For the quarter ended June 2024, Electronic Arts (EA) reported revenue of $1.26 billion, down 20% over the same period last year. EPS came in at $0.52, compared to $1.14 in the year-ago quarter.The reported revenue represents a surprise of +3.87% over the Zacks Consensus Estimate of $1.21 billion. With the consensus EPS estimate being $0.43, the EPS surprise was +20.93%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Electronic Arts (EA) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20.93%. A quarter ago, it was expected that this video game maker would post earnings of $1.54 per share when it actually produced earnings of $1.37, delivering a surprise of -11.04%.Over the last four quarters, the ...

Q1 FY25 Performance - Net bookings for Q1 FY25 were $1.262 billion, a 20% year-over-year decrease[14, 17, 50] - Live Services represented 75% of total TTM net bookings[10] - EA SPORTS FCTM Mobile reported record net bookings for Q1[10] - GAAP EPS for Q1 FY25 was $1.04[21] - Operating Cash Flow for Q1 FY25 was $120 million[21] - Free Cash Flow for Q1 FY25 was $53 million[42] FY25 Guidance - The company expects net revenue between $7.1 billion and $7.5 billion for FY25[21] - The company expects net bookings between $7.3 billion and $7.7 billion for FY25[22] - GAAP EPS is projected to be between $3.34 and $4.00 for FY25[21] - Operating Cash Flow is expected to be between $2.05 billion and $2.25 billion for FY25[21] Q2 FY25 Guidance - The company expects net revenue between $1.9 billion and $2.0 billion for Q2 FY25[21] - The company expects net bookings between $1.95 billion and $2.05 billion for Q2 FY25[22] - GAAP EPS is projected to be between $0.76 and $0.93 for Q2 FY25[21]

