Electronic Arts Reports Q3 FY25 Results
Redwood City, CA.— Electronics Arts reported third quarter earnings.
“The record success of our EA SPORTS FC 25 Team of the Year event demonstrates our creative teams’ ability to adapt, innovate, and execute at scale,” said Andrew Wilson, CEO of Electronic Arts. “As we build on this momentum across EA, we are confident in a return to growth in FY26 and beyond as we bring our next wave of iconic entertainment to players and fans worldwide.”
“Today we announced plans for a $1 billion accelerated share repurchase, which is expected to bring total stock repurchases to $2.5 billion within the first year of our $5 billion authorization,” said Stuart Canfield, CFO of Electronic Arts. “This reflects both our confidence in EA’s long-term strategy and our ability to balance investment in growth with capital returns.”
Selected Operating Highlights and Metrics
- Net bookings1 for the quarter totaled $2.215 billion.
- Our Global Football franchise net bookings have grown more than 70% over the last five fiscal years, making it one of the biggest sports entertainment properties in the world.
- Our gameplay update for EA SPORTS FC™ 25, released on January 16th, drove engagement levels above our expectations, with over two million Ultimate Team players re-activated from earlier in the launch cycle.
- EA SPORTS FC Mobile saw a double-digit increase in new players and engagement year-over-year.
- American Football saw double-digit growth in weekly active users year-over-year in the third quarter, and remains on pace to surpass $1 billion in net bookings for fiscal year 2025.
- EA unveiled Battlefield™ Labs, a new initiative allowing player-driven testing and innovation ahead of the franchise’s expected fiscal year 2026 release.
Selected Financial Highlights and Metrics
- Net revenue was $1.883 billion.
- Net cash provided by operating activities was $1.176 billion for the quarter and $2.110 billion for the trailing twelve months.
- EA repurchased 2.4 million shares for $375 million during the quarter under the stock repurchase program, bringing the total for the trailing twelve months to 10.1 million shares for $1.450 billion.
- EA plans for an accelerated stock repurchase program of $1 billion, which is expected to bring the total stockholder return to $2.5 billion within the first year of our $5 billion authorization.
Dividend
EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on March 19, 2025 to stockholders of record as of the close of business on February 26, 2025.
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Quarterly Financial Highlights |
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Three Months Ended |
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December 31, |
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(in $ millions, except per share amounts) |
2024 |
|
2023 |
|
Full game |
599 |
|
618 |
|
Live services and other |
1,284 |
|
1,327 |
|
Total net revenue |
1,883 |
|
1,945 |
|
|
|
|
|
|
Net income |
293 |
|
290 |
|
Diluted earnings per share |
1.11 |
|
1.07 |
|
|
|
|
|
|
Operating cash flow |
1,176 |
|
1,264 |
|
|
|
|
|
|
Value of shares repurchased |
375 |
|
325 |
|
Number of shares repurchased |
2.4 |
|
2.5 |
|
|
|
|
|
|
Cash dividend paid |
50 |
|
51 |
|
|
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Trailing Twelve Months Financial Highlights |
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Twelve Months Ended |
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December 31, |
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(in $ millions) |
2024 |
|
2023 |
|
Full game |
1,898 |
|
2,054 |
|
Live services and other |
5,449 |
|
5,603 |
|
Total net revenue |
7,347 |
|
7,657 |
|
|
|
|
|
|
Net income |
1,049 |
|
1,079 |
|
|
|
|
|
|
Operating cash flow |
2,110 |
|
2,352 |
|
|
|
|
|
|
Value of shares repurchased |
1,450 |
|
1,300 |
|
Number of shares repurchased |
10.1 |
|
10.4 |
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Operating Metric |
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The following is a calculation of our total net bookings1 for the periods presented: |
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Three Months Ended |
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Twelve Months Ended |
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(in $ millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Total net revenue |
1,883 |
|
1,945 |
|
7,347 |
|
|
7,657 |
|
Change in deferred net revenue (online-enabled games) |
332 |
|
421 |
|
(125 |
) |
|
53 |
|
Total net bookings |
2,215 |
|
2,366 |
|
7,222 |
|
|
7,710 |
Business Outlook as of February 4, 2025
Fiscal Year 2025 Expectations – Ending March 31, 2025
Financial outlook metrics:
- Net revenue is expected to be approximately $7.250 billion to $7.400 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately ($250) million.
