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EA · Electronic Arts

50 filings

10-Q

EA 10-Q Quarterly Reports

Electronic Arts - 50 quarterly reports

Filing record · 2016–202610-K1210-Q328-K135

EA filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 135 current reports (8-K) between 2016 and 2026.

  1. FY2017 annual report10-K · May ’17May ’17
  2. Leadership change8-K · Nov ’19Nov ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. Material agreement8-K · Sep ’25Sep ’25
  1. 2027-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2026

    Electronic Arts Inc. (EA) reported solid financial results for the quarter ended June 30, 2026, with net revenue increasing 19% year-over-year to $1.986 billion, largely driven by strong performance in its EA SPORTS franchises, Battlefield 6, and Apex Legends. The company's focus on live services continues to be a significant revenue driver, with this segment growing 7% year-over-year. Gross margin improved to 86.2%, reflecting the favorable shift towards digital sales and live services, which generally carry higher margins than physical goods. Operationally, EA's net income rose to $397 million, with diluted EPS of $1.56. However, cash flow from operations turned negative, showing a usage of $242 million, a significant decrease from the prior year's positive $17 million, primarily due to higher cash payments for income taxes and variable compensation. Notably, the company is nearing the completion of its acquisition by an investor consortium, expected to close around August 4, 2026, which will result in the delisting of EA's common stock from the NASDAQ.

    Aug 3, 2026
  2. 2026-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2025

    Electronic Arts Inc. (EA) reported its quarterly results for the period ending December 31, 2025. Net revenue for the quarter was $1.901 billion, a slight increase of 1% year-over-year, primarily driven by strong performance in franchises like EA SPORTS FC, Battlefield, and EA SPORTS Madden NFL. However, operating income saw a significant decline of 66% year-over-year to $127 million, mainly due to a 22% increase in operating expenses, largely attributed to increased R&D and marketing spending, as well as merger-related fees. For the nine months ended December 31, 2025, net revenue was $5.411 billion, a decrease of 3% compared to the prior year, impacted by lower live services revenue and a decline in packaged goods sales. Despite the revenue dip, net cash provided by operating activities increased significantly by 30% to $1.973 billion, reflecting improved working capital management and lower tax payments. The company ended the period with a robust cash and cash equivalents balance of $2.784 billion. A significant development impacting the company is the proposed acquisition by an investor consortium for $210 per share in cash, which is expected to close in the first quarter of fiscal year 2027, subject to regulatory approvals. This impending transaction has led EA to suspend its share repurchase program.

    Feb 3, 2026
  3. 2026-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2025

    Electronic Arts Inc. (EA) reported its financial results for the fiscal quarter and six months ended September 30, 2025. For the quarter, net revenue was $1.839 billion, a decrease of 9% year-over-year, while net income was $137 million, down significantly from $294 million in the prior year period. Diluted earnings per share stood at $0.54. The company announced a definitive agreement to be acquired by an investor consortium for $210 per share in cash, expected to close in the first quarter of fiscal 2027. This significant development overshadows the current operational performance. While the company experienced a decline in net revenue and net income compared to the prior year, management highlighted ongoing trends in live services and digital game delivery as crucial for future growth. Despite the year-over-year revenue decline, net bookings for the quarter were $1.818 billion, reflecting underlying sales activity. Investors should closely monitor the progress of the proposed merger, including regulatory approvals and stockholder adoption, as this transaction represents the most material event for the company. Operationally, the continued strength of live services, particularly within sports franchises like EA SPORTS FC, remains a key revenue driver, even amidst competitive pressures and shifts in consumer spending patterns.

    Oct 31, 2025
  4. 2026-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2025

    Electronic Arts Inc. (EA) reported its first quarter results for fiscal year 2026, ending June 30, 2025. Total net revenue saw a slight increase of 1% year-over-year to $1,671 million. However, operating income declined by 26% to $271 million, and net income decreased by 28% to $201 million ($0.79 diluted EPS), primarily due to a significant 12% increase in operating expenses, driven by higher research and development investments and marketing spend. The company's cash position saw a notable decrease, with cash and cash equivalents falling to $1,518 million from $2,136 million at the prior quarter's end. This was largely driven by increased financing outflows, including substantial share repurchases totaling $375 million and excise taxes paid, as well as a significant drop in net cash provided by operating activities to $17 million from $120 million in the prior year period. Despite the cash outflow, EA returned $423 million to stockholders through share repurchases and dividends.

    Aug 1, 2025
  5. 2025-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2024

    Electronic Arts Inc. (EA) reported its financial results for the fiscal third quarter ending December 31, 2024. The company experienced a slight year-over-year decline in net revenue, which fell by 3% to $1.88 billion. This was primarily driven by a decrease in live services and other net revenue, down 3% to $1.28 billion, and a 3% decrease in full game net revenue to $599 million. Despite the revenue dip, gross margin improved by 3 percentage points to 75.8%, and operating income saw a modest 3% increase to $377 million. Net income for the quarter was $293 million, resulting in diluted earnings per share of $1.11. For the nine-month period ended December 31, 2024, net revenue decreased by 4% to $5.57 billion. The company continues to focus on its live services segment, which remains a significant contributor to its revenue, although it experienced a slight decline. EA also highlighted a decrease in net cash provided by operating activities, largely due to lower cash collections and higher tax payments. The company actively returned capital to shareholders through significant share repurchases, totaling $1.13 billion for the nine-month period, and paid $151 million in cash dividends.

    Feb 5, 2025
  6. 2025-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2024

    Electronic Arts Inc. (EA) reported its financial results for the fiscal quarter ending September 29, 2024. The company demonstrated a year-over-year increase in net revenue, reaching $2,025 million, up 6% from the prior year. This growth was primarily driven by strong performance in full game downloads and a slight increase in live services revenue. Despite a 10% rise in operating expenses, the company managed to increase its operating income by 2% to $384 million, and net income stood at $294 million, with diluted earnings per share of $1.11. Cash flow from operations saw a significant improvement, more than doubling year-over-year to $234 million. EA continued its commitment to returning capital to shareholders through a robust share repurchase program, having bought back 2.6 million shares for $375 million in the quarter. The company maintains a solid liquidity position with $2,563 million in cash, cash equivalents, and short-term investments, indicating financial stability. Management highlighted strategic priorities focused on growing online communities, deepening engagement, and expanding recurring revenue streams from live services and key franchises.

