Activision Blizzard (ATVI) 5 May 202020 Q1 Earnings call transcript

Good afternoon and welcome to the Activision Blizzard First Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note today’s event is being recorded.

At this time, I’d like to turn the conference call over to Chris Hickey, Senior Vice President of Investor Relations. ahead. go please Sir,

Dennis thank President quarter joining also President us us. XXXX Daniel President for and COO; Kotick, and of Blizzard; and Activision Businesses. of Activision; Emerging are today King J. Blizzard’s of join CEO; And and and President first conference Rob Alegre, Sakhnini, Company’s you afternoon will CFO us President Kostich, for Q&A, for Bobby Durkin, of Good Humam call. Brack, With Allen

everyone during statements company historical on may ultimately this to remind presentation will to this making statements be not to to we as prove based like are be date them of be facts. presentation. would I true, the that the information incorrect. available are in And they call of believe that while forward-looking The this we

factors and risk which results the factors and XXXX showing. slide those These of COVID-XX SEC quarter is of XXXX actual number our materially shortly, other first in the future our Form including XX-Q, Report that could include any filings, on cause company’s from be to forward-looking those statements. differ impact Annual on XX-K filed expressed and the future A the circumstances the discussed will in pandemic, our

no statements undertakes to to company after obligation revisions May forward-looking any XXXX. X, The reflect release circumstances to any publicly today, events or

costs, GAAP measures, both final to benefits financial amounts expenses items of fees, charges, assets excluded related tax call. and tax-related related and the expenses discrete and unusual in related potential measures laws, to these other expenses intangible non-GAAP positions restructuring of amounts related acquisitions, present tax tax-related or unique the items, items, to activities. compensation, refinancings, the and the or debt which to expenses accruals, associated and exclude resolution significant including and and tax including financial changes will impact provide of We to amortization during stock-based non-GAAP and related the We legal related of financings

These or posted isolation investment be intended non-GAAP are consider a release, We considered www.activisionblizzard.com substitute a to decision. for to on non-GAAP GAAP an superior non-GAAP GAAP before full reconciliation, to refer to not is further and our Please results. in measures. earnings measures our making measures investors with which to for our all respect from, explanation as encourage to

can There and the you which is the an be to which access posted call. also webcast presentation, earnings will website following with the

introduce to like Bobby our I’d now, And Kotick. CEO,

for thank Chris, us you, today. joining all and Thank you

suffered this first Let me have during to difficult who time. convey those our sympathies

of of few contracted members While members. been the a passing and family own our very COVID-XX, have of number impacted have the team our by employees illness

prayers are everyone else and thoughts Our them by the and affected with pandemic.

awestruck their through I’ve of challenges childcare. the healthcare managing during to the been from But employees families, last months honestly by strength and our two unprecedented

world continued connected teams as to the with world so have Our of around keep home benefits and our ingenuity connection gaming faced unexpected around million the without incredible difficulties, and the ensure and and players still XXX at shown many that the social a interruption. even resilience. joy, the our safely way has engaged And employees

create deliveries, their employees own communities even colleagues. for Our their world. printers, their and in high-quality across incredible have the by elderly, protection empathy organized pandemic They’ve use of their for the facial those and affected families meal the for shown XD care to the

professionals, first shown unimaginable the in teams support unwavering tirelessly medical doctors for responders, Our and have conditions. nurses, working

possible tools programs immunization. healthcare transfusion support initiatives been a expanded Corporate like the have with provide faster, method more variety to blood testing, as Our of a and including professionals of Social resources, to effective of Responsibility convalescent use

we delivered hard second for momentum We’ve of will by dollars. quarter. the dedication incredibly difficult above our continue outlook this Through significantly and work millions families military the results team’s circumstances, for likely our And our also increased first under direct for support quarter. very

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quarter financial results. In our extremely delivered the unprecedented also face of first extraordinary circumstances, strong teams

per our business, quarter revenue We reached engagement turn world to the first and earnings mobile, around for quarter each as We accelerating bookings and PC, people with across both and for exited connection. share. for we heights significantly momentum the outlook and and net our of exceeded across content entertainment new console the

and which geographies, tremendous across the momentum is models. in quarter led platforms, Call Performance scale was achieving by business Duty, of and

