Electronic Arts Reports Q3 FY23 Financial Results
Electronic Arts Inc. (NASDAQ:EA) reported preliminary financial results for Q3 of fiscal 2023, ending December 31, 2022. Total net revenue increased to $1.881 billion, up from $1.789 billion in the prior year, while net income rose to $204 million, compared to $66 million a year earlier. Despite a 1% decline in net bookings to $7.146 billion year-over-year, live services grew by 4%, comprising 75% of total bookings. The EA player network expanded to over 650 million. EA plans to release Star Wars Jedi: Survivor on April 28, 2023, with Q4 guidance predicting revenue between $1.700 and $1.800 billion.
- Net revenue increased to $1.881 billion, up 5% year-over-year.
- Net income rose to $204 million, a significant increase from $66 million.
- EA's player network grew to over 650 million.
- Live services and other bookings increased by 4%, representing 75% of total bookings.
- Net bookings declined by 1% year-over-year to $7.146 billion.
- Q4 net income guidance is low, estimated between $14 million and $55 million.
“In Q3, EA delivered high-quality experiences, driving record engagement across some of our biggest franchises and growing our player network. While our teams delivered for our players, the current macro environment impacted Q3 results,” said
“As market uncertainty mounted during the quarter, we took measures to protect underlying profitability,” said
Selected Operating Highlights and Metrics
-
Net bookings1 for the trailing twelve months was
$7.14 6 billion1% year-over-year. -
Live services and other net bookings for the trailing twelve months were up
4% year-over-year and represent75% of total net bookings. - The EA player network grew to more than 650 million at quarter end.
- EA SPORTS FIFA 23 is pacing to be the biggest title in franchise history and delivered record engagement in Q3.
-
Our teams delivered two
AAA titles, NHL 23 and Need for Speed Unbound, at quality, and provided 128 content updates across 36 titles. - The Sims welcomed over 10 million new players into the community during the quarter, with daily active users, weekly active users and monthly active users all up double digits year-over-year.
Selected Financial Highlights and Metrics
-
Net cash provided by operating activities was
$1.12 3 billion$1.37 7 billion -
EA repurchased 2.6 million shares for
$325 million $1.29 5 billion -
EA paid a cash dividend of
$0.19 $52 million
Dividend
EA has declared a quarterly cash dividend of
Quarterly Financial Highlights
| Three Months Ended | ||||||
2022 |
2021 |
|||||
| (in $ millions, except per share amounts) | ||||||
| Full game | 622 |
616 |
||||
| Live services and other | 1,259 |
|
1,173 |
|
||
| Total net revenue | 1,881 |
|
1,789 |
|
||
| Net income | 204 |
|
66 |
|
||
| Diluted earnings per share | 0.73 |
|
0.23 |
|
||
| Operating cash flow | 1,123 |
|
1,534 |
|
||
| Value of shares repurchased | 325 |
|
325 |
|
||
| Number of shares repurchased | 2.6 |
|
2.4 |
|
||
The following GAAP-based financial data2 and tax rate of
| Three Months Ended |
|||||||||||
| GAAP-Based Financial Data | |||||||||||
| (in $ millions) | Statement of Operations |
Acquisition- related expenses |
Change in deferred net revenue (online- enabled games) |
Stock-based compensation |
|||||||
| Total net revenue | 1,881 |
|
- |
|
461 |
- |
|
||||
| Cost of revenue | 568 |
|
(26 |
) |
- |
|
(2 |
) |
|||
| Gross profit | 1,313 |
|
26 |
|
461 |
|
2 |
|
|||
| Total operating expenses | 1,024 |
|
(50 |
) |
- |
|
(139 |
) |
|||
| Operating income | 289 |
|
76 |
|
461 |
|
141 |
|
|||
| Interest and other income (expense), net | (7 |
) |
- |
|
- |
|
- |
|
|||
| Income before provision for income taxes | 282 |
|
76 |
|
461 |
|
141 |
|
|||
| Number of shares used in computation: | |||||||||||
| Diluted | 278 |
|
|||||||||
Trailing Twelve Months Financial Highlights
| Twelve Months Ended | ||||||
2022 |
2021 |
|||||
| (in $ millions) | ||||||
| Full game | 2,003 |
1,805 |
||||
| Live services and other | 5,374 |
|
4,707 |
