then we can deliver even more growth, and one of the -- I'd like -- I would like to say, you know you can listen to the words, but it's always better to look at the actions because that's probably what will be repeated and our actions are we deliver hits and we deliver organic growth.

Todd Juenger -- Sanford Bernstein

Really appreciate that. Thanks a lot for the thoughts.

Operator

Our next question comes from the line of Mike Olson with Piper Jaffray. Please proceed with your question.

Mike Olson -- Piper Jaffray

Hey, good afternoon. As you mentioned, GTA is performing better than expected and I'm sure the majority of that outperformance has to do with development of compelling content from Rockstar but just curious, while you don't directly monetize some of the things that have been going on with (inaudible) et cetera. How much of the strong recent interest in the title is from those types of -- kind of outside activities positively impacting GTA Online and also helping maintain player engagement or reengage the base?

Karl Slatoff -- President

We do think it's had a big impact along with the exposure of GTA and the popularity of GTA and Twitch, which has led to this relationship with Twitch Prime that we're super excited about. So it is -- we are all astonished and delighted that 6 years after the initial release Grand Theft Auto V and Grand Theft Auto Online are even bigger cultural phenomena than ever. But as you pointed out, what's that driven by, that's driven by the content that Rockstar continues to deliver to the audience and the respect that Rockstar shows its audience and the desire to keep being on the cutting edge of entertainment. You know that's our goal around here and Rockstar, personifies the execution of that.

Mike Olson -- Piper Jaffray

Absolutely. And then as previously discussed on the call here, you've -- you've got some interesting Private Division titles coming out this year and next. I know it's really hard to say and you don't want to give specific guidance, but maybe just qualitatively, what's kind of the best way for investors to think about potential contribution from those titles like how additive, do you think they can be versus some of your other titles?

Karl Slatoff -- President

The structure of those titles economically are as we -- if we are able to create hits, they have the same pound-for-pound economic benefit than any of our other titles around here. So there is a great opportunity. But that opportunity would be deliver -- delivered to the extent that we deliver hits and we never claim success before we have it ever. That said, our expectations are high. The buzz is very strong. The team there led by Michael Worosz takes the quality part of our strategy exceedingly seriously, they are very disciplined, they are very, very selective and we're grateful that we get to work with some of the best creators on earth.

Mike Olson -- Piper Jaffray

Thank you.

Operator

Our next question comes from the line of Ryan Gee with BAM. Please proceed with your question.

Ryan Gee -- Bank of America

Yes. Hi. Good afternoon. Thanks for taking the questions. So I wanted to understand the accelerating growth for NBA 2K, I know unit sales are up, but beyond that, how much has it performance there been really a function of getting more players to go online versus really growth in ARPU for the existing players and if it is the latter, what were some of the significant changes you guys have done and how much room do you think there is to push that ARPU button higher and then follow-up, I know you guys called out GTA Online has performed really well since the Casino update in terms of player engagement and users. But I don't recall if you said anything specifically about Red Dead coming out of the beta. So 2 months on what are you guys seeing in terms of players and engagement for that title? Thanks.

Karl Slatoff -- President

So yes, NBA 2K19 is in fact actually exceeding our expectations and it's really changed over the year. I don't know if you recall that we weren't necessarily projecting the units would be higher than they were a year-over-iteration of iteration, now we are significantly. We're already nearly 12 million units at this point. So it is certainly growth in units that always helps. And you've got -- we've got a higher base of people playing a game that creates this virtual -- this virtual circle that obviously has a positive effect on RCS as well.

So RCS is up 140% quarter-over-quarter -- year-over-year for this quarter. That's a huge change for us, and yes, of course, the number of units in getting more players in had a lots of doing that, but also I think how we're more effectively engaging folks, because the people are engaged and we give them more things to do, then ultimately that leads to positive things from an economic standpoint and some of the things that we've done, because we've learned from the past is that as Strauss mentioned this before as that we're focused on trying to keep people engaged throughout the entire year. I mean through the entire season, certainly through -- through the end -- through the summer in the playoffs, through the end of the season. And then also through the summer and the way that we do that is -- first of all, I think the NBA 2K League has driven more interest and that engages folks ultimately and the league just ended, a few weeks ago. And also just a different mix of game modes that appeals to a broader audience and play styles, there is promotional activity that we've -- that we've tried over the past few months new player virtual currency bundles and also some late cycle content. So it's really a combination of a lot of things that helps drive people to the game, but also giving them more engagement in the game and if they are more engaged in the game, they're are going to spend more money, ultimately and there's a lot of dry powder there. We're still, I would say, we're still in that early innings of learning how to do this the best.

