Financial Data and Key Metrics Changes - Activision Blizzard reported Q3 GAAP revenues of 100 million [37] - Net bookings reached 30 million above the August outlook [38] - Operating cash flows were 10 billion in cash and investments, and a net cash position of approximately 641 million, lower year-over-year due to the prior year's launch of Tony Hawk and declines in Call of Duty [39] - Blizzard's revenue grew 20% year-over-year to 652 million, achieving record highs [41] Market Data and Key Metrics Changes - Monthly active users for Activision reached 119 million, with Call of Duty sustaining engagement well above pre-Warzone levels [21] - Blizzard's monthly active users were 26 million, with strong demand for Diablo II: Resurrected [25] - King saw a double-digit percentage increase in payer numbers year-over-year, with in-game net bookings for Candy Crush growing over 20% [31][32] Company Strategy and Development Direction - The company is focused on becoming a leader in workplace culture and has implemented various initiatives to improve employee satisfaction and retention [7][10] - There is a commitment to invest $250 million over the next 10 years to foster opportunities in gaming and technology for underrepresented communities [12] - The strategy includes geographic diversification and investment in creative talent to enhance game development [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the company despite facing challenges such as negative media attention and increased competition for talent [15][47] - The company is planning for a substantial amount of content from Blizzard next year, although some titles like Overwatch 2 and Diablo IV will see delayed launches [20][19] - Management emphasized the importance of maintaining a safe working environment to foster creativity and professional growth [50] Other Important Information - The company announced a comprehensive agreement with the U.S. Equal Opportunity Commission to strengthen policies against harassment and discrimination [10] - Jen Oneal, co-leader of Blizzard, will leave the company at the end of the year, with Mike Ybarra taking over her responsibilities [34] Q&A Session Summary Question: Can you talk about the progress around rectifying workplace issues? - Management expressed confidence in the progress made and emphasized the importance of creating a welcoming and inclusive environment to attract and retain talent [53][55] Question: Can you provide more details on the release timeline for Overwatch 2 and Diablo IV? - Management indicated that both titles will benefit from additional development time to ensure quality, but specific release dates were not shared [60][61] Question: What are the fundamental drivers behind Candy Crush's in-app net bookings growth? - The company highlighted increased content frequency and successful live operations as key drivers for growth in Candy Crush and other titles [64][66] Question: How will Vanguard integrate with Warzone? - Management confirmed that Vanguard and Warzone will share technology and progression, enhancing the player experience across both games [71][72] Question: What has been the performance of Diablo II: Resurrected? - The reception has been strong, with record sales for a remaster, indicating a robust demand for the Diablo franchise [77][79]
AB(ATVI) - 2021 Q3 - Earnings Call Transcript