Electronic Arts Reports Strong Q1 FY24 Results
Record Q1 Net Bookings, up 21% year-over-year, driven by EA SPORTS FIFA Momentum and Star Wars Jedi: Survivor
Redwood City, CA — Electronic Arts Inc. 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. |
|||||||||||||
C
|
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 |
|||
|
|
||||
|
|
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) |
|||||||||||
|
|
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 |
|
|
|
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