Electronic Arts Reports Strong Q3 FY21 Financial Results
Electronic Arts Inc. (NASDAQ: EA) announced its preliminary financial results for Q3 of the fiscal year ending December 31, 2020. Net bookings for the trailing twelve months reached $5.956 billion, marking an 8% year-over-year increase. The company plans to raise its net bookings outlook due to strong performance in live services like FIFA Ultimate Team and Apex Legends. EA reported a net income of $211 million and diluted earnings per share of $0.72. Additionally, EA declared a cash dividend of $0.17 per share, payable on March 24, 2021.
- Net bookings for the trailing twelve months reached $5.956 billion, up 8% year-over-year.
- Recorded net cash provided by operating activities of $1.124 billion for the quarter.
- EA repurchased 2.5 million shares for $326 million during the quarter, totaling 5.9 million shares repurchased for $695 million over the last twelve months.
- Strong performance in live services, particularly FIFA Ultimate Team and Apex Legends.
- Net income declined to $211 million from $346 million year-over-year.
- Diluted earnings per share fell to $0.72 from $1.18 year-over-year.
Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third fiscal quarter ended December 31, 2020.
“We’re bringing great entertainment to hundreds of millions of people all over the world,” said CEO Andrew Wilson. “Our amazing teams continue to deliver exceptional, high-quality experiences as more players connect with their friends and engage deeply with our games. With our expansion plans for EA SPORTS, strong catalogue of owned IP, leading live services, and ability to span every platform, we are growing to reach an even larger audience.”
“We delivered another strong quarter, driven by live services outperformance in Ultimate Team and Apex Legends,” said COO and CFO Blake Jorgensen. “We are raising our net bookings outlook for the full year on the strength we continue to see in our business. Looking further ahead, even with the upside this year, we anticipate delivering growth in fiscal 2022, driven by the next Battlefield.”
EA has posted a slide presentation and a financial model of EA’s historical results and guidance on EA’s IR website at www.ir.ea.com. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR website. News and ongoing updates regarding EA and its games are available on EA’s blog at www.ea.com/news.
Selected Operating Highlights and Metrics
-
Net bookings* for the trailing twelve months was
$5.95 6 billion, up8% year-over-year. - Launched FIFA 21, Medal of HonorTM: Above and Beyond, Need for SpeedTM Hot Pursuit Remastered, and NHL 21 during the quarter.
- Launched FIFA 21 and Madden NFL 21 on next generation consoles during the quarter.
- Over the past fiscal year, EA SPORTSTM franchises have engaged more than 230 million people.
- FIFA Ultimate TeamTM had a record of nearly 6 million daily active players in December.
-
Apex LegendsTM had
30% growth in new players, year-over-year. - The SimsTM 4, life to date, has more than 33 million players and reached record daily, weekly, and monthly average players in December.
* 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.
Selected Financial Highlights and Metrics
-
Net cash provided by operating activities was
$1.12 4 billion for the quarter and a record$2.06 1 billion for the trailing twelve months. -
EA repurchased 2.5 million shares for
$326 million during the quarter, bringing the total for the last twelve months to 5.9 million shares for$695 million . -
EA paid a cash dividend of
$0.17 per share during the quarter.
Dividend
EA has declared a quarterly cash dividend of
Quarterly Financial Highlights
| Three Months Ended | ||||
| December 31, | ||||
2020 |
2019 |
|||
| (in $ millions, except per share amounts) | ||||
| Full game | 722 |
689 |
||
| Live services and other | 951 |
904 |
||
| Total net revenue | 1,673 |
1,593 |
||
| Net income | 211 |
346 |
||
| Diluted earnings per share | 0.72 |
1.18 |
||
| Operating cash flow | 1,124 |
1,104 |
||
| Value of shares repurchased | 326 |
305 |
||
| Number of shares repurchased | 2.5 |
3.1 |
||
The following GAAP-based financial data and tax rate of
| Three Months Ended December 31, 2020 | |||||||||||
| 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 | 1,673 |
|
- |
|
727 |
- |
|
||||
| Cost of revenue | 601 |
|
- |
|
- |
(1 |
) |
||||
| Gross profit | 1,072 |
|
- |
|
727 |
1 |
|
||||
| Total operating expenses | 821 |
|
(5 |
) |
- |
(110 |
) |
||||
| Operating income | 251 |
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