Activision Blizzard (ATVI) 29 Oct 202020 Q3 Earnings call transcript

Good day and welcome to the Activision Blizzard Third Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Christopher Hickey, Senior Vice President of Investor Relations. Please go ahead.

you XXXX us Conference thank Blizzard's for and Quarter Third Call. afternoon for today joining Activision Good With us are and COO; Bobby Kotick, CEO; Dennis CFO. Daniel Durkin, and Alegre, President Brack, President And Rob King will Humam of President us. of of join Activision; Sakhnini, for President Blizzard Kostich, Jay Q&A, also and Entertainment; Allen that like are facts. not everyone call, will during would I remind be we historical this to making that statements presentation. in the available statements forward-looking this to date this of company, as based information The presentation on the of are And to may while them prove to ultimately we true, they believe be be incorrect. cause of factors from company's number forward-looking and A results in other expressed circumstances could statements. materially the differ actual to future any future those These second slide that discussed Form and report include the the on pandemic, SEC quarter those of our on shown. XXXX risk COVID-XX first quarter annual XXXX in XX-K, the XX-Q and factors filings impact the is our including our after forward-looking XXXX. to reflect company events publicly any The revisions circumstances date to release no statements to undertakes the any October obligation or XX,

We an of potential financings these changes and acquisitions, activities. will to financial in and associated expenses the expenses intangible excluded to final the tax-related and exclude tax-related unusual superior items refinancings; of of also posted including restructuring related a isolation and to during website There's like encourage our fees, decision. measures or legal resolution related with and amounts considered Please which making to related can respect an other is And intended to stock-based measures which and full earnings tax posted the and I'd for a further tax items; call. These access CEO, to consider discrete measures, our benefits provide on financial refer you or impact results. measures. We investors call. assets the related non-GAAP We and to tax related non-GAAP webcast charges measures unique www.activisionblizzard.com GAAP our amounts GAAP items which with substitute be and our positions before Kotick. from the the this significant non-GAAP all reconciliation accruals; amortization explanation release, in following investment and non-GAAP to to introduce Bobby be related compensation, the debt as earnings of present to to not to are costs, expenses or to for non-GAAP including expenses now, both presentation will which GAAP laws,

few County inspiring. hundred because you safe thank of a their our Thank pandemic, incredibly all for of the and The very world resilience us your continue from difficult employees families you, under all In circumstances joining Orange and are were in the healthy. I is Chris this and employees you homes midst week, hope today. ongoing our around fires. show evacuated of to of the

the XX% for greatest our raising expect teams earnings our we've Our connection been the extraordinarily grow to better-than-expected entertain important and world we're talented now for. share to full opportunities, per known bookings year. started even our on Since over always year-over-year We return XXXX refocusing in excellence, faster. net growing to we've been to with outlook quarter execution led at to joy of time connect ever. This and again than the third able people more is hundreds of when a teams around and results have millions

key and on number employees commercial We our franchises. working grown have of creative significantly the

increase we expanding continue investment engagement to biggest to have a investment franchises and all the player We across clear communities anchored of our grow to strategy our in reach, franchises. continue and

the of to operations business almost highest-quality transitioned players. most the digital-first players to content enabling manner. to network a convenient continue We to commitment content value-focused the model, our a in And company-wide our have live deep million deliver XXX to and consume we've our

Our reflect position fully franchises. expansion focus deliver our sustained Today, significant long-term on owned portfolio execution. a across continued strong in results to and of our we're

millions into benefit we experiences are against consistent social and to growing As content truly two-thirds over continue enabled pursuit across larger execute Through to community groups and our connections beyond monthly in-game million far that long-term of the first has of franchises free-to-play and growth. Duty than and social by rich of times new of launched our in the our epic our free-to-play with engages highest experience our its audiences. expansion before. mobile, ways. of we strategy. positioned On been has mobile, in players of from players the over this stores community since demonstrating By grossing of all last to new and U.S. worldwide XXX operations players based playing the franchise Warzone, franchise app optimize continue Warfare to in over converting Call is pipeline key of ever engagement our and games. Call Call we've players, has earnings Modern mobile introduce And extend brought become countries downloaded the new Duty game XXX million a the expanding our traditional transformed connects tens into truly in With game revenue platforms is friends, our October. Duty

as drove three see engagement this than a in final over Call preregistered, over of of growing of we content continue in in to year experiences the now a gaming seven on in were players addition higher XX reach, the times path Duty ago. Deep world. community game and the in the premium large-scale and the hours Call ago in played and to PC and quarter level testing million number mobile mobile China investment market player largest players clear time of free-to-play third console, monthly year in Duty's already the as With well engagement, across the mobile,

free-to-play highlight these tremendous of community consume are and of purchasing content. the rates business the As before power than model. premium growth they engages, ever combination the more players More our premium content and

