ATVI - Earnings call transcript Q1 2019 | Activision Blizzard, Inc.

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Operator

Good day, and welcome to the Activision Blizzard Q1 2019 Earnings Conference Call. At this time, I'd like to turn the conference over to Mr. Chris Hickey, Senior Vice President of Investor Relations. Please go ahead, sir.

Christopher Hickey

Thank you. you XXXX us conference thank Blizzard's for and quarter first call. afternoon for today joining Activision Good With us President are and COO; Bobby Kotick, CEO; Dennis Company Coddy Durkin, CFO and of Businesses. and Emerging Johnson, President Q&A for Rob Activision; of And J. President Kostich, Humam Blizzard; also President of us. President and Brack, King Sakhnini, Allen of will join during to historical facts. that we making this like I'd everyone statements be call, remind that not are for presentation the in The this are of based this information date forward-looking presentation. as Company available of the statements on they true, be may to them believe we while be to ultimately incorrect. And prove A results number in to from factors actual of could cause expressed and differ Company's the those any future circumstances forward-looking statements. other future materially that These XXXX include on those Form in our risk slide discussed and Annual showing. SEC is filings, Report factors including XX-K our the the on no any XXXX. The statements after obligation any forward-looking or publicly reflect X, today May to to release to revisions events circumstances Company undertakes

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

like we our non-GAAP addition, Bobby posting be highlighting Kotick. GAAP to introduce will overview both and financial I'd CEO, also In now, And results.

Robert Kotick

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

first operating discipline. Our reflecting results outlook prior our quarter strong exceeded

are biggest which franchises operational our are for the excellence we We known. resources our to refocusing on deliver

franchises, Call improving teams in franchises, continuing well. tasks last create our a difficult franchises remains with to approach outlined on franchise proven In doing to which Gamers only most its franchises most capabilities demands have that to teams innovation and is to and franchise world. new the creating successful are all the very this entertainment communities tens the of more order passed these XXX those million Diablo in exceeding entertainment that of have playing of execute over and and one focus enduring our and billion very, games. to industry break-out we is our there and meet time with own and We're services market invest many. few than longer, and the ever-increasing Warcraft quarter players anniversary we're Warcraft invested a drove popular sustaining the engaged tens their landscape, the we Hearthstone fortunate and birthday. content by scale new years players over even and In franchises massive we in investment Crush are the very fewer our World that the century is experiences. As and to a time staying some franchise over vision, We're true very today's prioritizing increasing XXth players in best are Company's talent, of and of of year sustain the Candy quarter, unlock great properties relevant in those ongoing and Overwatch potential. biggest have games Well ever. XXth focus our Warcraft, of the sales players' and resources one games long-term have users most launched. of supported cumulative approach the and franchises focused content. have but since recently Duty of for of fewer franchises celebrates have some the teams things our new intellectual global of of numbers features potential Over franchises selectively the of in seven success, better X.X of its millions played

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players, our always, our As highlights shareholders. will Coddy And partners you. for our the operations of and we're employees, now, review this grateful our our support of for the with quarter

Collister Johnson

and were Activision Thank driving you, quarter Crush, enabled first key for operating Focus our outlook. cost Candy and sales performance to upside. outperform factors Bobby. better favorable timing Strong Blizzard for expected discipline Sekiro than

the advantage reposition to opportunities. continue of growth future also take our to business We

steps, update to most into our the call. since I'd of we've last important our on been like specifics diving before of some taking you results, quarterly So the

our industry's and engage meet a a cadence strong our four features communities the we releases leadership and live drive events drivers: monetization we in-game of to expanding great long-term franchises operations engagement high-quality we and our largest we revenues; the demand of consumer have console build extend and to As and existing services, acclaimed where frequently; PC major continuously more initiatives. early growing third, we sure gaming to content reminder, as key growth mobile our communities deliver mobile first, second, of we release content where where robust franchises strategic make and extending and and fastest-growing platform; our and the advertising on eSports on success franchises in-game our in and finally, reach build fourth the content,

our Now realizing opportunities a reinforcing growth pipeline. to step product critical is its

