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Electronic Arts Reports Q2 FY23 Financial Results

November 1, 2022

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its second fiscal quarter ended September 30, 2022.

“In Q2, EA delivered strong engagement and deeply immersive experiences across our portfolio, with new EA SPORTS titles and multi-platform live services powering the business,” said CEO Andrew Wilson. “More people than ever before are turning to games as their primary platform for social connection and creativity. With EA’s unrivaled IP, talented teams, and growing player network, we are well-positioned to lead the future of entertainment.”

“Q2 was a solid quarter. We again delivered on our revenue and profit commitments, driven by our EA SPORTS portfolio and our multi-platform live services business,” said CFO Chris Suh. “With our resilient business model, disciplined execution, and healthy underlying fundamentals, we are poised to deliver long-term growth.”

Selected Operating Highlights and Metrics

  • Net bookings1 for the trailing twelve months was $7.381 billion, up 4% year-over-year.
  • Live services and other net bookings for the trailing twelve months were up 7% year-over-year and represent 73% of total net bookings.
  • The EA player network grew to more than 600 million active accounts at quarter end.
  • EA SPORTS™ FIFA 23 was the most successful launch in franchise history with more than 10.3 million players joining the game within the first week.
  • Based on the first four weeks following launch, EA SPORTS™ FIFA 23 units (sell-through) are up 10% and Ultimate Team players up 6% on the comparable period for FIFA 22.

Selected Financial Highlights and Metrics

  • Net cash (used in)/provided by operating activities was $(112) million for the quarter and $1.788 billion for the trailing twelve months.
  • EA repurchased 2.6 million shares for $325 million during the quarter, bringing the total for the trailing twelve months to 10.0 million shares for $1.295 billion.
  • EA paid a cash dividend of $0.19 per share during the quarter, for a total of $53 million.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on December 21, 2022 to shareholders of record as of the close of business on November 30, 2022.

Quarterly Financial Highlights

Three Months Ended
September 30,

2022

2021

(in $ millions, except per share amounts)
Full game

602

 

617

Live services and other

1,302

 

1,209

Total net revenue

1,904

 

1,826

 
Net income

299

 

294

Diluted earnings per share

1.07

 

1.02

 
Operating cash flow

(112

)

64

 
Value of shares repurchased

325

 

325

Number of shares repurchased

2.6

 

2.3

The following GAAP-based financial data2 and tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

Three Months Ended September 30, 2022
GAAP-Based Financial Data
(in $ millions) Statement of Operations Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based
compensation
Total net revenue

1,904

-

 

(150

)

-

 

Cost of revenue

462

(39

)

-

 

(1

)

Gross profit

1,442

39

 

(150

)

1

 

Total operating expenses

1,015

(43

)

-

 

(139

)

Operating income

427

82

 

(150

)

140

 

Interest and other income (expense), net

-

-

 

-

 

-

 

Income before provision for income taxes

427

82

 

(150

)

140

 

Number of shares used in computation:
Diluted

279

Trailing Twelve Months Financial Highlights

Twelve Months Ended
September 30,

2022

2021

(in $ millions)
Full game

1,997

1,911

Live services and other

5,288

4,485

Total net revenue

7,285

6,396

 
Net income

901

785

 
Operating cash flow

1,788

1,416

 
Value of shares repurchased

1,295

1,301

Number of shares repurchased

10.0

9.5

The following GAAP-based financial data2 was used internally by company management to adjust its GAAP results in order to assess EA’s operating results. During fiscal 2022, management used a tax rate of 18% and in fiscal 2023 a tax rate of 19%.

Twelve Months Ended September 30, 2022
GAAP-Based Financial Data
(in $ millions) Statement of Operations Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based
compensation
Total net revenue

7,285

 

-

 

96

-

 

Cost of revenue

1,826

 

(158

)

-

(6

)

Gross profit

5,459

 

158

 

96

6

 

Total operating expenses

4,124

 

(195

)

-

(513

)

Operating income

1,335

 

353

 

96

519

 

Interest and other income (expense), net

(25

)

-

 

-

-

 

Income before provision for income taxes

1,310

 

353

 

96

519

 

Operating Metric

The following is a calculation of our total net bookings1 for the periods presented:

