Question · Q2 2026
Clay Griffin circled back on the mobile business, noting that while net bookings are near 2022 pro forma levels, there's been a significant expansion in margins. He requested a framework for understanding the overall improvement in mobile margins over the past two to three years, considering factors like discipline in titles and efficiency in user acquisition (UA) spend.
Answer
Strauss Zelnick, Chairman and CEO, attributed the margin improvement to better execution, discontinuing inefficient practices, and increased efficiency. He highlighted the alignment of like-minded cultures, a focus on creativity, innovation, and efficiency, and strong leadership. He emphasized that financial results like net bookings and margins are a consequence of these operational improvements, not their primary driver, and pointed to the company's long-term stock appreciation as a result of its strategy.