- Net income is expected to be approximately $1.038 billion to $1.130 billion.
- Diluted earnings per share is expected to be approximately $3.90 to $4.25.
- Operating cash flow is expected to be approximately $1.800 billion to $1.900 billion.
- The Company estimates a share count of 266 million for purposes of calculating diluted earnings per share.
Operational outlook metric:
- Net bookings1 is expected to be approximately $7.000 billion to $7.150 billion.
Fourth Quarter Fiscal Year 2025 Expectations – Ending March 31, 2025
Financial outlook metrics:
- Net revenue is expected to be approximately $1.682 billion to $1.832 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately ($238) million.
- Net income is expected to be approximately $171 million to $263 million.
- Diluted earnings per share is expected to be approximately $0.65 to $1.00.
- The Company estimates a share count of 264 million for purposes of calculating diluted earnings per share.
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on October 29, 2024 for the three months ended December 31, 2024 plus a comparison to the actuals for the three months ended December 31, 2023.
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Three Months Ended December 31, |
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2024 Guidance |
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|
2024 |
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2023 |
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Variance |
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Net revenue |
|
|
|
|
|
|
|
||||
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Net revenue |
1,950 |
|
|
(67 |
) |
|
1,883 |
|
|
1,945 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
|
Change in deferred net revenue (online-enabled games)1 |
525 |
|
|
(193 |
) |
|
332 |
|
|
421 |
|
|
Cost of revenue |
|
|
|
|
|
|
|
||||
|
Cost of revenue |
465 |
|
|
(9 |
) |
|
456 |
|
|
529 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
|
Acquisition-related expenses |
(10 |
) |
|
— |
|
|
(10 |
) |
|
(16 |
) |
|
Stock-based compensation |
(5 |
) |
|
2 |
|
|
(3 |
) |
|
(2 |
) |
|
Operating expenses |
|
|
|
|
|
|
|
||||
|
Operating expenses |
1,125 |
|
|
(75 |
) |
|
1,050 |
|
|
1,051 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
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Acquisition-related expenses |
(20 |
) |
|
4 |
|
|
(16 |
) |
|
(21 |
) |
|
Restructuring and related charges |
(5 |
) |
|
5 |
|
|
— |
|
|
— |
|
|
Stock-based compensation |
(165 |
) |
|
5 |
|
|
(160 |
) |
|
(149 |
) |
|
Income before tax |
|
|
|
|
|
|
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Income before tax |
371 |
|
|
34 |
|
|
405 |
|
|
382 |
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
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Acquisition-related expenses |
30 |
|
|
(4 |
) |
|
26 |
|
|
37 |
|
|
Change in deferred net revenue (online-enabled games)1 |
525 |
|
|
(193 |
) |
|
332 |
|
|
421 |
|
|
Restructuring and related charges |
5 |
|
|
(5 |
) |
|
— |
|
|
— |
|
|
Stock-based compensation |
170 |
|
|
(7 |
) |
|
163 |
|
|
151 |
|
|
Tax rate used for management reporting |
19 |
% |
|
|
|
19 |
% |
|
19 |
% |
|
|
Earnings per share |
|
|
|
|
|
|
|
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|
Basic |
0.94 |
|
|
0.18 |
|
|
1.12 |
|
|
1.08 |
|
|
Diluted |
0.94 |
|
|
0.17 |
|
|
1.11 |
|
|
1.07 |
|
|
Number of shares used in computation |
|
|
|
|
|
|
|
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|
Basic |
264 |
|
|
(2 |
) |
|
262 |
|
|
269 |
|
|
Diluted |
266 |
|
|
(1 |
) |
|
265 |
|
|
271 |
|
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.