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continue fully-owned across to we to content. as geographies experiences console reach Duty’s and platforms, but and property mobile, sales strong great the of to free-to-play new in-game extending not on PC, new highlights new business our that focus the of lead our our premium demonstrates success extends also models. can Their only and across Call franchise, success of potential portfolio, monetization intellectual

Blizzard the Blizzard grew XXXX, WoW second also in doubling by is growth in community seeing quarter QX. Warcraft. recorded led in After half World active the of first strong of the further strong content home. strongest engagement increases Adding stay people as Blizzard’s game against momentum, the in of our around pipeline as to business franchises, our the history. across execute in teams world

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increase in with and player reach, continued investment. strong Momentum to April in year-over-year growth engagement

I’m continuing our and As we our strong build new President quarter excited results our introduce Operating to first on Officer, Daniel Chief and momentum, Alegre.

direct consumers, his expertise rapid From and fostering his key with strategic relationships businesses. execution will internationally building focus. and excellence Google, growth driving with in commitment long experience relationships industry and tenure deep digital Daniel His to be brings at partners early-stage in

truly success like also his contributions and Coddy tenure, extraordinary I’d the a continued thank being to for XX-year Johnson friend. of valued truly, his to during company for the

dedicated, performance talented Of of without be efforts wouldn’t course, strong possible world. business our the teams and around our truly empathic the

you’re the doing so extremely grateful circumstances. challenging are under for We work

difficult and players, We’re we and partners safety your also of remains continued health a what wish the of families you through time. appreciative support our and and shareholders,

review Daniel our the now, And operations of will you. highlights with

mission you, its Bobby. a for as during deeply first call to and I’m so connected this to to be my with of glad challenging all really Thank be company earnings really time. you proud COO, part

those by the pandemic. I to all want behalf and first by deepest COVID expressing this entire of affected of sympathies frontlines health those against the the the crisis, all start battle to expressing thanks to on on my company

we But would are unique simple, execution their other, discuss recent I are with under focus commitment to priorities. for thank to highlights, our They you execution, share like like I our difficult and players and currently living in. and I’d our and to to a my also before particularly operational such employees execution. each environment

known superb we to We have get we back execution. are for, will franchises, great what and

health moved to of address our and and priority. their said, have families our expectations had to for to for our of and the year. our had safe expand cases the offices families Bobby their on fortunate home All few our remainder safety keep from work As environments are I’d COVID-XX our to the development very like across pipeline we employees and measures taking are and company. the employees remains of mid-March, by we the

the and and families. family their employees employees receiving covering are we’re possible for members of ensuring testing all care. we their and costs affected And best Now treatment are our

where work. to access medical employees We and and and regions live telehealth have support contracted resources, private increased doctors in

need and find ways ensured balance and benefits, and had services access while additional And help best-in-class the well-being are have their and to health services other we support to they work, to and at physical to continuing home mental families already our families, employees home. including our employees We’ve life. that to support

our nature from home. continue to to pipeline content talent our means our turning creative the Now on development, product digital can work of

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and The April’s content and highest dynamics reach delivering combination engagement, of home events, content with the Season X. compelling drove Season since X, in-game in the pipeline refine in March, at and to has further deep the net followed engagement investment and and increasingly substantial stay growth opportunities monthly bookings With the in system. in-game player

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of Call growth of demonstrating really more the model the XXXX couldn’t about beyond. geographies for cross-platforms, on fall, trajectory With model, and Duty and content the and be premium the for we our track business franchise excited power

each term Now in on team of reach content the month-on-month plans Warcraft XX of quarter to the or a its doubled Blizzard. players increased World longer between community year, ever turning in QX. a continue March. second continued million key in the in of as experiencing with its further than franchises deliver active MAU’s subscription to in more monthly of were QX in momentum strong increase Having before. expansions number half last Blizzard’s

