Electronic Arts Reports Strong Q3 FY24 Results
Electronic Arts Inc. (EA) announced strong Q3 financial results, with net bookings up 1% to $2.366 billion and live services achieving a record $1.712 billion, representing 73% of their business. The EA SPORTS FC franchise delivered 7% net bookings growth, and net revenue for the quarter was $1.945 billion. EA repurchased 2.5 million shares for $325 million and declared a quarterly cash dividend of $0.19 per share. The company expects net revenue of $7.408 - $7.708 billion for fiscal year 2024.
Positive
Net bookings increased by 1% to $2.366 billion, with live services achieving a record $1.712 billion, representing 73% of their business.
The EA SPORTS FC franchise delivered 7% net bookings growth, and net revenue for the quarter was $1.945 billion.
EA repurchased 2.5 million shares for $325 million and declared a quarterly cash dividend of $0.19 per share.
The company expects net revenue of $7.408 - $7.708 billion for fiscal year 2024.
The reported net bookings growth of 7% for EA SPORTS FC and the overall 1% year-over-year increase in net bookings to $2.366 billion are significant indicators of Electronic Arts' financial health. The company's focus on live services, which now represent 73% of their business , aligns with the broader industry's shift towards recurring revenue models. This strategy is evidenced by the 3% year-over-year increase in live services net bookings , which is particularly noteworthy in the context of a global gaming market that is becoming increasingly competitive and saturated.
Additionally, the 13% year-over-year increase in net cash provided by operating activities suggests efficient capital management and operational effectiveness. The share repurchase program, with EA buying back 2.5 million shares for $325 million in the quarter, indicates confidence in the company's intrinsic value and a shareholder-friendly capital allocation policy.
However, investors should consider the potential risks of market saturation and the need for continuous innovation to sustain growth in live services. Furthermore, the constant currency adjustment mentioned indicates potential exposure to foreign exchange volatility, which could impact future earnings.
Electronic Arts' emphasis on their EA SPORTS FCTM franchise and Madden NFL as key drivers of growth highlights the importance of strong IP in the gaming industry. The 7% net bookings growth for EA SPORTS FC , despite the transition from the FIFA brand, showcases the resilience and appeal of the franchise. The company's strategic decision to invest in its largest opportunities for multi-year growth, as noted by CFO Stuart Canfield, reflects an awareness of the long-term trends shaping the industry, such as esports and digital distribution.
The gaming sector is increasingly driven by digital content and services and EA's performance in this area could serve as a bellwether for the industry's potential to capitalize on digital transformation. The company's operational metrics, such as the projected net bookings for the fiscal year and the anticipated net revenue, provide valuable benchmarks for market analysts and investors to gauge the company's trajectory and the overall health of the gaming market.
From an economic perspective, Electronic Arts' financial results reflect broader consumer spending trends in entertainment and discretionary goods. The company's ability to generate record live services net bookings during a period of economic uncertainty speaks to the inelastic demand for gaming content. This could indicate that the gaming industry is somewhat insulated from economic downturns, as consumers prioritize digital entertainment.
The 19% tax rate and financial adjustments for GAAP-based financial data reflect the complexity of tax planning and accounting in multinational corporations. Investors should note that these tax rates and accounting practices can significantly affect reported earnings and may differ from industry norms. It is also important to monitor regulatory developments that could impact the gaming industry, such as digital taxation and intellectual property laws, which could influence EA's future financial performance.
01/30/2024 - 04:05 PM
EA SPORTS FCTM Momentum Continues, Driving Record Live Services Net Bookings
REDWOOD CITY, Calif. --(BUSINESS WIRE)--
Electronic Arts Inc . (NASDAQ: EA) today announced preliminary financial results for its third quarter ended December 31, 2023.
“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
Net bookings2 for Q3 was $2.36 6 billion1% year-over-year (up 2% in constant currency).
Live services and other net bookings for Q3 achieved a record $1.71 2 billion3% year-over-year (up 5% in constant currency). On a trailing twelve-month basis, live services were 73% of our business.
The EA SPORTS FCTM franchise outperformed Q3 expectations, delivering 7% net bookings growth against a prior year that included the World Cup.
EA SPORTSTM Madden NFL delivered net bookings growth of 5% year-over-year.
