Activision Blizzard Announces First Quarter 2023 Financial Results
Activision Blizzard reported a strong performance for Q1 2023, with net bookings growing by 25% year-over-year to $1.86 billion. GAAP net revenues reached $2.38 billion, up from $1.77 billion in Q1 2022, while GAAP operating income increased by approximately 70%. The company highlighted continued growth across its major franchises, including Call of Duty and Candy Crush, with mobile bookings showing double-digit growth. Activision Blizzard remains focused on its acquisition deal with Microsoft, which is facing regulatory challenges in the UK. The outlook for Q2 indicates further growth, with projected GAAP revenue and net bookings expected to rise by at least 10% and 30% respectively.
- 25% growth in net bookings year-over-year to $1.86 billion
- 70% increase in GAAP operating income
- GAAP net revenues rose to $2.38 billion from $1.77 billion
- Growth in all five major franchises including Call of Duty and Candy Crush
- Strong pre-sales for Diablo IV and mobile bookings grew double digits
- Q2 guidance expects GAAP revenue to grow at least 10% and net bookings at least 30%
- CMA's decision to block Microsoft's acquisition deal raises competition concerns
- Operating cash flow decreased from $642 million in Q1 2022 to $577 million in Q1 2023
- King's advertising revenue fell due to declines in partner network business
First Quarter Net Bookings Grew
First Quarter Mobile Net Bookings Grew Double-Digits Year-Over-Year
First Quarter GAAP Operating Income Grew Approximately
Financial Metrics
|
|
Q1 |
||||||
(in millions, except EPS) |
|
|
2023 |
|
|
|
2022 |
|
GAAP Net Revenues |
|
$ |
2,383 |
|
|
$ |
1,768 |
|
Impact of GAAP deferralsA |
|
$ |
(528 |
) |
|
$ |
(287 |
) |
|
|
|
|
|
||||
GAAP EPS |
|
$ |
0.93 |
|
|
$ |
0.50 |
|
Non-GAAP EPS |
|
$ |
1.09 |
|
|
$ |
0.64 |
|
Impact of GAAP deferralsA |
|
$ |
(0.49 |
) |
|
$ |
(0.26 |
) |
Please refer to the tables at the back of this earnings release for a reconciliation of the company’s GAAP and non-GAAP results.
For the quarter ended
Please refer to the tables at the back of this press release for a reconciliation of the company’s GAAP and non-GAAP results.
Operating Metrics
For the quarter ended
For the quarter ended
Microsoft Transaction
As announced on
On
Conference Call and Earnings Presentation
In light of the proposed transaction with Microsoft, and as is customary during the pendency of an acquisition,
Selected Business Highlights
First quarter growth was broad-based, with net bookings increasing year-over-year in each of our five largest intellectual properties: Call of Duty®,
Our robust product pipeline, live game opportunity, and focus on operational discipline continue to create a foundation for strong financial performance for the full year. We remain cognizant of risks, including those related to our execution, economic conditions, the labor market and exchange rates, as well as headwinds for our professional esports business model. Nonetheless, we continue to expect at least high-teens year-over-year growth for GAAP revenue in 2023, and at least high-single digit year-over-year growth in net bookings and total segment operating income for the year.
Demand indicators for Diablo IV, which launches on
Activision
-
Activision segment revenue grew
28% year-over-year in the first quarter. Broad-based growth across Call of Duty drove segment operating income to more than triple the year-ago level.
- Building on the record-setting launch of Call of Duty: Modern WarfareTM II last October, premium Call of Duty game sales in the first quarter were significantly higher than in the year-ago quarter. Activision’s expanded teams are delivering substantial post-launch content for both the premium game and the free-to-play WarzoneTM 2.0 experience. New content, modes and gameplay enhancements have had a positive impact on engagement, and Activision is planning more compelling live services for the coming months.
- Call of Duty in-game net bookings on console and PC grew strongly year-over-year in the first quarter. Call of Duty Mobile net bookings also grew year-over-year, driven by enhancements to the player experience and live operations.
-
Activision’s teams are working hard on the next full annual premium release in the blockbuster series and Call of Duty: Warzone MobileTM, both slated for later this year. On
June 20 , Activision will launch Crash Team Rumble, a team-based brawler featuring characters from the beloved Crash universe, on Xbox and PlayStation.
Blizzard
-
Blizzard segment revenue increased
62% year-over-year in the first quarter, with each of Warcraft, Overwatch andDiablo contributing to growth. Segment operating income was broadly stable year-over-year, reflecting higher development and marketing costs, including launch investment ahead of the second quarter release of Diablo IV.
- The Overwatch and World of Warcraft teams delivered substantial in-game content and live operations to excite and sustain their communities following major product launches in the fourth quarter. Following the November release of the DragonflightTM expansion for the Modern game, our World of Warcraft team is delivering more content faster than ever before, and subscriber retention in the West is higher than at the equivalent stage of recent Modern expansions. While Overwatch engagement moderated versus the Overwatch 2 launch quarter, hours played were approximately twice the levels seen prior to the release of the free-to-play experience. Season 3, which launched in February, drove strong retention and consistent player investment versus the prior season.
- Diablo ImmortalTM on mobile and PC also contributed to Blizzard’s first quarter net bookings growth, with the game experiencing stable trends across engagement, retention and player investment. Elsewhere on mobile, Warcraft: Arclight RumbleTM, an action strategy game internally-developed at Blizzard, continues to progress well through regional testing.
-
Diablo IV, the next major installment in the genre-defining series, will launch on PC and console on
June 6 . Public testing of the game in March saw very high engagement and positive feedback, and pre-sales are strong. This ambitious title will serve as the launch for a compelling live service, with regular seasons and story-driven expansions planned to drive engagement for many years to come.