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ELECTRONIC ARTS INC. AND SUBSIDIARIES |
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Unaudited Condensed Consolidated Balance Sheets |
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(in $ millions) |
|||||
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|
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December 31, 2024 |
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March 31, 20242 |
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ASSETS |
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|
|
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Current assets: |
|
|
|
||
|
Cash and cash equivalents |
2,776 |
|
|
2,900 |
|
|
Short-term investments |
379 |
|
|
362 |
|
|
Receivables, net |
742 |
|
|
565 |
|
|
Other current assets |
375 |
|
|
420 |
|
|
Total current assets |
4,272 |
|
|
4,247 |
|
|
Property and equipment, net |
566 |
|
|
578 |
|
|
Goodwill |
5,376 |
|
|
5,379 |
|
|
Acquisition-related intangibles, net |
320 |
|
|
400 |
|
|
Deferred income taxes, net |
2,467 |
|
|
2,380 |
|
|
Other assets |
450 |
|
|
436 |
|
|
TOTAL ASSETS |
13,451 |
|
|
13,420 |
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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|
|
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Current liabilities: |
|
|
|
||
|
Accounts payable, accrued, and other current liabilities |
1,298 |
|
|
1,276 |
|
|
Deferred net revenue (online-enabled games) |
1,806 |
|
|
1,814 |
|
|
Total current liabilities |
3,104 |
|
|
3,090 |
|
|
Senior notes, net |
1,883 |
|
|
1,882 |
|
|
Income tax obligations |
573 |
|
|
497 |
|
|
Other liabilities |
479 |
|
|
438 |
|
|
Total liabilities |
6,039 |
|
|
5,907 |
|
|
|
|
|
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Stockholders’ equity: |
|
|
|
||
|
Common stock |
3 |
|
|
3 |
|
|
Retained earnings |
7,472 |
|
|
7,582 |
|
|
Accumulated other comprehensive loss |
(63 |
) |
|
(72 |
) |
|
Total stockholders’ equity |
7,412 |
|
|
7,513 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
13,451 |
|
|
13,420 |
|
2Derived from audited consolidated financial statements.
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ELECTRONIC ARTS INC. AND SUBSIDIARIES |
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Unaudited Condensed Consolidated Statements of Cash Flows |
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(in $ millions) |
|||||||
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|
|
|
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|
Three |
|
Nine |
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
293 |
|
290 |
|
867 |
|
1,091 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, amortization, accretion and impairment |
75 |
|
82 |
|
277 |
|
255 |
|
Stock-based compensation |
163 |
|
151 |
|
480 |
|
436 |
|
Change in assets and liabilities |
|
|
|
|
|
|
|
|
Receivables, net |
268 |
|
183 |
|
(179) |
|
(184) |
|
Other assets |
41 |
|
112 |
|
21 |
|
186 |
|
Accounts payable, accrued, and other liabilities |
44 |
|
45 |
|
161 |
|
(155) |
|
Deferred income taxes, net |
(39) |
|
(20) |
|
(89) |
|
88 |
|
Deferred net revenue (online-enabled games) |
331 |
|
421 |
|
(8) |
|
18 |
|
Net cash provided by operating activities |
1,176 |
|
1,264 |
|
1,530 |
|
1,735 |
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Capital expenditures |
(50) |
|
(52) |
|
(167) |
|
(148) |
|