    Nov 1, 2024
  7. 2025-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2024

    Electronic Arts Inc. (EA) reported a decrease in net revenue for the first quarter of fiscal year 2025, with net revenue reaching $1.66 billion, a 14% decline compared to the same period last year. This was primarily driven by lower full game sales, down 44%, impacted by the absence of a major title release like Star Wars Jedi: Survivor from the prior year. Live services and other revenue, which forms the larger portion of EA's revenue, saw a more modest 5% decrease, indicating continued resilience in its recurring revenue streams. Despite the revenue dip, gross margin improved to 84.2%, reflecting a more favorable revenue mix and cost efficiencies. However, operating expenses increased slightly, leading to a significant 33% decrease in operating income and a 30% drop in net income to $280 million. The company continues to actively manage its capital structure, repurchasing $375 million of stock and paying $50 million in dividends during the quarter. Cash and cash equivalents decreased to $2.4 billion, impacted by these capital returns and lower operating cash flow, which was down 67% year-over-year.

    Aug 2, 2024
  8. 2024-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2023

    Electronic Arts Inc. (EA) reported its third-quarter results for the period ending December 30, 2023, showcasing a 3% year-over-year increase in net revenue to $1.945 billion. This growth was primarily fueled by a 5% rise in live services and other net revenue, reaching $1.327 billion. The company demonstrated improved profitability with a 3-percentage point increase in gross margin to 72.8% and a significant 26% year-over-year increase in operating income, reaching $365 million. Diluted earnings per share were $1.07. The company maintained a strong liquidity position with $3.104 billion in cash, cash equivalents, and short-term investments, and generated $1.735 billion in net cash from operating activities year-to-date. Key drivers for the quarter included strong performance from EA SPORTS FC 24, EA SPORTS Madden NFL 24, Apex Legends, and The Sims 4. The company also highlighted the continued importance of its live services, particularly extra content within the Ultimate Team mode and Apex Legends, which are significant contributors to revenue. EA is strategically focusing on growing online communities around its key franchises, expanding reach through storytelling, and building recurring revenue from its sports titles and live services. The company also continued its capital return program, repurchasing $325 million of its common stock during the quarter.

    Feb 6, 2024
  9. 2024-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2023

    Electronic Arts Inc. (EA) reported its financial results for the fiscal second quarter ended September 30, 2023. The company saw a modest increase in net revenue, reaching $1.914 billion, a 1% year-over-year rise. This growth was driven by strong performance in full game downloads and new releases like EA SPORTS FC 24, which offset a slight decline in live services and other revenue. Net income for the quarter was $399 million, or $1.47 per diluted share, showing an improvement from the prior year. The company also reported a significant increase in net cash provided by operating activities, up 200% year-over-year, indicating improved cash generation. EA continues its commitment to returning capital to shareholders through share repurchases and dividends, demonstrating financial discipline and confidence in its ongoing business strategy.

    Nov 7, 2023
  10. 2024-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2023

    Electronic Arts Inc. (EA) reported its financial results for the first quarter of fiscal year 2024, ending June 30, 2023. The company demonstrated solid revenue growth, with net revenue increasing by 9% year-over-year to $1.924 billion, primarily driven by strong performance in "Live Services and other" which grew 4% to $1.481 billion, and a significant 30% increase in full game net revenue to $443 million, boosted by new releases like "Star Wars Jedi: Survivor" and strong performance from "FIFA 23". Profitability saw a notable improvement, with operating income up 23% to $542 million, and net income rising to $402 million, resulting in diluted earnings per share of $1.47. The company also generated robust operating cash flow of $359 million, a substantial increase from the prior year. EA continued its commitment to returning capital to shareholders through share repurchases totaling $325 million and dividend payments of $52 million.

    Aug 8, 2023
  11. 2023-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2022

    Electronic Arts Inc. (EA) reported solid financial results for the third quarter of fiscal year 2023, ending December 31, 2022. Net revenue saw a 5% increase year-over-year to $1.88 billion, driven by strong performance in live services and other revenue streams, which grew 7% to $1.26 billion. This growth was primarily fueled by the continued success of titles like FIFA Ultimate Team and Apex Legends, highlighting the company's effective monetization strategies for in-game content. The company demonstrated improved operational efficiency, with operating expenses decreasing 3% year-over-year. This, combined with the revenue growth, led to a substantial 183% increase in operating income, reaching $289 million. Diluted earnings per share also saw significant improvement, coming in at $0.73 compared to $0.23 in the prior year. EA also continues to return capital to shareholders, repurchasing $325 million of its common stock during the quarter and paying $52 million in dividends.

    Feb 7, 2023
  12. 2023-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2022

    Electronic Arts Inc. (EA) reported its financial results for the quarter and six months ended September 30, 2022. The company demonstrated revenue growth driven by its Live Services segment, which includes extra content, subscriptions, and other in-game purchases, particularly from popular franchises like FIFA Ultimate Team and Apex Legends. While full game sales saw a slight year-over-year decline, the increase in Live Services revenue more than compensated, leading to overall net revenue growth. The company also highlighted operational efficiencies, reflected in an improved gross margin and a significant increase in operating income. Financially, EA managed its cash flow effectively, though it reported net cash used in operating activities for the six-month period. The company continued its capital return program through share repurchases and dividend payments, while maintaining a solid cash and short-term investment balance. Management expressed confidence in the company's ability to meet its financial obligations and pursue strategic growth opportunities, including ongoing investment in its live services and potential future acquisitions.

    Nov 8, 2022
  13. 2023-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2022

    Electronic Arts Inc. (EA) reported strong financial results for the first quarter of fiscal year 2023, ending June 30, 2022. Net revenue increased by 14% year-over-year to $1.77 billion, driven by robust growth in live services and other net revenue, which rose 16% to $1.43 billion. This growth highlights the continued success of EA's in-game content and subscription offerings, particularly within popular franchises like FIFA and Apex Legends. The company demonstrated improved profitability, with operating income up 37% year-over-year to $441 million, and net income increasing to $311 million, resulting in diluted earnings per share of $1.11. The healthy increase in gross margin to 82.2% reflects the company's strong digital sales model and efficient cost management. Despite a net cash used in operating activities of $78 million, primarily due to working capital changes and hedging activities, EA maintained a solid cash position with $2.08 billion in cash and cash equivalents. Management highlighted the ongoing shift towards digital delivery and live services as key trends benefiting the business, leading to expanded gross margins. The company also continued its capital return program, repurchasing approximately $320 million of its common stock and paying $53 million in dividends. EA's strategic focus on live services and its expanding portfolio of digital offerings position it well for continued growth in the dynamic interactive entertainment market.