King
-
In the quarter that marked its 20th anniversary, King continues to deliver excellent financial performance, reflecting strong execution and deep expertise in optimizing live operations and user acquisition. First quarter segment revenue grew
8% year-over-year, equivalent to low double-digit growth on a constant currency basisE. King’s first quarter segment operating income was little changed year-over-year due to increased investment in marketing, which is expected to contribute to operating income growth in future quarters.
-
In-game net bookings increased
11% year-over-year, driven by theCandy Crush franchise. King continues to launch and optimize new seasonal content, features and events to engage its community, and attract lapsed and new players. TheMarch 23 launch of the latestCandy Crush All Stars tournament, where players compete inCandy Crush Saga TM for a chance to appear in the live finals, drove incremental growth in installs and player investment at the end of the first quarter and into April.
-
Candy Crush payer numbers again grew year-over-year, andCandy Crush was the top-grossing game franchise in theU.S. app stores1 for the 23rd quarter in a row.
- Amid a weak macro environment for digital advertising, King advertising revenue fell due to declines in business with partner networks. King continues to invest in innovative ad product offerings to fuel further growth in its direct business with brand advertisers.
- King is already starting to see benefits from last June’s acquisition of Peltarion, an AI company. Peltarion’s technology is helping King to accelerate the production and testing of live operations and to offer more relevant game content to players, with the acquisition set to deliver a meaningful financial benefit in its first full year.
Balance Sheet
-
Cash and short-term investments at the end of the first quarter stood at
, and$12.6 billion Activision Blizzard ended the quarter with a net cashF position of approximately .$8.9 billion
Activision Blizzard Disclosure Channels to Disseminate Information
-
For information concerning
Activision Blizzard and its products, content and services, please visit: https://www.activisionblizzard.com. -
For information provided to the investment community, including news releases, events and presentations, and filings with the
U.S. Securities and Exchange Commission , please visit: https://investor.activision.com. -
For the latest information from
Activision Blizzard , including press releases and theActivision Blizzard blog, please visit: https://www.activisionblizzard.com/newsroom. -
For additional information, please follow Activision Blizzard’s and Lulu Cheng Meservey’s (Activision Blizzard’s Executive Vice President, Corporate Affairs and Chief Communications Officer) Twitter accounts: https://twitter.com/atvi_ab and https://twitter.com/lulumeservey. Except with respect to communications regarding
Activision Blizzard , Ms. Meservey’s social media communications from https://twitter.com/lulumeservey are personal communications ofMs. Meservey and are not communications on behalf ofActivision Blizzard .
About
Our mission, to connect and engage the world through epic entertainment, has never been more important. Through communities rooted in our video games we enable hundreds of millions of people to experience joy, thrill and achievement. We enable social connections through the lens of fun, and we foster purpose and a sense of accomplishment through healthy competition. Like sport, but with greater accessibility, our players can find purpose and meaning through competitive gaming. Video games, unlike any other social or entertainment media, have the ability to break down the barriers that can inhibit tolerance and understanding. Celebrating differences is at the core of our culture and ensures we can create games for players of diverse backgrounds in the 190 countries our games are played.
As a member of the Fortune 500 and as a component company of the S&P 500, we have an extraordinary track record of delivering superior shareholder returns for over 30 years. Our sustained success has enabled the company to support corporate social responsibility initiatives that are directly tied to our games. As an example, our Call of Duty Endowment has helped find employment for over 100,000 veterans.
Learn more information about
1 Based on data.ai Intelligence
2 These corporate websites and social media channels, and the contents thereof, are not incorporated by reference into this press release nor deemed filed with the
A Net effect of accounting treatment from revenue deferrals on certain of our online-enabled products. Since certain of our games are hosted online or include significant online functionality that represents a separate performance obligation, we defer the transaction price allocable to the online functionality from the sale of these games and then recognize the attributable revenues over the relevant estimated service periods, which are generally less than a year. The related cost of revenues is deferred and recognized as an expense as the related revenues are recognized. Impact from changes in deferrals refers to the net effect from revenue deferrals accounting treatment for the purposes of revenues, along with, for the purposes of EPS, the related cost of revenues deferrals treatment and the related tax impacts. Internally, management excludes the impact of this change in deferred revenues and related cost of revenues when evaluating the company’s operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. Management believes this is appropriate because doing so enables an analysis of performance based on the timing of actual transactions with our customers. In addition, management believes excluding the change in deferred revenues and the related cost of revenues provides a much more timely indication of trends in our operating results.
B Net bookings is an operating metric that is defined as the net amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and publisher incentives, among others, and is equal to net revenues excluding the impact from deferrals.
C In-game net bookings primarily includes the net amount of microtransactions and downloadable content sold during the period, and is equal to in-game net revenues excluding the impact from deferrals.
D Monthly Active User (“MAU”) Definition: We monitor MAUs as a key measure of the overall size of our user base. MAUs are the number of individuals who accessed a particular game in a given month. We calculate average MAUs in a period by adding the total number of MAUs in each of the months in a given period and dividing that total by the number of months in the period. An individual who accesses two of our games would be counted as two users. In addition, due to technical limitations, for Activision and King, an individual who accesses the same game on two platforms or devices in the relevant period would be counted as two users. For Blizzard, an individual who accesses the same game on two platforms or devices in the relevant period would generally be counted as a single user. In certain instances, we rely on third parties to publish our games. In these instances, MAU data is based on information provided to us by those third parties, or, if final data is not available, reasonable estimates of MAUs for these third-party published games.
