Financial Data and Key Metrics Changes - For FY 2025, the company reported net bookings of $7.36 billion, a decrease of 1% year-over-year [25] - Full game net bookings were $2.02 billion, up 1%, driven by strong performance in EA Sports College Football '25 and new releases [26] - Live services net bookings were $5.34 billion, down 2%, impacted by a decline in Apex Legends and softness in FC Ultimate Team [26] - The company achieved a gross margin of 79.3%, an improvement of nearly 200 basis points, due to lower licensing fees [26] - Operating expenses increased by 2% to $4.4 billion, with earnings per share at $4.25 [27] Business Line Data and Key Metrics Changes - EA SPORTS FC saw a significant rebound in engagement and monetization following a major gameplay update in January, leading to double-digit growth in player engagement [6][9] - The American football ecosystem, including Madden NFL and college football, generated over $1 billion in net bookings, up over 70% year-over-year [10][25] - The Sims franchise delivered over 30% net bookings growth in Q4, driven by the 20th birthday celebrations and new content releases [30] - The successful launch of the new IP, Split Fiction, resulted in nearly 4 million units sold, exceeding expectations [14] Market Data and Key Metrics Changes - FC Mobile engagement and acquisition were up over 20% year-over-year, with significant growth in key mobile markets [10] - The company noted that its four largest mobile markets differ from its largest HD markets, indicating a successful expansion strategy [10] - The American football ecosystem's engagement remained strong post-season, with increased monetization opportunities during the offseason [11] Company Strategy and Development Direction - The company plans to broaden its reach into additional markets with new strategic partners and enhance app experiences [12] - Upcoming launches include iconic franchises like Skate and Battlefield, with a focus on community engagement and player feedback [16][17] - The company aims to transform The Sims into a unified ecosystem across games, marketplaces, and social spaces [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential economic uncertainties, emphasizing the resilience of the gaming industry [41][80] - The company anticipates continued growth driven by live services, new game launches, and the upcoming 2026 World Cup [19][36] - Management highlighted the importance of community engagement and feedback in shaping future game developments [64] Other Important Information - The company returned over $2.7 billion to stockholders through stock repurchases and dividends, representing 145% of free cash flow [27] - The company expects net bookings for FY 2026 to be between $7.6 billion and $8 billion, reflecting a growth of 3% to 9% year-over-year [32] Q&A Session Questions and Answers Question: What were the main issues during the temporary slowdown in FC and how were they fixed? - Management noted that the slowdown was not unusual for large franchises and was attributed to a lack of migration from the previous title and feedback from the core competitive cohort regarding gameplay tuning [46][51][56] Question: How does the company view the growth investments behind Battlefield? - Management indicated that the primary growth investment for Battlefield is in go-to-market costs, with continued investment post-launch expected [66] Question: How does the company expect American football to perform in the coming year? - Management expressed optimism about the growth of American football, citing the increasing popularity of the sport and the potential for deeper connections between college and NFL products [70][72] Question: What areas of the business are most sensitive to macroeconomic changes? - Management highlighted the resilience of the gaming industry during economic downturns, emphasizing the fundamental need for entertainment and the value provided by gaming [79][80] Question: How does the company view pricing power for its IP? - Management stated that the business model has evolved, allowing for a range of pricing strategies, and emphasized the importance of delivering quality and value to players [81][84]

Electronic Arts Inc. Q4 and FY25 Results May 6, 2025 While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2025. Refer to Appendix for additional disclosures. Table of Contents 2 01 Safe Harbor S ...

Core Insights - Electronic Arts (EA) exceeded fiscal fourth-quarter bookings estimates, leading to a 7% increase in shares [1] - The company anticipates fiscal 2026 bookings between $7.60 billion and $8 billion, surpassing StreetAccount's estimate of $7.62 billion [1] - Net bookings for fiscal 2025 reached $7.355 billion [1] Financial Performance - First-quarter bookings guidance is projected between $1.175 billion and $1.275 billion, falling short of analyst expectations of $1.275 billion [2] - Earnings per share reported at 98 cents, not comparable to analyst estimates [3] - Revenue (bookings) for the quarter was $1.80 billion, exceeding the expected $1.56 billion [3] Contributions to Growth - CEO Andrew Wilson highlighted that the company's FC and College Football games significantly contributed to a strong year of bookings [2]

