Core Viewpoint - Electronic Arts (EA) reported strong second-quarter fiscal 2025 earnings, with earnings per share of $2.15, a 47.3% increase year over year, and revenues of $2.02 billion, up 5.8% year over year, driven by recovery in Live services and full game revenues [1][2]. Financial Performance - Net bookings for the fiscal second quarter reached $2.07 billion, reflecting a 14.2% year-over-year increase, largely due to the positive reception of EA SPORTS College Football 25 [2]. - Full-game net bookings amounted to $832 million, a 20% increase year over year, supported by the expansion of the American Football ecosystem [3]. - Live services net bookings were $1.25 billion, up 10% year over year, with American Football Ultimate Team modes contributing significantly [3]. Revenue Breakdown - Full-game revenues, constituting 35.4% of total revenues, increased 15.3% year over year to $716 million, with full-game download revenues rising 37% to $475 million, while revenues from packaged goods fell 12% to $241 million [4]. - Live services and other revenues, making up 64.6% of total revenues, saw a modest increase of 1.2% year over year to $1.3 billion [4]. - Revenue from consoles grew 16% year over year to $1.37 billion, while revenues from PC & Other and mobile platforms declined by 14% and 5% respectively [5]. Operating Metrics - GAAP gross profit increased 7.6% year over year to $156 billion, with gross margin expanding by 130 basis points to 77.5% [6]. - Operating expenses rose 9.6% year over year to $1.18 billion, representing 58.5% of revenues, an increase of 200 basis points [6]. - Operating income on a GAAP basis increased 1.9% year over year to $384 million, with the operating margin contracting by 70 basis points to 19% [7]. Balance Sheet and Cash Flow - As of June 30, 2024, EA had $2.5 billion in cash and short-term investments, down from $2.76 billion a year earlier [8]. - Net cash provided by operating activities was $234 million for the quarter and $2.198 billion for the trailing 12 months [8]. - The company repurchased 2.6 million shares for $375 million during the quarter, totaling 10.2 million shares for $1.4 billion over the trailing 12 months [8]. Dividend and Guidance - EA declared a quarterly cash dividend of 19 cents per share, payable on December 18, 2024, to stockholders of record as of November 27, 2024 [9]. - For the third quarter of fiscal 2025, EA expects GAAP revenues between $1.875 billion and $2.025 billion, with earnings per share in the range of 85 cents to $1.02, and net bookings projected between $2.4 billion and $2.55 billion [11]. - For fiscal 2025, EA anticipates revenues between $7.4 billion and $7.7 billion, earnings per share between $3.34 and $4, and net bookings between $7.5 billion and $7.8 billion [11].

Core Insights - Electronic Arts (EA) reported revenue of $2.08 billion for the quarter ended September 2024, reflecting a year-over-year increase of 14.2% [1] - The earnings per share (EPS) for the quarter was $2.15, up from $1.46 in the same quarter last year, indicating a strong performance [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.03 billion by 2.40%, while the EPS also surpassed the consensus estimate of $2.03 by 5.91% [1] Financial Performance Metrics - Net Bookings for EA were $2.08 billion, slightly above the average estimate of $2.03 billion from seven analysts [3] - Live services and other Net Bookings reached $1.25 billion, exceeding the average estimate of $1.07 billion by 10.5% year-over-year [3] - Full game downloads Net Bookings were $832 million, significantly higher than the estimated $501.90 million, marking a 124.9% increase compared to the previous year [3] - Packaged goods Net Bookings totaled $545 million, surpassing the average estimate of $379.53 million, representing a 69.8% year-over-year growth [3] Stock Performance - Over the past month, EA's shares have returned +0.5%, while the Zacks S&P 500 composite has increased by +1.7% [4] - EA currently holds a Zacks Rank 3 (Hold), suggesting that its performance may align with the broader market in the near term [4]