E Year-over-year growth on a constant currency basis is calculated by translating current quarter local currency amounts to
-
Total net bookings increased by
25% year-over-year for the first quarter of 2023. On a constant currency basis, total net bookings increased29% year-over-year for the first quarter of 2023 as currency rate changes negatively impacted year-over-year growth in the quarter by 4 percentage points. -
Activision segment net revenues grew by
28% year-over-year, Blizzard segment net revenues grew by62% , and King segment net revenues grew by8% for the first quarter of 2023. On a constant currency year-over-year basis, Activision segment net revenue grew30% , Blizzard segment net revenue grew67% , and King segment net revenue grew11% for the first quarter of 2023, as currency rate changes negatively impacted Activision segment net revenue year-over-growth by 2 percentage points, Blizzard segment net revenue year-over-growth by 5 percentage points, and King segment net revenue year-over-growth by 3 percentage points.
F Net cash is defined as cash and cash equivalents (
Non-GAAP Financial Measures: As a supplement to our financial measures presented in accordance with
- expenses related to share-based compensation, including liability awards accounted for under ASC 718;
- the amortization of intangibles from purchase price accounting;
- fees and other expenses related to mergers and acquisitions, including related debt financings, and refinancing of long-term debt, including penalties and the write off of unamortized discount and deferred financing costs;
- restructuring and related charges;
-
expenses related to the wind down of our partnership with NetEase in
China in regards to licenses covering the publication of several Blizzard titles which expired inJanuary 2023 ; - other non-cash charges from reclassification of certain cumulative translation adjustments into earnings as required by GAAP;
- the income tax adjustments associated with any of the above items (tax impact on non-GAAP pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income under ASC 740, which employs an annual effective tax rate method to the results); and
- significant discrete tax-related items, including amounts related to changes in tax laws, amounts related to the potential or final resolution of tax positions, and other unusual or unique tax-related items and activities.
In the future,
Activision Blizzard’s non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles, and the terms non-GAAP net income, non-GAAP earnings per share, non-GAAP operating margin, and non-GAAP or adjusted EBITDA do not have a standardized meaning. Therefore, other companies may use the same or similarly named measures, but exclude different items, which may not provide investors a comparable view of Activision Blizzard’s performance in relation to other companies.
Management compensates for the limitations resulting from the exclusion of these items by considering the impact of the items separately and by considering Activision Blizzard’s GAAP, as well as non-GAAP, results and outlook, and by presenting the most comparable GAAP measures directly ahead of non-GAAP measures, and by providing a reconciliation that indicates and describes the adjustments made.
Cautionary Note Regarding Forward-looking Statements: The statements contained herein that are not historical facts are forward-looking statements including, but not limited to statements about: (1) projections of revenues, expenses, income or loss, earnings or loss per share, cash flow, or other financial items; (2) statements of our plans and objectives, including those related to releases of products or services; (3) statements of future financial or operating performance, including the impact of tax items thereon; (4) statements regarding the proposed transaction between
We caution that a number of important factors, many of which are beyond our control, could cause our actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements. Such factors include, but are not limited to: the risk that the proposed transaction with Microsoft may not be completed in a timely manner or at all, which may adversely affect our business and the price of our common stock; the failure to satisfy the conditions to the consummation of the proposed transaction with Microsoft, including the receipt of certain governmental and regulatory approvals (which may or may not be received on a timely basis or at all); the occurrence of any event, change, or other circumstance that could give rise to the termination of the Merger Agreement; the effect of the announcement or pendency of the proposed transaction with Microsoft on our business relationships, operating results, and business generally; risks that the proposed transaction with Microsoft disrupts our current plans and operations and potential difficulties in employee retention and recruitment as a result of the proposed transaction with Microsoft; risks related to diverting management’s attention from ongoing business operations; the outcome of any legal proceedings that have been or may be instituted against us related to the Merger Agreement or the transactions contemplated