Electronic Arts – Electronic Arts Reports Q1 FY22 Financial Results
Results Above Expectations, Raised Outlook for the Full Year
REDWOOD CITY, Calif.–(BUSINESS WIRE)–
Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its first fiscal quarter ended June 30, 2021.
“We’ve had a very strong start to the fiscal year with our incredible teams delivering experiences that continue to bring hundreds of millions of players together,” said Andrew Wilson, CEO of Electronic Arts. “Our new launches, leading games, and live services all had an outstanding quarter. With our expanding EA SPORTS portfolio, more amazing experiences in Apex Legends, the groundbreaking new Battlefield 2042, and our leading live services including mobile, we’re set to deliver more great games and content to players this year.”
“We delivered a big beat this quarter, primarily driven by outperformance from our recent launches coupled with continued strong execution in our live services,” said COO and CFO Blake Jorgensen. “We’re looking forward to the launches of our sports titles this quarter and Battlefield 2042 in time for the holidays. Based on our strong performance this quarter and supported by our ongoing confidence in our live services, we are raising our outlook for the full year. Our strategic position has never been stronger, with growth drivers in place for this year, next year, and beyond.”
Selected Operating Highlights and Metrics
- Net bookings1 for the trailing twelve months was $6.136 billion, up 3% year-over-year.
- More than 140 million players engaged with EA SPORTSTM games over the trailing twelve months.
- Over 31 million players joined FIFA 21 on console and PC since launch.
- FIFA Ultimate TeamTM matches are up 48% year-over-year for the quarter.
- Season 9 for Apex LegendsTM averaged more than 13 million weekly active players and set a new record for peak daily players across all seasons.
Selected Financial Highlights and Metrics
- Net cash (used in)/provided by operating activities was $(143) million for the quarter and $1.413 billion for the trailing twelve months.
- EA repurchased 2.3 million shares for $325 million during the quarter, bringing the total for the last twelve months to 7.2 million shares for $976 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 September 22, 2021 to shareholders of record as of the close of business on September 1, 2021.
|
|
|||||
| Three Months Ended | |||||
| June 30, | |||||
|
2021 |
2020 |
||||
| (in $ millions, except per share amounts) | |||||
| Full game |
322 |
|
359 |
||
| Live services and other |
1,229 |
|
1,100 |
||
| Total net revenue |
1,551 |
|
1,459 |
||
| Net income |
204 |
|
365 |
||
| Diluted earnings per share |
0.71 |
|
1.25 |
||
| Operating cash flow |
(143 |
) |
378 |
||
| Value of shares repurchased |
325 |
|
78 |
||
| Number of shares repurchased |
2.3 |
|
0.7 |
||
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 June 30, 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 |
1,551 |
|
– |
|
(215 |
) |
– |
|
|||
| Cost of revenue |
315 |
|
(22 |
) |
– |
|
(1 |
) |
|||
| Gross profit |
1,236 |
|
22 |
|
(215 |
) |
1 |
|
|||
| Total operating expenses |
914 |
|
(40 |
) |
– |
|
(124 |
) |
|||
| Operating income |
322 |
|
62 |
|
(215 |
) |
125 |
|
|||
| Interest and other income (expense), net |
(14 |
) |
– |
|
– |
|
– |
|
|||
| Income before provision for income taxes |
308 |
|
62 |
|
(215 |
) |
125 |
|
|||
| Number of shares used in computation: | |||||||||||
| Diluted |
289 |
|
|||||||||
|
|
||||
| Twelve Months Ended | ||||
| June 30, | ||||
|
2021 |
|
2020 |
||
| (in $ millions) | ||||
| Full game |
1,576 |
1,984 |
||
| Live services and other |
4,145 |
3,803 |
||
| Total net revenue |
5,721 |
5,787 |
||
| Net income |
676 |
1,983* | ||
| Operating cash flow |
1,413 |
2,017 |
||
| Value of shares repurchased |
976 |
980 |
||
| Number of shares repurchased |
7.2 |
9.8 |
||
| *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 June 30, 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 |
5,721 |
|
– |
|
415 |
– |
|
|||
| Cost of revenue |
1,521 |
|
(26 |
) |
– |
(5 |
) |
|||
| Gross profit |
4,200 |
|
26 |
|
415 |
5 |
|
|||
| Total operating expenses |
3,303 |
|
(65 |
) |
– |
(453 |
) |
|||
| Operating income |
897 |
|
91 |
|
415 |
458 |
|
|||
| Interest and other income (expense), net |
(40 |
) |
– |
|
– |
– |
|
|||
| Income before provision for income taxes |
