May 8, 2018

Electronic Arts Reports Q4 FY18 and Full Year FY18 Financial Results

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Electronic Arts Inc. (NASDAQ:EA) today announced preliminary financial results for its fourth fiscal quarter and fiscal year ended March 31, 2018.

"Fiscal 2018 was a year of strong growth and continued transformation for Electronic Arts, as we expanded the reach of our leading franchises like FIFA, Battlefield and The Sims to more players across more platforms and geographies," said Chief Executive Officer Andrew Wilson. "In the year ahead, we will expand the world of play with amazing new experiences and new IP, more competition, and industry-leading subscription programs. There has never been a more exciting time to be engaging and entertaining global communities."

"Electronic Arts had another record year," said COO and CFO Blake Jorgensen. "Our success is driven by the way we have changed, and continue to change, our relationship with players. They want more depth in their favorite games, and fresh content that can hold their attention year-round. This has made our business much more stable and enabled us to deliver a dependable and growing cash flow to investors."

News and ongoing updates regarding EA and its games are available on EA's blog at www.ea.com/news.

Selected Operating Highlights and Metrics

  • Digital net bookings* was $3.538 billion for fiscal 2018, up 17% year-over-year and represents 68% of total net bookings.
  • The EA SPORTS™ franchises grew to nearly 90 million players on current generation consoles life to date.
  • Nearly 18 million players engaged in competitive gaming across FIFA 18 and Madden NFL 18, up more than 75% year-over-year.
  • The Battlefield™ community, across current generation consoles and PC HD, now has more than 54 million players life to date.
  • The Sims™ community had more than 80 million Sims players across PC and mobile in fiscal 2018.

* Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games and, for periods after the fourth quarter of fiscal 2018, mobile platform fees.

Selected Financial Highlights and Metrics

All financial measures are presented on a GAAP basis.

  • Net cash provided by operating activities was $615 million for the fourth quarter and $1.692 billion for the fiscal year.
  • EA repurchased 1.2 million shares for $148 million during the quarter and 5.3 million shares for $601 million during the fiscal year.
  • EA announced a new $2.4 billion, two-year stock repurchase program.

Quarterly Financial Highlights

  Three Months Ended
March 31,
2018   2017
(in $ millions, except per share amounts)
Digital net revenue 1,102 934
Packaged goods and other net revenue 480 593
Total net revenue 1,582 1,527
 
Net income 607 566
Diluted earnings per share 1.95 1.81
 
Operating cash flow 615 437*
 
Value of shares repurchased 148 125
Number of shares repurchased 1.2 1.5
*At the beginning of fiscal 2018, EA adopted FASB ASU 2016-09, related to stock-based compensation. Operating cash flow for the three months ended March 31, 2017 has been recast to reflect the impact of this standard.

While EA no longer reports certain non-GAAP financial measures, the following GAAP-based financial data and tax rate of 21% was used internally by company management to adjust its fiscal 2018 GAAP results in order to assess EA's operating results:

  Three Months Ended March 31, 2018
  GAAP-Based Financial Data
(in $ millions)

 

 

  Change in  

 

 

 

deferred net

 

 

revenue

Statement

Acquisition-

(online-

of

related

enabled

Stock-based

Operations

expenses

games)

compensation

Total net revenue 1,582 - (327) -
Cost of revenue 233 (1) - (1)
Gross profit 1,349 1 (327) 1
Total operating expenses 596 (5) - (68)
Operating income 753 6 (327) 69
Interest and other income, net 1 - - -
Income before provision for income taxes 754 6 (327) 69
Number of shares used in computation:
Diluted 311

For more information about the nature of the GAAP-based financial data, please refer to EA's Form 10-Q for the fiscal quarter ended December 31, 2017.