thereby; restrictions during the pendency of the proposed transaction with Microsoft that may impact our ability to pursue certain business opportunities or strategic transactions; uncertainty about current and future economic conditions and other adverse changes in general political conditions in any of the major countries in which we do business; decline in demand for our products and services if general economic conditions decline; fluctuations in currency exchange rates; our ability to deliver popular, high-quality content in a timely manner; negative impacts on our business resulting from concerns regarding our workplace, including associated legal proceedings; our ability to attract, retain, and motivate skilled personnel; future impacts from COVID-19; the level of demand for our games and products; our ability to meet customer expectations with respect to our brands, games, services, and/or business practices; competition; our reliance on a relatively small number of franchises for a significant portion of our revenues and profits; negative impacts from the results of collective bargaining, legal proceedings related to unionization, or campaigns by unions directed at our workforce; our ability to adapt to rapid technological change and allocate our resources accordingly; the increasing importance of digital sales and the risks of that business model; our ability to effectively manage the scope and complexity of our business, including risks related to our professional esports business model; our reliance on third-party platforms, which are also our competitors, for the distribution of products; our dependence on the success and availability of video game consoles manufactured by third parties and our ability to develop commercially successful products for these consoles; the increasing importance of free-to-play games and the risks of that business model; the risks and uncertainties of conducting business outside the
The forward-looking statements contained herein are based on information available to
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(Unaudited) |
||||||||
(Amounts in millions) |
||||||||
Three Months Ended |
||||||||
|
2023 |
2022 |
||||||
Net revenues |
|
|
||||||
Product sales |
$ |
695 |
|
$ |
386 |
|
||
In-game, subscription, and other revenues |
|
1,688 |
|
|
1,382 |
|
||
Total net revenues |
|
2,383 |
|
|
1,768 |
|
||
|
|
|
||||||
Costs and expenses |
|
|
||||||
Cost of revenues—product sales: |
|
|
||||||
Product costs |
|
136 |
|
|
91 |
|
||
Software royalties and amortization |
|
101 |
|
|
81 |
|
||
Cost of revenues—in-game, subscription, and other: |
|
|
||||||
Game operations and distribution costs |
|
363 |
|
|
288 |
|
||
Software royalties and amortization |
|
65 |
|
|
19 |
|
||
Product development |
|
402 |
|
|
346 |
|
||
Sales and marketing |
|
278 |
|
|
252 |
|
||
General and administrative |
|
238 |
|
|
212 |
|
||
Total costs and expenses |
|
1,583 |
|
|
1,289 |
|
||
|
|
|
||||||
Operating income |
|
800 |
|
|
479 |
|
||
|
|
|
||||||
Interest expense from debt |
|
27 |
|
|
27 |
|
||
Other (income) expense, net |
|
(122 |
) |
|
(13 |
) |
||
Income before income tax expense |
|
895 |
|
|
465 |
|
||
|
|
|
||||||
Income tax expense |
|
155 |
|
|
70 |
|
||
|
|
|
||||||
Net income |
$ |
740 |
|
$ |
395 |
|
||
|
|
|
||||||
Basic earnings per common share |
$ |
0.94 |
|
$ |
0.51 |
|
||
Weighted average common shares outstanding |
|
785 |
|
|
780 |
|
||
|
|
|
||||||
Diluted earnings per common share |
$ |
0.93 |
|
$ |
0.50 |
|
||
Weighted average common shares outstanding assuming dilution |
|
792 |
|
|
786 |
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(Amounts in millions) |
||||||||
|
|
|
||||||
Assets |
|
|
||||||
Current assets |
|
|
||||||
Cash and cash equivalents |
$ |
9,236 |
|
$ |
7,060 |
|
||
Held-to-maturity investments |
|
3,280 |
|
|
4,932 |
|
||
Accounts receivable, net |
|
764 |
|
|
1,204 |
|
||
Software development |
|
715 |
|
|
640 |
|
||
Other current assets |
|
524 |
|
|
633 |
|
||
Total current assets |
|
14,519 |
|
|
14,469 |
|
||
Software development |
|
622 |
|
|
641 |
|
||
Property and equipment, net |
|
199 |
|
|
193 |
|
||
Deferred income taxes, net |
|
1,180 |
|
|
1,201 |
|
||
Other assets |
|
507 |
|
|
508 |
|
||
Intangible assets, net |
|
437 |
|
|
442 |
|
||
|
|
9,929 |
|
|
9,929 |
|
||
Total assets |
$ |
27,393 |
|
$ |
27,383 |
|
||
|
|
|
||||||
Liabilities and Shareholders' Equity |
|
|
||||||
Current liabilities |
|
|
||||||
Accounts payable |
$ |
177 |
|
$ |
324 |
|
||
Deferred revenues |
|
1,653 |
|
|
2,088 |
|
||
Accrued expenses and other liabilities |
|
987 |
|
|
1,143 |
|
||
Total current liabilities |
|
2,817 |
|
|
3,555 |
|
||
Long-term debt, net |
|
3,611 |
|
|
3,611 |
|
||
Deferred income taxes, net |
|
32 |
|
|
158 |
|
||
Other liabilities |
|
818 |
|
|
816 |
|
||
Total liabilities |
|
7,278 |
|
|
8,140 |
|
||
|
|
|
||||||
Shareholders' equity |
|
|
||||||
Common stock |
|
— |
|
|
— |
|
||
Additional paid-in capital |
|
12,396 |
|
|
12,260 |
|
||
|
|
(5,563 |
) |
|
(5,563 |
) |
||
Retained earnings |
|
13,911 |
|
|
13,171 |
|
||
Accumulated other comprehensive loss |
|
(629 |
) |
|
(625 |
) |
||
Total shareholders’ equity |
|
20,115 |
|
|
19,243 |
