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Press Release Details

Electronic Arts Reports Q4 and FY23 Results

May 9, 2023

Record Q4 net bookings driven by all-time high EA SPORTS FIFA franchise performance;

Company carries strong momentum into brand launch of EA SPORTS FC

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2023.

“EA delivered a strong Q4 with record net bookings, up 11 percent year-over-year, demonstrating the strength of our business. Our teams continue to create high quality entertainment, fueled by amazing games and deeply engaging live services,” said Andrew Wilson, CEO of Electronic Arts. “We're excited to continue our momentum, including the highly anticipated launch of EA SPORTS FC later this year.”

"Record live services performance and increased engagement, particularly from our EA SPORTS FIFA franchise, drove better-than-expected Q4 net bookings, capping a strong finish to the fiscal year," said Chris Suh, CFO. "Looking ahead, our teams remain disciplined in prioritizing the player experience as we continue to focus our investments on long-term growth."

Selected Operating Highlights and Metrics 1

  • Net bookings2 for Q4 was $1.946 billion, up 11% year-over-year (up 15% in constant currency).
  • Live services and other net bookings for Q4 was $1.622 billion, a record for the quarter, up 9% year-over-year (up 13% in constant currency) and represented 83% of total net bookings.
  • The EA SPORTS FIFA franchise Q4 net bookings grew 31% year-over-year (up 37% in constant currency).
  • In the six months since launch, EA SPORTS FIFA 23 has surpassed life-time sales of EA SPORTS FIFA 22, becoming the most successful launch in franchise history.
  • Apex Legends delivered net bookings growth in Q4 year-over-year at constant currency, driven by a successful Season 16 with peak weekly active users up over 20% from the previous season.
  • Life-to-date, The Sims 4 player network has grown to more than 70 million worldwide.

Selected Financial Highlights and Metrics

  • Net revenue was $1.874 billion for the quarter and $7.426 billion for the fiscal year.
  • Net cash provided by operating activities was $617 million for the quarter and $1.550 billion for the fiscal year.
  • EA repurchased 2.7 million shares for $325 million during the quarter, bringing the total for the fiscal year to 10.4 million shares for $1.295 billion.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 21, 2023 to shareholders of record as of the close of business on May 31, 2023.

Quarterly Financial Highlights

 
Three Months Ended
March 31,

2023

2022

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

372

 

438

Live services and other

1,502

 

1,387

Total net revenue

1,874

 

1,825

 
Net income (loss)

(12

)

225

Diluted earnings (loss) per share

(0.04

)

0.80

 
Operating cash flow

617

 

444

 
Value of shares repurchased

325

 

325

Number of shares repurchased

2.7

 

2.5

 
Cash dividend paid

52

 

48

 

The following GAAP-based financial data3,4 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 March 31, 2023

GAAP-Based Financial Data

(in $ millions) Statement of
Operations
Acquisition-
related
expenses
Change in
deferred
net revenue
(online-
enabled
games)
Restructuring
and related
charges
Stock-based
compensation
Total net revenue

1,874

-

 

72

-

 

-

 

Cost of revenue

448

(25

)

-

-

 

(2

)

Gross profit

1,426

25

 

72

-

 

2

 

Total operating expenses

1,251

(26

)

-

(155

)

(140

)

Operating income

175

51

 

72

155

 

142

 

Interest and other income (expense), net

6

-

 

-

-

 

-

 

Income before provision for income taxes

181

51

 

72

155

 

142

 

Number of shares used in computation:
Diluted

274

Fiscal Year Financial Highlights

 
Twelve Months Ended
March 31,

2023

2022

(in $ millions)
Full game

1,937

1,993

Live services and other

5,489

4,998

Total net revenue

7,426

6,991

 
Net income

802

789

Diluted earnings per share

2.88

2.76

 
Operating cash flow

1,550

1,899

 
Value of shares repurchased

1,295

1,300

Number of shares repurchased

10.4

9.5

 
Cash dividend paid

210

193

The following GAAP-based financial data3,4 and a tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results.

