Le Lézard
Classified in: Science and technology, Business
Subjects: EARNINGS, Dividend, Conference Call, Webcast

Electronic Arts Reports Strong Q3 FY24 Results


Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third quarter ended December 31, 2023.

"Our incredible teams delivered a strong Q3, entertaining hundreds of millions of people across our portfolio, driving deep engagement and record live services," said Andrew Wilson, CEO of EA. "We remain focused on growing our biggest franchises and delivering new, innovative games and experiences for our global communities."

"EA SPORTS FC outperformed expectations again this quarter, delivering 7% year-over-year net bookings growth, as momentum continued through the FC brand transition," said Stuart Canfield, CFO of EA. "We will continue to build upon the strength within our portfolio, while prioritizing investments in our largest opportunities for multi-year growth."

Selected Operating Highlights and Metrics1

Selected Financial Highlights and Metrics

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 20, 2024 to shareholders of record as of the close of business on February 28, 2024.

Quarterly Financial Highlights

 

Three Months Ended

 

December 31,

(in $ millions, except per share amounts)

2023

 

2022

Full game

618

 

622

Live services and other

1,327

 

1,259

Total net revenue

1,945

 

1,881

 

 

 

 

Net income

290

 

204

Diluted earnings per share

1.07

 

0.73

 

 

 

 

Operating cash flow

1,264

 

1,123

 

 

 

 

Value of shares repurchased

325

 

325

Number of shares repurchased

2.5

 

2.6

 

 

 

 

Cash dividend paid

51

 

52

 

 

 

 

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 December 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

1,945

 

?

 

 

421

 

?

 

?

 

Cost of revenue

529

 

(16

)

 

?

 

?

 

(2

)

Gross profit

1,416

 

16

 

 

421

 

?

 

2

 

Total operating expenses

1,051

 

(21

)

 

?

 

?

 

(149

)

Operating income

365

 

37

 

 

421

 

?

 

151

 

Interest and other income (expense), net

17

 

?

 

 

?

 

?

 

?

 

Income before provision for income taxes

382

 

37

 

 

421

 

?

 

151

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

Diluted

271

 

 

 

 

 

 

 

 

Trailing Twelve Months Financial Highlights

 

Twelve Months Ended

 

December 31,

(in $ millions)

2023

 

2022

Full game

2,054

 

2,003

Live services and other

5,603

 

5,374

Total net revenue

7,657

 

7,377

 

 

 

Net income

1,079

 

1,039

 

 

 

 

Operating cash flow

2,352

 

1,377

 

 

 

Value of shares repurchased

1,300

 

1,295

Number of shares repurchased

10.4

 

10.2

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 December 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

7,657

 

?

 

 

53

 

?

 

 

?

 

Cost of revenue

1,801

 

(72

)

 

?

 

?

 

 

(8

)

Gross profit

5,856

 

72

 

 

53

 

?

 

 

8

 

Total operating expenses

4,397

 

(96

)

 

?

 

(158

)

 

(570

)

Operating income

1,459

 

168

 

 

53

 

158

 

 

578

 

Interest and other income (expense), net

51

 

?

 

 

?

 

?

 

 

?

 

Income before provision for income taxes

1,510

 

168

 

 

53

 

158

 

 

578

 

Operating Metric

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

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

(in $ millions)

2023

 

2022

 

2023

 

2022

Total net revenue

1,945

 

1,881

 

7,657

 

7,377

Change in deferred net revenue (online-enabled games)

421

 

461

 

53

 

(231)

Total net bookings

2,366

 

2,342

 

7,710

 

7,146

Business Outlook as of January 30, 2024

Fourth Quarter Fiscal Year 2024 Expectations ? Ending March 31, 2024

Financial outlook metrics:

Operational outlook metric:

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 Ended March 31, 2024

 

 

 

GAAP-Based Financial Data*

(in $ millions)

GAAP
Guidance
Range

 

Acquisition-related
expenses**

 

Change in deferred
net revenue
(online-enabled
games)

 

Restructuring
and related
charges

 

Stock-based
compensation

Total net revenue

1,625 to 1,925

 

?

