SANTA MONICA, Calif.--(BUSINESS WIRE)--Activision Blizzard, Inc. (Nasdaq: ATVI) today announced first quarter 2022 results.
Financial Metrics |
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|
|
Q1 |
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(in millions, except EPS) |
|
2022 |
|
2021 |
GAAP Net Revenues |
|
$1,768 |
|
$2,275 |
Impact of GAAP deferralsA |
|
$(287) |
|
$(209) |
|
|
|
|
|
GAAP EPS |
|
$0.50 |
|
$0.79 |
Non-GAAP EPS |
|
$0.64 |
|
$0.98 |
Impact of GAAP deferralsA |
|
$(0.26) |
|
$(0.14) |
Please refer to the tables at the back of this earnings release for a reconciliation of the company’s GAAP and non-GAAP results.
For the quarter ended March 31, 2022, Activision Blizzard’s net revenues presented in accordance with GAAP were $1.77 billion, as compared with $2.28 billion for the first quarter of 2021. GAAP net revenues from digital channels were $1.59 billion. GAAP operating margin was 27%. GAAP earnings per diluted share was $0.50, as compared with $0.79 for the first quarter of 2021. On a non-GAAP basis, Activision Blizzard’s operating margin was 34% and earnings per diluted share was $0.64, as compared with $0.98 for the first quarter of 2021.
Activision Blizzard generated $642 million in operating cash flow for the quarter as compared with $844 million for the first quarter of 2021.
Please refer to the tables at the back of this press release for a reconciliation of the company’s GAAP and non-GAAP results.
Operating Metrics
For the quarter ended March 31, 2022, Activision Blizzard’s net bookingsB were $1.48 billion, as compared with $2.07 billion for the first quarter of 2021. In-game net bookingsC were $1.01 billion, as compared with $1.34 billion for the first quarter of 2021.
For the quarter ended March 31, 2022, overall Activision Blizzard Monthly Active Users (MAUs)D were 372 million.
Microsoft transaction
As announced on January 18, 2022, Microsoft plans to acquire Activision Blizzard for $95.00 per share, in an all-cash transaction. The transaction is subject to customary closing conditions and completion of regulatory review and Activision Blizzard's stockholder approval. The transaction, which is expected to close in Microsoft’s fiscal year ending June 30, 2023, has been approved by the boards of directors of both Activision Blizzard and Microsoft.
Conference Call and Earnings Presentation
In light of the proposed transaction with Microsoft, and as is customary during the pendency of an acquisition, Activision Blizzard will not be hosting a conference call, issuing an earnings presentation, or providing financial guidance in conjunction with its first quarter 2022 earnings release. For further detail and discussion of our financial performance please refer to our upcoming quarterly report on Form 10-Q for the quarter ended March 31, 2022.
Selected Business Highlights
Activision Blizzard continued to engage and connect its network of hundreds of million people worldwide in the first quarter. Financial performance declined year-over-year, primarily reflecting lower results for Call of Duty and product cycle timing at Blizzard, offsetting robust growth at King. The company incurred an increase in legal and other professional fees, primarily driven by costs associated with our proposed transaction with Microsoft. We continue to increase investment in our development resources in order to meet the demand from our players, and grew our developer headcount by several hundred people in the first quarter. Our teams are making strong progress on a broad pipeline of compelling content for established franchises, which we expect to drive renewed expansion in the business in the fourth quarter and longer term.
Activision Blizzard is committed to ensuring an inclusive and safe working environment for its employees, and in the first quarter continued to implement previously announced initiatives to strengthen its practices and policies. In March, the federal court approved the company’s settlement with the EEOC, paving the way to compensate eligible complainants through an $18 million fund. In April, the company announced the conversion of over 1,000 temporary workers to full-time employees, with most receiving increased wages and benefits. We also announced the appointment of Kristen Hines as the company’s new Chief Diversity, Equity, and Inclusion Officer.
Balance Sheet and Dividend
About Activision Blizzard
Our mission, to connect and engage the world through epic entertainment, has never been more important. Through communities rooted in our video game franchises we enable hundreds of millions of people to experience joy, thrill and achievement. We enable social connections through the lens of fun, and we foster purpose and a sense of accomplishment through healthy competition. Like sport, but with greater accessibility, our players can find purpose and meaning through competitive gaming. Video games, unlike any other social or entertainment media, have the ability to break down the barriers that can inhibit tolerance and understanding. Celebrating differences is at the core of our culture and ensures we can create games for players of diverse backgrounds in the 190 countries our games are played.
As a member of the Fortune 500 and as a component company of the S&P 500, we have an extraordinary track record of delivering superior shareholder returns for over 30 years.
Our enduring franchises are some of the world’s most popular, including Call of Duty®, Crash Bandicoot™, Warcraft®, Overwatch®, Diablo®, StarCraft®, Candy Crush™, Bubble Witch™, Pet Rescue™ and Farm Heroes™. Our sustained success has enabled the company to support corporate social responsibility initiatives that are directly tied to our franchises. As an example, our Call of Duty Endowment has helped find employment for over 90,000 veterans.
Learn more information about Activision Blizzard and how we connect and engage the world through epic entertainment on the company's website, www.activisionblizzard.com.
1 Based on App Annie Intelligence.
A Net effect of accounting treatment from revenue deferrals on certain of our online-enabled products. Since certain of our games are hosted online or include significant online functionality that represents a separate performance obligation, we defer the transaction price allocable to the online functionality from the sale of these games and then recognize the attributable revenues over the relevant estimated service periods, which are generally less than a year. The related cost of revenues is deferred and recognized as an expense as the related revenues are recognized. Impact from changes in deferrals refers to the net effect from revenue deferrals accounting treatment for the purposes of revenues, along with, for the purposes of EPS, the related cost of revenues deferrals treatment and the related tax impacts. Internally, management excludes the impact of this change in deferred revenues and related cost of revenues when evaluating the company’s operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. Management believes this is appropriate because doing so enables an analysis of performance based on the timing of actual transactions with our customers. In addition, management believes excluding the change in deferred revenues and the related cost of revenues provides a much more timely indication of trends in our operating results.
B Net bookings is an operating metric that is defined as the net amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and publisher incentives, among others, and is equal to net revenues excluding the impact from deferrals.
C In-game net bookings primarily includes the net amount of downloadable content and microtransactions sold during the period, and is equal to in-game net revenues excluding the impact from deferrals.
D Monthly Active User (“MAU”) Definition: We monitor MAUs as a key measure of the overall size of our user base. MAUs are the number of individuals who accessed a particular game in a given month. We calculate average MAUs in a period by adding the total number of MAUs in each of the months in a given period and dividing that total by the number of months in the period. An individual who accesses two of our games would be counted as two users. In addition, due to technical limitations, for Activision and King, an individual who accesses the same game on two platforms or devices in the relevant period would be counted as two users. For Blizzard, an individual who accesses the same game on two platforms or devices in the relevant period would generally be counted as a single user. In certain instances, we rely on third parties to publish our games. In these instances, MAU data is based on information provided to us by those third parties, or, if final data is not available, reasonable estimates of MAUs for these third-party published games.
Non-GAAP Financial Measures: As a supplement to our financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), Activision Blizzard presents certain non-GAAP measures of financial performance. These non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or as more important than, the financial information prepared and presented in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the company’s results of operations as determined in accordance with GAAP.
Activision Blizzard provides net income (loss), earnings (loss) per share, and operating margin data and guidance both including (in accordance with GAAP) and excluding (non-GAAP) certain items. When relevant, the company also provides constant FX information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. In addition, Activision Blizzard provides EBITDA (defined as GAAP net income (loss) before interest (income) expense, income taxes, depreciation, and amortization) and adjusted EBITDA (defined as non-GAAP operating margin (see non-GAAP financial measure below) before depreciation). The non-GAAP financial measures exclude the following items, as applicable in any given reporting period and our outlook:
In the future, Activision Blizzard may also consider whether other items should also be excluded in calculating the non-GAAP financial measures used by the company. Management believes that the presentation of these non-GAAP financial measures provides investors with additional useful information to measure Activision Blizzard’s financial and operating performance. In particular, the measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of Activision Blizzard by excluding certain items that may not be indicative of the company’s core business, operating results, or future outlook. Additionally, we consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Internally, management uses these non-GAAP financial measures, along with others, in assessing the company’s operating results, and measuring compliance with the requirements of the company’s debt financing agreements, as well as in planning and forecasting.
Activision Blizzard’s non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles, and the terms non-GAAP net income, non-GAAP earnings per share, non-GAAP operating margin, and non-GAAP or adjusted EBITDA do not have a standardized meaning. Therefore, other companies may use the same or similarly named measures, but exclude different items, which may not provide investors a comparable view of Activision Blizzard’s performance in relation to other companies.
Management compensates for the limitations resulting from the exclusion of these items by considering the impact of the items separately and by considering Activision Blizzard’s GAAP, as well as non-GAAP, results and outlook, and by presenting the most comparable GAAP measures directly ahead of non-GAAP measures, and by providing a reconciliation that indicates and describes the adjustments made.
Cautionary Note Regarding Forward-looking Statements: The statements contained herein that are not historical facts are forward-looking statements including, but not limited to statements about: (1) projections of revenues, expenses, income or loss, earnings or loss per share, cash flow, or other financial items; (2) statements of our plans and objectives, including those related to releases of products or services; (3) statements of future financial or operating performance, including the impact of tax items thereon; (4) statements regarding the proposed transaction between Activision Blizzard and Microsoft (such transaction, “the proposed transaction with Microsoft”), including any statements regarding the expected timetable for completing the proposed transaction with Microsoft, the ability to complete the proposed transaction with Microsoft, and the expected benefits of the proposed transaction with Microsoft; and (5) statements of assumptions underlying such statements. Activision Blizzard, Inc. generally uses words such as “outlook,” “forecast,” “will,” “could,” “should,” “would,” “to be,” “plan,” “aims,” “believes,” “may,” “might,” “expects,” “intends,” “seeks,” “anticipates,” “estimate,” “future,” “positioned,” “potential,” “project,” “remain,” “scheduled,” “set to,” “subject to,” “upcoming,” and the negative version of these words and other similar words and expressions to help identify forward-looking statements. Forward-looking statements are subject to business and economic risks, reflect management’s current expectations, estimates, and projections about our business, and are inherently uncertain and difficult to predict.