Financial Data and Key Metrics Changes - Q2 net bookings reached $2.08 billion, up 14% year-over-year, exceeding expectations [29] - Full game net bookings were $832 million, up 20% year-over-year [29] - Live services net bookings were $1.25 billion, up 10% year-over-year, comprising 74% of the business on a trailing twelve-month basis [30][29] - Q2 net revenue was $2.03 billion, up 6% year-over-year, with gross margins increasing by 130 basis points [36] - Earnings per share was $1.11, with a record Q2 operating cash flow of $234 million, more than double the prior year [37] Business Line Data and Key Metrics Changes - The American Football segment saw significant growth, with new players more than doubling year-over-year, representing around 25% of the player base [11] - College Football 25 became the best-selling HD title in North America, driving engagement and community connection [12] - EA SPORTS FC reached over 130% more players worldwide, with significant engagement in both HD and mobile platforms [14][32] - Apex Legends experienced a decline in net bookings, attributed to changes in the Battle Pass structure, but is expected to recover with future innovations [20][33] Market Data and Key Metrics Changes - The EA SPORTS franchises demonstrated strong performance, particularly in American Football and Global Football, contributing to overall growth [27][32] - The company is well-positioned to capture more share of sports fandom as the industry shifts towards more social and interactive experiences [9] Company Strategy and Development Direction - The company aims to create a comprehensive football fan platform that engages fans year-round, integrating both NFL and College Football [51][53] - Plans to leverage generative AI to expand and transform entertainment experiences, focusing on social connection and self-expression [9] - The EA SPORTS APP is set to enhance fan engagement by combining real-world sports content with interactive gaming experiences [55][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term financial framework and the ability to significantly outperform the market through FY27 for net bookings growth [44] - The company raised its FY25 net bookings guidance to $7.5 billion to $7.8 billion, reflecting strong performance in the first half of the fiscal year [38] - Management highlighted the importance of community-driven events and engagement strategies to sustain growth in the American Football segment [54] Other Important Information - The Sims franchise is evolving to offer more options for player engagement, with new content and community-driven initiatives [22][23] - The upcoming launch of Dragon Age: The Veilguard is anticipated to be a significant success, building on the legacy of its predecessor [24][74] Q&A Session All Questions and Answers Question: How to capture momentum in American football on a long-term basis? - Management emphasized a thoughtful rollout plan, focusing on community engagement and building a symbiotic relationship between Madden and College Football [50][51] Question: What are the plans for the EA SPORTS app and its rollout? - The company plans a phased rollout, starting with Spain, leveraging partnerships to enhance the sports fan experience [55][57] Question: What is the expected growth for live services in sports? - Live services are expected to see mid-single-digit growth, driven primarily by the American Football segment [60][61] Question: How will Apex Legends evolve after recent challenges? - Management indicated a focus on meaningful innovation and systematic changes to enhance player engagement and retention [64][66] Question: What has been done to position BioWare for success with Veilguard? - The studio has returned to its strengths in storytelling and character development, focusing on delivering high-quality experiences [82][84]

Group 1 - Electronic Arts (EA) reported quarterly earnings of $2.15 per share, exceeding the Zacks Consensus Estimate of $2.03 per share, and up from $1.46 per share a year ago, representing an earnings surprise of 5.91% [1] - The company posted revenues of $2.08 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.40%, and an increase from $1.82 billion year-over-year [2] - EA has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with EA shares having gained about 5.4% since the beginning of the year, compared to the S&P 500's gain of 22.1% [3] - The current consensus EPS estimate for the upcoming quarter is $3.48 on revenues of $2.54 billion, and for the current fiscal year, it is $7.80 on revenues of $7.65 billion [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 42% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact EA's stock performance [8]

49度的变 Electronic Arts Inc. Q2 FY25 Results October 29, 2024 Table of Contents Safe Harbor Statement Select Q2 FY25 Highlights Net Bookings Results Core Business and FY25 Title Slate Q2 FY25 Actuals & Guidance GAAP to Non-GAAP Reconciliation Appendix (三) Safe Harbor Statement Please review our risk factors on Form 10-Q filed with the SEC Some statements set forth in this document, including the information relating to EA's fiscal 2025 guidance information and title slate contain forward-looking statements th ...

