In today's video I'm going to discuss Activision's (ATVI 0.35%) first-quarter earnings and talk about its future. In a previous video I shared my thoughts on the company and told you why I was buying it.
The company reported first-quarter revenue of $2.07 billion versus the $1.79 billion expected, and earnings per share of $0.84 versus the $0.71 expected.
Revenue for the Activision segment (home to Call of Duty) was up 72% year over year. The company also reported a record 150 million monthly active users (MAUs) playing Call of Duty in the first quarter.
Blizzard, the smallest segment, home to Warcraft, Diablo, and Overwatch, saw 7% year-over-year revenue growth. The segment had 27 million MAUs for the quarter.
Lastly, the King business, home to mobile games like Candy Crush and the new Crash Bandicoot: On the Run! (which has seen over 30 million downloads to date), continues to perform well. The segment's revenue is up 22% year over year. More impressive is the fact that MAUs for the segment were up to 258 million. King delivered 70% year-over-year growth in advertising net bookings in Q1.
The company expects non-GAAP earnings per share of $0.91 on revenue of $2.135 billion for Q2 2021. It's working on new games such as Diablo 4, Overwatch 2, and multiple World of Warcraft mobile titles.
The future looks bright for Activision Blizzard and the overall gaming industry. Activision holds a lot of quality IP in its inventory, and it's finally putting it to work.
For my full insights, please watch the video below.
*Stock prices used were the closing prices of May 4, 2021. The video was published on May 5, 2021.