We caution that a number of important factors, many of which are beyond our control, could cause our actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements. Such factors include, but are not limited to: risk that the proposed transaction with Microsoft may not be completed in a timely manner or at all, which may adversely affect our business and the price of our common stock; the failure to satisfy the conditions to the consummation of the proposed transaction with Microsoft, including shareholder approval and the receipt of certain governmental and regulatory approvals; the occurrence of any event, change, or other circumstance that could give rise to the termination of the Agreement and Plan of Merger, dated as of January 18, 2022, by and among Activision Blizzard, Microsoft, and Anchorage Merger Sub Inc., a wholly owned subsidiary of Microsoft (the “Microsoft Merger Agreement”); the effect of the announcement or pendency of the proposed transaction with Microsoft on our business relationships, operating results, and business generally; risks that the proposed transaction with Microsoft disrupts our current plans and operations and potential difficulties in employee retention as a result of the proposed transaction with Microsoft; risks related to diverting management’s attention from ongoing business operations; the outcome of any legal proceedings that have been or may be instituted against us related to the Microsoft Merger Agreement or the transactions contemplated thereby; restrictions during the pendency of the proposed transaction with Microsoft that may impact our ability to pursue certain business opportunities or strategic transactions; the potential for receipt of alternative acquisition proposals from potential acquirors; the global impact of the ongoing COVID-19 pandemic (including, without limitation, the potential for significant short- and long-term global unemployment and economic weakness and a resulting impact on global discretionary spending; potential strain on the retailers, distributors, and manufacturers who sell our physical products to customers and the platform providers on whose networks and consoles certain of our games are available; effects on our ability to release our content in a timely manner and with effective quality control; effects on our ability to prevent cyber-security incidents while our workforce is disbursed; effects on the operations of our professional esports leagues; the impact of large-scale intervention by the Federal Reserve and other central banks around the world, including the impact on interest rates; increased demand for our games due to stay-at-home orders and curtailment of other forms of entertainment, which may not be sustained and may fluctuate as stay-at-home orders are reduced, lifted, and/or reinstated; macroeconomic impacts arising from the long duration of the COVID-19 pandemic, including labor shortages and supply chain disruptions; and volatility in foreign exchange rates); our ability to consistently deliver popular, high-quality titles in a timely manner, which has been made more difficult as a result of the COVID-19 pandemic; our ability to satisfy the expectations of consumers with respect to our brands, games, services, and/or business practices; negative impacts on our business from concerns regarding our workplace; our ability to attract, retain, and motivate skilled personnel; competition; concentration of revenue among a small number of franchises; negative impacts from unionization or attempts to unionize by our workforce; rapid changes in technology and industry standards; increasing importance of revenues derived from digital distribution channels; our ability to manage the continued growth in the scope and complexity of our business; substantial influence of third-party platform providers over our products and costs; success and availability of video game consoles manufactured by third parties, including our ability to predict the consoles that will be most successful in the marketplace and develop commercially-successful products for those consoles; risks associated with the free-to-play business model, including our dependence on a relatively small number of consumers for a significant portion of revenues and profits from any given game; risks and uncertainties of conducting business outside the U.S., including the need for regulatory approval to operate, impacts on our business arising from the current conflict between Russia and Ukraine, the relatively weaker protection for our intellectual property rights, and the impact of cultural differences on consumer preferences; risks associated with the retail sales business model; our ability to realize the expected benefits of our recent restructuring actions; difficulties in integrating acquired businesses or otherwise realizing the anticipated benefits of strategic transactions; the seasonality in the sale of our products; fluctuation in our recurring business; risks relating to behavior of our distributors, retailers, development, and licensing partners, or other affiliated third parties that may harm our brands or business operations; our reliance on tools and technologies owned by third parties; risks associated with our use of open source software; risks associated with undisclosed content or features that may result in consumers’ refusal to buy or retailers’ refusal to sell our products; risks associated with objectionable consumer- or other third-party-created content; outages, disruptions or degradations in our services, products, and/or technological infrastructure; data breaches, fraudulent activity, and other cybersecurity risks; significant disruption during our live events; risks related to the impacts of catastrophic events; climate change; provisions in our corporate documents that may make it more difficult for any person to acquire control of our company; ongoing legal proceedings related to workplace concerns and otherwise, including the impact of the complaint filed in 2021 by the California Department of Fair Employment and Housing alleging violations of the California Fair Employment and Housing Act and the California Equal Pay Act and separate investigations and complaints by other parties and regulators related to certain employment practices and related disclosures; successful implementation of the requirements of the court-approved consent decree with the Equal Employment Opportunity Commission; intellectual property claims; increasing regulation in key territories; regulation relating to the Internet, including potential harm from laws impacting “net neutrality”; regulation concerning data privacy, including China’s recently passed Personal Information Protection Law; scrutiny regarding the appropriateness of our games’ content, including ratings assigned by third parties; changes in tax rates and/or tax laws or exposure to additional tax liabilities; fluctuations in currency exchange rates; impacts of changes in financial accounting standards; insolvency or business failure of any of our business partners, which has been magnified as a result of the COVID-19 pandemic; risks associated with our reliance on discretionary spending; and the other factors included in “Risk Factors” included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission.
The forward-looking statements contained herein are based on information available to Activision Blizzard, Inc. as of the date of this filing, and we assume no obligation to update any such forward-looking statements. Actual events or results may differ from those expressed in forward-looking statements. As such, you should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained herein primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results, prospects, strategy, and financial needs. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and may cause actual results to differ materially from current expectations.
Additional Information and Where to Find It
In connection with the transaction, Activision Blizzard has filed with the SEC and mailed to Activision Blizzard stockholders entitled to vote at the special meeting to approve the transaction a definitive proxy statement on March 21, 2022 (as amended or supplemented from time to time, the “definitive proxy statement”). INVESTORS AND SECURITY HOLDERS OF ACTIVISION BLIZZARD ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT ACTIVISION BLIZZARD HAS FILED OR WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY DO OR WILL CONTAIN IMPORTANT INFORMATION ABOUT ACTIVISION BLIZZARD AND THE TRANSACTION. The definitive proxy statement and other relevant materials in connection with the transaction (when they become available), and any other documents filed by Activision Blizzard with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov) or at Activision Blizzard’s website (https://investor.Activision.com) or by writing to Activision Blizzard, Investor Relations, 2701 Olympic Boulevard, Building B, Santa Monica, CA 90404.
Activision Blizzard and certain of its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from Activision Blizzard’s stockholders with respect to the transaction. Information about Activision Blizzard’s directors and executive officers and their ownership of Activision Blizzard’s common stock is set forth in the definitive proxy statement. To the extent that holdings of Activision Blizzard’s securities have changed since the amounts printed in the definitive proxy statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Information regarding the identity of the participants, and their direct or indirect interests in the transaction, by security holdings or otherwise, are set forth in the definitive proxy statement and other materials filed with the SEC in connection with the transaction.
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in millions) |
||||||
|
Three Months Ended March 31, |
|||||
|
2022 |
|
2021 |
|||
Net revenues |
|
|
|
|||
Product sales |
$ |
386 |
|
|
$ |
675 |
In-game, subscription, and other revenues1 |
|
1,382 |
|
|
|
1,600 |
Total net revenues |
|
1,768 |
|
|
|
2,275 |
|
|
|
|
|||
Costs and expenses |
|
|
|
|||
Cost of revenues—product sales: |
|
|
|
|||
Product costs |
|
91 |
|
|
|
140 |
Software royalties, amortization, and intellectual property licenses |
|
81 |
|
|
|
112 |
Cost of revenues—in-game, subscription, and other: |
|
|
|
|||
Game operations and distribution costs |
|
288 |
|
|
|
296 |
Software royalties, amortization, and intellectual property licenses |
|
19 |
|
|
|
30 |
Product development |
|
346 |
|
|
|
353 |
Sales and marketing |
|
252 |
|
|
|
237 |
General and administrative |
|
214 |
|
|
|
282 |
Restructuring and related costs |
|
(2 |
) |
|
|
30 |
Total costs and expenses |
|
1,289 |
|
|
|
1,480 |
|
|
|
|
|||
Operating income |
|
479 |
|
|
|
795 |
|
|
|
|
|||
Interest and other expense (income), net |
|
14 |
|
|
|
30 |
Income before income tax expense |
|
465 |
|
|
|
765 |
|
|
|
|
|||
Income tax expense |
|
70 |
|
|
|
146 |
|
|
|
|
|||
Net income |
$ |
395 |
|
|
$ |
619 |
|
|
|
|
|||
Basic earnings per common share |
$ |
0.51 |
|
|
$ |
0.80 |
Weighted average common shares outstanding |
|
780 |
|
|
|
775 |
|
|
|
|
|||
Diluted earnings per common share |
$ |
0.50 |
|
|
$ |
0.79 |
Weighted average common shares outstanding assuming dilution |
|
786 |
|
|
|
783 |
1 | In-game, subscription, and other revenues represent revenues from microtransactions and downloadable content, World of Warcraft subscriptions, licensing royalties from our products and franchises, and other miscellaneous revenues. |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in millions) |
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|
March 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
10,967 |
|
|
$ |
10,423 |
|
Accounts receivable, net |
|
530 |
|
|
|
972 |
|
Software development |
|
433 |
|
|
|
449 |
|
Other current assets |
|
556 |
|
|
|
712 |
|
Total current assets |
|
12,486 |
|
|
|
12,556 |
|
Software development |
|
289 |
|
|
|
211 |
|
Property and equipment, net |
|
174 |
|
|
|
169 |
|
Deferred income taxes, net |
|
1,308 |
|
|
|
1,377 |
|
Other assets |
|
511 |
|
|
|
497 |
|
Intangible assets, net |
|
445 |
|
|
|
447 |
|
Goodwill |
|
9,799 |
|
|
|
9,799 |
|
Total assets |
$ |
25,012 |
|
|
$ |
25,056 |
|
|
|
|
|
||||
Liabilities and Shareholders' Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
207 |
|
|
$ |
285 |
|
Deferred revenues |
|
835 |
|
|
|
1,118 |
|
Accrued expenses and other liabilities |
|
1,249 |
|
|
|
1,008 |
|
Total current liabilities |
|
2,291 |
|
|
|
2,411 |
|
Long-term debt, net |
|
3,608 |
|
|
|
3,608 |
|
Deferred income taxes, net |
|
375 |
|
|
|
506 |
|
Other liabilities |
|
907 |
|
|
|
932 |
|
Total liabilities |
|
7,181 |
|
|
|
7,457 |
|
|
|
|
|
||||
Shareholders' equity |
|
|
|
||||
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
11,927 |
|
|
|
11,715 |
|
Treasury stock |
|
(5,563 |
) |
|
|
(5,563 |
) |
Retained earnings |
|
12,053 |
|
|
|
12,025 |
|
Accumulated other comprehensive loss |