Selected Financial Highlights and Metrics
Net revenue was $1.94 5 billion
Net cash provided by operating activities for the quarter was $1.26 4 billion13% year-over-year. For the trailing twelve months, net cash provided by operating activities was a record $2.35 2 billion
EA repurchased 2.5 million shares for $325 million $1.30 0 billion
Dividend
EA has declared a quarterly cash dividend of $0.19
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
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
December 31,
Twelve Months Ended
December 31,
(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
Business Outlook as of January 30, 2024
Fourth Quarter Fiscal Year 2024 Expectations – Ending March 31, 2024
Financial outlook metrics:
Net revenue is expected to be approximately $1.62 5 billion$1.92 5 billion
No change in deferred net revenue (online-enabled games) is expected.
Net income is expected to be approximately $54 million $183 million
Diluted earnings per share is expected to be approximately $0.20 $0.68
The Company estimates a share count of 271 million for purposes of calculating diluted earnings per share.
Operational outlook metric:
Net bookings2 is expected to be approximately $1.62 5 billion$1.92 5 billion
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
Fiscal Year 2024 Expectations – Ending March 31, 2024
Financial outlook metrics:
Net revenue is expected to be approximately $7.40 8 billion$7.70 8 billion
Change in deferred net revenue (online-enabled games) is expected to be approximately ($19) million .
Net income is expected to be approximately $1.14 5 billion$1.27 4 billion
Diluted earnings per share is expected to be approximately $4.21 $4.68
Operating cash flow is expected to be approximately $1.95 0 billion$2.10 0 billion
The Company estimates a share count of 272 million for purposes of calculating diluted earnings per share.
Operational outlook metric:
Net bookings2 is expected to be approximately $7.38 9 billion$7.68 9 billion
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.
Conference Call and Supporting Documents
Electronic Arts will host a conference call on January 30, 2024 at 2:00 pm PT (5:00 pm ET) to review its results for the third quarter ended December 31, 2023 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 February 14, 2024 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using conference 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 January 30, 2024” and other information regarding EA's 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 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 Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.
These forward-looking statements are current as of January 30, 2024. 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 December 31, 2023. 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 December 31, 2023.
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 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.
For additional information, please contact:
1 For more information on constant currency, please refer to the earnings slides available on EA’s IR Website.
2 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.
3 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, 2023.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except per share data)
Three Months Ended
December 31,
Nine Months Ended
2023
2022
2023
2022
Net revenue
1,945
1,881
5,783
5,552
Cost of revenue
529
568
1,353
1,344
Gross profit
1,416
1,313
4,430
4,208
Operating expenses:
Research and development
584
556
1,782
1,693
Marketing and sales
276
256
785
723
General and administrative
170
162
506
503
Amortization and impairment of intangibles
21
50
70
132
Restructuring
—
—
3
—
Total operating expenses
1,051
1,024
3,146
3,051
Operating income
365
289
1,284
1,157
Interest and other income (expense), net
17
(7
)
45
(12
)
Income before provision for income taxes
382
282
1,329
1,145
Provision for income taxes
92
78
238
331
Net income
290
204
1,091
814
Earnings per share
Basic
1.08
0.74
4.03
2.93
Diluted
1.07
0.73
4.01
2.92
Number of shares used in computation
Basic
269
276
271
278
Diluted
271
278
272
279
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on November 1, 2023 for the three months ended December 31, 2023 plus a comparison to the actuals for the three months ended December 31, 2022.