|
||
Total liabilities and shareholders’ equity |
$ |
27,393 |
|
$ |
27,383 |
|
|
||||||||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION |
||||||||||||||||||
(Amounts in millions) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year over Year |
||||||
|
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
% Increase (Decrease) |
||||||
Cash Flow Data |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Cash Flow |
|
$ |
642 |
|
$ |
198 |
|
$ |
257 |
|
$ |
1,123 |
|
$ |
577 |
|
(10 |
) % |
Capital Expenditures |
|
|
15 |
|
|
37 |
|
|
15 |
|
|
24 |
|
|
37 |
|
147 |
|
Non-GAAP Free Cash Flow1 |
|
$ |
627 |
|
$ |
161 |
|
$ |
242 |
|
$ |
1,099 |
|
$ |
540 |
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Cash Flow - TTM2 |
|
$ |
2,212 |
|
$ |
2,022 |
|
$ |
1,758 |
|
$ |
2,220 |
|
$ |
2,155 |
|
(3 |
) |
Capital Expenditures - TTM2 |
|
|
73 |
|
|
96 |
|
|
88 |
|
|
91 |
|
|
113 |
|
55 |
|
Non-GAAP Free Cash Flow1 - TTM2 |
|
$ |
2,139 |
|
$ |
1,926 |
|
$ |
1,670 |
|
$ |
2,129 |
|
$ |
2,042 |
|
(5 |
) % |
1 |
Non-GAAP free cash flow represents operating cash flow minus capital expenditures. |
|
2 |
TTM represents trailing twelve months. Operating Cash Flow for three months ended |
|
||||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES |
||||||||||||||||||||||||||||||||||||
(Amounts in millions, except per share data) |
||||||||||||||||||||||||||||||||||||
Three Months Ended |
Net Revenues |
Cost of
|
Cost of
|
Cost of Revenues—In-
|
Cost of Revenues—In-
|
Product
|
Sales and
|
General and
|
Total Costs and
|
|||||||||||||||||||||||||||
GAAP Measurement |
$ |
2,383 |
|
$ |
136 |
|
$ |
101 |
|
$ |
363 |
|
$ |
65 |
|
$ |
402 |
|
$ |
278 |
|
$ |
238 |
|
$ |
1,583 |
|
|||||||||
Share-based compensation1 |
|
— |
|
|
— |
|
|
(19 |
) |
|
(1 |
) |
|
(4 |
) |
|
(54 |
) |
|
(9 |
) |
|
(37 |
) |
|
(124 |
) |
|||||||||
Amortization of intangible assets2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
|
(4 |
) |
|||||||||
Partnership wind down and related costs3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
(4 |
) |
|||||||||
Merger and acquisition-related fees and other expenses4 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(21 |
) |
|
(21 |
) |
|||||||||
Non-GAAP Measurement |
$ |
2,383 |
|
$ |
136 |
|
$ |
82 |
|
$ |
362 |
|
$ |
58 |
|
$ |
348 |
|
$ |
269 |
|
$ |
175 |
|
$ |
1,430 |
|
|||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(528 |
) |
$ |
(20 |
) |
$ |
(32 |
) |
$ |
(7 |
) |
$ |
2 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(57 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Operating
|
Net Income |
Basic Earnings
|
Diluted Earnings
|
|
|
|
|
|
|||||||||||||||||||||||||||
GAAP Measurement |
$ |
800 |
|
$ |
740 |
|
$ |
0.94 |
|
$ |
0.93 |
|
|
|
|
|
|
|||||||||||||||||||
Share-based compensation1 |
|
124 |
|
|
124 |
|
|
0.16 |
|
|
0.16 |
|
|
|
|
|
|
|||||||||||||||||||
Amortization of intangible assets2 |
|
4 |
|
|
4 |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
|
|
|||||||||||||||||||
Partnership wind down and related costs3 |
|
4 |
|
|
4 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|||||||||||||||||||
Merger and acquisition-related fees and other expenses4 |
|
21 |
|
|
21 |
|
|
0.03 |
|
|
0.03 |
|
|
|
|
|
|
|||||||||||||||||||
Income tax impacts from items above6 |
|
— |
|
|
(27 |
) |
|
(0.04 |
) |
|
(0.04 |
) |
|
|
|
|
|
|||||||||||||||||||
Non-GAAP Measurement |
$ |
953 |
|
$ |
866 |
|
$ |
1.10 |
|
$ |
1.09 |
|
|
|
|
|
|
|||||||||||||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(471 |
) |
$ |
(393 |
) |
$ |
(0.50 |
) |
$ |
(0.49 |
) |
|
|
|
|
|
1 |
|
Reflects expenses related to share-based compensation. |
2 |
|
Reflects amortization of intangible assets from purchase price accounting. |
3 |
|
Reflects expenses related to the wind down of our partnership with NetEase, Inc. ("NetEase") in Mainland China in regards to licenses covering the publication of several Blizzard titles which expired in |
4 |
|
Reflects fees and other expenses related to our proposed transaction with Microsoft Corporation ("Microsoft"), primarily legal and advisory fees. |
5 |
|
Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products, including the effects of taxes. |
6 |
|
Reflects the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income under ASC 740, which employs an annual effective tax rate method to the results. |
The GAAP and non-GAAP earnings per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding. |
|
|||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES |
|||||||||||||||||||||||||||||||||||
(Amounts in millions, except per share data) |
|||||||||||||||||||||||||||||||||||
Three Months Ended |
Net Revenues |
Cost of
|
Cost of
|
Cost of
|
Cost of
|
Product
|
Sales and
|
General and
|
Total Costs and
|
||||||||||||||||||||||||||
GAAP Measurement |
$ |
1,768 |
|
$ |
91 |
|
$ |
81 |
|
$ |
288 |
|
$ |
19 |
$ |
346 |
|
$ |
252 |
|
$ |
212 |
|
$ |
1,289 |
|
|||||||||
Share-based compensation1 |
|
— |
|
|
— |
|
|
(4 |
) |
|
(2 |
) |
|
— |
|
(53 |
) |
|
(15 |
) |
|
(24 |
) |
|
(98 |
) |
|||||||||
Amortization of intangible assets2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(2 |
) |
|
(2 |
) |
|||||||||
