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Activision Blizzard Q4 2019 Earnings Call - Diablo Immortal Testing Mid-2020, WoW Classic Success

posted 14 days ago by Anshlun

Link to the full Q4 2019 Conference Call

Fourth Quarter Highlights

ATVI had a better-than-expected Q4, with revenue 9.9% ahead of its guidance value.
Their projection for Q4 was $1.81B revenue, but ended up achieving $1.99B.

Call of Duty increased its reach to many new different countries with new Modern Warfare, with a double-digit increase when compared to Black Ops 4.

WoW Classic success highlights the potential for compelling new content releases to increase community sizes.

Blizzard had a stable Q4 revenue, with World of Warcraft and Overwatch offsetting declines in revenue from Hearthstone and Diablo.

Activision Blizzard's Plan for Growth

Consistent cadence of Major New Content Releases

Call of Duty Modern Warfare highly successful release, with numbers ahead of Black Ops 4.
World of Warcraft Classic attracting both new and returning players to the original world of Azeroth.
Improving Live Operations
World of Warcraft Classic continuous updates kept the size of the active WoW player base well above pre-Classic levels.
Hearthstone engagement increased when compared to previous quarters.
Extending franchises to Mobile
The launch of Call of Duty Mobile was one of the best mobile launches in the industry, driving Activision to record MAUs.
Call of Duty success highlights the opportunities on mobile for other franchises.
Adding New Engagement Models to franchises
Overwatch League and the new Call of Duty League with their homestand formats bring the esports action to many different locations.
New partnership with YouTube, bringing ATVI esports content to 200M+ gamer viewers worldwide.

Blizzard Highlights for Q4 2019Blizzard has a rapid cadence of follow-on content planned for Classic, as well as the Shadowlands expansion for retail World of Warcraft, in the second half of 2020.

The launch of Descent of Dragons Expansion and the new Battlegrounds game mode in Q4 drove increased growth in engagement for the game.

Net Bookings also grew in the quarter for the franchise. Net bookings is an operating metric that is defined as the net amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and publisher incentives among others and is equal to net revenues excluding the impact from deferrals.

Q4 had Overwatch launch for the Nintendo Switch, further expanding its community, which has surpassed 50M players globally since launch.

Q1 2020 will have the return of the Overwatch League, with 20 teams around the world competing in a homestand format and matches being broadcast live on YouTube.

Diablo Immortal plans its first regional tests for the middle of 2020.

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Comment by mintymentosoh boy. time for activision blizzard to go full RemovedComment by reboundthe second half of 2020Comment by Willandivhas well as the Shadowlands expansion for retail World of Warcraft, in the second half of 2020.

Poggers.Comment by JoshmaulWell I guess that narrows it down for Shadowlands?Comment by SolivarnikIf you check the Shop section at Blizzard launcher, Shadowlands release is now at 31.12. 2020 or sooner.Comment by Peredhil"monthly annual users (MAU) " is the fancy term that translates into making the game into a slug, as tedious as possible and with as much login time, regardless if is spent afk waiting for a rare spawn or travelling on a flightpath. No real connection with the number of people actually playing. The less playing, the more hours in game have to be squeezed from ones left, and is noticeable at every step.Comment by yoDarnellIf you check the Shop section at Blizzard launcher, Shadowlands release is now at 31.12. 2020 or sooner.Comment by cronogoldIf you check the Shop section at Blizzard launcher, Shadowlands release is now at 31.12. 2020 or sooner.Comment by Archimtiros"monthly annual users (MAU) " is the fancy term that translates into making the game into a slug, as tedious as possible and with as much login time, regardless if is spent afk waiting for a rare spawn or travelling on a flightpath. No real connection with the number of people actually playing. The less playing, the more hours in game have to be squeezed from ones left, and is noticeable at every step.Comment by LomackBoth Legion and BFA were August releases, so that is a good bet. Though Pandara was September and Draenor & Lich King were both November. I have no problem with them shooting for August, and pushing it a month if it helps them get Shadowlands right.Comment by Lionhearte0Blizzard in early 2019: We have no major releases planned this year

*Classic WoW launches in 2019*

Blizzard in early 2020: Our major release Classic WoW is doing phenomenal!Comment by KrawuCongratulations Blizzard. It's certainly more than you deserve.Comment by xFlowTekBoth Legion and BFA were August releases, so that is a good bet. Though Pandara was September and Draenor & Lich King were both November. I have no problem with them shooting for August, and pushing it a month if it helps them get Shadowlands right.Comment by Boatermilkthis calls for some celebratory layoffsComment by Myzou...people are shocked Shadowlands is second half of 2020? O_o

8.3 just came out in January. There's 4-5 months of beta every single time. It was always second half no matter what. Alpha I assume will start soon, then beta probably in April.Comment by DakushisaiBlizzard in early 2019: We have no major releases planned this year

*Classic WoW launches in 2019*

Blizzard in early 2020: Our major release Classic WoW is doing phenomenal!Comment by grayshirtwith a double-digit increase when compared to Black Ops 4.Comment by sharealittle950"monthly annual users (MAU) " is the fancy term that translates into making the game into a slug, as tedious as possible and with as much login time, regardless if is spent afk waiting for a rare spawn or travelling on a flightpath. No real connection with the number of people actually playing. The less playing, the more hours in game have to be squeezed from ones left, and is noticeable at every step.Comment by Morgomirif one person logs in once in a month they are an MAU doesn't matter how many times they log on or for how longComment by kovu401A bunch of talented folks surrounded by snakes in suits.

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Activision Blizzard Q4 2019 Earnings Call - Diablo Immortal Testing Mid-2020, WoW Classic Success

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