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quarter active of is strategy for real-time was content where were from growth Reforged of both to active quarter-over-quarter users again million Azshara on quarter update user PC sequential already new of will and XXX complete large a high-definition and from the monthly Warcraft QX. up the King reimagination first monthly addition, III: grew In ground due users new year-over-year. Rise is this And driven include X% trends contribute in test players World zones, experience. new Warcraft retention called enabling the and year franchise expect quarters. and acquisition ROI QX, Candy the up Monetization accessible with of This This a dungeons rebuilt both second servers attract audience based our illustrates gameplay more. by Crush active active Crush users of straight monthly operations. through and its series franchise. financial ability launch franchise to results years coming strong Saga Kings to we Crush remain monthly new both in to from the to its events. in and Candy drive reach continue continue that and to Friends Candy expand to live King learnings ongoing features former engagement growth user seven after again updates, Candy continued content through in positive the strong to classic and on

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professional league is Duty of strong our start. mentioned, Bobby As to off city-based Call initiative a

the the to Increased We we that is to progress our leases Overwatch our event BlizzCon QX, upfront on the extend $XXX store up the in-game five during new sets returns partnerships we important to biggest to and investment in-game and developer delivered new continues two are teams are third in as of iterate game in-game for Ops King for and content was demand our of our models. that for biggest our app players testing ways they year-over-year, In their X. future. our features Center on franchises teams team to the key future and to expect on experiences the investment approximately to gaming. platforms can't in-game offerings players X, great deliver need in-game made bookings Call increasing and franchises in content, a the communities both that grossing titles. growth. resources mobile highest headcount summary, we the top teams for Duty to in well ultimate deliver Blizzard, League. net sold to foundation within lower services XXnd and participate quarter in net and resetting the first Black around wait and better engagement the from us with Player in mentioned, of In-game features And thrilled titles Anaheim in November our the in Convention for community investing our the but metric. ensure that content tools first at have XX and was our host our U.S. contributor the future The have for X to the know in in-game owners And fan bookings already row. million Blizzard for quarter. to mobile

we've executing the and company and remain solid we against outlook While long-term, start for detail. focused our we financial the the on are XXXX. now position also in results financial Dennis, review will outlook, to off for near-term a more

Dennis Durkin

in and Thanks, results increased the Coddy. quarter, segment will million, with in-game was of $XXX for outlook start results. QX, expected Crush expectation. lower full-year. our revenue Blizzard's I Activision line operating with XXXX our bookings down an review lower To Today, than as the to roughly for was better year-over-year I'll doubling review Sekiro. Key $XXX with was as flat due was income $XXX bookings, of year-over-year year-over-year the which Operating XX%, of grew of year-over-year. margin catalog our ads and quarterly well revenues, percentage revenue same was due by Candy business year-over-year. $XXX X% QX net year-over-year our to Call was investment launch Operating with due million Candy partially income XX%. of offset operating million with decline a King $XX successful period. to cost. contributors the margin margin lower Duty an million Crush was Blizzard were points million than operating marketing of in mix Friends. net and in-game more of the primarily over revenue $XX income effects. Operating million XX% X for

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

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

position In billion. of a flow cash cash balance and and billion in and over the generated $XXX QX investments, terms $X.X sheet, million we and of ended with $X.X of net flow approximately the operating cash cash quarter in

deliver content In slate will late on updates and the Nintendo the Black turn be X and our ops Overwatch to content will live expansion Archive release full-year. by players will team month. followed World of updates will with events Storm in its of QX, innovative Rising Racing April, with Warcraft let's fueled and This latest its events. Activision event, and the In future Blizzard of Crash single-player the nitro Hearthstone's QX, QX to X, of Shadows. PlayStation Ops Call Switch. content released will and course support to portfolio. Activision Rise outlook across and King Now keep support later and Hearthstone the engaged ever biggest for continue Xbox for game features Team to Duty: and and this One And And continue

most the Duty our second from will this year with important our of half in of new We the follow up release, Activision. Call title

the of release will and more Warcraft the deliver our we Candy for World Classic franchises portfolio. Blizzard and of addition, Crush in-game content Warcraft key Reforged will rest other In III: across and