Three Months Ended Twelve Months Ended
September 30, September 30,

2022

 

2021

 

2022

 

2021

(in $ millions)
Total net revenue

1,904

 

1,826

7,285

6,396

Change in deferred net revenue (online-enabled games)

(150

)

25

96

681

Total net bookings

1,754

 

1,851

7,381

7,077

Business Outlook as of November 1, 2022

Fiscal Year 2023 Expectations – Ending March 31, 2023

Financial metrics:

  • Net revenue is expected to be approximately $7.550 billion to $7.750 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $100 million.
  • Net income is expected to be approximately $871 million to $934 million
  • Diluted earnings per share is expected to be approximately $3.11 to $3.34.
  • Operating cash flow is expected to be approximately $1.600 billion to $1.650 billion.
  • The Company estimates a share count of 280 million for purposes of calculating fiscal year 2023 diluted earnings per share.

Operational metric:

  • The US dollar has strengthened since the time of our initial FY23 guidance. As a result, we now expect an FX impact of approximately ($200) million versus our initial full year net bookings guide.
  • Net bookings1 is expected to be approximately $7.650 billion to $7.850 billion, up 2% to 4% year-over-year, or 6% to 9% in constant currency.

In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19% 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, 2023
GAAP-Based Financial Data*
GAAP Guidance Range Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based compensation
(in $ millions)
Total net revenue 7,550 to 7,750

-

 

100

-

 

Cost of revenue 1,845 to 1,890

(125

)

-

(5

)

Operating expense 4,245 to 4,295

(155

)

-

(565

)

Income before provision for income taxes 1,452 to 1,556

280

 

100

570

 

Net income 871 to 934
Number of shares used in computation:
Diluted shares

280

* The mid-point of the range has been used for purposes of presenting the reconciling items.

Third Quarter Fiscal Year 2023 Expectations – Ending December 31, 2022

Financial metrics:

  • Net revenue is expected to be approximately $1.825 billion to $1.925 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $600 million.
  • Net income is expected to be approximately $120 million to $164 million.
  • Diluted earnings per share is expected to be approximately $0.43 to $0.59.
  • The Company estimates a share count of 279 million for purposes of calculating third quarter fiscal 2023 diluted earnings per share.

Operational metric:

  • Net bookings1 is expected to be approximately $2.425 billion to $2.525 billion.

In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

Three Months Ending December 31, 2022
GAAP-Based Financial Data*
GAAP Guidance Range Acquisition-related expenses Change in deferred net revenue (online-enabled games) Stock-based compensation
(in $ millions)
Total net revenue 1,825 to 1,925

-

 

600

-

 

Cost of revenue 560 to 580

(30

)

-

-

 

Operating expense 1,080 to 1,090

(35

)

-

(150

)

Income before provision for income taxes 184 to 253

65

 

600

150

 

Net income 120 to 164
Number of shares used in computation:
Diluted shares

279

* The mid-point of the range has been used for purposes of presenting the reconciling items.

Conference Call and Supporting Documents

Electronic Arts will host a conference call on November 1, 2022 at 2:00 pm PT (5:00 pm ET) to review its results for the second quarter ended September 30, 2022 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 (888) 330-2446 (domestic) or (240) 789-2732 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation with 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 November 15, 2022 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using pin code 5939891. 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 expectations under the heading “Business Outlook as of November 1, 2022” and other information regarding EA's fiscal 2023 expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed 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 products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, 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; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2022.

These forward-looking statements are current as of November 1, 2022. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. 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 Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2022.

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.

In fiscal year 2022, EA posted GAAP net revenue of approximately $7 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.