    Aug 9, 2022
  14. 2022-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2021

    Electronic Arts Inc. (EA) reported its third-quarter results for the fiscal year ending December 31, 2021. The company saw a 7% year-over-year increase in net revenue, reaching $1.79 billion. This growth was primarily driven by a significant 23% surge in live services and other net revenue, totaling $1.17 billion, fueled by strong performance in extra content sales for popular titles like Apex Legends and FIFA Ultimate Team. Despite revenue growth, operating income saw a considerable decrease of 59% year-over-year to $102 million, largely due to a 29% increase in operating expenses, which included higher R&D, marketing, and administrative costs, as well as increased amortization of intangible assets resulting from recent acquisitions. Financially, EA ended the quarter with $2.67 billion in cash and cash equivalents. The company also actively engaged in capital return programs, repurchasing $325 million worth of its common stock and paying $48 million in cash dividends during the quarter. A significant portion of the year's investment was directed towards acquisitions, with the company completing the purchases of Glu Mobile and Playdemic, adding substantial goodwill and intangible assets to its balance sheet. While the company demonstrated robust top-line growth driven by its live services segment, investors should note the impact of increased operating expenses and the strategic investments in acquisitions on profitability.

    Feb 8, 2022
  15. 2022-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2021

    Electronic Arts Inc. (EA) reported strong financial performance for the quarter ended September 30, 2021. Net revenue surged by 59% year-over-year to $1.826 billion, driven by a significant increase in both full game sales and live services revenue. Live services, in particular, demonstrated robust growth, up 39% year-over-year, highlighting the continued importance of ongoing player engagement and in-game content. Operating income saw a substantial increase of 128% year-over-year, reaching $340 million, with diluted earnings per share at $1.02. The company also provided an update on its significant acquisition activities, including the completion of the Codemasters, Glu Mobile, and Playdemic acquisitions. These acquisitions are expected to bolster EA's presence in racing games and accelerate its mobile growth strategy. Despite a notable increase in cash used in operating activities due to higher tax payments and marketing spend, EA maintained a healthy liquidity position with total cash, cash equivalents, and short-term investments of $1.972 billion.

    Nov 9, 2021
  16. 2022-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2021

    Electronic Arts Inc. (EA) reported its first quarter fiscal year 2022 results, showcasing a 6% year-over-year increase in net revenue to $1.55 billion, driven primarily by strong performance in live services. Live services and other net revenue grew by 12% to $1.23 billion, highlighting the company's successful expansion of extra content and subscription offerings, particularly within its popular sports franchises like FIFA Ultimate Team. Despite revenue growth, operating income declined by 32% to $322 million, and net income decreased to $204 million ($0.71 diluted EPS) compared to the prior year's quarter, reflecting a significant 31% increase in operating expenses, largely due to investments in research and development and marketing. The company also announced substantial strategic acquisitions, including the completed acquisition of Glu Mobile for $2.0 billion to bolster its mobile presence and the pending acquisition of Playdemic for $1.4 billion. These strategic moves underscore EA's commitment to expanding its market reach and diversifying its portfolio. However, the company's operating cash flow turned negative at ($143 million), a significant decrease from the prior year, primarily due to increased tax payments, royalties, and acquisition-related costs. EA continued its capital return program, repurchasing $325 million of its common stock and paying $49 million in dividends.

    Aug 10, 2021
  17. 2021-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2020

    Electronic Arts Inc. (EA) reported its financial results for the third quarter of fiscal year 2021, ending December 31, 2020. The company demonstrated revenue growth, with net revenue reaching $1.67 billion, a 5% increase year-over-year, driven by strong performance in live services and other revenue streams, which grew 5% to $951 million. Despite increased operating expenses, EA maintained a healthy gross margin of 64.1% for the quarter. Operationally, EA highlighted the resilience of digital sales, noting a significant increase potentially driven by pandemic-related behavioral shifts. The company also announced significant strategic moves, including the pending acquisition of Codemasters and the recently announced agreement to acquire Glu Mobile Inc., signaling aggressive expansion plans. EA also initiated a quarterly cash dividend, underscoring a commitment to returning value to shareholders alongside growth initiatives.

    Feb 8, 2021
  18. 2021-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2020

    Electronic Arts Inc. (EA) reported its results for the quarter and six months ended September 30, 2020. For the quarter, net revenue declined 15% year-over-year to $1.151 billion, while live services and other revenue increased 13% to $869 million. Diluted EPS decreased significantly by 78% to $0.63, primarily due to a one-time tax benefit recorded in the prior year's quarter. The company reported increased operating expenses and a decrease in operating income. For the six-month period, net revenue saw a modest increase of 2% to $2.610 billion, driven by growth in live services. Full game revenue experienced a decline. The company highlighted a strong increase in operating cash flow year-over-year. EA also noted the continued shift towards digital game delivery and the increasing importance of its live services segment, particularly extra content sales for its Ultimate Team modes. The company is actively managing its cash position and has authorized a significant new stock repurchase program and initiated a quarterly cash dividend.

    Nov 10, 2020
  19. 2021-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2020

    Electronic Arts Inc. (EA) reported a strong first quarter for fiscal year 2021, with net revenue increasing by 21% year-over-year to $1.46 billion. This growth was primarily driven by robust performance in live services, which saw a 16% increase, and a significant 37% rise in full game sales. The company highlighted the impact of increased player engagement due to the COVID-19 pandemic, which led to record-breaking operating cash flow and net bookings for a fiscal first quarter. Despite the revenue growth, net income decreased by 74% to $365 million, largely due to a significant one-time tax benefit recognized in the prior year's comparable quarter. EA's balance sheet remains strong, with $4.01 billion in cash and cash equivalents and $1.95 billion in short-term investments, providing ample liquidity. The company continued its share repurchase program, though at a reduced pace compared to the previous year. Management expressed confidence in the company's ability to meet its operating requirements and strategic objectives, supported by its diverse portfolio, strong live services, and digital delivery model.