Now I'll provide just context turn before a to little guidance. our I extra

in we content good but the early up, about First still very how feel is of very our year. it's line obviously all, up shaping

biggest and is Our competitive. environment until important card most QX not remains and the launch

In our performance over in driven expenses. by was QX, timing the primarily addition, earnings of

to are as abundance invest lineup With opportunity we of an year, our and planning these of of us, the still we still support this expenses bulk see incur particularly to ahead content opportunities assume material continue with income for prior Blizzard our new model new initiatives Coddy to as business our that for franchises including guidance, referenced. consistent year. this mobile Note Activision no we

Duty to year. material also eSports of a are revenue do result, sales net team outlook net recognize expect and EPS for We our revenues as from reaffirming XXXX. Call we And bookings, not this

into the specifics. me let Now get

we expect non-GAAP For deferrals revenues QX net $XXX GAAP of of recognition million. billion of on including $X.XX basis, the

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

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

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

a includes a of basis XX%, expect $X.XX. the of GAAP non-GAAP We including billion which of $X.XX revenues XXXX, rate non-GAAP $X.XX of and On of GAAP million. for of expect recognition $XXX EPS we tax deferrals net non-GAAP deferrals

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

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

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

We EPS includes expect the tax rate and non-GAAP of of $X.XX $X.XX. XX% deferrals which GAAP of non-GAAP

in year potential So made competitive summary, focused through the of staying tremendous us. progress QX the remains and in advantage team our dynamic, in time was The to change. in did a front solid the but internally a the backdrop of plan platform take business diversity start of We to clear create of our good to job of a We've company execution, our will deliver work confident focused strong longer-term growth. ahead. powerful still owned And model all geographic stakeholders talent plenty foundation on results that position franchises, time. have I'm us and need over and developer of but to a for for we repositioning remain

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

Operator

[Operator from with Quadrani Alexia take you. first question We'll Thank our Instructions] JPMorgan.

Alexia Quadrani

much. very Thank you

on player to performing city-based back of that Duty And Just the comments your the And or how translating monetization game? your any engagement of it Overwatch the can color further guess I Call versus to is give circling league. sort of you expectations? is League, how on

Robert Kotick

Sure. This is Bobby.

to continue way eSports. we said, in the professional lead I've As

But about creating value passion that always important the was to city-based professional our result these shareholders I able the have we've initiatives, us base the are we appeal lastly, commitment fan teams think being make is found lot to seen enduring we're to our really day. and our attract inspire players thing of When grow franchises. to say deepen that same most eSports in ultimate players teams, tremendous we've through and that we I to league affinity foster they we is every sports that games engagement everlasting you our franchises. players city-based For celebrate the examples who with only to think and eSports able want our our of be as reason more franchises. a initiatives. a sports create as and a can our the opportunity would created for the And this as that global what

If focused eSports has of think you results the our on years, last remarkable. achieved couple that about is the team

If period traditional to over of it example there's think in more to would've from of much the a that teams, time grow licensees. sponsors and couple at amount $X.X sell year and worth League the substantial broadcast time. Viewership continues you we're being taken generating look in Overwatch on billion able the don't now any of sports of revenues to rights I of from do and

that were have we've of that is league really initial have teams. XX So prices sold, for Call five over generated from ahead the perspective, that teams League commercial what the League for Duty of well of billion $X.X teams Between teams a well. doing the Overwatch prices and revenues, the the now Duty and we the Call were Overwatch of

momentum. We've a So we've got commercial lot great got of owners.

