Earnings Results: Activision Blizzard stock rises as results top Street view

Revenue rose to $2.3 billion from $1.93 billion in the year-ago quarter, while bookings declined to $1.92 billion from $2.08 billion last year. Bookings represent the value of digital products and services sold during a quarter, but part of the revenue from those purchases is often recognized in future quarters.

Activision said adjusted earnings, which exclude share-based compensation expenses and other items, rose to $1.20 a share from 81 cents a share in the year-ago period.

Analysts had forecast adjusted earnings of 76 cents a share on revenue of $1.89 billion and bookings of $1.91 billion. Shares rose 3.4% after hours, following a 3.5% decline in the regular session to close at $79.83.

Activision Blizzard has had to navigate accusations of turning a blind eye to years of sexual harassment and bias amid a lawsuit filed by the California Department of Fair Employment and Housing. The Santa Monica, Calif.-based company announced that Jen Oneal and Mike Ybarra are now co-leaders of Blizzard Entertainment earlier Tuesday.

“With respect to our financial performance, we are pleased that the company continued to deliver strong results in the second quarter, and we are raising our outlook for the year,” said Bobby Kotick, Activision Blizzard’s chief executive, in a statement. “We remain intensely focused on the well-being of our employees and we are committed to doing everything possible to ensure that our company has a welcoming, supportive and safe environment where all of our team members can thrive.”

Activision Blizzard is well-known for videogames like “Call of Duty,” which serves the traditional console and PC market with “Black Ops — Cold War” and “Modern Warfare” titles, and has a free-to-play “Warzone” battle-royale option similar to Epic Games’ “Fortnite.” All of those options are available on mobile platforms.

Read: Videogames entered the mainstream for good in the pandemic, but the industry faces a rough transition

Going forward, Activision Blizzard said it expects adjusted earnings of 75 cents a share on revenue of $1.97 billion and bookings of $1.85 billion for the third quarter, and $3.54 a share on revenue of $8.52 billion and bookings of $8.65 billion for the year.

Analysts estimate earnings of 75 cents a share on revenue of $1.8 billion and bookings of $1.89 billion for the third quarter, and earnings of $3.76 a share on revenue of $8.77 billion and bookings of $8.76 billion for the year.

Take-Two Interactive Inc.
TTWO,
-7.71%
reported earnings on Monday, topping Wall Street estimates while pushing out the release date for some games, and shares dropped. Electronic Arts Inc.
EA,
-2.99%
and Zynga Inc.
ZNGA,
-1.89%
report on Wednesday and Thursday, respectively.