1 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.
2 For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2022.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

 

 

2022

 

2021

 

2022

 

2021

Net revenue

1,904

 

1,826

 

3,671

 

3,377

Cost of revenue

462

 

494

 

776

 

809

Gross profit

1,442

 

1,332

 

2,895

 

2,568

Operating expenses:

 

 

 

 

 

 

 

Research and development

565

 

553

 

1,137

 

1,068

Marketing and sales

233

 

233

 

467

 

423

General and administrative

174

 

176

 

341

 

345

Amortization and impairment of intangibles

43

 

30

 

82

 

70

Total operating expenses

1,015

 

992

 

2,027

 

1,906

Operating income

427

 

340

 

868

 

662

Interest and other income (expense), net

 

(14)

 

(5)

 

(28)

Income before provision for income taxes

427

 

326

 

863

 

634

Provision for income taxes

128

 

32

 

253

 

136

Net income

299

 

294

 

610

 

498

Earnings per share

 

 

 

 

 

 

 

Basic

1.08

 

1.03

 

2.19

 

1.75

Diluted

1.07

 

1.02

 

2.18

 

1.73

Number of shares used in computation

 

 

 

 

 

 

 

Basic

278

 

285

 

279

 

285

Diluted

279

 

287

 

280

 

288

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on August 2, 2022 for the three months ended September 30, 2022 plus a comparison to the actuals for the three months ended September 30, 2021.

 

Three Months Ended September 30,

 

2022 Guidance
(Mid-Point)

 

Variance

 

2022
Actuals

 

2021
Actuals

 

 

 

 

Net revenue

 

 

 

 

 

 

 

Net revenue

1,875

 

 

29

 

 

1,904

 

 

1,826

 

GAAP-based financial data

 

 

 

 

 

 

 

Change in deferred net revenue (online-enabled games)1

(125

)

 

(25

)

 

(150

)

 

25

 

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

474

 

 

(12

)

 

462

 

 

494

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(30

)

 

(9

)

 

(39

)

 

(22

)

Stock-based compensation

(2

)

 

1

 

 

(1

)

 

(2

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,039

 

 

(24

)

 

1,015

 

 

992

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(40

)

 

(3

)

 

(43

)

 

(30

)

Stock-based compensation

(148

)

 

9

 

 

(139

)

 

(147

)

Income before tax

 

 

 

 

 

 

 

Income before tax

356

 

 

71

 

 

427

 

 

326

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

70

 

 

12

 

 

82

 

 

52

 

Change in deferred net revenue (online-enabled games)1

(125

)

 

(25

)

 

(150

)

 

25

 

Stock-based compensation

150

 

 

(10

)

 

140

 

 

149

 

Tax rate used for management reporting

19

%

 

 

 

19

%

 

18

%

Earnings per share

 

 

 

 

 

 

 

Basic

0.83

 

 

0.25

 

 

1.08

 

 

1.03

 

Diluted

0.82

 

 

0.25

 

 

1.07

 

 

1.02

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

279

 

 

(1

)

 

278

 

 

285

 

Diluted

281

 

 

(2

)

 

279

 

 

287

1The 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 primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in $ millions)

 

 

 

 

 

September 30, 2022

 

March 31, 20222

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

1,539

 

2,732

Short-term investments

335

 

330

Receivables, net

919

 

650

Other current assets

649

 

439

Total current assets

3,442

 

4,151

Property and equipment, net

531

 

550

Goodwill

5,375

 

5,387

Acquisition-related intangibles, net

811

 

962

Deferred income taxes, net

2,395

 

2,243

Other assets

525

 

507

TOTAL ASSETS

13,079

 

13,800

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

136

 

101

Accrued and other current liabilities

1,034

 

1,388

Deferred net revenue (online-enabled games)

1,391

 

2,024

Total current liabilities

2,561

 

3,513

Senior notes, net

1,879

 

1,878

Income tax obligations

478

 

386

Deferred income taxes, net

1

 

1

Other liabilities

362

 

397

Total liabilities

5,281

 

6,175

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

3

 

3

Retained earnings

7,658

 

7,607

Accumulated other comprehensive income

137

 

15

Total stockholders’ equity

7,798

 

7,625

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,079

 

13,800

2Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

2022

 

2021

 

2022

 

2021

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

299

 

 

294

 

 

610

 

 

498

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation, amortization, accretion and impairment

127

 

 

94

 

 

241

 

 

199

 

Stock-based compensation

140

 

 

149

 

 

265

 

 

274

 

Change in assets and liabilities

 

 

 

 

 

 

 

Receivables, net

(346

)

 

(458

)

 

(276

)

 

(446

)

Other assets

(10

)

 

23

 

 

(25

)

 

(51

)

Accounts payable

69

 

 

61

 

 

53

 

 

42

 

Accrued and other liabilities

(164

)

 

