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Electronic Arts Reports Q1 FY23 Financial Results

Electronic Arts Inc. (NASDAQ:EA) today announced preliminary financial results for its first fiscal quarter ended June 30, 2022.

“EA delivered strong results in Q1 with our growing player network deeply engaged in new games and live services,” said CEO Andrew Wilson. “Our expanding EA SPORTS portfolio and owned IP franchises continue to power resilience and longevity in our business. Our teams remain focused on what they do best – making amazing experiences that inspire new generations to play, watch, create, compete and connect.”

“Our FIFA franchise and the successful launch of F1 drove our net bookings outperformance, delivering another quarter ahead of expectations,” said CFO Chris Suh. “Looking ahead, our focus on execution and disciplined investment across our broad portfolio of games and live services will fuel our long-term growth.”

Selected Operating Highlights and Metrics

  • Net bookings1 for the trailing twelve months was $7.478 billion, up 22% year-over-year.
  • Live services and other net bookings for the trailing twelve months were up 20% year-over-year and represent 73% of total net bookings.
  • The EA player network grew to nearly 600 million active accounts at quarter end.
  • FIFA Ultimate Team™ engagement during the quarter was up nearly 40% year-over-year in weekly and daily average players.
  • In Q1, FIFA Mobile delivered the highest net bookings quarter in history, with record high DAUs, up 10% from last quarter.

Selected Financial Highlights and Metrics

  • Net cash (used in)/provided by operating activities was $(78) million for the quarter and $1.964 billion for the trailing twelve months.
  • EA repurchased 2.5 million shares for $320 million during the quarter, bringing the total for the trailing twelve months to 9.7 million shares for $1.295 billion.
  • EA paid a cash dividend of $0.19 per share during the quarter, for a total of $53 million.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on September 21, 2022 to shareholders of record as of the close of business on August 31, 2022.

Quarterly Financial Highlights

Three Months Ended
June 30,

2022

2021

(in $ millions, except per share amounts)
Full game

341

 

322

 

Live services and other

1,426

 

1,229

 

Total net revenue

1,767

 

1,551

 

 
Net income

311

 

204

 

Diluted earnings per share

1.11

 

0.71

 

 
Operating cash flow

(78

)

(143

)

 
Value of shares repurchased

320

 

325

 

Number of shares repurchased

2.5

 

2.3

 

The following GAAP-based financial data2 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 June 30, 2022
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

1,767

 

-

 

(468

)

-

 

Cost of revenue

314

 

(30

)

-

 

(2

)

Gross profit

1,453

 

30

 

(468

)

2

 

Total operating expenses

1,012

 

(39

)

-

 

(123

)

Operating income

441

 

69

 

(468

)

125

 

Interest and other income (expense), net

(5

)

-

 

-

 

-

 

Income before provision for income taxes

436

 

69

 

(468

)

125

 

Number of shares used in computation:
Diluted

281

 

Trailing Twelve Months Financial Highlights

Twelve Months Ended
June 30,

2022

2021

(in $ millions)
Full game

2,012

1,576

Live services and other

5,195

 

4,145

 

Total net revenue

7,207

 

5,721

 

 
Net income

896

 

676

 

 
Operating cash flow

1,964

 

1,413

 

 
Value of shares repurchased

1,295

 

976

 

Number of shares repurchased

9.7

 

7.2

 

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 18% and in fiscal 2023 a tax rate of 19%.

Twelve Months Ended June 30, 2022
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

7,207

 

-

 

271

-

 

Cost of revenue

1,858

 

(141

)

-

 

(7

)

Gross profit

5,349

 

141

 

271

 

7

 

Total operating expenses

4,101

 

(182

)

-

 

(521

)

Operating income

1,248

 

323

 

271

 

528

 

Interest and other income (expense), net

(39

)

-

 

-

 

-

 

Income before provision for income taxes

1,209

 

323

 

271

 

528

 

Operating Metric

The following is a calculation of our total net bookings1 for the periods presented:

Three Months Ended Twelve Months Ended
June 30, June 30,

2022

2021

2022

2021

(in $ millions)
Total net revenue

1,767

 

1,551

 

7,207

5,721

Change in deferred net revenue (online-enabled games)

(468

)

(215

)

271

 

415

 

Net bookings

1,299

 

1,336

 

7,478

 

6,136

 

Business Outlook as of August 2, 2022

Fiscal Year 2023 Expectations – Ending March 31, 2023

Financial metrics:

  • Net revenue is expected to be approximately $7.600 to $7.800 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $300 million.
  • Net income is expected to be approximately $793 to $815 million.
  • Diluted earnings per share is expected to be approximately $2.79 to $2.87.
  • Operating cash flow is expected to be approximately $1.600 to $1.650 billion.
  • The Company estimates a share count of 284 million for purposes of calculating fiscal year 2023 diluted earnings per share.

