Electronic Arts (EA) reported fourth-quarter fiscal 2024 earnings of $1.37 per share, which declined 22.6% year over year. Revenues decreased 5.1% year over year to $1.77 billion due to weakness in Live services and other revenues.The Zacks Consensus Estimate for earnings was pegged at $1.55 per share. The consensus mark for revenues was pinned at $1.78 billion.Net bookings for the fiscal fourth quarter were $1.67 billion, down 14% year over year in both actual and constant currency.Full-game net bookings f ...

Financial Data and Key Metrics - Total net bookings for FY 2024 were $7.43 billion, up 1% YoY or 3% in constant currency [22] - Full game net bookings were $2.01 billion, up 11% YoY or 12% in constant currency, driven by Star Wars Jedi: Survivor and EA SPORTS portfolio [22] - Live services net bookings were $5.43 billion, down 2% YoY or 1% in constant currency, with strength in global football franchise offset by declines in Apex Legends [22] - GAAP net revenue was $7.56 billion, up 2% YoY, with a gross margin of 77.4%, an improvement of 150 basis points [23] - GAAP EPS was $4.68, growing 63% YoY, with operating cash flow of $2.32 billion, a record for the fiscal year [23] - Free cash flow reached $2.12 billion, up 58% YoY, including a one-time cash tax savings of approximately $150 million [24] Business Line Performance - EA SPORTS FC grew net bookings by high teens YoY, with billions of matches played and over a billion hours of content watched globally [10][11] - Madden NFL 24 achieved record net bookings and was the highest-selling installment since the early 2000s [13] - Apex Legends surpassed $3.4 billion in lifetime net bookings, with player sentiment improving by 29 points YoY [16][17] - The Sims 4 surpassed 85 million players, with double-digit YoY growth, and combined downloads of Sims Online and Sims Mobile exceeded 500 million [18] Market Performance - North America saw increased engagement for the top 10 franchises, with market share growth since FY 2022 [6] - EA SPORTS FC Mobile and Online declined YoY due to record comparables from the prior year's World Cup tailwinds, but FC Ultimate Team grew low-single digits [25] - Madden NFL saw increased weekly active users during and after the Super Bowl, with excitement continuing through the NFL draft [14] Strategic Direction and Industry Competition - The company is focused on three strategic pillars: entertaining massive online communities, telling blockbuster stories, and harnessing the power of community [7] - EA is leveraging partnerships with brands like Nike, Pepsi, Uber Eats, and Beats to deepen connections with players and unlock new sponsorship opportunities [12] - The company is investing in AI to improve development efficiency and expand game experiences, with over 50% of development processes expected to be positively impacted by generative AI [65][66] Management Commentary on Operating Environment and Future Outlook - Management highlighted the success of EA SPORTS FC and Madden NFL, with expectations for continued growth in core live services and new releases like EA SPORTS College Football 25 [14][27] - FY 2025 guidance includes net bookings of $7.3 billion to $7.7 billion, with mid-single-digit growth in core live services and low-single-digit growth in mobile [29] - The company expects GAAP operating margin to expand by 300 to 350 basis points by FY 2027, with non-GAAP operating margin expanding by 150 to 200 basis points [31] Other Important Information - The company announced a $5 billion stock repurchase program over the next three years, with $1.5 billion expected to be returned in FY 2025 [31] - EA plans to share more details about its development pipeline and strategic priorities at its Investor Day in September 2024 [32] Q&A Session Summary Question: Non-GAAP Operating Margin Guidance - The company introduced non-GAAP operating margin guidance to provide better transparency and align with its long-term financial framework [36][37] Question: Expectations for Major Franchises in FY 2025 - Management expects mid-single-digit growth in core live services, with continued growth in EA SPORTS FC and advancements in Apex Legends [42] Question: Stock Repurchase Program - The $5 billion stock repurchase program aligns with the company's long-term financial framework and signals confidence in future growth [44] Question: Mobile Segment Growth - The company expects low-to-mid-single-digit growth in the mobile market, with a focus on leveraging massive online communities and investing in breakout mobile titles [57][58] Question: AI in Game Development - AI is expected to significantly improve development efficiency, with over 50% of processes impacted, and expand game experiences over the next three to five years [65][66] Question: Advertising and IP Adaptation Opportunities - Advertising is seen as a potential growth driver, particularly in community-driven experiences beyond traditional gameplay, while IP adaptation into broader media is expected to benefit from the company's portfolio [73][72]

Electronic Arts (EA) reported $1.67 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 14.4%. EPS of $1.37 for the same period compares to $1.77 a year ago.The reported revenue represents a surprise of -6.41% over the Zacks Consensus Estimate of $1.78 billion. With the consensus EPS estimate being $1.54, the EPS surprise was -11.04%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Video game publisher Electronic Arts (EA) late Tuesday missed Wall Street's targets for its fiscal fourth quarter and gave a soft outlook for the current quarter and year ahead. EA stock fell in extended trading.X The Redwood City, Calif.-based company earned an adjusted $1.37 a share on net bookings of $1.67 billion in the quarter ended March 31. Analysts polled by FactSet had expected EA earnings of $1.52 a share on sales of $1.78 billion. In the year-earlier period, EA earned an adjusted $1.78 a share on ...

