Activision Blizzard (ATVI) 5 May 212021 Q1 Earnings call transcript

Good afternoon, and welcome to the Activision Blizzard First Quarter 2021 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 Chris Hickey, Senior Vice President, Investor Relations. Please go ahead.

you XXXX us conference thank Blizzard's for and quarter first call. afternoon, for today joining Activision Good With us are and COO; Bobby Kotick, CEO; Zerza, and Daniel CFO Dennis Durkin. Armin Alegre, President

the Allen are Kostich, be cause pandemic, results call be circumstances based of future and discussed Rob historical could risk factors we Form Sakhnini, statements. and as revisions King facts. while statements would will forward-looking date information us. this of of to those our company in any making also not actual ultimately COVID-XX President of company's everyone that after X, no like publicly XXXX differ in to release or to SEC include including Q&A, Annual any the of Report the For the future to reflect Humam in this Activision; Jay remind statements Blizzard obligation to Brack, President Entertainment; join These the events I number of expressed that forward-looking from materially company XXXX. XX-K, filings, will prove factors and shown. our on impact other the to May we available presentation incorrect. The believe is statements true The President circumstances on during presentation. may A any be undertakes And them they to forward-looking slide to today, the those on of this

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

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I myself Now will business leaders to ask answer question. join our Rob Dan, Bobby, your to and Operator?

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Next question.

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we together, Kingdom, the association put in in able and And the worked have when deeper and you we're deeper brands, long their example, one those United all drive just business category, say, across runway relationships and still for their constantly with develop the brands in in I growth we side. we as of And a to new their three believe different bringing should significant QX improvement metrics of so, we across. we brand brand. consideration Recall as were areas parts with three across or and Sky advertising

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in So stars competitive and are Candy moments mode we put help us more like add user on social as an example Crush we events of we bringing live Candy as launch exciting that more more our acquisition. March more features, as that broadly, Soda, the of

expect good all, over confidence in all we we in that you and saw, continue our momentum really few momentum quarters. next current and to as is that So ability to deliver the have

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

Kunaal from question Atlantic the Equities. And go is with Please next ahead. Malde

And new some areas do of going you I to color on be congrats differently what role. you wondering looking your Armin forward. your than Zerza give focus us if on Dennis? might Hi could was

me, all for Look comes to Kunal. execution. Thanks it Yes. down

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very the prioritize with working creation investment, resources focused to So towards I'm our and biggest value opportunities. team on

in a strong do but the I both plan. I for role play on commercially. context, just progress that against focus important targets has the believe as mentioned CFO of in and And creatively financial not Next also me commercial excellence that to achievement expect very operating overseeing execution an the our and

the should excellence. of to So result you all financial discipline expect our expect then of Officer that sure experiences course, And as continuous and make me company, my leverage Chief Blizzard, if you Chief of financial is around set Officer to Commercial Operating up of help and organizational success. focus for

culture our is Fortunately, operational won't change. centered that around growth, financial discipline, and conservatism and

today. on world discussed our perspective to be in a class growth that I to continue order plans have So support from organizational we focused an team finally building

really I you getting months. of So approaching what question Kunal. in I'm all there Thanks is gives meeting for I'm that out forward the a the coming your to hope But looking and role. of sense you how

have question we Operator Thanks. next can a please?

question next Stanley. go Morgan from Please The Nowak ahead. Brian is with

the sort talk to for maximize sequence Diablo, Thanks. on of one how the where Diablo the gamer innovation. ask followed room of to Mobile really us thus Thanks by about to picture from remaster by for about far a of hear Then Diablo importance of working are sort sort well interest. thinking want Mobile bigger approach about are areas taking are that Mobile. about versus you I followed having see the further any you Curious question. my a learnings to Diablo things particularly us beta for part

very Yes. And the audience we really lot put look fan we various massive and and expectations. a Thanks community the games and Diablo. question. exceed three the the direction have think really games that expect hours of am into decades. of a over personally I strategy overall the for excited to all XXXXs When Diablo delight at we've I Diablo releases the got and mentioned. expand in that about that their upcoming of you we're

both the going Mobile is to true with and fans and a are fans mainline authentic action an goal of Immortal of to is advance that genre. then that's IV II: we next again. there of Resurrected that the Diablo the classic really modern the title broaden and our to bring or there be Diablo come the world RPG for gaming audience is to feel play to Diablo So version it point going we Diablo back bringing as into think new going really in-gaming the art