    Aug 7, 2020
  20. 2020-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2019

    Electronic Arts Inc. (EA) reported strong financial performance for the third quarter of fiscal year 2020, ending December 31, 2019. Total net revenue increased by 24% year-over-year to $1.59 billion, driven by robust sales in both product and service categories. The company saw significant growth in its digital segment, with digital net revenue rising 24% to $1.12 billion, primarily fueled by live services, including extra content sales for popular franchises like FIFA Ultimate Team and Apex Legends, and strong full-game downloads from new releases such as Star Wars Jedi: Fallen Order. Profitability also saw a considerable boost, with operating income up 49% year-over-year to $361 million, leading to a net income of $346 million, or $1.18 per diluted share. The company's operational efficiency is highlighted by a stable gross margin and effective management of operating expenses, despite an increase in R&D spending. EA also generated strong operating cash flow of $1.104 billion for the nine-month period, underscoring its healthy financial position and ability to fund its operations and strategic initiatives, including ongoing share repurchases.

    Feb 4, 2020
  21. 2020-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2019

    Electronic Arts Inc. (EA) reported solid financial results for the quarter and six months ended September 30, 2019. Total net revenue increased by 5% year-over-year for the quarter, driven by a strong performance in Service and Other revenue, which grew 18%. This growth was primarily fueled by the success of live services and digital downloads, reflecting EA's ongoing digital transformation. The company also benefited from a significant one-time income tax benefit of $630 million related to a Swiss tax rate change, which substantially boosted net income and diluted earnings per share for the period. Operationally, EA continues to see a strong shift towards digital revenue, which now comprises a larger portion of total net revenue. The company demonstrated robust cash flow from operations, which improved significantly compared to the prior year period. EA also continued its share repurchase program, indicating confidence in its financial position and commitment to returning value to shareholders. Despite a decrease in product revenue, likely due to the timing of major releases, the overall financial health appears strong, supported by recurring revenue streams and strategic investments in its digital offerings.

    Nov 6, 2019
  22. 2020-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2019

    Electronic Arts Inc. (EA) reported strong performance for the first quarter of fiscal year 2020, ending June 30, 2019. Total net revenue increased by 6% year-over-year to $1.209 billion, primarily driven by a significant 12% increase in 'Service and other' revenue, which reached $1.043 billion. This growth was substantially fueled by strong performance in live services, particularly from titles like Apex Legends and The Sims 4, showcasing the company's successful shift towards recurring revenue models. Despite a slight decrease in 'Product' revenue, the overall increase in net revenue and a 3.4 percentage point improvement in gross margin to 84.5% led to a 38% surge in operating income to $415 million. Net income more than quadrupled year-over-year to $1.421 billion, resulting in a diluted EPS of $4.75. The company also demonstrated healthy operating cash flow of $158 million and maintained a robust cash position of $5.187 billion in cash and short-term investments. EA continued its capital return program by repurchasing $305 million of its common stock.

    Aug 6, 2019
  23. 2019-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2018

    Electronic Arts Inc. (EA) reported solid financial results for the third quarter and first nine months of fiscal year 2019, ending December 31, 2018. A significant driver of this performance was the adoption of the new revenue recognition standard (ASC 606), which, while complex, resulted in a notable increase in reported net revenue and net income compared to the old standard. The company demonstrated strong revenue growth, particularly in digital net revenue and live services, indicating a successful shift towards its digital transformation strategy. Total net revenue for the quarter reached $1.289 billion, up 11% year-over-year, driven by robust performance in franchises like FIFA and The Sims. The company maintained strong profitability with net income of $262 million. EA continued its aggressive share repurchase program, demonstrating a commitment to returning capital to shareholders. Looking ahead, the company is well-positioned with a strong cash position and a clear focus on its digital and live services strategy.

    Feb 6, 2019
  24. 2019-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2018

    Electronic Arts Inc. (EA) reported strong financial results for the fiscal second quarter ended September 30, 2018, driven by a significant year-over-year increase in total net revenue and gross margin. This growth was largely attributed to the successful adoption of the new revenue recognition standard (ASC 606), which accelerated revenue recognition, and strong performance in live services and digital net revenue. Despite a decrease in cash and cash equivalents compared to the prior fiscal year-end, the company maintained a healthy liquidity position with substantial cash, cash equivalents, and short-term investments. EA also continued its capital return program through significant stock repurchases. Management expressed confidence in the company's ability to meet its financial obligations and pursue growth opportunities. Investors should note the impact of the new revenue standard on year-over-year comparisons and the ongoing strategic focus on digital and live services.

    Nov 6, 2018
  25. 2019-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2018

    Electronic Arts Inc. (EA) reported its financial results for the fiscal quarter ended June 30, 2018, showing a notable shift in revenue recognition due to the adoption of ASC 606, Revenue From Contracts with Customers. While total net revenue decreased by 22% to $1.137 billion compared to the prior year, a significant portion of this decline is attributed to the new accounting standard which reclassified revenue, particularly shifting revenue from product sales to services and other categories. Digital net revenue, however, showed resilience, growing 9% year-over-year to $957 million, indicating continued strength in the digital segment. Despite the revenue decline under the new standard, the company's operational performance, when considered under the old revenue standard, indicated a much smaller year-over-year decrease of 2%. This highlights the impact of accounting changes rather than a fundamental decline in sales. Profitability also saw a significant decrease, with net income falling to $293 million from $644 million in the prior year, largely influenced by the revenue recognition changes. The company continues to return capital to shareholders through an active stock repurchase program, highlighting a commitment to shareholder value.

    Aug 8, 2018
  26. 2018-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2017

    Electronic Arts Inc. (EA) reported its third-quarter results for fiscal year 2018, ending December 31, 2017. Total net revenue saw a slight increase of 1% year-over-year to $1.16 billion, driven by strong performance in "Service and other" revenue, which grew 23% to $613 million. This growth was primarily fueled by live services, particularly the "Ultimate Team" modes in EA's sports titles, and mobile games. Digital net revenue increased by 14% to $780 million, reflecting a continued shift towards digital sales channels. Despite the revenue growth, EA reported a net loss of $186 million for the quarter, largely impacted by a provisional $176 million charge related to the recently enacted U.S. Tax Cuts and Jobs Act. Excluding this tax impact, the company would have reported a net income. The company also announced the acquisition of Respawn Entertainment for $273 million and continued its share repurchase program, highlighting ongoing investments in growth and return of capital to shareholders.