|
||
| Total net revenue | 7,377 |
|
6,512 |
|
||
| Net income | 1,039 |
|
640 |
|
||
| Operating cash flow | 1,377 |
|
1,826 |
|
||
| Value of shares repurchased | 1,295 |
|
1,300 |
|
||
| Number of shares repurchased | 10.2 |
|
9.4 |
|
||
The following GAAP-based financial data2 was used internally by company management to adjust its GAAP results in order to assess EA’s operating results. During fiscal 2022, management used a tax rate of
| Twelve Months Ended |
|||||||||||
| GAAP-Based Financial Data | |||||||||||
| (in $ millions) | Statement of Operations |
Acquisition- related expenses |
Change in deferred net revenue (online- enabledgames) |
Stock-based compensation |
|||||||
| Total net revenue | 7,377 |
|
- |
|
(231 |
) |
- |
|
|||
| Cost of revenue | 1,763 |
|
(140 |
) |
- |
|
(7 |
) |
|||
| Gross profit | 5,614 |
|
140 |
|
(231 |
) |
7 |
|
|||
| Total operating expenses | 4,092 |
|
(184 |
) |
- |
|
(524 |
) |
|||
| Operating income | 1,522 |
|
324 |
|
(231 |
) |
531 |
|
|||
| Interest and other income (expense), net | (21 |
) |
- |
|
- |
|
- |
|
|||
| Income before provision for income taxes | 1,501 |
|
324 |
|
(231 |
) |
531 |
|
|||
Operating Metric
The following is a calculation of our total net bookings1 for the periods presented:
| Three Months Ended | Twelve Months Ended | |||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
| (in $ millions) | ||||||||||||
| Total net revenue | 1,881 |
1,789 |
7,377 |
6,512 |
||||||||
| Change in deferred net revenue (online-enabled games) | 461 |
|
788 |
|
(231 |
) |
742 |
|
||||
| Total net bookings | 2,342 |
|
2,577 |
|
7,146 |
|
7,254 |
|
||||
Business Outlook as of
EA announced a new release date for Star Wars Jedi: Survivor, which will launch globally on
Fourth Quarter Fiscal Year 2023 Expectations – Ending
Financial metrics:
-
Net revenue is expected to be approximately
$1.70 0 billion$1.80 0 billion-
Change in deferred net revenue (online-enabled games) is expected to be approximately
( .$25) million
-
Change in deferred net revenue (online-enabled games) is expected to be approximately
-
Net income is expected to be approximately
$14 million $55 million -
Diluted earnings per share is expected to be approximately
$0.05 $0.20 - The Company estimates a share count of 277 million for purposes of calculating fourth quarter fiscal 2023 diluted earnings per share.
Operational metric:
-
Net bookings1 is expected to be approximately
$1.67 5 billion$1.77 5 billion- This guidance includes the shift of Star Wars Jedi: Survivor to Q1 FY24.
In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of
| Three Months Ending |
||||||||||
| GAAP-Based Financial Data* | ||||||||||
GAAP Guidance Range |
Acquisition- related expenses |
Change in deferred net revenue (online- enabled games) |
Stock-based compensation |
|||||||
| (in $ millions) | ||||||||||
| Total net revenue | 1,700 to 1,800 | - |
|
(25 |
) |
- |
|
|||
| Cost of revenue | 395 to 415 | (25 |
) |
- |
|
- |
|
|||
| Operating expense | 1,075 to 1,085 | (35 |
) |
- |
|
(140 |
) |
|||
| Income before provision for income taxes | 235 to 304 | 60 |
|
(25 |
) |
140 |
|
|||
| Net income | 14 to 55 | |||||||||
| Number of shares used in computation: | ||||||||||
| Diluted shares | 277 |
|||||||||
| * The mid-point of the range has been used for purposes of presenting the reconciling items. |
Fiscal Year 2023 Expectations – Ending
Financial metrics:
-
Net revenue is expected to be approximately
$7.25 2 billion$7.35 2 billion-
Change in deferred net revenue (online-enabled games) is expected to be approximately
( .$182) million
-
Change in deferred net revenue (online-enabled games) is expected to be approximately
-
Net income is expected to be approximately
$828 million $869 million -
Diluted earnings per share is expected to be approximately
$2.97 $3.11 -
Operating cash flow is expected to be approximately
$1.40 0 billion$1.45 0 billion - The Company estimates a share count of 279 million for purposes of calculating fiscal year 2023 diluted earnings per share.