Three Months Ended December 31,
2023 Guidance
2023
2022
Variance
Net revenue
Net revenue
1,925
20
1,945
1,881
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
425
(4
)
421
461
Cost of revenue
Cost of revenue
515
14
529
568
GAAP-based financial data
Acquisition-related expenses
(15
)
(1
)
(16
)
(26
)
Stock-based compensation
—
(2
)
(2
)
(2
)
Operating expenses
Operating expenses
1,080
(29
)
1,051
1,024
GAAP-based financial data
Acquisition-related expenses
(25
)
4
(21
)
(50
)
Stock-based compensation
(155
)
6
(149
)
(139
)
Income before tax
Income before tax
337
45
382
282
GAAP-based financial data
Acquisition-related expenses
40
(3
)
37
76
Change in deferred net revenue (online-enabled games)1
425
(4
)
421
461
Stock-based compensation
155
(4
)
151
141
Tax rate used for management reporting
19
%
19
%
19
%
Earnings per share
Basic
0.89
0.19
1.08
0.74
Diluted
0.88
0.19
1.07
0.73
Number of shares used in computation
Basic
270
(1
)
269
276
Diluted
272
(1
)
271
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.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
December 31, 2023
March 31, 20232
ASSETS
Current assets:
Cash and cash equivalents
2,742
2,424
Short-term investments
362
343
Receivables, net
867
684
Other current assets
378
518
Total current assets
4,349
3,969
Property and equipment, net
561
549
Goodwill
5,382
5,380
Acquisition-related intangibles, net
501
618
Deferred income taxes, net
2,375
2,462
Other assets
449
481
TOTAL ASSETS
13,617
13,459
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
62
99
Accrued and other current liabilities
1,299
1,285
Deferred net revenue (online-enabled games)
1,919
1,901
Total current liabilities
3,280
3,285
Senior notes, net
1,881
1,880
Income tax obligations
482
607
Deferred income taxes, net
2
1
Other liabilities
439
393
Total liabilities
6,084
6,166
Stockholders’ equity:
Common stock
3
3
Retained earnings
7,614
7,357
Accumulated other comprehensive loss
(84
)
(67
)
Total stockholders’ equity
7,533
7,293
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
13,617
13,459
2 Derived from audited consolidated financial statements.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
Three Months Ended
Nine Months Ended
2023
2022
2023
2022
OPERATING ACTIVITIES
Net income
290
204
1,091
814
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion and impairment
82
122
255
363
Stock-based compensation
151
141
436
406
Change in assets and liabilities
Receivables, net
183
90
(184
)
(186
)
Other assets
112
(28
)
186
(53
)
Accounts payable
(93
)
(74
)
(36
)
(21
)
Accrued and other liabilities
138
297
(119
)
28
Deferred income taxes, net
(20
)
(47
)
88
(203
)
Deferred net revenue (online-enabled games)
421
418
18
(215
)
Net cash provided by operating activities
1,264
1,123
1,735
933
INVESTING ACTIVITIES
Capital expenditures
(52
)
(48
)
(148
)
(160
)
Proceeds from maturities and sales of short-term investments
148
77
450
243
Purchase of short-term investments
(147
)
(90
)
(460
)
(263
)
Net cash used in investing activities
(51
)
(61
)
(158
)
(180
)
FINANCING ACTIVITIES
Proceeds from issuance of common stock
3
3
43
47
Cash dividends paid
(51
)
(52
)
(154
)
(158
)
Cash paid to taxing authorities for shares withheld from employees
(58
)
(44
)
(178
)
(161
)
Repurchase and retirement of common stock
(325
)
(325
)
(975
)
(970
)
Net cash used in financing activities
(431
)
(418
)
(1,264
)
(1,242
)
Effect of foreign exchange on cash and cash equivalents
14
19
5
(41
)
Change in cash and cash equivalents
796
663
318
(530
)
Beginning cash and cash equivalents
1,946
1,539
2,424
2,732
Ending cash and cash equivalents
2,742
2,202
2,742
2,202
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
Q3
Q4
Q1
Q2
Q3
YOY %
FY23
FY23
FY24
FY24
FY24
Change
Net revenue
Net revenue
1,881
1,874
1,924
1,914
1,945
3
%
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
461
72
(346
)
(94
)
421
Gross profit
Gross profit
1,313
1,426
1,556
1,458
1,416
8
%
Gross profit (as a % of net revenue)
70
%
76
%
81
%
76
%
73
%
GAAP-based financial data
Acquisition-related expenses
26
25
16
15
16
Change in deferred net revenue (online-enabled games)1
461
72
(346
)
(94
)
421
Stock-based compensation
2
2
2
2
2
Operating income
Operating income
289
175
542
377
365
26
%
Operating income (as a % of net revenue)
15
%
9
%
28
%
20
%
19
%
GAAP-based financial data
Acquisition-related expenses
76
51
41
39
37
Change in deferred net revenue (online-enabled games)1
461
72
(346
)
(94
)
421
Restructuring and related charges
—
155
3
—
—
Stock-based compensation
141
142
130
155
151
Net income (loss)
Net income (loss)
204
(12
)
402
399
290
42
%
Net income (loss) (as a % of net revenue)
11
%
(1
%)
21
%
21
%
15
%
GAAP-based financial data
Acquisition-related expenses
76
51
41
39
37
Change in deferred net revenue (online-enabled games)1
461
72
(346
)
(94
)
421
Restructuring and related charges
—
155
3
—
—
Stock-based compensation
141
142
130
155
151
Tax rate used for management reporting
19
%
19
%
19
%
19
%
19
%
Diluted earnings (loss) per share
0.73
(0.04
)
1.47
1.47
1.07
47
%
Number of shares used in computation
Basic
276
274
272
271
269
Diluted
278
274
274
272
271
Anti-dilutive shares excluded for loss position3
—
1
—
—
—
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.