    Feb 6, 2018
  27. 2018-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2017

    Electronic Arts Inc. (EA) reported total net revenue of $959 million for the third quarter of fiscal year 2018, a 7% increase year-over-year, driven by strong performance in its digital segment. Digital net revenue saw a significant 22% increase, reaching $689 million, fueled by growth in full game downloads and live services, particularly from popular franchises like FIFA and Battlefield. Despite revenue growth, the company reported a net loss of $22 million for the quarter, compared to a loss of $38 million in the prior year's comparable quarter. Operating expenses increased by 12% year-over-year, impacting profitability. The company ended the quarter with a strong liquidity position, holding $4.355 billion in cash, cash equivalents, and short-term investments. EA also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.

    Nov 7, 2017
  28. 2018-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2017

    Electronic Arts Inc. (EA) reported strong financial results for the quarter ending June 30, 2017, with total net revenue of $1.45 billion, a 14% increase year-over-year. This growth was primarily driven by a significant 28% surge in digital net revenue, reaching $879 million, indicating the company's successful transition to digital distribution and live services. Profitability remained robust, with net income of $644 million and diluted earnings per share of $2.06. The company also maintained a healthy liquidity position, with total cash, cash equivalents, and short-term investments amounting to $4.47 billion. EA continues to actively manage its capital structure through share repurchases, having completed $150 million in buybacks during the quarter under its new $1.2 billion authorization.

    Aug 8, 2017
  29. 2017-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2016

    Electronic Arts Inc. (EA) reported its third-quarter results for the fiscal year ending December 31, 2016, showing a modest year-over-year increase in total net revenue to $1.149 billion, a 7% rise. This growth was primarily driven by a significant 20% increase in digital revenue, reaching $685 million, reflecting the ongoing shift in the company's business model towards digital distribution and services. Despite the revenue growth, the company reported a net loss of $1 million for the quarter, with diluted loss per share of $0.00, a slight improvement from the previous year's net loss of $45 million. Key financial highlights include a substantial increase in short-term investments, bolstering the company's liquidity position, and continued execution of its share repurchase program. EA's management emphasized the ongoing digital transformation of its business, highlighting the importance of recurring revenue streams and the growth in mobile and PC free-to-download games. While international revenue saw a slight decline on a reported basis, constant currency figures suggest a more resilient performance. The company maintains a strong cash position, with total cash, cash equivalents, and short-term investments amounting to $4.219 billion.

    Feb 7, 2017
  30. 2017-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2016

    Electronic Arts Inc. (EA) reported its fiscal second quarter and first half results for the period ending September 30, 2016. The company saw a 10% year-over-year increase in total net revenue to $898 million for the quarter, driven by a strong performance in 'Service and other' revenue, which grew 25%. Digital net revenue also showed robust growth, increasing 13% to $566 million for the quarter. Despite top-line growth, EA reported a net loss of $38 million for the quarter, compared to a net loss of $140 million in the prior year period. The first half of the fiscal year, however, resulted in a net income of $402 million, a significant improvement from $302 million in the prior year. The company's liquidity position remains strong, with total cash, cash equivalents, and short-term investments at $3.27 billion as of September 30, 2016.

    Nov 8, 2016
  31. 2017-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2016

    Electronic Arts Inc. (EA) reported solid financial results for the quarter ended June 29, 2016. Total net revenue increased by 6% year-over-year to $1.271 billion, driven by a significant 28% increase in service and other revenue, which was partially offset by a 8% decrease in product revenue. Digital revenue showed strong growth, up 11% year-over-year to $689 million, indicating the company's successful transition towards digital distribution. Net income for the quarter was $440 million, resulting in diluted earnings per share of $1.40. The company maintained a strong balance sheet with total cash, cash equivalents, and short-term investments of $3.427 billion. EA also continued its commitment to returning capital to shareholders, repurchasing approximately $129 million of common stock during the quarter under its existing share repurchase program.

    Aug 9, 2016
  32. 2016-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2015

    Electronic Arts Inc. (EA) reported its financial results for the third quarter and first nine months of fiscal year 2016, ending December 31, 2015. While the company experienced a net loss of $45 million for the quarter, this was a significant improvement compared to the net income of $142 million in the prior year's comparable quarter. This shift was primarily driven by a decrease in gross profit, partially offset by reduced operating expenses. Total net revenue for the quarter was $1.07 billion, a 5% decrease year-over-year, impacted by a substantial increase in deferred net revenue related to online-enabled games. However, when adjusting for this revenue deferral, the company saw a strong 26% increase in underlying sales. The company continues to invest in its digital transformation, with digital revenue growing, and is actively repurchasing shares under a new $1 billion program. The near-term outlook is focused on managing the upcoming maturity of its convertible senior notes.

    Feb 8, 2016
  33. 2016-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2015

    Electronic Arts Inc. (EA) reported a net loss of $140 million, or $0.45 per diluted share, for the three months ended September 30, 2015, a significant shift from the $3 million net income, or $0.01 per diluted share, reported in the same period last year. This decline was primarily driven by a $157 million decrease in gross profit, despite a $14 million reduction in operating expenses. Total net revenue for the quarter fell by 18% to $815 million compared to the prior year's $990 million, largely attributed to declines in product revenue from franchises like Battlefield, Need for Speed, and FIFA, partially offset by gains in Dragon Age: Inquisition and The Sims. For the first six months of fiscal year 2016, EA reported a net income of $302 million, a decrease from $338 million in the comparable period of the prior year. Net revenue for the six-month period also declined by 8% to $2,018 million. The company continues to emphasize its digital transformation, with digital revenue showing growth, but this was not enough to offset the overall revenue decline. Significant upcoming maturities on convertible notes and ongoing stock repurchase programs are key financial activities to monitor.