Restructuring and related costs3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
2 |
|
|
2 |
|
|||||||||
Merger and acquisition-related fees and other expenses4 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(32 |
) |
|
(32 |
) |
|||||||||
Non-GAAP Measurement |
$ |
1,768 |
|
$ |
91 |
|
$ |
77 |
|
$ |
286 |
|
$ |
19 |
$ |
293 |
|
$ |
237 |
|
$ |
156 |
|
$ |
1,159 |
|
|||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(287 |
) |
$ |
(14 |
) |
$ |
(38 |
) |
$ |
(2 |
) |
$ |
2 |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(52 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
Operating
|
Net Income |
Basic Earnings
|
Diluted Earnings
|
|
|
|
|
|
||||||||||||||||||||||||||
GAAP Measurement |
$ |
479 |
|
$ |
395 |
|
$ |
0.51 |
|
$ |
0.50 |
|
|
|
|
|
|
||||||||||||||||||
Share-based compensation1 |
|
98 |
|
|
98 |
|
|
0.13 |
|
|
0.13 |
|
|
|
|
|
|
||||||||||||||||||
Amortization of intangible assets2 |
|
2 |
|
|
2 |
|
|
— |
|
|
— |
|
|
|
|
|
|
||||||||||||||||||
Restructuring and related costs3 |
|
(2 |
) |
|
(2 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
||||||||||||||||||
Merger and acquisition-related fees and other expenses4 |
|
32 |
|
|
32 |
|
|
0.04 |
|
|
0.04 |
|
|
|
|
|
|
||||||||||||||||||
Income tax impacts from items above6 |
|
— |
|
|
(24 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
|
|
|
|
||||||||||||||||||
Non-GAAP Measurement |
$ |
609 |
|
$ |
501 |
|
$ |
0.64 |
|
$ |
0.64 |
|
|
|
|
|
|
||||||||||||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(235 |
) |
$ |
(204 |
) |
$ |
(0.26 |
) |
$ |
(0.26 |
) |
|
|
|
|
|
1 |
Reflects expenses related to share-based compensation. |
|
2 |
Reflects amortization of intangible assets from purchase price accounting. |
|
3 |
Reflects restructuring initiatives. |
|
4 |
Reflects fees and other expenses related to our proposed transaction with Microsoft, primarily legal and advisory fees. |
|
5 |
Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products, including the effects of taxes. |
|
6 |
Reflects the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income under ASC 740, which employs an annual effective tax rate method to the results. |
|
The GAAP and non-GAAP earnings per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding. |
|
||||||||||||||||||||||||||||
OPERATING SEGMENTS INFORMATION |
||||||||||||||||||||||||||||
(Amounts in millions) |
||||||||||||||||||||||||||||
Three Months Ended |
|
|
|
$ Increase / (Decrease) |
||||||||||||||||||||||||
|
|
Activision |
|
Blizzard |
|
King |
|
Total |
|
Activision |
|
Blizzard |
|
King |
|
Total |
||||||||||||
Segment Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenues from external customers |
|
$ |
580 |
|
$ |
435 |
|
$ |
739 |
|
$ |
1,754 |
|
|
$ |
127 |
|
$ |
170 |
|
|
$ |
57 |
|
|
$ |
354 |
|
Intersegment net revenues1 |
|
|
— |
|
|
8 |
|
|
— |
|
|
8 |
|
|
|
— |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Segment net revenues |
|
$ |
580 |
|
$ |
443 |
|
$ |
739 |
|
$ |
1,762 |
|
|
$ |
127 |
|
$ |
169 |
|
|
$ |
57 |
|
|
$ |
353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment operating income |
|
$ |
179 |
|
$ |
56 |
|
$ |
241 |
|
$ |
476 |
|
|
$ |
120 |
|
$ |
3 |
|
|
$ |
(2 |
) |
|
$ |
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Margin |
|
|
|
|
|
|
|
|
27.0 |
% |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Activision |
|
Blizzard |
|
King |
|
Total |
|
|
|
|
|
|
|
|
||||||||||||
Segment Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenues from external customers |
|
$ |
453 |
|
$ |
265 |
|
$ |
682 |
|
$ |
1,400 |
|
|
|
|
|
|
|
|
|
|||||||
Intersegment net revenues1 |
|
|
— |
|
|
9 |
|
|
— |
|
|
9 |
|
|
|
|
|
|
|
|
|
|||||||
Segment net revenues |
|
$ |
453 |
|
$ |
274 |
|
$ |
682 |
|
$ |
1,409 |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment operating income |
|
$ |
59 |
|
$ |
53 |
|
$ |
243 |
|
$ |
355 |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Margin |
|
|
|
|
|
|
|
|
25.2 |
% |
|
|
|
|
|
|
|
|
1 |
Intersegment revenues reflect licensing and service fees charged between segments. |
Our operating segments are consistent with the manner in which our operations are reviewed and managed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). The CODM reviews segment performance exclusive of: the impact of the change in deferred revenues and related cost of revenues with respect to certain of our online-enabled games; share-based compensation expense (including liability awards accounted for under ASC 718); amortization of intangible assets as a result of purchase price accounting; fees and other expenses (including legal fees, costs, expenses and accruals) related to acquisitions, associated integration activities, and financings; certain restructuring and related costs; certain partnership wind down related costs; and other non-cash charges. See the following page for the reconciliation tables of segment revenues and operating income to consolidated net revenues and consolidated income before income tax expense.
Our operating segments are also consistent with our internal organization structure, the way we assess operating performance and allocate resources, and the availability of separate financial information. We do not aggregate operating segments.