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to Battlegrounds, increase operations. the strong execution deliver in March, continue stay-at-home moved fans trends up the of improved of Diablo is mode remote year. finally, for effects, the to franchise continue to auto November, meaningful Hearthstone a quarter in and with battler by engagement very launch play in well. engagement quarter. the experienced in online on game successfully testing engage to first also the and latest We as Immortal middle regional during new remain Overwatch in the League, to the live seasonal track Overwatch driven And begin the and which with the shaping production in its event coincided

each in conditions month-on-month – quarter. King’s At effect. quarter further grew as March, MAUs community then with shelter-at-home in Candy Crush the and MAUs XXX came from the million Candy franchises since XXXX played any key games year-over-year were into in XX% increasing King, rounds month January in franchise and franchise, double-digit of and fourth March. accelerate the growth MAUs And grew February, quarter more of the the acquisition. within

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to expected, in QX, January in-game and ongoing again initiatives in in they improvement but contributed trends net bookings February. as payer dampened And these

engagement up Before percentage April. And King’s March payer low-double-digit numbers April. seen both stepped with in bookings in-game and net payer further strengthening and year-over-year by we’ve trends, in grow

then end While Advertising year-over-year over slowed towards year-on-year growing in still sudden albeit we a the quarter. in-game first majority which quarter, and backdrop business segment’s at decline the business, the advertising XX% represents against King’s saw advertising significant the sector, XX% over the improving the across demand the trends a digital bit bookings, for of net in of April. of in April, a grew moderated

we enhance the more we challenging, value highest players to will environment expect remain growth we ads to While as rollout ads the our player, full for year, our demand do advertisers deliver to each assume both more the broaden infrastructure base of and partners. and

ad MAU further situation strong the network, current market trends the is creating bring I in-game its the also expanding boosting King’s players combination opportunities and is same our other in more cost note trajectory. business across true units. business the for its that into audience of to the effectively The in

So in some of the franchises, year we further only quarter. our summary, with entered in increased the through biggest strong which momentum

our dedication showing priorities and remarkable extend communities. I and as responsibility as part history. new company’s be in And am to they dedicated geographies, executing of are this excited the global our largest focused content platforms, the against delivering business on substantial employees take great be on team. across work to Our we deliver opportunity on expanded more on quality and the IP strongest models, highest of to the our I couldn’t our pipeline

over to Dennis and results discuss Dennis? financial call now to the our QX outlook. will I hand

this new sincerest by ourselves as sympathies and thanks affected transitioned as work in. and XXXX environment the so who I second Thanks, results have find into teams Daniel. environment our XXXX my as we’re Bobby’s to share we quarter. my about and sentiments it in unique all review Today, like and for I I’d just will to Daniel employees, gratitude our well been to before well those But outlook start, the directly QX seamlessly our as and who have echo

on our well the of business experiences the side our makes production native distribution players. business deliver world-class digitally model content and both positioned to and Our for us

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key also quarter other consumers the of sales of deliver addition, at regions. continued catalog stronger our and home Warcraft the as World demand from outlook, of In towards end in and over to key franchises sheltered our benefiting many exceeded

To points review the Activision was the by segment million, Modern an Operating $XXX addition XX Mobile. revenue growing Call Growth of of Call percentage Warfare Modern was income Warfare quarter, of results. revenues, our strong higher and I of will Duty: start million, year-over-year. and Warzone in-game with sales premium driven XX%, margin Duty operating game $XXX of XX% was year-over-year. with

Blizzard was growth. of due XX% revenue World year-over-year, to release operating was XX% $XXX primarily strong million. $XXX Reforged the Warcraft higher income million revenue of the reflecting Blizzard’s for and quarter. in III: significantly margin growth year-over-year, Operating increasing strong was Warcraft

year-over-year. $XXX player investments Across $XXX XX% than to revenue XX% by operating payer $XXX lower in-game million segments, engagement in of year-over-year XX% and margin mobile The and business quarter. the King’s net King primarily operating ago was our grew roughly an over million. expenses, bookings to made with lower year-over-year, disciplined year network. its driven Operating prioritize as income sequentially revenues a ads was of lower expanding million, to actions due King’s higher grew in flat

will non-GAAP referencing to our otherwise refer our for results, overall turn Please GAAP be release let’s Now reconciliations. figures. to unless non-GAAP earnings to I indicated, consolidated full

