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Electronic Arts Reports Q4 and FY24 Results

EA SPORTS™ Momentum Continued in FY24, Company Delivers Record Fiscal Year Cash Flow

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2024.

“This year, EA delivered bigger, bolder world class entertainment that engaged and connected hundreds of millions of players and fans,” said Andrew Wilson, CEO of EA. “We will continue to build on this strong momentum through an incredible pipeline of new experiences, starting with College Football in FY25, positioning us for accelerated growth in FY26 and beyond.”

“EA’s FY24 was highlighted by record cash flow and strong earnings growth driven by EA SPORTS FC™ and Madden NFL,” said Stuart Canfield, CFO of EA. “With strong conviction in our future, we are announcing an expanded stock repurchase program. We look forward to sharing more about our long-term strategy and financial framework at our Investor Day this fall.”

Selected Operating Highlights and Metrics1

  • Net bookings2 for FY24 was $7.430 billion, up 1% year-over-year (up 3% in constant currency).
  • Delivered 11 titles and over 600 content updates in the year, including four non-annual sports titles and the successful rebrand of EA SPORTS FC.
  • Our global football franchise grew net bookings by high-teens percent in FY24.
  • During FY24, our EA SPORTS™ Madden NFL franchise delivered record net bookings, up 6% year-over-year and double-digit growth in weekly average users for both Madden NFL 24 and Madden Mobile.

Selected Financial Highlights and Metrics

  • Net revenue for FY24 was $7.562 billion, up 2% year-over-year.
  • For FY24, net cash provided by operating activities was a fiscal year record $2.315 billion, up 49% year-over-year.
  • During FY24, EA returned $1.505 billion to stockholders through stock repurchases and dividends.
  • The board has authorized a new stock repurchase program of $5 billion over three years.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 19, 2024 to stockholders of record as of the close of business on May 29, 2024.

 

Quarterly Financial Highlights

 

 

Three Months Ended

 

March 31,

(in $ millions, except per share amounts)

2024

 

2023

Full game

333

 

372

 

Live services and other

1,446

 

1,502

 

Total net revenue

1,779

 

1,874

 

 

 

 

 

Net income (loss)

182

 

(12

)

Diluted earnings (loss) per share

0.67

 

(0.04

)

 

 

 

 

Operating cash flow

580

 

617

 

 

 

 

 

Value of shares repurchased

325

 

325

 

Number of shares repurchased

2.3

 

2.7

 

 

 

 

 

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 March 31, 2024

 

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

1,779

 

 

 

(113

)

 

 

 

 

Cost of revenue

357

 

(29

)

 

 

 

 

 

(2

)

Gross profit

1,422

 

29

 

 

(113

)

 

 

 

2

 

Total operating expenses

1,188

 

(72

)

 

 

 

(61

)

 

(146

)

Operating income

234

 

101

 

 

(113

)

 

61

 

 

148

 

Interest and other income (expense), net

26

 

 

 

 

 

 

 

 

Income before provision for income taxes

260

 

101

 

 

(113

)

 

61

 

 

148

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

 

Diluted

270

 

 

 

 

 

 

 

 

 

Fiscal Year Financial Highlights

 

Twelve Months Ended

 

March 31,

(in $ millions, except per share amounts)

2024

 

2023

Full game

2,015

 

1,937

Live services and other

5,547

 

5,489

Total net revenue

7,562

 

7,426

 

 

 

 

Net income

1,273

 

802

Diluted earnings per share

4.68

 

2.88

 

 

 

 

Operating cash flow

2,315

 

1,550

 

 

 

 

Value of shares repurchased

1,300

 

1,295

Number of shares repurchased

10.0

 

10.4

 

 

 

 

Cash dividend paid

205

 

210

 

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 March 31, 2024

 

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

7,562

 

 

 

(132

)

 

 

 

 

Cost of revenue

1,710

 

(76

)

 

 

 

 

 

(8

)

Gross profit

5,852

 

76

 

 

(132

)

 

 

 

8

 

Total operating expenses

4,334

 

(142

)

 

 

 

(64

)

 

(576

)

Operating income

1,518

 

218

 

 

(132

)

 

64

 

 

584

 

Interest and other income (expense), net

71

 

 

 

 

 

 

 

 

Income before provision for income taxes

1,589

 

218

 

 

(132

)

 

64

 

 

584

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

 

Diluted

272

 

 

 

 

 

 

 

 

 

Operating Metric

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

 

 

Three Months Ended

March 31,

 

Twelve Months Ended

March 31,

(in $ millions)

2024

 