 

 

?

 

?

 

?

 

Cost of revenue

360 to 410

 

(30

)

 

?

 

?

 

(5

)

Operating expense

1,125 to 1,205

 

(75

)

 

?

 

?

 

(150

)

Income before provision for income taxes

158 to 325

 

105

 

 

?

 

?

 

155

 

Net income

54 to 183

 

 

 

 

 

 

 

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

 

Diluted shares

271

 

 

 

 

 

 

 

 

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

** Subsequent to December 31, 2023, we impaired certain acquisition-related intangible assets totaling approximately $70 million that will be recorded in the fourth quarter of fiscal year 2024.

Fiscal Year 2024 Expectations ? Ending March 31, 2024

Financial outlook metrics:

Operational outlook metric:

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 Ended March 31, 2024

 

 

 

GAAP-Based Financial Data*

(in $ millions)

GAAP
Guidance
Range

 

Acquisition-related
expenses**

 

Change in deferred
net revenue
(online-enabled
games)

 

Restructuring
and related
charges

 

Stock-based
compensation

Total net revenue

7,408 to 7,708

 

?

 

 

(19

)

 

?

 

 

?

 

Cost of revenue

1,713 to 1,763

 

(77

)

 

?

 

 

?

 

 

(11

)

Operating expense

4,271 to 4,351

 

(145

)

 

?

 

 

(3

)

 

(580

)

Income before provision for income taxes

1,487 to 1,654

 

222

 

 

(19

)

 

3

 

 

591

 

Net income

1,145 to 1,274

 

 

 

 

 

 

 

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

 

Diluted shares

272

 

 

 

 

 

 

 

 

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

** Includes Q4 impairment of acquisition-related intangible assets as per previous table.

Conference Call and Supporting Documents

Electronic Arts will host a conference call on January 30, 2024 at 2:00 pm PT (5:00 pm ET) to review its results for the third quarter ended December 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 February 14, 2024 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using conference 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 January 30, 2024" 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, 2023.

These forward-looking statements are current as of January 30, 2024. 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 December 31, 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 December 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 FCtm, Battlefieldtm, Apex Legendstm, The Simstm, EA SPORTS Madden NFL, Need for Speedtm, Titanfalltm, Plants vs. Zombiestm and EA SPORTS 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.

For additional information, please contact:

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
December 31,

 

Nine Months Ended
December 31,

 

 

 

2023

 

2022

 

2023

 

2022

Net revenue

1,945

 

1,881

 

 

5,783

 

5,552

 

Cost of revenue

529

 

568

 

 

1,353

 

1,344

 

Gross profit

1,416

 

1,313

 

 

4,430

 

4,208

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

584

 

556

 

 

1,782

 

1,693

 

Marketing and sales

276

 

256

 

 

785

 

723

 

General and administrative

170

 

162

 

 

506

 

503

 

Amortization and impairment of intangibles

21

 

50

 

 

70

 

132

 

Restructuring

?

 

?

 

 

3

 

?

 

Total operating expenses

1,051

 

1,024

 

 

3,146

 

3,051

 

Operating income

365

 

289

 

 

1,284

 

1,157

 

Interest and other income (expense), net

17

 

(7

)

 

45

 

(12

)

Income before provision for income taxes

382

 

282

 

 

1,329

 

1,145

 

Provision for income taxes

92

 

78

 

 

238

 

331

 

Net income

290

 

204

 

 

1,091

 

814

 

Earnings per share

 

 

 

 

 

 

 

Basic

1.08

 

0.74

 

 

4.03

 

2.93

 

Diluted

1.07

 

0.73

 

 

4.01

 

2.92

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

269

 

276

 

 

271

 

278

 

Diluted

271

 

278

 

 

272

 

279

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on November 1, 2023 for the three months ended December 31, 2023 plus a comparison to the actuals for the three months ended December 31, 2022.