|
||||||||
OPERATING SEGMENTS INFORMATION |
||||||||
(Amounts in millions) |
||||||||
|
Three Months Ended |
|||||||
|
2023 |
2022 |
||||||
Reconciliation to consolidated net revenues: |
|
|
||||||
Segment net revenues |
$ |
1,762 |
|
$ |
1,409 |
|
||
Revenues from non-reportable segments1 |
|
101 |
|
|
81 |
|
||
Net effect from recognition (deferral) of deferred net revenues2 |
|
528 |
|
|
287 |
|
||
Elimination of intersegment revenues3 |
|
(8 |
) |
|
(9 |
) |
||
Consolidated net revenues |
$ |
2,383 |
|
$ |
1,768 |
|
||
|
|
|
||||||
Reconciliation to consolidated income before income tax expense: |
|
|
||||||
Segment operating income |
$ |
476 |
|
$ |
355 |
|
||
Operating income (loss) from non-reportable segments1 |
|
6 |
|
|
19 |
|
||
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues2 |
|
471 |
|
|
235 |
|
||
Share-based compensation expense4 |
|
(124 |
) |
|
(98 |
) |
||
Amortization of intangible assets |
|
(4 |
) |
|
(2 |
) |
||
Restructuring and related costs5 |
|
— |
|
|
2 |
|
||
Partnership wind down and related costs6 |
|
(4 |
) |
|
— |
|
||
Merger and acquisition-related fees and other expenses7 |
|
(21 |
) |
|
(32 |
) |
||
Consolidated operating income |
|
800 |
|
|
479 |
|
||
Interest expense from debt |
|
27 |
|
|
27 |
|
||
Other (income) expense, net |
|
(122 |
) |
|
(13 |
) |
||
Consolidated income before income tax expense |
$ |
895 |
|
$ |
465 |
|
1 |
Includes other income and expenses outside of our reportable segments, including our distribution business and unallocated corporate income and expenses. |
|
2 |
Reflects the net effect from (deferral) of revenues and recognition of deferred revenues, along with related cost of revenues, on certain of our online-enabled products. |
|
3 |
Intersegment revenues reflect licensing and service fees charged between segments. |
|
4 |
Reflects expenses related to share-based compensation. |
|
5 |
Reflects restructuring initiatives. |
|
6 |
Reflects expenses related to the wind down of our partnership with NetEase in Mainland China in regards to licenses covering the publication of several Blizzard titles which expired in |
|
7 |
Reflects fees and other expenses related to our proposed transaction with Microsoft, primarily legal and advisory fees. |
|
||||||||||||||||||||
NET REVENUES BY DISTRIBUTION CHANNEL |
||||||||||||||||||||
(Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
|
|
$ Increase
|
% Increase
|
||||||||||||||||
|
Amount |
% of Total1 |
Amount |
% of Total1 |
||||||||||||||||
Net Revenues by Distribution Channel |
|
|
|
|
|
|
||||||||||||||
Digital online channels2 |
$ |
2,157 |
|
91 |
% |
$ |
1,589 |
|
90 |
% |
$ |
568 |
36 |
% |
||||||
Retail channels |
|
104 |
|
4 |
|
|
85 |
|
5 |
|
|
19 |
22 |
|
||||||
Other3 |
|
122 |
|
5 |
|
|
94 |
|
5 |
|
|
28 |
30 |
|
||||||
Total consolidated net revenues |
$ |
2,383 |
|
100 |
% |
$ |
1,768 |
|
100 |
% |
$ |
615 |
35 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||
Change in deferred revenues4 |
|
|
|
|
|
|
||||||||||||||
Digital online channels2 |
$ |
(448 |
) |
|
$ |
(222 |
) |
|
|
|
||||||||||
Retail channels |
|
(69 |
) |
|
|
(64 |
) |
|
|
|
||||||||||
Other3 |
|
(11 |
) |
|
|
(1 |
) |
|
|
|
||||||||||
Total changes in deferred revenues |
$ |
(528 |
) |
|
$ |
(287 |
) |
|
|
|
1 |
The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 |
Net revenues from Digital online channels represent revenues from digitally-distributed downloadable content, microtransactions, subscriptions, and products, as well as licensing royalties. |
|
3 |
Net revenues from Other primarily include revenues from our distribution business, the |
|
4 |
Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
NET REVENUES BY PLATFORM (Amounts in millions) |
|||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||
|
|
|
|
|
$ Increase (Decrease) |
|
% Increase (Decrease) |
||||||||||||
|
Amount |
|
% of Total1 |
|
Amount |
|
% of Total1 |
|
|
||||||||||
Net Revenues by Platform |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Console |
$ |
639 |
|
|
27 |
% |
|
$ |
484 |
|
|
27 |
% |
|
$ |
155 |
|
32 |
% |
PC |
|
666 |
|
|
28 |
|
|
|
383 |
|
|
22 |
|
|
|
283 |
|
74 |
|
Mobile and ancillary2 |
|
956 |
|
|
40 |
|
|
|
807 |
|
|
46 |
|
|
|
149 |
|
18 |
|
Other3 |
|
122 |
|
|
5 |
|
|
|
94 |
|
|
5 |
|
|
|
28 |
|
30 |
|
Total consolidated net revenues |
$ |
2,383 |
|
|
100 |
% |
|
$ |
1,768 |
|
|
100 |
% |
|
$ |
615 |
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in deferred revenues4 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Console |
$ |
(282 |
) |
|
|
|
$ |
(221 |
) |
|
|
|
|
|
|
||||
PC |
|
(203 |
) |
|
|
|
|
(80 |
) |
|
|
|
|
|
|
||||
Mobile and ancillary2 |
|
(32 |
) |
|
|
|
|
15 |
|
|
|
|
|
|
|
||||
Other3 |
|
(11 |
) |
|
|
|
|
(1 |
) |
|
|
|
|
|
|
||||
Total changes in deferred revenues |
$ |
(528 |
) |
|
|
|
$ |
(287 |
) |
|
|
|
|
|
|
1 |
|
The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
2 |
|
Net revenues from Mobile and ancillary primarily include revenues from mobile devices. |
3 |
|
Net revenues from Other primarily include revenues from our distribution business, the |
4 |
|
Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
||||||||||||||||||||
NET REVENUES BY GEOGRAPHIC REGION |
||||||||||||||||||||
(Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
|
|
$ Increase
|
% Increase
|
||||||||||||||||
|
Amount |
% of Total1 |
Amount |
% of Total1 |
||||||||||||||||
Net Revenues by |