Fiscal Year Financial Highlights

  Twelve Months Ended
March 31,
2018   2017
(in $ millions, except per share amounts)
Digital net revenue 3,450 2,874
Packaged goods and other net revenue 1,700 1,971
Total net revenue 5,150 4,845
 
Net income 1,043* 967
Diluted earnings per share 3.34* 3.08
 
 
Operating cash flow 1,692 1,578**
 
Value of shares repurchased 601 508
Number of shares repurchased 5.3 6.5
*During the twelve months ended March 31, 2018, EA recognized $235 million of incremental income tax expense, or approximately $0.75 per share, due to the application of the Tax Cuts and Jobs Act.
**At the beginning of fiscal 2018, EA adopted FASB ASU 2016-09, related to stock-based compensation. Operating cash flow for the twelve months ended March 31, 2017 has been recast to reflect the impact of this standard.

While EA no longer reports certain non-GAAP financial measures, the following GAAP-based financial data and tax rate of 21% was used internally by company management to adjust its fiscal 2018 GAAP results in order to assess EA's operating results:

  Twelve Months Ended March 31, 2018
  GAAP-Based Financial Data
(in $ millions)

 

 

  Change in  

 

 

 

deferred net

 

 

revenue

Statement

Acquisition-

(online-

of

related

enabled

Stock-based

Operations

expenses

games)

compensation

Total net revenue 5,150 - 30 -
Cost of revenue 1,277 (2) - (3)
Gross profit 3,873 2 30 3
Total operating expenses 2,439 (9) - (239)
Operating income 1,434 11 30 242
Interest and other income, net 15 - - -
Income before provision for income taxes 1,449 11 30 242
Number of shares used in computation:
Diluted 312

For more information about the nature of the GAAP-based financial data, please refer to EA's Form 10-Q for the fiscal quarter ended December 31, 2017.

Operating Metric

The following is a calculation of our total net bookings for the periods presented:

  Three Months Ended   Twelve Months Ended
March 31, March 31,
2018   2017 2018   2017
(in $ millions)

 

Total net revenue 1,582 1,527 5,150

 

4,845

Change in deferred net revenue (online-enabled games)

(327)

(435)

30

 

97

Net bookings 1,255 1,092 5,180

 

4,942

Stock Repurchase Program

EA has announced a new two-year program to repurchase up to $2.4 billion of EA's common stock. This program supersedes and replaces the stock repurchase program announced in May 2017.

Under the program, EA may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. EA is not obligated to repurchase any specific number of shares under the program and the repurchase program may be modified, suspended or discontinued at any time.

Business Outlook as of May 8, 2018

The following forward-looking statements reflect expectations as of May 8, 2018. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA's annual and quarterly SEC filings.

At the beginning of fiscal year 2019, EA adopted FASB ASU 2014-09 (Topic 606), Revenue from Contracts with Customers. Topic 606 significantly changes how EA recognizes and reports revenue; however, it will not materially impact net bookings, EA's operational metric. For more information about the adoption of Topic 606 and information with respect to mobile platform fees, please refer to the FAQ document, dated as of May 8, 2018, posted on our IR website. The business outlook for fiscal year 2019 has been prepared in accordance with Topic 606.

EA has also revised its long-term tax rate from 21% to 18% primarily due to changes resulting from recent tax legislation in the United States. EA uses this rate internally to assess operating results and plans for future periods.

Fiscal Year 2019 Expectations - Ending March 31, 2019

Financial metrics:

  • Net revenue is expected to be approximately $5.600 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $250 million.
    • Mobile platform fees are expected to be approximately ($300) million.
  • Net income is expected to be approximately $1.108 billion.
  • Diluted earnings per share is expected to be approximately $3.55.
  • Operating cash flow is expected to be approximately $1.825 billion.
  • The Company estimates a share count of 312 million for purposes of calculating fiscal year 2019 diluted earnings per share.

Operational metric:

  • Net bookings is expected to be approximately $5.550 billion.

