Activision Blizzard, Inc. (NASDAQ:ATVI) Q1 2015 Earnings Conference Call - Final Transcript

May 06, 2015 • 04:30 pm ET


Activision Blizzard, Inc. (NASDAQ:ATVI) Q1 2015 Earnings Conference Call - Final Transcript


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Good day and welcome to the Activision Blizzard Quarter One 2015 Earnings Conference call. Today's conference is being recorded.

At this time for opening remarks and introductions, I would like to turn today's call over to Amrita Ahuja. Please go ahead, ma'am.

Amrita Ahuja

Good afternoon, and thank you for joining us today for Activision Blizzard's First Quarter 2015 Conference Call. Speaking on the call today will be Bobby Kotick, CEO of Activision Blizzard; Dennis Durkin, CFO of Activision Blizzard; Eric Hirshberg, CEO of Activision Publishing; Mike Morhaime, CEO of Blizzard Entertainment; and Thomas Tippl, COO of Activision Blizzard.

I would like to remind everyone that during this call we will be making statements that are not historical facts. These are forward-looking statements that are based on current expectations and assumptions that are subject to risks and uncertainties. A number of important factors could cause the company's actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements, including the factors discussed in the Risk Factor sections of our SEC filings, including our 2014 Annual Report on Form 10-K, which is on file with the SEC, and those indicated on the slide that is showing.

The forward-looking statements in this presentation are based on information available to the company as of the date of this presentation, and while we believe them to be true, they ultimately may prove to be incorrect. The company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after today, May 6, 2015, or to reflect the occurrence of unanticipated events.

I would like to note that certain numbers we will be presenting today will be made on a non-GAAP basis, excluding the impact of the change in deferred net revenues and related cost of sales with respect to certain of our online-enabled games, expenses related to stock-based compensation, the amortization of intangible assets, expenses, including legal fees, costs, expenses and accruals related to the purchase transaction, and related debt financing and the associated tax benefits.

Please refer to our earnings release which is posted on for a full GAAP to non-GAAP reconciliation and further explanation. There's also a PowerPoint overview which you can access with the webcast and which will be posted to the website following the call. In addition we will also be posting a financial overview highlighting both GAAP and non-GAAP results and a one-page summary sheet.

And now I'd like to introduce our CEO, Bobby Kotick.

Robert A. Kotick

Thank you, Amrita. Usually, I end my remarks by thanking our incredibly talented, extraordinarily committed employees around the world. But today, I'm leading with it because they are in fact the reason we remain one of the world's most successful game companies. And also during this quarter, for the first time, we were recognized by Fortune, as one of the 100 best companies to work for.

Inclusion on this list is largely determined by employee survey results, and to be recognized as a great