|
|
|
|
|
|
||||||||||||||
|
$ |
1,378 |
|
58 |
% |
$ |
1,016 |
|
57 |
% |
$ |
362 |
36 |
% |
||||||
EMEA2 |
|
699 |
|
29 |
|
|
527 |
|
30 |
|
|
172 |
33 |
|
||||||
|
|
306 |
|
13 |
|
|
225 |
|
13 |
|
|
81 |
36 |
|
||||||
Total consolidated net revenues |
$ |
2,383 |
|
100 |
% |
$ |
1,768 |
|
100 |
% |
$ |
615 |
35 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||
Change in deferred revenues3 |
|
|
|
|
|
|
||||||||||||||
|
$ |
(323 |
) |
|
$ |
(174 |
) |
|
|
|
||||||||||
EMEA2 |
|
(164 |
) |
|
|
(93 |
) |
|
|
|
||||||||||
|
|
(41 |
) |
|
|
(20 |
) |
|
|
|
||||||||||
Total changes in deferred revenues |
$ |
(528 |
) |
|
$ |
(287 |
) |
|
|
|
1 |
The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 |
Net revenues from EMEA consist of the |
|
3 |
Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
||||||||||||||||||||
EBITDA AND ADJUSTED EBITDA |
||||||||||||||||||||
(Amounts in millions) |
||||||||||||||||||||
|
|
|
|
|
Trailing Twelve
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
GAAP Net Income |
$ |
280 |
|
$ |
435 |
|
$ |
403 |
|
$ |
740 |
|
$ |
1,858 |
|
|||||
Interest expense from debt |
|
27 |
|
|
27 |
|
|
27 |
|
|
27 |
|
|
108 |
|
|||||
Other income (expense), net |
|
(10 |
) |
|
(42 |
) |
|
(117 |
) |
|
(122 |
) |
|
(291 |
) |
|||||
Provision for income taxes |
|
41 |
|
|
65 |
|
|
55 |
|
|
155 |
|
|
316 |
|
|||||
Depreciation and amortization |
|
25 |
|
|
29 |
|
|
28 |
|
|
21 |
|
|
103 |
|
|||||
EBITDA |
|
363 |
|
|
514 |
|
|
396 |
|
|
821 |
|
|
2,094 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Share-based compensation expense1 |
|
100 |
|
|
102 |
|
|
161 |
|
|
124 |
|
|
487 |
|
|||||
Restructuring and related costs2 |
|
(3 |
) |
|
2 |
|
|
— |
|
|
— |
|
|
(1 |
) |
|||||
Partnership wind down and related costs3 |
|
— |
|
|
— |
|
|
27 |
|
|
4 |
|
|
31 |
|
|||||
Merger and acquisition-related fees and other expenses4 |
|
16 |
|
|
10 |
|
|
10 |
|
|
21 |
|
|
57 |
|
|||||
Adjusted EBITDA |
$ |
476 |
|
$ |
628 |
|
$ |
594 |
|
$ |
970 |
|
$ |
2,668 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Change in deferred net revenues and related cost of revenues5 |
$ |
(1 |
) |
$ |
25 |
|
$ |
1,059 |
|
$ |
(471 |
) |
$ |
612 |
|
1 |
Reflects expenses related to share-based compensation. |
|
2 |
Reflects restructuring initiatives. |
|
3 |
Reflects expenses related to the wind down of our partnership with NetEase in Mainland China in regards to licenses covering the publication of several Blizzard titles which expired in |
|
4 |
Reflects fees and other expenses related to our proposed transaction with Microsoft, primarily legal and advisory fees. |
|
5 |
Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products. |
|
||||||||||||
OPERATING METRICS |
||||||||||||
(Amounts in millions) |
||||||||||||
Net Bookings1 |
||||||||||||
|
Three Months Ended |
|||||||||||
|
2023 |
2022 |
$ Increase
|
% Increase
|
||||||||
Net bookings1 |
$ |
1,855 |
$ |
1,481 |
$ |
374 |
25 |
% |
||||
In-game net bookings2 |
$ |
1,289 |
$ |
1,011 |
$ |
278 |
27 |
% |
1 |
We monitor net bookings as a key operating metric in evaluating the performance of our business because it enables an analysis of performance based on the timing of actual transactions with our customers and provides more timely indications of trends in our operating results. Net bookings is the net amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and publisher incentives, among others. Net bookings is equal to net revenues excluding the impact from deferrals. |
|
2 |
In-game net bookings primarily includes the net amount of downloadable content and microtransactions sold during the period, and is equal to in-game net revenues excluding the impact from deferrals. |
Monthly Active Users3 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Activision |
100 |
|
94 |
|
97 |
|
111 |
|
98 |
|
Blizzard |
22 |
|
27 |
|
31 |
|
45 |
|
27 |
|
King |
250 |
|
240 |
|
240 |
|
233 |
|
243 |
|
Total MAUs |
372 |
|
361 |
|
368 |
|
389 |
|
368 |
3 |
We monitor monthly active users (“MAUs”) as a key measure of the overall size of our user base. MAUs are the number of individuals who accessed a particular game in a given month. We calculate average MAUs in a period by adding the total number of MAUs in each of the months in a given period and dividing that total by the number of months in the period. An individual who accesses two of our games would be counted as two users. In addition, due to technical limitations, for Activision and King, an individual who accesses the same game on two platforms or devices in the relevant period would be counted as two users. For Blizzard, an individual who accesses the same game on two platforms or devices in the relevant period would generally be counted as a single user. In certain instances, we rely on third parties to publish our games. In these instances, MAU data is based on information provided to us by those third parties, or, if final data is not available, reasonable estimates of MAUs for these third-party published games. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230425006204/en/
Investors and Analysts:
ir@activisionblizzard.com
or
Press:
pr@activisionblizzard.com
Source:
FAQ
What were Activision Blizzard's Q1 2023 earnings results?
How did the acquisition by Microsoft impact Activision Blizzard?
What is the forecast for Activision Blizzard in Q2 2023?
How did mobile gaming perform for Activision Blizzard in Q1 2023?