Activision Blizzard (ATVI 53.30, +0.20) has added 0.4% in pre-market after reporting first quarter results. The pre-market uptick puts the stock on track to challenge its intraday record high of $53.39 that was registered on Tuesday.
The video game developer and publisher reported first quarter earnings of $0.56 per share, which was well ahead of its guidance for earnings of $0.25 per share. Revenue grew 31.7% year-over-year to $1.20 billion, which was ahead of market expectations.
Monthly Active Users totaled 431 million during the first quarter. The company saw continued growth in Blizzard's online player community, which jumped 58.0% year-over-year to a record of 41 million. The company has enjoyed strong engagement from Overwatch players even though the game was released nearly a year ago. As a result, Overwatch is the eight billion-dollar franchise in the company's portfolio.
Strength in the Blizzard unit was partially offset by a decline in Activision's Monthly Active Users (to 48 million), which took place due to a soft spot in the company's release cycle. Call of Duty: WWII and Destiny 2 will be released in the fall.
King Monthly Active Users also declined, but per-user engagement and investment increased.
Operating margin decreased to 28.56% from 31.68%.
Looking ahead, Activision Blizzard expects to generate second quarter earnings of $0.15 per share on revenue of $1.20 billion. Full-year earnings are expected to hit $0.88 per share on revenue of $6.33 billion.