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10-KPeriod: FY2024

ELECTRONIC ARTS INC. Annual Report, Year Ended Mar 31, 2024

Filed May 22, 2024For Securities:EA

Summary

Electronic Arts Inc. (EA) reported solid financial results for the fiscal year ended March 30, 2024, with total net revenue reaching $7.56 billion, a 2% increase year-over-year. The company's live services segment continues to be a dominant revenue driver, accounting for 73% of total net revenue. This segment, particularly extra content purchases within modes like Ultimate Team and for franchises such as Apex Legends, demonstrates the success of EA's recurring revenue strategy. Operating income saw a significant 14% increase, reaching $1.52 billion, reflecting improved operational efficiency and a higher gross margin of 77.4%. EA demonstrated a strong commitment to returning value to shareholders through a substantial stock repurchase program, buying back approximately $1.3 billion worth of shares in fiscal year 2024. The company also announced a new, significantly larger stock repurchase authorization of $5.0 billion, signaling confidence in its financial position and future outlook. While the company operates in a highly competitive and rapidly evolving industry, its focus on core franchises, digital delivery, and live services positions it for continued engagement and revenue growth.

Financial Statements
Beta
Revenue$7.56B
Cost of Revenue$1.71B
Gross Profit$5.85B
Operating Expenses$4.33B
Operating Income$1.52B
Interest Expense$58.00M
Net Income$1.27B
EPS (Basic)$4.71
EPS (Diluted)$4.68
Shares Outstanding (Basic)270.00M
Shares Outstanding (Diluted)272.00M

Key Highlights

  • 1Total net revenue increased by 2% to $7.56 billion in fiscal year 2024.
  • 2Live services and other net revenue contributed $5.55 billion, representing 73% of total net revenue, highlighting the strength of recurring revenue streams.
  • 3Operating income grew by 14% to $1.52 billion, supported by a higher gross margin of 77.4%.
  • 4Net cash provided by operating activities increased by a significant 49% to $2.31 billion.
  • 5The company repurchased $1.3 billion of its common stock in FY2024 and authorized a new $5.0 billion stock repurchase program.
  • 6Digital full game downloads continue to grow, comprising $1.34 billion in net revenue, while packaged goods remained stable at $672 million.
  • 7EA SPORTS FC franchise remains a key revenue driver, with the successful launch of EA SPORTS FC marking its continued importance.

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