Operational metric:
-
Net bookings1 is expected to be approximately
$7.07 0 billion$7.17 0 billion
In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of
| Twelve Months Ending |
||||||||||
| GAAP-Based Financial Data* | ||||||||||
GAAP Guidance Range |
Acquisition- related expenses |
Change in deferred net revenue (online- enabled games) |
Stock-based compensation |
|||||||
| (in $ millions) | ||||||||||
| Total net revenue | 7,252 to 7,352 | - |
|
(182 |
) |
- |
|
|||
| Cost of revenue | 1,739 to 1,759 | (120 |
) |
- |
|
(5 |
) |
|||
| Operating expense | 4,126 to 4,136 | (167 |
) |
- |
|
(541 |
) |
|||
| Income before provision for income taxes | 1,380 to 1,449 | 287 |
|
(182 |
) |
546 |
|
|||
| Net income | 828 to 869 | |||||||||
| Number of shares used in computation: | ||||||||||
| Diluted shares | 279 |
|||||||||
| * The mid-point of the range has been used for purposes of presenting the reconciling items. |
Conference Call and Supporting Documents
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
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
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
These forward-looking statements are current as of
While
About
In fiscal year 2022, EA posted GAAP net revenue of approximately
EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of
1 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.
2 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
|
|||||||||||
Unaudited Condensed Consolidated Statements of Operations |
|||||||||||
(in $ millions, except per share data) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended December 31, |
|
Nine Months Ended
|
||||||||
|
|
||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Net revenue |
1,881 |
|
|
1,789 |
|
|
5,552 |
|
|
5,166 |
|
Cost of revenue |
568 |
|
|
631 |
|
|
1,344 |
|
|
1,440 |
|
Gross profit |
1,313 |
|
|
1,158 |
|
|
4,208 |
|
|
3,726 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||
Research and development |
556 |
|
|
539 |
|
|
1,693 |
|
|
1,607 |
|
Marketing and sales |
256 |
|
|
293 |
|
|
723 |
|
|
716 |
|
General and administrative |
162 |
|
|
163 |
|
|
503 |
|
|
508 |
|
Amortization and impairment of intangibles |
50 |
|
|
61 |
|
|
132 |
|
|
131 |
|
Total operating expenses |
1,024 |
|
|
1,056 |
|
|
3,051 |
|
|
2,962 |
|
Operating income |
289 |
|
|
102 |
|
|
1,157 |
|
|
764 |
|
Interest and other income (expense), net |
(7 |
) |
|
(11 |
) |
|
(12 |
) |
|
(39 |
) |
Income before provision for income taxes |
282 |
|
|
91 |
|
|
1,145 |
|
|
725 |
|
Provision for income taxes |
78 |
|
|
25 |
|
|
331 |
|
|
161 |
|
Net income |
204 |
|
|
66 |
|
|
814 |
|
|
564 |
|
Earnings per share |
|
|
|
|
|
|
|
||||
Basic |
0.74 |
|
|
0.23 |
|
|
2.93 |
|
|
1.99 |
|
Diluted |
0.73 |
|
|
0.23 |
|
|
2.92 |
|
|
1.97 |
|
Number of shares used in computation |
|
|
|
|
|
|
|
||||
Basic |
276 |
|
|
283 |
|
|
278 |
|
|
284 |
|
Diluted |
278 |
|
|
285 |
|
|
279 |
|
|
287 |
|
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on
|
Three Months Ended |
||||||||||
|
2022 Guidance
( |
|
|
|
2022 Actuals |
|
2021 Actuals |
||||
|
|