857 |
|
91 |
|
415 |
458 |
|
|||
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, | |||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
| (in $ millions) | ||||||||||
| Total net revenue |
1,551 |
|
1,459 |
|
5,721 |
5,787 |
||||
| Change in deferred net revenue (online-enabled games) |
(215 |
) |
(69 |
) |
415 |
193 |
||||
| Net bookings |
1,336 |
|
1,390 |
|
6,136 |
5,980 |
||||
Business Outlook as of August 4, 2021
Our financial expectations for the second fiscal quarter ending September 30, 2021 and the fiscal year ending March 31, 2022 include estimates of the impact of our completed acquisitions on consolidated results. The GAAP and operating cash flow estimates could be materially impacted as we integrate these recent acquisitions.
Fiscal Year 2022 Expectations – Ending March 31, 2022
Financial metrics:
-
Net revenue is expected to be approximately $6.850 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $550 million.
- Net income is expected to be approximately $456 million.
- Diluted earnings per share is expected to be approximately $1.58.
- Operating cash flow is expected to be approximately $1.850 billion.
- The Company estimates a share count of 289 million for purposes of calculating fiscal year 2022 diluted earnings per share.
Operational metric:
- Net bookings1 is expected to be approximately $7.400 billion.
In addition, the following outlook for GAAP-based financial data2 and a long-term tax rate of 18% 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, 2022 | ||||||||||
| GAAP-Based Financial Data | ||||||||||
|
GAAP Guidance |
Acquisition- related expenses |
Change in deferred net revenue (online- enabled games) |
Stock-based compensation |
|||||||
| (in $ millions) | ||||||||||
| Total net revenue |
6,850 |
– |
|
550 |
– |
|
||||
| Cost of revenue |
1,921 |
(140 |
) |
– |
(5 |
) |
||||
| Operating expense |
4,015 |
(160 |
) |
– |
(545 |
) |
||||
| Income before provision for income taxes |
856 |
300 |
|
550 |
550 |
|
||||
| Net income |
456 |
|||||||||
| Number of shares used in computation: | ||||||||||
| Diluted shares |
289 |
|||||||||
Second Quarter Fiscal Year 2022 Expectations – Ending September 30, 2021
Financial metrics:
-
Net revenue is expected to be approximately $1.775 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $(50) million.
- Net income is expected to be approximately $105 million.
- Diluted earnings per share is expected to be approximately $0.36.
- The Company estimates a share count of 288 million for purposes of calculating second quarter fiscal 2022 diluted earnings per share.
Operational metric:
- Net bookings1 is expected to be approximately $1.725 billion.
In addition, the following outlook for GAAP-based financial data2 and a long-term tax rate of 18% 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, 2021 | ||||||||||||
| GAAP-Based Financial Data | ||||||||||||
|
GAAP Guidance |
Acquisition- related expenses |
Change in deferred net revenue (online- enabled games) |
Stock-based compensation |
|||||||||
| (in $ millions) | ||||||||||||
| Total net revenue |
1,775 |
– |
|
(50 |
) |
– |
|
|||||
| Cost of revenue |
518 |
(35 |
) |
– |
|
– |
|
|||||
| Operating expense |
1,030 |
(40 |
) |
– |
|
(150 |
) |
|||||
| Income before provision for income taxes |
212 |
75 |
|
(50 |
) |
150 |
|
|||||
| Net income |
105 |
|||||||||||
| Number of shares used in computation: | ||||||||||||
| Diluted shares |
288 |
|||||||||||
Conference Call and Supporting Documents
Electronic Arts will host a conference call on August 4, 2021 at 2:00 pm PT (5:00 pm ET) to review its results for the fiscal quarter ended June 30, 2021 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 (866) 324-3683 (domestic) or (509) 844-0959 (international), using the conference code 1183378 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 18, 2021 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 1183378. 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 4, 2021,” and other information regarding EA’s fiscal 2022 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: the impact of the COVID-19 pandemic, 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; general economic 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 4, 2021. 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, 2021. 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, 2021.