[Q1 FY25 Performance Highlights](index=1&type=section&id=Q1%20FY25%20Performance%20Highlights) [Executive Summary](index=1&type=section&id=Executive%20Summary) Electronic Arts reported a strong start to fiscal year 2025, with Q1 results exceeding expectations, driven by strong live services performance and successful game launches - EA delivered a strong start to FY25, beating net bookings guidance, driven by live services and continued player engagement[1](index=1&type=chunk) - The successful launch of EA SPORTS College Football 25 and upcoming titles are expected to build momentum for FY25 and beyond[1](index=1&type=chunk) [Operating Highlights](index=1&type=section&id=Operating%20Highlights) Q1 operating performance was robust, with net bookings reaching $1.262 billion, exceeding guidance, fueled by strong Madden NFL 24, FC Online, and FC Mobile results Q1 FY25 Key Operating Metrics | Metric | Value | Driver | | :--- | :--- | :--- | | Net Bookings | $1.262 billion | Stronger performance from Madden NFL 24, FC Online, and FC Mobile | - EA SPORTS Madden NFL showed sustained momentum, with weekly average users in Ultimate Team and total net bookings up double digits year-over-year[2](index=2&type=chunk) - Post-quarter, EA SPORTS College Football 25 attracted 5 million unique players in its first week, with an additional 500,000 playing via the EA Play trial[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For Q1, EA reported net revenue of $1.660 billion and $120 million in operating cash flow, while repurchasing 2.8 million shares for $375 million Q1 FY25 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Revenue | $1.660 billion | | Net Cash from Operating Activities | $120 million | | Trailing Twelve Months OCF | $2.076 billion | [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns) [Dividend and Share Repurchases](index=1&type=section&id=Dividend%20and%20Share%20Repurchases) EA declared a quarterly cash dividend of $0.19 per share and actively repurchased 2.8 million shares for $375 million during the quarter - A quarterly cash dividend of **$0.19 per share** was declared, payable on September 18, 2024[4](index=4&type=chunk) Share Repurchase Activity | Period | Shares Repurchased (millions) | Value ($ millions) | | :--- | :--- | :--- | | Q1 FY25 | 2.8 | 375 | | TTM Ended June 30, 2024 | 10.2 | 1,350 | [Financial Results](index=2&type=section&id=Financial%20Results) [Selected Financial Highlights](index=2&type=section&id=Selected%20Financial%20Highlights) This section provides a comparative overview of key financial metrics for the three and twelve months ending June 30, 2024, versus the same periods in 2023 Q1 Financial Highlights (Three Months Ended June 30) | Metric (in $ millions, except per share) | 2024 | 2023 | | :--- | :--- | :--- | | Total net revenue | 1,660 | 1,924 | | Net income | 280 | 402 | | Diluted earnings per share | 1.04 | 1.47 | | Operating cash flow | 120 | 359 | Trailing Twelve Months Financial Highlights (Ended June 30) | Metric (in $ millions) | 2024 | 2023 | | :--- | :--- | :--- | | Total net revenue | 7,298 | 7,583 | | Net income | 1,151 | 893 | | Operating cash flow | 2,076 | 1,987 | Net Bookings Calculation (in $ millions) | Period | Total Net Revenue | Change in Deferred Net Revenue | Total Net Bookings | | :--- | :--- | :--- | :--- | | Q1 FY25 | 1,660 | (398) | 1,262 | | Q1 FY24 | 1,924 | (346) | 1,578 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 FY25, net revenue decreased to $1.660 billion, resulting in a net income of $280 million or $1.04 per diluted share, down from the prior year Q1 FY25 Statement of Operations (in $ millions, except per share) | Line Item | Q1 FY25 | Q1 FY24 | | :--- | :--- | :--- | | Net Revenue | 1,660 | 1,924 | | Gross Profit | 1,397 | 1,556 | | Operating Income | 364 | 542 | | Net Income | 280 | 402 | | Diluted EPS | $1.04 | $1.47 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, EA's balance sheet shows total assets of $12.708 billion, with cash and cash equivalents at $2.400 billion, and total stockholders' equity at $7.400 billion Balance Sheet Highlights (in $ millions) | Account | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 2,400 | 2,900 | | Total current assets | 3,587 | 4,247 | | TOTAL ASSETS | 12,708 | 13,420 | | Total current liabilities | 2,468 | 3,090 | | TOTAL LIABILITIES | 5,308 | 5,907 | | Total stockholders' equity | 7,400 | 7,513 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 FY25, operating cash flow was $120 million, with significant cash usage in financing activities, leading to a $500 million decrease in cash and cash equivalents Q1 FY25 Cash Flow Summary (in $ millions) | Activity | Q1 FY25 | Q1 FY24 | | :--- | :--- | :--- | | Net cash provided by operating activities | 120 | 359 | | Net cash used in investing activities | (69) | (44) | | Net cash used in financing activities | (546) | (482) | | Change in cash and cash equivalents | (500) | (165) | [Supplemental Financial Information](index=10&type=section&id=Supplemental%20Financial%20Information) Q1 FY25 net revenue composition shows 85% from live services and 15% from full game sales, with console remaining the largest platform Q1 FY25 Net Revenue by Composition (in $ millions) | Composition | Q1 FY25 | Q1 FY24 | YoY % Change | | :--- | :--- | :--- | :--- | | Full game | 250 | 443 | (44%) | | Live services and other | 1,410 | 1,481 | (5%) | | **Total net revenue** | **1,660** | **1,924** | **(14%)** | - The composition of net revenue in Q1 FY25 was **85% from Live services and other**, and **15% from Full game sales**[29](index=29&type=chunk) Q1 FY25 Net Revenue by Platform (in $ millions) | Platform | Q1 FY25 | Q1 FY24 | YoY % Change | | :--- | :--- | :--- | :--- | | Console | 1,005 | 1,167 | (14%) | | PC & Other | 365 | 451 | (19%) | | Mobile | 290 | 306 | (5%) | [Business Outlook](index=3&type=section&id=Business%20Outlook%20as%20of%20July%2030%2C%202024) [Fiscal Year 2025 Guidance](index=3&type=section&id=Fiscal%20Year%202025%20Expectations%20%E2%80%93%20Ending%20March%2031%2C%202025) Electronic Arts provided its financial outlook for the full fiscal year 2025, projecting net bookings between $7.300 billion and $7.700 billion FY2025 Full Year Guidance | Metric | Expected Range (in billions, except per share) | | :--- | :--- | | Net Bookings | $7.300 to $7.700 | | Net Revenue | $7.100 to $7.500 | | Net Income | $0.904 to $1.085 | | Diluted EPS | $3.34 to $4.00 | | Operating Cash Flow | $2.050 to $2.250 | [Second Quarter FY25 Guidance](index=3&type=section&id=Second%20Quarter%20Fiscal%20Year%202025%20Expectations%20%E2%80%93%20Ending%20September%2030%2C%202024) For Q2 FY25, EA anticipates net bookings between $1.950 billion and $2.050 billion, with net revenue expected in the range of $1.900 billion to $2.000 billion Q2 FY2025 Guidance | Metric | Expected Range (in billions, except per share) | | :--- | :--- | | Net Bookings | $1.950 to $2.050 | | Net Revenue | $1.900 to $2.000 | | Net Income | $0.204 to $0.248 | | Diluted EPS | $0.76 to $0.93 | [GAAP to Non-GAAP Reconciliation](index=7&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) [Reconciliation of Financial Measures](index=7&type=section&id=Reconciliation%20of%20Financial%20Measures) This section details the reconciliation from GAAP to non-GAAP financial measures for historical results and future guidance, adjusting for specific non-core items Q1 GAAP to Non-GAAP Operating Income Reconciliation (in $ millions) | Line Item | Q1 FY25 | Q1 FY24 | | :--- | :--- | :--- | | GAAP operating income | 364 | 542 | | Acquisition-related expenses | 27 | 41 | | Restructuring and related charges | 6 | 3 | | Stock-based compensation | 143 | 130 | | **Non-GAAP operating income** | **540** | **716** | FY25 Guidance - GAAP vs. Non-GAAP Operating Margin | Metric | GAAP Range | Non-GAAP Range | | :--- | :--- | :--- | | Operating Margin | 18.0% to 20.6% | 29.6% to 31.7% | - The company uses an internal tax rate of **19%** to evaluate operating performance and for forecasting purposes[35](index=35&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) [Supporting Information](index=3&type=section&id=Supporting%20Information) [Conference Call and Forward-Looking Statements](index=3&type=section&id=Conference%20Call%20and%20Forward-Looking%20Statements) This section provides investor conference call details and a standard disclaimer regarding forward-looking statements, which are subject to risks and uncertainties - An investor conference call was held on July 30, 2024, to discuss the financial results, with replays available[11](index=11&type=chunk)[12](index=12&type=chunk) - The report includes forward-looking statements regarding future performance, which are not guarantees and are subject to risks and uncertainties[13](index=13&type=chunk)[14](index=14&type=chunk) [About Electronic Arts and Non-GAAP Measures](index=4&type=section&id=About%20Electronic%20Arts%20and%20Non-GAAP%20Measures) This section provides a corporate overview of Electronic Arts as a global leader in digital interactive entertainment and explains the rationale for using non-GAAP financial measures - Electronic Arts is a global leader in digital interactive entertainment, with key brands like EA SPORTS FC™, Apex Legends™, and The Sims™[16](index=16&type=chunk) - The company uses non-GAAP financial measures to supplement GAAP results, excluding items like acquisition-related expenses, stock-based compensation, and restructuring charges to better evaluate core operating performance[38](index=38&type=chunk)