Variance |
|
|
|||||||
Net revenue |
|
|
|
|
|
|
|
||||
Net revenue |
1,875 |
|
|
6 |
|
|
1,881 |
|
|
1,789 |
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
Change in deferred net revenue (online-enabled games)1 |
600 |
|
|
(139 |
) |
|
461 |
|
|
788 |
|
Cost of revenue |
|
|
|
|
|
|
|
||||
Cost of revenue |
570 |
|
|
(2 |
) |
|
568 |
|
|
631 |
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
Acquisition-related expenses |
(30 |
) |
|
4 |
|
|
(26 |
) |
|
(44 |
) |
Stock-based compensation |
— |
|
|
(2 |
) |
|
(2 |
) |
|
(1 |
) |
Operating expenses |
|
|
|
|
|
|
|
||||
Operating expenses |
1,085 |
|
|
(61 |
) |
|
1,024 |
|
|
1,056 |
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
Acquisition-related expenses |
(35 |
) |
|
(15 |
) |
|
(50 |
) |
|
(61 |
) |
Stock-based compensation |
(150 |
) |
|
11 |
|
|
(139 |
) |
|
(128 |
) |
Income before tax |
|
|
|
|
|
|
|
||||
Income before tax |
219 |
|
|
63 |
|
|
282 |
|
|
91 |
|
GAAP-based financial data |
|
|
|
|
|
|
|
||||
Acquisition-related expenses |
65 |
|
|
11 |
|
|
76 |
|
|
105 |
|
Change in deferred net revenue (online-enabled games)1 |
600 |
|
|
(139 |
) |
|
461 |
|
|
788 |
|
Stock-based compensation |
150 |
|
|
(9 |
) |
|
141 |
|
|
129 |
|
Tax rate used for management reporting |
19 |
% |
|
|
|
19 |
% |
|
18 |
% |
|
Earnings per share |
|
|
|
|
|
|
|
||||
Basic |
0.51 |
|
|
0.23 |
|
|
0.74 |
|
|
0.23 |
|
Diluted |
0.51 |
|
|
0.22 |
|
|
0.73 |
|
|
0.23 |
|
Number of shares used in computation |
|
|
|
|
|
|
|
||||
Basic |
277 |
|
|
(1 |
) |
|
276 |
|
|
283 |
|
Diluted |
279 |
|
|
(1 |
) |
|
278 |
|
|
285 |
|
1 |
|
The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. |
|
|||||
Unaudited Condensed Consolidated Balance Sheets |
|||||
(in $ millions) |
|||||
|
|
|
|
||
|
|
|
|
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
2,202 |
|
|
2,732 |
|
Short-term investments |
351 |
|
|
330 |
|
Receivables, net |
836 |
|
|
650 |
|
Other current assets |
453 |
|
|
439 |
|
Total current assets |
3,842 |
|
|
4,151 |
|
Property and equipment, net |
553 |
|
|
550 |
|
|
5,380 |
|
|
5,387 |
|
Acquisition-related intangibles, net |
735 |
|
|
962 |
|
Deferred income taxes, net |
2,443 |
|
|
2,243 |
|
Other assets |
517 |
|
|
507 |
|
TOTAL ASSETS |
13,470 |
|
|
13,800 |
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
62 |
|
|
101 |
|
Accrued and other current liabilities |
1,243 |
|
|
1,388 |
|
Deferred net revenue (online-enabled games) |
1,808 |
|
|
2,024 |
|
Total current liabilities |
3,113 |
|
|
3,513 |
|
Senior notes, net |
1,879 |
|
|
1,878 |
|
Income tax obligations |
525 |
|
|
386 |
|
Deferred income taxes, net |
1 |
|
|
1 |
|
Other liabilities |
401 |
|
|
397 |
|
Total liabilities |
5,919 |
|
|
6,175 |
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
||
Common stock |
3 |
|
|
3 |
|
Retained earnings |
7,585 |
|
|
7,607 |
|
Accumulated other comprehensive income (loss) |
(37 |
) |
|
15 |
|
Total stockholders’ equity |
7,551 |
|
|
7,625 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
13,470 |
|
|
13,800 |
|
2 |
|
Derived from audited consolidated financial statements. |