progress a to first currently particularly We've time the we Diablo at reception PVP We the really far this history Diablo development it's around is second and milestones. Immortal the new in it's And development game system's introduced seen through community phase new year progress zones to We've another public so, to We've fan. in introduced With Diablo for continuing of and And Blizzconline of design. pretty important to content. also a the class the better class. more team a the Rogue the that shared Diablo we've seen been time the new And the events announced end the end the first be is testing. thus internal to The and spark lastly II public positive Diablo® in Diablo introduced IV. the never to looking respond Diablo we've in and we've forward high been as positively was we're the players then narrative that happened also players reintroduce love franchise. and to great. new II feedback authentic mobile of into additional Blizzards test continues. original being the top recently a in of really the experience really And on their and history, who start so this we received that's able what testing III of really landmark original. is and reception Diablo experience we're the that of bridging and of its that gap passion completed game On renewed II: kind an of Diablo storytelling at Resurrected Immortal bringing between happy

player we the this the And will ways think their welcome And different players world into Diablo on so the the platform around question. for that to of franchise all engage for is people with overall in the of kinds to choice. strategy all Diablo community. provide Thanks really

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

And with go Jeffries. question the is Please Andrew from Uerkwitz ahead. next

from far consoles the taking so or There you talk hard you XXXX. are then been game lastly, in home? you balancing of impacting hiring development all Are are scope? more? limiting Obviously how Are very have of few mental your this you out may working question. you for the quite to how you in employees have Are development? is a timelines? find. impacted Thank for of game aspects Thanks And for a crunch with XXXX Could pushing about kind delays all this you. other and

thank is question. the Daniel and for again Andrew This you

time really employee in thrown our find First amazed the team to in response they that pandemic reach number This shared And them and our that the to pandemic safety personally telephone our also of health needed every talent employees who if is very really our focus also physical company's proud Bobby been to constant of Early personal our we've both are with and by this managers has I'm the and to have in and they and recharge safe on at of and each employees. with many his they're able to help if adapted out that organization absolutely so people. any our curveballs when psychological. all need ensuring means touch ensure kept needed. the for

pipeline we've early development And that games defines development on in that we and and really company our with with we also have we're to to that game have milestone. pre-COVID the value fortunate game as we in and are game compromise because we seen fortunate impact a money. meeting result really significant question have your very that seen for XXXX also delivered As in haven't players to-date quality our best our for any had that we have just XXXX players the our expected the our current really the been games as haven't

to see. incredible been So it's

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us to Toronto as give access working at more pools see in some help and really So and years our us really in such Thanks deliver talent expanding you'll us are Andrew. the of teams even instance on Poland, ahead. studios in for of again to geographies adept great opening content across the locations to or

have question, next we can please? the Operator

go Markets. ahead Johnson The next Gerrick Please from question Capital from is BMO

you. Thank afternoon. Good

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

Sebastian go will question with Next come Colin Baird. Please ahead. from

afternoon. and good Thanks

congratulate out best more development this First, of on base perhaps of that to on types Dennis what's existing but games and and to I strategy you the the next. may the to up already well mobile as touched know new some just experiences? Thanks. bit new on mobile extending both Armin within broader to on exploring including all I the franchise as you genres a wish the be follow position wanted

be in This and wherever Look includes and players obviously take almost countries. franchises driver are smartphones billion Daniel and countries increase the even Colin mobile the with just have to again. That's only but not Thanks is accessible last our absolutely In is to so I this question. the of more in ultimate believe mobile, years. we forecasted developed that reach five worldwide. billion to in X developing the X will next

We the is critical why XX franchise appeal a franchises including on franchises most existing games. clear. core And mobile industry a to not are mobile in mobile really and are on Little and worldwide different for we are franchises they few mobile. some of all are the the world PC, regions the amongst top result, which mobile. ways based are well that franchises our on or in cases have platforms. that ourselves main known where might our want be way our around really particularly fact actually in console is the to be a are a of is represented that's IP play doing on almost several the And this and games be the to And really there in strategy. if people community crystal is can And as so opportunity our suited genres disservice

of to just or experience. done re-imagination You are PC make an number IP of strategy similar our to as And more part addition that mobile to a things. our existing may or platforms we've in of console a across a games an core have available franchise

our across initiatives King. be talent a has what through learnings we've acquired continued that proven And we by business, exemplified we the managing tremendous QX and on live business of platform or you King saw across also company, brought titles, user just the we're of Jay up was in well we from engagement, that And case results. in as mobile acquisition, momentum underway. following some to started Duty and with mobile game Call just Mobile, to mobile as referring Warcraft and and which obviously, unannounced Activision, a So also economies the Blizzard, with number leverage that ops, Diablo working

will they able enjoy the these So to building. mobile on and are console, franchises players experiences we be increasingly on PC, love

of And can of coming the mobile us. these you lot to continue priority hiring for work achieve this investment. a as developers this to is you results should We're A targets. Thanks real see of tell in hundreds Colin. So the quarters.

of getting mentioned participation. healthy. Thanks, forward This Daniel. you interest as for months. out call I looking your coming Thank and and there to and concludes our you meeting today all all really Stay in the I'm for

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

disconnect. now may You