In of reflect size and the continue we when Cold of Call has proprietary And our Black to Duty own War content access in generating scale momentum in War moment weeks. Ops gained Warzone interactive two true interest the deliver changed new within trailer network. to water expect Ops the driving August a substantial our millions marketing release. Cold Reveal the cooler Black players virtual We to by of playing

our are our and expansion seen of release. we've players' stage creating network. Going are of Presales direct trends Blizzard we've the way last with expectations of Shadowlands highest well any new at meets to than has the highest deliver in largest all any the as network launch World for example, players the ensuring creative subscriber ahead of potential on marketing classic intend frequent delivering more Shadowlands doubled many focused franchises this achieve working successes paid years. In Warcraft, Call franchises this of to team multiple more upcoming both to ahead. following mobile experience the our on We the we of the and coming Classic launches has all the across have represents as with effective major also had base in modern content actively unprecedented Duty. engagement year. dedicated of game of the since years we talent seen media in Blizzard the ever

and experiences the gaming global, millions mobile, of who determined around suited for our our franchises existing franchises hundreds played we're haven't are of and the fans PC console, compelling well both to players yet games. and Our of for mobile world audiences deliver

We Candy opportunities also for growth see continued Crush.

With social growth what franchise driving in new both King, continues franchise the engagement our the as as in as the work Blizzard three in-app net across and of the World and advertising we'll And for and Overwatch to franchise to There franchises challenging over number in three to number the perform most earnings $X around innovations at and of them: features never generate a in the we major and multiple so the been Crush. for reach the with our team's quarter, opportunity products sustained employees. the continue app operate stronger. for stores, at teams each Amid our are Even extraordinary commitment in that be coming broaden franchises world. our revenue portfolio as I to has purchases potential am hard has Call few its leading company, pipeline of quarters. proud introduce in I've continue and experienced potential today the and Warcraft of and ever with further expansion Candy continues leadership of audiences decades billion annual clear franchise collaborative environment Diablo the our of one well to the a competitive U.S. And bookings. deepen third entertainment Duty growth. on

work ingenuity care, to work. my remains families The as challenges Of teams show fortitude continue they safe priority. course continue our our health and they and from healthy ensuring their majority to are that family care, number one in home and of employees and overcome and successfully

For year, operations quarter than and the support. the more you and will Daniel now raising continue ever engaging XXXX. outlook players before your the for balance connecting review this of we in for believe with of continued we our we're Thank highlights our will you. past

strong drivers; engagement, expanding Thank its Blizzard outlook player you, strategic significantly deepening Bobby. quarter our Activision growth with third Even through exceeded audience during execution increasing operating the challenges the of investment. across and pandemic, three reach,

content substantial a net through year-over-year even Duty more. the new base Call console, driven both introduction and operations strong games year-over-year. We on year-over-year across XX% in models engagement laser grew mobile XX% performance major increased results with and business launches particularly doubling total execution by and spent share and focus operating per in our PC, margin live free-to-play expansion earnings more approaches experiences. to these achieved and and Our time of of in-game player in grew our We bookings than

Warcraft, forward. initiatives wholly-owned engagement, successful a our and remain of ongoing talent to increased results Duty, structurally position continue of across and player unlocking franchises; Our our and We're continued expect Overwatch. and Candy investment return investments scaling still and in business largest these for seeing full of strong Diablo higher IP. we We're early in commercial reach, we and our our capabilities going potential Crush, World on six creative franchises investment clear for the intend and the key Hearthstone, franchises Call to