|
|||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||||||
(in $ millions) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||||
Net income |
204 |
|
|
66 |
|
|
814 |
|
|
564 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||
Depreciation, amortization, accretion and impairment |
122 |
|
|
146 |
|
|
363 |
|
|
345 |
|
Stock-based compensation |
141 |
|
|
129 |
|
|
406 |
|
|
403 |
|
Change in assets and liabilities |
|
|
|
|
|
|
|
||||
Receivables, net |
90 |
|
|
56 |
|
|
(186 |
) |
|
(390 |
) |
Other assets |
(28 |
) |
|
(24 |
) |
|
(53 |
) |
|
(75 |
) |
Accounts payable |
(74 |
) |
|
(51 |
) |
|
(21 |
) |
|
(9 |
) |
Accrued and other liabilities |
297 |
|
|
433 |
|
|
28 |
|
|
183 |
|
Deferred income taxes, net |
(47 |
) |
|
— |
|
|
(203 |
) |
|
(140 |
) |
Deferred net revenue (online-enabled games) |
418 |
|
|
779 |
|
|
(215 |
) |
|
574 |
|
Net cash provided by operating activities |
1,123 |
|
|
1,534 |
|
|
933 |
|
|
1,455 |
|
|
|
|
|
|
|
|
|
||||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||||
Capital expenditures |
(48 |
) |
|
(48 |
) |
|
(160 |
) |
|
(135 |
) |
Proceeds from maturities and sales of short-term investments |
77 |
|
|
65 |
|
|
243 |
|
|
1,193 |
|
Purchase of short-term investments |
(90 |
) |
|
(69 |
) |
|
(263 |
) |
|
(438 |
) |
Acquisitions, net of cash acquired |
— |
|
|
3 |
|
|
— |
|
|
(3,391 |
) |
Net cash used in investing activities |
(61 |
) |
|
(49 |
) |
|
(180 |
) |
|
(2,771 |
) |
|
|
|
|
|
|
|
|
||||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||||
Proceeds from issuance of common stock |
3 |
|
|
3 |
|
|
47 |
|
|
44 |
|
Cash dividends paid |
(52 |
) |
|
(48 |
) |
|
(158 |
) |
|
(145 |
) |
Cash paid to taxing authorities for shares withheld from employees |
(44 |
) |
|
(72 |
) |
|
(161 |
) |
|
(193 |
) |
Repurchase and retirement of common stock |
(325 |
) |
|
(325 |
) |
|
(970 |
) |
|
(975 |
) |
Net cash used in financing activities |
(418 |
) |
|
(442 |
) |
|
(1,242 |
) |
|
(1,269 |
) |
|
|
|
|
|
|
|
|
||||
Effect of foreign exchange on cash and cash equivalents |
19 |
|
|
(3 |
) |
|
(41 |
) |
|
(5 |
) |
Change in cash and cash equivalents |
663 |
|
|
1,040 |
|
|
(530 |
) |
|
(2,590 |
) |
Beginning cash and cash equivalents |
1,539 |
|
|
1,630 |
|
|
2,732 |
|
|
5,260 |
|
Ending cash and cash equivalents |
2,202 |
|
|
2,670 |
|
|
2,202 |
|
|
2,670 |
|
|
|||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics |
|||||||||||||||||
(in $ millions, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
YOY % |
||||||
|
FY22 |
|
FY22 |
|
FY23 |
|
FY23 |
|
FY23 |
|
Change |
||||||
Net revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
Net revenue |
1,789 |
|
|
1,825 |
|
|
1,767 |
|
|
1,904 |
|
|
1,881 |
|
|
5 |
% |
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in deferred net revenue (online-enabled games)1 |
788 |
|
|
(74 |
) |
|
(468 |
) |
|
(150 |
) |
|
461 |
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit |
1,158 |
|
|
1,406 |
|
|
1,453 |
|
|
1,442 |
|
|
1,313 |
|
|
13 |
% |
Gross profit (as a % of net revenue) |
65 |
% |
|
77 |
% |
|
82 |
% |
|
76 |
% |
|
70 |
% |
