Electronic Arts Reports Q4 and FY21 Financial Results

Rhea-AI Summary

Electronic Arts Inc. (NASDAQ: EA) reported strong preliminary financial results for fiscal 2021, with net bookings rising 15% year-over-year to $6.190 billion, exceeding expectations by over $600 million. The company saw significant engagement, adding 42 million new players and delivering 13 new games. Notable performances included FIFA 21 with over 25 million players and Apex Legends surpassing 100 million players. EA declared a quarterly cash dividend of $0.17 per share and repurchased 2.4 million shares for $325 million in Q4. Looking ahead, the company expects net bookings growth in the high teens in FY22.

Positive

• 15% year-over-year increase in net bookings to $6.190 billion.
• 42 million new players joined EA's network during fiscal 2021.
• Apex Legends surpassed 100 million players.
• FIFA Ultimate Team players grew 16% year-over-year.
• Cash dividend of $0.17 per share declared.

Negative

• Net income decreased to $837 million from $3.039 billion.

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fiscal fourth quarter and full year ended March 31, 2021.

“Our teams have done incredible work over the last year to deliver amazing experiences during a very challenging time for everyone around the world,” said Andrew Wilson, CEO of Electronic Arts. “With tremendous engagement across our portfolio, we delivered a record year for Electronic Arts. We’re now accelerating in FY22, powered by expansion of our blockbuster franchises to more platforms and geographies, a deep pipeline of new content, and recent acquisitions that will be catalysts for further growth.”

“EA delivered a strong quarter, driven by live services and Apex Legends’ extraordinary performance. Apex steadily grew through the last year, driven by the games team and the content they are delivering,” said COO and CFO Blake Jorgensen. “Looking forward, the momentum in our existing live services provides a solid foundation for FY22. Combined with a new Battlefield and our recent acquisitions, we expect net bookings growth in the high teens.”

Selected Operating Highlights and Metrics

• Net bookings¹ for fiscal 2021 was $6.190 billion, up 15% year-over-year, and over $600 million above original expectations.
• Delivered 13 new games and had more than 42 million new players join our network during the fiscal year.
• FIFA 21, life to date, has more than 25 million console/PC players.
• FIFA Ultimate Team™ players grew 16% year-over-year and FUT matches were up 180%.
• Apex Legends™ has more than 100 million players life to date on console/PC, and Season 8 had more than 12 million weekly average players.
• Record number of new players joined Madden NFL on console/PC during fiscal 21.
• The Sims™ 4, life to date, has almost 36 million players and delivered its sixth consecutive year of franchise growth.

Selected Financial Highlights and Metrics

• Net cash provided by operating activities was $371 million for the quarter and $1.934 billion for the fiscal year.
• EA repurchased 2.4 million shares for $325 million during the quarter, bringing the total for the fiscal year to 5.6 million shares for $729 million.
• EA paid a cash dividend of $0.17 per share during the quarter.

Dividend

EA has declared a quarterly cash dividend of $0.17 per share of the Company’s common stock. The dividend is payable on June 23, 2021 to shareholders of record as of the close of business on June 2, 2021.

Quarterly Financial Highlights

		Three Months Ended
		March 31,
		2021		2020
(in $ millions, except per share amounts)
Full game		250		356
Live services and other		1,096		1,031
Total net revenue		1,346		1,387
Net income		76		418
Diluted earnings per share		0.26		1.43
Operating cash flow		371		498
Value of shares repurchased		325		291
Number of shares repurchased		2.4		2.7

The following GAAP-based financial data² and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

		Three Months Ended March 31, 2021
					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		1,346			-			144		-
Cost of revenue		319			(4	)		-		(1	)
Gross profit		1,027			4			144		1
Total operating expenses		852			(14	)		-		(108	)
Operating income		175			18			144		109
Interest and other income (expense), net		(10	)		-			-		-
Income before provision for income taxes		165			18			144		109
Number of shares used in computation:
Diluted		290

Fiscal Year Financial Highlights

		Twelve Months Ended
		March 31,
		2021		2020
(in $ millions)
Full game		1,613		1,887
Live services and other		4,016		3,650
Total net revenue		5,629		5,537
Net income		837		3,039*
Diluted earnings per share		2.87		10.30*
Operating cash flow		1,934		1,797
Value of shares repurchased		729		1,207
Number of shares repurchased		5.6		12.3
*Includes the impact of one-time tax benefits recognized during the period.

The following GAAP-based financial data² and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

		Twelve Months Ended March 31, 2021
					GAAP-Based Financial Data

FAQ

What were Electronic Arts' net bookings for fiscal 2021?

EA's net bookings for fiscal 2021 were $6.190 billion, an increase of 15% year-over-year.

What is the expected net bookings growth for EA in FY22?

EA expects net bookings growth in the high teens for FY22.

What dividend did Electronic Arts declare for Q4 2021?

EA declared a quarterly cash dividend of $0.17 per share for Q4 2021.

How many new players joined EA's network in fiscal 2021?

EA added over 42 million new players to its network during fiscal 2021.

What was EA's net income for fiscal 2021?

EA's net income for fiscal 2021 was $837 million, down from $3.039 billion the previous year.