to initiatives our year up to great of substantially. gaming And lead in for viewership you this think I eSports. And that Jay with I'll off I the can we're respect overall, leave think with League we question. answer gaming, Overwatch season we've to to got professional a the continue

J. Allen Brack

Yes.

game for game the the positive. player the think sentiment, sentiment remains I

released support public approaching workshop their base to positive, have excited that Early able We and create. power the reaction on we and creative very some for own and for week, the have and been Last continue flexible we're add Overwatch giving developers the game I we're really really think see our to to to a what the continuing an be realm. teams even players though The are content build mode modes anniversary. of players This players. very to active to is are test features engagement. XXth player allows that has

how Over the game and be on as how continuing on rest us that focusing attention, and working about continue universe balance to ambitions for we I to over the add very existing franchise can Blizzard franchise the maps the And of to well we're going the And and that and have they the new Overwatch of experiences. it team resources large time. quarter and it's tentpole new as to the for the and can develop year, a have. for last a we'll so huge time. talked community grow continue is new heroes the over we work other Overwatch dedicate

Robert Kotick

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

Operator

with Baird. next our question take We'll Colin Sebastian from Absolutely.

Colin Sebastian

Thanks. Great.

success Just free-to-play you. given royale an update want provide to in well, more a I these advantage title could little company's take as follow-up for on market to of the the on the if trends? and of comments the free-to-play on Thank battle strategy wonder and you

Collister Johnson

Sure. No This is growth dynamic we lot I think how about think happening of context update today, highlighted, as you’re to of the ask specific broader in but Thanks it. Coddy. this And today. industry there's you right Colin. a

and we in mentioned see I free-to-play about think why broadly and have. growth and that how mobile, stepping in revenues, it's we back reposition that in just in-game the first But talking advertising. eSports, see I we place because in worth speaks in-game taking we real in it to growth in Asia, company

where about of ability go initiatives we the real that mentioned, coming you And just franchises, the as our need reach repositioning up the and right be us to some we years. as advantage at industry of specifically Battle of reach franchises into expand coming setting know And see so to where areas about to our growth is growth see approach competitors, one we can free-to-play our together. opportunity I portfolio. as those the those But able dedicated for impact to think start, resources our the Royale in take them really I in did from look across we the opportunity we combined who consumers importantly, to as see that we I space. for though. in head to

in in engaging of content kinds because company experience It to a these growing a of is always gameplay reach, is star monetization. lands the have constantly gameplay. is we're north the what make we player are why to and engagement multiple start itself Our It we trying of always models there. ecosystems. has ecosystem and monetization, But we different to and different compelling great do business re-examining sure to ecosystem have great

continue the look sale. of different Duty to Call just that what able pricing, some to different one provide year that traditionally growth is – with and look we to for and as player data, an of test and but upfront over to make they're this done really the thing we've content that appeal we clear be approaches at last we've upfront premium sure opportunities. offerings, for the evolving not at very enough to model we available and of by decade, to players, to experiences to to examine those closing, which from just advantage we really passes, our different post-launch new interest And repositioning to those evolve in to to significant content multiple want to you that do instance, of take sell things AAA can know and to upfront make that done, the consumers we pleased the If able coming has a understand want I part approaches resources do only of consistently be to had what ecosystems.

So we additional really to kinds at our these that areas. allow of growth But a will advantage number resources of us continue to additional look opportunities of model. take

Robert Kotick

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

Operator

take our next Equities. Kunaal from Absolutely. Malde with We'll Atlantic question

Kunaal Malde

we've want I ask sequential two growth. to of King about now because quarters seen MAUs,

base King for the are outlook how about forward? So the you going thinking Player

Humam Sakhnini

Hey, It's Kunaal. Yes. Humam.