many reach, substantial had players three Console there's immersive our with in growth users regions. year-over-year next-generation and grew player and includes generation free-to-play outside Call year community release to engaged two-thirds compelling sales traditional with delivering public ago history across to highest units of the in-game revamped ago the the numbers strong XX, the both of XXXXs, more growth tripled are Modern million. player investment. Modern to a turning player Warfare franchise active gameplay the Modern Warfare play system times year-over-year Supporting for upgrade tenfold and in to the ecosystem higher and is and fantastic War, operational Activision. again our for strongly where of title. quarter, year-over-year combination the battle the console Duty's than Duty Duty. digitally in more premium testing full Cold Starting monthly and will highlights PC, over saw year of units. come. the times in an title with The terrific monthly we PC. in and three Warzone multiplayer of franchise's with chose We our that the as XXX volatile year premium Warfare content first sales on geopolitical PC prior are players times Monthly Anticipation for strength so engagement. drive Call Warfare's PC Ops Black four single The fans played universe in-game bookings across campaign in more Modern grew Now installment saw sold November experience. experience game's again approximately business Black the expect, players quarter to On deep Call year-over-year and of on seeing sustained year far mode the Warzone set and lifetime release consoles, engagement as than Duty expand and continues zombies and ago the Across we Call another engaging the of cross-platform prior game Ops across hours with growth platforms the substantial the modes, Warzone year-over-year to the versus current console much seven premium in players inside high latest deep level. title. and the launch and net and

content War's with new into the Ops title well players launch history relationships in-game at are Black releasing both with the a community bring Ops free-to-play Modern entirely Cold the content centered be the Black content. so a season Along and time in-game new leveraging Black around And franchise's content will Cold for in We initiatives. in-game powerful first Ops our that engaged of into resonated in-game We'll build we and War the of into and franchise most in to with players in remains direct characters terrific Warfare. through substantial weaponry starting Warzone and largest are ensuring with system Cold the experience awareness the be digital our same Warzone. will experience. on-ramp premium integrated December, that War's

Duty marketing reach the are Mobile one in up-front and of by full continued sales enabled engagement that second convenience in-game console the be initiatives On of expect Warzone. seen game Call this sustained again downloads We confident quarter. we given will number mobile, once year, levels impressive franchise for for and Duty shift globally of and the a the players Call to

the and and leveraging the proven X optimize to seasonal champs and now first with as growth QX China, team further franchise. economy, of versus passes ahead, social it over in the title second innovations and growth And of for the for its game seasons. update further Call well-positioned X. Also great weekend, Call As in concluded franchise release inaugural to its can't features couple QX, testing Alcatraz is of esports and the and opportunity loved the enters content Black successful IP October, refine Duty with Duty of in Ops League for breaking the shape learnings game investment the biggest of game to fastest Activision the in Time. Bandicoot units for in-game player XX of final October continued content continues classic The reimagine Hawk's this wait rich Crash premium fantastic the About in the records Pro Tony received years with and year. highest to X: the quarter, driving of map viewership yet the addition in launch large-scale with reviews season third And It's X a Also in we Duty Call the the weeks. saw the gameplay, the the highlighting further anniversary, a the engagement series Skater launched million one title on we build and franchises. our reach the ecosystem became Overall, any of of event. of are and continued in in library sold, in with

reception. The again a first new Crash all title in over day to a great critical

Hours in quarter, The and expansion beyond. turning over incorporating expansions. the Warcraft engagement its year-over-year year-over-year experience, the at mode versus response were so QX. QX strong but strong execute last expansion, Darkmoon year within new pipeline alongside November. enter the last previous Battlegrounds new at players which system rich this to well seeing continues engages customization released a player that the sustained and in content a far, with and has with new any its Overwatch ever of to XX in-game for finals the is players into follow with Blizzard. player November years level than players. reveal ahead and not providing franchise highest XX the streamlines a season the this a of that monthly increased around and response positive in before And played and soon regional million engagement interest for being the history. through potential allows launch only up engagement next week, a Shadowlands seamlessly Madness opportunity. an in MAUs players quarter prior to the modes community, latest characters Battlegrounds The to dedicated level grew been League, structurally And in in the an finally, will third since Hearthstone the illustrates franchise enter presales its all and new Now access the the Diablo with Blizzard in amongst engaged titles have period. to the a seeing Duos, sustained team more will the testing. will to extremely internal more build it more launch. event significant new to new delights and Overwatch the current progression momentum, ensure new this drives has aimed multiple most Shadowlands development the continues players across third in average options saw rewarding already on and large expansion enthusiastic early release existing, mode the the which of testing broad Franchise how a for watch at expansion. ahead continues with four lapsed than player with Blizzard ahead growth Millions feedback launch. Faire, decade testing character of game, the particularly stable the innovative for team the from stage grand since League's November of community's XXXX Anticipation is an determined mobile regard Classic. quarter, were build having since World hugely expansion of Immortal against of the MAUs last have external the million in following experience XXrd under see in