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA's operating results and plan for future periods:

  Twelve Months Ending March 31, 2019
  GAAP-Based Financial Data

 

 

 

 

 

 

 

 

 

 

Change in

 

 

 

deferred net

 

revenue

Acquisition-

(online-

GAAP

related

enabled

Mobile platform

Stock-based

Guidance

expenses

games)

fees

compensation

(in $ millions)
Digital net revenue 4,150 - 200 (300) -
Packaged goods & other net revenue   1,450   -   50   -   -
Total net revenue   5,600   -   250   (300)   -
Cost of revenue 1,581 (5) - (300) (1)
Operating expense 2,774 (15) - - (329)
Income before provision for income taxes 1,245 20 250 - 330
Net income 1,108
Number of shares used in computation:
Diluted shares 312

First Quarter Fiscal Year 2019 Expectations - Ending June 30, 2018

Financial metrics:

  • Net revenue is expected to be approximately $1.080 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately ($300) million.
    • Mobile platform fees are expected to be approximately ($60) million.
  • Net income is expected to be approximately $200 million.
  • Diluted earnings per share is expected to be approximately $0.64.
  • The Company estimates a share count of 311 million for purposes of calculating first quarter fiscal year 2019 diluted earnings per share.

Operational metric:

  • Net bookings is expected to be approximately $720 million.

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA's operating results and plan for future periods:

  Three Months Ending June 30, 2018
  GAAP-Based Financial Data

 

 

 

 

 

 

 

 

 

Change in

 

Acquisition-

deferred net

Mobile

GAAP

related

revenue (online-

platform

Stock-based

Guidance

expenses

enabled games)

fees

compensation

(in $ millions)                    
Total net revenue   1,080   -   (300)   (60)   -
Cost of revenue 226 (1) - (60) -
Operating expense 634 (4) - - (75)
Income before provision for income taxes 220 5 (300) - 75
Net income 200
Number of shares used in computation:
Diluted shares 311

For more information about the nature of the GAAP-based financial data, please refer to EA's Form 10-Q for the fiscal quarter ended December 31, 2017. For more information about mobile platform fees, please refer to the FAQ document dated May 8, 2018 posted on our IR Website.

Conference Call and Supporting Documents

Electronic Arts will host a conference call on May 8, 2018 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2018 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number 844-215-4106 (domestic) or 918-534-8313 (international), using the password "EA" or via webcast at EA's IR Website at http://ir.ea.com.

EA has posted a slide presentation and a financial model of EA's historical results and guidance on EA's IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA's IR Website.

A dial-in replay of the conference call will be available until May 22, 2018 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 9267936. An audio webcast replay of the conference call will be available for one year on EA's IR Website.

Forward-Looking Statements

Some statements set forth in this release, including the information relating to EA's fiscal 2019 expectations under the heading "Business Outlook as of May 8, 2018," and other information regarding EA's fiscal 2019 expectations contain forward-looking statements that are subject to change. Statements including words such as "anticipate," "believe," "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements.

Some of the factors which could cause the Company's results to differ materially from its expectations include the following: sales of the Company's titles; the Company's ability to develop and support digital products and services, including managing online security and privacy; the Company's ability to manage expenses; the competition in the interactive entertainment industry; the effectiveness of the Company's sales and marketing programs; timely development and release of Electronic Arts' products; the Company's ability to realize the anticipated benefits of acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company's ability to predict consumer preferences among competing platforms; the Company's ability to develop and implement new technology; foreign currency exchange rate fluctuations; general economic conditions; and other factors described in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2017.

These forward-looking statements are current as of May 8, 2018. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.

While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2018. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2018.

About Electronic Arts

Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. EA has more than 300 million registered players around the world.

In fiscal year 2018, EA posted GAAP net revenue of $5.2 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as The Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Need for Speed™, Dragon Age™ and Plants vs. Zombies™. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, The Sims, Need for Speed, Dragon Age, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL and FIFA are the property of their respective owners and used with permission.

 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except share per data)
       

