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Press Release Details

Electronic Arts Reports Q4 and FY22 Financial Results

May 10, 2022

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2022.

“FY22 was a record year, with hundreds of millions of players around the world joining in our games to play, watch, and create with one another,” said Andrew Wilson, CEO of Electronic Arts. “With amazing games, built around powerful IP, made by incredibly talented teams, and outstanding engagement in our live services, FY23 is set to be a year of innovation and growth for Electronic Arts.”

“We finished the year with another strong quarter of revenue and profit growth, driven by our live services business which was 85% of our net bookings in Q4,” said CFO Chris Suh. “We have a strong foundation of deeply engaged players, rich IP and a resilient business model, which we will continue to invest in to deliver growth in FY23 and beyond.”

Selected Operating Highlights and Metrics

  • Net bookings1 for fiscal 2022 was $7.515 billion, up 21% year-over-year.
  • Live services and other net bookings were up 17% year-over-year and represent 71% of total net bookings in fiscal 2022.
  • The EA player network grew 16% year-over-year to more than 580 million unique active accounts.
  • During FY22, EA SPORTS™ FIFA had more than 150 million accounts.
  • FIFA Mobile just had the biggest quarter ever with new unique players surging nearly 80% year-over-year.
  • Apex Legends™ Season 12 set records for the highest engagement since launch.
  • It Takes Two won over 90 awards during FY22.

Selected Financial Highlights and Metrics

  • Net cash provided by operating activities was $444 million for the quarter and $1.899 billion for the fiscal year.
  • EA repurchased 2.5 million shares for $325 million during the quarter, bringing the total for the fiscal year to 9.5 million shares for $1.300 billion.
  • EA paid a cash dividend of $0.17 per share during the quarter, bringing the total for the fiscal year to $193 million.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock, which represents a 12% increase from prior quarter. The dividend is payable on June 22, 2022 to shareholders of record as of the close of business on June 8, 2022.

Quarterly Financial Highlights

 

Three Months Ended

March 31,

2022

 

2021

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

438

250

Live services and other

1,387

1,096

Total net revenue

1,825

1,346

 
Net income

225

76

Diluted earnings per share

0.80

0.26

 
Operating cash flow

444

371

 
Value of shares repurchased

325

325

Number of shares repurchased

2.5

2.4

 
Cash dividend paid

48

49

The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

Three Months Ended March 31, 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

1,825

 

-

 

(74

)

-

 

Cost of revenue

419

 

(45

)

-

 

(2

)

Gross profit

1,406

 

45

 

(74

)

2

Total operating expenses

1,041

 

(52

)

-

 

(123

)

Operating income

365

 

97

 

(74

)

125

 

Interest and other income (expense), net

(9

)

-

 

-

 

-

 

Income before provision for income taxes

356

 

97

 

(74

)

125

 

Number of shares used in computation:
Diluted

283

 

Fiscal Year Financial Highlights

 

Twelve Months Ended

March 31,

2022

 

2021

(in $ millions)
Full game

1,993

1,613

Live services and other

4,998

4,016

Total net revenue

6,991

5,629

 
Net income

789

837

Diluted earnings per share

2.76

2.87

 
Operating cash flow

1,899

1,934

 
Value of shares repurchased

1,300

729

Number of shares repurchased

9.5

5.6

 
Cash dividend paid

193

98

The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

Twelve Months Ended March 31, 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

6,991

 

-

 

524

-

 

Cost of revenue

1,859

 

(133

)

-

(6

)

Gross profit

5,132

 

133

 

524

6

 

Total operating expenses

4,003

 

(183

)

-

(522

)

Operating income

1,129

 

316

 

524

528

 

Interest and other income (expense), net

(48

)

-

 

-

-

 

Income before provision for income taxes

1,081

 

316

 

524

528

 

Number of shares used in computation:
Diluted

286

 

Operating Metric

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

Three Months Ended

 