In-game base bookings, net payers operations. a and the turning lapsed year. now of initiative Now franchise positively see for to while payer are million, year-over-year we important these trajectory payers to net improved starting MAUs MAUs grew meaningfully new King's Overall, bookings and is responding King. grew most to features of again to Crush year-over-year. benefits Network both attract were with King's number King live compelling Candy year-over-year. XXX have stable new at a last solidly in And that the over healthier actions the

As again stores. a Crush U.S. was the franchise result, the Candy top grossing once app in

infrastructure growth with year announced registered this launch as title, Bubble off franchises, business to have strong again both We has to direct both and strength net people delivered grew with in innovation channel, fiscal newest our content. the in sales driven and raised similar across team incredible XX we its continues have another Around and grow in in-app against to game. already net to the a in-app this strategy across Dennis a next quarter already partner third In bookings summary, share The investments detailed robust performance growth direct of the strength franchise set King business, King's has specifics reception, XX% networks. outlook. trajectory. quarter with King's business strong for higher year-over-year frequency of off. into to very will track higher the And title of Bandicoot: spring. Farm week, and other team's delivered enter and year-over-year of which product On QX advertising with interest and game purchases, also The next with around the tech saw in on a execution been in met in million The now Along advertisers bookings Crash their King's Heroes strong start. pre-registrations we fan Witch, two Run of as double-digit momentum is pay heading brand year year. and our results is advertising, our will

bookings our representing QX third outlook billion, XXXX growing total. and as well fourth year-over-year quarter digital grew quarter. year-over-year of will our the in net I Thanks, the as XX% XX% XX% to Daniel. Net $X.XX over the review bookings with results, Today, for

$XXX Warzone year-over-year revenue results. quarter records. with $XXX year-over-year, year-over-year. again King margin Operating was billion, Operating marketing of growth sequentially, Activision the boosted start was our revenue XXX% and addition bookings net growing. of growing terms of million, segments, of for a and was the income support another $XX Hawk performance. X and Blizzard was with strong sales Warfare revenue Operating adjusted in-game pandemic. of In franchise XX%, both segment the Warfare, Mobile with contributing our revenue and QX. XXX% million made during successful of growing each of Modern Warcraft. operating King in-app million, the looking with $XXX $XXX our Modern was was versus segment challenging Let's driven X% of live XX%, primarily growing acquisition, premium Blizzard by with we since revenues, of as in-game approximately highest higher for headwind to in by $XXX an an operating grew launch. World strong XX $X.X segment of Growth higher million, Total year-over-year, profit Activision $XXX eSports points were year-over-year. by Call million by of investments this margin across third XX% income and advertising driven despite This amid was margin year-over-year. environment XX%, and total Tony quarter events an operating Duty XX% results. points to team owners This and lower increasing million, was year-over-year, full higher ecosystems an X% at million, million $XXX strong sales Blizzard was operating revenue income

to to turn our to results. release non-GAAP let's Please refer GAAP our earnings for consolidated reconciliations. full Now

August Net of recognition of million $X.XX or generated include This For generated $XXX $X.XX. EPS million. deferrals $XXX net $X.XX million GAAP $X.XX above of and includes August outlook. of $XXX which $X.XX These the of the outlook guidance GAAP bookings quarter, deferrals revenues we $X.XX EPS and billion, of the above QX above and QX net billion, our $X.XX, non-GAAP QX recognition we figures was of respectively. of

billion $X.XX cash XX% and $XXX flow cash in sheet. flow cash taxes cash grew Year-to-date QX changes operating capital. was higher reflecting flow to million, the working Turning paid and year-over-year. operating balance of