Three Months Ended

March 31,

Twelve Months Ended

March 31,

2018 2017 2018 2017
Net revenue
Product 757 887 2,586 2,640
Service and other 825 640   2,564 2,205  
Total net revenue 1,582 1,527 5,150 4,845
Cost of revenue
Product 106 97 822 893
Service and other 127 105   455 405  
Total cost of revenue 233 202   1,277 1,298  
Gross profit 1,349 1,325 3,873 3,547
Operating expenses:
Research and development 335 335 1,320 1,205
Marketing and sales 130 162 641 673
General and administrative 126 110 469 439
Amortization of intangibles 5 1   9 6  
Total operating expenses 596 608   2,439 2,323  
Operating income 753 717 1,434 1,224
Interest and other income (expense), net 1 (1 ) 15 (14 )
Income before provision for income taxes 754 716 1,449 1,210
Provision for income taxes 147 150   406 243  
Net income 607 566   1,043 967  
Earnings per share
Basic 1.98 1.84 3.39 3.19
Diluted 1.95 1.81 3.34 3.08
Number of shares used in computation
Basic 307 308 308 303
Diluted 311 312 312 314
 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance for the three months ended March 31, 2018 plus a comparison to the actuals for the three months ended March 31, 2017.

 
  Three Months Ended March 31,
2018
Guidance
  Variance   2018
Actuals
  2017
Actuals
Net revenue
Net revenue 1,532 50 1,582 1,527
GAAP-based financial data
Change in deferred net revenue (online-enabled games) (307 ) (20 ) (327 ) (435 )
Cost of revenue
Cost of revenue 234 (1 ) 233 202
GAAP-based financial data
Acquisition-related expenses (1 ) (1 )
Stock-based compensation (1 ) (1 ) (1 )
Operating expenses
Operating expenses 619 (23 ) 596 608
GAAP-based financial data
Acquisition-related expenses (3 ) (2 ) (5 ) (1 )
Stock-based compensation (74 ) 6 (68 ) (51 )
Income before tax
Income before tax 677 77 754 716
GAAP-based financial data
Acquisition-related expenses 4 2 6 1
Change in deferred net revenue (online-enabled games) (307 ) (20 ) (327 ) (435 )
Stock-based compensation 75 (6 ) 69 52
Tax rate used for management reporting 21

 %

21

 %

21

 %

Earnings per share
Basic 1.89 0.09 1.98 1.84
Diluted 1.86 0.09 1.95 1.81
Number of shares
Basic 307 307 308
Diluted 311 311 312
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
   
March 31, 2018 March 31, 20171
ASSETS
Current assets:
Cash and cash equivalents 4,258 2,565
Short-term investments 1,073 1,967
Receivables, net of allowances of $165 and $145, respectively 385 359
Other current assets 288   308  
Total current assets 6,004 5,199
Property and equipment, net 453 434
Goodwill 1,883 1,707
Acquisition-related intangibles, net 71 8
Deferred income taxes, net 84 286
Other assets 89   84  
TOTAL ASSETS 8,584   7,718  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 48 87
Accrued and other current liabilities 821 789
Deferred net revenue (online-enabled games) 1,622   1,539  
Total current liabilities 2,491 2,415
Senior notes, net 992 990
Income tax obligations 250 104
Deferred income taxes, net 1 1
Other liabilities 255   148  
Total liabilities 3,989 3,658
 
Stockholders' equity:
Common stock 3 3
Additional paid-in capital 657 1,049
Retained earnings 4,062 3,027
Accumulated other comprehensive loss (127 ) (19 )
Total stockholders' equity 4,595   4,060  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 8,584   7,718  
1 Derived from audited consolidated financial statements.
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
       
Three Months Ended
March 31,
  Twelve Months Ended
March 31,
2018 20172 2018 2017 2
OPERATING ACTIVITIES
Net income 607 566 1,043 967
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion 39 32 136 172
Stock-based compensation 69 52 242 196
Change in assets and liabilities
Receivables, net 502 231 (25 ) (136 )
Other assets (69 ) (37 ) 10 3
Accounts payable (60 ) 11 (44 ) 5
Accrued and other liabilities (222 ) (86 ) 43 190
Deferred income taxes, net 74 100 204 100
Deferred net revenue (online-enabled games) (325 ) (432 ) 83   81  
Net cash provided by operating activities 615   437   1,692   1,578  
INVESTING ACTIVITIES
Capital expenditures (20 ) (29 ) (107 ) (123 )
Proceeds from maturities and sales of short-term investments 1,510 313 3,166 1,281
Purchase of short-term investments (275 ) (545 ) (2,287 ) (1,917 )
Acquisition, net of cash acquired     (150 )  
Net cash provided by (used in) investing activities 1,215   (261 ) 622   (759 )
FINANCING ACTIVITIES
Payment of convertible notes (163 )
Proceeds from issuance of common stock 21 39 78 72
Cash paid to taxing authorities for shares withheld from employees (8 ) (18 ) (120 ) (130 )
Repurchase and retirement of common stock (148 ) (125 ) (601 ) (508 )
Net cash used in financing activities (135 ) (104 ) (643 ) (729 )
Effect of foreign exchange on cash and cash equivalents (3 ) 10   22   (18 )
Increase in cash and cash equivalents 1,692 82 1,693 72
Beginning cash and cash equivalents 2,566   2,483   2,565   2,493  
Ending cash and cash equivalents 4,258   2,565   4,258   2,565  
2 Operating and financing cash flow figures for the three and twelve months ended March 31, 2017 have been recast to reflect the impact of ASU 2016-09 which EA adopted at the beginning of FY18.
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
           