Proceeds from maturities and sales of short-term investments |
127 |
|
148 |
|
366 |
|
450 |
|
Purchase of short-term investments |
(139) |
|
(147) |
|
(376) |
|
(460) |
|
Net cash used in investing activities |
(62) |
|
(51) |
|
(177) |
|
(158) |
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
1 |
|
3 |
|
43 |
|
43 |
|
Cash dividends paid |
(50) |
|
(51) |
|
(151) |
|
(154) |
|
Cash paid to taxing authorities for shares withheld from employees |
(72) |
|
(58) |
|
(211) |
|
(178) |
|
Common stock repurchases and excise taxes paid |
(383) |
|
(325) |
|
(1,133) |
|
(975) |
|
Net cash used in financing activities |
(504) |
|
(431) |
|
(1,452) |
|
(1,264) |
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange on cash and cash equivalents |
(31) |
|
14 |
|
(25) |
|
5 |
|
Change in cash and cash equivalents |
579 |
|
796 |
|
(124) |
|
318 |
|
Beginning cash and cash equivalents |
2,197 |
|
1,946 |
|
2,900 |
|
2,424 |
|
Ending cash and cash equivalents |
2,776 |
|
2,742 |
|
2,776 |
|
2,742 |
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
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|
Unaudited Supplemental Financial Information and Business Metrics |
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(in $ millions, except per share data) |
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|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
YOY % |
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|
FY24 |
|
FY24 |
|
FY25 |
|
FY25 |
|
FY25 |
|
Change |
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|
Net revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net revenue |
1,945 |
|
|
1,779 |
|
|
1,660 |
|
|
2,025 |
|
|
1,883 |
|
|
(3 |
%) |
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Change in deferred net revenue (online-enabled games)1 |
421 |
|
|
(113 |
) |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gross profit |
1,416 |
|
|
1,422 |
|
|
1,397 |
|
|
1,569 |
|
|
1,427 |
|
|
1 |
% |
|
Gross profit (as a % of net revenue) |
73 |
% |
|
80 |
% |
|
84 |
% |
|
78 |
% |
|
76 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Acquisition-related expenses |
16 |
|
|
29 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
421 |
|
|
(113 |
) |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
|
|
|
Stock-based compensation |
2 |
|
|
2 |
|
|
4 |
|
|
4 |
|
|
3 |
|
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating income |
365 |
|
|
234 |
|
|
364 |
|
|
384 |
|
|
377 |
|
|
3 |
% |
|
Operating income (as a % of net revenue) |
19 |
% |
|
13 |
% |
|
22 |
% |
|
19 |
% |
|
20 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Acquisition-related expenses |
37 |
|
|
101 |
|
|
27 |
|
|
27 |
|
|
26 |
|
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
421 |
|
|
(113 |
) |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
|
|
|
Restructuring and related charges |
— |
|
|
61 |
|
|
6 |
|
|
52 |
|
|
— |
|
|
|
|
|
Stock-based compensation |
151 |
|
|
148 |
|
|
143 |
|
|
174 |
|
|
163 |
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income |
290 |
|
|
182 |
|
|
280 |
|
|
294 |
|
|
293 |
|
|
1 |
% |
|
Net income (as a % of net revenue) |
15 |
% |
|
10 |
% |
|
17 |
% |
|
15 |
% |
|
16 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Acquisition-related expenses |
37 |
|
|
101 |
|
|
27 |
|
|
27 |
|
|
26 |
|
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
421 |
|
|
(113 |
) |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
