Activision Blizzard Q2 Earnings: Here's A Rundown Of The Results

Activision Blizzard Inc ATVI announced its second-quarter financial results Monday after the bell. Here's a look at how the video game company fared during the quarter.

What Happened: Activision reported second-quarter revenue of $1.644 billion, which was down from $2.3 billion year-over-year. Quarterly revenue came in above the estimate of $1.58 billion, according to data from Benzinga Pro.

Activision reported quarterly adjusted earnings of 48 cents per share, which was in line with average analyst estimates.

The company said operating margins were 21% in the quarter. Cash and short-term investments totaled $10.8 billion at the end of the quarter, with a net cash position around $7.1 billion.

"Even in a challenging economic environment, with so many companies announcing hiring freezes and layoffs, our development headcount grew 25% year-over-year as of the end of the second quarter," said Bobby Kotick, CEO of Activision Blizzard.

What's Next: Activision said its planning several new releases across its established franchises in the second half of the year, with "Diablo IV" expected to be released in 2023. 

Releases planned for the second half of the year include "Call of Duty: Modern Warfare II," a new "Call of Duty: Warzone 2.0" experience, "World of Warcraft: Wrath of the Lich King Classic," "World of Warcraft: Dragonflight" and "Overwatch 2."

"While the company remains cognizant of risks including those related to the labor market and economic conditions, and we still have significant execution ahead of us, we expect these releases to increase our global audience, deepen community engagement, and drive year-over-year growth in player investment in the fourth quarter and beyond," the company said.

Activision also highlighted Microsoft Corp's MSFT planned acquisition. Microsoft plans to acquire Activision for $95 per share in an all-cash transaction that is expected to close in Microsoft's fiscal year ending June 30, 2023.

ATVI Price Action: Activision has a 52-week high of $86.90 and a 52-week low of $61.99.

The stock up 0.3% in after hours at $80.82.

Photo: Tarcil Tarcil from Flickr.