|
(586 |
) |
|
|
(578 |
) |
Total shareholders’ equity |
|
17,831 |
|
|
|
17,599 |
|
Total liabilities and shareholders’ equity |
$ |
25,012 |
|
|
$ |
25,056 |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES SUPPLEMENTAL CASH FLOW INFORMATION (Amounts in millions) |
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|
Three Months Ended |
|
|
|||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
Year over Year
|
||||||
Cash Flow Data |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Cash Flow |
|
$ |
844 |
|
$ |
388 |
|
$ |
521 |
|
$ |
661 |
|
$ |
642 |
|
(24 |
) % |
Capital Expenditures |
|
|
22 |
|
|
14 |
|
|
23 |
|
|
21 |
|
|
15 |
|
(32 |
) |
Non-GAAP Free Cash Flow1 |
|
$ |
822 |
|
$ |
374 |
|
$ |
498 |
|
$ |
640 |
|
$ |
627 |
|
(24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Cash Flow - TTM2 |
|
$ |
2,948 |
|
$ |
2,568 |
|
$ |
2,893 |
|
$ |
2,414 |
|
$ |
2,212 |
|
(25 |
) |
Capital Expenditures - TTM2 |
|
|
81 |
|
|
82 |
|
|
81 |
|
|
80 |
|
|
73 |
|
(10 |
) |
Non-GAAP Free Cash Flow1 - TTM2 |
|
$ |
2,867 |
|
$ |
2,486 |
|
$ |
2,812 |
|
$ |
2,334 |
|
$ |
2,139 |
|
(25 |
) % |
1 | Non-GAAP free cash flow represents operating cash flow minus capital expenditures. |
|
2 | TTM represents trailing twelve months. Operating Cash Flow for three months ended June 30, 2020, three months ended September 30, 2020, and three months ended December 31, 2020, were $768 million, $196 million, and $1,140 million, respectively. Capital Expenditures for the three months ended June 30, 2020, three months ended September 30, 2020, and three months ended December 31, 2020, were $13 million, $24 million, and $22 million, respectively. |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except per share data) |
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Three Months Ended March 31, 2022 |
Net Revenues |
Cost of Revenues—Product Sales: Product Costs |
Cost of Revenues—Product Sales: Software Royalties and Amortization |
Cost of Revenues—In-game/Subs/Other: Game Operations and Distribution Costs |
Cost of Revenues—In-game/Subs/Other: Software Royalties and Amortization |
Product Development |
Sales and Marketing |
General and Administrative |
Restructuring and related costs |
Total Costs and Expenses |
|||||||||||||||||||||||||||||
GAAP Measurement |
$ |
1,768 |
|
$ |
91 |
|
$ |
81 |
|
$ |
288 |
|
$ |
19 |
$ |
346 |
|
$ |
252 |
|
$ |
214 |
|
$ |
(2 |
) |
$ |
1,289 |
|
||||||||||
Share-based compensation1 |
|
— |
|
|
— |
|
|
(4 |
) |
|
(2 |
) |
|
— |
|
(53 |
) |
|
(15 |
) |
|
(24 |
) |
|
— |
|
|
(98 |
) |
||||||||||
Amortization of intangible assets2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
|
(2 |
) |
||||||||||
Restructuring and related costs3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
2 |
|
||||||||||
Merger and acquisition-related fees and other expenses4 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(32 |
) |
|
— |
|
|
(32 |
) |
||||||||||
Non-GAAP Measurement |
$ |
1,768 |
|
$ |
91 |
|
$ |
77 |
|
$ |
286 |
|
$ |
19 |
$ |
293 |
|
$ |
237 |
|
$ |
156 |
|
$ |
— |
|
$ |
1,159 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(287 |
) |
$ |
(14 |
) |
$ |
(38 |
) |
$ |
(2 |
) |
$ |
2 |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(52 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Operating Income |
Net Income |
Basic Earnings per Share |
Diluted Earnings per Share |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
GAAP Measurement |
$ |
479 |
|
$ |
395 |
|
$ |
0.51 |
|
$ |
0.50 |
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation1 |
|
98 |
|
|
98 |
|
|
0.13 |
|
|
0.13 |
|
|
|
|
|
|
|
|||||||||||||||||||||
Amortization of intangible assets2 |
|
2 |
|
|
2 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|||||||||||||||||||||
Restructuring and related costs3 |
|
(2 |
) |
|
(2 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
|
|||||||||||||||||||||
Merger and acquisition-related fees and other expenses4 |
|
32 |
|
|
32 |
|
|
0.04 |
|
|
0.04 |
|
|
|
|
|
|
|
|||||||||||||||||||||
Income tax impacts from items above6 |
|
— |
|
|
(24 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
|
|
|
|
|
|||||||||||||||||||||
Non-GAAP Measurement |
$ |
609 |
|
$ |
501 |
|
$ |
0.64 |
|
$ |
0.64 |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(235 |
) |
$ |
(204 |
) |
$ |
(0.26 |
) |
$ |
(0.26 |
) |
|
|
|
|
|
|
1 | Reflects expenses related to share-based compensation, including $15 million for outstanding liability awards accounted for under ASC 718. |
|
2 | Reflects amortization of intangible assets from purchase price accounting. |
|
3 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
4 | Reflects fees and other expenses related to our proposed transaction with Microsoft Corporation ("Microsoft"), primarily legal and advisory fees. |
|
5 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products, including the effects of taxes. |
|
6 | Reflects the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income under ASC 740, which employs an annual effective tax rate method to the results. |
|
The GAAP and non-GAAP earnings per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding. |
||
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except per share data) |
||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 |
Net Revenues |
Cost of Revenues—Product Sales: Product Costs |
Cost of Revenues—Product Sales: Software Royalties and Amortization |
Cost of Revenues—In-game/Subs/Other: Game Operations and Distribution Costs |
Cost of Revenues—In-game/Subs/Other: Software Royalties and Amortization |
Product Development |
Sales and Marketing |
General and Administrative |
Restructuring and related costs |
Total Costs and Expenses |
||||||||||||||||||||||||||||||
GAAP Measurement |
$ |
2,275 |
|
$ |
140 |
|
$ |
112 |
|
$ |
296 |
|
$ |
30 |
|
$ |
353 |
|
$ |
237 |
|
$ |
282 |
|
$ |
30 |
|
$ |
1,480 |
|
||||||||||
Share-based compensation1 |
|
— |
|
|
— |
|
|
(6 |
) |
|
— |
|
|
— |
|
|
(16 |
) |
|
(5 |
) |
|
(124 |
) |
|
— |
|
|
(151 |
) |
||||||||||
Amortization of intangible assets2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
|
(5 |
) |
||||||||||
Restructuring and related costs3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(30 |
) |
|
(30 |
) |
||||||||||
Non-GAAP Measurement |
$ |
2,275 |
|
$ |
140 |
|
$ |
106 |
|
$ |
296 |
|
$ |
27 |
|
$ |
337 |
|
$ |
232 |
|
$ |
156 |
|
$ |
— |
|
$ |
1,294 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues4 |
$ |
(209 |
) |
$ |
(13 |
) |
$ |
(64 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(77 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Operating Income |
Net Income |
Basic Earnings per Share |
Diluted Earnings per Share |
|
|
|
|
|
|
||||||||||||||||||||||||||||||
GAAP Measurement |
$ |
795 |
|
$ |
619 |
|
$ |
0.80 |
|
$ |
0.79 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Share-based compensation1 |
|
151 |
|
|
151 |
|
|
0.20 |
|
|
0.19 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Amortization of intangible assets2 |
|
5 |
|
|
5 |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Restructuring and related costs3 |
|
30 |
|
|
30 |
|
|
0.04 |
|
|
0.04 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Income tax impacts from items above5 |
|
— |
|
|
(37 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
|
|
|
|
|
||||||||||||||||||||||
Non-GAAP Measurement |
$ |
981 |
|
$ |
768 |
|
$ |
0.99 |
|
$ |
0.98 |
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues4 |
$ |
(132 |
) |
$ |
(107 |
) |
$ |
(0.14 |
) |
$ |
(0.14 |
) |
|
|
|
|
|
|
1 | Reflects expenses related to share-based compensation. |
|
2 | Reflects amortization of intangible assets from purchase price accounting. |
|
3 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products, including the effects of taxes. |
|
5 | Reflects the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income under ASC 740, which employs an annual effective tax rate method to the results. |
|
The GAAP and non-GAAP earnings per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding. | ||
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES OPERATING SEGMENTS INFORMATION (Amounts in millions) |
||||||||||||||||||||||||||||
Three Months Ended |
|
March 31, 2022 |
|
$ Increase / (Decrease) |
||||||||||||||||||||||||
|
|
Activision |
|
Blizzard |
|
King |
|
Total |
|
Activision |
|
Blizzard |
|
King |
|
Total |
||||||||||||
Segment Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenues from external customers |
|
$ |
453 |
|
$ |
265 |
|
$ |
682 |
|
$ |
1,400 |
|
|
$ |
(438 |
) |
|
$ |
(193 |
) |
|
$ |
73 |
|
$ |
(558 |
) |
Intersegment net revenues1 |
|
|
— |
|
|
9 |
|
|
— |
|
|
9 |
|
|
|
— |
|
|
|
(16 |
) |
|
|
— |
|
|
(16 |
) |
Segment net revenues |
|
$ |
453 |
|
$ |
274 |
|
$ |
682 |
|
$ |
1,409 |
|
|
$ |
(438 |
) |
|
$ |
(209 |
) |
|
$ |
73 |
|
$ |
(574 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment operating income |
|
$ |
59 |
|
$ |
53 |
|
$ |
243 |
|
$ |
355 |
|
|
$ |
(383 |
) |
|
$ |
(155 |
) |
|
$ |
40 |
|
$ |
(498 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Margin |
|
|
|
|
|
|
|
|
25.2 |
% |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
March 31, 2021 |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Activision |
|
Blizzard |
|
King |
|
Total |
|
|
|
|
|
|
|
|
||||||||||||
Segment Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenues from external customers |
|
$ |
891 |
|
$ |
458 |
|
$ |
609 |
|
$ |
1,958 |
|
|
|
|
|
|
|
|
|
|||||||
Intersegment net revenues1 |
|
|
— |
|
|
25 |
|
|
— |
|
|
25 |
|
|
|
|
|
|
|
|
|
|||||||
Segment net revenues |
|
$ |
891 |
|
$ |
483 |
|
$ |
609 |
|
$ |
1,983 |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment operating income |
|
$ |
442 |
|
$ |
208 |
|
$ |
203 |
|
$ |
853 |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Margin |
|
|
|
|
|
|
|
|
43.0 |
% |
|
|
|
|
|
|
|
|
1 | Intersegment revenues reflect licensing and service fees charged between segments. |
Our operating segments are consistent with the manner in which our operations are reviewed and managed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). The CODM reviews segment performance exclusive of: the impact of the change in deferred revenues and related cost of revenues with respect to certain of our online-enabled games; share-based compensation expense (including liability awards accounting for under ASC 718); amortization of intangible assets as a result of purchase price accounting; fees and other expenses (including legal fees, costs, expenses and accruals) related to acquisitions, associated integration activities, and financings; certain restructuring and related costs; and other non-cash charges. See the following page for the reconciliation tables of segment revenues and operating income to consolidated net revenues and consolidated income before income tax expense.
Our operating segments are also consistent with our internal organization structure, the way we assess operating performance and allocate resources, and the availability of separate financial information. We do not aggregate operating segments.
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES OPERATING SEGMENTS INFORMATION (Amounts in millions) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Reconciliation to consolidated net revenues: |
|
|
|
|
||||
Segment net revenues |
|
$ |
1,409 |
|
|
$ |
1,983 |
|
Revenues from non-reportable segments1 |
|
|
81 |
|
|
|
108 |
|
Net effect from recognition (deferral) of deferred net revenues2 |
|
|
287 |
|
|
|
209 |
|
Elimination of intersegment revenues3 |
|
|
(9 |
) |
|
|
(25 |
) |
Consolidated net revenues |
|
$ |
1,768 |
|
|
$ |
2,275 |
|
|
|
|
|
|
||||
Reconciliation to consolidated income before income tax expense: |
|
|
|
|
||||
Segment operating income |
|
$ |
355 |
|
|
$ |
853 |
|
Operating income (loss) from non-reportable segments1 |
|
|
19 |
|
|
|
(4 |
) |
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues2 |
|
|
235 |
|
|
|
132 |
|
Share-based compensation expense4 |
|
|
(98 |
) |
|
|
(151 |
) |
Amortization of intangible assets |
|
|
(2 |
) |
|
|
(5 |
) |
Restructuring and related costs5 |
|
|
2 |
|
|
|
(30 |
) |
Merger and acquisition-related fees and other expenses6 |
|
|
(32 |
) |
|
|
— |
|
Consolidated operating income |
|
|
479 |
|
|
|
795 |
|
Interest and other expense (income), net |
|
|
14 |
|
|
|
30 |
|
Consolidated income before income tax expense (benefit) |
|
$ |
465 |
|
|
$ |
765 |
|
1 | Includes other income and expenses outside of our reportable segments, including our distribution business and unallocated corporate income and expenses. |
|
2 | Reflects the net effect from (deferral) of revenues and recognition of deferred revenues, along with related cost of revenues, on certain of our online-enabled products. |
|
3 | Intersegment revenues reflect licensing and service fees charged between segments. |
|
4 | Reflects expenses related to share-based compensation, including liability awards accounted for under ASC 718. |
|
5 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
