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Press Release Details

Electronic Arts Reports Strong Q1 FY24 Results

August 1, 2023

Record Q1 Net Bookings, up 21% year-over-year, driven by EA SPORTS FIFA Momentum and Star Wars Jedi: Survivor

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its first quarter ended June 30, 2023.

“EA delivered a record Q1, driven by strong momentum in EA SPORTS global football and Star Wars Jedi: Survivor,” said Andrew Wilson, CEO of EA. “Our exceptional teams are creating innovative entertainment experiences across our multi-year pipeline, starting with the highly anticipated, culture defining titles Madden NFL 24 and EA SPORTS FC 24.”

"We had a strong start to the fiscal year, with net bookings growth of 21% year over year, highlighted by new releases, continued live services growth, healthy engagement, and new player acquisition,” said Stuart Canfield, CFO of EA. “Looking ahead, our teams remain focused on delivering long-term growth and profitability.”

Selected Operating Highlights and Metrics 1

  • Net bookings2 for Q1 was $1.578 billion, up 21% year-over-year (up 25% in constant currency).
  • Live services and other net bookings for Q1 was $1.177 billion, up 4% year-over-year (up 7% in constant currency) and represented 75% of total net bookings.
  • Our teams continue to execute across the business — launching five new high-quality releases, while providing over 145 content updates across 37 titles during the quarter.
  • EA SPORTS FIFA net bookings growth accelerated year over year, delivering a record Q1 for the franchise, and further demonstrating the power and potential of a connected massive online community.
  • Star Wars Jedi: Survivor launched to critical acclaim and commercial success. The game is entertaining millions of players around the world, and with multiple “best of 2023” list accolades, and a blockbuster story, we’re seeing players spend more time in-game than its predecessor.

Selected Financial Highlights and Metrics

  • Net revenue was $1.924 billion for the quarter.
  • Net cash provided by operating activities was $359 million for the quarter and $1.987 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 10.5 million shares for $1.300 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 September 20, 2023 to shareholders of record as of the close of business on August 30, 2023.

Quarterly Financial Highlights

 

Three Months Ended

 

June 30,

 

2023

 

2022

(in $ millions, except per share amounts)

 

 

 

Full game

443

 

341

 

Live services and other

1,481

 

1,426

 

Total net revenue

1,924

 

1,767

 

 

 

 

 

Net income

402

 

311

 

Diluted earnings per share

1.47

 

1.11

 

 

 

 

 

Operating cash flow

359

 

(78

)

 

 

 

 

Value of shares repurchased

325

 

320

 

Number of shares repurchased

2.6

 

2.5

 

 

 

 

 

Cash dividend paid

52

 

53

 

The following GAAP-based financial data3 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 June 30, 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

1,924

 

 

 

(346

)

 

 

 

 

Cost of revenue

368

 

(16

)

 

 

 

 

 

(2

)

Gross profit

1,556

 

16

 

 

(346

)

 

 

 

2

 

Total operating expenses

1,014

 

(25

)

 

 

 

(3

)

 

(128

)

Operating income

542

 

41

 

 

(346

)

 

3

 

 

130

 

Interest and other income (expense), net

14

 

 

 

 

 

 

 

 

Income before provision for income taxes

556

 

41

 

 

(346

)

 

3

 

 

130

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

 

Diluted

274

 

 

 

 

 

 

 

 

Trailing Twelve Months Financial Highlights

 

Twelve Months Ended

 

June 30,

 

2023

 

2022

(in $ millions)

 

 

 

Full game

2,039

 

2,012

Live services and other

5,544

 

5,195

Total net revenue

7,583

 

7,207

 

 

 

 

Net income

893

 

896

 

 

 

 

Operating cash flow

1,987

 

1,964

 

 

 

 

Value of shares repurchased

1,300

 

1,295

Number of shares repurchased

10.5

 

9.7

The following GAAP-based financial data3 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 June 30, 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

7,583

 

 

 

37

 

 

 

 

Cost of revenue

1,846

 

(106

)

 

 

 

 

(7

)

Gross profit

5,737

 

106

 

 

37

 

 

 

7

 

Total operating expenses

4,304

 

(144

)

 

 

(158

)

 

(546

)

Operating income

1,433

 

250

 

 

37

 

158

 

 

553

 

Interest and other income (expense), net

13

 

 

 

 

 

 

 

Income before provision for income taxes

1,446

 

250

 

 

37

 

158

 

 

553

 

Operating Metric

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

 

Three Months Ended

June 30,

 

Twelve Months Ended

June 30,

 

2023

 

2022

 

2023

 

2022

(in $ millions)

 

 

 

 

 

 

 

Total net revenue

1,924

 

 

1,767

 

 

7,583

 

7,207

Change in deferred net revenue (online-enabled games)

(346

)

 

(468

)

 

37

 

271

Total Net bookings

1,578

 

 

1,299

 

 

7,620

 

7,478

Business Outlook as of August 1, 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 $947 million to $1.087 billion.
  • Diluted earnings per share is expected to be approximately $3.42 to $3.92.
  • 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 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

4,248 to 4,368

 

(95

)

 

 

(13

)

 

(600

)

Income before provision for income taxes

1,393 to 1,598

 

160

 

 

 

13

 

 

605

 

Net income

947 to 1,087

 

 

 

 

 

 

 

 

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.