Strauss Zelnick -- Chairman and Chief Executive Officer

Yeah and with regard to Red Dead Online, we said that post coming out of beta in May, the title has been performing better and better and gaining momentum, but we don't have any more statistics to share except to say that it's going well, continuing to go better. And then we're very, very optimistic.

Ryan Gee -- Bank of America

Okay. Great. And if I could just sneak one more in there. Lainie, I believe that you Borderlands 3, you guys feel better about it. How should we think about the opportunity for that in Fiscal '20 relative to the 25 million plus that I think has sold in life to date that you guys recently disclosed. Thanks.

Lainie Goldstein -- Chief Financial Officer

So Borderlands 2, we've sold in to-date 22 million units. And it's always our aim to grow each sequel of our franchises from iteration-to-iteration and the consumer excitement is incredibly strong. So we're really excited about the title and when we looked at our numbers for the remainder of the year, we were able to bring up the forecast based on what we've been seeing.

Operator

Our next question comes from the line of Mike Ng with Goldman Sachs. Please proceed with your question .

Mike Ng -- Goldman Sachs

Great. Thank you for the question. I just have one for, Karl, and one for Lainie. Karl, you mentioned that the Borderlands franchise sold in about 48 million units to date and I think that's up from 41 million, as recently as February. Could you talk a little bit about how the 7 million units or so sold in the last 5 to 6 months, inform your view about Borderlands 3 if at all and has that increased your confidence about the title. And then for Lainie, I think you mentioned the combined results for RCS for GTA Online and RDR will grow this year, excluding the premium unit headwind, including that would it still grow? Thanks.

Karl Slatoff -- President

So for Borderlands 3, we are very -- about where things are right now and from a bus perspective, but also from an economic performance perspective. We probably would have never anticipated that our catalog sales for the previous Borderlands releases would have accelerated as much as they did and -- come without real effort and real planning. But I think the response has been -- has certainly outweighed our expectations. So I would say if anything in the past couple of months of activity which not just starting with the various marketing team of 2K has undertaken. But the actual -- just the promotional activity that we've had and the reaction from consumers -- where they're actually opening up their checkbooks and spending money that bodes very, very well for Borderlands 3. So we're very excited about that.

Lainie Goldstein -- Chief Financial Officer

So in terms of Rockstar Online. Yes, we said it would grow without the special edition VC allocation and it's not growing at this moment, including it. But it's still early in the year. So we'll see how the year stretches out.

Mike Ng -- Goldman Sachs

Great. Thank you, both.

Operator

Our next question comes from the line of Ray Stochel with Consumer Edge. Please proceed with your question.

Ray Stochel -- Consumer Edge

Great. Thanks for taking my questions . So digital grew and recurrent spending grew a lot, is there any way that we can think about the gross margin contraction in the quarter, it looks like some heavy software development costs and royalties, and then separately on the expense side, is there any timing that you're calling out around marketing either pushed or pulled forward in the period? Thanks.

Lainie Goldstein -- Chief Financial Officer

So in terms of digital and recurrent consumer spending, it is continuing to help grow the gross margin and you'll see that on the full year. In the quarter, we have a new release coming out and with that we have additional software expense and development costs, so that would be a little bit higher in the quarter. In terms of the expenses in Q1, there was a little bit of marketing that didn't happen during the quarter, that's going to get pushed out for the remainder of the year. You'll see the biggest marketing in Q2 and Q3 around our biggest releases as and then it'll come down a little bit in Q4.

Ray Stochel -- Consumer Edge

Great . Thanks again.