of of recognition we $X.XX, above We above These EPS recognition incurred our and above includes EPS quarter, which generated $X.XX related million. and billion, $X.XX figures QX February a $XX and outlook. $X.XX This $XXX bookings generated deferrals billion, QX deferrals guidance. of the guidance. Net GAAP-only For million our GAAP net of of was restructuring of $XXX $XXX charges million, the of of the revenues $X.XX of non-GAAP or we include net GAAP February $X.XX. million QX

digital important asset increasingly strong recurring fundamental the continues flow, generative the nature of our strengths. be remains an company, balance business This cash especially to of cash strategic for now. our of and terms a sheet, In powers one which

and operating year-over-year delivered to cash tax we working QX, $XXX cash timing. due lower capital despite payments of million, income, higher flow In operating for settlements

March with we billion, investments and approximately quarter of a net $X.X cash cash end of were ended approximately the billion. Our at position $X the

pay And $X.XX as higher an previously of per share, announced, will this dividend year-over-year. XX% we week annual

let’s our outlook QX and turn year. for Now, full the to

Warfare and plans in X Modern remastered of in-game April. seasons PSX Warzone in Xbox launched in QX, also Warfare QX. In one Call very following release first already successfully versus Modern season for Three and released the Activision to of Activision quarter. Season content X on deliver One has late the PC Duty:

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the of Activision the Warcraft. releases IP second X half plan new expansion Call of Shadowlands based to of year, Blizzard’s extensive premium and for World our Duty library title, our from includes slate on Turning of

begin play in-game our will experiences for testing portfolio. certain And for key Diablo continue to continue expect mobile We we to other titles. to deliver other across Immortal also and franchises our regional

titles Although revenue in mobile guidance. our last include material these discussed as from quarter, new we don’t any

numerous Before fully the at of the I depend on provide factors some our of pandemic we are able full to outlook, that I’ll discuss on The this time. results evolving of financial the specifics extent our predict context. not impact will

where demand, also other and have weakness, channel, the factors retail we pressures currently. on related to global impact visibility unemployment, positive there risks rising a economic on While limited we have seen are pricing,

materialize. these for risks be our account for guidance tried overperformance have a to We if potential to we there And not prudent is do in effects. these believe

increased the investment a on player reach, experience creating building Modern addition strength existing Warfare Call further and has of future the in engagement strong Warzone of for Now, performance. an for financial foundation the Duty, and free-to-play

seeing As our in for gaming discussed, we increased grows. as demand are interest also other franchises

environment creates retain and and digital potential our structural in to business. our into can players communities, shift for current for the a towards long accelerate the sales the we then bring who engage The to term, opportunity more continuing

have conservative attempted operating quarter, to the assumptions the be greater for second trends year. create our the of in We around these later impact backdrop overperformance this does but beyond potential

February, resulted to full provided lower we the guidance of and our headwind And net an Since year declining in initial our strengthening interest our dollar non-GAAP the GAAP combination in from has approximately full in bookings of EPS versus additional prior year $XXX represent interest to FX rates million. outlook. headwind approximately of $X.XX aggregate and income FX

quarter Overall business, EPS are for described. FX just an first overperformance, and in than raising interest outlook net the raising the our case though, I the momentum revenue for by rate our despite and we greater the across EPS, year. with And amount we strong bookings, headwinds of are

me specifics. get Now, let into

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and product bookings amortization of We billion, a expenses charge million. and net of XX%, expect and operating GAAP-only of software of XX% expenses, game $XX approximately $X.XX costs, including operations restructuring distribution

and non-GAAP EPS of expect of We XX%, $X.XX. a $XXX count rate and share million of GAAP tax

net expenses XX% of including $X.XX, GAAP non-GAAP non-GAAP of XX%; expenses we for software of approximately amortization revenues expected amortization product million. cost, expect expenses costs, of billion, game tax net product charge a For and operating QX, on of bookings including now We operating deferrals operations EPS and the expenses deferrals $XXX of year; of of rate of game for expect now now $X.X and of operations and and net a we $X.X software basis XXXX, million. billion XX%, expect $X.XX. a On distribution restructuring including basis, XX% XX%; including GAAP-only of distribution $XX

tax GAAP $X.XX. GAAP of rate a $XXX non-GAAP million of of XX%. share expect EPS now GAAP We and count and

operations product and of operating expenses we software non-GAAP and on For distribution game expect including XX% XXXX, XX%. basis, amortization a of expenses costs,

non-GAAP including expect the recognition $X.XX. of $X.XX, We EPS and rate a of tax deferrals XX% of net of

dual So as last turn reach our and shelter they franchises to accelerating momentum largest at in interactive strong in home. investments closing, people from and increased development has expanded capacity, our our execution the business following engagement tailwinds of content and as year’s

people to experiences and in this are continue are many We stay humbled solace, connection that delivering turning and that challenging focused high-quality we’ll expect come on have content for they from our time, the so us. joy to