52

 

 

(269

)

 

(250

)

Deferred income taxes, net

(70

)

 

(168

)

 

(156

)

 

(140

)

Deferred net revenue (online-enabled games)

(157

)

 

17

 

 

(633

)

 

(205

)

Net cash provided by (used in) operating activities

(112

)

 

64

 

 

(190

)

 

(79

)

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Capital expenditures

(53

)

 

(43

)

 

(112

)

 

(87

)

Proceeds from maturities and sales of short-term investments

79

 

 

621

 

 

166

 

 

1,128

 

Purchase of short-term investments

(80

)

 

(84

)

 

(173

)

 

(369

)

Acquisitions, net of cash acquired

 

 

(1,405

)

 

 

 

(3,394

)

Net cash used in investing activities

(54

)

 

(911

)

 

(119

)

 

(2,722

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from issuance of common stock

43

 

 

41

 

 

44

 

 

41

 

Cash dividends paid

(53

)

 

(48

)

 

(106

)

 

(97

)

Cash paid to taxing authorities for shares withheld from employees

(13

)

 

(16

)

 

(117

)

 

(121

)

Repurchase and retirement of common stock

(325

)

 

(325

)

 

(645

)

 

(650

)

Net cash used in financing activities

(348

)

 

(348

)

 

(824

)

 

(827

)

 

 

 

 

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

(29

)

 

(13

)

 

(60

)

 

(2

)

Change in cash and cash equivalents

(543

)

 

(1,208

)

 

(1,193

)

 

(3,630

)

Beginning cash and cash equivalents

2,082

 

 

2,838

 

 

2,732

 

 

5,260

 

Ending cash and cash equivalents

1,539

 

 

1,630

 

 

1,539

 

 

1,630

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

YOY %

 

FY22

 

FY22

 

FY22

 

FY23

 

FY23

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,826

 

 

1,789

 

 

1,825

 

 

1,767

 

 

1,904

 

 

4%

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Change in deferred net revenue (online-enabled games)1

25

 

 

788

 

 

(74

)

 

(468

)

 

(150

)

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,332

 

 

1,158

 

 

1,406

 

 

1,453

 

 

1,442

 

 

8%

Gross profit (as a % of net revenue)

73

%

 

65

%

 

77

%

 

82

%

 

76

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

22

 

 

44

 

 

45

 

 

30

 

 

39

 

 

 

Change in deferred net revenue (online-enabled games)1

25

 

 

788

 

 

(74

)

 

(468

)

 

(150

)

 

 

Stock-based compensation

2

 

 

1

 

 

2

 

 

2

 

 

1

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

340

 

 

102

 

 

365

 

 

441

 

 

427

 

 

26%

Operating income (as a % of net revenue)

19

%

 

6

%

 

20

%

 

25

%

 

22

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

52

 

 

105

 

 

97

 

 

69

 

 

82

 

 

 

Change in deferred net revenue (online-enabled games)1

25

 

 

788

 

 

(74

)

 

(468

)

 

(150

)

 

 

Stock-based compensation

149

 

 

129

 

 

125

 

 

125

 

 

140

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

Net income

294

 

 

66

 

 

225

 

 

311

 

 

299

 

 

2%

Net income (as a % of net revenue)

16

%

 

4

%

 

12

%

 

18

%

 

16

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

52

 

 

105

 

 

97

 

 

69

 

 

82

 

 

 

Change in deferred net revenue (online-enabled games)1

25

 

 

788

 

 

(74

)

 

(468

)

 

(150

)

 

 

Stock-based compensation

149

 

 

129

 

 

125

 

 

125

 

 

140

 

 

 

Tax rate used for management reporting

18

%

 

18

%

 

18

%

 

19

%

 

19

%

 

 

Diluted earnings per share

1.02

 

 

0.23

 

 

0.80

 

 

1.11

 

 

1.07

 

 

5%

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

285

 

 

283

 

 

281

 

 

279

 

 

278

 

 

 

Diluted

287

 

 

285

 

 

283

 

 

281

 

 

279

 

 

 

1The 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 primarily 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

YOY %

 

 

FY22

 

FY22

 

FY22

 

FY23

 

FY23

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

 

337

 

 

400

 

 

312

 

