Activision Blizzard, Inc. (NASDAQ:ATVI) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 04:30 pm ET


Activision Blizzard, Inc. (NASDAQ:ATVI) Q4 2018 Earnings Conference Call Transcript


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Good day and welcome to the Activision Blizzard Q4 2018 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Chris Hickey. Please go ahead, sir.

Christopher Hickey

Good afternoon, and thank you for joining us today for Activision Blizzard's fourth quarter 2018 conference call. With us are Bobby Kotick, CEO; Coddy Johnson, COO; and Dennis Durkin, company's CFO and President of Emerging Businesses. And for Q&A, Rob Kostich, President of Activision; J. Allen Brack, President of Blizzard; Riccardo Zacconi, CEO of King; and Humam Sakhnini, President of King, will also join us.

I would like to remind everyone that during this call, we will be making statements that are not historical facts. 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.

A number of factors could cause the company's actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements. These include the risk factors discussed in our SEC filings, including our 2017 Annual Report on Form 10-K and those on the slide that is showing. The company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after today, February 12, 2019.

We will present both GAAP and non-GAAP financial measures during this call. We'll provide non-GAAP financial measures, which exclude the impact of expenses related to stock-based compensation, the amortization of intangible assets and expenses related to acquisitions, including legal fees, costs, expenses and accruals. Expenses related to debt financings and refinancings, restructuring charges, the associated tax benefits of these excluded items and the impact of certain significant discrete tax related items.

These non-GAAP measures are not intended to be considered in isolation from, as a substitute for, or superior to our GAAP results. We encourage investors to consider all measures before making an investment decision. Please refer to our earnings release, which is posted on, for a full GAAP to non-GAAP reconciliation and further explanation with respect to our non-GAAP measures. There's also an earnings presentation 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 now, I'd like to introduce our CEO, Bobby Kotick.

Bobby Kotick

Thank you Chris, and thank you all for joining us today. We once again achieved record results in 2018. We delivered record GAAP revenue in GAAP and non-GAAP EPS for both fourth quarter and the year. For 2018, we generated record GAAP revenues across all three platforms, and both Activision and King achieved record segment financial results. While we had record performance in 2018, it didn't quite live up to our expectations. We didn't execute as well as we hoped to in 2018 and our current outlook