    Nov 10, 2015
  34. 2016-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2015

    Electronic Arts Inc. (EA) reported solid financial results for the fiscal quarter ending June 30, 2015, demonstrating resilience in a dynamic industry. The company's total net revenue for the quarter was $1.203 billion, a slight decrease of 1% year-over-year, largely influenced by a significant decrease in packaged goods sales, which was partially offset by growth in digital revenue streams. Net income saw a substantial increase to $442 million from $335 million in the prior year's quarter, reflecting improved gross profit and efficient cost management. Key drivers for performance included strong performance from franchises like FIFA, Madden NFL, and Dragon Age: Inquisition. The company continues its strategic shift towards digital distribution, with digital revenue showing a healthy 10% increase. EA also actively returned capital to shareholders through a robust stock repurchase program, demonstrating confidence in its financial health and future prospects. Management expressed optimism about continued growth, particularly in digital channels, despite ongoing console system transitions and foreign currency headwinds.

    Aug 11, 2015
  35. 2015-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2014

    Electronic Arts Inc. (EA) reported a strong third quarter for fiscal year 2015, with total net revenue increasing by 39% year-over-year to $1.126 billion. This growth was primarily driven by the success of its FIFA and Madden franchises, as well as strong performance in digital sales, which increased by 34% to $693 million. The company also saw a significant improvement in profitability, reporting a net income of $142 million, a substantial turnaround from a net loss of $308 million in the same quarter last year. This improvement is attributed to increased net revenue, decreased cost of revenue, and lower operating expenses. Key financial highlights include a healthy increase in cash and cash equivalents to $2.166 billion, up from $1.782 billion at the start of the fiscal year, reflecting robust operating cash flow. The company's strategic shift towards digital content and services continues to show positive results, with digital revenue playing an increasingly important role. Management expressed confidence in the company's liquidity and ability to meet its operational needs and strategic objectives.

    Feb 4, 2015
  36. 2015-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2014

    Electronic Arts Inc. (EA) reported a significant turnaround in its financial performance for the six months ended September 30, 2014, compared to the same period in the prior year. The company achieved a net income of $338 million, a substantial improvement from a net loss of $51 million in the prior year. This positive shift was driven by a robust increase in net revenue, which grew by 34% to $2.204 billion, bolstered by strong performance in both its product and service segments, with key franchises like FIFA and Battlefield leading the charge. The company also highlighted its ongoing digital transformation, with digital revenue showing strong growth. EA demonstrated a commitment to shareholder returns through a substantial stock repurchase program, buying back $145 million worth of shares during the six-month period. The balance sheet remains solid, with total assets increasing to $6.031 billion and a healthy cash position of $1.624 billion. The company appears to be successfully navigating the console transition and focusing on its core intellectual properties, positioning itself for continued growth in the evolving gaming landscape.

    Nov 4, 2014
  37. 2015-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2014

    Electronic Arts Inc. (EA) reported strong financial performance for the first quarter of fiscal year 2015, ending June 30, 2014. Net revenue increased by 28% to $1.214 billion compared to the same period last year, driven by robust sales of key franchises like FIFA, Battlefield, and Madden NFL. This growth was further bolstered by a change in accounting estimate for revenue recognition related to physical software sales, extending the recognition period to nine months, which positively impacted reported revenue and net income. The company also demonstrated improved profitability, with net income rising to $335 million from $222 million year-over-year, and diluted earnings per share increasing to $1.04 from $0.71. The company's strategic shift towards digital revenue streams and new business models like free-to-play and micro-transactions continues to gain traction, with digital revenue showing significant growth. From a balance sheet perspective, EA maintained a healthy liquidity position, although cash and cash equivalents saw a decrease due to strategic investments and share repurchases. The company continues to invest in its next-generation console offerings while managing the transition from older platforms. The ongoing legal proceedings, particularly related to college athlete likenesses, were addressed with a significant settlement accrual, while a shareholder class action lawsuit remains pending. Overall, the quarter reflects positive operational execution and a continued focus on adapting to the evolving gaming landscape.

    Aug 5, 2014
  38. 2014-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2013

    Electronic Arts Inc. (EA) reported its financial results for the third quarter and the first nine months of fiscal year 2014, ending December 31, 2013. The company experienced a net loss of $308 million for the quarter, a significant increase compared to the $45 million loss in the prior year's quarter. This widening loss was primarily attributed to a $202 million decrease in gross profit, influenced by accounting for physical game sales over a longer period and a higher proportion of deferred revenue. Additionally, a favorable $45 million reversal of acquisition-related contingent consideration in the prior year's quarter did not recur. Revenue-wise, total net revenue for the quarter decreased by 12% to $808 million, impacted by accounting deferrals. However, excluding these deferrals, net revenue would have shown a substantial increase of 33%. Key drivers for the quarter's revenue included strong performances from FIFA 2014, Battlefield 4, and Madden NFL 25. The company also noted the significant industry shift towards next-generation consoles, with adoption being faster than anticipated but not yet fully offsetting the decline in current-generation console game sales.

    Feb 4, 2014
  39. 2014-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2013

    Electronic Arts Inc. (EA) reported its financial results for the quarter and six months ended September 29, 2013. The company experienced a decrease in net revenue for the three-month period compared to the prior year, primarily due to a decline in product revenue, although service and other revenue saw a significant increase. Net loss improved year-over-year for the quarter, driven by reduced operating expenses, including lower marketing and sales costs and a decrease in acquisition-related contingent consideration. The company is navigating the transition to new console platforms and continues to invest in digital content distribution and mobile gaming, which are key growth areas. EA's liquidity remains a focus, with a decrease in cash and cash equivalents and short-term investments. The company highlighted efforts to manage its cost structure and strategic focus on fewer, higher-quality titles. Significant legal matters, particularly concerning college athlete likenesses, have resulted in an accrual for a settlement. The company reiterates its belief that its current cash, investments, and financing facilities are sufficient to meet its operating requirements for the next 12 months.