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 2021, EA posted GAAP net revenue of $5.6 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, Ultimate Team, 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.
|
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, 2021. |
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
||||||
|
Unaudited Condensed Consolidated Statements of Operations |
||||||
|
(in $ millions, except per share data) |
||||||
|
|
|
|
||||
|
|
Three Months Ended |
|||||
|
|
June 30, |
|||||
|
|
2021 |
2020 |
||||
|
Net revenue |
1,551 |
|
1,459 |
|
||
|
Cost of revenue |
315 |
|
288 |
|
||
|
Gross profit |
1,236 |
|
1,171 |
|
||
|
Operating expenses: |
|
|
||||
|
Research and development |
515 |
|
438 |
|
||
|
Marketing and sales |
190 |
|
121 |
|
||
|
General and administrative |
169 |
|
136 |
|
||
|
Amortization of intangibles |
40 |
|
5 |
|
||
|
Total operating expenses |
914 |
|
700 |
|
||
|
Operating income |
322 |
|
471 |
|
||
|
Interest and other income (expense), net |
(14 |
) |
(3 |
) |
||
|
Income before provision for income taxes |
308 |
|
468 |
|
||
|
Provision for income taxes |
104 |
|
103 |
|
||
|
Net income |
204 |
|
365 |
|
||
|
Earnings per share |
|
|
||||
|
Basic |
0.71 |
1.27 |
||||
|
Diluted |
0.71 |
1.25 |
||||
|
Number of shares used in computation |
|
|
||||
|
Basic |
286 |
|
288 |
|
||
|
Diluted |
289 |
|
292 |
|
||
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on May 11, 2021 for the three months ended June 30, 2021 plus a comparison to the actuals for the three months ended June 30, 2020.
|
|
Three Months Ended June 30, |
||||||||||||||
|
|
2021 |
|
2021 |
2020 |
|||||||||||
|
|
Guidance |
Variance |
Actuals |
Actuals |
|||||||||||
|
Net revenue |
|
|
|
|
|||||||||||
|
Net revenue |
1,475 |
|
|
76 |
|
1,551 |
|
|
1,459 |
|
|
||||
|
GAAP-based financial data |
|
|
|
|
|||||||||||
|
Change in deferred net revenue (online-enabled games)1 |
(225 |
) |
|
10 |
|
(215 |
) |
|
(69 |
) |
|
||||
|
Cost of revenue |
|
|
|
|
|||||||||||
|
Cost of revenue |
287 |
|
|
28 |
|
315 |
|
|
288 |
|
|
||||
|
GAAP-based financial data |
|
|
|
|
|||||||||||
|
Acquisition-related expenses |
(5 |
) |
|
(17 |
) |
(22 |
) |
|
— |
|
|
||||
|
Stock-based compensation |
— |
|
|
(1 |
) |
(1 |
) |
|
(1 |
) |
|
||||
|
Operating expenses |
|
|
|
|
|||||||||||
|
Operating expenses |
955 |
|
|
(41 |
) |
914 |
|
|
700 |
|
|
||||
|
GAAP-based financial data |
|
|
|
|
|||||||||||
|
Acquisition-related expenses |
(70 |
) |
|
30 |
|
(40 |
) |
|
(5 |
) |
|
||||
|
Stock-based compensation |
(125 |
) |
|
1 |
|
(124 |
) |
|
(101 |
) |
|
||||
|
Income before tax |
|
|
|
|
|||||||||||
|
Income before tax |
220 |
|
|
88 |
|
308 |
|
|
468 |
|
|
||||
|
GAAP-based financial data |
|
|
|
|