Second Quarter Fiscal Year 2024 Expectations – Ending September 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 ($125) million.
  • Net income is expected to be approximately $197 million to $243 million.
  • Diluted earnings per share is expected to be approximately $0.72 to $0.89.
  • The Company estimates a share count of 273 million for purposes of calculating second quarter fiscal 2024 diluted earnings per share.

Operational metric:

  • Net bookings2 is expected to be approximately $1.700 billion to $1.800 billion.

In addition, the following outlook for GAAP-based financial data3 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 September 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

 

 

 

(125

)

 

 

 

 

Cost of revenue

430 to 450

 

(15

)

 

 

 

 

 

 

Operating expense

1,110 to 1,120

 

(25

)

 

 

 

(10

)

 

(155

)

Income before provision for income taxes

290 to 358

 

40

 

 

(125

)

 

10

 

 

155

 

Net income

197 to 243

 

 

 

 

 

 

 

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

 

Diluted shares

273

 

 

 

 

 

 

 

 

*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 August 1, 2023 at 2:00 pm PT (5:00 pm ET) to review its results for the first quarter ended June 30, 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 August 15, 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 August 1, 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 I, Item 1A of Electronic Arts’ latest Annual Report on Form 10-K under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission.

These forward-looking statements are current as of August 1, 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 Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2023. 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 June 30, 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, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. 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, 2023.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

 

 

 

 

 

Three Months Ended
June 30,

 

 

2023

 

2022

 

Net revenue

1,924

 

1,767

 

Cost of revenue

368

 

314

 

Gross profit

1,556

 

1,453

 

Operating expenses:

 

 

 

Research and development

596

 

572

 

Marketing and sales

229

 

234

 

General and administrative

163

 

167

 

Amortization and impairment of intangibles

25

 

39

 

Restructuring

1

 

 

Total operating expenses

1,014

 

1,012

 

Operating income

542

 

441

 

Interest and other income (expense), net

14

 

(5

)

Income before provision for income taxes

556

 

436

 

Provision for income taxes

154

 

125

 

Net income

402

 

311

 

Earnings per share

 

 

 

Basic

1.48

 

1.11

 

Diluted

1.47

 

1.11

 

Number of shares used in computation

 

 

 

Basic

272

 

279

 

Diluted

274

 

281

 

Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on May 9, 2023 for the three months ended June 30, 2023 plus a comparison to the actuals for the three months ended June 30, 2022.

 

 

Three Months Ended June 30,

 

2023 Guidance (Mid-Point)

 

 

 

2023 Actuals

 

2022 Actuals

 

 

Variance

 

 

Net revenue

 

 

 

 

 

 

 

Net revenue

1,875

 

 

49

 

 

1,924

 

 

1,767

 

GAAP-based financial data

 

 

 

 

 

 

 

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

(325

)

 

(21

)

 

(346

)

 

(468

)

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

360

 

 

8

 

 

368

 

 

314

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(20

)

 

4

 

 

(16

)

 

(30

)

Stock-based compensation

 

 

(2

)

 

(2

)

 

(2

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,075

 

 

(61

)

 

1,014

 

 

1,012

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(25

)

 

 

 

(25

)

 

(39

)

Restructuring and related charges

(20

)

 

17

 

 

(3

)

 

 

Stock-based compensation

(140

)

 

12

 

 

(128

)

 

(123

)

Income before tax

 

 

 

 

 

 

 

Income before tax

445

 

 

111

 

 

556

 

 

436

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

45

 

 

(4

)

 

41

 

 

69

 

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

(325

)

 

(21

)

 

(346

)

 

(468

)

Restructuring and related charges

20

 

 

(17

)

 

3

 

 

 

Stock-based compensation

140

 

 

(10

)

 

130

 

 

125

 

Tax rate used for management reporting

19

%

 

 

 

19

%

 

19

%

Earnings per share

 

 

 

 

 

 

 

Basic

1.07

 

 

0.41

 

 

1.48

 

 

1.11

 

Diluted

1.06

 

 

0.41

 

 

1.47

 

 

1.11

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

275

 

 

(3

)

 

272

 

 

279

 

Diluted

277

 

 

(3

)

 

274

 

 

281

 

1 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations 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)

 

 

 

 

 

June 30, 2023

 