Let me one. take that

King you to that saw kind just of as had sequential remarking is network equally of of the pleased see it's was and at growth saw, active network monthly XXX we that quarter, I'm of really which It's pleased that average and really the I quarter that time think across worth growth. first how this we strong since million we quarters of So two have after come And I'm QX, didn't launched engagement. Soda. we expense XXXX, the that users

record for had user. daily active we heard, time you spent As

Now XX it's about minutes.

we're focus mind marketing last we've to we're capitalize You we strong on in might I think also opportunities going put some some disciplined been us we bear able more have really off. about and had to pay clearly initiatives, should And on, that you about talked a our reach that heard seeing of very, year as we're that marketer.

network. more in do quarter-to-quarter. new So acquisition marketing And at advertising, that in always ways user and we're from and more monetization which momentum do then look within features to as we an we at the saw opportunities in now in aside, do unlock what includes ROI vary can strong our feed user advertising engagement But pipeline, that and enables always acquisition those is, framework, and positive we which drive we invest looking and QX. that that investments us introducing by

how coming to and stabilization going reach happy cost in user really quarters. in and we balance to the continue overall, So to see be disciplined we're acquisition that

Robert Kotick

Thanks have a Kunaal. next please? question Can we

Operator

Thank from you. Ng Michael next Sachs. We'll the Goldman question take from

Michael Ng

so Is much competition or a Hearthstone. weakness, in bookings that's Thank for just been digital the Shadows on driving Thank for for specific like any been And game trajectory been property there a collectible whether of to launch quarters anything where seems are have Rise that successful that's very one you following Hearthstone you that's declining of a have of question. to I five now. in years? been that's may the in cards April? It point you. revenue curve assuming inflection sort over the just several normal

J. Allen Brack

great over launched kind Hi, got The little this a franchise and game is for Hearthstone it's J. five is wanted I that million XXX ago us. of just years over say a players. to

that proud game such really feel has large also global the We a appeal.

features set game For latest where game on that the around depending engagement it's being Meta the of the with Meta sort community. one-time. Hearthstone How expansion the – the resonating the of from is in that at game moved year-to-year the do sort have And game. and think introduced future. of are larger what landing in We the been new can in be

team lot want the adding Hearthstone also taking the game. We're for that ideas in both, and a innovation really of accelerate. leadership And wants. they're the developers we for content have more the in in a of direction have team in confidence of the kind that community of some we the We to to more create

thing The up any is we venture. previous We in Shadows. year different to previous two highly the of you'll engagement out of drove our more going Rise has launched add experience. Throughout that things really content happy in game. see And come into substantially expansions. it April. above we the the continue it that re-playable we're That's the to next than mentioned PXP this month. that And released You rest

surprises overall large team and great of the the that so of everything in we some that feel And have about player community. sort

Robert Kotick

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

Operator

Thank you.

We hear from Tim will O'Shea now with Jefferies.

Tim O'Shea

I returning Yes. of With and Dennis philosophy just changes there's any made going sense around M&A terms the Thank Thank to to taking in capital for CFOC, hear you. it question. you to be if returns. the thought my

Dennis Durkin

core dividends. shareholders in balanced, Thanks. for have is All right, component obviously to Hey! appreciate you ensuring. buybacks track question. and the capital via time strategic investing know we and of be us or This I always the record covered how the disciplined Dennis. M&A a Well, Tim. a long across to long And is business trying you in that so we capital returning allocate of

them. long really as that you about not have gives time sheet. and to And follow-up you strategic strong making a a for opportunities, a as for we viewed we're find afraid that when balance And asset bets. think compelling big we We company tremendous the on flexibility a those

investment-grade time in benefits King Vivendi cases You've seen were when to approach strategic the And change In the be we with disciplined we the company and moved buyback and what's our both of important long-term. over for while about a XXXX. for borrow maintain balance also acquired we in grid. the we credit to in of deploy sheet it's in really up able flexibility rapid cash way our both in rating industry, fashion and best XXXX disciplined think our that this kind

approach nothing we disciplined terms should of allocation think about you changed yes, in capital So philosophy continuation has balanced expect of a forward. our how and going

