Activision Blizzard, Inc. (NASDAQ:ATVI) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 04:30 pm ET


Activision Blizzard, Inc. (NASDAQ:ATVI) Q2 2019 Earnings Conference Call - Final Transcript


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Good day and welcome to the Activision Blizzard Q2 2019 Earnings Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Christopher Hickey, Senior Vice President of Investor Relations. Please go ahead.

Christopher Hickey

Good afternoon and thank you for joining us today for Activision Blizzard Second Quarter 2019 Conference Call. With us are Bobby Kotick, CEO; Coddy Johnson, COO; and Dennis Durkin company CFO and President of Emerging Businesses. And for Q&A, Rob Kostich, President of Activision; J Allen Brack, President of Blizzard; 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 2018 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, August 8, 2019. We will present both GAAP and non-GAAP financial measures during this call. We 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 and related charges, the associated tax benefits of these excluded items and significant discrete tax-related items including amounts related to changes in tax laws, amounts related to the potential or final resolution of tax positions and other unusual or unique tax-related items and activities.

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 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. Our second quarter results exceeded our prior outlook for both revenue and earnings per share. In the first half of 2019, we prioritized investments in our key franchises and we expect to expand reach, deepen engagement, and drive player investment as a result. We're very encouraged by the early results of this renewed focus.

Our 300