Daniel Bobby, Humam and leaders, Jay, and your our answer to are business I happy Now, Operator? questions. Rob, and

gentlemen, at from today our And ahead the we’ll with Instructions] session. question-and-answer begin [Operator this Lu question. and question Ladies time comes first Barclays. Mario your from Please go

taking that Amazing question. quarter Great. Thanks in for family the safe. the I hope is and everyone

Warfare accretive Call Warzone unit Duty: it’s provide parse should new hard terms Call Thank know how to a I So XXXX of year? you the can premium Modern Duty we But the you. title success any have color due in COVID out to to And, expect of to later sales been on this sales? increased well, engagement from and social has distancing. of

And for Rob. your also Hi, the question. for front. note up Mario. is This Thanks

about the really it’s to And we’re Warzone And become, is to it think answer the think talking bit. and it’s that definitely has that the ecosystem just important short I the question overall that been franchise worth creating. franchise. a part is I accretive a of

It get all Since no the been plays, matter just where community with can friends the last game. of that together the platform together a initiatives. And through deterministic to of you’re in community on. at about the content what new content free about And system the our was we kind was same it we’ve our few number cross bringing player-focused started time. the discussing, put calls,

did own here really just And, over you launch Modern a have has amplified Warfare, of we time. then, with that the And backdrop what fantastic which game is course, this gets better all in Warzone, the massive been on Warzone, experience. provide stand its a and battle of when great on to it our game. And you fun own built endless as royale its definitely to scale look at was

are that Modern now seeing obviously through Warfare ways, to progression Modern we’re offerings. Modern offered. game the in systems, number and connected game Warfare and and systems, Warzone players upgrade And Warfare But universe is also large premium what content to in Warzone has choosing right including the that of everything many shared experience a

an know, And that And definitely premium And the number are on we’re overall Modern of and from seeing above peak far. this franchise so seeing call and players, see. you universe upgrades so now our the player highs unique universe, perspective, great average really Warfare to across that’s players engagement expectations. also far, investment initial also, to as concurrent indicated been the we’re daily has

the much Warzone, of experience community loving how the regarding far. So is how we they’re We the know much enjoying know it. future so

going we’re terms in to this content, of and ways ton play, a So continue the events, modes, really new just invest to in more new in future. significantly, to

has to I question, impact And your I would we of follow think to on up the say well. last as potential it the what is, believe part yes, premium positively games future

on off, of like track. teams all keeping would also And about so, all our to all our critical development just excited before jump projects our opportunity. Activision and And I for we’re thank I that publishing, employees

thanks the wanted across been appreciate to massive just them. outstanding just shift a I work this by have again, job a exercise big Mario, an And teams to the This home close for But, question. thank it. I done from logistical and you the has organization. to question

Right.

Okay.

Mario. Thanks,

please? question, have Operator, can the we next

your comes go question Markets. Johnson Gerrick Please BMO from question. next from with ahead Capital Our

a to guys Good in increased the to back so stay-at-home we back the Hey, will sustainable? once swing video with you owing normal? return think engagement you Do afternoon. do COVID-XX be trend and you. direction Thank see perhaps games

super obviously question important is all That’s know to that a Clearly, and see, Thanks. what as possible. which like back But that like, returning look don’t pass. Dennis. it’s normal really love obviously normal It’s a comes Gerrick. is scenario really applicable. once we’d soon to new Hey, the to will as we that reality to

really a that there like be likelihood is even to time amount people may we seem ends, are does of It fair shelter-at-home know it it. that before a returning normal as that once