Twelve Months Ended

March 31,

 

March 31,

2022

 

2021

 

2022

 

2021

(in $ millions)
Total net revenue

1,825

1,346

6,991

5,629

Change in deferred net revenue (online-enabled games)

(74)

144

524

561

Net bookings

1,751

1,490

7,515

6,190

Business Outlook as of May 10, 2022

Fiscal Year 2023 Expectations – Ending March 31, 2023

Financial metrics:

  • Net revenue is expected to be approximately $7.600 to $7.800 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $300 million.
  • Net income is expected to be approximately $793 to $815 million.
  • Diluted earnings per share is expected to be approximately $2.79 to $2.87.
  • Operating cash flow is expected to be approximately $1.600 to $1.650 billion.
  • The Company estimates a share count of 284 million for purposes of calculating fiscal year 2023 diluted earnings per share.

Operational metric:

  • Net bookings1 is expected to be approximately $7.900 to $8.100 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:

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

7,600

7,800

-

 

300

-

 

Cost of revenue

2,020

2,065

(110

)

-

(5

)

Operating expense

4,200

4,315

(140

)

-

(595

)

Income before provision for income taxes

1,321

1,358

250

 

300

600

 

Net income

793

815

Number of shares used in computation:
Diluted shares

284

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

First Quarter Fiscal Year 2023 Expectations – Ending June 30, 2022

Financial metrics:

  • Net revenue is expected to be approximately $1.675 to $1.725 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $(475) million.
  • Net income is expected to be approximately $216 to $240 million.
  • Diluted earnings per share is expected to be approximately $0.76 to $0.85.
  • The Company estimates a share count of 283 million for purposes of calculating first quarter fiscal 2023 diluted earnings per share.

Operational metric:

  • Net bookings1 is expected to be approximately $1.200 to $1.250 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 June 30, 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

1,675

1,725

-

 

(475

)

-

 

Cost of revenue

309

321

(30

)

-

 

(2

)

Operating expense

1,013

(40

)

-

 

(123

)

Income before provision for income taxes

337

375

70

 

(475

)

125

 

Net income

216

240

Number of shares used in computation:
Diluted shares

283

*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 May 10, 2022 at 2:00 pm PT (5:00 pm ET) to review its results for the fiscal quarter and year ended March 31, 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 (866) 324-3683 (domestic) or (509) 844-0959 (international), using the conference code 8277667 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 May 24, 2022 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 8277667. 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 May 10, 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, 2021.

These forward-looking statements are current as of May 10, 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2022. 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, 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, 2021.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

Twelve Months Ended
March 31,

 

 

 

2022

 

2021

 

2022

 

2021

Net revenue

1,825

 

 

1,346

 

 

6,991

 

 

5,629

 

Cost of revenue

419

 

 

319

 

 

1,859

 

 

1,494

 

Gross profit

1,406

 

 

1,027

 

 

5,132

 

 

4,135

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

579

 

 

468

 

 

2,186

 

 

1,778

 

Marketing and sales

245

 

 

196

 

 

961

 

 

689

 

General and administrative

165

 

 

174

 

 

673

 

 

592

 

Amortization and impairment of intangibles

52

 

 

14

 

 

183

 

 

30

 

Total operating expenses

1,041

 

 

852

 

 

4,003

 

 

3,089

 

Operating income

365

 

 

175

 

 

1,129

 

 

1,046

 

Interest and other income (expense), net

(9

)

 

(10

)

 

(48

)

 

(29

)

Income before provision for income taxes

356

 

 

165

 

 

1,081

 

 

1,017

 

Provision for income taxes

131

 

 

89

 

 

292

 

 

180

 

Net income

225

 

 

76

 

 

789

 

 

837

 

Earnings per share

 

 

 

 

 

 

 

Basic

0.80

 

 

0.26

 

 

2.78

 

 

2.90

 

Diluted

0.80

 

 

0.26

 

 

2.76

 

 

2.87

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

281

 

 

288

 

 

284

 

 

289

 

Diluted

283

 

 

290

 

 

286

 

 

292

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on February 1, 2022 for the three months ended March 31, 2022 plus a comparison to the actuals for the three months ended March 31, 2021.

