Activision Blizzard, Inc. (NASDAQ:ATVI) Q1 2021 Earnings Conference Call May 4, 2021 4:30 PM ET Company Participants Christopher Hickey - SVP of IR Bobby Kotick - CEO Daniel Alegre - President & COO Armin Zerza - CCO Dennis Durkin - CFO Rob Kostich - President of Activision J. Allen Brack - President Humam Sakhnini - President of King Conference Call Participants Tyler Parker - KeyBanc Capital Markets Alexia Quadrani - JPMorgan Ryan Gee - Bank of America Mike Hickey - The Benchmark Company Kunaal Malde - At ...

Activision Blizzard, Inc. (NASDAQ:ATVI) Q4 2020 Earnings Conference Call February 4, 2021 4:30 PM ET Company Participants Christopher Hickey - Senior Vice President of Investor Relations Bobby Kotick - Chief Executive Officer Daniel Alegre - President & Chief Operating Officer Dennis Durkin - Chief Financial Officer Rob Kostich - President of Activision Jay Allen Brack - President Conference Call Participants Tyler Parker - KeyBanc Capital Markets Eric Sheridan - UBS Kunaal Malde - Atlantic Equities Colin ...

Activision Blizzard, Inc. (NASDAQ:ATVI) Q3 2020 Earnings Conference Call October 29, 2020 4:30 PM ET Company Participants Christopher Hickey - Senior Vice President of Investor Relations Bobby Kotick - Chief Executive Officer Daniel Alegre - President & Chief Operating Officer Dennis Durkin - Chief Financial Officer Rob Kostich - President of Activision Humam Sakhnini - President of King Conference Call Participants Ryan Gee - Barclays Matthew Thornton - Truist Securities Michael J. Hickey - The Benchmark C ...

Q3 2020 Financial Performance - Q3 GAAP revenues reached $1.95 billion, exceeding the guidance of $1.80 billion[10] - Q3 net bookings amounted to $1.77 billion, surpassing the guidance of $1.65 billion[10] - Q3 GAAP EPS hit a record of $0.78, compared to the guidance of $0.64[10] - Q3 non-GAAP EPS also reached a record of $0.88, exceeding the guidance of $0.75[10] Key Franchises Performance - Call of Duty, World of Warcraft, and Candy Crush are each projected to generate over $1 billion in net bookings this year[11] - Call of Duty console and PC in-game net bookings were four times higher year-over-year[16] - King delivered robust double-digit year-over-year growth in advertising net bookings[21] Monthly Active Users (MAUs) - Activision had 111 million MAUs[16] - Blizzard had 30 million MAUs[19] - King had 249 million MAUs[21] Segment Results - Activision's Q3 net revenues were $773 million, with a 45% operating margin[23] - Blizzard's Q3 net revenues were $411 million, with a 32% operating margin[23] - King's Q3 net revenues were $536 million, with a 46% operating margin[23] Balance Sheet - Cash and investments as of September 30, 2020, were $7.60 billion[28] - Gross debt as of September 30, 2020, was $3.65 billion[28]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-15839 ACTIVISION BLIZZARD, INC. (Exact name of registrant as specified in its charter) Delaware 95-4803544 (State or ot ...

Second Quarter 2020 Financial Performance - Q2 GAAP revenues reached $1.93 billion, exceeding the guidance of $1.69 billion[10] - Q2 net bookings amounted to $2.08 billion, surpassing the guidance of $1.68 billion[10] - Q2 GAAP EPS was $0.75, compared to the guidance of $0.54[10] - Q2 non-GAAP EPS reached $0.81, exceeding the guidance of $0.64[10] Segment Results - Activision's Q2 net revenues were $993 million, with a 56% operating margin[22] - Blizzard's Q2 net revenues were $461 million, with a 44% operating margin[22] - King's Q2 net revenues were $553 million, with a 38% operating margin[22] Key Growth Drivers and Metrics - Activision Blizzard had over 425 million players in Q2, with over 100 million players each in EMEA, Asia-Pacific, and the Americas[11] - Call of Duty saw an eight-fold year-over-year increase in hours played in the Modern Warfare universe in Q2[14] - Call of Duty in-game net bookings more than doubled quarter-over-quarter and were approximately five times higher than the prior year quarter[14] - King had 271 million monthly active users (MAUs) in Q2, with Candy Crush experiencing double-digit MAU growth[19] Balance Sheet - Cash and investments totaled $6.46 billion as of June 30, 2020[27] - Gross debt remained at $2.70 billion as of June 30, 2020[27]

Financial Data and Key Metrics Changes - The company reported Q2 GAAP revenues of $1.93 billion, exceeding guidance by $242 million, with net bookings of $2.08 billion, $403 million above prior outlook [29] - Q2 GAAP EPS was $0.75, with non-GAAP EPS at $0.81, which was $0.17 above guidance [29] - Operating cash flow for Q2 was $768 million, increasing over $600 million year-over-year [30] Business Line Data and Key Metrics Changes - Activision revenue reached $993 million, a 270% year-over-year increase, driven by Modern Warfare and Warzone in-game revenues [27] - Blizzard revenue was $461 million, growing 20% year-over-year, primarily due to World of Warcraft [28] - King revenue was $553 million, the highest since the 2016 acquisition, growing 11% year-over-year [28] Market Data and Key Metrics Changes - The player base grew 30% year-over-year, adding over 100 million monthly active players [10] - Time spent in games increased by 70% year-over-year, with Q2 engagement and player investment at historic highs [10] - In-game net bookings grew 77% year-over-year to a record $1.37 billion [28] Company Strategy and Development Direction - The company is focused on expanding audience reach, deepening engagement, and increasing player investment [16] - Investments in creative talent and development teams are aimed at delivering high-quality content more frequently [13] - The company plans to leverage the success of Call of Duty to drive growth across its other franchises [69] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing pandemic has accelerated trends in digital downloads and user engagement [40] - The company expects to continue benefiting from the social nature of its games, with a focus on retaining new players [41] - Despite uncertainties in the economic outlook, the company raised its full-year outlook for net bookings, revenue, and EPS [34] Other Important Information - The company has a strong balance sheet with cash and investments of approximately $6.5 billion and a net cash position of about $3.8 billion [30] - The company plans to launch major new content for key franchises in the second half of the year, including new titles for Call of Duty and World of Warcraft [32] Q&A Session Summary Question: How does COVID-19 act as an accelerant against industry trends? - Management believes COVID-19 has accelerated existing trends in gaming, leading to increased player numbers and engagement [40][41] Question: What are the marketing plans for Call of Duty this year? - The marketing strategy will leverage the larger, more engaged audience created by Warzone, allowing for more direct and targeted marketing [46][47] Question: How are development teams adapting to remote work? - Teams have adapted well to remote work, continuing to deliver content and maintain momentum for upcoming releases [53] Question: What trends have been seen in the advertising business? - The advertising business showed robust year-over-year growth, with ongoing investments in tech infrastructure and direct sales [58][60] Question: What is the sustainability of Call of Duty Mobile's performance? - Management is optimistic about the sustainability of Call of Duty Mobile's performance, with ongoing investments in content and marketing [62] Question: How can learnings from Call of Duty be applied to other franchises? - The integration of experiences across platforms and the success of free-to-play models are seen as applicable strategies for other franchises [67][69]