6 | Reflects fees and other expenses related to our proposed transaction with Microsoft, primarily legal and advisory fees. |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES NET REVENUES BY DISTRIBUTION CHANNEL (Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
$ Increase
|
|
% Increase
|
|||||||||||||
|
Amount |
|
% of Total1 |
|
Amount |
|
% of Total1 |
|
|
|||||||||||
Net Revenues by Distribution Channel |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Digital online channels2 |
$ |
1,589 |
|
|
90 |
% |
|
$ |
2,006 |
|
|
88 |
% |
|
$ |
(417 |
) |
|
(21 |
) % |
Retail channels |
|
85 |
|
|
5 |
|
|
|
149 |
|
|
7 |
|
|
|
(64 |
) |
|
(43 |
) |
Other3 |
|
94 |
|
|
5 |
|
|
|
120 |
|
|
5 |
|
|
|
(26 |
) |
|
(22 |
) |
Total consolidated net revenues |
$ |
1,768 |
|
|
100 |
% |
|
$ |
2,275 |
|
|
100 |
% |
|
$ |
(507 |
) |
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred revenues4 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Digital online channels2 |
$ |
(222 |
) |
|
|
|
$ |
(141 |
) |
|
|
|
|
|
|
|||||
Retail channels |
|
(64 |
) |
|
|
|
|
(74 |
) |
|
|
|
|
|
|
|||||
Other3 |
|
(1 |
) |
|
|
|
|
6 |
|
|
|
|
|
|
|
|||||
Total changes in deferred revenues |
$ |
(287 |
) |
|
|
|
$ |
(209 |
) |
|
|
|
|
|
|
1 | The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 | Net revenues from Digital online channels represent revenues from digitally-distributed downloadable content, microtransactions, subscriptions, and products, as well as licensing royalties. |
|
3 | Net revenues from Other primarily include revenues from our distribution business, the Overwatch League, and the Call of Duty League. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES NET REVENUES BY PLATFORM (Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
$ Increase
|
|
% Increase
|
|||||||||||||
|
Amount |
|
% of Total1 |
|
Amount |
|
% of Total1 |
|
|
|||||||||||
Net Revenues by Platform |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Console |
$ |
484 |
|
|
27 |
% |
|
$ |
799 |
|
|
35 |
% |
|
$ |
(315 |
) |
|
(39 |
) % |
PC |
|
383 |
|
|
22 |
|
|
|
622 |
|
|
27 |
|
|
|
(239 |
) |
|
(38 |
) |
Mobile and ancillary2 |
|
807 |
|
|
46 |
|
|
|
734 |
|
|
32 |
|
|
|
73 |
|
|
10 |
|
Other3 |
|
94 |
|
|
5 |
|
|
|
120 |
|
|
5 |
|
|
|
(26 |
) |
|
(22 |
) |
Total consolidated net revenues |
$ |
1,768 |
|
|
100 |
% |
|
$ |
2,275 |
|
|
100 |
% |
|
$ |
(507 |
) |
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred revenues4 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Console |
$ |
(221 |
) |
|
|
|
$ |
(173 |
) |
|
|
|
|
|
|
|||||
PC |
|
(80 |
) |
|
|
|
|
(45 |
) |
|
|
|
|
|
|
|||||
Mobile and ancillary2 |
|
15 |
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|||||
Other3 |
|
(1 |
) |
|
|
|
|
6 |
|
|
|
|
|
|
|
|||||
Total changes in deferred revenues |
$ |
(287 |
) |
|
|
|
$ |
(209 |
) |
|
|
|
|
|
|
1 | The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 | Net revenues from Mobile and ancillary primarily include revenues from mobile devices. |
|
3 | Net revenues from Other primarily include revenues from our distribution business, the Overwatch League, and the Call of Duty League. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES NET REVENUES BY GEOGRAPHIC REGION (Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
$ Increase
|
|
% Increase
|
|||||||||||||
|
Amount |
|
% of Total1 |
|
Amount |
|
% of Total1 |
|
|
|||||||||||
Net Revenues by Geographic Region |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Americas |
$ |
1,016 |
|
|
57 |
% |
|
$ |
1,307 |
|
|
57 |
% |
|
$ |
(291 |
) |
|
(22 |
) % |
EMEA2 |
|
527 |
|
|
30 |
|
|
|
731 |
|
|
32 |
|
|
|
(204 |
) |
|
(28 |
) |
Asia Pacific |
|
225 |
|
|
13 |
|
|
|
237 |
|
|
10 |
|
|
|
(12 |
) |
|
(5 |
) |
Total consolidated net revenues |
$ |
1,768 |
|
|
100 |
% |
|
$ |
2,275 |
|
|
100 |
% |
|
$ |
(507 |
) |
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred revenues3 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Americas |
$ |
(174 |
) |
|
|
|
$ |
(121 |
) |
|
|
|
|
|
|
|||||
EMEA2 |
|
(93 |
) |
|
|
|
|
(65 |
) |
|
|
|
|
|
|
|||||
Asia Pacific |
|
(20 |
) |
|
|
|
|
(23 |
) |
|
|
|
|
|
|
|||||
Total changes in deferred revenues |
$ |
(287 |
) |
|
|
|
$ |
(209 |
) |
|
|
|
|
|
|
1 | The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 | Net revenues from EMEA consist of the Europe, Middle East, and Africa geographic regions. |
|
3 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES EBITDA AND ADJUSTED EBITDA (Amounts in millions) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
Trailing Twelve
|
|||||||||
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|||||||||
GAAP Net Income |
$ |
876 |
|
|
$ |
639 |
|
|
$ |
564 |
|
$ |
395 |
|
|
$ |
2,474 |
|
Interest and other expense (income), net |
|
(43 |
) |
|
|
65 |
|
|
|
45 |
|
|
14 |
|
|
|
81 |
|
Provision for income taxes |
|
126 |
|
|
|
120 |
|
|
|
73 |
|
|
70 |
|
|
|
389 |
|
Depreciation and amortization |
|
28 |
|
|
|
27 |
|
|
|
27 |
|
|
24 |
|
|
|
106 |
|
EBITDA |
|
987 |
|
|
|
851 |
|
|
|
709 |
|
|
503 |
|
|
|
3,050 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation expense1 |
|
43 |
|
|
|
64 |
|
|
|
249 |
|
|
98 |
|
|
|
454 |
|
Restructuring and related costs2 |
|
13 |
|
|
|
3 |
|
|
|
30 |
|
|
(2 |
) |
|
|
44 |
|
Merger and acquisition-related fees and other expenses3 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
32 |
|
|
|
32 |
|
Adjusted EBITDA |
$ |
1,043 |
|
|
$ |
918 |
|
|
$ |
988 |
|
$ |
631 |
|
|
$ |
3,580 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred net revenues and related cost of revenues4 |
$ |
(276 |
) |
|
$ |
(154 |
) |
|
$ |
215 |
|
$ |
(235 |
) |
|
$ |
(450 |
) |
1 | Reflects expenses related to share-based compensation, including liability awards accounted for under ASC 718. |
|
2 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
3 | Reflects fees and other expenses related to our proposed transaction with Microsoft, primarily legal and advisory fees. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products. |
|
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES OPERATING METRICS (Amounts in millions) |
||||||||||||
Net Bookings1 |
||||||||||||
|
Three Months Ended March 31, |
|||||||||||
|
|
2022 |
|
|
2021 |
|
$ Increase
|
|
% Increase
|
|||
Net bookings1 |
$ |
1,481 |
|
$ |
2,066 |
|
$ |
(585 |
) |
|
(28 |
) % |
In-game net bookings2 |
$ |
1,011 |
|
$ |
1,343 |
|
$ |
(332 |
) |
|
(25 |
) % |
1 | We monitor net bookings as a key operating metric in evaluating the performance of our business because it enables an analysis of performance based on the timing of actual transactions with our customers and provides more timely indications of trends in our operating results. Net bookings is the net amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and publisher incentives, among others. Net bookings is equal to net revenues excluding the impact from deferrals. |
|
2 | In-game net bookings primarily includes the net amount of downloadable content and microtransactions sold during the period, and is equal to in-game net revenues excluding the impact from deferrals. |
Monthly Active Users3
|
March 31, 2021 |
|
June 30, 2021 |
|
September 30, 2021 |
|
December 31, 2021 |
|
March 31, 2022 |
Activision |
150 |
|
127 |
|
119 |
|
107 |
|
100 |
Blizzard |
27 |
|
26 |
|
26 |
|
24 |
|
22 |
King |
258 |
|
255 |
|
245 |
|
240 |
|
250 |
Total MAUs |
435 |
|
408 |
|
390 |
|
371 |
|
372 |
3 | We monitor monthly active users (“MAUs”) as a key measure of the overall size of our user base. MAUs are the number of individuals who accessed a particular game in a given month. We calculate average MAUs in a period by adding the total number of MAUs in each of the months in a given period and dividing that total by the number of months in the period. An individual who accesses two of our games would be counted as two users. In addition, due to technical limitations, for Activision and King, an individual who accesses the same game on two platforms or devices in the relevant period would be counted as two users. For Blizzard, an individual who accesses the same game on two platforms or devices in the relevant period would generally be counted as a single user. In certain instances, we rely on third parties to publish our games. In these instances, MAU data is based on information provided to us by those third parties, or, if final data is not available, reasonable estimates of MAUs for these third-party published games. |
САНТА-МОНИКА, Калифорния. - (ДЕЛОВАЯ ПЕРЕПИСКА) -Activision Blizzard, Inc. (Nasdaq: ATVI) сегодня объявила результаты первого квартала 2022 года.
Financial Metrics |
||||
|
|
Q1 |
||
(in millions, except EPS) |
|
2022 |
|
2021 |
GAAP Net Revenues |
|
$1,768 |
|
$2,275 |
Impact of GAAP deferralsA |
|
$(287) |
|
$(209) |
|
|
|
|
|
GAAP EPS |
|
$0.50 |
|
$0.79 |
Non-GAAP EPS |
|
$0.64 |
|
$0.98 |
Impact of GAAP deferralsA |
|
$(0.26) |
|
$(0.14) |
Пожалуйста, обратитесь к таблицам в конце этого отчета о прибылях и убытках для сверки результатов компании по GAAP и не по GAAP.
За квартал, закончившийся 31 марта 2022 года, чистая выручка Activision Blizzard, представленная в соответствии с GAAP, составила 1,77 миллиарда долларов по сравнению с 2,28 миллиарда долларов за первый квартал 2021 года. Чистая выручка от цифровых каналов по ОПБУ составила 1,59 миллиарда долларов. Операционная маржа по ОПБУ составила 27%. Прибыль на разводненную акцию по ОПБУ составила 0,50 доллара по сравнению с 0,79 доллара за первый квартал 2021 года. На основе без учета GAAP операционная маржа Activision Blizzard составила 34%, а прибыль на разводненную акцию составила 0,64 доллара США по сравнению с 0,98 доллара США за первый квартал 2021 года.
Операционный денежный поток Activision Blizzard за квартал составил 642 миллиона долларов по сравнению с 844 миллионами долларов за первый квартал 2021 года.
Пожалуйста, обратитесь к таблицам в конце этого пресс-релиза для сверки результатов компании по GAAP и не по GAAP.
Операционные показатели
За квартал, закончившийся 31 марта 2022 года, чистая прибыль Activision Blizzard составила 1,48 миллиарда долларов по сравнению с 2,07 миллиарда долларов за первый квартал 2021 года. Чистые ставки на игры составили 1,01 миллиарда долларов по сравнению с 1,34 миллиарда долларов за первый квартал 2021 года.
За квартал, закончившийся 31 марта 2022 года, общее количество активных пользователей Activision Blizzard в месяц (MAU)D составило 372 миллиона.
Транзакция Microsoft
Как было объявлено 18 января 2022 года, Microsoft планирует приобрести Activision Blizzard по цене 95,00 долларов США за акцию в рамках транзакции с оплатой наличными. Сделка подлежит обычным условиям закрытия и завершению проверки регулирующими органами и одобрению акционерами Activision Blizzard. Сделка, которая, как ожидается, завершится в финансовом году Microsoft, заканчивающемся 30 июня 2023 года, была одобрена советами директоров как Activision Blizzard, так и Microsoft.
Конференц-связь и Презентация доходов
В свете предполагаемой сделки с Microsoft и, как это обычно бывает в период ожидания приобретения, Activision Blizzard не будет проводить телефонную конференцию, публиковать презентацию доходов или предоставлять финансовые рекомендации в связи с отчетом о доходах за первый квартал 2022 года. Для получения более подробной информации и обсуждения наших финансовых показателей, пожалуйста, обратитесь к нашему предстоящему ежеквартальному отчету по форме 10-Q за квартал, закончившийся 31 марта 2022 года.
Избранные Основные моменты бизнеса
В первом квартале Activision Blizzard продолжал привлекать и подключать свою сеть из сотен миллионов человек по всему миру. Финансовые показатели снизились в годовом исчислении, в первую очередь из-за более низких результатов Call of Duty и сроков производственного цикла в Blizzard, компенсируя устойчивый рост в King. Компания понесла увеличение юридических и других профессиональных сборов, в первую очередь из-за расходов, связанных с нашей предлагаемой сделкой с Microsoft. Мы продолжаем увеличивать инвестиции в наши ресурсы для разработки, чтобы удовлетворить спрос со стороны наших игроков, и в первом квартале численность наших разработчиков увеличилась на несколько сотен человек. Наши команды добиваются значительного прогресса в создании широкого ассортимента привлекательного контента для существующих франшиз, что, как мы ожидаем, приведет к возобновлению расширения бизнеса в четвертом квартале и в долгосрочной перспективе.
Activision Blizzard стремится обеспечить инклюзивную и безопасную рабочую среду для своих сотрудников и в первом квартале продолжила реализацию ранее объявленных инициатив по укреплению своей практики и политики. В марте федеральный суд одобрил мировое соглашение компании с EEOC, проложив путь к компенсации правомочным заявителям через фонд в размере 18 миллионов долларов. В апреле компания объявила о переводе более 1000 временных работников на полный рабочий день, при этом большинство из них получили повышенную заработную плату и льготы. Мы также объявили о назначении Кристен Хайнс новым директором компании по вопросам разнообразия, справедливости и интеграции.