Operational metric:

  • Net bookings1 is expected to be approximately $7.900 to $8.100 billion.

In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

Twelve Months Ending March 31, 2023

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

7,600 to 7,800

-

 

 

300

-

 

Cost of revenue

2,020 to 2,065

(110

)

 

-

 

(5

)

Operating expense

4,200 to 4,315

(140

)

 

-

 

(595

)

Income before provision for income taxes

1,321 to 1,358

250

 

 

300

 

600

 

Net income

793 to 815

 
Number of shares used in computation:  
Diluted shares

284

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

Second Quarter Fiscal Year 2023 Expectations – Ending September 30, 2022

Financial metrics:

  • Net revenue is expected to be approximately $1.850 to $1.900 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $(125) million.
  • Net income is expected to be approximately $220 to $242 million.
  • Diluted earnings per share is expected to be approximately $0.78 to $0.86.
  • The Company estimates a share count of 281 million for purposes of calculating second quarter fiscal 2023 diluted earnings per share.

Operational metric:

  • Net bookings1 is expected to be approximately $1.725 to $1.775 billion.

In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

Three Months Ending September 30, 2022
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

1,850 to 1,900

-

 

(125

)

-

 

Cost of revenue

467 to 480

(30

)

-

 

(2

)

Operating expense

1,036 to 1,041

(40

)

-

 

(148

)

Income before provision for income taxes

338 to 373

70

 

(125

)

150

 

Net income

220 to 242

Number of shares used in computation:
Diluted shares

281

* 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 August 2, 2022 at 2:00 pm PT (5:00 pm ET) to review its results for the first quarter ended June 30, 2022 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 August 16, 2022 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using pin 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 August 2, 2022” and other information regarding EA's fiscal 2023 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 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 I, Item 1A of Electronic Arts’ latest Annual Report on Form 10-K under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission.

These forward-looking statements are current as of August 2, 2022. 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 Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended June 30, 2022.

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 2022, EA posted GAAP net revenue of approximately $7 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.

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 March 31, 2022.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

 

 

 

 

 

Three Months Ended

June 30,

 

 

2022

 

2021

Net revenue

1,767

 

 

1,551

 

Cost of revenue

314

 

 

315

 

Gross profit

1,453

 

 

1,236

 

Operating expenses:

 

 

 

Research and development

572

 

 

515

 

Marketing and sales

234

 

 

190

 

General and administrative

167

 

 

169

 

Amortization and impairment of intangibles

39

 

 

40

 

Total operating expenses

1,012

 

 

914

 

Operating income

441

 

 

322

 

Interest and other income (expense), net

(5

)

 

(14

)

Income before provision for income taxes

436

 

 

308

 

Provision for income taxes

125

 

 

104

 

Net income

311

 

 

204

 

Earnings per share

 

 

 

Basic

1.11

 

 

0.71

 

Diluted

1.11

 

 

0.71

 

Number of shares used in computation

 

 

 

Basic

279

 

 

286

 

Diluted

281

 

 

289

 

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on May 10, 2022 for the three months ended June 30, 2022 plus a comparison to the actuals for the three months ended June 30, 2021.

 

Three Months Ended June 30,

 

2022 Guidance

(Mid-Point)

 

 

 

2022

Actuals

 

2021

Actuals

 

 

Variance

 

 

Net revenue

 

 

 

 

 

 

 

Net revenue

1,700

 

 

67

 

 

1,767

 

 

1,551

 

GAAP-based financial data

 

 

 

 

 

 

 

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

(475

)

 

7

 

 

(468

)

 

(215

)

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

315

 

 

(1

)

 

314

 

 

315

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(30

)

 

 

 

(30

)

 

(22

)

Stock-based compensation

(2

)

 

 

 

(2

)

 

(1

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,013

 

 

(1

)

 

1,012

 

 

914

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(40

)

 

1

 

 

(39

)

 

(40

)

Stock-based compensation

(123

)

 

 

 

(123

)

 

(124

)

Income before tax

 

 

 

 

 

 

 

Income before tax

356

 

 

80

 

 

436

 

 

308

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

70

 

 

(1

)

 

69

 

 

62

 

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

(475

)

 

7

 

 

(468

)

 

(215

)

Stock-based compensation

125

 

 

 

 

125

 

 

125

 

Tax rate used for management reporting

19

%

 

 

 

19

%

 

18

%

Earnings per share

 

 

 

 

 

 

 

Basic

0.81

 

 

0.30

 

 

1.11

 

 

0.71

 

Diluted

0.81

 

 

0.30

 

 

1.11

 

 

0.71

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

281

 

 

(2

)

 

279

 

 

286

 