Operator

Our next question comes from the line of Clay Griffin with Deutsche Bank. Please proceed with your question.

Clay Griffin -- Deutsche Bank

Hi. Good afternoon. Look, I know you all like for your labels to take the lead and announcing new content and fully appreciate all the color you guys have given on GTA Online for the year, but I guess, can you just help us think about maybe the relative scale and scope of the content as planned for this year, perhaps relative to the past couple of years?

Karl Slatoff -- President

Lots more.

Clay Griffin -- Deutsche Bank

Okay. Great. And then, I guess just with Stadia, can you maybe talk about the relative ease or difficulty in taking Red Dead and even Grand Theft Auto to that platform from a technical perspective, it would seem like the single player experience at the very least could potentially be very successful there?

Karl Slatoff -- President

Yeah, it's technically there -- it's relatively seamless. There are some minor challenges, nothing that we can't surmount. We are supportive of Stadia, we feel really good about that release. We've always said that you want to distinguish a distribution technology from a business model, the business model that we're using is one that's tried and true, which is downloading our streaming for sale. And there is not a lot of friction to make our titles available and Google has been exceedingly helpful. We feel very good about the opportunity. It remains to be seen -- how the platform works, they're awfully talented and very, very committed. So fingers crossed that meets and exceeds consumers expectations

Clay Griffin -- Deutsche Bank

Okay. Great. Thanks.

Operator

Our next question comes from the line of Doug Creutz with Cowen and Company. Please proceed with your question .

Doug Creutz -- Cowen and Company

Hey. Thanks. One of the interesting things about this new console cycle is that you and your peers are going to face the need to migrate these large online gaming communities from one gen to another and one could I think there might be some challenges with that especially for titles who don't come on an annual basis. As far as Red Dead Online and GTA Online, how are you thinking about that transition, do you see any particular challenges or opportunities, is separating the client for the online from the base game something you considered to kind of ease that transition for players, anything you can say and that would be helpful? Thank you.

Karl Slatoff -- President

It's Karl. From a tech perspective, I mean, one thing to keep in mind is generations -- if you look at the releases that happen in the early part of the new generation versus the later part of new generation, it's not necessarily a hugely leap and what you see is generation -- the releases at the end of generation tend to look very different than the releases at the beginning of generation. So when you're talking about track with putting games onto releasing games or preexisting games or even games that existed before and you're doing a sequel. Bring them to the next early on in the generation, there is certainly technical challenge, but you're not necessarily going to be taking advantage of everything that those new generations have to offer. So it's not as disruptive as you may think. It also presents an opportunity to do something more with something that you've got out before, because one thing is for sure, if you just take something and try to coat it over, it's not necessarily going to generate any buzz. And most of the platforms are really talking about backward compatibility this time around as well. So that certainly is not going to resonate.

So it is -- challenges, but it's not as disruptive as you may think.

Strauss Zelnick -- Chairman and Chief Executive Officer

Right. And just, I mean, while it's maybe not a perfect analogy. We launched NBA 2K Online 2 in China and NBA 2K Online, the first version is still in market they are both in market simultaneously and our recurrent consumer spending is way, way up year-over-year. We have the highest registered user base we've ever had. So again, I'm not sure it's a perfect analogy, but when you give people something they love and then you continue to support us, and then potentially offer a new version for -- whether it's a new version of the title itself or new version to reflect, a new distribution platform or technology or console cycle, your audience is going to expand.

And your second question about would you ever consider splitting your purchase of a game from an online community. When you use the word ever, we will consider anything that's good for the consumer and makes sense for us, we're not a rule-based organization. I would just observe though the metrics around free to play are very different than the metrics around console or PC released with a subsequent online event that's ongoing. And it's nice to be in a position where we deliver something that some such high-quality that consumers are prepared happily to pay an entry price and then will stay engaged with a title that on a stand-alone basis could look a lot like a free-to-play title. But by tethering it to the initial release, we pre-qualify the consumer and the economics are obviously vastly more powerful. So we're open minded about any business model in the fullness of time, but I think our current business model is very receptive to the needs of consumers and also speaks to the needs of the producing organization and our creative folks . And as I've said on numerous occasions, whenever you're trying to assess whether a particular business model works and entertainment, look for that intersection of what's good first and foremost, for the consumer. And then secondly, what's good for the producer and the distributor and you have to find the sweet spot that encompasses both of those things or you will have an unstable environment, an environment that either can't support the consumer or can't support the producer or distributor.