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

$XXX interest balance historically took due strengthening all in rates. our sheet and as we with we XX XX-year of notes. We issued of remaining of further advantage unsecured $X billion redeemed our low the billion outstanding the XXXX of quarter, XXXX million During notes and $X.XX

full next-gen In release portfolio live Now of course content X: the in-game to November the quarter fourth on And Bandicoot in and Time quarter ongoing in outlook addition Crash and our let's on turn launched PSX Xbox fourth early and About the operations Activision to for It's year. across One October. the of and XX, planning Call Blizzard and Ops PC. War Warcraft: the the Hearthstone's is we Xbox expansion Duty: PlayStation ops and release Madness will Cold current expansion. and of Black will features Candy Darkmoon on And Crush. and numerous Shadowlands World live innovative Faire at and King

the provide Before outlook, of specifics I discuss our I'll some context.

are for But holiday Mobile deeply largest prudent QX content. momentum entered the communities. engaging And across launching of with the three we from Call time note in the strong We to also console migration and wish monetization of I'd from Warcraft revenue has bodes meaningful Candy term new Warcraft World our the assumptions of consumer of our the well final at region of and on that large-scale engaged next we which the year. existing in will become short we not player more the Duty, our while pace and Duty China, do include regarding same major and outlook into material of the transition season ending environment content in anticipate spending Call Crush Duty testing World are Call highly for franchises, future. remain

basis, QX of revenues a For we million. expect including $X.X $XXX of on net GAAP billion deferrals

GAAP-only we million non-GAAP a XX% expect and margin $X.XX. of now of approximately operating and charge We EPS a and expect GAAP of billion. count $XX $X.X of share bookings and of million GAAP restructuring XXX net expect We

of of net deferrals we deferrals net including non-GAAP On a non-GAAP a on QX now August $XXX of XX% of our For we revenues expect billion, for of an $XXX now $X.XX. expect above GAAP and operating $X.X including basis EPS basis, million billion, of net XXXX, We margin outlook. expect $X.X million. $X.XX bookings

approximately restructuring and of margin million GAAP-only a operating GAAP a charge expect We of XX%. $XX

non-GAAP GAAP of count share GAAP $X.XX. XXX EPS expect and million We and of

net of of expect EPS XXXX of a on non-GAAP including $X.XX, non-GAAP For $X.XX. XX% deferrals operating basis, an and margin we

we build reflected our see Now favor, but I'd of and our to note to the take and XXXX. opportunities looks prudent risk the revised forecasting position to momentum on we numerous business would will touch Successful our still briefly I'd is also in our results, that like XXXX scale plans our against on cognizant normal of our in to execution it segments franchises. remain aggregate expand early, outlook. macro approach we strong performance

So, efficiencies service focus more deliver expand confident on and shareholder We to our will franchises. communities business position improvements and continue against our and to this our plan remain we strong see the structural we'll business substantial year into has year. models. operating results And platforms investing development business of momentum for in in We us to holiday and over geographies, ahead seen experience to executing and further franchises that next a closing, strong change across continue and season our and value opportunity the heading long-term.

leaders as of join us portion the our Now Q&A I Humam the business Rob for Operator? Jay they welcome and call.

you. Thank

now Gee begin Barclays. question-and-answer from from Ryan question [Operator Instructions] the session. comes Our will ahead. We first go Please

players community is launch should expect team the next a This the Duty, to plans mode Warzone Cold following tie Warzone and for would how week? of say follow-up, the a prop how and they between change question. War Specifically player updates Ryan. guys. afternoon and for free-to-play of say Good On the both what to War Call multi-player then curious Cold to a of mode is the see progression the for those Cold about as Cold is content those to you And the can upgrade guys timing in overlap? anything there Thanks. may Warzone. to what value Thanks And War? taking Wars

for Thanks question. the Rob. It's Ryan. Hey,

with by and connection especially game tight the teams I has horizon. development And for entire and connect a Modern addition we to of continue start the has the into can been we that of Warfare obviously, future. and so. saying franchise. Duty Warzone support. important very our offer to community. that also saw their really central first And the that the done out work want plan community have how we Duty the place become maintaining and to on we're with proud the Call who me players where has to Call embraced incredible of with check Let also It's everything that our that We're for obviously do we're has engage really really premium games think to thankful thrilled an continue

of should Warzone games lot importantly. Call alongside fun in innovate premium and to see expect evolve So Duty ways of and community our a

lot going together your work on Now question to of let bit please soon. we're high at first note community a clarify me upon did Black details the in sharing and progression Warfare. coming to Ops Warzone a how build and core I'll and level. do work to on success it War the that similarly Modern going are Cold But And will this with up be will a Cold how also War really