Diluted

283

 

 

(2

)

 

281

 

 

289

 

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 Condensed Consolidated Balance Sheets

(in $ millions)

 

 

 

 

 

June 30, 2022

 

March 31, 20222

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

2,082

 

2,732

Short-term investments

334

 

 

330

 

Receivables, net

579

 

 

650

 

Other current assets

522

 

 

439

 

Total current assets

3,517

 

 

4,151

 

Property and equipment, net

545

 

 

550

 

Goodwill

5,382

 

 

5,387

 

Acquisition-related intangibles, net

893

 

 

962

 

Deferred income taxes, net

2,327

 

 

2,243

 

Other assets

528

 

 

507

 

TOTAL ASSETS

13,192

 

 

13,800

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

70

 

 

101

 

Accrued and other current liabilities

1,215

 

 

1,388

 

Deferred net revenue (online-enabled games)

1,548

 

 

2,024

 

Total current liabilities

2,833

 

 

3,513

 

Senior notes, net

1,878

 

 

1,878

 

Income tax obligations

438

 

 

386

 

Deferred income taxes, net

1

 

 

1

 

Other liabilities

401

 

 

397

 

Total liabilities

5,551

 

 

6,175

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

3

 

 

3

 

Retained earnings

7,567

 

 

7,607

 

Accumulated other comprehensive income

71

 

 

15

 

Total stockholders’ equity

7,641

 

 

7,625

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,192

 

 

13,800

 

2Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

 

 

 

 

 

Three Months Ended June 30,

 

2022

 

2021

OPERATING ACTIVITIES

 

 

 

Net income

311

 

 

204

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

Depreciation, amortization, accretion and impairment

114

 

 

105

 

Stock-based compensation

125

 

 

125

 

Change in assets and liabilities

 

 

 

Receivables, net

70

 

 

12

 

Other assets

(15

)

 

(74

)

Accounts payable

(16

)

 

(19

)

Accrued and other liabilities

(105

)

 

(302

)

Deferred income taxes, net

(86

)

 

28

 

Deferred net revenue (online-enabled games)

(476

)

 

(222

)

Net cash used in operating activities

(78

)

 

(143

)

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Capital expenditures

(59

)

 

(44

)

Proceeds from maturities and sales of short-term investments

87

 

 

507

 

Purchase of short-term investments

(93

)

 

(285

)

Acquisitions, net of cash acquired

 

 

(1,989

)

Net cash used in investing activities

(65

)

 

(1,811

)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Proceeds from issuance of common stock

1

 

 

 

Cash dividends paid

(53

)

 

(49

)

Cash paid to taxing authorities for shares withheld from employees

(104

)

 

(105

)

Repurchase and retirement of common stock

(320

)

 

(325

)

Net cash used in financing activities

(476

)

 

(479

)

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

(31

)

 

11

 

Change in cash and cash equivalents

(650

)

 

(2,422

)

Beginning cash and cash equivalents

2,732

 

 

5,260

 

Ending cash and cash equivalents

2,082

 

 

2,838

 

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

YOY %

 

FY22

 

FY22

 

FY22

 

FY22

 

FY23

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,551

 

 

1,826

 

 

1,789

 

 

1,825

 

 

1,767

 

 

14

%

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

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

(215

)

 

25

 

 

788

 

 

(74

)

 

(468

)

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,236

 

 

1,332

 

 

1,158

 

 

1,406

 

 

1,453

 

 

18

%

Gross profit (as a % of net revenue)

80

%

 

73

%

 

65

%

 

77

%

 

82

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

22

 

 

22

 

 

44

 

 

45

 

 

30

 

 

 

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

(215

)

 

25

 

 

788

 

 

(74

)

 

(468

)

 

 

Stock-based compensation

1

 

 

2

 

 

1

 

 

2

 

 

2

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

322

 

 

340

 

 

102

 

 

365

 

 

441

 

 

37

%

Operating income (as a % of net revenue)

21

%

 

19

%

 

6

%

 

20

%

 

25

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

62

 

 

52

 

 

105

 

 

97

 

 

69

 

 

 

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

(215

)

 

25

 

 

788

 

 

(74

)

 

(468

)

 

 

Stock-based compensation

125

 

 

149

 

 

129

 

 

125

 

 

125

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

Net income

204

 

 

294

 

 

66

 

 

225

 

 

311

 

 

52

%

Net income (as a % of net revenue)

13

%

 

16

%

 

4

%

 

12

%

 

18

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

62

 

 

52

 

 

105

 

 

97

 

 

69

 

 

 

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

(215

)

 

25

 

 

788

 

 

(74

)

 

(468

)

 

 

Stock-based compensation

125

 

 

149

 

 

129

 

 

125

 

 

125

 

 

 

Tax rate used for management reporting

18

%

 

