As I've discussed in this space before, Blizzard presents their revenue on both a GAAP and a non-GAAP basis. GAAP stands for Generally Accepted Accounting Principles. GAAP requires that Blizzard record their revenue when it is actually earned and not necessarily when they collect the cash.
As a quick example, let's look at the WoW Token. On a non-GAAP basis, as soon as Blizzard sells that WoW Token to someone, they are counting that $20 as non-GAAP revenue as soon as they have your cash in hand. But on a GAAP basis, they aren't allowed to record the cost of that Token as revenue until someone actually uses it for game time.
Similar differences occur if you are pre-ordering a product like Legion, or if you are paying for your subscription in 6 month blocks.
Back in May, the U.S. Securities and Exchange Commission (SEC), which regulates public companies like Activision-Blizzard that trade on U.S. stock exchanges, issued new rules and regulation on the use of non-GAAP measures by public companies.
In response to those new rules, Blizzard announced that they will no longer be disclosing non-GAAP revenue in their earnings releases. Only GAAP revenue.
They said they will continue to use non-GAAP revenue internally to measure their performance and incentivize their people, but just won't continue to disclose it externally.
Here is a link to a presentation that Blizzard used on the call on Friday that explains the differences:
So what does this mean for those of us that follow Blizzard closely. Very little. As you can tell from the presentation, while they won't have an actual line on their earnings release for non-GAAP revenue, all of the information that you need to calculate that number will still be there and easily available, so we'll continue to calculate it and talk about it in the analysis that I do every quarter on their releases.