change structural entertainment, seen we’ve in patterns in that an gaming. that already potentially think consumer acceleration do So is consumption seen we the been that we’ve to there

social, And long this And part gaming. obviously with that entertainment will an We’ve the where generation term, make is seen activity, we could these fabric. times believe socially consumers, of younger their of like like mainstream. gaming the yet integrated for that which more would distant social trend categories, persist more already benefit even

what our that when that communities consumption, into back. on any points strong We We’re as don’t have we started from term returned obviously trying to they as in them possible to happens continues, shelter-at-home. players compelling them to a gamers now Asia our welcome lean ecosystem and seen into this people into right really long have into even the But bring transition great data and hopefully momentum as experience give and fans. more turns many

a we that’s sign other normal we return well. may similar of world So to hope opportunity the start the as to parts of as have in they

structural term from acceleration generally So, shifts engagement. the speaking, think in we’ve heightened the opportunity that see and to then seen, there’s here long we existing big already pretty a

usual, at trying unknowns so be there because how we’re still time. to as we are this model But many prudent that, know always we in

Great. Thank you very much.

Operator, have can next please? the we question,

question ahead from question. Please Bank Our with of your America. next go comes Ryan from Gee

Thanks. Thanks Classic afternoon. on more subscriber Hey, guys. the the can larger specifically you during a hoping you was for while to as base you good move expansion? how a provide this towards and Fantastic I quarter the you period the for question. the sustain opportunity see color little trends Shadowlands post

Jay. for is this the question. you Hi, Thank

answer, I a us all. thankful helping part want and time to an play for step back challenging really games a our I say, unprecedented together to really able people bring Before in during are what’s just that to take we’re

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time, for returning of work to a returning good experience At the good lot and players WoW seen same Classic experience. the we’ve

WoW a Warcraft we single both. WoW. to where today, as and we subscription, release World both Modern stream a community think one And of about Classic can So enjoy of under steady players content

the particularly a variety engagement with of those And In started to game. continued they to a as as see momentum always seen what to the good of different East. come in been has And regions, see players the it’s have with they’re back looking lot players strength experiences, it’s for Classic a the that been resonate in We’ve even in – resonate work. strong they Warcraft.

this western strong March, players to subscribers Shadowlands. And pre-sales And driven has contributed Modern to we saw returning grow WoW primarily. by for in

March launch across active it modes the we continues period. the outside both has with in ever So and community faster that’s expansion growing an than saw momentum of

job our the On to work home. in a really have teams done from development good side, shifting

last alpha welcome track And on to able team, month. year. Shadowlands this closed work of to is into launch We’re the of select for hard players Shadowlands to the in the thanks QX

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we the next can Operator, Ryan. Thanks, please? have question,

from ahead question comes next Our from Please Creutz Cowen. go Doug question. your with

Hey, thank you.

lot was what little advertising? terms down. and side? a economy a in King presumably, you through slows bit your your are on go similar on a Because I if pressure seeing of that, channels in ad there you offset the that about could your at acquiring CPMs. you’re the detail more Thanks. same to maybe channels as You talked side acquisition user And the the users along is there wondering of then with any

Hey, Doug, this is Humam. question. Thanks for so much the

in So we deceleration XX% April, you that in we ads the quarter in But exited growth. March XX% the we year-on-year the of as business, QX And the mentioned you towards strong or on momentum in in XXXX, and saw where end delivered over question, did as the over within ecosystem. grow the April. year-on-year XX% business we advertising that continued broader saw with heard

by your me of is going let a So what doing forward. talking we’re answer little bit question

rolling about short- to not infrastructure. medium-term opportunities. and more of our advertiser the players, think our things and and with what see base working But we in some I build we’re actually out will areas partners tech now increasing provide more doing and to that that as focus about broadening that’s we’re as ads, already the kind more continue, we continue

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there. is active So quite the team

that for then new a and technology to higher that’s to bit starting and we which been And also that year. value and product of new a get we demand sponsorship our and differentiated very the the the optimize are and quarter are to leverage really like We’re have, allows ads of out showing, really advertiser that focus ecosystem our nice games. that some focus the this seeing CPMs rolling and environment, interest proposition King this quite in was the products amplifies we to in advertiser interest. become us be that’s in the really our network continues for And

look our is if what international, opportunities. a diversified global doing So it network, we’re at which you looking pretty plus add as and at of you that, we’re is truly set