3 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q3
Q4
Q1
Q2
Q3
YOY %
FY23
FY23
FY24
FY24
FY24
Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads
423
274
301
346
431
2
%
Packaged goods
199
98
142
275
187
(6
%)
Full game
622
372
443
621
618
(1
%)
Live services and other
1,259
1,502
1,481
1,293
1,327
5
%
Total net revenue
1,881
1,874
1,924
1,914
1,945
3
%
Full game
33
%
20
%
23
%
32
%
32
%
Live services and other
67
%
80
%
77
%
68
%
68
%
Total net revenue %
100
%
100
%
100
%
100
%
100
%
GAAP-based financial data
Full game downloads
45
(24
)
(21
)
24
32
Packaged goods
20
(24
)
(21
)
46
4
Full game
65
(48
)
(42
)
70
36
Live services and other
396
120
(304
)
(164
)
385
Total change in deferred net revenue (online-enabled games) by composition1
461
72
(346
)
(94
)
421
Net revenue by platform
Console
1,152
1,088
1,167
1,187
1,229
7
%
PC & Other
435
469
451
423
420
(3
%)
Mobile
294
317
306
304
296
1
%
Total net revenue
1,881
1,874
1,924
1,914
1,945
3
%
GAAP-based financial data
Console
423
11
(266
)
(35
)
377
PC & Other
29
47
(77
)
(34
)
33
Mobile
9
14
(3
)
(25
)
11
Total change in deferred net revenue (online-enabled games) by platform1
461
72
(346
)
(94
)
421
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.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q3
Q4
Q1
Q2
Q3
YOY %
FY23
FY23
FY24
FY24
FY24
Change
CASH FLOW DATA
Operating cash flow
1,123
617
359
112
1,264
13
%
Operating cash flow - TTM
1,377
1,550
1,987
2,211
2,352
71
%
Capital expenditures
48
47
45
51
52
8
%
Capital expenditures - TTM
213
207
193
191
195
(8
%)
Repurchase and retirement of common stock
325
325
325
325
325
—
Cash dividends paid
52
52
52
51
51
(2
%)
DEPRECIATION
Depreciation expense
46
58
49
49
48
4
%
BALANCE SHEET DATA
Cash and cash equivalents
2,202
2,424
2,259
1,946
2,742
Short-term investments
351
343
343
359
362
Cash and cash equivalents, and short-term investments
2,553
2,767
2,602
2,305
3,104
22
%
Receivables, net
836
684
517
1,047
867
4
%
STOCK-BASED COMPENSATION
Cost of revenue
2
2
2
2
2
Research and development
95
96
93
113
108
Marketing and sales
15
15
11
13
14
General and administrative
29
29
24
27
27
Total stock-based compensation
141
142
130
155
151
RESTRUCTURING AND RELATED CHARGES
Restructuring
—
111
1
2
—
Office space reductions
—
44
2
(2
)
—
Total restructuring and related charges
—
155
3
—
—
View source version on businesswire.com: https://www.businesswire.com/news/home/20240130758283/en/
Katie Burke
katieburke@ea.com
erheaume@ea.com
Source: Electronic Arts Inc.
What were the net bookings for Q3 2023?
Net bookings for Q3 2023 were $2.366 billion.
What percentage of EA's business were live services for Q3?
Live services represented 73% of EA's business for Q3.
How many shares did EA repurchase during the quarter?
EA repurchased 2.5 million shares during the quarter.
What is the expected net revenue range for fiscal year 2024?
The expected net revenue range for fiscal year 2024 is $7.408 - $7.708 billion.