|||||||||||
|
Acquisition-related expenses |
75 |
|
|
(13 |
) |
62 |
|
|
5 |
|
|
||||
|
Change in deferred net revenue (online-enabled games)1 |
(225 |
) |
|
10 |
|
(215 |
) |
|
(69 |
) |
|
||||
|
Stock-based compensation |
125 |
|
|
— |
|
125 |
|
|
102 |
|
|
||||
|
Tax rate used for management reporting |
18 |
|
% |
|
18 |
|
% |
18 |
|
% |
|||||
|
Earnings per share |
|
|
|
|
|||||||||||
|
Basic |
0.24 |
|
|
0.47 |
|
0.71 |
|
|
1.27 |
|
|
||||
|
Diluted |
0.24 |
|
|
0.47 |
|
0.71 |
|
|
1.25 |
|
|
||||
|
Number of shares |
|
|
|
|
|||||||||||
|
Basic |
287 |
|
|
(1 |
) |
286 |
|
|
288 |
|
|
||||
|
Diluted |
291 |
|
|
(2 |
) |
289 |
|
|
292 |
|
|
||||
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, 2021 |
March 31, 20212 |
||||
|
ASSETS |
|
|
||||
|
Current assets: |
|
|
||||
|
Cash and cash equivalents |
2,838 |
|
5,260 |
|
||
|
Short-term investments |
881 |
|
1,106 |
|
||
|
Receivables, net |
557 |
|
521 |
|
||
|
Other current assets |
401 |
|
326 |
|
||
|
Total current assets |
4,677 |
|
7,213 |
|
||
|
Property and equipment, net |
510 |
|
491 |
|
||
|
Goodwill |
4,256 |
|
2,868 |
|
||
|
Acquisition-related intangibles, net |
909 |
|
309 |
|
||
|
Deferred income taxes, net |
1,960 |
|
2,045 |
|
||
|
Other assets |
422 |
|
362 |
|
||
|
TOTAL ASSETS |
12,734 |
|
13,288 |
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
||||
|
Current liabilities: |
|
|
||||
|
Accounts payable |
73 |
|
96 |
|
||
|
Accrued and other current liabilities |
1,093 |
|
1,341 |
|
||
|
Deferred net revenue (online-enabled games) |
1,305 |
|
1,527 |
|
||
|
Total current liabilities |
2,471 |
|
2,964 |
|
||
|
Senior notes, net |
1,877 |
|
1,876 |
|
||
|
Income tax obligations |
321 |
|
315 |
|
||
|
Deferred income taxes, net |
24 |
|
43 |
|
||
|
Other liabilities |
313 |
|
250 |
|
||
|
Total liabilities |
5,006 |
|
5,448 |
|
||
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
||||
|
Common stock |
3 |
|
3 |
|
||
|
Retained earnings |
7,760 |
|
7,887 |
|
||
|
Accumulated other comprehensive loss |
(35 |
) |
(50 |
) |
||
|
Total stockholders’ equity |
7,728 |
|
7,840 |
|
||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
12,734 |
|
13,288 |
|
||
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, |
|||||
|
|
2021 |
2020 |
||||
|
OPERATING ACTIVITIES |
|
|
||||
|
Net income |
204 |
|
365 |
|
||
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
||||
|
Depreciation, amortization and accretion |
105 |
|
37 |
|
||
|
Stock-based compensation |
125 |
|
102 |
|
||
|
Change in assets and liabilities |
|
|
||||
|
Receivables, net |
12 |
|
(44 |
) |
||
|
Other assets |
(74 |
) |
44 |
|
||
|
Accounts payable |
(19 |
) |
(3 |
) |
||
|
Accrued and other liabilities |
(302 |
) |
(66 |
) |
||
|
Deferred income taxes, net |
28 |
