Today's News |
Electronic Arts Reports Strong Q3 FY24 Results
Thursday, February 1, 2024Company Profile | Follow Company
EA SPORTS FCTM Momentum Continues, Driving Record Live Services Net Bookings
Burnaby, BC, January 31, 2024--(T-Net)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third quarter ended December 31, 2023.
Andrew Wilson, CEO & Chairman, EA
"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 Metrics 1
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 |
|
|
|
|
Business Outlook as of January 30, 2024
Fourth Quarter Fiscal Year 2024 Expectations - Ending March 31, 2024
Financial outlook metrics:
Operational outlook metric:
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 |
|
Acquisition-related |
|
Change in deferred |
|
Restructuring |
|
Stock-based |
||||
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. |
About Electronic Arts
Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.
In fiscal year 2023, EA posted GAAP net revenue of approximately $7.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC, Battlefield™, Apex Legends™, The Sims™, 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.
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 |
|
Acquisition-related |
|
Change in deferred |
|
Restructuring |
|
Stock-based |
||
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 |
|
Acquisition-related |
|
Change in deferred |
|
Restructuring |
|
Stock-based |
|||
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 |
|
Twelve Months Ended |
||||
(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 |
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 |
|
Acquisition-related |
|
Change in deferred |
|
Restructuring |
|
Stock-based |
||
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. |
Forward-Looking Statements Some statements set forth in this release, including the information relating to EA's expectations and other future 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. [ MORE ] |
Company Snapshot |
||
Burnaby, BC (New Media)
|
Other Recent Company News |
|||||||||||||||||||
|