Бухгалтерский баланс и дивиденды
Об Activision Blizzard
Наша миссия - объединять и вовлекать мир с помощью epic entertainment - никогда не была более важной. Благодаря сообществам, основанным на наших франшизах по видеоиграм, мы даем возможность сотням миллионов людей испытать радость, острые ощущения и достижения. Мы создаем социальные связи через призму веселья, а также развиваем целеустремленность и чувство выполненного долга благодаря здоровой конкуренции. Подобно спорту, но с большей доступностью, наши игроки могут найти цель и смысл в соревновательных играх. Видеоигры, в отличие от любых других социальных или развлекательных медиа, обладают способностью разрушать барьеры, которые могут препятствовать терпимости и пониманию. Празднование различий лежит в основе нашей культуры и гарантирует, что мы можем создавать игры для игроков разного происхождения в 190 странах, в которые играют в наши игры.
Как член списка Fortune 500 и как компания, входящая в S&P 500, мы обладаем выдающимся послужным списком обеспечения высокой доходности для акционеров на протяжении более 30 лет.
Наши устойчивые франшизы являются одними из самых популярных в мире, включая Call of Duty®, Crash Bandicoot™, Warcraft®, Overwatch®, Diablo®, StarCraft®, Candy Crush™, Bubble Witch™, Pet Rescue™ и Farm Heroes™. Наш устойчивый успех позволил компании поддерживать инициативы в области корпоративной социальной ответственности, которые напрямую связаны с нашими франшизами. Например, наш фонд Call of Duty помог найти работу более чем 90 000 ветеранам.
Узнайте больше о Activision Blizzard и о том, как мы связываем и вовлекаем мир с помощью epic entertainment, на веб-сайте компании, www.activisionblizzard.com .
1 На основе данных App Annie Intelligence.
Чистый эффект от учета в результате отсрочки поступлений по некоторым нашим онлайн-продуктам. Поскольку некоторые из наших игр размещены онлайн или включают в себя значительную онлайн-функциональность, которая представляет собой отдельное обязательство по исполнению, мы откладываем цену транзакции, подлежащую распределению на онлайн-функциональность, от продажи этих игр, а затем признаем соответствующие доходы за соответствующие расчетные периоды обслуживания, которые обычно составляют менее года. Соответствующая стоимость выручки откладывается и признается как расход по мере признания соответствующей выручки. Влияние изменений в отсрочках относится к чистому эффекту от учета отсрочки поступлений для целей доходов, наряду с, для целей EPS, соответствующей стоимостью учета отсрочки поступлений и соответствующими налоговыми последствиями. Внутренне руководство исключает влияние этого изменения на доходы будущих периодов и соответствующую стоимость доходов при оценке операционных показателей компании, при планировании, прогнозировании и анализе будущих периодов, а также при оценке эффективности работы ее управленческой команды. Руководство считает это целесообразным, поскольку это позволяет проводить анализ эффективности на основе сроков фактических транзакций с нашими клиентами. Кроме того, руководство считает, что исключение изменения доходов будущих периодов и соответствующей стоимости доходов обеспечивает гораздо более своевременное представление о тенденциях в наших операционных результатах.
B Чистые заказы - это операционная метрика, которая определяется как чистое количество продуктов и услуг, проданных в цифровом или физическом виде за период, и включает в себя лицензионные сборы, товары и поощрения издателей, среди прочего, и равна чистой выручке без учета влияния отсрочки.
C Чистые внутриигровые заказы в основном включают чистое количество загружаемого контента и микротранзакций, проданных в течение периода, и равны чистым внутриигровым доходам без учета влияния отсрочки.
D Ежемесячный активный пользователь (“MAU”) Определение: Мы отслеживаем MAU в качестве ключевого показателя общего размера нашей пользовательской базы. MAU - это количество пользователей, которые получили доступ к определенной игре за определенный месяц. Мы вычисляем среднее количество MAU за период, складывая общее количество MAU в каждом из месяцев данного периода и деля это общее количество на количество месяцев в периоде. Человек, который получает доступ к двум нашим играм, будет считаться двумя пользователями. Кроме того, из-за технических ограничений для Activision и King физическое лицо, которое получает доступ к одной и той же игре на двух платформах или устройствах в соответствующий период, будет считаться двумя пользователями. Для Blizzard человек, который получает доступ к одной и той же игре на двух платформах или устройствах в соответствующий период, как правило, считается одним пользователем. В некоторых случаях мы полагаемся на третьих лиц для публикации наших игр. В этих случаях данные MAU основаны на информации, предоставленной нам этими третьими сторонами, или, если окончательные данные недоступны, на разумных оценках MAU для этих сторонних опубликованных игр.
Финансовые показатели, не относящиеся к GAAP: В качестве дополнения к нашим финансовым показателям, представленным в соответствии с Общепринятыми принципами бухгалтерского учета США (“GAAP”), Activision Blizzard представляет некоторые показатели финансовых показателей, не относящиеся к GAAP. Эти финансовые показатели, не относящиеся к ОПБУ, не предназначены для рассмотрения в отрыве от финансовой информации, подготовленной и представленной в соответствии с ОПБУ, в качестве замены или как более важные, чем финансовая информация, подготовленная и представленная в соответствии с ОПБУ. Кроме того, эти показатели, не относящиеся к GAAP, имеют ограничения, заключающиеся в том, что они не отражают все статьи, связанные с результатами деятельности компании, определенными в соответствии с GAAP.
Activision Blizzard предоставляет данные о чистой прибыли (убытке), прибыли (убытке) на акцию, а также данные и рекомендации по операционной марже, как включающие (в соответствии с GAAP), так и исключающие (не по GAAP) определенные статьи. Когда это уместно, компания также предоставляет постоянную информацию о валютных курсах, чтобы обеспечить основу для оценки того, как работали наши основные предприятия, исключая влияние колебаний курсов иностранных валют. Кроме того, Activision Blizzard показывает показатель EBITDA (определяемый как чистая прибыль (убыток) по GAAP до вычета процентных расходов (доходов), налогов на прибыль, износа и амортизации) и скорректированный показатель EBITDA (определяемый как операционная маржа, не соответствующая GAAP (см. финансовый показатель, не соответствующий GAAP ниже) до вычета амортизации). Финансовые показатели, не относящиеся к GAAP, исключают следующие статьи, применимые к любому отчетному периоду и нашему прогнозу:
В будущем Activision Blizzard может также рассмотреть вопрос о том, следует ли также исключать другие статьи при расчете финансовых показателей, не относящихся к GAAP, используемых компанией. Руководство считает, что представление этих финансовых показателей, не относящихся к GAAP, предоставляет инвесторам дополнительную полезную информацию для оценки финансовых и операционных показателей Activision Blizzard. В частности, эти меры облегчают сравнение операционных показателей между периодами и помогают инвесторам лучше понять операционные результаты Activision Blizzard, исключая определенные статьи, которые могут не отражать основной бизнес компании, операционные результаты или перспективы на будущее. Кроме того, мы учитываем количественные и качественные факторы при оценке того, следует ли вносить коррективы с учетом влияния статей, которые могут быть значительными или которые могут повлиять на понимание наших текущих финансовых и деловых показателей или тенденций. Внутри компании руководство использует эти финансовые показатели, не относящиеся к GAAP, наряду с другими, для оценки операционных результатов компании и оценки соответствия требованиям соглашений компании о долговом финансировании, а также при планировании и прогнозировании.
Финансовые показатели Activision Blizzard, не относящиеся к GAAP, не основаны на всеобъемлющем наборе правил или принципов бухгалтерского учета, а термины "чистая прибыль", не относящаяся к GAAP, "прибыль на акцию", не относящаяся к GAAP, операционная маржа, не относящаяся к GAAP, и скорректированная EBITDA, не соответствующая GAAP, не имеют стандартизированного значения. Следовательно, другие компании могут использовать те же или аналогичные показатели, но исключать разные элементы, что может не дать инвесторам сопоставимого представления о результатах Activision Blizzard по сравнению с другими компаниями.
Руководство компенсирует ограничения, возникающие в результате исключения этих статей, путем рассмотрения влияния статей отдельно и рассмотрения GAAP Activision Blizzard, а также результатов и перспектив, не относящихся к GAAP, и путем представления наиболее сопоставимых показателей GAAP непосредственно перед показателями, не относящимися к GAAP, и путем предоставления сверки, которая указывает и описывает внесенные корректировки.
Предостережение В Отношении Прогнозных Заявлений: Содержащиеся в настоящем документе заявления, которые не являются историческими фактами, являются прогнозными заявлениями, включая, но не ограничиваясь ими, заявления о: (1) прогнозах доходов, расходов, доходов или убытков, прибыли или убытка на акцию, движении денежных средств или других финансовых статьях; (2) заявления о наших планах и целях, включая те, которые связаны с выпуском продуктов или услуг; (3) заявления о будущих финансовых или операционных показателях, включая влияние на них налоговых статей; (4) заявления, касающиеся предлагаемой транзакции между Activision Blizzard и Microsoft (такая транзакция, “предлагаемая транзакция с Microsoft”), включая любые заявления относительно ожидаемого графика завершения предлагаемой транзакции с Microsoft, возможность завершить предлагаемую транзакцию с Корпорацией Майкрософт и ожидаемые выгоды от предлагаемой транзакции с Корпорацией Майкрософт; и (5) заявления о предположениях, лежащих в основе таких заявлений. Activision Blizzard, Inc. обычно использует такие слова, как “прогноз”, “прогноз”, “будет”, “может”, “должен”, “будет”, “быть”, “план”, “цели”, “считает”, “может”, “может”, “ожидает, ”намеревается”, “ищет”, “ожидает”, “оценивает”, “будущее”, “позиционируется”, “потенциал”, “проект”, “остается”, “запланировано”, “установлено”, “подлежит”, “предстоящий” и отрицательная версия из этих слов и других подобных слов и выражений, чтобы помочь определить прогнозные заявления. Прогнозные заявления подвержены деловым и экономическим рискам, отражают текущие ожидания, оценки и прогнозы руководства в отношении нашего бизнеса и по своей сути являются неопределенными и трудно прогнозируемыми.