Doug Creutz -- Cowen and Company

Thanks. It's very helpful.

Operator

Our next question comes from the line of Alex Giaimo with Jefferies. Please proceed with your question.

Alex Giaimo -- Jefferies

Okay. Thanks for taking the question. Maybe just going back to the question on annualized releases. Do you see an opportunity in the future to bring forward more annualized content outside of the WWE and NBA. I know historically you said you don't necessarily believe in non-sports annualized content, but maybe on the sport side, are there any opportunities you're seeing and maybe some other under-monetized sports that might make sense to pursue. And then quickly if you guys can just provide an update on what you're seeing from the NBA initiatives in China. Thanks.

Karl Slatoff -- President

So what we've said is, we wouldn't expect to annualize any titles other than sports titles. We have represented other sports in the past, we've had baseball, we have boxing, we've had hockey, we currently have golf and we are excited about expanding that business to the extent it makes sense for us and for the consumer, but there really aren't that many powerful sports and right now the REITs are spoken for by some of our competitors. So I don't think you should expect that you're going to see a big array of new titles in the sports environment for us, but we are ambitious and we are open-minded and if REITs became available, I believe we would be at the front of the line given the quality of our development.

In terms of NBA, the NBA in China. Look NBA is beloved in China and NBA 2K Online in China reflects that and we think there is a lot of opportunity for growth, particularly in mobile and as I've said before, I'm of the view and this has got to be a particularly unpopular view today that the Chinese market will soften, will open up, will be more congenial to all forms of Western Entertainment and while that won't happen overnight, we're good participants in the market, we have great local partners, including Tencent. We comply with government restrictions and we think that it is possible that that market will open up and we intend to be first in line to the extent if it does. We also would love to see some engagement with regard to the NBA 2K League in China and we think there is some potential opportunity there with Tencent.

Alex Giaimo -- Jefferies

Thank you.

Operator

Ladies and gentlemen, we have reached the end of the question and answer session. And I would like to turn the call back to management for closing remarks.

Karl Slatoff -- President

We'd like to thank you all for your interest and for joining the call and I think it bears repeating that all of these results are a reflection of the work done by some 5,000 people in our organization worldwide. First and foremost, our extraordinary creative folks across all four of our label groups and then of course, our business folks who distribute and market the products and account for the numbers and provide legal services and keep all the trains running on time. We have an amazing culture here, we have an amazing array of colleagues. We're all aligned, we're all heading in the same direction. We love what we do, we do so with a smile on our faces and all of us here are so grateful for the work of all of our colleagues around the world and I hope that comes across. I just want to also say, it was not clear from this call. We're immensely optimistic about our prospects for the remainder of this year and for the years ahead. It's a challenge every day, but it's a challenge that we relish and we're proud of what we've been able to do so far and we all firmly believe this is just the beginning. So, thanks for joining us today.

Operator

[Operator Closing Remarks].

Duration: 64 minutes

Call participants:

Henry Diamond -- Senior Vice President Investor Relations & Corporate Communications

Strauss Zelnick -- Chairman and Chief Executive Officer

Karl Slatoff -- President

Lainie Goldstein -- Chief Financial Officer

Eric Handler -- MKM Partners LLC

Matthew Thornton -- SunTrust

Ben Schachter -- Macquarie Group

Drew Crum -- Stifel

Brian Nowak -- Morgan Stanley

Todd Juenger -- Sanford Bernstein

Mike Olson -- Piper Jaffray

Ryan Gee -- Bank of America

Mike Ng -- Goldman Sachs

Ray Stochel -- Consumer Edge

Clay Griffin -- Deutsche Bank

Doug Creutz -- Cowen and Company

Alex Giaimo -- Jefferies

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