2023

 

2024

 

2023

Total net revenue

1,779

 

 

1,874

 

7,562

 

 

7,426

 

Change in deferred net revenue (online-enabled games)

(113

)

 

72

 

(132

)

 

(85

)

Total net bookings

1,666

 

 

1,946

 

7,430

 

 

7,341

 

 

Business Outlook as of May 7, 2024

Fiscal Year 2025 Expectations – Ending March 31, 2025

Financial outlook metrics:

  • Net revenue is expected to be approximately $7.100 billion to $7.500 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $200 million.
  • Net income is expected to be approximately $904 million to $1.085 billion.
  • Diluted earnings per share is expected to be approximately $3.34 to $4.00.
  • Operating cash flow is expected to be approximately $2.050 billion to $2.250 billion.
  • The Company estimates a share count of 271 million for purposes of calculating diluted earnings per share.

Operational outlook 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 a 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, 2025

 

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

7,100 to 7,500

 

 

 

200

 

 

 

 

Cost of revenue

1,480 to 1,520

 

(40

)

 

 

 

 

(10

)

Operating expense

4,345 to 4,435

 

(70

)

 

 

(95

)

 

(615

)

Income before provision for income taxes

1,329 to 1,596

 

110

 

 

200

 

95

 

 

625

 

Net income

904 to 1,085

 

 

 

 

 

 

 

 

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.

First Quarter Fiscal Year 2025 Expectations – Ending June 30, 2024

Financial outlook metrics:

  • Net revenue is expected to be approximately $1.575 billion to $1.675 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately ($425) million.
  • Net income is expected to be approximately $197 million to $243 million.
  • Diluted earnings per share is expected to be approximately $0.73 to $0.90.
  • The Company estimates a share count of 270 million for purposes of calculating diluted earnings per share.

Operational outlook metric:

  • Net bookings2 is expected to be approximately $1.150 billion to $1.250 billion.

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

 

 

Three Months Ending June 30, 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

1,575 to 1,675

 

 

 

(425

)

 

 

 

 

Cost of revenue

240 to 250

 

(10

)

 

 

 

 

 

(5

)

Operating expense

1,065 to 1,085

 

(20

)

 

 

 

(65

)

 

(135

)

Income before provision for income taxes

290 to 357

 

30

 

 

(425

)

 

65

 

 

140

 

Net income

197 to 243

 

 

 

 

 

 

 

 

Number of shares used in computation:

 

 

 

 

 

 

 

 

 

Diluted shares

270

 

 

 

 

 

 

 

 

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

Conference Call and Supporting Documents

Electronic Arts will host a conference call on May 7, 2024 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2024 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (888) 330-2446 (domestic) or (240) 789-2732 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website.

A dial-in replay of the conference call will be available until May 22, 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 May 7, 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 and trends; 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 May 7, 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2024. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2024.

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 2024, EA posted GAAP net revenue of approximately $7.6 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™, EA SPORTS™ Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ 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.

 

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

March 31,

 

Twelve Months Ended

March 31,

 

 

 

2024

 

2023

 

2024

 

2023

Net revenue

1,779

 

1,874

 

 

7,562

 

7,426

 

Cost of revenue

357

 

448

 

 

1,710

 

1,792

 

Gross profit

1,422

 

1,426

 

 

5,852

 

5,634

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

638

 

635

 

 

2,420

 

2,328

 

Marketing and sales

234

 

255

 

 

1,019

 

978

 

General and administrative

185

 

224

 

 

691

 

727

 

Amortization and impairment of intangibles

72

 

26

 

 

142

 

158

 

Restructuring

59

 

111

 

 

62

 

111

 

Total operating expenses

1,188

 

1,251

 

 

4,334

 

4,302

 

Operating income

234

 

175

 

 

1,518

 

1,332

 

Interest and other income (expense), net

26

 

6

 

 

71

 

(6

)

Income before provision for income taxes

260

 

181

 

 

1,589

 

1,326

 

Provision for income taxes

78

 

193

 

 

316

 

524

 

Net income (loss)

182

 

(12

)

 

1,273

 

802

 

Earnings (loss) per share

 

 

 

 

 

 

 

Basic

0.68

 

(0.04

)

 

4.71

 

2.90

 

Diluted

0.67

 

(0.04

)

 

4.68

 

2.88

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

267

 

274

 

 

270

 

277

 

Diluted

270

 

274

 

 

272

 

278

 

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on January 30, 2024 for the three months ended March 31, 2024 plus a comparison to the actuals for the three months ended March 31, 2023.