|
|
|
Restructuring and related charges |
— |
|
|
61 |
|
|
6 |
|
|
52 |
|
|
— |
|
|
|
|
|
Stock-based compensation |
151 |
|
|
148 |
|
|
143 |
|
|
174 |
|
|
163 |
|
|
|
|
|
Tax rate used for management reporting |
19 |
% |
|
19 |
% |
|
19 |
% |
|
19 |
% |
|
19 |
% |
|
|
|
|
Diluted earnings per share |
1.07 |
|
|
0.67 |
|
|
1.04 |
|
|
1.11 |
|
|
1.11 |
|
|
4 |
% |
|
Number of shares used in computation |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
269 |
|
|
267 |
|
|
266 |
|
|
264 |
|
|
262 |
|
|
|
|
|
Diluted |
271 |
|
|
270 |
|
|
268 |
|
|
266 |
|
|
265 |
|
|
|
|
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 |
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Unaudited Supplemental Financial Information and Business Metrics |
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(in $ millions) |
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
YOY % |
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|
|
|
FY24 |
|
FY24 |
|
FY25 |
|
FY25 |
|
FY25 |
|
Change |
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|
QUARTERLY NET REVENUE PRESENTATIONS |
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|
|
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|
|
|
|
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|
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|
Net revenue by composition |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Full game downloads |
|
431 |
|
|
265 |
|
|
190 |
|
|
475 |
|
|
446 |
|
|
3 |
% |
|
Packaged goods |
|
187 |
|
|
68 |
|
|
60 |
|
|
241 |
|
|
153 |
|
|
(18 |
%) |
|
Full game |
|
618 |
|
|
333 |
|
|
250 |
|
|
716 |
|
|
599 |
|
|
(3 |
%) |
|
Live services and other |
|
1,327 |
|
|
1,446 |
|
|
1,410 |
|
|
1,309 |
|
|
1,284 |
|
|
(3 |
%) |
|
Total net revenue |
|
1,945 |
|
|
1,779 |
|
|
1,660 |
|
|
2,025 |
|
|
1,883 |
|
|
(3 |
%) |
|
Full game |
|
32 |
% |
|
19 |
% |
|
15 |
% |
|
35 |
% |
|
32 |
% |
|
|
|
|
Live services and other |
|
68 |
% |
|
81 |
% |
|
85 |
% |
|
65 |
% |
|
68 |
% |
|
|
|
|
Total net revenue % |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Full game downloads |
|
32 |
|
|
(37 |
) |
|
(47 |
) |
|
70 |
|
|
25 |
|
|
|
|
|
Packaged goods |
|
4 |
|
|
(37 |
) |
|
(35 |
) |
|
46 |
|
|
9 |
|
|
|
|
|
Full game |
|
36 |
|
|
(74 |
) |
|
(82 |
) |
|
116 |
|
|
34 |
|
|
|
|
|
Live services and other |
|
385 |
|
|
(39 |
) |
|
(316 |
) |
|
(62 |
) |
|
298 |
|
|
|
|
|
Total change in deferred net revenue (online-enabled games) by composition1 |
|
421 |
|
|
(113 |
) |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net revenue by platform |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Console |
|
1,229 |
|
|
1,049 |
|
|
1,005 |
|
|
1,374 |
|
|
1,215 |
|
|
(1 |
%) |
|
PC & Other |
|
420 |
|
|
423 |
|
|
365 |
|
|
364 |
|
|
392 |
|
|
(7 |
%) |
|
Mobile |
|
296 |
|
|
307 |
|
|
290 |
|
|
287 |
|
|
276 |
|
|
(7 |
%) |
|
Total net revenue |
|
1,945 |
|
|
1,779 |
|
|
1,660 |
|
|
2,025 |
|
|
1,883 |
|
|
(3 |
%) |
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Console |
|
377 |
|
|
(94 |
) |
|
(328 |
) |
|
108 |
|
|
275 |
|
|
|
|
|
PC & Other |
|
33 |
|
|
(10 |
) |
|
(70 |
) |
|
(37 |
) |
|
33 |
|
|
|
|
|
Mobile |
|
11 |
|
|
(9 |
) |
|
— |
|
|
(17 |
) |
|
24 |
|
|
|
|
|
Total change in deferred net revenue (online-enabled games) by platform1 |
|
421 |
|
|
(113 |
) |
|
(398 |
) |
|
54 |
|
|
332 |
|
|
|
|
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.
