Average Monthly Active Users Drove Activision’s Digital Growth



Digital revenue rose 32% in 2015

In 2015, Activision’s (ATVI) GAAP (generally accepted accounting principles) digital revenue grew 32% YoY (year-over-year) to $2.5 billion from $1.9 billion in 2014. Digital revenue accounted for 54% of its total revenue in 2015—up from 43% in 2014.

In 4Q15, the average monthly active Activision users rose 20% YoY. Digital revenue grew 34%. Activision had ~80 million MAUs (monthly active users) at the end of 4Q15. CEO Bobby Kotick stated that the acquisitions of King Digital and Major League Gaming were essential to increasing the MAUs.

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Expedia’s stock rose due to strong guidance

Expedia (EXPE) released its 4Q15 results on February 10, 2016. The company reported mixed results. It missed analysts’ consensus estimates. However, its gross bookings saw tremendous growth. Expedia’s stock rose 2% during market hours on February 10, 2016. Moreover, its strong outlook for 2016 helped it consolidate its gains by rallying 9.6% on February 11.

This optimism seems to have rubbed off on Expedia’s peers. On February 10, 2016, Priceline (PCLN) rose by 4%, TripAdvisor (TRIP) rose by 0.5%, and Ctrip.com (CTRP) rose by 1%.

Twitter beat analysts’ estimates

Twitter beat analysts’ estimates for both its top and bottom lines. The company reported revenue of $710.4 million and non-GAAP diluted EPS of $0.16 in 4Q15.

However, the estimates for its revenue and EPS stood at $709.9 million and $0.12, respectively.

Social media company Twitter (TWTR) released its financials for 4Q15 on February 10, 2016. The advertisement revenue came in at $641 million—an increase of 48% YoY. The revenue from data licensing came in at $70 million—an increase of 48% YoY. At the end of 4Q15, Twitter’s active advertisers came in at 130,000—an increase of 90% YoY.

Activision accounts for 4.3% of the iShares North American Tech-Software ETF (IGV).


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