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Introduction of Non-GAAP Operating Income and Non-GAAP Operating Margin Disclosure for Electronic Arts FAǪ

May 7, 2024


Beginning in FY25, Electronic Arts will provide enhanced disclosures of non-GAAP financial metrics, focusing on non-GAAP operating margin.


Ǫuestion 1: Why are you focusing on non-GAAP operating margin?

A: We believe that visibility into non-GAAP operating margin provides our investors with greater transparency about the impact of our strategy and future pipeline.

Historically, we provided GAAP-based financial data that investors can use for their own calculations. Beginning in Ǫ1 FY25, we will perform certain of these calculations in our external reporting.

Consistent with SEC guidance, we will not adjust financial metrics for the change in deferred net revenue associated with online-enabled games (“Change in Deferred Net Revenue”). We will continue to provide the impact of the Change in Deferred Net Revenue so that investors can continue to perform their own calculations if they wish to do so.

Ǫuestion 2: How will you report non-GAAP operating margin in FY25?

A: In our May 7th earnings remarks, we will provide financial guidance with respect to FY25 non- GAAP operating margin and growth expectations through FY27. We will provide actual results for full year FY24 in our Slide Presentation and Financial Model available on EA’s IR Website at http://ir.ea.com. Beginning with our July 30th report, we will provide quarterly actual results.

Ǫuestion 3: How is non-GAAP operating income calculated?

A: We begin with GAAP operating income and make certain adjustments. Currently, we adjust for three GAAP-based financial items: (1) acquisition-related expenses, (2) restructuring and related charges, and (3) stock-based compensation. We may consider whether we should adjust for other significant items that arise in the future.

Ǫuestion 4: How is non-GAAP operating margin calculated?

Non-GAAP Operating


Net Revenue


Non-GAAP Operating

Ǫuestion 5: Will I still be able to calculate Management Reporting financial measures?

A: Yes. EA will continue to provide the impact of the Change in Deferred Net Revenue so that investors can continue to perform their own calculations if they wish.

Non-GAAP Operating Margin


Impact of Change in
Deferred Net Revenue


Management Reporting
Operating Margin

Ǫuestion 6: Will you change the metrics in your compensation practices?

A: No. The management reporting non-GAAP metrics used to determine executive compensation, as detailed in our Proxy Statement, will not change.

Ǫuestion 7: Is anything changing about how EA calculates the financial data used to adjust GAAP financial measures?

A: No. The financial data EA management uses to adjust its GAAP-based financial measures, including the Change in Deferred Net Revenue, will continue to be calculated in the same way, consistent with EA’s historical practices.

For additional information with respect to Electronic Arts’ changes to external reporting, please refer to the reconciliations and additional disclosures in our Ǫ1 FY25 Earnings Slides and the calculations in our Financial Model. Each of these are available on EA’s IR Website at http://ir.ea.com.


These materials may include forward-looking statements regarding future events that are subject to change. Actual events may differ materially from our expectations. These forward-looking statements are current as of May 7, 2024. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law.