Financial Performance - Q2 net bookings reached a record $2.079 billion, exceeding the high end of the guidance range of $2.050 billion[3] - Net revenue for Q2 was $2.025 billion, with net cash provided by operating activities at $234 million[4] - FY25 net revenue is expected to be approximately $7.400 billion to $7.700 billion, with net income projected between $1.019 billion and $1.156 billion[9] - Q3 FY25 net bookings are expected to be approximately $2.400 billion to $2.550 billion[11] - Net revenue for Q2 FY25 increased to $2,025 million, up 6% year-over-year (YoY) from $1,914 million in Q2 FY24[24] - Gross profit for Q2 FY25 rose to $1,569 million, an 8% YoY increase from $1,458 million in Q2 FY24[24] - Operating income for Q2 FY25 grew to $384 million, a 2% YoY increase from $377 million in Q2 FY24[24] - Net income for Q2 FY25 decreased to $294 million, down 26% YoY from $399 million in Q2 FY24[24] - Diluted earnings per share (EPS) for Q2 FY25 dropped to $1.11, a 24% YoY decline from $1.47 in Q2 FY24[24] - Q2 FY25 net revenue increased by 6% YoY to $2,025 million, driven by a 37% YoY growth in full game downloads to $475 million[26] - Live services and other revenue remained stable with a 1% YoY increase to $1,309 million, contributing 65% of total net revenue in Q2 FY25[26] - Console revenue grew 16% YoY to $1,374 million, while PC & Other and Mobile revenues declined by 14% and 6% YoY, respectively[26] - Non-GAAP operating income rose 12% YoY to $637 million, with a non-GAAP operating margin of 31.5%, up from 29.8% in Q2 FY24[30] - FY25 net revenue guidance is projected between $7,400 million and $7,700 million, with a non-GAAP operating margin range of 30.7% to 32.1%[31] - Q3 FY25 net revenue guidance is estimated between $1,875 million and $2,025 million, with a projected change in deferred net revenue of $525 million[33] Cash Flow and Share Repurchases - Net cash provided by operating activities for Q2 FY25 was $234 million, compared to $112 million in Q2 FY24[23] - Free cash flow for Q2 FY25 was $184 million, with a trailing twelve-month (TTM) free cash flow of $1,978 million, down 2% YoY[27][28] - EA repurchased 2.6 million shares for $375 million during the quarter, totaling 10.2 million shares for $1.400 billion over the trailing twelve months[4] - The company repurchased $375 million worth of common stock in Q2 FY25, a 15% increase from the previous quarter[27] Game Performance and Player Engagement - American Football is on track to exceed $1 billion in net bookings for FY25, with total hours played in Q2 up over 140% year over year[3] - The Sims™ 4 added more than 15 million players over the past year, driving higher-than-expected net bookings[3] - College Football 25 was the best-selling HD title in North America through September, contributing to EA having three of the top ten HD bestsellers in the region[3] - Global Football franchise net bookings in FY25 are on track to grow over the record FY24 performance[3] Balance Sheet and Capital Expenditures - Cash and cash equivalents decreased to $2,197 million as of September 30, 2024, down from $2,900 million on March 31, 2024[21] - Deferred net revenue (online-enabled games) decreased to $1,475 million as of September 30, 2024, from $1,814 million on March 31, 2024[22] - Total assets as of September 30, 2024, were $13,136 million, slightly down from $13,420 million on March 31, 2024[21] - Capital expenditures increased 15% YoY to $220 million on a TTM basis, reflecting ongoing investments in infrastructure and technology[27] Dividends and Stock-Based Compensation - EA declared a quarterly cash dividend of $0.19 per share, payable on December 18, 2024[5] - Stock-based compensation for Q2 FY25 increased to $174 million, up from $155 million in Q2 FY24[24] Non-GAAP Financial Measures - Non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring charges, and capital expenditures[34] - Non-GAAP measures are used by management to understand ongoing financial and business performance, excluding items not indicative of core business[34] - Investors are encouraged to review GAAP financial measures and reconciliations of non-GAAP measures to GAAP[35] - Non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures[34] Tax Rate - The company maintains a tax rate of 19% for internal performance evaluation and future planning[31][33] - The company uses a tax rate of 19% internally for evaluating operating performance and forecasting future periods[35]

Core Viewpoint - Electronic Arts (EA) is expected to report its second-quarter fiscal 2025 results on October 29, with anticipated GAAP revenues between $1.9 billion and $2 billion, reflecting an 11.55% growth year-over-year [1]. Revenue and Earnings Expectations - The Zacks Consensus Estimate for fiscal second-quarter revenues is $2.03 billion, indicating an increase from the previous year [1]. - EA anticipates earnings in the range of 76 to 93 cents per share, with the consensus mark at $2.02 per share, suggesting a 38.26% increase from the year-ago figure [1]. - The earnings estimate has decreased by one cent over the past 30 days [1]. Factors Driving Growth - The launch of the Lovestruck pack within the Sims games and Season 22 of Apex Legends is expected to expand the customer base and drive revenue growth [1]. - The launch of EA SPORTS College Football 25 is anticipated to contribute to active user growth, supported by AI and ML enhancements [2]. - EA's Team Builder and UGX suite are expected to improve customer experience and revenue [2]. - The launch of Madden NFL 25, featuring enhanced audio and visual elements, is likely to boost the franchise's popularity [2]. - EA's Rush, a social 5v5 experience, is expected to enhance user retention across multiple platforms [2]. Competitive Landscape - EA faces stiff competition from Microsoft-owned Activision Blizzard, Take-Two Interactive, and Nintendo, which may hinder its growth prospects [4]. - The launch of competing titles such as Call of Duty: Warzone Mobile, NBA 2K25, and Nintendo's World Championships NES Edition is expected to negatively impact EA's active user growth in the upcoming quarter [4].

Analysts on Wall Street project that Electronic Arts (EA) will announce quarterly earnings of $2.02 per share in its forthcoming report, representing an increase of 38.4% year over year. Revenues are projected to reach $2.03 billion, increasing 11.6% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this pe ...

Electronic Arts (NASDAQ: EA ) held its latest Investor Day on September 17. Key highlights from this event included an update that the company is on track toward the high end of its net bookings guidance for FY25. There wereOliver Rodzianko is an investment analyst specializing in the technology sector, with a focus on artificial intelligence, semiconductors, software, and renewable energy. He has earned a strong reputation on Seeking Alpha, where he is frequently featured in the platform’s "Must Reads." Hi ...

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