Core Viewpoint - Electronic Arts (EA) has shown strong performance in the stock market, with a year-to-date gain of 21.7%, outperforming both the broader Zacks Consumer Discretionary sector and the Zacks Gaming industry [1] Financial Performance - EA's revenue from live services and other sources increased by 1.2% year-over-year to $1.3 billion, while full-game download revenues surged by 37% year-over-year to $475 million during Q2 of fiscal 2025 [2] - For Q3 fiscal 2025, EA anticipates GAAP revenues between $1.875 billion and $2.025 billion, with earnings per share expected to range from 85 cents to $1.02 [6] - The company projects fiscal 2025 revenues between $7.4 billion and $7.7 billion, with earnings per share expected between $3.34 and $4 [6][10] - The consensus estimate for Q3 fiscal 2025 earnings is $3.43 per share, reflecting a 15.88% year-over-year growth [9] - The consensus for fiscal 2025 earnings is $7.82 per share, indicating a 12.52% year-over-year growth [10] Product Development and Innovations - EA has introduced Strand Hair Technology in Dragon Age: The Veilguard, enhancing character realism with 50,000 individual strands for over 100 hairstyles [3] - The company launched Cranium Technology in EA SPORTS FC 25, improving character customization and animation [4] - EA's ongoing research and development in titles like Battlefield and skate aims to boost customer engagement and satisfaction [5] Market Position and Valuation - EA shares are currently considered overvalued, with a forward 12-month Price/Earnings (P/E) ratio of 20.18, higher than the Zacks Consumer Discretionary sector's 19.14 [12] - The company has a Zacks Rank 3 (Hold), suggesting that investors should wait for a more favorable entry point [13]

Core Viewpoint - Electronic Arts (EA) has experienced a significant stock price increase of over 25% since early 2022, attributed to revenue growth and share repurchases, despite a general decline in gaming demand [1][2][3]. Financial Performance - EA's revenue rose by 30% from $5.6 billion in fiscal 2021 to $7.3 billion currently, although revenue growth was only 2% in fiscal 2024 due to declining gaming demand [1][3]. - The company's operating margin improved to 20.9% in fiscal 2024 from 18.6% in 2021, indicating enhanced profitability [2]. - EA reported total bookings of $2.1 billion in Q2'25, reflecting a 14% year-over-year increase, with earnings per share rising to $2.15 from $1.46 in the prior-year quarter [3]. Market Position and Valuation - EA's stock is currently priced fairly at an estimated valuation of $165 per share, based on a forward P/E ratio of 21x expected earnings of $7.79 for 2025 [5]. - The company has a solid financial position, with a debt to equity ratio of 4.5% and cash constituting 24.3% of its assets, indicating low financial risk [2]. Industry Trends - The U.S. total video game sales in 2023 reached $57.2 billion, showing only a modest 1% year-over-year growth, reflecting broader industry challenges [1]. - The average quarterly playtime for gamers has decreased by 26% from 2021 to 2023, contributing to the overall decline in gaming demand [3]. Stock Performance - EA stock has risen 20% this year, slightly underperforming the S&P 500 index, which rose by 25% [4]. - Historical returns for EA stock have been less volatile compared to the S&P 500, with annual returns of -8% in 2021, -7% in 2022, and 13% in 2023 [4].

Core Viewpoint - Electronic Arts (EA) is a prominent company in the gaming industry, known for its development and distribution of games across various platforms including consoles, PCs, and mobile devices [1]. Group 1: Company Overview - EA's portfolio includes well-known franchises such as Battlefield, Mass Effect, Dragon Age, The Sims, Need for Speed, EA Sports FC (formerly FIFA), and Madden NFL Series [1]. Group 2: Investment Philosophy - The investment philosophy is based on fundamental bottom-up analysis and quantitative modeling, focusing on identifying perception gaps to exploit over-pessimism and excessive exuberance in the market [1].

Table of Contents Non-accelerated filer ☐ Smaller reporting company ☐ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 000-17948 (650) 628-1500 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [1][2] - The news team covers a wide range of sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in major cities such as London, New York, and Sydney [2] Group 2 - The company utilizes technology to enhance workflows and has adopted automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [4]

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 ...