Мы предупреждаем, что ряд важных факторов, многие из которых находятся вне нашего контроля, могут привести к тому, что наши фактические будущие результаты и другие будущие обстоятельства будут существенно отличаться от тех, которые указаны в любых прогнозных заявлениях. Такие факторы включают, но не ограничиваясь: риск того, что предлагаемая сделка с Microsoft не может быть завершена своевременно или вообще, что может негативно повлиять на наш бизнес и стоимость наших акций; за невыполнение условий до полного завершения сделки с Microsoft, в том числе акционеров, утверждение и получение определенных правительственных и регуляторных одобрений; наступления какого-либо события, изменения или других обстоятельствах, которые могут привести к расторжению соглашения и плана слияния, от 18 января 2022, и среди Activision Blizzard, Microsoft и Анкоридж слияния суб Инк. дочерняя компания корпорации Microsoft (“Майкрософт договор о слиянии”); влияние объявления или рассмотрение предполагаемой сделки с Microsoft на наши деловые отношения, результаты операционной деятельности и бизнеса в целом; риски, что предложенная сделка с Microsoft нарушает наши планы и текущие операции и потенциальные трудности удержания сотрудников в результате предполагаемой сделки с Microsoft; риски, связанные с отвлекая внимание от управления осуществляемых хозяйственных операций; исход любого судебного разбирательства, которые были или могут быть осуществлены в отношении США, связанные с Microsoft соглашение о слиянии или сделок, планируемых таким образом, ограничения на время рассмотрения предполагаемой сделки с Microsoft, которая может повлиять на нашу способность осуществлять определенные возможности для бизнеса или стратегических сделок; возможность получения альтернативного сбора предложений от потенциальных acquirors; глобального воздействия COVID-19 пандемией (в том числе, без ограничения, потенциал для значительного кратко - и долгосрочной глобальной безработицы и экономической слабости и в результате воздействия на глобальные дискреционных расходов; потенциальный штамм на ритейлеры, дистрибьюторы и производители, которые продают физические товары перед клиентами и поставщиками платформ на чьих сетях и консолей некоторых из наших игр, доступны; воздействие на нашу способность освободить наш контент, своевременно и эффективный качества управления; воздействие на нашу способность предотвращать кибер-инцидентов, связанных с безопасностью во время нашей рабочей силы выплачивается; воздействие на операции наших профессиональных киберспортивных лиг; последствия крупномасштабного вмешательства со стороны Федерального резерва и других центральных банков по всему миру, в том числе влияние на процентные ставки; повышенный спрос на наши игры обусловлена дома заказы и свертывание других форм развлечения, которые могут не быть устойчивыми и могут колебаться как дома заказы сокращаются, поднял, и/или восстановлен; макроэкономические последствия, возникающие от долгой продолжительности COVID-19 пандемией в том числе дефицит кадров, и цепями поставок перебоев; и волатильности валютных курсов); наша способность последовательно поставляем популярные, качественные тайтлы своевременно, которое было затруднено в результате COVID-19 пандемией; наша способность удовлетворять ожидания потребителей по отношению к нашим брендам, игр, сервисов и/или деловой практики; негативное воздействие на наш бизнес от проблем, связанных с трудовой деятельности; нашу способность привлекать, удерживать и мотивировать квалифицированных кадров; конкурс; концентрация компания одна из немногих франшиз; негативные последствия от профсоюзов или попытки объединить наши трудовых ресурсов; быстрыми изменениями в технологии и отраслевых стандартов; повышение значимости доходов от цифровых каналов распределения; нашу способность управлять постоянным ростом масштабов и усложнением нашего бизнеса; существенное влияние сторонней платформе поставщиков по нашей продукции и затрат; успех и доступность игровых приставок, изготовленных сторонними производителями, включая нашу способность предсказывать консолей, которая будет наиболее успешным на рынке и разрабатывать коммерчески успешные продукты для этих консолей; риски, связанные с бесплатно играть в бизнес-модели, включая нашу зависимость от относительно небольшого числа потребителей значительную часть доходов и прибыли от любой игры; риски и неопределенность ведения бизнеса за пределами США, в том числе о необходимости разрешительной работы, воздействие на наш бизнес, вытекающие из нынешнего конфликта между Россией и Украиной, относительно слабой защиты прав интеллектуальной собственности, а также влияние культурных различий на потребительские предпочтения; риски, связанные с розничным продажам бизнес-модель; нам возможность реализовать ожидаемые выгоды от нашей недавней реструктуризации действий; трудности в интеграции приобретенных компаний или иначе реализовать ожидаемые выгоды от стратегических сделок; сезонность в продаже нашей продукции; колебания в наших повторяющихся бизнеса; риски, связанные с поведением наших дистрибьюторов, розничных торговцев, разработки и лицензирования партнерами или других аффилированных третьих лиц, которые могут нанести вред нашим брендов или хозяйственных операций; использование инструментов и технологий, принадлежащих третьим лицам; риски, связанные с использованием открытого программного обеспечения; риски, связанные с нераскрытой содержания или функций, которые могут повлечь потребителей отказ покупать или ритейлеров отказ продавать нашу продукцию; риски, связанные с неугодными потребительских или других сторонних созданного контента; простоев, сбоев или нарушений в наши продукты, услуги и/или технологической инфраструктуры; данные нарушения, мошеннические действия, и других рисков кибербезопасности; значительные нарушения во время наших живых мероприятиях; риски, связанные с последствиями катастрофических событий; изменение климата; положения корпоративных документов, которые могут сделать его более трудным для любого человека обрести контроль над нашей компании; продолжаются судебные разбирательства, связанные с рабочего места озабоченности и иначе, в том числе воздействие жалобе, поданной в 2021 году на Калифорнийский департамент справедливого трудоустройства и жилищного нарушения Калифорния справедливого трудоустройства и жилищного закона и Калифорния равной оплате труда и проведении отдельных следственных действий и жалобы на других участников и регулирующих органов, связанные с определенных занятий, практик и соответствующих раскрытий; успешное выполнение требований утвержденного судом указа с равноправия при трудоустройстве комиссии; претензии интеллектуальной собственности; повышение регулирования в ключевых территориях; регулирование связанных с Интернетом, в том числе потенциальный вред от законов влияния “сетевого нейтралитета”; правил, касающихся конфиденциальности данных, в том числе в Китае недавно прошла персональная информация защита права; надзор в отношении наших материалов, включая присвоенные рейтинги третьих лиц; изменение налоговых ставок и/или налогового законодательства или воздействия дополнительных налоговых обязательств; колебания валютных курсов; влияние изменений в стандарты финансовой отчетности; о несостоятельности или банкротства любого из наших партнеров по бизнесу, который был увеличен в результате COVID-19 пандемией; риски, связанные с зависимостью от дискреционных расходов; и другие факторы, включенные в “Факторы риска” включен в Часть I, П. 1А годового отчета по форме 10-K за год, закончившийся 31 декабря 2021 года, поданных в Комиссию США по ценным бумагам и биржам.
Заявления прогнозного характера, содержащиеся в настоящем документе, основаны на информации, доступной Activision Blizzard, Inc. на дату подачи этой заявки, и мы не берем на себя никаких обязательств по обновлению любых таких заявлений прогнозного характера. Фактические события или результаты могут отличаться от тех, которые изложены в прогнозных заявлениях. Таким образом, вы не должны полагаться на прогнозные заявления в качестве предсказаний будущих событий. Мы основали прогнозные заявления, содержащиеся в настоящем документе, в первую очередь на наших текущих ожиданиях и прогнозах относительно будущих событий и тенденций, которые, по нашему мнению, могут повлиять на наш бизнес, финансовое состояние, операционные результаты, перспективы, стратегию и финансовые потребности. Эти заявления не являются гарантией наших будущих результатов и подвержены рискам, неопределенностям и другим факторам, некоторые из которых находятся вне нашего контроля и могут привести к тому, что фактические результаты будут существенно отличаться от текущих ожиданий.
Дополнительная информация и где ее найти
В связи со сделкой Activision Blizzard подал в SEC и отправил по почте акционерам Activision Blizzard, имеющим право голоса на специальном собрании для одобрения сделки, окончательное доверенное заявление от 21 марта 2022 года (с изменениями или дополнениями время от времени, “окончательное доверенное заявление”). ИНВЕСТОРАМ И ДЕРЖАТЕЛЯМ ЦЕННЫХ БУМАГ Activision Blizzard НАСТОЯТЕЛЬНО РЕКОМЕНДУЕТСЯ ОЗНАКОМИТЬСЯ С ЭТИМИ МАТЕРИАЛАМИ (ВКЛЮЧАЯ ЛЮБЫЕ ПОПРАВКИ ИЛИ ДОПОЛНЕНИЯ К НИМ) И ЛЮБЫМИ ДРУГИМИ СООТВЕТСТВУЮЩИМИ ДОКУМЕНТАМИ В СВЯЗИ СО СДЕЛКОЙ, КОТОРЫЕ Activision Blizzard ПОДАЛ ИЛИ ПОДАСТ В SEC, КОГДА ОНИ СТАНУТ ДОСТУПНЫМИ, ПОСКОЛЬКУ ОНИ СОДЕРЖАТ ИЛИ БУДУТ СОДЕРЖАТЬ ВАЖНУЮ ИНФОРМАЦИЮ ОБ Activision Blizzard И ТРАНЗАКЦИИ. Окончательное заявление о доверенности и другие соответствующие материалы в связи со сделкой (когда они станут доступны), а также любые другие документы, представленные Activision Blizzard в SEC, можно получить бесплатно на веб-сайте SEC (http://www.sec.gov ) или на веб-сайте Activision Blizzard (https://investor .Activision.com ) или написав по адресу Activision Blizzard, Отдел по связям с инвесторами, Олимпийский бульвар 2701, корпус B, Санта-Моника, Калифорния 90404.
Activision Blizzard и некоторые из его директоров и исполнительных должностных лиц, а также другие члены руководства и сотрудники могут считаться участниками привлечения доверенных лиц от акционеров Activision Blizzard в отношении сделки. Информация о директорах и исполнительных директорах Activision Blizzard и их владении обыкновенными акциями Activision Blizzard изложена в окончательном доверенном заявлении. В той мере, в какой запасы ценных бумаг Activision Blizzard изменились с момента сумм, указанных в окончательном доверенном заявлении, такие изменения были или будут отражены в Заявлениях о смене владельца по форме 4, поданных в SEC. Информация, касающаяся личности участников и их прямых или косвенных интересов в сделке, со стороны ценных бумаг или иным образом, изложена в окончательном доверенном заявлении и других материалах, поданных в SEC в связи со сделкой.
Activision Blizzard, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in millions) |
||||||
|
Three Months Ended March 31, |
|||||
|
2022 |
|
2021 |
|||
Net revenues |
|
|
|
|||
Product sales |
$ |
386 |
|
|
$ |
675 |
In-game, subscription, and other revenues1 |
|
1,382 |
|
|
|
1,600 |
Total net revenues |
|
1,768 |
|
|
|
2,275 |
|
|
|
|
|||
Costs and expenses |
|
|
|
|||
Cost of revenues—product sales: |
|
|
|
|||
Product costs |
|
91 |
|
|
|
140 |
Software royalties, amortization, and intellectual property licenses |
|
81 |
|
|
|
112 |
Cost of revenues—in-game, subscription, and other: |
|
|
|
|||
Game operations and distribution costs |
|
288 |
|
|
|
296 |
Software royalties, amortization, and intellectual property licenses |
|
19 |
|
|
|
30 |
Product development |
|
346 |
|
|
|
353 |
Sales and marketing |
|
252 |
|
|
|
237 |
General and administrative |
|
214 |
|
|
|
282 |
Restructuring and related costs |
|
(2 |
) |
|
|
30 |
Total costs and expenses |
|
1,289 |
|
|
|
1,480 |
|
|
|
|
|||
Operating income |
|
479 |
|
|
|
795 |
|
|
|
|
|||
Interest and other expense (income), net |
|
14 |
|
|
|
30 |
Income before income tax expense |
|
465 |
|
|
|
765 |
|
|
|
|
|||
Income tax expense |
|
70 |
|
|
|
146 |
|
|
|
|
|||
Net income |
$ |
395 |
|
|
$ |
619 |
|
|
|
|
|||
Basic earnings per common share |
$ |
0.51 |
|
|
$ |
0.80 |
Weighted average common shares outstanding |
|
780 |
|
|
|
775 |
|
|
|
|
|||
Diluted earnings per common share |
$ |
0.50 |
|
|
$ |
0.79 |
Weighted average common shares outstanding assuming dilution |
|
786 |
|
|
|
783 |
1 | In-game, subscription, and other revenues represent revenues from microtransactions and downloadable content, World of Warcraft subscriptions, licensing royalties from our products and franchises, and other miscellaneous revenues. |
