Common-Size Income Statement
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2008
- Debt to Equity since 2008
- Price to Earnings (P/E) since 2008
- Price to Operating Profit (P/OP) since 2008
- Price to Sales (P/S) since 2008
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Activision Blizzard Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Revenue Composition Trends
- Over the observed quarters, in-game, subscription, and other revenues consistently represented the majority of net revenues, fluctuating mostly between approximately 64% and 87%. Product sales showed a generally decreasing trend in proportion to net revenues, starting near 36% in early 2018 and dipping as low as around 13% to 20% in more recent quarters, with some moderate rebounds approaching 29% at times. This pattern indicates a shifting revenue mix favoring recurring or in-game monetization streams over direct product sales.
- Cost of Revenues
- Overall cost of revenues as a percentage of net revenues showed moderate volatility between roughly 24% and 34%. Product costs as a component of cost of revenues generally decreased during 2020 but showed some increases again towards late 2022. Both software royalties and amortization costs were a smaller portion, with occasional upticks. Game operations and distribution costs remained relatively stable, mostly ranging between 12% and 19%, without a clearly defined long-term trend.
- Gross Profit
- Gross profit margins remained robust, consistently above 65% and often approaching or exceeding 70%. The margin peaked around 75% during parts of 2020 and 2021, likely reflective of lower relative costs or favorable revenue mix during those periods. There is evidence of some margin contraction by the end of 2022 but still maintaining a strong majority of revenues.
- Operating Expenses
- Product development expenses fluctuated with some increases, notably reaching nearly 21% of net revenues in periods of 2022, suggesting elevated investment in product innovation or software development. Sales and marketing expenses hovered mostly between 10% and 18%, with notable spikes in the later periods of the data. General and administrative costs showed variability but generally remained between 6% and 15%, without a clear upward or downward trend. Restructuring and related costs appeared sporadically and at modest levels, sometimes negative or near zero, implying occasional cost adjustments but no sustained impact.
- Profitability Metrics
- Operating income as a percentage of net revenues varied significantly, between around 15% and 42%. Peaks in operating income percentage occurred primarily in mid-2021, indicating periods of strong operational efficiency or favorable revenue and cost dynamics. Income before tax followed a similar pattern but showed notable declines coinciding with increased interest expenses or other costs. Net income displayed parallel fluctuations, generally ranging from around 15% to over 38%, highlighting profitable quarters with some variability related to tax impacts and non-operating factors.
- Interest and Other Income/Expense
- Interest expense from debt emerges only in later quarters, increasing up to approximately 2.3% of net revenues, which may indicate incremental financing costs affecting profitability in recent periods. Other income or expense items fluctuated widely, occasionally contributing positively (e.g., over 7% in some quarters) or negatively; these variations introduced short-term influences on net profitability.
- Income Taxes
- Income tax expense showed variability, sometimes with tax benefits or positive expense figures, ranging approximately from -7% to +4% of net revenues. This variability suggests shifting effective tax rates or one-time tax effects impacting net income margins intermittently.
- Summary of Key Patterns
- The data illustrates a gradual strategic shift away from product sales toward more recurring revenue streams like in-game and subscription revenues. Cost structures have adjusted correspondingly, with gross profit margins remaining strong, though operating expenses, especially product development and sales and marketing, have experienced periods of increased intensity. Profitability has shown resilience but exhibits sensitivity to financing costs and tax effects over time. Overall, the financial profile reflects dynamic revenue composition and fluctuating expense management, resulting in variable but generally positive profitability outcomes.