Exhibit 99.1 Electronic Arts Reports Q4 and FY24 Results EA SPORTSTM Momentum Continued in FY24, Company Delivers Record Fiscal Year Cash Flow REDWOOD CITY, CA – May 7, 2024 – (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2024. “This year, EA delivered bigger, bolder world class entertainment that engaged and connected hundreds of millions of players and fans,” said Andrew Wilson, CEO of EA. “We will continue to build on this strong momentu ...

Wall Street analysts forecast that Electronic Arts (EA) will report quarterly earnings of $1.55 per share in its upcoming release, pointing to a year-over-year decline of 12.4%. It is anticipated that revenues will amount to $1.78 billion, exhibiting a decline of 8.5% compared to the year-ago quarter.The current level reflects a downward revision of 28.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised t ...

Core Viewpoint - EA Sports is reviving its college football video game franchise after an 11-year hiatus, allowing college athletes to profit from their name, image, and likeness (NIL) for the first time, which is expected to enhance player engagement and marketability [7][5][4] Group 1: Company Developments - EA Sports announced the return of its college football franchise in 2021, with a new game set to be released in summer 2024, featuring real player names and likenesses [7][8] - The company is offering Football Bowl Subdivision players a minimum of $600 and a copy of the game to be featured, with over 10,000 players accepting this offer [7] - The last version of the college football game was released in 2013, and the franchise has been dormant since then due to legal issues regarding player likeness [6][4] Group 2: Industry Context - The NCAA's decision in 2021 to allow college athletes to profit from their NIL has created a favorable environment for the revival of the college football video game [5][4] - The gaming industry has evolved significantly over the past decade, with advancements in immersive experiences and gameplay modes, positioning EA Sports to compete effectively in the current market [8][9] - The cultural significance of college football video games has been highlighted, as they have inspired generations of players and fans, creating a strong nostalgic demand for their return [4][3]

Industry Overview - The video game industry is projected to reach $282.3 billion in 2024 and is expected to grow to $363.2 billion by 2027, indicating a robust growth trajectory [1] Company Analysis: Electronic Arts (EA) - EA is recognized for its strong sports game portfolio, particularly its soccer franchise, which saw a 7% increase in sales in Q3 2023 despite losing its FIFA partnership [2] - The company achieved record live services sales of $1.7 billion, accounting for 73% of its net bookings of $2.4 billion in fiscal Q3 [3] - EA's gross margin improved to 72.8% in fiscal Q3, up from 69.8% the previous year, aided by the lower production costs of live services [3] - EA's free cash flow nearly doubled year over year to $2.2 billion, making it an attractive investment opportunity [3] Company Analysis: Take-Two Interactive - Take-Two's strength is highlighted by its popular franchises, especially Grand Theft Auto, and its recent acquisition of Gearbox Entertainment, enhancing its portfolio [4] - The acquisition of Zynga in 2022 significantly boosted Take-Two's mobile sales, which reached $2 billion out of $4 billion in total sales for the first nine months of fiscal 2024 [4][5] - The company is expected to enter a new growth phase with the anticipated release of Grand Theft Auto VI next year, despite recent share price drops due to launch delay concerns [5][6] Company Analysis: Nintendo - Nintendo's resilience in the gaming market is attributed to its iconic franchises and the ongoing success of the Nintendo Switch, which contributed to an 8% year-over-year sales growth to 1.4 trillion yen in fiscal Q3 [7] - Digital game revenue increased by 12% year over year, approaching half of the total software sales for the Switch, leading to a higher gross margin of 55.8% [8] - The company's income from intellectual properties surged 93% year over year to 75.2 billion yen, driven by the success of the Super Mario Bros. movie [8]

The Zacks Toys - Games – Hobbies industry benefits from the robust demand for smart toys, STEM (Science, Technology, Engineering and Math) toys, sports toys and fashion dolls and accessories. Industry participants have been undertaking efforts on the digital front and focusing on better execution of marketing and promotional initiatives to drive growth. These firms, including Electronic Arts Inc. (EA) , Mattel, Inc. (MAT) and JAKKS Pacific, Inc. (JAKK) , are likely to gain from the trends above. However, hi ...

Key PointsElectronic Arts is a major video game publisher with the hottest franchises including Madden NFL, EA Sports FC, The Simms, Need for Speed, Apex Legends and Battlefield.Electronic Arts offers a $5.99 EA Play subscription, providing members access to its library of video games, and has over 600 million active gamers signed up to its EA players network.Take-Two Interactive is one of the best-selling video game franchises with its Grand Theft Auto series, as fans eagerly await the release of Grand The ...