|
Activision Blizzard, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in millions) |
|||||||
|
March 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
10,967 |
|
|
$ |
10,423 |
|
Accounts receivable, net |
|
530 |
|
|
|
972 |
|
Software development |
|
433 |
|
|
|
449 |
|
Other current assets |
|
556 |
|
|
|
712 |
|
Total current assets |
|
12,486 |
|
|
|
12,556 |
|
Software development |
|
289 |
|
|
|
211 |
|
Property and equipment, net |
|
174 |
|
|
|
169 |
|
Deferred income taxes, net |
|
1,308 |
|
|
|
1,377 |
|
Other assets |
|
511 |
|
|
|
497 |
|
Intangible assets, net |
|
445 |
|
|
|
447 |
|
Goodwill |
|
9,799 |
|
|
|
9,799 |
|
Total assets |
$ |
25,012 |
|
|
$ |
25,056 |
|
|
|
|
|
||||
Liabilities and Shareholders' Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
207 |
|
|
$ |
285 |
|
Deferred revenues |
|
835 |
|
|
|
1,118 |
|
Accrued expenses and other liabilities |
|
1,249 |
|
|
|
1,008 |
|
Total current liabilities |
|
2,291 |
|
|
|
2,411 |
|
Long-term debt, net |
|
3,608 |
|
|
|
3,608 |
|
Deferred income taxes, net |
|
375 |
|
|
|
506 |
|
Other liabilities |
|
907 |
|
|
|
932 |
|
Total liabilities |
|
7,181 |
|
|
|
7,457 |
|
|
|
|
|
||||
Shareholders' equity |
|
|
|
||||
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
11,927 |
|
|
|
11,715 |
|
Treasury stock |
|
(5,563 |
) |
|
|
(5,563 |
) |
Retained earnings |
|
12,053 |
|
|
|
12,025 |
|
Accumulated other comprehensive loss |
|
(586 |
) |
|
|
(578 |
) |
Total shareholders’ equity |
|
17,831 |
|
|
|
17,599 |
|
Total liabilities and shareholders’ equity |
$ |
25,012 |
|
|
$ |
25,056 |
|
Activision Blizzard, INC. AND SUBSIDIARIES SUPPLEMENTAL CASH FLOW INFORMATION (Amounts in millions) |
||||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
Year over Year
|
||||||
Cash Flow Data |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Cash Flow |
|
$ |
844 |
|
$ |
388 |
|
$ |
521 |
|
$ |
661 |
|
$ |
642 |
|
(24 |
) % |
Capital Expenditures |
|
|
22 |
|
|
14 |
|
|
23 |
|
|
21 |
|
|
15 |
|
(32 |
) |
Non-GAAP Free Cash Flow1 |
|
$ |
822 |
|
$ |
374 |
|
$ |
498 |
|
$ |
640 |
|
$ |
627 |
|
(24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Cash Flow - TTM2 |
|
$ |
2,948 |
|
$ |
2,568 |
|
$ |
2,893 |
|
$ |
2,414 |
|
$ |
2,212 |
|
(25 |
) |
Capital Expenditures - TTM2 |
|
|
81 |
|
|
82 |
|
|
81 |
|
|
80 |
|
|
73 |
|
(10 |
) |
Non-GAAP Free Cash Flow1 - TTM2 |
|
$ |
2,867 |
|
$ |
2,486 |
|
$ |
2,812 |
|
$ |
2,334 |
|
$ |
2,139 |
|
(25 |
) % |
1 | Non-GAAP free cash flow represents operating cash flow minus capital expenditures. |
|
2 | TTM represents trailing twelve months. Operating Cash Flow for three months ended June 30, 2020, three months ended September 30, 2020, and three months ended December 31, 2020, were $768 million, $196 million, and $1,140 million, respectively. Capital Expenditures for the three months ended June 30, 2020, three months ended September 30, 2020, and three months ended December 31, 2020, were $13 million, $24 million, and $22 million, respectively. |
|
Activision Blizzard, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except per share data) |
|||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 |
Net Revenues |
Cost of Revenues—Product Sales: Product Costs |
Cost of Revenues—Product Sales: Software Royalties and Amortization |
Cost of Revenues—In-game/Subs/Other: Game Operations and Distribution Costs |
Cost of Revenues—In-game/Subs/Other: Software Royalties and Amortization |
Product Development |
Sales and Marketing |
General and Administrative |
Restructuring and related costs |
Total Costs and Expenses |
|||||||||||||||||||||||||||||
GAAP Measurement |
$ |
1,768 |
|
$ |
91 |
|
$ |
81 |
|
$ |
288 |
|
$ |
19 |
$ |
346 |
|
$ |
252 |
|
$ |
214 |
|
$ |
(2 |
) |
$ |
1,289 |
|
||||||||||
Share-based compensation1 |
|
— |
|
|
— |
|
|
(4 |
) |
|
(2 |
) |
|
— |
|
(53 |
) |
|
(15 |
) |
|
(24 |
) |
|
— |
|
|
(98 |
) |
||||||||||
Amortization of intangible assets2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
|
(2 |
) |
||||||||||
Restructuring and related costs3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
2 |
|
||||||||||
Merger and acquisition-related fees and other expenses4 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(32 |
) |
|
— |
|
|
(32 |
) |
||||||||||
Non-GAAP Measurement |
$ |
1,768 |
|
$ |
91 |
|
$ |
77 |
|
$ |
286 |
|
$ |
19 |
$ |
293 |
|
$ |
237 |
|
$ |
156 |
|
$ |
— |
|
$ |
1,159 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(287 |
) |
$ |
(14 |
) |
$ |
(38 |
) |
$ |
(2 |
) |
$ |
2 |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(52 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Operating Income |
Net Income |
Basic Earnings per Share |
Diluted Earnings per Share |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
GAAP Measurement |
$ |
479 |
|
$ |
395 |
|
$ |
0.51 |
|
$ |
0.50 |
|
|
|
|
|
|
|
|||||||||||||||||||||
Share-based compensation1 |
|
98 |
|
|
98 |
|
|
0.13 |
|
|
0.13 |
|
|
|
|
|
|
|
|||||||||||||||||||||
Amortization of intangible assets2 |
|
2 |
|
|
2 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|||||||||||||||||||||
Restructuring and related costs3 |
|
(2 |
) |
|
(2 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
|
|||||||||||||||||||||
Merger and acquisition-related fees and other expenses4 |
|
32 |
|
|
32 |
|
|
0.04 |
|
|
0.04 |
|
|
|
|
|
|
|
|||||||||||||||||||||
Income tax impacts from items above6 |
|
— |
|
|
(24 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
|
|
|
|
|
|||||||||||||||||||||
Non-GAAP Measurement |
$ |
609 |
|
$ |
501 |
|
$ |
0.64 |
|
$ |
0.64 |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues5 |
$ |
(235 |
) |
$ |
(204 |
) |
$ |
(0.26 |
) |
$ |
(0.26 |
) |
|
|
|
|
|
|
1 | Reflects expenses related to share-based compensation, including $15 million for outstanding liability awards accounted for under ASC 718. |
|
2 | Reflects amortization of intangible assets from purchase price accounting. |
|
3 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
4 | Reflects fees and other expenses related to our proposed transaction with Microsoft Corporation ("Microsoft"), primarily legal and advisory fees. |
|
5 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products, including the effects of taxes. |
|
6 | Reflects the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income under ASC 740, which employs an annual effective tax rate method to the results. |
|
The GAAP and non-GAAP earnings per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding. |
||
Activision Blizzard, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except per share data) |
||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 |
Net Revenues |
Cost of Revenues—Product Sales: Product Costs |
Cost of Revenues—Product Sales: Software Royalties and Amortization |
Cost of Revenues—In-game/Subs/Other: Game Operations and Distribution Costs |
Cost of Revenues—In-game/Subs/Other: Software Royalties and Amortization |
Product Development |
Sales and Marketing |
General and Administrative |
Restructuring and related costs |
Total Costs and Expenses |
||||||||||||||||||||||||||||||
GAAP Measurement |
$ |
2,275 |
|
$ |
140 |
|
$ |
112 |
|
$ |
296 |
|
$ |
30 |
|
$ |
353 |
|
$ |
237 |
|
$ |
282 |
|
$ |
30 |
|
$ |
1,480 |
|
||||||||||
Share-based compensation1 |
|
— |
|
|
— |
|
|
(6 |
) |
|
— |
|
|
— |
|
|
(16 |
) |
|
(5 |
) |
|
(124 |
) |
|
— |
|
|
(151 |
) |
||||||||||
Amortization of intangible assets2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
|
(5 |
) |
||||||||||
Restructuring and related costs3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(30 |
) |
|
(30 |
) |
||||||||||
Non-GAAP Measurement |
$ |
2,275 |
|
$ |
140 |
|
$ |
106 |
|
$ |
296 |
|
$ |
27 |
|
$ |
337 |
|
$ |
232 |
|
$ |
156 |
|
$ |
— |
|
$ |
1,294 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues4 |
$ |
(209 |
) |
$ |
(13 |
) |
$ |
(64 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(77 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Operating Income |
Net Income |
Basic Earnings per Share |
Diluted Earnings per Share |
|
|
|
|
|
|
||||||||||||||||||||||||||||||
GAAP Measurement |
$ |
795 |
|
$ |
619 |
|
$ |
0.80 |
|
$ |
0.79 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Share-based compensation1 |
|
151 |
|
|
151 |
|
|
0.20 |
|
|
0.19 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Amortization of intangible assets2 |
|
5 |
|
|
5 |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Restructuring and related costs3 |
|
30 |
|
|
30 |
|
|
0.04 |
|
|
0.04 |
|
|
|
|
|
|
|
||||||||||||||||||||||
Income tax impacts from items above5 |
|
— |
|
|
(37 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
|
|
|
|
|
||||||||||||||||||||||
Non-GAAP Measurement |
$ |
981 |
|
$ |
768 |
|
$ |
0.99 |
|
$ |
0.98 |
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Net effect of deferred revenues and related cost of revenues4 |
$ |
(132 |
) |
$ |
(107 |
) |
$ |
(0.14 |
) |
$ |
(0.14 |
) |
|
|
|
|
|
|
1 | Reflects expenses related to share-based compensation. |
|
2 | Reflects amortization of intangible assets from purchase price accounting. |
|
3 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products, including the effects of taxes. |
|
5 | Reflects the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax income is calculated under the same accounting principles applied to the GAAP pre-tax income under ASC 740, which employs an annual effective tax rate method to the results. |
|
The GAAP and non-GAAP earnings per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding. | ||
Activision Blizzard, INC. AND SUBSIDIARIES OPERATING SEGMENTS INFORMATION (Amounts in millions) |
||||||||||||||||||||||||||||
Three Months Ended |
|
March 31, 2022 |
|
$ Increase / (Decrease) |
||||||||||||||||||||||||
|
|
Activision |
|
Blizzard |
|
King |
|
Total |
|
Activision |
|
Blizzard |
|
King |
|
Total |
||||||||||||
Segment Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenues from external customers |
|
$ |
453 |
|
$ |
265 |
|
$ |
682 |
|
$ |
1,400 |
|
|
$ |
(438 |
) |
|
$ |
(193 |
) |
|
$ |
73 |
|
$ |
(558 |
) |
Intersegment net revenues1 |
|
|
— |
|
|
9 |
|
|
— |
|
|
9 |
|
|
|
— |
|
|
|
(16 |
) |
|
|
— |
|
|
(16 |
) |
Segment net revenues |
|
$ |
453 |
|
$ |
274 |
|
$ |
682 |
|
$ |
1,409 |
|
|
$ |
(438 |
) |
|
$ |
(209 |
) |
|
$ |
73 |
|
$ |
(574 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment operating income |
|
$ |
59 |
|
$ |
53 |
|
$ |
243 |
|
$ |
355 |
|
|
$ |
(383 |
) |
|
$ |
(155 |
) |
|
$ |
40 |
|
$ |
(498 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Margin |
|
|
|
|
|
|
|
|
25.2 |
% |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
March 31, 2021 |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Activision |
|
Blizzard |
|
King |
|
Total |
|
|
|
|
|
|
|
|
||||||||||||
Segment Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenues from external customers |
|
$ |
891 |
|
$ |
458 |
|
$ |
609 |
|
$ |
1,958 |
|
|
|
|
|
|
|
|
|
|||||||
Intersegment net revenues1 |
|
|
— |
|
|
25 |
|
|
— |
|
|
25 |
|
|
|
|
|
|
|
|
|
|||||||
Segment net revenues |
|
$ |
891 |
|
$ |
483 |
|
$ |
609 |
|
$ |
1,983 |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment operating income |
|
$ |
442 |
|
$ |
208 |
|
$ |
203 |
|
$ |
853 |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Margin |
|
|
|
|
|
|
|
|
43.0 |
% |
|
|
|
|
|
|
|
|
1 | Intersegment revenues reflect licensing and service fees charged between segments. |
Наши операционные сегменты соответствуют тому, как наши операции анализируются и управляются нашим Главным исполнительным директором, который является нашим главным лицом, принимающим операционные решения (“CODM”). CODM рассматривает показатели сегмента без учета: влияния изменения доходов будущих периодов и соответствующей стоимости доходов в отношении некоторых наших онлайн-игр; расходов на компенсацию на основе акций (включая выплаты по обязательствам, учитываемые в соответствии с ASC 718); амортизации нематериальных активов в результате учета покупной цены; гонорары и другие расходы (включая судебные издержки, издержки, расходы и начисления), связанные с приобретениями, сопутствующими интеграционными мероприятиями и финансированием; определенная реструктуризация и связанные с ней расходы; и другие неденежные расходы. Таблицы сверки выручки сегмента и операционной прибыли с консолидированной чистой выручкой и консолидированной прибылью до вычета расходов по налогу на прибыль приведены на следующей странице.