 

 

Three Months Ended March 31,

 

2024 Guidance

(Mid-Point)

 

 

 

2024

Actuals

 

2023

Actuals

 

 

Variance

 

 

Net revenue

 

 

 

 

 

 

 

Net revenue

1,775

 

 

4

 

 

1,779

 

 

1,874

 

GAAP-based financial data

 

 

 

 

 

 

 

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

 

 

(113

)

 

(113

)

 

72

 

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

385

 

 

(28

)

 

357

 

 

448

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(30

)

 

1

 

 

(29

)

 

(25

)

Stock-based compensation

(5

)

 

3

 

 

(2

)

 

(2

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,165

 

 

23

 

 

1,188

 

 

1,251

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(75

)

 

3

 

 

(72

)

 

(26

)

Restructuring and related charges

 

 

(61

)

 

(61

)

 

(155

)

Stock-based compensation

(150

)

 

4

 

 

(146

)

 

(140

)

Income before tax

 

 

 

 

 

 

 

Income before tax

242

 

 

18

 

 

260

 

 

181

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

105

 

 

(4

)

 

101

 

 

51

 

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

 

 

(113

)

 

(113

)

 

72

 

Restructuring and related charges

 

 

61

 

 

61

 

 

155

 

Stock-based compensation

155

 

 

(7

)

 

148

 

 

142

 

Tax rate used for management reporting

19

%

 

 

 

19

%

 

19

%

Earnings (loss) per share

 

 

 

 

 

 

 

Basic

0.44

 

 

0.24

 

 

0.68

 

 

(0.04

)

Diluted

0.44

 

 

0.23

 

 

0.67

 

 

(0.04

)

Number of shares used in computation

 

 

 

 

 

 

 

Basic

269

 

 

(2

)

 

267

 

 

274

 

Diluted

271

 

 

(1

)

 

270

 

 

274

 

Anti-dilutive shares excluded for loss position2

 

 

 

 

 

 

1

 

 

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

2 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive.

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in $ millions)

 

 

 

 

 

March 31, 2024

 

March 31, 20233

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

2,900

 

 

2,424

 

Short-term investments

362

 

 

343

 

Receivables, net

565

 

 

684

 

Other current assets

420

 

 

518

 

Total current assets

4,247

 

 

3,969

 

Property and equipment, net

578

 

 

549

 

Goodwill

5,379

 

 

5,380

 

Acquisition-related intangibles, net

400

 

 

618

 

Deferred income taxes, net

2,380

 

 

2,462

 

Other assets

436

 

 

481

 

TOTAL ASSETS

13,420

 

 

13,459

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

110

 

 

99

 

Accrued and other current liabilities

1,166

 

 

1,285

 

Deferred net revenue (online-enabled games)

1,814

 

 

1,901

 

Total current liabilities

3,090

 

 

3,285

 

Senior notes, net

1,882

 

 

1,880

 

Income tax obligations

497

 

 

607

 

Deferred income taxes, net

1

 

 

1

 

Other liabilities

437

 

 

393

 

Total liabilities

5,907

 

 

6,166

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

3

 

 

3

 

Retained earnings

7,582

 

 

7,357

 

Accumulated other comprehensive loss

(72

)

 

(67

)

Total stockholders’ equity

7,513

 

 

7,293

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,420

 

 

13,459

 

 

3Derived from audited consolidated financial statements.

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

 

 

 

 

 

 

 

 

 

Three Months Ended

March 31,

 

Twelve Months Ended

March 31,

 

2024

 

2023

 

2024

 

2023

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income (loss)

182

 

 

(12

)

 

1,273

 

 

802

 

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

 

 

 

 

 

 

 

Depreciation, amortization, accretion and impairment

149

 

 

173

 

 

404

 

 

536

 

Stock-based compensation

148

 

 

142

 

 

584

 

 

548

 

Change in assets and liabilities

 

 

 

 

 

 

 

Receivables, net

303

 

 

152

 

 

119

 

 

(34

)

Other assets

(38

)

 

(50

)

 

148

 

 

(103

)

Accounts payable

30

 

 

31

 

 

(6

)

 

10

 

Accrued and other liabilities

(83

)

 

106

 

 

(202

)

 

134

 

Deferred income taxes, net

(6

)

 

(18

)

 

82

 

 

(221

)

Deferred net revenue (online-enabled games)

(105

)

 

93

 

 

(87

)

 

(122

)

Net cash provided by operating activities

580

 

 

617

 

 

2,315

 

 

1,550

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Capital expenditures

(51

)

 

(47

)

 