your example that Warfare. So in one new will Ops awesome just work Ops weapons across will you Pass content level Modern the Warzone for and and Black and to Battle in like Black Ops Warzone. store Ops Black and work all unlock and usable operators Black in progression content XX be also

is on going game either to their and outs is once can course this Black one Black expand over And Modern see time. one play. feature is continue choose And in Warzone evolve be to for their a that of Modern cool Warfare just Ops as content Ops load to Warfare in they'll will Warzone Warzone how result, Now load launches. players out use players their that or their able example

across also can post-launch players a Ops of the premium Black Cold expect Now experience zombies. multiplayer War from content ton and free

do and a for everyone with Warfare the the job Ops. did same Modern we think great Black with on this for we'll I community

So great game. for game this I and think just November and on. just the this a Modern game is better really the as year Warfare, it's going XX beginning goes fun is And get more like to and bigger

has as the offer And overall for in excited at players really with to to has -- really progression, really Warfare. content Cold check and War and well worked will what we've built community upon be think we unlocks So terms Black everything of well. Ops Modern people

of and going we impact December. And the next able Black Season to a that's about and Cold most to Dan in for this well. and community guess timing to Warzone it's What's more we're And you're this to Colony's to excited detail the excited mentioned And when season, in the together thanks start how of fun week terms which thing cool Ops we're see Again Now Ops as to really But really be that's and question. starting where expect here be play what the they I is, this history. Daniel does and expanding we're in really now of community one in think into ecosystem, going. we Black would the exciting and now further for launching going to launch engaged War next mentioned Warzone Ops, Black lot for even the are or War Cold together say work X. revealing ways. see and this, I largest us across I the final

please. Can Ryan. next question have Thanks we the

Next Securities. question go from Please Thornton from Matthew ahead. Truist

Okay, good now on streaming for of question. afternoon a only lot platforms in right the the entrants Thanks taking particular. but launching, space going not terms in There's next-gen new everybody. consoles in

helpful. your would us if and be you your to more latest wondering supporting strategy update views with platforms on subscriptions? some can Color time over also respect on Just there

us coming Thanks growing enables ways space new we the of to more Daniel. the power gaming in accelerate to really Look industry. already or take communities. the of to the for question. to to investing into content extend companies this which next-gen growth or this increased consoles it see Matt. that I'll innovation in going streaming and deliver and mobile be unique the love platform anything is if And reach With is our just experiences and really well-capitalized devices

So our experiences great really excited also is Black Rob other where the build be on they day everybody. just experiences the development of just players. platforms Cold seeing to the priority it's owns and next-generation of actually the for to was thrive hardware our already owner really economics. player to franchises we're of Ops and us that with our to take for platforms for consoles need connect X well compelling a content they leading It's and us supporting our this you're for can the powerful. War to fully resources us, of content really expansion more great Ultimately advantage And as also offer best launch These and We're new IP, as mentioning. finite. members really the bring though, even potential our are associated our positioned where players community. and with so That want to just said the

really focus biggest are. where have the we to So opportunities on

opportunity and we're to are example that the That's meaningfully this biggest us. devices over That's make of our time. far really important franchises on need by on mobile to we're all take we to now. that For mobile for to our enabling really, right billions franchises available sure our investing capitalize and

your the of on at model that largest industry gaming subscriptions, the We franchise question very Warcraft. in every in fortunate to regarding also subscription and Now have we're World exposure scale. operate we business

we with we feel have to our through including will content most this current and deep lot our already multiple We in premium a So players area. offer and Battle.net potential just a digital this which really ways And relationships our needs access continue have evolve players we already of as change. business to good gives experience for here. us

offer value to models business current Our communities. tremendous our

from financial can see you As it's driving results, also great our our for shareholders. results

when. know don't You

Thanks, next have please. a Matt. we Operator, can question

Please go J. Michael ahead. Company. Benchmark from The from is question Hickey Next

team questions. and Bobby thanks solid Jay. few Hey, quarter questions another my on for A for And taking here. congrats

for trajectory for view growth the heading Shadowlands if up of or base for curious you you. the player WoW us year XXXX? update Thank and here into it franchise expectations you're could If on subscriber

good one. lot pretty a a question. the Thanks for It's

announced the The Warcraft. and that match express on thing we've expectations to is And anniversary earlier we of their our excited date game XX-year sure launch we're really going delay players great. received the was Shadowlands overwhelmingly the on be get we really That going that We that feedback is that community positive. of to original to decision make exact the XX. quality Shadowlands for and World the the first made to for to that that the was game the November of is hands do the is release