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ELECTRONIC ARTS INC. AND SUBSIDIARIES |
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|
Unaudited Supplemental Financial Information and Business Metrics |
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|
(in $ millions) |
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|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
YOY % |
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|
FY24 |
|
FY24 |
|
FY25 |
|
FY25 |
|
FY25 |
|
Change |
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|
CASH FLOW DATA |
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|
|
|
|
|
|
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|
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Investing cash flow |
(51 |
) |
|
(49 |
) |
|
(69 |
) |
|
(46 |
) |
|
(62 |
) |
|
|
|
|
Investing cash flow – TTM |
(195 |
) |
|
(207 |
) |
|
(232 |
) |
|
(215 |
) |
|
(226 |
) |
|
(16 |
%) |
|
Financing cash flow |
(431 |
) |
|
(360 |
) |
|
(546 |
) |
|
(402 |
) |
|
(504 |
) |
|
|
|
|
Financing cash flow – TTM |
(1,622 |
) |
|
(1,624 |
) |
|
(1,688 |
) |
|
(1,739 |
) |
|
(1,812 |
) |
|
(12 |
%) |
|
Operating cash flow |
1,264 |
|
|
580 |
|
|
120 |
|
|
234 |
|
|
1,176 |
|
|
|
|
|
Operating cash flow – TTM |
2,352 |
|
|
2,315 |
|
|
2,076 |
|
|
2,198 |
|
|
2,110 |
|
|
(10 |
%) |
|
Capital expenditures |
52 |
|
|
51 |
|
|
67 |
|
|
50 |
|
|
50 |
|
|
|
|
|
Capital expenditures – TTM |
195 |
|
|
199 |
|
|
221 |
|
|
220 |
|
|
218 |
|
|
12 |
% |
|
Free cash flow3 |
1,212 |
|
|
529 |
|
|
53 |
|
|
184 |
|
|
1,126 |
|
|
|
|
|
Free cash flow3 – TTM |
2,157 |
|
|
2,116 |
|
|
1,855 |
|
|
1,978 |
|
|
1,892 |
|
|
(12 |
%) |
|
Common stock repurchases and excise taxes paid |
325 |
|
|
325 |
|
|
375 |
|
|
375 |
|
|
383 |
|
|
18 |
% |
|
Cash dividends paid |
51 |
|
|
51 |
|
|
50 |
|
|
51 |
|
|
50 |
|
|
(2 |
%) |
|
DEPRECIATION |
|
|
|
|
|
|
|
|
|
|
|
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|
Depreciation expense |
48 |
|
|
50 |
|
|
51 |
|
|
51 |
|
|
51 |
|
|
6 |
% |
|
BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
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|
Cash and cash equivalents |
2,742 |
|
|
2,900 |
|
|
2,400 |
|
|
2,197 |
|
|
2,776 |
|
|
|
|
|
Short-term investments |
362 |
|
|
362 |
|
|
366 |
|
|
366 |
|
|
379 |
|
|
|
|
|
Cash and cash equivalents, and short-term investments |
3,104 |
|
|
3,262 |
|
|
2,766 |
|
|
2,563 |
|
|
3,155 |
|
|
2 |
% |
|
Receivables, net |
867 |
|
|
565 |
|
|
433 |
|
|
1,012 |
|
|
742 |
|
|
(14 |
%) |
|
STOCK-BASED COMPENSATION |
|
|
|
|
|
|
|
|
|
|
|
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|
Cost of revenue |
2 |
|
|
2 |
|
|
4 |
|
|
4 |
|
|
3 |
|
|
|
|
|
Research and development |
108 |
|
|
104 |
|
|
101 |
|
|
122 |
|
|
119 |
|
|
|
|
|
Marketing and sales |
14 |
|
|
14 |
|
|
12 |
|
|
16 |
|
|
14 |
|
|
|
|
|
General and administrative |
27 |
|
|
28 |
|
|
26 |
|
|
32 |
|
|
27 |
|
|
|
|
|
Total stock-based compensation |
151 |
|
|
148 |
|
|
143 |
|
|
174 |
|
|
163 |
|
|
|
|
|
RESTRUCTURING AND RELATED CHARGES |
|
|
|
|
|
|
|
|
|
|
|
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|
Restructuring |
— |
|
|
59 |
|
|
2 |
|
|
51 |
|
|
1 |
|
|
|
|
|
Office space reductions |
— |
|
|
2 |
|
|
4 |
|
|
1 |
|
|
(1 |
) |
|
|
|
|
Total restructuring and related charges |
— |
|
|
61 |
|
|
6 |
|
|
52 |
|
|
— |
|
|
|
|
3Free cash flow is defined as Operating cash flow less Capital expenditures.