 

Three Months Ended March 31,

 

2022

 

 

 

2022

 

2021

 

Guidance

 

Variance

 

Actuals

 

Actuals

Net revenue

 

 

 

 

 

 

 

Net revenue

1,759

 

 

66

 

 

1,825

 

 

1,346

 

GAAP-based financial data

 

 

 

 

 

 

 

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

2

 

 

(76

)

 

(74

)

 

144

 

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

404

 

 

15

 

 

419

 

 

319

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(42

)

 

(3

)

 

(45

)

 

(4

)

Stock-based compensation

(1

)

 

(1

)

 

(2

)

 

(1

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,086

 

 

(45

)

 

1,041

 

 

852

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(49

)

 

(3

)

 

(52

)

 

(14

)

Stock-based compensation

(126

)

 

3

 

 

(123

)

 

(108

)

Income before tax

 

 

 

 

 

 

 

Income before tax

259

 

 

97

 

 

356

 

 

165

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

91

 

 

6

 

 

97

 

 

18

 

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

2

 

 

(76

)

 

(74

)

 

144

 

Stock-based compensation

127

 

 

(2

)

 

125

 

 

109

 

Tax rate used for management reporting

18

%

 

 

 

18

%

 

18

%

Earnings per share

 

 

 

 

 

 

 

Basic

0.46

 

 

0.34

 

 

0.80

 

 

0.26

 

Diluted

0.46

 

 

0.34

 

 

0.80

 

 

0.26

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

282

 

 

(1

)

 

281

 

 

288

 

Diluted

284

 

 

(1

)

 

283

 

 

290

 

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)

 

 

 

 

 

March 31, 2022

 

March 31, 20212

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

2,732

 

5,260

 

Short-term investments

330

 

1,106

 

Receivables, net

650

 

521

 

Other current assets

439

 

326

 

Total current assets

4,151

 

7,213

 

Property and equipment, net

550

 

491

 

Goodwill

5,387

 

2,868

 

Acquisition-related intangibles, net

962

 

309

 

Deferred income taxes, net

2,243

 

2,045

 

Other assets

507

 

362

 

TOTAL ASSETS

13,800

 

13,288

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

101

 

96

 

Accrued and other current liabilities

1,388

 

1,341

 

Deferred net revenue (online-enabled games)

2,024

 

1,527

 

Total current liabilities

3,513

 

2,964

 

Senior notes, net

1,878

 

1,876

 

Income tax obligations

386

 

315

 

Deferred income taxes, net

1

 

43

 

Other liabilities

397

 

250

 

Total liabilities

6,175

 

5,448

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

3

 

3

 

Retained earnings

7,607

 

7,887

 

Accumulated other comprehensive income (loss)

15

 

(50

)

Total stockholders’ equity

7,625

 

7,840

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,800

 

13,288

 

2Derived 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,

 

2022

 

2021

 

2022

 

2021

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

225

 

 

76

 

 

789

 

 

837

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation, amortization, accretion and impairment

141

 

 

58

 

 

486

 

 

181

 

Stock-based compensation

125

 

 

109

 

 

528

 

 

435

 

Change in assets and liabilities

 

 

 

 

 

 

 

Receivables, net

313

 

 

268

 

 

(77

)

 

(41

)

Other assets

(82

)

 

(42

)

 

(157

)

 

(70

)

Accounts payable

2

 

 

(11

)

 

(7

)

 

18

 

Accrued and other liabilities

(14

)

 

(109

)

 

169

 

 

136

 

Deferred income taxes, net

(189

)

 

(125

)

 

(329

)

 

(143

)

Deferred net revenue (online-enabled games)

