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Press Release: Activision Blizzard Announces -9-

· 02/04/2021 16:14
Monthly Active Users(3) December March 31, 31, June 30, September December 2019 2020 2020 30, 2020 31, 2020 -------- ------- -------- --------- ---------- Activision 128 102 125 111 128 Blizzard 32 32 32 30 29 King 249 273 271 249 240 -------- ------- -------- --------- -------- Total MAUs 409 407 428 390 397 ======== ======= ======== ========= ========ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES Outlook for the Three Months Ending March 31, 2021 and Year Ending December 31, 2021 GAAP to Non-GAAP Reconciliation (Amounts in millions, except per share data) Outlook for the Outlook for the Three Months Ending Year Ending March 31, 2021 December 31, 2021 --------------------- --------------------- Net Revenues(1) $ 2,015 $ 8,225 Change in deferred revenues(2) $ (265) $ 225 Earnings Per Diluted Share (GAAP) $ 0.59 $ 2.83 Excluding the impact of: Share-based compensation(3) 0.25 0.43 Amortization of intangible assets(4) 0.01 0.01 Restructuring and related costs(5) 0.05 0.13 Income tax impacts from items above(6) (0.05) (0.06) --------------------- ------------------- Earnings Per Diluted Share (Non-GAAP) $ 0.84 $ 3.34 === ================ === ============== Net effect of deferred net revenues and related cost of revenues on Earnings Per Diluted Share(7) $ (0.19) $ 0.26 (1) Net Revenues represents the revenue outlook for both GAAP and Non-GAAP as they are measured the same. (2) Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online enabled products. (3) Reflects expenses related to share-based compensation. (4) Reflects amortization of intangible assets from purchase price accounting, including intangible assets from the acquisition of King. (5) Reflects our restructuring initiatives, primarily severance and other restructuring-related costs. (6) Reflects the income tax impacts associated with the above items. Due to the inherent uncertainties in share price and option exercise behavior, we do not generally forecast excess tax benefits or tax shortfalls. (7) Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online enabled products, including the effect of taxes. The per share adjustments and the GAAP and Non-GAAP earnings per share information are presented as calculated. Therefore, the sum of these measures, as presented, may differ due to the impact of rounding. ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES OPERATING METRICS (Amounts in millions) Net Bookings(1) Three Months Ended December 31, Year Ended December 31, ------------------------------------------ ------------------------------------------ $ Increase % Increase $ Increase % Increase 2020 2019 (Decrease) (Decrease) 2020 2019 (Decrease) (Decrease) ------ ------ ------------ ------------ ------ ------ ------------ ------------ Net bookings(1) $3,051 $2,708 $ 343 13% $8,419 $6,388 $ 2,031 32% In-game net bookings(2) 1,324 1,085 239 22 4,852 3,366 1,486 44net revenues $2,413 100% $1,986 100% $ 427 22 ===== === ==== ===== === ==== === ======= Change in deferred revenues(3) Americas $ 390 $ 425 EMEA(2) 220 238 Asia Pacific 28 59 ------ ------ Total changes in deferred revenues $ 638 $ 722 ===== ===== Years Ended ------------------------------------------------------------------ December 31, 2020 December 31, 2019 ------------------ ------------------ --- ----- % of % of $ Increase % Increase Amount Total(1) Amount Total(1) (Decrease) (Decrease) ------ ---------- ------ ---------- ------------ ------------ Net Revenues by Geographic Region Americas $4,434 55% $3,341 51% $ 1,093 33% EMEA(2) 2,680 33 2,239 35 441 20 Asia Pacific 972 12 909 14 63 7 ------ --- ----- ------ --- ----- ------------ Total consolidated net revenues $8,086 100% $6,489 100% $ 1,597 25 ===== === ==== ===== === ==== === ======= Change in deferred revenues(3) Americas $ 285 $ (44) EMEA(2) 59 (47) Asia Pacific (11) (10) ------ ------ Total changes in deferred revenues $ 333 $(101) ===== ===== (1) The percentages of total are presented as calculated. Therefore, the sum of these percentages, as presented, may differ due to the impact of rounding. (2) Net revenues from EMEA consist of the Europe, Middle East, and Africa geographic regions. (3) Reflects the net effect from deferral of revenues and (recognition) of deferred revenues on certain of our online enabled products. ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES EBITDA AND ADJUSTED EBITDA For the Trailing Twelve Months Ended December 31, 2020 (Amounts in millions) Trailing Twelve Months Ended March June 31, 30, September December December 31, 2020 2020 30, 2020 31, 2020 2020 ------ ---- ----------- ---------- ------------ GAAP Net Income $ 505 $580 $ 604 $ 508 $ 2,197 Interest and other expense (income), net 8 22 25 31 87 Loss on extinguishment of debt -- -- 31 -- 31 Provision for income taxes 99 147 118 55 419 Depreciation and amortization 62 43 46 45 197 ------ ---- ----------- ---------- ---------- EBITDA 674 792 824 639 2,931 Share-based compensation expense(1) 43 42 53 80 218 Restructuring and related costs(2) 23 6 9 55 94 ------ ---- ----------- ---------- ---------- Adjusted EBITDA $ 740 $840 $ 886 $ 774 $ 3,243 ===== === ======= === ===== ====== Change in deferred net revenues and related cost of revenues(3) $(171) $152 $ (150) $ 407 $ 238 (1) Includes expenses related to share-based compensation. (2) Reflects restructuring initiatives, primarily severance and other restructuring-related costs. (3) Reflects the net effect from deferral of revenues and (recognition) of deferred revenues, along with related cost of revenues, on certain of our online enabled products.

Trailing twelve months amounts are presented as calculated. Therefore, the sum of the four quarters, as presented, may differ due to the impact of rounding.

(1) We monitor net bookings as a key operating metric in evaluating the performance of our business as it enables an analysis of performance based on the timing of actual transactions with our customers, along with providing a more timely indication of trends in our operating results. Net bookings is 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.

(2) In-game net bookings primarily includes the net amount of downloadable content and microtransactions sold during the period, and is equal to in-game net revenues excluding the impact from deferrals.

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February 04, 2021 16:14 ET (21:14 GMT)