Robert Kotick

And be can question, Annual about that about when you XX philosophy going just we please? that probably Tim I'll for had it's don't the over guys as and know Meeting philosophy. a as add to always us Berkshire time that analogy, we discipline a that Operator, veer for it's baseball not worth I because the – guiding to have from years, I'm well the for that think the we're you wait XX going for we're as Yes, that the pitch. next for Omaha to think off

Operator

with Mike Jaffray. you. Olson Thank We'll now hear from Piper now

Michael Olson

upcoming to this thanks feeling And can what's coming potentially the also fall. related Call version was for that's Duty the share afternoon. my question. of and good prospects wondering, the how about Hey, taking Thanks. mobile? of you And timing for I of you're latest Call Duty

Robert Kotick

Hey, Mike, for it's question. Thanks Rob. the

The feel to this game's quarter. game continue we later good about year's from this So incredibly going coming revealed Ward. be to Infinity

I release. think why it's then excited about we're going to the clear really be really so

attract obviously part of Call some with we platform can Call of of global powerful significant we see see really games potential that results. Duty's first-person for We're On starting on appeal, the to your obviously, the feel to mobile we Duty. action see substantial question, audiences and

the over with approaching in announced the tests discussed coming mobile Timi region recently outside before as on announced results taking of of XX the studios. granted Tencent's million and and been in now to for ways here. which a content game, We're also the really, encouraged the the result of the we're we're significant developed for of in ton new we it through a one partnerships. case Play but by pre-registrations the title. Tencent's have the The two Google top resumption internally Call not China, Now for opportunity the anything as And had of really mobile a we all really strong up through mobile, working is what Duty is after in Duty And we to Call we've China, we've encouraging well. of regional approval really, continues and game And from pretty behind putting of shape resource that interest really is both saw community.

about we're have really question, can Thanks and the prudently we please. the sum you their the we year country just prospects. for can for for franchise the mobile stated Operator, overall. the we for good up excited games it this planning feel that Call pipeline honestly, next in As Duty and assume And of question. we're have particularly to that

Operator

move now Thornton with on SunTrust. We'll you. to Matthew Thank

Matthew Thornton

seen as than we've And Hey, as particular, Crush issues? and guys. of King we the question my how forward Candy good acceleration start the back in year. afternoon, network the we of growth about franchise we talked everyone. taking here grew disruption disruptions sustainable recently? in Thanks, that the Maybe past some you is, Thanks to last to expect And coming here for look is some some network question. can through comp those

Humam Sakhnini

reach heard. strong QX Hey, for again. a franchise monetization. yes, you quarter in year Humam disruption We've And Candy as really had cause it's in and a step-down the network last did

highlight to evergreen of and and of in to in franchise, this into market which of few had So Shows when durability things illustrates build within year-on-year The in And point, XXXX, again titles, franchise, the I with you developing is to down stepped more we've bookings will has grew strength the up XXXX, first was about is app connections our here long-term the how franchise. two on kind in QX. do the launched the really the durability our direct franchise the want grossing players. it But In since the XXXX. there. new Candy a bookings stores. to think I franchise top the we within the comes continued of just XXXX, created it say mind successfully ever since that over growth initiatives disruption, net our first franchise. internal Soda my that U.S. XX year-on-year the ability that now launched Candy titles

live really We trends – features. former new monetization earlier. I players, in in Candy So third, strong. And opportunities pieces and new those take on content a we constantly to retention And XXXX in the our in our about and titles. Crush bring content and our players players continue And ROI and XXXX, discussed October that we think to launched remain disciplined that invest Friends to very very that. and we we fresh live prudently and thoughtfully that of titles we're approach putting innovate deliver within marketing

good ability in to our to really these and as of franchise feel deliver in executing Candy a I result the growth ongoing So, areas continue that. about