(77

)

 

147

 

 

497

 

 

581

 

Net cash provided by operating activities

444

 

 

371

 

 

1,899

 

 

1,934

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Capital expenditures

(53

)

 

(31

)

 

(188

)

 

(124

)

Proceeds from maturities and sales of short-term investments

136

 

 

1,598

 

 

1,329

 

 

3,686

 

Purchase of short-term investments

(116

)

 

(772

)

 

(554

)

 

(2,828

)

Acquisitions, net of cash acquired

 

 

(1,239

)

 

(3,391

)

 

(1,239

)

Net cash used in investing activities

(33

)

 

(444

)

 

(2,804

)

 

(505

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from issuance of senior notes, net of issuance costs

 

 

1,478

 

 

 

 

1,478

 

Payment of senior notes

 

 

(600

)

 

 

 

(600

)

Proceeds from issuance of common stock

33

 

 

30

 

 

77

 

 

86

 

Cash dividends paid

(48

)

 

(49

)

 

(193

)

 

(98

)

Cash paid to taxing authorities for shares withheld from employees

(11

)

 

(8

)

 

(204

)

 

(152

)

Repurchase and retirement of common stock

(325

)

 

(325

)

 

(1,300

)

 

(729

)

Net cash provided by (used in) financing activities

(351

)

 

526

 

 

(1,620

)

 

(15

)

 

 

 

 

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

2

 

 

35

 

 

(3

)

 

78

 

Change in cash and cash equivalents

62

 

 

488

 

 

(2,528

)

 

1,492

 

Beginning cash and cash equivalents

2,670

 

 

4,772

 

 

5,260

 

 

3,768

 

Ending cash and cash equivalents

2,732

 

 

5,260

 

 

2,732

 

 

5,260

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

FY21

 

FY22

 

FY22

 

FY22

 

FY22

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,346

 

 

1,551

 

 

1,826

 

 

1,789

 

 

1,825

 

 

36

%

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

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

144

 

 

(215

)

 

25

 

 

788

 

 

(74

)

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,027

 

 

1,236

 

 

1,332

 

 

1,158

 

 

1,406

 

 

37

%

Gross profit (as a % of net revenue)

76

%

 

80

%

 

73

%

 

65

%

 

77

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

4

 

 

22

 

 

22

 

 

44

 

 

45

 

 

 

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

144

 

 

(215

)

 

25

 

 

788

 

 

(74

)

 

 

Stock-based compensation

1

 

 

1

 

 

2

 

 

1

 

 

2

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

175

 

 

322

 

 

340

 

 

102

 

 

365

 

 

109

%

Operating income (as a % of net revenue)

13

%

 

21

%

 

19

%

 

6

%

 

20

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

18

 

 

62

 

 

52

 

 

105

 

 

97

 

 

 

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

144

 

 

(215

)

 

25

 

 

788

 

 

(74

)

 

 

Stock-based compensation

109

 

 

125

 

 

149

 

 

129

 

 

125

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

Net income

76

 

 

204

 

 

294

 

 

66

 

 

225

 

 

196

%

Net income (as a % of net revenue)

6

%

 

13

%

 

16

%

 

4

%

 

12

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

18

 

 

62

 

 

52

 

 

105

 

 

97

 

 

 

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

144

 

 

(215

)

 

25

 

 

788

 

 

(74

)

 

 

Stock-based compensation

109

 

 

125

 

 

149

 

 

129

 

 

125

 

 

 

Tax rate used for management reporting

18

%

 

18

%

 

18

%

 

18

%

 

18

%

 

 

Diluted earnings per share

0.26

 

 

0.71

 

 

1.02

 

 

0.23

 

 

0.80

 

 

208

%

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

288

 

 

286

 

 

285

 

 

283

 

 

281

 

 

 

Diluted

290

 

 

289

 

 

287

 

 

285

 

 

283

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

 

FY21

 