|
10 |
|
||
|
Deferred net revenue (online-enabled games) |
(222 |
) |
(67 |
) |
||
|
Net cash provided by (used in) operating activities |
(143 |
) |
378 |
|
||
|
INVESTING ACTIVITIES |
|
|
||||
|
Capital expenditures |
(44 |
) |
(38 |
) |
||
|
Proceeds from maturities and sales of short-term investments |
507 |
|
694 |
|
||
|
Purchase of short-term investments |
(285 |
) |
(664 |
) |
||
|
Acquisitions, net of cash acquired |
(1,989 |
) |
— |
|
||
|
Net cash used in investing activities |
(1,811 |
) |
(8 |
) |
||
|
FINANCING ACTIVITIES |
|
|
||||
|
Proceeds from issuance of common stock |
— |
|
3 |
|
||
|
Cash dividends paid |
(49 |
) |
— |
|
||
|
Cash paid to taxing authorities for shares withheld from employees |
(105 |
) |
(69 |
) |
||
|
Repurchase and retirement of common stock |
(325 |
) |
(78 |
) |
||
|
Net cash used in financing activities |
(479 |
) |
(144 |
) |
||
|
Effect of foreign exchange on cash and cash equivalents |
11 |
|
19 |
|
||
|
Change in cash and cash equivalents |
(2,422 |
) |
245 |
|
||
|
Beginning cash and cash equivalents |
5,260 |
|
3,768 |
|
||
|
Ending cash and cash equivalents |
2,838 |
|
4,013 |
|
||
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES |
|||||||||||||||||||||||
|
Unaudited Supplemental Financial Information and Business Metrics |
|||||||||||||||||||||||
|
(in $ millions, except per share data) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
YOY % |
||||||||||||
|
|
FY21 |
|
FY21 |
|
FY21 |
|
FY21 |
|
FY22 |
|
Change |
||||||||||||
|
Net revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net revenue |
1,459 |
|
|
|
1,151 |
|
|
|
1,673 |
|
|
1,346 |
|
|
1,551 |
|
|
|
|
|
|||
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Change in deferred net revenue (online-enabled games)1 |
(69 |
) |
|
|
(241 |
) |
|
|
727 |
|
|
144 |
|
|
(215 |
) |
|
|
|
||||
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross profit |
1,171 |
|
|
|
865 |
|
|
|
1,072 |
|
|
1,027 |
|
|
1,236 |
|
|
|
|
|
|||
|
Gross profit (as a % of net revenue) |
80 |
|
% |
|
75 |
|
% |
|
64 |
% |
|
76 |
% |
|
80 |
|
% |
|
|
||||
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Acquisition-related expenses |
— |
|
|
|
— |
|
|
|
— |
|
|
4 |
|
|
22 |
|
|
|
|
||||
|
Change in deferred net revenue (online-enabled games)1 |
(69 |
) |
|
|
(241 |
) |
|
|
727 |
|
|
144 |
|
|
(215 |
) |
|
|
|
||||
|
Stock-based compensation |
1 |
|
|
|
2 |
|
|
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
||||
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating income |
471 |
|
|
|
149 |
|
|
|
251 |
|
|
175 |
|
|
322 |
|
|
|
|
|
|||
|
Operating income (as a % of net revenue) |
32 |
|
% |
|
13 |
|
% |
|
15 |
% |
|
13 |
% |
|
21 |
|
% |
|
|
||||
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Acquisition-related expenses |