 

Three Months Ended December 31,

 

2023 Guidance
(Mid-Point)

 

 

 

2023
Actuals

 

2022
Actuals

 

 

Variance

 

 

Net revenue

 

 

 

 

 

 

 

Net revenue

1,925

 

 

20

 

 

1,945

 

 

1,881

 

GAAP-based financial data

 

 

 

 

 

 

 

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

425

 

 

(4

)

 

421

 

 

461

 

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

515

 

 

14

 

 

529

 

 

568

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(15

)

 

(1

)

 

(16

)

 

(26

)

Stock-based compensation

?

 

 

(2

)

 

(2

)

 

(2

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,080

 

 

(29

)

 

1,051

 

 

1,024

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(25

)

 

4

 

 

(21

)

 

(50

)

Stock-based compensation

(155

)

 

6

 

 

(149

)

 

(139

)

Income before tax

 

 

 

 

 

 

 

Income before tax

337

 

 

45

 

 

382

 

 

282

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

40

 

 

(3

)

 

37

 

 

76

 

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

425

 

 

(4

)

 

421

 

 

461

 

Stock-based compensation

155

 

 

(4

)

 

151

 

 

141

 

Tax rate used for management reporting

19

%

 

 

 

19

%

 

19

%

Earnings per share

 

 

 

 

 

 

 

Basic

0.89

 

 

0.19

 

 

1.08

 

 

0.74

 

Diluted

0.88

 

 

0.19

 

 

1.07

 

 

0.73

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

270

 

 

(1

)

 

269

 

 

276

 

Diluted

272

 

 

(1

)

 

271

 

 

278

 

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

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in $ millions)

 

 

 

 

 

December 31, 2023

 

March 31, 20232

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

2,742

 

 

2,424

 

Short-term investments

362

 

 

343

 

Receivables, net

867

 

 

684

 

Other current assets

378

 

 

518

 

Total current assets

4,349

 

 

3,969

 

Property and equipment, net

561

 

 

549

 

Goodwill

5,382

 

 

5,380

 

Acquisition-related intangibles, net

501

 

 

618

 

Deferred income taxes, net

2,375

 

 

2,462

 

Other assets

449

 

 

481

 

TOTAL ASSETS

13,617

 

 

13,459

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

62

 

 

99

 

Accrued and other current liabilities

1,299

 

 

1,285

 

Deferred net revenue (online-enabled games)

1,919

 

 

1,901

 

Total current liabilities

3,280

 

 

3,285

 

Senior notes, net

1,881

 

 

1,880

 

Income tax obligations

482

 

 

607

 

Deferred income taxes, net

2

 

 

1

 

Other liabilities

439

 

 

393

 

Total liabilities

6,084

 

 

6,166

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock

3

 

 

3

 

Retained earnings

7,614

 

 

7,357

 

Accumulated other comprehensive loss

(84

)

 

(67

)

Total stockholders' equity

7,533

 

 

7,293

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

13,617

 

 

13,459

 

2Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

 

 

 

 

 

 

 

 

 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2023

 

2022

 

2023

 

2022

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

290

 

 

204

 

 

1,091

 

 

814

 

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

 

 

 

 

 

 

 

Depreciation, amortization, accretion and impairment

82

 

 

122

 

 

255

 

 

363

 

Stock-based compensation

151

 

 

141

 

 

436

 

 

406

 

Change in assets and liabilities

 

 

 

 

 

 

 

Receivables, net

183

 

 

90

 

 

(184

)

 

(186

)

Other assets

112

 

 

(28

)

 

186

 

 

(53

)

Accounts payable

(93

)

 

(74

)

 

(36

)

 

(21

)

Accrued and other liabilities

138

 

 

297

 

 

(119

)

 

28

 

Deferred income taxes, net

(20

)

 

(47

)

 

88

 

 

(203

)

Deferred net revenue (online-enabled games)

421

 

 

418

 

 

18

 

 

(215

)