 
 
Twelve Months Ended March 31, 2023
GAAP-Based Financial Data
(in $ millions) Statement of
Operations
Acquisition-
related
expenses
Change in
deferred net
revenue
(online-
enabled
games)
Restructuring
and related
charges
Stock-based
compensation
Total net revenue

7,426

 

-

 

(85

)

-

 

-

 

Cost of revenue

1,792

 

(120

)

-

 

-

 

(7

)

Gross profit

5,634

 

120

 

(85

)

-

 

7

 

Total operating expenses

4,302

 

(158

)

-

 

(155

)

(541

)

Operating income

1,332

 

278

 

(85

)

155

 

548

 

Interest and other income (expense), net

(6

)

-

 

-

 

-

 

-

 

Income before provision for income taxes

1,326

 

278

 

(85

)

155

 

548

 

Number of shares used in computation:
Diluted

278

 

Operating Metric

The following is a calculation of our total net bookings2 for the periods presented:

Three Months Ended

 

Twelve Months Ended

March 31,

 

March 31,

2023

 

2022

 

2023

 

2022

(in $ millions)
Total net revenue

1,874

1,825

 

7,426

 

6,991

Change in deferred net revenue (online-enabled games)

72

(74

)

(85

)

524

Total net bookings

1,946

1,751

 

7,341

 

7,515

Business Outlook as of May 9, 2023

Fiscal Year 2024 Expectations – Ending March 31, 2024

Financial metrics:

  • Net revenue is expected to be approximately $7.300 billion to $7.700 billion.
    • No change in deferred net revenue (online-enabled games) is expected.
  • Net income is expected to be approximately $915 million to $1.055 billion.
  • Diluted earnings per share is expected to be approximately $3.30 to $3.81.
  • Operating cash flow is expected to be approximately $1.700 billion to $1.850 billion.
  • The Company estimates a share count of 277 million for purposes of calculating fiscal year 2024 diluted earnings per share.

Operational metric:

  • Net bookings2 is expected to be approximately $7.300 billion to $7.700 billion.

In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods:

Twelve Months Ending March 31, 2024
GAAP-Based Financial Data*
GAAP
Guidance
Range
Acquisition-
related
expenses
Change in
deferred net
revenue (online-
enabled games)
Restructuring
and related
charges
Stock-based
compensation
(in $ millions)
Total net revenue 7,300 to 7,700

-

 

-

-

 

-

 

Cost of revenue 1,670 to 1,750

(65

)

-

-

 

(5

)

Operating expense 4,295 to 4,415

(95

)

-

(25

)

(635

)

Income before provision for income taxes 1,346 to 1,551

160

 

-

25

 

640

 

Net income 915 to 1,055
Number of shares used in computation:
Diluted shares

277

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

First Quarter Fiscal Year 2024 Expectations – Ending June 30, 2023

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 ($325) million.
  • Net income is expected to be approximately $271 million to $316 million.
  • Diluted earnings per share is expected to be approximately $0.98 to $1.14.
  • The Company estimates a share count of 277 million for purposes of calculating first quarter fiscal 2024 diluted earnings per share.

Operational metric:

  • Net bookings2 is expected to be approximately $1.500 billion to $1.600 billion.

In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods:

 
Three Months Ending June 30, 2023
GAAP-Based Financial Data*
GAAP
Guidance
Range
Acquisition-
related
expenses
Change in
deferred net
revenue (online-
enabled games)
Restructuring
and related
charges
Stock-based
compensation
(in $ millions)
Total net revenue 1,825 to 1,925

-

 

(325

)

-

 

-

 

Cost of revenue 350 to 370

(20

)

-

 

-

 

-

 

Operating expense 1,065 to 1,085

(25

)

-

 

(20

)

(140

)

Income before provision for income taxes 410 to 479

45

 

(325

)

20

 

140

 

Net income 271 to 316
Number of shares used in computation:
Diluted shares

277

* 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 9, 2023 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2023 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 May 24, 2023 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 May 9, 2023” and other information regarding EA's 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 May 9, 2023. 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, 2023. 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, 2023.

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 2023, EA posted GAAP net revenue of approximately $7.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FC, 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 For more information on constant currency, please refer to the earnings slides available on EA’s IR Website.

2 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.

3 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.

4 On March 29, 2023, EA announced a restructuring plan focused on prioritizing investments aligned with the Company's growth opportunities and optimizing its real estate portfolio.