Q4
FY17
Q1
FY18
Q2
FY18
Q3
FY18
Q4
FY18
YOY %
Change
Net revenue
Net revenue 1,527 1,449 959 1,160 1,582 4 %
GAAP-based financial data
Change in deferred net revenue (online-enabled games)3 (435 ) (674 ) 220 811 (327 )
Gross profit
Gross profit 1,325 1,295 570 659 1,349 2 %
GAAP-based financial data
Acquisition-related expenses 1 1
Change in deferred net revenue (online-enabled games)3 (435 ) (674 ) 220 811 (327 )
Stock-based compensation 1 1 1 1
Gross profit (as a % of net revenue) 87 % 89 % 59 % 57 % 85 %
Operating income (loss)
Operating income (loss) 717 743 (41

)

(21

)

753 5 %
GAAP-based financial data
Acquisition-related expenses 1 1 2 2 6
Change in deferred net revenue (online-enabled games)3 (435 ) (674 ) 220 811 (327 )
Stock-based compensation 52 48 62 63 69
Operating income (loss) (as a % of net revenue) 47 % 51 % (4 %) (2 %) 48 %
Net income (loss)
Net income (loss) 566 644 (22 ) (186 ) 607 7 %
GAAP-based financial data
Acquisition-related expenses 1 1 2 2 6
Change in deferred net revenue (online-enabled games)3 (435 ) (674 ) 220 811 (327 )
Stock-based compensation 52 48 62 63 69
Tax rate used for management reporting 21 % 21 % 21 % 21 % 21 %
Net income (loss) (as a % of net revenue) 37 % 44 % (2 %) (16 %) 38 %
Diluted earnings (loss) per share 1.81 2.06 (0.07) (0.60) 1.95 8 %
Number of diluted shares used in computation
Basic 308 309 309 308 307
Diluted 312 313 309 308 311
Anti-dilutive shares excluded for loss position4 3 3
3

The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations due to the impact of unrecognized gains/losses on cash flow hedges.

 
4 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable through stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive.
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
           
Q4
FY17
Q1
FY18
Q2
FY18
Q3
FY18
Q4
FY18
YOY %
Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by geography
North America 644 611 427 452 600 (7 %)
International 883   838   532   708   982   11 %
Total net revenue 1,527   1,449   959   1,160   1,582   4 %
North America (198 ) (287 ) 59 313 (113 )
International (237 ) (387 ) 161   498   (214 )
Change in deferred net revenue (online-enabled games)3 (435 ) (674 ) 220   811   (327 )
North America 42 % 42 % 45 % 39 % 38 %
International 58 % 58 % 55 % 61 % 62 %
Total net revenue % 100 % 100 % 100 % 100 % 100 %
 