Net cash provided by operating activities

1,264

 

 

1,123

 

 

1,735

 

 

933

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Capital expenditures

(52

)

 

(48

)

 

(148

)

 

(160

)

Proceeds from maturities and sales of short-term investments

148

 

 

77

 

 

450

 

 

243

 

Purchase of short-term investments

(147

)

 

(90

)

 

(460

)

 

(263

)

Net cash used in investing activities

(51

)

 

(61

)

 

(158

)

 

(180

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from issuance of common stock

3

 

 

3

 

 

43

 

 

47

 

Cash dividends paid

(51

)

 

(52

)

 

(154

)

 

(158

)

Cash paid to taxing authorities for shares withheld from employees

(58

)

 

(44

)

 

(178

)

 

(161

)

Repurchase and retirement of common stock

(325

)

 

(325

)

 

(975

)

 

(970

)

Net cash used in financing activities

(431

)

 

(418

)

 

(1,264

)

 

(1,242

)

 

 

 

 

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

14

 

 

19

 

 

5

 

 

(41

)

Change in cash and cash equivalents

796

 

 

663

 

 

318

 

 

(530

)

Beginning cash and cash equivalents

1,946

 

 

1,539

 

 

2,424

 

 

2,732

 

Ending cash and cash equivalents

2,742

 

 

2,202

 

 

2,742

 

 

2,202

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

YOY %

 

FY23

 

FY23

 

FY24

 

FY24

 

FY24

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,881

 

 

1,874

 

 

1,924

 

 

1,914

 

 

1,945

 

 

3

%

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

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

461

 

 

72

 

 

(346

)

 

(94

)

 

421

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,313

 

 

1,426

 

 

1,556

 

 

1,458

 

 

1,416

 

 

8

%

Gross profit (as a % of net revenue)

70

%

 

76

%

 

81

%

 

76

%

 

73

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

26

 

 

25

 

 

16

 

 

15

 

 

16

 

 

 

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

461

 

 

72

 

 

(346

)

 

(94

)

 

421

 

 

 

Stock-based compensation

2

 

 

2

 

 

2

 

 

2

 

 

2

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

289

 

 

175

 

 

542

 

 

377

 

 

365

 

 

26

%

Operating income (as a % of net revenue)

15

%

 

9

%

 

28

%

 

20

%

 

19

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

76

 

 

51

 

 

41

 

 

39

 

 

37

 

 

 

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

461

 

 

72

 

 

(346

)

 

(94

)

 

421

 

 

 

Restructuring and related charges

?

 

 

155

 

 

3

 

 

?

 

 

?

 

 

 

Stock-based compensation

141

 

 

142

 

 

130

 

 

155

 

 

151

 

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

204

 

 

(12

)

 

402

 

 

399

 

 

290

 

 

42

%

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

11

%

 

(1

%)

 

21

%

 

21

%

 

15

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

76

 

 

51

 

 

41

 

 

39

 

 

37

 

 

 

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

461

 

 

72

 

 

(346

)

 

(94

)

 

421

 

 

 

Restructuring and related charges

?

 

 

155

 

 

3

 

 

?

 

 

?

 

 

 

Stock-based compensation

141

 

 

142

 

 

130

 

 

155

 

 

151

 

 

 

Tax rate used for management reporting

19

%

 

19

%

 

19

%

 

19

%

 

19

%

 

 

Diluted earnings (loss) per share

0.73

 

 

(0.04

)

 

1.47

 

 

1.47

 

 

1.07

 

 

47

%

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

276

 

 

274

 

 

272

 

 

271

 

 

269

 

 

 

Diluted

278

 

 

274

 

 

274

 

 

272

 

 

271

 

 

 

Anti-dilutive shares excluded for loss position3

?

 

 

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.