Financial Performance - Net bookings for FY25 totaled $7.355 billion, with EA SPORTS portfolio achieving record net bookings[6] - EA's American Football franchise exceeded $1 billion in net bookings for FY25[6] - Net revenue for FY25 was $7.463 billion, a slight decrease from $7.562 billion in FY24[9] - Net income for FY25 was $1.121 billion, down from $1.273 billion in FY24[9] - Diluted earnings per share for FY25 were $4.25, compared to $4.68 in FY24[9] - Net revenue for the twelve months ended March 31, 2025, was $7,463 million, a decrease of 1% compared to $7,562 million in 2024[34] - For Q1 FY25, net revenue increased by 7% to $1,895 million compared to $1,779 million in Q1 FY24[37] Future Projections - For Q1 FY26, net bookings are expected to be approximately $1.175 billion to $1.275 billion[7] - Fiscal year 2026 net bookings are projected to be between $7.600 billion and $8.000 billion[7] - The company expects FY26 net revenue guidance to range from $7,100 million to $7,500 million[40] - Operating margin guidance for FY26 is projected to be between 16.3% and 18.9%[40] Cash Flow and Shareholder Returns - Operating cash flow for FY25 was $2.079 billion, down from $2.315 billion in FY24[9] - EA repurchased 9.8 million shares for $1.375 billion during Q4 FY25, totaling 17.6 million shares for $2.500 billion in FY25[6] - EA declared a quarterly cash dividend of $0.19 per share, payable on June 18, 2025[5] - Free cash flow for Q4 FY25 was $495 million, a decrease of 6% year-over-year[31] Quarterly Performance - Net revenue for the three months ended March 31, 2025, was $1,895 million, a 7% increase compared to $1,779 million in the same period of 2024[22] - Gross profit for the same period was $1,527 million, representing 81% of net revenue, up from 76% in the previous year[28] - Operating income increased to $395 million, which is 21% of net revenue, compared to 13% in Q4 FY24[28] - Net income for the three months ended March 31, 2025, was $254 million, a 40% increase from $182 million in the same period of 2024[28] - Diluted earnings per share rose to $0.98, a 46% increase from $0.67 in the prior year[28] Balance Sheet Highlights - Total current assets decreased to $3,276 million from $4,247 million year-over-year[24] - Total liabilities increased slightly to $5,982 million from $5,907 million in the previous year[24] - Cash and cash equivalents at the end of the period were $2,136 million, down from $2,900 million a year earlier[24] - The company reported a deferred net revenue of $1,700 million for online-enabled games, down from $1,814 million in the previous year[24] Operating Metrics - GAAP operating income for the same period was $1,520 million, slightly up from $1,518 million in 2024[34] - Non-GAAP operating income decreased by 2% to $2,331 million from $2,384 million year-over-year[34] - GAAP operating margin improved to 20.8% in Q1 FY25 from 13.2% in Q1 FY24[37] - Total stock-based compensation for Q4 FY25 was $162 million, up from $148 million in Q4 FY24[34] Taxation - The tax rate used for management reporting remained consistent at 19% for both years[28]

Group 1 - Major League Soccer (MLS) is partnering with Electronic Arts (EA) to stream four MLS matches this season on EA Sports FC Mobile [1][3] - The first match will be available for free streaming on May 10, featuring a rematch between the Los Angeles Galaxy and New York Red Bulls, following the Galaxy's victory in the 2024 final [2] - All matches will be simulcast with Apple TV's MLS Season Pass, which holds exclusive media rights, and EA FC Mobile players will receive a free one-month trial of the Season Pass along with in-game currency [3] Group 2 - This partnership marks EA's first venture into live streaming sports, capitalizing on the growing audience for live sports across media platforms [4] - The collaboration comes after a challenging quarter for EA, attributed to the underperformance of its games, particularly the EA Sports FC franchise [4] - EA is set to report its next quarterly earnings on Tuesday, which may provide further insights into the impact of this partnership on its financial performance [4]

Electronic Arts (EA) is set to report its fourth-quarter fiscal 2025 results on May 6.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.For fourth-quarter fiscal 2025, EA expects GAAP revenues between $1.682 billion and $1.832 billion and earnings per share in the range of 65 cents to $1.  The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.56 billion, indicating a decline of 6.18% from the figure reported in the year-ago quarter.The consensus mark for fiscal ...

The upcoming report from Electronic Arts (EA) is expected to reveal quarterly earnings of $1.11 per share, indicating a decline of 19% compared to the year-ago period. Analysts forecast revenues of $1.56 billion, representing a decrease of 6.2% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 148% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company ...

Group 1 - EA has laid off approximately 300 employees, including around 100 from Respawn, the studio behind popular titles like APEX Legends and Star Wars Jedi [1][3] - Respawn has decided to abandon two early incubation projects and make adjustments to the APEX Legends and Star Wars Jedi teams, with speculation about the canceled projects [3] - The layoffs represent about one-third of Respawn's total workforce, affecting development, publishing, and QA teams for APEX Legends and Star Wars Jedi [3][4] Group 2 - EA's Q3 FY2025 financial report showed net revenue of $1.883 billion, down from $1.945 billion in the same period last year, with executives expressing dissatisfaction with APEX Legends and planning a major update [4] - EA has faced ongoing project cancellations, restructuring, and layoffs since 2023, including significant layoffs at BioWare due to the failure of Dragon Age 4 and a focus shift to Mass Effect 5 [4] - Industry reactions to the layoffs have been critical, highlighting concerns about EA's management of its studios and the impact on game development quality [6]

The market expects Electronic Arts (EA) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 6, 2025, might help the stock move higher if these key numbers are bett ...

Group 1 - Electronic Arts (NASDAQ: EA) has 40 years of experience in the gaming industry and remains relevant in a constantly evolving market [1] - The company is based in California and is known for managing some of the most recognizable and commercially successful gaming franchises [1] Group 2 - The article emphasizes the importance of well-researched commentary and insights into various industries and asset classes, including high-growth technology equities and undervalued blue-chip stocks [1]