 

237

 

 

328

 

 

(3

%)

Packaged goods

 

280

 

 

216

 

 

126

 

 

104

 

 

274

 

 

(2

%)

Full game

 

617

 

 

616

 

 

438

 

 

341

 

 

602

 

 

(2

%)

Live services and other

 

1,209

 

 

1,173

 

 

1,387

 

 

1,426

 

 

1,302

 

 

8

%

Total net revenue

 

1,826

 

 

1,789

 

 

1,825

 

 

1,767

 

 

1,904

 

 

4

%

Full game

 

34

%

 

34

%

 

24

%

 

19

%

 

32

%

 

 

Live services and other

 

66

%

 

66

%

 

76

%

 

81

%

 

68

%

 

 

Total net revenue %

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

 

35

 

 

179

 

 

(103

)

 

(111

)

 

17

 

 

 

Packaged goods

 

44

 

 

105

 

 

(68

)

 

(65

)

 

16

 

 

 

Full game

 

79

 

 

284

 

 

(171

)

 

(176

)

 

33

 

 

 

Live services and other

 

(54

)

 

504

 

 

97

 

 

(292

)

 

(183

)

 

 

Total change in deferred net revenue (online-enabled games) by composition1

 

25

 

 

788

 

 

(74

)

 

(468

)

 

(150

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

 

Console

 

1,198

 

 

1,138

 

 

1,092

 

 

1,042

 

 

1,161

 

 

(3

%)

PC & Other

 

377

 

 

374

 

 

420

 

 

402

 

 

423

 

 

12

%

Mobile

 

251

 

 

277

 

 

313

 

 

323

 

 

320

 

 

27

%

Total net revenue

 

1,826

 

 

1,789

 

 

1,825

 

 

1,767

 

 

1,904

 

 

4

%

GAAP-based financial data

 

 

 

 

 

 

Console

 

(29

)

 

608

 

 

(86

)

 

(405

)

 

(134

)

 

 

PC & Other

 

26

 

 

137

 

 

3

 

 

(54

)

 

8

 

 

 

Mobile

 

28

 

 

43

 

 

9

 

 

(9

)

 

(24

)

 

 

Total change in deferred net revenue (online-enabled games) by platform1

 

25

 

 

788

 

 

(74

)

 

(468

)

 

(150

)

 

 

1The 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 primarily 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

Q3

Q4

Q1

 

Q2

 

YOY %

 

FY22

FY22

FY22

FY23

 

FY23

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

64

 

1,534

 

444

 

(78

)

 

(112

)

 

(275

%)

Operating cash flow - TTM

1,416

 

1,826

 

1,899

 

1,964

 

 

1,788

 

 

26

%

Capital expenditures

43

 

48

 

53

 

59

 

 

53

 

 

23

%

Capital expenditures - TTM

148

 

166

 

188

 

203

 

 

213

 

 

44

%

Repurchase and retirement of common stock

325

 

325

 

325

 

320

 

 

325

 

 

 

Cash dividends paid

48

 

48

 

48

 

53

 

 

53

 

 

10

%

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

39

 

41

 

42

 

44

 

 

45

 

 

15

%

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

1,630

 

2,670

 

2,732

 

2,082

 

 

1,539

 

 

 

Short-term investments

342

 

346

 

330

 

334

 

 

335

 

 

 

Cash and cash equivalents, and short-term investments

1,972

 

3,016

 

3,062

 

2,416

 

 

1,874

 

 

(5

%)

Receivables, net

1,031

 

965

 

650

 

579

 

 

919

 

 

(11

%)

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

2

 

1

 

2

 

2

 

 

1

 

 

 

Research and development

101

 

86

 

84

 

81

 

 

95

 

 

 

Marketing and sales

15

 

14

 

13

 

13

 

 

16

 

 

 

General and administrative

31

 

28

 

26

 

29

 

 

28

 

 

 

Total stock-based compensation

149

 

129

 

125

 

125

 

 

140

 

 

 

 

Chris Evenden
Vice President, Investor Relations
650-628-0255
cevenden@ea.com

Erin Rheaume 
Director, Financial Communications
650-628-7978
erheaume@ea.com

Source: Electronic Arts Inc.
Categories: Press Releases
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