Activision Blizzard — Q1 2013 Earnings Presentation
12 slides from Activision Blizzard's earnings presentation, May 8, 2013
Slide 1: First Quarter 2013 Results
First Quarter 2013 Results May 8, 2013
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Please review our SEC filings on Form 10-K and Form 10-Q The statements contained in this presentation that are not historical facts are forward-looking statements. The company generally uses words such as “outlook,” “will,” “could,” “should,” “would,” “might,” “remains,” “to
Slide 3: Activision Blizzard Q1 2013 Results Summary
Activision Blizzard Q1 2013 Results Summary Better-than-expected performance driven by innovation and quality Q1 2012 Original Q1 2013 Outlook1 Q1 2013 Yr./Yr. GAAP Net Revenues $1,172M $1,160M $1,324M 13% GAAP EPS $0.33 $0.29 $0.40 21% Non-GAAP2 Net Revenues $587M $690M $804M 37% Non-GAAP2 EPS $0.0
Slide 4: Activision Blizzard Q1 2013 Highlights
Activision Blizzard Q1 2013 Highlights Better-than-expected performance driven by innovation and quality • Solid financial performance: • Non-GAAP1 Revenues of $804M • Non-GAAP1 Operating Margin of 31% • Non-GAAP1 EPS of $0.17 • Cash Flow of $325M • Outstanding product performance2: • Skylanders: th
Slide 5: Key Priorities
Key Priorities Focused on our largest and highest margin opportunities Activision Publishing Blizzard Entertainment 2013: 2013: Call of Duty Ghosts, Black Ops II DLC, New content for World of Warcraft, Skylanders SWAP Force Hearthstone Beta, Diablo III for PS3 Long-Term: Long-Term: Development of Bu
Slide 6: Financial Outlook, as of May 8, 2013
Financial Outlook, as of May 8, 2013 2013 Q2 2013 GAAP Non-GAAP* GAAP Non-GAAP* Net Revenues $4,220M $4,250M $980M $590M COGS (Prod/Online) 24% 26% 27% 27% Operating Expense, incl. Royalties 49% 44% 40% 60% Operating Margin, may not foot due to rounding 27% 30% 33% 13% Tax Rate 26% 27% 26% 27% EPS**
Slide 7: Call of Duty Online Engagement
Call of Duty Online Engagement Record Q1 Monthly Active Users (MAU)1 Black Ops II Record Q1 MAU Modern Warfare 3 Black Ops Modern Warfare 2 World at War Modern Warfare Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Oct-08 Oct-09 Feb-11 Feb-12 Feb-13 Aug-08 Dec-08 Aug-09 Dec-09 Aug-10 Oct-10 Dec-10 Aug-11 Oct-11
Slide 8: Skylanders SWAP Force
Skylanders SWAP Force Innovation continues with a great new game for 2013 Skylanders franchise: • #1 franchise in NA and Europe YTD1 • Revenues >$1B thru 2012 SWAP Force™, our 2013 game: • All figures sold to date are playable in the new game • Our largest collection of figures yet, including: • 16
Slide 9: Activision Publishing Highlights & Pipeline
Activision Publishing Highlights & Pipeline Solid Q1; Strong Non-GAAP* Revenues, Operating Margin; Strong Digital Revenues Outsold Modern Warfare 3 at Retail in Q1; Strong digital performance. To launch 11/5/13. Planning to share more at Xbox reveal on 5/21/13. Developing a microtransaction-based ga
Slide 10: Blizzard Entertainment Highlights
Blizzard Entertainment Highlights Launched StarCraft II: Heart of the Swarm in Q1, the #1 PC title* World of Warcraft: Mists of Pandaria • Approximately 8.3M subscribers as of 3/31/13 • Continued content updates to maintain engagement Diablo III • PS3 and PS4 versions announced • PS3 version debuted
Slide 11: Use of Non-GAAP Measures
Use of Non-GAAP Measures As a supplement to our financial measures presented in accordance with 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 mor
Slide 12: 2013 First Quarter Results: Q&A
2013 First Quarter Results: Q&A May 8, 2013