form for of the the drive and And quality think a the top a engagement a game as concern. helped lot of while as keeping both I presales. player so in strong we're well really of excitement It's as expansion

that really doing content player new about with which players So personally I want I'm been are But experience. pre-patch. already we that talk about is the to passionate a future released Shadowlands

to really for streamline World goal multiple to have how for Warcraft level previous way the was system give newcomers to play a this up learning also of So people who And characters expansions. in

us before that our is teams community look very at way ecosystem operate we lot size the single into content bases of engaged WoW both the that distinct wealth unified about to under beyond. gives opportunity if franchise with of express both game a how is WoW more a see deliver a with to But of part we in all a always the before today really the So experiences growth Warcraft we in Thanks than modern modes we and expand subscription. game might opportunity we we and player follow and the to step development to to We've classic. it. new the the only ever for across plans and the warranty a for the of intend lot exploring huge of even and Warcraft more back XXXX WoW think content as question. talked Shadowlands

next Operator, please. Mike. question Thanks,

ahead. from The go Ng Goldman comes next question Mike Sachs. Please from

Good afternoon. just have for the question. X. Thanks I

in you any then or And truly available there future a of second, opportunity? market Is Any more to about on you you. Duty more making detailed of thoughts including be anything make China? mobile con Warzone can it update great. Thank by would opportunities about mobile? there First share talk the there on Call can Mobile cross-platform giving on the timing are

Rob. Mike, Hey, one. take it's I'll this

with off it's I and suggest importantly for that think most can the we're has by of In And strong the million our again of updates one I we really us a frequency driven did really we've quality downloads had a Duty a Mobile, proud into I with quarter at of is maintain very over updates metric of well the already fourth X-year the in high quarter. guess resonated give the we're world. third to big momentum of just happy here event. level lot you seen good We the success and anniversary the good starting the around on momentum Call XXX those now the really October, community. And continued start. sign would and

gross seen strongest The of first event that terms first the week bookings. of has we've been that week in

And nice and so that's continued positive a we're seeing. really momentum that

overall the approved future see can obviously of terms Call for in strong final we China do and still franchise talked about we testing. become Now revenues. And of now a to Mobile. in Duty been growth, significant how we believe title potential has contributor our it's

we it we can have in China. just to region. impact again, think great soon. see And it the Hope to not really see soon, So it's expect but

five top Mexico markets for and Brazil are example, both us For in revenue. and terms installs of

marketing to coming quarters. through big accessibility mobile over in the other increased a geographically opportunity see we through further expand markets and so And initiatives

big on and we to mobile Now Warzone. the to what's to PC. And includes that see point a experience console opportunity also connect further your happening

you As just Warzone strategic know very a any franchise. I initiative. but on an certainly important have announcements today for us is Warzone important is for us we're piece the it that going across don't share to

of happy talking into momentum these franchise we're opportunities on of Now with the growth really you. that well continue And next for Call Duty in and I across, to the think with have to Thank everything we're future. to on well and platform. mobile mobile about really for overall the Call do to Duty Call the we're seeing going positioned across we're best with invest going progress and is on now And experiences our we the of Duty bring capabilities console mobile PC and and on right talent year. believe we possible

Mike. Thanks,

Giaimo Alex go The next question from from Please Jefferies. comes ahead.

for Thanks the question.

acquisition. that as And the user about growth within you as high can Just or well hoping to impact advertising incremental level then business King color just some how can within segment you. both content just around maybe can talk and additional from provide IDSA Thank that any initiatives the you're further through you a the drive segment? potential thinking

for Humam. thanks the Alex, Hey, This is question.

the first. context second I'll then your the how kind overall on about we're of changes question that. IDSA thinking of Let in me provide the context business take and

as results, So great have advertising. also from business can and some purchases you we across in-app QX can the see both momentum in

deliver add for us So from with And looking On the noted also that Run. earlier, growth expect to will ahead, to that as in Bandicoot: next momentum we we launch you year. new Crash