(199

)

 

(207

)

Proceeds from maturities and sales of short-term investments

182

 

 

152

 

 

632

 

 

395

 

Purchase of short-term investments

(180

)

 

(142

)

 

(640

)

 

(405

)

Net cash used in investing activities

(49

)

 

(37

)

 

(207

)

 

(217

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from issuance of common stock

34

 

 

33

 

 

77

 

 

80

 

Cash dividends paid

(51

)

 

(52

)

 

(205

)

 

(210

)

Cash paid to taxing authorities for shares withheld from employees

(18

)

 

(14

)

 

(196

)

 

(175

)

Common stock repurchases

(325

)

 

(325

)

 

(1,300

)

 

(1,295

)

Net cash used in financing activities

(360

)

 

(358

)

 

(1,624

)

 

(1,600

)

 

 

 

 

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

(13

)

 

 

 

(8

)

 

(41

)

Change in cash and cash equivalents

158

 

 

222

 

 

476

 

 

(308

)

Beginning cash and cash equivalents

2,742

 

 

2,202

 

 

2,424

 

 

2,732

 

Ending cash and cash equivalents

2,900

 

 

2,424

 

 

2,900

 

 

2,424

 

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

FY23

 

FY24

 

FY24

 

FY24

 

FY24

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,874

 

 

1,924

 

 

1,914

 

 

1,945

 

 

1,779

 

 

(5

%)

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

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

72

 

 

(346

)

 

(94

)

 

421

 

 

(113

)

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,426

 

 

1,556

 

 

1,458

 

 

1,416

 

 

1,422

 

 

 

Gross profit (as a % of net revenue)

76

%

 

81

%

 

76

%

 

73

%

 

80

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

25

 

 

16

 

 

15

 

 

16

 

 

29

 

 

 

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

72

 

 

(346

)

 

(94

)

 

421

 

 

(113

)

 

 

Stock-based compensation

2

 

 

2

 

 

2

 

 

2

 

 

2

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

175

 

 

542

 

 

377

 

 

365

 

 

234

 

 

34

%

Operating income (as a % of net revenue)

9

%

 

28

%

 

20

%

 

19

%

 

13

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

51

 

 

41

 

 

39

 

 

37

 

 

101

 

 

 

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

72

 

 

(346

)

 

(94

)

 

421

 

 

(113

)

 

 

Restructuring and related charges

155

 

 

3

 

 

 

 

 

 

61

 

 

 

Stock-based compensation

142

 

 

130

 

 

155

 

 

151

 

 

148

 

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

(12

)

 

402

 

 

399

 

 

290

 

 

182

 

 

1,617

%

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

(1

%)

 

21

%

 

21

%

 

15

%

 

10

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

51

 

 

41

 

 

39

 

 

37

 

 

101

 

 

 

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

72

 

 

(346

)

 

(94

)

 

421

 

 

(113

)

 

 

Restructuring and related charges

155

 

 

3

 

 

 

 

 

 

61

 

 

 

Stock-based compensation

142

 

 

130

 

 

155

 

 

151

 

 

148

 

 

 

Tax rate used for management reporting

19

%

 

19

%

 

19

%

 

19

%

 

19

%

 

 

Diluted earnings (loss) per share

(0.04

)

 

1.47

 

 

1.47

 

 

1.07

 

 

0.67

 

 

1,775

%

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

274

 

 

272

 

 

271

 

 

269

 

 

267

 

 

 

Diluted

274

 

 

274

 

 

272

 

 

271

 

 

270

 

 

 

Anti-dilutive shares excluded for loss position2

1

 

 

 

 

 

 

 

 

 

 

 

 

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

2Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive.

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

 

FY23

 

FY24

 

FY24

 

FY24

 

FY24

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

 

274

 

 

301

 

 

346

 

 

431

 

 

265

 

 

(3

%)

Packaged goods

 

98

 

 

142

 

 

275

 

 

187

 

 

68

 

 

(31

%)

Full game

 

372

 

 

443

 

 

621

 

 

618

 

 

333

 

 

(10

%)

Live services and other

 

1,502

 

 

1,481

 

 

1,293

 

 

1,327

 

 

1,446

 

 

(4

%)

Total net revenue

 

1,874

 

 

1,924

 

 

1,914

 

 

1,945

 

 

1,779

 

 

(5

%)

Full game

 

20

%

 

23

%

 

32

%

 

32

%

 

19

%

 

 

Live services and other

 

80

%

 

77

%

 

68

%

 

68

%

 

81

%

 

 

Total net revenue %

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

 