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

YOY %

 

 

FY23

 

FY23

 

FY24

 

FY24

 

FY24

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

 

423

 

 

274

 

 

301

 

 

346

 

 

431

 

 

2

%

Packaged goods

 

199

 

 

98

 

 

142

 

 

275

 

 

187

 

 

(6

%)

Full game

 

622

 

 

372

 

 

443

 

 

621

 

 

618

 

 

(1

%)

Live services and other

 

1,259

 

 

1,502

 

 

1,481

 

 

1,293

 

 

1,327

 

 

5

%

Total net revenue

 

1,881

 

 

1,874

 

 

1,924

 

 

1,914

 

 

1,945

 

 

3

%

Full game

 

33

%

 

20

%

 

23

%

 

32

%

 

32

%

 

 

Live services and other

 

67

%

 

80

%

 

77

%

 

68

%

 

68

%

 

 

Total net revenue %

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

 

45

 

 

(24

)

 

(21

)

 

24

 

 

32

 

 

 

Packaged goods

 

20

 

 

(24

)

 

(21

)

 

46

 

 

4

 

 

 

Full game

 

65

 

 

(48

)

 

(42

)

 

70

 

 

36

 

 

 

Live services and other

 

396

 

 

120

 

 

(304

)

 

(164

)

 

385

 

 

 

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

 

461

 

 

72

 

 

(346

)

 

(94

)

 

421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

 

Console

 

1,152

 

 

1,088

 

 

1,167

 

 

1,187

 

 

1,229

 

 

7

%

PC & Other

 

435

 

 

469

 

 

451

 

 

423

 

 

420

 

 

(3

%)

Mobile

 

294

 

 

317

 

 

306

 

 

304

 

 

296

 

 

1

%

Total net revenue

 

1,881

 

 

1,874

 

 

1,924

 

 

1,914

 

 

1,945

 

 

3

%

GAAP-based financial data

 

 

 

 

 

 

Console

 

423

 

 

11

 

 

(266

)

 

(35

)

 

377

 

 

 

PC & Other

 

29

 

 

47

 

 

(77

)

 

(34

)

 

33

 

 

 

Mobile

 

9

 

 

14

 

 

(3

)

 

(25

)

 

11

 

 

 

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

 

461

 

 

72

 

 

(346

)

 

(94

)

 

421

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

YOY %

 

FY23

 

FY23

 

FY24

 

FY24

 

FY24

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

1,123

 

617

 

359

 

112

 

 

1,264

 

13

%

Operating cash flow - TTM

1,377

 

1,550

 

1,987

 

2,211

 

 

2,352

 

71

%

Capital expenditures

48

 

47

 

45

 

51

 

 

52

 

8

%

Capital expenditures - TTM

213

 

207

 

193

 

191

 

 

195

 

(8

%)

Repurchase and retirement of common stock

325

 

325

 

325

 

325

 

 

325

 

?

 

Cash dividends paid

52

 

52

 

52

 

51

 

 

51

 

(2

%)

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

46

 

58

 

49

 

49

 

 

48

 

4

%

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

2,202

 

2,424

 

2,259

 

1,946

 

 

2,742

 

 

Short-term investments

351

 

343

 

343

 

359

 

 

362

 

 

Cash and cash equivalents, and short-term investments

2,553

 

2,767

 

2,602

 

2,305

 

 

3,104

 

22

%

Receivables, net

836

 

684

 

517

 

1,047

 

 

867

 

4

%

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

2

 

2

 

2

 

2

 

 

2

 

 

Research and development

95

 

96

 

93

 

113

 

 

108

 

 

Marketing and sales

15

 

15

 

11

 

13

 

 

14

 

 

General and administrative

29

 

29

 

24

 

27

 

 

27

 

 

Total stock-based compensation

141

 

142

 

130

 

155

 

 

151

 

 

RESTRUCTURING AND RELATED CHARGES

 

 

 

 

 

 

 

 

 

 

 

Restructuring

?

 

111

 

1

 

2

 

 

?

 

 

Office space reductions

?

 

44

 

2

 

(2

)

 

?

 

 

Total restructuring and related charges

?

 

155

 

3

 

?

 

 

?

 

 

 


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