March 31, 20232

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

2,259

 

 

2,424

 

Short-term investments

343

 

 

343

 

Receivables, net

517

 

 

684

 

Other current assets

455

 

 

518

 

Total current assets

3,574

 

 

3,969

 

Property and equipment, net

545

 

 

549

 

Goodwill

5,381

 

 

5,380

 

Acquisition-related intangibles, net

577

 

 

618

 

Deferred income taxes, net

2,555

 

 

2,462

 

Other assets

451

 

 

481

 

TOTAL ASSETS

13,083

 

 

13,459

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

75

 

 

99

 

Accrued and other current liabilities

1,145

 

 

1,285

 

Deferred net revenue (online-enabled games)

1,580

 

 

1,901

 

Total current liabilities

2,800

 

 

3,285

 

Senior notes, net

1,880

 

 

1,880

 

Income tax obligations

681

 

 

607

 

Deferred income taxes, net

1

 

 

1

 

Other liabilities

387

 

 

393

 

Total liabilities

5,749

 

 

6,166

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

3

 

 

3

 

Retained earnings

7,406

 

 

7,357

 

Accumulated other comprehensive loss

(75

)

 

(67

)

Total stockholders’ equity

7,334

 

 

7,293

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,083

 

 

13,459

 

2 Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

 

 

 

 

 

Three Months Ended June 30,

 

2023

 

 

2022

 

OPERATING ACTIVITIES

 

 

 

Net income

402

 

 

311

 

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

 

 

 

Depreciation, amortization and accretion

88

 

 

114

 

Stock-based compensation

130

 

 

125

 

Change in assets and liabilities

 

 

 

Receivables, net

167

 

 

70

 

Other assets

96

 

 

(15

)

Accounts payable

(18

)

 

(16

)

Accrued and other liabilities

(92

)

 

(105

)

Deferred income taxes, net

(93

)

 

(86

)

Deferred net revenue (online-enabled games)

(321

)

 

(476

)

Net cash provided by (used in) operating activities

359

 

 

(78

)

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Capital expenditures

(45

)

 

(59

)

Proceeds from maturities and sales of short-term investments

151

 

 

87

 

Purchase of short-term investments

(150

)

 

(93

)

Net cash used in investing activities

(44

)

 

(65

)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Proceeds from issuance of common stock

 

 

1

 

Cash dividends paid

(52

)

 

(53

)

Cash paid to taxing authorities for shares withheld from employees

(105

)

 

(104

)

Repurchase and retirement of common stock

(325

)

 

(320

)

Net cash used in financing activities

(482

)

 

(476

)

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

2

 

 

(31

)

Change in cash and cash equivalents

(165

)

 

(650

)

Beginning cash and cash equivalents

2,424

 

 

2,732

 

Ending cash and cash equivalents

2,259

 

 

2,082

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

YOY %

 

FY23

 

FY23

 

FY23

 

FY23

 

FY24

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,767

 

 

1,904

 

 

1,881

 

 

1,874

 

 

1,924

 

 

9

%

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

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

(468

)

 

(150

)

 

461

 

 

72

 

 

(346

)

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,453

 

 

1,442

 

 

1,313

 

 

1,426

 

 

1,556

 

 

7

%

Gross profit (as a % of net revenue)

82

%

 

76

%

 

70

%

 

76

%

 

81

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

30

 

 

39

 

 

26

 

 

25

 

 

16

 

 

 

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

(468

)

 

(150

)

 

461

 

 

72

 

 

(346

)

 

 

Stock-based compensation

2

 

 

1

 

 

2

 

 

2

 

 

2

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

441

 

 

427

 

 

289

 

 

175

 

 

542

 

 

23

%

Operating income (as a % of net revenue)

25

%

 

22

%

 

15

%

 

9

%

 

28

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

69

 

 

82

 

 

76

 

 

51

 

 

41

 

 

 

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

(468

)

 

(150

)

 

461

 

 

72

 

 

(346

)

 

 

Restructuring and related charges

 

 

 

 

 

 

155

 

 

3

 

 

 

Stock-based compensation

125

 

 

140

 

 

141

 

 

142

 

 

130

 

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

311

 

 

299

 

 

204

 

 

(12

)

 

402

 

 

29

%

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

18

%

 

16

%

 

11

%

 

(1

%)

 

21

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

69

 

 

82

 

 

76

 

 

51

 

 

41

 

 

 

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

(468

)

 

(150

)

 

461

 

 

72

 

 

(346

)

 

 

Restructuring and related charges

 

 

 

 

 

 

155

 

 

3

 

 

 

Stock-based compensation

125

 

 

140

 

 

141

 

 

142

 

 

130

 

 

 

Tax rate used for management reporting

19

%

 

19

%

 

19

%

 

19

%

 

19

%

 

 

Diluted earnings (loss) per share

1.11

 