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,

 

 

 

2023

 

2022

 

2023

 

2022

Net revenue

1,874

 

 

1,825

 

 

7,426

 

 

6,991

 

Cost of revenue

448

 

 

419

 

 

1,792

 

 

1,859

 

Gross profit

1,426

 

 

1,406

 

 

5,634

 

 

5,132

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

635

 

 

579

 

 

2,328

 

 

2,186

 

Marketing and sales

255

 

 

245

 

 

978

 

 

961

 

General and administrative

224

 

 

165

 

 

727

 

 

673

 

Amortization and impairment of intangibles

26

 

 

52

 

 

158

 

 

183

 

Restructuring

111

 

 

 

 

111

 

 

 

Total operating expenses

1,251

 

 

1,041

 

 

4,302

 

 

4,003

 

Operating income

175

 

 

365

 

 

1,332

 

 

1,129

 

Interest and other income (expense), net

6

 

 

(9

)

 

(6

)

 

(48

)

Income before provision for income taxes

181

 

 

356

 

 

1,326

 

 

1,081

 

Provision for income taxes

193

 

 

131

 

 

524

 

 

292

 

Net income (loss)

(12

)

 

225

 

 

802

 

 

789

 

Earnings (loss) per share

 

 

 

 

 

 

 

Basic

(0.04

)

 

0.80

 

 

2.90

 

 

2.78

 

Diluted

(0.04

)

 

0.80

 

 

2.88

 

 

2.76

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

274

 

 

281

 

 

277

 

 

284

 

Diluted

274

 

 

283

 

 

278

 

 

286

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on January 31, 2023 for the three months ended March 31, 2023 plus a comparison to the actuals for the three months ended March 31, 2022.

 

Three Months Ended March 31,

 

2023 Guidance (Mid-Point)

 

 

 

2023 Actuals

 

2022 Actuals

 

 

Variance

 

 

Net revenue

 

 

 

 

 

 

 

Net revenue

1,750

 

 

124

 

 

1,874

 

 

1,825

 

GAAP-based financial data

 

 

 

 

 

 

 

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

(25

)

 

97

 

 

72

 

 

(74

)

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

405

 

 

43

 

 

448

 

 

419

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(25

)

 

 

 

(25

)

 

(45

)

Stock-based compensation

 

 

(2

)

 

(2

)

 

(2

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,080

 

 

171

 

 

1,251

 

 

1,041

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(35

)

 

9

 

 

(26

)

 

(52

)

Restructuring and related charges

 

 

(155

)

 

(155

)

 

 

Stock-based compensation

(140

)

 

 

 

(140

)

 

(123

)

Income before tax

 

 

 

 

 

 

 

Income before tax

270

 

 

(89

)

 

181

 

 

356

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

60

 

 

(9

)

 

51

 

 

97

 

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

(25

)

 

97

 

 

72

 

 

(74

)

Restructuring and related charges

 

 

155

 

 

155

 

 

 

Stock-based compensation

140

 

 

2

 

 

142

 

 

125

 

Tax rate used for management reporting

19

%

 

 

 

19

%

 

18

%

Earnings (loss) per share

 

 

 

 

 

 

 

Basic

0.13

 

 

(0.17

)

 

(0.04

)

 

0.80

 

Diluted

0.13

 

 

(0.17

)

 

(0.04

)

 

0.80

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

275

 

 

(1

)

 

274

 

 

281

 

Diluted

277

 

 

(3

)

 

274

 

 

283

 

Anti-dilutive shares excluded for loss position2

 

 

1

 

 

1

 

 

 

 

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.

 

2 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 though 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 Condensed Consolidated Balance Sheets

(in $ millions)

 

 

 

 

 

March 31, 2023

 

March 31, 20223

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

2,424

 

 

2,732

Short-term investments

343

 

 

330

Receivables, net

684

 

 

650

Other current assets

518

 

 

439

Total current assets

3,969

 

 

4,151

Property and equipment, net

549

 

 

550

Goodwill

5,380

 

 

5,387

Acquisition-related intangibles, net

618

 

 

962

Deferred income taxes, net

2,462

 

 

2,243

Other assets

481

 

 

507

TOTAL ASSETS

13,459

 

 

13,800

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

99

 

 

101

Accrued and other current liabilities

1,285

 

 

1,388

Deferred net revenue (online-enabled games)

1,901

 

 

2,024

Total current liabilities

3,285

 

 

3,513

Senior notes, net

1,880

 

 

1,878

Income tax obligations

607

 

 

386

Deferred income taxes, net

1

 

 

1

Other liabilities

393

 

 

397

Total liabilities

6,166

 

 

6,175

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

3

 

 

3

Retained earnings

7,357

 

 

7,607

Accumulated other comprehensive income (loss)

(67

)

 

15

Total stockholders’ equity

7,293

 

 

7,625

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,459

 

 

13,800

 

3Derived 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,

 