5 |
|
|
|
6 |
|
|
|
5 |
|
|
18 |
|
|
62 |
|
|
|
|
||||
|
Change in deferred net revenue (online-enabled games)1 |
(69 |
) |
|
|
(241 |
) |
|
|
727 |
|
|
144 |
|
|
(215 |
) |
|
|
|
||||
|
Stock-based compensation |
102 |
|
|
|
113 |
|
|
|
111 |
|
|
109 |
|
|
125 |
|
|
|
|
||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net income |
365 |
|
|
|
185 |
|
|
|
211 |
|
|
76 |
|
|
204 |
|
|
|
|
|
|||
|
Net income (as a % of net revenue) |
25 |
|
% |
|
16 |
|
% |
|
13 |
% |
|
6 |
% |
|
13 |
|
% |
|
|
||||
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Acquisition-related expenses |
5 |
|
|
|
6 |
|
|
|
5 |
|
|
18 |
|
|
62 |
|
|
|
|
||||
|
Change in deferred net revenue (online-enabled games)1 |
(69 |
) |
|
|
(241 |
) |
|
|
727 |
|
|
144 |
|
|
(215 |
) |
|
|
|
||||
|
Stock-based compensation |
102 |
|
|
|
113 |
|
|
|
111 |
|
|
109 |
|
|
125 |
|
|
|
|
||||
|
Tax rate used for management reporting |
18 |
|
% |
|
18 |
|
% |
|
18 |
% |
|
18 |
% |
|
18 |
|
% |
|
|
||||
|
Diluted earnings per share |
1.25 |
|
|
|
0.63 |
|
|
|
0.72 |
|
|
0.26 |
|
|
0.71 |
|
|
|
|
|
|||
|
Number of diluted shares used in computation |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Basic |
288 |
|
|
|
289 |
|
|
|
290 |
|
|
288 |
|
|
286 |
|
|
|
|
||||
|
Diluted |
292 |
|
|
|
293 |
|
|
|
292 |
|
|
290 |
|
|
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 Supplemental Financial Information and Business Metrics |
|||||||||||||||||||||||
|
(in $ millions) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
YOY % |
|||||||||||
|
|
|
FY21 |
|
FY21 |
|
FY21 |
|
FY21 |
|
FY22 |
|
Change |
|||||||||||
|
QUARTERLY NET REVENUE PRESENTATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net revenue by composition |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Full game downloads |
|
223 |
|
|
|
163 |
|
|
|
347 |
|
|
185 |
|
|
|
233 |
|
|
|
4 |
% |
|
|
Packaged goods |
|
136 |
|
|
|
119 |
|
|
|
375 |
|
|
65 |
|
|
|
89 |
|
|
|
(35 |
%) |
|
|
Full game |
|
359 |
|
|
|
282 |
|
|
|
722 |
|
|
250 |
|
|
|
322 |
|
|
|
(10 |
%) |
|
|
Live services and other |
|
1,100 |
|
|
|
869 |
|
|
|
951 |
|
|
1,096 |
|
|
|
1,229 |
|
|
|
12 |
% |
|
|
Total net revenue |
|
1,459 |
|
|
|
1,151 |
|
|
|
1,673 |
|
|
1,346 |
|
|
|
1,551 |
|
|
|
|
|
|
|
Full game |
|
25 |
|
% |
|
25 |
|
% |
|
43 |
% |
|
19 |
|
% |
|
21 |
|
% |
|
|
||
|
Live services and other |
|
75 |
|
% |
|
75 |
|
% |
|
57 |
% |
|
81 |
|
% |
|
79 |
|
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Full game downloads |
|
(5 |
) |
|
|
(2 |
) |
|
|
53 |
|
|
(19 |
) |
|
|
(5 |
) |
|
|
|
||
|
Packaged goods |
|
(67 |
) |
|
|
(14 |
) |
|
|
83 |
|
|
(44 |
) |
|
|
(35 |
) |
|
|
|
||
|
Full game |
|
(72 |
) |
|
|
(16 |
) |
|
|
136 |
|
|
(63 |
) |
|
|