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
Acquisition-related expenses |
44 |
|
|
45 |
|
|
30 |
|
|
39 |
|
|
26 |
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
788 |
|
|
(74 |
) |
|
(468 |
) |
|
(150 |
) |
|
461 |
|
|
|
|
Stock-based compensation |
1 |
|
|
2 |
|
|
2 |
|
|
1 |
|
|
2 |
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income |
102 |
|
|
365 |
|
|
441 |
|
|
427 |
|
|
289 |
|
|
183 |
% |
Operating income (as a % of net revenue) |
6 |
% |
|
20 |
% |
|
25 |
% |
|
22 |
% |
|
15 |
% |
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
Acquisition-related expenses |
105 |
|
|
97 |
|
|
69 |
|
|
82 |
|
|
76 |
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
788 |
|
|
(74 |
) |
|
(468 |
) |
|
(150 |
) |
|
461 |
|
|
|
|
Stock-based compensation |
129 |
|
|
125 |
|
|
125 |
|
|
140 |
|
|
141 |
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
66 |
|
|
225 |
|
|
311 |
|
|
299 |
|
|
204 |
|
|
209 |
% |
Net income (as a % of net revenue) |
4 |
% |
|
12 |
% |
|
18 |
% |
|
16 |
% |
|
11 |
% |
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||
Acquisition-related expenses |
105 |
|
|
97 |
|
|
69 |
|
|
82 |
|
|
76 |
|
|
|
|
Change in deferred net revenue (online-enabled games)1 |
788 |
|
|
(74 |
) |
|
(468 |
) |
|
(150 |
) |
|
461 |
|
|
|
|
Stock-based compensation |
129 |
|
|
125 |
|
|
125 |
|
|
140 |
|
|
141 |
|
|
|
|
Tax rate used for management reporting |
18 |
% |
|
18 |
% |
|
19 |
% |
|
19 |
% |
|
19 |
% |
|
|
|
Diluted earnings per share |
0.23 |
|
|
0.80 |
|
|
1.11 |
|
|
1.07 |
|
|
0.73 |
|
|
217 |
% |
Number of shares used in computation |
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
283 |
|
|
281 |
|
|
279 |
|
|
278 |
|
|
276 |
|
|
|
|
Diluted |
285 |
|
|
283 |
|
|
281 |
|
|
279 |
|
|
278 |
|
|
|
|
1 |
|
The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. |
|
|||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics |
|||||||||||||||||
(in $ millions) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
YOY % |
||||||
|
FY22 |
|
FY22 |
|
FY23 |
|
FY23 |
|
FY23 |
|
Change |
||||||
QUARTERLY NET REVENUE PRESENTATIONS |
|
|
|
|
|
|
|
|
|
|
|
||||||
Net revenue by composition |
|
|
|
|
|
|
|
|
|
|
|
||||||
Full game downloads |
400 |
|
|
312 |
|
|
237 |
|
|
328 |
|
|
423 |
|
|
6 |
% |
Packaged goods |
216 |
|
|
126 |
|
|
104 |
|
|
274 |
|
|
199 |
|
|
(8 |
%) |
Full game |
616 |
|
|
438 |
|
|
341 |
|
|
602 |
|
|
622 |
|
|
1 |
% |
Live services and other |
1,173 |
|
|
1,387 |
|
|
1,426 |
|
|
1,302 |
|
|
1,259 |
|
|
7 |
% |
Total net revenue |
1,789 |
|
|
1,825 |
|
|
1,767 |
|
|
1,904 |
|
|
1,881 |
|
|
5 |
% |
Full game |
34 |
% |
|
24 |
% |
|
19 |
% |
|
32 |
% |
|
33 |
% |
|
|
|
Live services and other |
66 |
% |
|
76 |
% |
|
81 |
% |
|
68 |
% |
|
67 |
% |
|
|
|
Total net revenue % |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|||||||||||
Full game downloads |
179 |
|
|
(103 |
) |
|
(111 |
) |
|
17 |
|
|
45 |
|
|
|
|
Packaged goods |
105 |
|
|
(68 |
) |
|
(65 |
) |
|
16 |
|
|
20 |
|
|
|
|
Full game |
284 |
|
|
(171 |
) |
|
(176 |
) |
|
33 |
|
|
65 |
|
|
|
|
Live services and other |