 

1.07

 

 

0.73

 

 

(0.04

)

 

1.47

 

 

32

%

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

279

 

 

278

 

 

276

 

 

274

 

 

272

 

 

 

Diluted

281

 

 

279

 

 

278

 

 

274

 

 

274

 

 

 

Anti-dilutive shares excluded for loss position3

 

 

 

 

 

 

1

 

 

 

 

 

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

 

 

3 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

YOY %

 

 

FY23

 

FY23

 

FY23

 

FY23

 

FY24

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

 

237

 

 

328

 

 

423

 

 

274

 

 

301

 

 

27

%

Packaged goods

 

104

 

 

274

 

 

199

 

 

98

 

 

142

 

 

37

%

Full game

 

341

 

 

602

 

 

622

 

 

372

 

 

443

 

 

30

%

Live services and other

 

1,426

 

 

1,302

 

 

1,259

 

 

1,502

 

 

1,481

 

 

4

%

Total net revenue

 

1,767

 

 

1,904

 

 

1,881

 

 

1,874

 

 

1,924

 

 

9

%

Full game

 

19

%

 

32

%

 

33

%

 

20

%

 

23

%

 

 

Live services and other

 

81

%

 

68

%

 

67

%

 

80

%

 

77

%

 

 

Total net revenue %

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

 

(111

)

 

17

 

 

45

 

 

(24

)

 

(21

)

 

 

Packaged goods

 

(65

)

 

16

 

 

20

 

 

(24

)

 

(21

)

 

 

Full game

 

(176

)

 

33

 

 

65

 

 

(48

)

 

(42

)

 

 

Live services and other

 

(292

)

 

(183

)

 

396

 

 

120

 

 

(304

)

 

 

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

 

(468

)

 

(150

)

 

461

 

 

72

 

 

(346

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

 

Console

 

1,042

 

 

1,161

 

 

1,152

 

 

1,088

 

 

1,167

 

 

12

%

PC & Other

 

402

 

 

423

 

 

435

 

 

469

 

 

451

 

 

12

%

Mobile

 

323

 

 

320

 

 

294

 

 

317

 

 

306

 

 

(5

%)

Total net revenue

 

1,767

 

 

1,904

 

 

1,881

 

 

1,874

 

 

1,924

 

 

9

%

GAAP-based financial data

 

 

 

 

 

 

Console

 

(405

)

 

(134

)

 

423

 

 

11

 

 

(266

)

 

 

PC & Other

 

(54

)

 

8

 

 

29

 

 

47

 

 

(77

)

 

 

Mobile

 

(9

)

 

(24

)

 

9

 

 

14

 

 

(3

)

 

 

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

 

(468

)

 

(150

)

 

461

 

 

72

 

 

(346

)

 

 

1 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

YOY %

 

FY23

 

FY23

 

FY23

 

FY23

 

FY24

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

(78

)

 

(112

)

 

1,123

 

617

 

359

 

560

%

Operating cash flow - TTM

1,964

 

 

1,788

 

 

1,377

 

1,550

 

1,987

 

1

%

Capital expenditures

59

 

 

53

 

 

48

 

47

 

45

 

(24

%)

Capital expenditures - TTM

203

 

 

213

 

 

213

 

207

 

193

 

(5

%)

Repurchase and retirement of common stock

320

 

 

325

 

 

325

 

325

 

325

 

2

%

Cash dividends paid

53

 

 

53

 

 

52

 

52

 

52

 

(2

%)

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

44

 

 

45

 

 

46

 

58

 

49

 

11

%

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

2,082

 

 

1,539

 

 

2,202

 

2,424

 

2,259

 

 

Short-term investments

334

 

 

335

 

 

351

 

343

 

343

 

 

Cash and cash equivalents, and short-term investments

2,416

 

 

1,874

 

 

2,553

 

2,767

 

2,602

 

8

%

Receivables, net

579

 

 

919

 

 

836

 

684

 

517

 

(11

%)

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

2

 

 

1

 

 

2

 

2

 

2

 

 

Research and development

81

 

 

95

 

 

95

 

96

 

93

 

 

Marketing and sales

13

 

 

16

 

 

15

 

15

 

11

 

 

General and administrative

29

 

 

28

 

 

29

 

29

 

24

 

 

Total stock-based compensation

125

 

 

140

 

 

141

 

142

 

130

 

 

RESTRUCTURING AND RELATED CHARGES

 

 

 

 

 

 

 

 

 

 

 

Restructuring

 

 

 

 

 

111

 

1

 

 

Office space reductions

 

 

 

 

 

44

 

2

 

 

Total restructuring and related charges

 

 

 

 

 

155

 

3

 

 

 

Katie Burke
Director, Investor Relations
650-628-7605
katieburke@ea.com

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

Source: Electronic Arts Inc.