2023

 

2022

 

2023

 

2022

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income (loss)

(12

)

 

225

 

 

802

 

 

789

 

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

 

 

 

 

 

 

 

Depreciation, amortization, accretion and impairment

173

 

 

141

 

 

536

 

 

486

 

Stock-based compensation

142

 

 

125

 

 

548

 

 

528

 

Change in assets and liabilities

 

 

 

 

 

 

 

Receivables, net

152

 

 

313

 

 

(34

)

 

(77

)

Other assets

(50

)

 

(82

)

 

(103

)

 

(157

)

Accounts payable

31

 

 

2

 

 

10

 

 

(7

)

Accrued and other liabilities

106

 

 

(14

)

 

134

 

 

169

 

Deferred income taxes, net

(18

)

 

(189

)

 

(221

)

 

(329

)

Deferred net revenue (online-enabled games)

93

 

 

(77

)

 

(122

)

 

497

 

Net cash provided by operating activities

617

 

 

444

 

 

1,550

 

 

1,899

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Capital expenditures

(47

)

 

(53

)

 

(207

)

 

(188

)

Proceeds from maturities and sales of short-term investments

152

 

 

136

 

 

395

 

 

1,329

 

Purchase of short-term investments

(142

)

 

(116

)

 

(405

)

 

(554

)

Acquisitions, net of cash acquired

 

 

 

 

 

 

(3,391

)

Net cash used in investing activities

(37

)

 

(33

)

 

(217

)

 

(2,804

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from issuance of common stock

33

 

 

33

 

 

80

 

 

77

 

Cash dividends paid

(52

)

 

(48

)

 

(210

)

 

(193

)

Cash paid to taxing authorities for shares withheld from employees

(14

)

 

(11

)

 

(175

)

 

(204

)

Repurchase and retirement of common stock

(325

)

 

(325

)

 

(1,295

)

 

(1,300

)

Net cash used in financing activities

(358

)

 

(351

)

 

(1,600

)

 

(1,620

)

 

 

 

 

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

 

 

2

 

 

(41

)

 

(3

)

Change in cash and cash equivalents

222

 

 

62

 

 

(308

)

 

(2,528

)

Beginning cash and cash equivalents

2,202

 

 

2,670

 

 

2,732

 

 

5,260

 

Ending cash and cash equivalents

2,424

 

 

2,732

 

 

2,424

 

 

2,732

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

FY22

 

FY23

 

FY23

 

FY23

 

FY23

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,825

 

 

1,767

 

 

1,904

 

 

1,881

 

 

1,874

 

 

3

%

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

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

(74

)

 

(468

)

 

(150

)

 

461

 

 

72

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,406

 

 

1,453

 

 

1,442

 

 

1,313

 

 

1,426

 

 

1

%

Gross profit (as a % of net revenue)

77

%

 

82

%

 

76

%

 

70

%

 

76

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

45

 

 

30

 

 

39

 

 

26

 

 

25

 

 

 

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

(74

)

 

(468

)

 

(150

)

 

461

 

 

72

 

 

 

Stock-based compensation

2

 

 

2

 

 

1

 

 

2

 

 

2

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

365

 

 

441

 

 

427

 

 

289

 

 

175

 

 

(52

%)

Operating income (as a % of net revenue)

20

%

 

25

%

 

22

%

 

15

%

 

9

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

97

 

 

69

 

 

82

 

 

76

 

 

51

 

 

 

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

(74

)

 

(468

)

 

(150

)

 

461

 

 

72

 

 

 

Restructuring and related charges

 

 

 

 

 

 

 

 

155

 

 

 

Stock-based compensation

125

 

 

125

 

 

140

 

 

141

 

 

142

 

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

225

 

 

311

 

 

299

 

 

204

 

 

(12

)

 

(105

%)

Net income (loss) (as a % of net revenue)

12

%

 

18

%

 

16

%

 

11

%

 

(1

%)

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

97

 

 

69

 

 

82

 

 

76

 

 

51

 

 

 

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

(74

)

 

(468

)

 

(150

)

 

461

 

 

72

 

 

 

Restructuring and related charges

 

 

 

 

 

 

 

 

155

 

 

 

Stock-based compensation

125

 

 

125

 

 

140

 

 

141

 

 

142

 

 

 

Tax rate used for management reporting

18

%

 

19

%

 

19

%

 

19

%

 

19

%

 

 

Diluted earnings (loss) per share

0.80

 

 

1.11

 

 

1.07

 

 

0.73

 

 

(0.04

)

 

(105

%)

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

281

 

 

279

 

 

278

 

 

276

 

 

274

 

 

 

Diluted

283

 

 

281

 

 

279

 

 

278

 

 

274

 

 

 

Anti-dilutive shares excluded for loss position2

 

 

 

 

 

 

 

 

1

 

 

 

 

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.