504 |
|
|
97 |
|
|
(292 |
) |
|
(183 |
) |
|
396 |
|
|
|
|
Total change in deferred net revenue (online-enabled games) by composition1 |
788 |
|
|
(74 |
) |
|
(468 |
) |
|
(150 |
) |
|
461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net revenue by platform |
|
|
|
|
|
|
|
|
|
|
|
||||||
Console |
1,138 |
|
|
1,092 |
|
|
1,042 |
|
|
1,161 |
|
|
1,152 |
|
|
1 |
% |
PC & Other |
374 |
|
|
420 |
|
|
402 |
|
|
423 |
|
|
435 |
|
|
16 |
% |
Mobile |
277 |
|
|
313 |
|
|
323 |
|
|
320 |
|
|
294 |
|
|
6 |
% |
Total net revenue |
1,789 |
|
|
1,825 |
|
|
1,767 |
|
|
1,904 |
|
|
1,881 |
|
|
5 |
% |
GAAP-based financial data |
|
|
|
|
|
|
|||||||||||
Console |
608 |
|
|
(86 |
) |
|
(405 |
) |
|
(134 |
) |
|
423 |
|
|
|
|
PC & Other |
137 |
|
|
3 |
|
|
(54 |
) |
|
8 |
|
|
29 |
|
|
|
|
Mobile |
43 |
|
|
9 |
|
|
(9 |
) |
|
(24 |
) |
|
9 |
|
|
|
|
Total change in deferred net revenue (online-enabled games) by platform1 |
788 |
|
|
(74 |
) |
|
(468 |
) |
|
(150 |
) |
|
461 |
|
|
|
|
1 |
|
The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. |
|
|||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics |
|||||||||||||||||
(in $ millions) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
YOY % |
||||||
|
FY22 |
|
FY22 |
|
FY23 |
|
FY23 |
|
FY23 |
|
Change |
||||||
CASH FLOW DATA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating cash flow |
1,534 |
|
444 |
|
(78 |
) |
|
(112 |
) |
|
1,123 |
|
(27 |
%) |
|||
Operating cash flow - TTM |
1,826 |
|
|
1,899 |
|
|
1,964 |
|
|
1,788 |
|
|
1,377 |
|
|
(25 |
%) |
Capital expenditures |
48 |
|
|
53 |
|
|
59 |
|
|
53 |
|
|
48 |
|
|
— |
|
Capital expenditures - TTM |
166 |
|
|
188 |
|
|
203 |
|
|
213 |
|
|
213 |
|
|
28 |
% |
Repurchase and retirement of common stock |
325 |
|
|
325 |
|
|
320 |
|
|
325 |
|
|
325 |
|
|
— |
|
Cash dividends paid |
48 |
|
|
48 |
|
|
53 |
|
|
53 |
|
|
52 |
|
|
8 |
% |
DEPRECIATION |
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation expense |
41 |
|
|
42 |
|
|
44 |
|
|
45 |
|
|
46 |
|
|
12 |
% |
BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
2,670 |
|
|
2,732 |
|
|
2,082 |
|
|
1,539 |
|
|
2,202 |
|
|
|
|
Short-term investments |
346 |
|
|
330 |
|
|
334 |
|
|
335 |
|
|
351 |
|
|
|
|
Cash and cash equivalents, and short-term investments |
3,016 |
|
|
3,062 |
|
|
2,416 |
|
|
1,874 |
|
|
2,553 |
|
|
(15 |
%) |
Receivables, net |
965 |
|
|
650 |
|
|
579 |
|
|
919 |
|
|
836 |
|
|
(13 |
%) |
STOCK-BASED COMPENSATION |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue |
1 |
|
|
2 |
|
|
2 |
|
|
1 |
|
|
2 |
|
|
|
|
Research and development |
86 |
|
|
84 |
|
|
81 |
|
|
95 |
|
|
95 |
|
|
|
|
Marketing and sales |
14 |
|
|
13 |
|
|
13 |
|
|
16 |
|
|
15 |
|
|
|
|
General and administrative |
28 |
|
|
26 |
|
|
29 |
|
|
28 |
|
|
29 |
|
|
|
|
Total stock-based compensation |
129 |
|
|
125 |
|
|
125 |
|
|
140 |
|
|
141 |
|
|
|
|
Category:
View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005414/en/
Vice President, Investor Relations
650-628-0255
cevenden@ea.com
Director,
650-628-7978
erheaume@ea.com
Source:
FAQ
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