Наши операционные сегменты также соответствуют нашей внутренней организационной структуре, тому, как мы оцениваем операционные показатели и распределяем ресурсы, а также наличию отдельной финансовой информации. Мы не агрегируем операционные сегменты.
Activision Blizzard, INC. AND SUBSIDIARIES OPERATING SEGMENTS INFORMATION (Amounts in millions) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Reconciliation to consolidated net revenues: |
|
|
|
|
||||
Segment net revenues |
|
$ |
1,409 |
|
|
$ |
1,983 |
|
Revenues from non-reportable segments1 |
|
|
81 |
|
|
|
108 |
|
Net effect from recognition (deferral) of deferred net revenues2 |
|
|
287 |
|
|
|
209 |
|
Elimination of intersegment revenues3 |
|
|
(9 |
) |
|
|
(25 |
) |
Consolidated net revenues |
|
$ |
1,768 |
|
|
$ |
2,275 |
|
|
|
|
|
|
||||
Reconciliation to consolidated income before income tax expense: |
|
|
|
|
||||
Segment operating income |
|
$ |
355 |
|
|
$ |
853 |
|
Operating income (loss) from non-reportable segments1 |
|
|
19 |
|
|
|
(4 |
) |
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues2 |
|
|
235 |
|
|
|
132 |
|
Share-based compensation expense4 |
|
|
(98 |
) |
|
|
(151 |
) |
Amortization of intangible assets |
|
|
(2 |
) |
|
|
(5 |
) |
Restructuring and related costs5 |
|
|
2 |
|
|
|
(30 |
) |
Merger and acquisition-related fees and other expenses6 |
|
|
(32 |
) |
|
|
— |
|
Consolidated operating income |
|
|
479 |
|
|
|
795 |
|
Interest and other expense (income), net |
|
|
14 |
|
|
|
30 |
|
Consolidated income before income tax expense (benefit) |
|
$ |
465 |
|
|
$ |
765 |
|
1 | Includes other income and expenses outside of our reportable segments, including our distribution business and unallocated corporate income and expenses. |
|
2 | Reflects the net effect from (deferral) of revenues and recognition of deferred revenues, along with related cost of revenues, on certain of our online-enabled products. |
|
3 | Intersegment revenues reflect licensing and service fees charged between segments. |
|
4 | Reflects expenses related to share-based compensation, including liability awards accounted for under ASC 718. |
|
5 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
6 | Reflects fees and other expenses related to our proposed transaction with Microsoft, primarily legal and advisory fees. |
|
Activision Blizzard, INC. AND SUBSIDIARIES NET REVENUES BY DISTRIBUTION CHANNEL (Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
$ Increase
|
|
% Increase
|
|||||||||||||
|
Amount |
|
% of Total1 |
|
Amount |
|
% of Total1 |
|
|
|||||||||||
Net Revenues by Distribution Channel |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Digital online channels2 |
$ |
1,589 |
|
|
90 |
% |
|
$ |
2,006 |
|
|
88 |
% |
|
$ |
(417 |
) |
|
(21 |
) % |
Retail channels |
|
85 |
|
|
5 |
|
|
|
149 |
|
|
7 |
|
|
|
(64 |
) |
|
(43 |
) |
Other3 |
|
94 |
|
|
5 |
|
|
|
120 |
|
|
5 |
|
|
|
(26 |
) |
|
(22 |
) |
Total consolidated net revenues |
$ |
1,768 |
|
|
100 |
% |
|
$ |
2,275 |
|
|
100 |
% |
|
$ |
(507 |
) |
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred revenues4 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Digital online channels2 |
$ |
(222 |
) |
|
|
|
$ |
(141 |
) |
|
|
|
|
|
|
|||||
Retail channels |
|
(64 |
) |
|
|
|
|
(74 |
) |
|
|
|
|
|
|
|||||
Other3 |
|
(1 |
) |
|
|
|
|
6 |
|
|
|
|
|
|
|
|||||
Total changes in deferred revenues |
$ |
(287 |
) |
|
|
|
$ |
(209 |
) |
|
|
|
|
|
|
1 | The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 | Net revenues from Digital online channels represent revenues from digitally-distributed downloadable content, microtransactions, subscriptions, and products, as well as licensing royalties. |
|
3 | Net revenues from Other primarily include revenues from our distribution business, the Overwatch League, and the Call of Duty League. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
Activision Blizzard, INC. AND SUBSIDIARIES NET REVENUES BY PLATFORM (Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
$ Increase
|
|
% Increase
|
|||||||||||||
|
Amount |
|
% of Total1 |
|
Amount |
|
% of Total1 |
|
|
|||||||||||
Net Revenues by Platform |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Console |
$ |
484 |
|
|
27 |
% |
|
$ |
799 |
|
|
35 |
% |
|
$ |
(315 |
) |
|
(39 |
) % |
PC |
|
383 |
|
|
22 |
|
|
|
622 |
|
|
27 |
|
|
|
(239 |
) |
|
(38 |
) |
Mobile and ancillary2 |
|
807 |
|
|
46 |
|
|
|
734 |
|
|
32 |
|
|
|
73 |
|
|
10 |
|
Other3 |
|
94 |
|
|
5 |
|
|
|
120 |
|
|
5 |
|
|
|
(26 |
) |
|
(22 |
) |
Total consolidated net revenues |
$ |
1,768 |
|
|
100 |
% |
|
$ |
2,275 |
|
|
100 |
% |
|
$ |
(507 |
) |
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred revenues4 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Console |
$ |
(221 |
) |
|
|
|
$ |
(173 |
) |
|
|
|
|
|
|
|||||
PC |
|
(80 |
) |
|
|
|
|
(45 |
) |
|
|
|
|
|
|
|||||
Mobile and ancillary2 |
|
15 |
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|||||
Other3 |
|
(1 |
) |
|
|
|
|
6 |
|
|
|
|
|
|
|
|||||
Total changes in deferred revenues |
$ |
(287 |
) |
|
|
|
$ |
(209 |
) |
|
|
|
|
|
|
1 | The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 | Net revenues from Mobile and ancillary primarily include revenues from mobile devices. |
|
3 | Net revenues from Other primarily include revenues from our distribution business, the Overwatch League, and the Call of Duty League. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
Activision Blizzard, INC. AND SUBSIDIARIES NET REVENUES BY GEOGRAPHIC REGION (Amounts in millions) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
$ Increase
|
|
% Increase
|
|||||||||||||
|
Amount |
|
% of Total1 |
|
Amount |
|
% of Total1 |
|
|
|||||||||||
Net Revenues by Geographic Region |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Americas |
$ |
1,016 |
|
|
57 |
% |
|
$ |
1,307 |
|
|
57 |
% |
|
$ |
(291 |
) |
|
(22 |
) % |
EMEA2 |
|
527 |
|
|
30 |
|
|
|
731 |
|
|
32 |
|
|
|
(204 |
) |
|
(28 |
) |
Asia Pacific |
|
225 |
|
|
13 |
|
|
|
237 |
|
|
10 |
|
|
|
(12 |
) |
|
(5 |
) |
Total consolidated net revenues |
$ |
1,768 |
|
|
100 |
% |
|
$ |
2,275 |
|
|
100 |
% |
|
$ |
(507 |
) |
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred revenues3 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Americas |
$ |
(174 |
) |
|
|
|
$ |
(121 |
) |
|
|
|
|
|
|
|||||
EMEA2 |
|
(93 |
) |
|
|
|
|
(65 |
) |
|
|
|
|
|
|
|||||
Asia Pacific |
|
(20 |
) |
|
|
|
|
(23 |
) |
|
|
|
|
|
|
|||||
Total changes in deferred revenues |
$ |
(287 |
) |
|
|
|
$ |
(209 |
) |
|
|
|
|
|
|
1 | The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. |
|
2 | Net revenues from EMEA consist of the Europe, Middle East, and Africa geographic regions. |
|
3 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online-enabled products. |
|
Activision Blizzard, INC. AND SUBSIDIARIES EBITDA AND ADJUSTED EBITDA (Amounts in millions) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
Trailing Twelve
|
|||||||||
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|||||||||
GAAP Net Income |
$ |
876 |
|
|
$ |
639 |
|
|
$ |
564 |
|
$ |
395 |
|
|
$ |
2,474 |
|
Interest and other expense (income), net |
|
(43 |
) |
|
|
65 |
|
|
|
45 |
|
|
14 |
|
|
|
81 |
|
Provision for income taxes |
|
126 |
|
|
|
120 |
|
|
|
73 |
|
|
70 |
|
|
|
389 |
|
Depreciation and amortization |
|
28 |
|
|
|
27 |
|
|
|
27 |
|
|
24 |
|
|
|
106 |
|
EBITDA |
|
987 |
|
|
|
851 |
|
|
|
709 |
|
|
503 |
|
|
|
3,050 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation expense1 |
|
43 |
|
|
|
64 |
|
|
|
249 |
|
|
98 |
|
|
|
454 |
|
Restructuring and related costs2 |
|
13 |
|
|
|
3 |
|
|
|
30 |
|
|
(2 |
) |
|
|
44 |
|
Merger and acquisition-related fees and other expenses3 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
32 |
|
|
|
32 |
|
Adjusted EBITDA |
$ |
1,043 |
|
|
$ |
918 |
|
|
$ |
988 |
|
$ |
631 |
|
|
$ |
3,580 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Change in deferred net revenues and related cost of revenues4 |
$ |
(276 |
) |
|
$ |
(154 |
) |
|
$ |
215 |
|
$ |
(235 |
) |
|
$ |
(450 |
) |
1 | Reflects expenses related to share-based compensation, including liability awards accounted for under ASC 718. |
|
2 | Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
|
3 | Reflects fees and other expenses related to our proposed transaction with Microsoft, primarily legal and advisory fees. |
|
4 | Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online-enabled products. |
|
Activision Blizzard, INC. AND SUBSIDIARIES OPERATING METRICS (Amounts in millions) |
||||||||||||
Net Bookings1 |
||||||||||||
|
Three Months Ended March 31, |
|||||||||||
|
|
2022 |
|
|
2021 |
|
$ Increase
|
|
% Increase
|
|||
Net bookings1 |
$ |
1,481 |
|
$ |
2,066 |
|
$ |
(585 |
) |
|
(28 |
) % |
In-game net bookings2 |
$ |
1,011 |
|
$ |
1,343 |
|
$ |
(332 |
) |
|
(25 |
) % |
1 | We monitor net bookings as a key operating metric in evaluating the performance of our business because it enables an analysis of performance based on the timing of actual transactions with our customers and provides more timely indications of trends in our operating results. Net bookings is the net amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and publisher incentives, among others. Net bookings is equal to net revenues excluding the impact from deferrals. |
|
2 | In-game net bookings primarily includes the net amount of downloadable content and microtransactions sold during the period, and is equal to in-game net revenues excluding the impact from deferrals. |
Ежемесячные Активные Пользователи3
|
March 31, 2021 |
|
June 30, 2021 |
|
September 30, 2021 |
|
December 31, 2021 |
|
March 31, 2022 |
Activision |
150 |
|
127 |
|
119 |
|
107 |
|
100 |
Blizzard |
27 |
|
26 |
|
26 |
|
24 |
|
22 |
King |
258 |
|
255 |
|
245 |
|
240 |
|
250 |
Total MAUs |
435 |
|
408 |
|
390 |
|
371 |
|
372 |
3 | We monitor monthly active users (“MAUs”) as a key measure of the overall size of our user base. MAUs are the number of individuals who accessed a particular game in a given month. We calculate average MAUs in a period by adding the total number of MAUs in each of the months in a given period and dividing that total by the number of months in the period. An individual who accesses two of our games would be counted as two users. In addition, due to technical limitations, for Activision and King, an individual who accesses the same game on two platforms or devices in the relevant period would be counted as two users. For Blizzard, an individual who accesses the same game on two platforms or devices in the relevant period would generally be counted as a single user. In certain instances, we rely on third parties to publish our games. In these instances, MAU data is based on information provided to us by those third parties, or, if final data is not available, reasonable estimates of MAUs for these third-party published games. |