18

%

 

18

%

 

18

%

 

19

%

 

 

Diluted earnings per share

0.71

 

 

1.02

 

 

0.23

 

 

0.80

 

 

1.11

 

 

56

%

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

286

 

 

285

 

 

283

 

 

281

 

 

279

 

 

 

Diluted

289

 

 

287

 

 

285

 

 

283

 

 

281

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

YOY %

 

 

FY22

 

FY22

 

FY22

 

FY22

 

FY23

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

 

233

 

 

337

 

 

400

 

 

312

 

 

237

 

 

2

%

Packaged goods

 

89

 

 

280

 

 

216

 

 

126

 

 

104

 

 

17

%

Full game

 

322

 

 

617

 

 

616

 

 

438

 

 

341

 

 

6

%

Live services and other

 

1,229

 

 

1,209

 

 

1,173

 

 

1,387

 

 

1,426

 

 

16

%

Total net revenue

 

1,551

 

 

1,826

 

 

1,789

 

 

1,825

 

 

1,767

 

 

14

%

Full game

 

21

%

 

34

%

 

34

%

 

24

%

 

19

%

 

 

Live services and other

 

79

%

 

66

%

 

66

%

 

76

%

 

81

%

 

 

Total net revenue %

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

 

(5

)

 

35

 

 

179

 

 

(103

)

 

(111

)

 

 

Packaged goods

 

(35

)

 

44

 

 

105

 

 

(68

)

 

(65

)

 

 

Full game

 

(40

)

 

79

 

 

284

 

 

(171

)

 

(176

)

 

 

Live services and other

 

(175

)

 

(54

)

 

504

 

 

97

 

 

(292

)

 

 

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

 

(215

)

 

25

 

 

788

 

 

(74

)

 

(468

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

 

Console

 

972

 

 

1,198

 

 

1,138

 

 

1,092

 

 

1,042

 

 

7

%

PC & Other

 

361

 

 

377

 

 

374

 

 

420

 

 

402

 

 

11

%

Mobile

 

218

 

 

251

 

 

277

 

 

313

 

 

323

 

 

48

%

Total net revenue

 

1,551

 

 

1,826

 

 

1,789

 

 

1,825

 

 

1,767

 

 

14

%

GAAP-based financial data

 

 

 

 

 

 

Console

 

(278

)

 

(29

)

 

608

 

 

(86

)

 

(405

)

 

 

PC & Other

 

9

 

 

26

 

 

137

 

 

3

 

 

(54

)

 

 

Mobile

 

54

 

 

28

 

 

43

 

 

9

 

 

(9

)

 

 

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

 

(215

)

 

25

 

 

788

 

 

(74

)

 

(468

)

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

YOY %

 

FY22

 

FY22

 

FY22

 

FY22

 

FY23

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

(143

)

 

64

 

1,534

 

444

 

(78

)

 

45

%

Operating cash flow - TTM

1,413

 

 

1,416

 

 

1,826

 

 

1,899

 

 

1,964

 

 

39

%

Capital expenditures

44

 

 

43

 

 

48

 

 

53

 

 

59

 

 

34

%

Capital expenditures - TTM

130

 

 

148

 

 

166

 

 

188

 

 

203

 

 

56

%

Repurchase and retirement of common stock

325

 

 

325

 

 

325

 

 

325

 

 

320

 

 

(2

%)

Cash dividends paid

49

 

 

48

 

 

48

 

 

48

 

 

53

 

 

8

%

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

40

 

 

39

 

 

41

 

 

42

 

 

44

 

 

10

%

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

2,838

 

 

1,630

 

 

2,670

 

 

2,732

 

 

2,082

 

 

 

Short-term investments

881

 

 

342

 

 

346

 

 

330

 

 

334

 

 

 

Cash and cash equivalents, and short-term investments

3,719

 

 

1,972

 

 

3,016

 

 

3,062

 

 

2,416

 

 

(35

%)

Receivables, net

557

 

 

1,031

 

 

965

 

 

650

 

 

579

 

 

4

%

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

1

 

 

2

 

 

1

 

 

2

 

 

2

 

 

 

Research and development

85

 

 

101

 

 

86

 

 

84

 

 

81

 

 

 

Marketing and sales

12

 

 

15

 

 

14

 

 

13

 

 

13

 

 

 

General and administrative

27

 

 

31

 

 

28

 

 

26

 

 

29

 

 

 

Total stock-based compensation

125

 

 

149

 

 

129

 

 

125

 

 

125

 

 

 

 

Contacts

For additional information, please contact:

Chris Evenden

Vice President, Investor Relations

650-628-0255

cevenden@ea.com

Cat Channon

Vice President, Global Communications

+ 41 22 316 1258

cchannon@ea.com

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