FY22

 

FY22

 

FY22

 

FY22

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

 

185

 

 

233

 

 

337

 

 

400

 

 

312

 

 

69

%

Packaged goods

 

65

 

 

89

 

 

280

 

 

216

 

 

126

 

 

94

%

Full game

 

250

 

 

322

 

 

617

 

 

616

 

 

438

 

 

75

%

Live services and other

 

1,096

 

 

1,229

 

 

1,209

 

 

1,173

 

 

1,387

 

 

27

%

Total net revenue

 

1,346

 

 

1,551

 

 

1,826

 

 

1,789

 

 

1,825

 

 

36

%

Full game

 

19

%

 

21

%

 

34

%

 

34

%

 

24

%

 

 

Live services and other

 

81

%

 

79

%

 

66

%

 

66

%

 

76

%

 

 

Total net revenue %

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

 

(19

)

 

(5

)

 

35

 

 

179

 

 

(103

)

 

 

Packaged goods

 

(44

)

 

(35

)

 

44

 

 

105

 

 

(68

)

 

 

Full game

 

(63

)

 

(40

)

 

79

 

 

284

 

 

(171

)

 

 

Live services and other

 

207

 

 

(175

)

 

(54

)

 

504

 

 

97

 

 

 

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

 

144

 

 

(215

)

 

25

 

 

788

 

 

(74

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

 

Console

 

879

 

 

972

 

 

1,198

 

 

1,138

 

 

1,092

 

 

24

%

PC & Other

 

295

 

 

361

 

 

377

 

 

374

 

 

420

 

 

42

%

Mobile

 

172

 

 

218

 

 

251

 

 

277

 

 

313

 

 

82

%

Total net revenue

 

1,346

 

 

1,551

 

 

1,826

 

 

1,789

 

 

1,825

 

 

36

%

GAAP-based financial data

 

 

 

 

 

 

Console

 

71

 

 

(278

)

 

(29

)

 

608

 

 

(86

)

 

 

PC & Other

 

51

 

 

9

 

 

26

 

 

137

 

 

3

 

 

 

Mobile

 

22

 

 

54

 

 

28

 

 

43

 

 

9

 

 

 

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

 

144

 

 

(215

)

 

25

 

 

788

 

 

(74

)

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

FY21

 

FY22

 

FY22

 

FY22

 

FY22

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

371

 

(143

)

 

64

 

1,534

 

444

 

20

%

Operating cash flow - TTM

1,934

 

1,413

 

 

1,416

 

1,826

 

1,899

 

(2

%)

Capital expenditures

31

 

44

 

 

43

 

48

 

53

 

71

%

Capital expenditures - TTM

124

 

130

 

 

148

 

166

 

188

 

52

%

Repurchase and retirement of common stock

325

 

325

 

 

325

 

325

 

325

 

 

Cash dividends paid

49

 

49

 

 

48

 

48

 

48

 

(2

%)

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

38

 

40

 

 

39

 

41

 

42

 

11

%

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

5,260

 

2,838

 

 

1,630

 

2,670

 

2,732

 

 

Short-term investments

1,106

 

881

 

 

342

 

346

 

330

 

 

Cash and cash equivalents, and short-term investments

6,366

 

3,719

 

 

1,972

 

3,016

 

3,062

 

(52

%)

Receivables, net

521

 

557

 

 

1,031

 

965

 

650

 

25

%

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

1

 

1

 

 

2

 

1

 

2

 

 

Research and development

71

 

85

 

 

101

 

86

 

84

 

 

Marketing and sales

12

 

12

 

 

15

 

14

 

13

 

 

General and administrative

25

 

27

 

 

31

 

28

 

26

 

 

Total stock-based compensation

109

 

125

 

 

149

 

129

 

125

 

 

 

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

John Reseburg
Vice President, Global Communications
650-628-3601
jreseburg@ea.com

Source: Electronic Arts Inc.