 

2 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 though 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

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

 

FY22

 

FY23

 

FY23

 

FY23

 

FY23

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

 

312

 

 

237

 

 

328

 

 

423

 

 

274

 

 

(12

%)

Packaged goods

 

126

 

 

104

 

 

274

 

 

199

 

 

98

 

 

(22

%)

Full game

 

438

 

 

341

 

 

602

 

 

622

 

 

372

 

 

(15

%)

Live services and other

 

1,387

 

 

1,426

 

 

1,302

 

 

1,259

 

 

1,502

 

 

8

%

Total net revenue

 

1,825

 

 

1,767

 

 

1,904

 

 

1,881

 

 

1,874

 

 

3

%

Full game

 

24

%

 

19

%

 

32

%

 

33

%

 

20

%

 

 

Live services and other

 

76

%

 

81

%

 

68

%

 

67

%

 

80

%

 

 

Total net revenue %

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

 

(103

)

 

(111

)

 

17

 

 

45

 

 

(24

)

 

 

Packaged goods

 

(68

)

 

(65

)

 

16

 

 

20

 

 

(24

)

 

 

Full game

 

(171

)

 

(176

)

 

33

 

 

65

 

 

(48

)

 

 

Live services and other

 

97

 

 

(292

)

 

(183

)

 

396

 

 

120

 

 

 

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

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

 

Console

 

1,092

 

 

1,042

 

 

1,161

 

 

1,152

 

 

1,088

 

 

 

PC & Other

 

420

 

 

402

 

 

423

 

 

435

 

 

469

 

 

12

%

Mobile

 

313

 

 

323

 

 

320

 

 

294

 

 

317

 

 

1

%

Total net revenue

 

1,825

 

 

1,767

 

 

1,904

 

 

1,881

 

 

1,874

 

 

3

%

GAAP-based financial data

 

 

 

 

 

 

Console

 

(86

)

 

(405

)

 

(134

)

 

423

 

 

11

 

 

 

PC & Other

 

3

 

 

(54

)

 

8

 

 

29

 

 

47

 

 

 

Mobile

 

9

 

 

(9

)

 

(24

)

 

9

 

 

14

 

 

 

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

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

72

 

 

 

 

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 %

 

FY22

FY23

FY23

FY23

FY23

Change

CASH FLOW DATA

 

 

 

 

 

 

Operating cash flow

444

(78

)

(112

)

1,123

617

39

%

Operating cash flow - TTM

1,899

1,964

 

1,788

 

1,377

1,550

(18

%)

Capital expenditures

53

59

 

53

 

48

47

(11

%)

Capital expenditures - TTM

188

203

 

213

 

213

207

10

%

Repurchase and retirement of common stock

325

320

 

325

 

325

325

 

Cash dividends paid

48

53

 

53

 

52

52

8

%

DEPRECIATION

 

 

 

 

 

 

Depreciation expense

42

44

 

45

 

46

58

38

%

BALANCE SHEET DATA

 

 

 

 

 

 

Cash and cash equivalents

2,732

2,082

 

1,539

 

2,202

2,424

 

Short-term investments

330

334

 

335

 

351

343

 

Cash and cash equivalents, and short-term investments

3,062

2,416

 

1,874

 

2,553

2,767

(10

%)

Receivables, net

650

579

 

919

 

836

684

5

%

STOCK-BASED COMPENSATION

 

 

 

 

 

 

Cost of revenue

2

2

 

1

 

2

2

 

Research and development

84

81

 

95

 

95

96

 

Marketing and sales

13

13

 

16

 

15

15

 

General and administrative

26

29

 

28

 

29

29

 

Total stock-based compensation

125

125

 

140

 

141

142

 

RESTRUCTURING AND RELATED CHARGES

 

 

 

 

 

 

Restructuring

 

 

111

 

Office space reductions

 

 

44

 

Total restructuring and related charges

 

 

155

 

Category: Company News

Stuart Canfield
SVP, Finance & Investor Relations
650-628-7750
scanfield@ea.com

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

Source: Electronic Arts Inc.