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ELECTRONIC ARTS INC. AND SUBSIDIARIES |
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Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures |
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(in $ millions) |
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The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the three months ended December 31, 2024 plus a comparison to the actuals for the three months ended December 31, 2023. |
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Three Months Ended |
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|
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|
|
December 31, |
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|
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|
|
2024 |
|
2023 |
|
YOY % |
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|
|
|
|
|
|
|
||||
|
Net revenue |
1,883 |
|
|
1,945 |
|
|
(3 |
%) |
|
|
|
|
|
|
|
|
||||
|
GAAP operating income |
377 |
|
|
365 |
|
|
3 |
% |
|
|
Acquisition-related expenses |
26 |
|
|
37 |
|
|
|
||
|
Stock-based compensation |
163 |
|
|
151 |
|
|
|
||
|
Non-GAAP operating income |
566 |
|
|
553 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
||||
|
GAAP operating margin |
20.0 |
% |
|
18.8 |
% |
|
|
||
|
Non-GAAP operating margin |
30.1 |
% |
|
28.4 |
% |
|
|
||
|
Impact from change in deferred net revenue (online-enabled games) |
1040 bps |
|
1280 bps |
|
|
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|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
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|
GAAP Guidance to Non-GAAP Guidance |
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(in $ millions) |
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The following table provides GAAP to Non-GAAP reconciliation of the Company’s FY25 guidance. |
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|
Twelve Months Ending March 31, 2025 |
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|
GAAP-Based Financial Data |
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|
GAAP-Based Financial Data |
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|
|
|
A |
|
|
B |
|
C |
|
D |
|
|
|
|
|
|
|
|
GAAP |
|
Acquisition- |
|
Restructuring and related |
|
Stock-based |
|
Non-GAAP |
|
Change in deferred |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
7,250 |
to |
7,400 |
|
— |
|
— |
|
— |
|
7,250 |
to |
7,400 |
|
(250) |
|
Cost of revenue |
1,480 |
to |
1,490 |
|
(40) |
|
— |
|
(15) |
|
1,425 |
to |
1,435 |
|
— |
|
Operating expense |
4,380 |
to |
4,390 |
|
(70) |
|
(65) |
|
(630) |
|
3,615 |
to |
3,625 |
|
— |
|
Operating margin |
19.2% |
to |
20.5% |
|
150 bps |
|
90 bps |
|
880 bps |
|
30.5% |
to |
31.6% |
|
(250) bps to (240) bps |
|
Income before provision for income taxes |
1,483 |
to |
1,614 |
|
110 |
|
65 |
|
645 |
|
2,303 |
to |
2,434 |
|
(250) |
|
Net income4 |
1,038 |
to |
1,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
266 |
|
|
|
|
|
|
|
|
|
|
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|
||
4 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.
5 The mid-point of the range has been used for purposes of presenting reconciling items to operating margin.
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
|||||||||||
|
GAAP-Based Financial Data for Guidance |
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|
(in $ millions) |
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|
The following table provides supplemental information to the Company’s Q4 FY25 guidance. |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending March 31, 2025 |
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|
GAAP-Based Financial Data |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Guidance |
|
Acquisition- |
|
Restructuring |
|
Stock-based |
|
Change in |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
1,682 |
to |
1,832 |
|
— |
|
— |
|
— |
|
(238) |
|
Cost of revenue |
305 |
to |
315 |
|
(10) |
|
— |
|
(4) |
|
— |
|
Operating expense |
1,112 |
to |
1,122 |
|
(20) |
|
(7) |
|
(161) |
|
— |
|
Income before provision for income taxes |
285 |
to |
416 |
|
30 |
|
7 |
|
165 |
|
(238) |
|
Net income4 |
171 |
to |
263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
264 |
|
|
|
|
|
|
|
|
||
4 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.
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