(24

)

 

(21

)

 

24

 

 

32

 

 

(37

)

 

 

Packaged goods

 

(24

)

 

(21

)

 

46

 

 

4

 

 

(37

)

 

 

Full game

 

(48

)

 

(42

)

 

70

 

 

36

 

 

(74

)

 

 

Live services and other

 

120

 

 

(304

)

 

(164

)

 

385

 

 

(39

)

 

 

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

 

72

 

 

(346

)

 

(94

)

 

421

 

 

(113

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

 

Console

 

1,088

 

 

1,167

 

 

1,187

 

 

1,229

 

 

1,049

 

 

(4

%)

PC & Other

 

469

 

 

451

 

 

423

 

 

420

 

 

423

 

 

(10

%)

Mobile

 

317

 

 

306

 

 

304

 

 

296

 

 

307

 

 

(3

%)

Total net revenue

 

1,874

 

 

1,924

 

 

1,914

 

 

1,945

 

 

1,779

 

 

(5

%)

GAAP-based financial data

 

 

 

 

 

 

Console

 

11

 

 

(266

)

 

(35

)

 

377

 

 

(94

)

 

 

PC & Other

 

47

 

 

(77

)

 

(34

)

 

33

 

 

(10

)

 

 

Mobile

 

14

 

 

(3

)

 

(25

)

 

11

 

 

(9

)

 

 

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

 

72

 

 

(346

)

 

(94

)

 

421

 

 

(113

)

 

 

 

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

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

YOY %

 

FY23

 

FY24

 

FY24

 

FY24

 

FY24

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Investing cash flow

(37

)

 

(44

)

 

(63

)

 

(51

)

 

(49

)

 

 

Investing cash flow - TTM

(217

)

 

(196

)

 

(205

)

 

(195

)

 

(207

)

 

5

%

Financing cash flow

(358

)

 

(482

)

 

(351

)

 

(431

)

 

(360

)

 

 

Financing cash flow - TTM

(1,600

)

 

(1,606

)

 

(1,609

)

 

(1,622

)

 

(1,624

)

 

(2

%)

Operating cash flow

617

 

 

359

 

 

112

 

 

1,264

 

 

580

 

 

 

Operating cash flow - TTM

1,550

 

 

1,987

 

 

2,211

 

 

2,352

 

 

2,315

 

 

49

%

Capital expenditures

47

 

 

45

 

 

51

 

 

52

 

 

51

 

 

 

Capital expenditures - TTM

207

 

 

193

 

 

191

 

 

195

 

 

199

 

 

(4

%)

Free cash flow4

570

 

 

314

 

 

61

 

 

1,212

 

 

529

 

 

 

Free cash flow4 - TTM

1,343

 

 

1,794

 

 

2,020

 

 

2,157

 

 

2,116

 

 

58

%

Common stock repurchases

325

 

 

325

 

 

325

 

 

325

 

 

325

 

 

 

Cash dividends paid

52

 

 

52

 

 

51

 

 

51

 

 

51

 

 

(2

%)

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

58

 

 

49

 

 

49

 

 

48

 

 

50

 

 

(14

%)

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

2,424

 

 

2,259

 

 

1,946

 

 

2,742

 

 

2,900

 

 

 

Short-term investments

343

 

 

343

 

 

359

 

 

362

 

 

362

 

 

 

Cash and cash equivalents, and short-term investments

2,767

 

 

2,602

 

 

2,305

 

 

3,104

 

 

3,262

 

 

18

%

Receivables, net

684

 

 

517

 

 

1,047

 

 

867

 

 

565

 

 

(17

%)

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

2

 

 

2

 

 

2

 

 

2

 

 

2

 

 

 

Research and development

96

 

 

93

 

 

113

 

 

108

 

 

104

 

 

 

Marketing and sales

15

 

 

11

 

 

13

 

 

14

 

 

14

 

 

 

General and administrative

29

 

 

24

 

 

27

 

 

27

 

 

28

 

 

 

Total stock-based compensation

142

 

 

130

 

 

155

 

 

151

 

 

148

 

 

 

RESTRUCTURING AND RELATED CHARGES

 

 

 

 

 

 

 

 

 

 

 

Restructuring

111

 

 

1

 

 

2

 

 

 

 

59

 

 

 

Office space reductions

44

 

 

2

 

 

(2

)

 

 

 

2

 

 

 

Total restructuring and related charges

155

 

 

3

 

 

 

 

 

 

61

 

 

 

 

4 Free cash flow is defined as Operating cash flow less Capital expenditures.

 

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