(40 |
) |
|
|
|
||
|
Live services and other |
|
3 |
|
|
|
(225 |
) |
|
|
591 |
|
|
207 |
|
|
|
(175 |
) |
|
|
|
||
|
Total change in deferred net revenue (online-enabled games) by composition1 |
|
(69 |
) |
|
|
(241 |
) |
|
|
727 |
|
|
144 |
|
|
|
(215 |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net revenue by platform |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Console |
|
932 |
|
|
|
714 |
|
|
|
1,191 |
|
|
879 |
|
|
|
972 |
|
|
|
4 |
% |
|
|
PC & Other |
|
325 |
|
|
|
249 |
|
|
|
326 |
|
|
295 |
|
|
|
361 |
|
|
|
11 |
% |
|
|
Mobile |
|
202 |
|
|
|
188 |
|
|
|
156 |
|
|
172 |
|
|
|
218 |
|
|
|
8 |
% |
|
|
Total net revenue |
|
1,459 |
|
|
|
1,151 |
|
|
|
1,673 |
|
|
1,346 |
|
|
|
1,551 |
|
|
|
|
|
|
|
GAAP-based financial data |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Console |
|
(108 |
) |
|
|
(201 |
) |
|
|
619 |
|
|
71 |
|
|
|
(278 |
) |
|
|
|
||
|
PC & Other |
|
15 |
|
|
|
(24 |
) |
|
|
73 |
|
|
51 |
|
|
|
9 |
|
|
|
|
||
|
Mobile |
|
24 |
|
|
|
(16 |
) |
|
|
35 |
|
|
22 |
|
|
|
54 |
|
|
|
|
||
|
Total change in deferred net revenue (online-enabled games) by platform1 |
|
(69 |
) |
|
|
(241 |
) |
|
|
727 |
|
|
144 |
|
|
|
(215 |
) |
|
|
|
||
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 % |
||||||||
|
|
FY21 |
FY21 |
FY21 |
FY21 |
FY22 |
Change |
||||||||
|
CASH FLOW DATA |
|
|
|
|
|
|
||||||||
|
Operating cash flow |
378 |
61 |
1,124 |
371 |
(143 |
) |
(138 |
%) |
||||||
|
Operating cash flow – TTM |
2,017 |
2,041 |
2,061 |
1,934 |
1,413 |
|
(30 |
%) |
||||||
|
Capital expenditures |
38 |
25 |
30 |
31 |
44 |
|
16 |
% |
||||||
|
Capital expenditures – TTM |
133 |
131 |
133 |
124 |
130 |
|
(2 |
%) |
||||||
|
Repurchase and retirement of common stock |
78 |
— |
326 |
325 |
325 |
|
317 |
% |
||||||
|
Cash dividends paid |
— |
— |
49 |
49 |
49 |
|
100 |
% |
||||||
|
DEPRECIATION |
|
|
|
|
|
|
||||||||
|
Depreciation expense |
31 |
32 |
37 |
38 |
40 |
|
29 |
% |
||||||
|
BALANCE SHEET DATA |
|
|
|
|
|
|
||||||||
|
Cash and cash equivalents |
4,013 |
4,059 |
4,772 |
5,260 |
2,838 |
|
|
|||||||
|
Short-term investments |
1,947 |
1,972 |
1,938 |
1,106 |
881 |
|
|
|||||||
|
Cash and cash equivalents, and short-term investments |
5,960 |
6,031 |
6,710 |
6,366 |
3,719 |
|
(38 |
%) |
||||||
|
Receivables, net |
507 |
423 |
778 |
521 |
557 |
|
10 |
% |
||||||
|
STOCK-BASED COMPENSATION |
|
|
|
|
|
|
||||||||
|
Cost of revenue |
1 |
2 |
1 |
1 |
1 |
|
|
|||||||
|
Research and development |
66 |
74 |
74 |
71 |
85 |
|
|
|||||||
|
Marketing and sales |
11 |
12 |
11 |
12 |
12 |
|
|
|||||||
|
General and administrative |
24 |
25 |
25 |
25 |
27 |
|
|
|||||||
|
Total stock-based compensation |
102 |
113 |
111 |
109 |
125 |
|
|
|||||||
Category: Company News
Source: Electronic Arts Inc.