Activision Blizzard Reports Record Earnings and Revenues for Q4 of 2020
April 27, 2023
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According to their financial report, Activision Blizzard ($NASDAQ:ATVI)’s Non-GAAP EPS of $0.60 exceeded expectations by $0.08, while net bookings of $1.86B surpassed estimates by a whopping $80M. It has a portfolio of some of the most popular gaming franchises like Call of Duty, Overwatch, World of Warcraft, Candy Crush and more. Through these franchises, Activision Blizzard has established itself as a leader in interactive entertainment, with a loyal fanbase that spans the globe. With a diversified portfolio of products and services and the ability to reach new audiences and markets, Activision Blizzard is well-positioned to continue to deliver strong financial performance in the future.
Market Price
The company opened at $79.1 and closed at $76.8, a plunge of 11.4% from the previous closing price of 86.7. The company attributed the decrease to its weak performance in the console games sector, as well as its slower-than-expected growth in mobile gaming revenues. It also stated that it was facing headwinds from increased competition and growth in digital subscription services such as Microsoft’s Xbox Game Pass and Sony’s PlayStation Plus.
The company’s strong performance in the quarter was driven largely by its popular titles such as Call of Duty: Warzone and World of Warcraft Shadowlands. Its results demonstrate its ability to be resilient in the face of adversity, and the company is optimistic that it will be able to continue to grow in the coming year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Activision Blizzard. More…
| Total Revenues | Net Income | Net Margin |
| 7.53k | 1.51k | 20.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Activision Blizzard. More…
| Operations | Investing | Financing |
| 2.22k | -4.99k | -534 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Activision Blizzard. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.38k | 8.14k | 24.54 |
Key Ratios Snapshot
Some of the financial key ratios for Activision Blizzard are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.1% | -1.4% | 24.6% |
| FCF Margin | ROE | ROA |
| 28.3% | 6.1% | 4.2% |
Analysis
GoodWhale recently conducted an analysis on ACTIVISION BLIZZARD‘s wellbeing. With the help of our Star Chart, we found that the company has a high health score of 10/10 with regard to its cashflows and debt, allowing it to safely ride out any crisis without the risk of bankruptcy. Additionally, ACTIVISION BLIZZARD is strong in asset, dividend, and profitability, but weak in growth. After further analyzing the data, we classified the company as a ‘cow’, which we conclude has the track record of paying out consistent and sustainable dividends. With such qualities, investors who are looking for stable, long-term returns may be interested in investing in ACTIVISION BLIZZARD. Investing in a ‘cow’ can provide investors with a steady stream of income over time. Furthermore, since the company is strong in asset, dividend, and profitability, investors can trust that their investments are safe and secure. More…
Peers
The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.
– Take-Two Interactive Software Inc ($NASDAQ:TTWO)
Take-Two Interactive Software, Inc. is a holding company, which engages in the provision of entertainment products and services. It operates through the following segments: Publishing, Distribution, and Other. The Publishing segment refers to the development, marketing, and sale of software products and content through physical retail, digital download, online platforms, and cloud streaming services. The Distribution segment comprises of the third-party distribution of physical retail products and digital downloads of games and add-on content. The Other segment covers licensing and management fees, royalties, and other non-operating income. The company was founded by Ryan Brant and Jeffrey D. Lapin on September 24, 1993 and is headquartered in New York, NY.
– Electronic Arts Inc ($NASDAQ:EA)
Electronic Arts Inc is a leading global interactive entertainment software company. The Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
As of 2022, Electronic Arts Inc has a market cap of 35.66B and a Return on Equity of 10.3%. The company is a leading global interactive entertainment software company and develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
Summary
Despite these impressive figures, the company’s stock price dropped on the same day of the release. Additionally, margins have been decreasing over the past two years. Although Activision Blizzard has traditionally been a leader in the gaming industry, investors are uncertain of the company’s ability to maintain its strong performance in the long-term. As such, investors are advised to keep a close eye on trends affecting the gaming industry, such as technological developments and increasing competition, in order to make informed decisions on investing in Activision Blizzard.
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