Net revenue by composition
Full game downloads 259 209 123 143 232 (10 %)
Live services 510 501 408 476 698 37 %
Mobile 165   169   158   161   172   4 %
Total digital 934   879   689   780   1,102   18 %
Packaged goods and other 593   570   270   380   480   (19 %)
Total net revenue 1,527   1,449   959   1,160   1,582   4 %
Full game downloads (67 ) (98 ) (4 ) 117 (39 )
Live services 8 (81 ) (98 ) 311 (19 )
Mobile 10   (19 ) (8 ) 22   4  
Total digital (49 ) (198 ) (110 ) 450   (54 )
Packaged goods and other (386 ) (476 ) 330   361   (273 )
Change in deferred net revenue (online-enabled games)3 (435 ) (674 ) 220   811   (327 )
Full game downloads 17 % 14 % 13 % 12 % 15 %
Live services 33 % 35 % 43 % 41 % 44 %
Mobile 11 % 12 % 16 % 14 % 11 %
Total digital 61 % 61 % 72 % 67 % 70 %
Packaged goods and other 39 % 39 % 28 % 33 % 30 %
Total net revenue % 100 % 100 % 100 % 100 % 100 %
3

The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations due to the impact of unrecognized gains/losses on cash flow hedges.

 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
           
Q4
FY17
Q1
FY18
Q2
FY18
Q3
FY18
Q4
FY18
YOY %
Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by platform
Xbox One, PLAYSTATION 4, Switch 1,039 974 569 785 1,167 12 %
Other consoles 70   60   26   25   29   (59 %)
Total consoles 1,109 1,034 595 810 1,196 8 %
PC / Browser 246 240 196 181 210 (15 %)
Mobile 165 171 162 166 173 5 %
Other 7   4   6   3   3   (57 %)
Total net revenue 1,527   1,449   959   1,160   1,582   4 %
Xbox One, PLAYSTATION 4, Switch (375 ) (548 ) 244 705 (298 )
Other consoles (40 ) (42 ) 14   5   (15 )
Total consoles (415 ) (590 ) 258 710 (313 )
PC / Browser (30 ) (61 ) (30 ) 83 (20 )
Mobile 9 (20 ) (7 ) 21 5
Other 1   (3 ) (1 ) (3 ) 1  
Change in deferred net revenue (online-enabled games)3 (435 ) (674 ) 220   811   (327 )
Xbox One, PLAYSTATION 4, Switch 68 % 67 % 59 % 68 % 74 %
Other consoles 5 % 4 % 3 % 2 % 2 %
Total consoles 73 % 71 % 62 % 70 % 76 %
PC / Browser 16 % 17 % 20 % 16 % 13 %
Mobile 11 % 12 % 17 % 14 % 11 %
Other     1 %    
Total net revenue % 100 % 100 % 100 % 100 % 100 %
3

The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations due to the impact of unrecognized gains/losses on cash flow hedges.

 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
           
Q4
FY17
Q1
FY18
Q2
FY18
Q3
FY18
Q4
FY18
YOY %
Change
CASH FLOW DATA
Operating cash flow5 437 176 52 849 615 41 %
Operating cash flow5 - TTM 1,578 1,872 1,802 1,514 1,692 7 %
Capital expenditures 29 33 30 24 20 (31 %)
Capital expenditures - TTM 123 116 117 116 107 (13 %)
Repurchase and retirement of common stock 125 150 153 150 148 18 %
DEPRECIATION
Depreciation expense 29 29 30 30 31 7 %
BALANCE SHEET DATA
Cash and cash equivalents 2,565 2,248 2,067 2,566 4,258
Short-term investments 1,967 2,222 2,288 2,318 1,073
Cash and cash equivalents, and short-term investments 4,532 4,470 4,355 4,884 5,331 18 %
Receivables, net 359 222 812 886 385 7 %
STOCK-BASED COMPENSATION
Cost of revenue 1 1 1 1
Research and development 28 28 36 38 44
Marketing and sales 8 7 9 8 8
General and administrative 15 12 16 17 16
Total stock-based compensation 52 48 62 63 69
5 Operating cash flow has been recast to reflect the impact of ASU 2016-09 which EA adopted at the beginning of FY18.

Electronic Arts Inc.
Chris Evenden, 650-628-0255
Vice President, Investor Relations
cevenden@ea.com
or
John Reseburg, 650-628-3601
Vice President, Corporate Communications
jreseburg@ea.com

Source: Electronic Arts Inc.

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