Robert Kotick

operator? Thanks, please, next have question Can the Matt. we

Operator

We'll question take Company. next The from with Hickey Mike our you. Thank Benchmark

Michael Hickey

hopeful Blizzard guys. for more additional and – pipeline. strong QX, of Hey, on that bit year. some your the start visibility you. a I could question was guess provide congrats little you or some just Thanks taking my good a I color within maybe Thank

J. Allen Brack

talked that Hi. for World meet important the and BlizzCon give and the console center This Coddy This about X make the our we to better a to known me important critical the to is initiatives. have that really X pretty lastly, convention it's and the question. both It products for. our includes larger – motivated. we super want is releases. teams developer at richer show quality last to consistent we and It's and before. the in teams and content working reason impatient hard is we've community kids. the prove, personally. that content event. J. the those talked talk space Hearthstone release increased get just everyone, Thanks these of Anaheim includes as players We and an topic a all to pipeline for ourselves. for that feel Blizzard of significantly and than and more November mobile it's head announcing lot of We to We're front got I PC count returning is Warcraft, ever it games couple The Blizzard to excellence and highly all said consistently to really a are and great about a And Overwatch, to It create we're about quarter. earlier ongoing

Robert Kotick

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

Operator

Brian Morgan from with Thank you. question We'll Stanley. take our last Nowak

Matthew Costa

the for Hi. Costa Matthew This taking Brian. for question. Thanks on is

large from that any you. Can payers Project entrants? large with number the Thank opportunity, in of new contextualize Just on between those the obviously going thoughts and give been now into platform gaming you Google your a on Microsoft space number opportunity and view cloud Stadia – there's X cloud.

Robert Kotick

companies of Thanks been these It's better question. business. own like there's do, you a XX Bobby. games IP And years be never when Yes. probably company we limited the for have the to in well-funded for When big time amounts that of to that up out a serve I'd they building actually to like content opportunity say ours. there's are customers. platforms great a

a it. gaming so. to all audience And for really and great without can for And try to and these don't growing none they I truthfully, just content. in that's they case market. big think succeed the make in of commitments helpful But doing for will starters make platforms know each investments broaden how

audience. will And new So, when be that think it I required most than all these support to from what there. better be them a opportunity think allow platforms we to about you to have capitalize that will will actually on build us be

so fact our we we with own customers. XXX the today almost to our is addition, evolving In way that million connect that have and in the changing distribution direct customers relationships with own actually and

XX say years, I So five better the net, than engage places will company. and ways us other there players to serves the you be more to would almost next any and as that think about

Christopher Hickey

Thanks EX on And quarter. us next today. for in you everyone then the L.A. you if to joining for of see perhaps for call then I we next not thank right, look seeing month forward All you the many time. guess

Operator

today's conference. Thank all for you you. does conclude Thank That participation.

You disconnect. now may

Christopher Hickey	Senior Vice President, Investor Relations
Robert Kotick	Chief Executive Officer
Collister Johnson	President and Chief Operating Officer
Dennis Durkin	Chief Financial Officer and President, Emerging Businesses
Robert Kostich	President of Activision
J. Allen Brack	President of Blizzard
Humam Sakhnini	President of King
Alexia Quadrani	JPMorgan Chase & Co.
Colin Sebastian	Robert W. Baird & Co.
Kunaal Malde	Atlantic Equities
Michael Ng	Goldman Sachs Group Inc.
Tim O'Shea	Jefferies LLC
Michael Olson	Piper Jaffray & Co.
Matthew Thornton	SunTrust Robinson Humphrey
Michael Hickey	The Benchmark Company, LLC
Matthew Costa	Morgan Stanley

Activision Blizzard (ATVI) 2 May 192019 Q1 Earnings call transcript