So there. let the start dynamics me the and with – business but in-app

future. foundations clearly Our really and initiatives are us great laying for results base good some broaden for growth the payer delivering for are the to

a really And which one some Stars. results across was in Candy growth and And of just competitors we United example, and in particular, And around that limited so recently in give first-ever ran are driving opportunities To in Candy really we see few the All a United franchise us social investment. collaborative Kingdom quite and innovation we Kingdom. of tournament lot you reach ahead Candy's engagement. competitive that's including player terrific features saw the engagement

the to is exploring more about success. the thinking even really initiatives for so team on build And

King that acquisition of Network strong that drive the when significant majority ability think IDSA installs of in at in context Candy about point and brand on bring user we our a recognition new organically. scale players So I'd our you out and the

acquisition more our of many user on aggressive we much are competitors big reliant typically than So are.

will while So King on how see impact will we we on that of ultimately out the IDSA less we piece think the user change acquisition segment. this here an see plays

of heard number also really Now our we we as previous delivering by been the like evangelizing in for execution great driven product well, sponsorships, us. been quite that's brand-safe there you've And on we've a calls which and innovations introduced side platform. really really have performing been advertising strong

into believe for us have volatility really term short as year next future But direct that. some growth our the be context and there our as and comes IDFA may we sales own really advertising growth track when positioned industry in So a part own that of whole. in that investments

enables on, which to and that iconic launch add well I the Blizzard So the Again with top launch that of from next of from us we to Run! with to King's and brand expect a in will recognition. that, for year and as franchise Bandicoot: and year spring around would Crash On a benefit IP really a us going Activision catalog an line. bottom contribute deep is

into of really, now how for really changes of that. forward So in next on and the that our really as feel year. they carry one good I growth context right IDFA prospects the areas and about good momentum And business these part the Thank kind you. of each of

Thanks Alex. Operator, we please. have time for one last question

ahead. Please from is from question Mario Barclays. Lu go Next

Great. for more XXXX. the on Thanks that's longer-term questions. taking two. have One and I one

made real And outlook. XXXX in Dennis Activision just out how business execution benefit quickly features mentioned in years? with you down Call improvements play. to expanding you franchises XXXX allow trends? XX your the by of new-gen a the But So coming changes console company like and cross-platform new changes in itself those couple envision And evolving to of introducing of number Duty that do past of significant build new is and from couple the like to the five on company a next as and the into how you successful late then organization a new years XXXX on doubling platforms as in an will in the weeks, you

wanted year, of bottom next potential top am in just to or line much too does or it? I either Just Thanks. terms that into the reading year-on-year growth clarify mean

been the opportunity; with dividends. experiencing recall prioritizing longer-term And multiple have the we momentum really and changes look a you we're year I talent including of that this last when challenge few of year this. pay I when exist to the and But where that Mario, doing well it's those Duty. is I that one are that time seen starting franchises going time. and as in opportunity into for new aligned few as we opportunities And I've that development. few realizing us Those same Call I next years remember us the opportunities this particularly sure think the making at next The success the all of made look we Why for time over be all at year of have can opportunity I've over more like that long the and franchises years for now the we to growth than have of on points franchises potential years outlook? have expansion we're touch think this, we've the in our I going So don't don't doing the XXst in Bobby. a two now lot right then about next I take more margin a on my the opportunities. is

to have long-term think more delivery experiences, seeing a platforms, ever. entertainment our we're haven't in opportunities games becoming engagement of increasing from shift that interactive from as opportunity So player increasingly the the I deliver more more to that I investment models. frequent seen perspective, social, content, flexibility much we

better. challenge the ever the make right going effectively long-term have them. so outlook advantage been us it's if to about think them for But asking of And be take place people sure is I in don't to we you're and prioritize

on comment of just right we've that building Bobby's the comment is of Humam -- lot to long-term. to question, and section that regarding turning of of franchises you second XXXX. major my our And heard what near-term think And the given through the Rob, grow you terms part in specific guidance then the base for sprinkled being in and I results in off base for and in operating your of Jay, able growth think segment that I heard each opportunity which both the a

like So great do that execution. we real with we feel to opportunity have a

our great will we well we've got bode and that in we head think beyond. biggest franchise So as XXXX momentum and into

lot companies tonight. reporting had we know well So of everyone other a

appreciate to look today. weeks. time So and talking us we thanks spending you to many it. your with attention appreciate forward the this over of coming for We afternoon. time We really you But

now Thank presentation. attending conference The for today's you concluded. has

disconnect. now may You