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all does with business that growth this year. the of expectation that, deliver is my advertising So

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some that King an is very the network. a different opportunity are for it’s long-term. to a medium- approach, advertisers bring seeing we’re efficiently what So we new seeing see for on with and [indiscernible] than ever good couple us more on while that players And you

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King work echo we and from and the just a King colleagues quickly. before I So, as again, want to kind something it hand the employees of back operator. and to a beat thank yeah, missed [indiscernible] experienced I home have lot have to my team the [indiscernible] what going quite to remarkable not who of pretty really said have

And and so the a thanks that doing. work me big they’re the incredible team for for

Thank you.

question, have please? can Operator, we the next

Our ahead with Malde next question question. from Equities. from Kunaal Please go Atlantic your comes

COVID-XX, about in over trends consumer spending broader strong you given are next thinking Hi, thanks very business right how potential for the taking the question. risks to now. There’s quarters? momentum But from few clearly a pressures the the the economic

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be more monetization. of long-term, because normalizes as kind weaker we view an as So there that engagement usually with could well, opportunity the But itself. in slightly that

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Thank you.

next Kunaal. question, please? can Operator, the we Thanks, have

next Please MKM comes Our question from Eric Partners. ahead with question. from Handler go your

release per glad Thank now is Call healthy. could question, you you I bit the play is, for additive games. they on players at wondered multiple much how player how little lines, I’m with of funnel Warzone. games? Follow-up to And everyone overall what the of there and that along of those talk Call trying Duty, the much is the Mobile is if for very when and for And for get a spending? widened Basically, the mean players Duty X has of overlap does between what spending

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like see a to So that we actually crossover lot.

looking question, And franchise to to to I at specifically in of In CoD look Warzone take being well. us question, And then accretive when also is with the a as talked you that how Mobile, this as your terms of the it. respect across seeing that additive ecosystem investment, overall. the previous part we’re about and

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the for thanks So question.

have we question, please? Can Eric. next Thanks, the

go Our next Please question question. with comes from ahead Quadrani from your Alexia JPMorgan.

seeing for this pipeline, on both so you Alexia. impact having is much David expand work Can you’re your and Hi, to a bit the on little Karnovsky from Thanks taking developers near- at for just long-term what Thanks. question. home?

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the have we question, can next please? Operator,

Our Giaimo question. ahead from next Please your from question go with Jefferies. Alex comes

for was color the seeing you’ve Hearthstone if I well have the of landscape. bit taking you’re you, Thanks question. within been notable out if hoping some updates get franchise, and the received, on the to any competitive rolled change maybe Great. guys. more a recent Thank

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modes proven And meaningful things has is that then, drive engagement. can of new we the one learned that Battlegrounds

forward. of And team thinking is their planning future part as so, the that going about

Thanks. you. Thank

Operator, we time one have for question. last

today your question. question Stanley. go final from Morgan Please Our ahead Nowak comes from Brian with

on Thanks number good just for taking King. voices. one I my hear question. really guys, The was to Hey, strong. your have user

talk to to really you you you some time? over players. payers us XX XX added over I roll million, Maybe players think of of the have million think about out then how how quarter to new key those think develop into users and new strategies about do those quarter. retain over converting you And sort

Humam. It’s Brian. Thanks Hey, the for question.

we’re back step in QX. set first me the and let here So what of context saying

focusing growing quarters. us it, payers. talk about past also that the on We’ve in players You been is which audience heard and few of

grew and QX base. in player last we Candy QX, the so And year,

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combination it’s past been few we’ve everything the but what that kind you’re the – I of think So that’s over now, seeing the of kind of building quarters.

Great. Thanks.

Thanks, you. game. for interest Thank right. greatly everyone, see throughout many the we in Thank Humam. we’ll quarter. speaking joining look us participation Brian. you of forward your appreciate All Thanks, you. and do Yeah, today. and and stay hopefully thanks, with to Please We you safe all

Ladies and We joining. gentlemen, thank do conclude this does for today’s you call. conference

now disconnect your may lines. You