    Nov 5, 2013
  40. 2014-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2013

    Electronic Arts Inc. (EA) reported its financial results for the first quarter of fiscal year 2014, ending June 29, 2013. The company generated total net revenue of $949 million, a slight decrease of 1% compared to the same period last year. Despite the minor revenue dip, net income saw a notable increase to $222 million, up from $201 million in the prior year's quarter, driven by improved gross profit and reduced operating expenses. Diluted earnings per share also rose to $0.71 from $0.63. The company highlighted a significant increase in "service and other" revenue, which grew by 60% year-over-year, indicating a successful shift towards digital content and services. Conversely, "product revenue" experienced a decline of 23%. Geographically, international revenue showed a strong increase of 10%, now representing 58% of total net revenue, while North American revenue declined by 12%. EA's balance sheet shows a decrease in cash and cash equivalents to $1,056 million from $1,292 million at the end of the previous fiscal year, while short-term investments also saw a slight reduction. The company's financial health appears stable, with sufficient liquidity to meet operational needs for the next 12 months.

    Aug 2, 2013
  41. 2013-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2012

    Electronic Arts Inc. (EA) reported its third-quarter fiscal year 2013 results for the period ending December 30, 2012. The company experienced a net revenue of $922 million, a decrease of 13% compared to the same period in the prior year. This decline was primarily attributed to lower sales from major franchises like Battlefield and The Sims, with fewer new title releases compared to the prior year's strong performance. Despite the revenue decrease, EA managed to reduce its net loss to $45 million from $205 million in the prior year's quarter, primarily due to a significant reduction in operating expenses and a gain from the sale of strategic investments. The company continues to emphasize its shift towards digital content and services, with growth in 'Service and Other' revenue, driven by titles like Star Wars: The Old Republic and FIFA Ultimate Team. While packaged goods revenue declined, the digital segment showed resilience. EA also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. Overall, the quarter reflects EA's ongoing transition in a dynamic gaming market, with challenges in traditional sales offset by progress in digital offerings.

    Feb 5, 2013
  42. 2013-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2012

    Electronic Arts Inc. (EA) reported its third-quarter results for the period ending September 29, 2012. The company experienced a net loss of $381 million for the quarter, an increase from the $340 million net loss in the same period last year, leading to a diluted loss per share of $1.21 compared to $1.03 in the prior year. Total net revenue remained relatively flat at $711 million, a slight decrease of 1% year-over-year, primarily impacted by revenue deferral accounting for online-enabled content. However, excluding this deferral, net revenue would have shown a modest increase. The company's shift towards digital content and services continues, with service and other revenue showing significant growth, up 87% year-over-year, driven by titles like Star Wars: The Old Republic and FIFA Ultimate Team. This growth in digital services, which typically have higher margins, is a key strategic focus for EA. Despite the overall net loss, the company maintained a healthy cash position and initiated a new share repurchase program, indicating confidence in its financial stability and future prospects.

    Nov 6, 2012
  43. 2013-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2012

    Electronic Arts Inc. (EA) reported its first-quarter results for fiscal year 2013, ending June 30, 2012. The company generated total net revenue of $955 million, a slight decrease of 4% compared to the same period in the prior year. While product revenue saw a significant decline of 21%, this was largely offset by a substantial 141% increase in service and other revenue, driven by strong performance in digital content and services, including subscription-based offerings. Net income for the quarter was $201 million, down from $221 million in the prior year, resulting in diluted EPS of $0.63, a decrease from $0.66. This decline was attributed to increased personnel costs, a decrease in gross profit from lower net revenue, and higher restructuring charges, partially offset by a reduction in acquisition-related contingent consideration. The company continues to focus on its digital transformation strategy, with digital revenue showing robust growth, indicating a successful shift in its business model. EA also announced a new $500 million stock repurchase program, signaling confidence in its financial position and commitment to returning value to shareholders.

    Aug 3, 2012
  44. 2012-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2011

    Electronic Arts' 10-Q for the quarter ended December 31, 2011 shows a seasonal December quarter with net revenue of $1,061 million (up roughly 1% year over year) and a net loss of $205 million, narrower than the $322 million loss a year earlier. The improvement was driven mainly by a $154 million drop in restructuring charges and lower cost of goods sold as a share of revenue. Management's non-GAAP measure, net revenue before revenue deferral, rose 17% to $1,651 million, which signals that underlying sales grew strongly. The gap between the two figures reflects $590 million of additional deferred revenue on online-enabled packaged goods and digital content, which is recognized over future periods rather than in this quarter. For the nine months, net revenue was $2,775 million (up 11%) and the net loss was $324 million. Operating cash flow was negative $10 million, down $77 million year over year, largely because of higher accounts payable settlements. Acquisitions drove most of the $689 million cash used in investing, led by PopCap Games for $645 million in cash plus $87 million in stock. Goodwill rose to $1,716 million and acquisition-related intangibles to $402 million. Cash, cash equivalents and short-term investments fell to $1,648 million from $2,076 million. Management also issued $632.5 million of 0.75% convertible senior notes due 2016, bought a $107 million convertible note hedge, and sold warrants for $65 million. It repurchased $230 million of stock during the nine months under a $600 million authorization. Key risks for investors include the hit-driven nature of the business, dependence on Sony, Microsoft and Nintendo platforms and their fee structures, concentration of sales among a few retailers (GameStop was about 15% of revenue), a cyclical hardware cycle, and a pending Pecover antitrust class action with trial set for October 2012. The company also carries a full valuation allowance against most U.S. deferred tax assets, and it has a $672 million potential earn-out tied to acquisitions.

    Feb 7, 2012
  45. 2012-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2011

    Electronic Arts' 10-Q for the quarter ended September 30, 2011 shows a quarter with a sharp widening of the net loss, driven mostly by operating expenses and deferred revenue accounting rather than weak underlying demand. Net revenue rose 13% to $715 million, but reported net loss grew to $340 million ($1.03 per share) from $201 million a year earlier. Management attributes much of the revenue increase to recognition of revenue deferred in the prior quarter, and notes that $319 million of additional deferred net revenue from online-enabled packaged goods reduced reported revenue this quarter. Excluding the change in deferrals, revenue would have risen roughly $150 million. Operating expenses rose on marketing (up 28%), R&D (up 15%) and a $17 million acquisition-related contingent consideration charge, while a $7 million reversal of stock compensation and a $10 million Chertsey facility gain partly offset. The balance sheet and cash flow picture weakened over the six months. Cash and short-term investments fell to $1.5 billion from $2.2 billion, and operating cash outflow reached $485 million, up $203 million, due to higher royalty payments and year-end payables settlement. The company spent $645 million in cash (plus $87 million in stock) to acquire PopCap Games, which added $565 million of goodwill and $302 million of finite-lived intangibles, and it issued $632.5 million of 0.75% convertible notes due 2016 with a hedge and warrant structure. Total liabilities rose to $2.9 billion, and the company repurchased about $189 million of stock under its $600 million program. Investors should weigh the strong top-line growth from franchises such as FIFA, Crysis 2 and Portal 2 against the widening losses, cash burn, and significant contingent consideration obligations (up to $660 million through March 2014). Management's fiscal 2012 guidance calls for 22 primary titles, with the December holiday quarter remaining the key test of the digital strategy.