Major videogame publishers including Electronic Arts and Take-Two will likely stave off a big hit from the strike by voice actors and motion-capture artists due to their in-house studios and the lengthy development cycles for games, analysts said.The strike, which began last week, marked the latest in Hollywood after unions representing writers and actors took to the picket lines last year seeking protections against the use of artificial intelligence.It comes at a crucial time for the videogame industry as ...

The upcoming report from Electronic Arts (EA) is expected to reveal quarterly earnings of $0.43 per share, indicating a decline of 62.3% compared to the year-ago period. Analysts forecast revenues of $1.21 billion, representing a decrease of 23% year over year.The consensus EPS estimate for the quarter has undergone an upward revision of 5.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timef ...

Electronic Arts (EA) is set to report first-quarter fiscal 2025 results on Jul 30.For first-quarter fiscal 2025, EA expects GAAP revenues between $1.575 billion and $1.675 billion and earnings per share in the range of 73-90 cents. The Zacks Consensus Estimate for earnings has remained steady at 42 cents per share in the past 30 days. The figure indicates a 63.16% decline from the year-ago quarter’s reported figure.The consensus mark for revenues is pegged at $1.21 billion, suggesting a 23.01% decrease from ...

Electronic Arts (EA) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On ...

In this articleEAEA Sports College Football 25. Courtesy: EA SportsThe 2024 football season officially starts this weekend for many fans, as Electronic Arts rolls out a long-awaited revamp of its college football game. Some fans of the old game who have spent less time with their XBox and PlayStation in recent years are quickly realizing they've got a lot of practicing to do."I was watching some of the videos and the gameplay, and it's all these different elements. We're going from a flip phone to an iPhone ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?Develop ...