    Nov 8, 2011
  46. 2012-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2011

    Electronic Arts' first-quarter fiscal 2012 10-Q (quarter ended June 30, 2011) shows a strong top-line and profit rebound driven largely by accounting, not just demand. Net revenue rose 23% to $999 million from $815 million, and net income more than doubled to $221 million ($0.66 diluted EPS vs. $0.29). Management attributes much of the gain to a $475 million drawdown of deferred net revenue on online-enabled packaged goods, which was recognized as revenue in the period. Excluding revenue deferral, net revenue before deferral actually fell about 3% to $524 million, driven by the lapping of FIFA World Cup and Skate franchises, a point investors should weigh when judging underlying momentum. Cash generation was weak in the quarter. Operating cash flow was negative $274 million (versus negative $148 million a year earlier), primarily due to royalty payments and the unwinding of deferred revenue, which does not generate cash. Cash, cash equivalents and short-term investments plus marketable equity securities totaled $1.85 billion, down from $2.24 billion at March 31, 2011. Management also repurchased about $91 million of stock during the quarter under a $600 million, 18-month buyback program. Subsequent events are significant. EA agreed to acquire PopCap Games for roughly $650 million in cash, about $100 million in stock, and up to $50 million in retention equity, plus up to $550 million in performance-based contingent consideration. It also issued $632.5 million of 0.75% convertible senior notes due 2016 (conversion price about $31.74, a 35% premium to the July 14 close of $23.51), partly hedged with call options and offset by warrants struck at $41.14. These moves increase leverage and potential dilution, though the hedges are designed to limit share dilution below the warrant strike price.

    Aug 9, 2011
  47. 2011-Q3

    Electronic Arts Quarterly Report for Q3 Ended Dec 31, 2010

    Electronic Arts' third-quarter fiscal 2011 10-Q (quarter ended December 31, 2010) shows a sharp swing to losses. Net loss widened to $322 million ($0.97 per share) from $82 million a year earlier, on net revenue of $1,053 million, down 15% from $1,243 million. The decline was driven by lower sales of franchises such as Left 4 Dead, Rock Band and Need for Speed in the prior-year comparison, partly offset by Medal of Honor and Harry Potter. Two items drove much of the loss: $154 million in restructuring and other charges tied to a fiscal 2011 plan to renegotiate licensing and developer agreements in the packaged goods business, and a $995 million revenue deferral on online-enabled packaged goods, which pushed reported revenue well below the $1,410 million achieved before deferral. Management says the deferral is a timing effect that will be recognized over future periods, not a loss of revenue. On a nine-month basis, net loss narrowed to $427 million from $707 million, and operating cash flow turned positive at $67 million versus a $101 million outflow, reflecting cost reductions and lower marketing spend. Liquidity remains solid, with cash, short-term investments and marketable equity securities totaling $1,971 million, roughly 42% of total assets. Total liabilities rose to $2,369 million, largely from deferred net revenue of $1,100 million and a $108 million restructuring accrual, and stockholders' equity fell to $2,358 million from $2,729 million. Subsequent to quarter end, the board authorized a $600 million share repurchase program over 18 months. Key risks include a Canadian Revenue Agency reassessment of $44 million (excluding interest and penalties), continued dependence on hardware platform holders such as Sony, Microsoft and Nintendo, a concentration of sales among a few retailers (GameStop and Wal-Mart together account for about 25% of nine-month revenue), and uncertainty about how long the current console cycle will last. Investors should watch whether the restructuring plan improves packaged goods margins and whether the deferred revenue balance converts into recognized revenue as expected.

    Feb 7, 2011
  48. 2011-Q2

    Electronic Arts Quarterly Report for Q2 Ended Sep 30, 2010

    Electronic Arts' fiscal Q2 2011 10-Q (quarter ended September 30, 2010) shows a sharp year-over-year revenue decline but a much narrower net loss. Net revenue for the three months fell 20% to $631 million from $788 million, driven by the absence of major releases such as Rock Band, The Sims, and Fight Night compared with the prior year. Net revenue before revenue deferral fell 23% to $884 million. For the six months, net revenue was essentially flat at $1,446 million (up 1%), though revenue before deferral dropped 28%. The large swing in deferred revenue, which rose sharply as online-enabled packaged goods shipped, muted reported results and makes the underlying sales trend harder to read. Profitability improved markedly. Net loss narrowed to $201 million ($0.61 per share) from $391 million ($1.21 per share) in the prior-year quarter. The improvement came mainly from a $230 million drop in cost of goods sold, a $39 million cut in R&D, a $28 million gain on the sale of the Ubisoft stake, and a $28 million reduction in Playfish contingent consideration. Operating loss narrowed to $252 million from $417 million. Cash used in operations improved to $282 million from $322 million, though cash, equivalents, and short-term investments, plus marketable equity securities, fell to $1,657 million from $1,996 million, partly from the Ubisoft sale proceeds being offset by operating burn and cash used in investing. Management also disclosed a new fiscal 2011 restructuring plan approved October 29, 2010, to renegotiate key licensing and development agreements for the packaged goods business. It expects up to about $180 million in charges in the second half of fiscal 2011, largely from accelerated payments under existing contracts. Investors should weigh that near-term cash and charge burden against the stated goal of improving long-term packaged goods profitability. Remaining risks include concentration among large retailers (GameStop about 17% and Wal-Mart about 10% of six-month revenue), the console cycle, used-game sales, and a valuation allowance against most U.S. deferred tax assets.

    Nov 8, 2010
  49. 2011-Q1

    Electronic Arts Quarterly Report for Q1 Ended Jun 30, 2010

    Electronic Arts' first-quarter fiscal 2011 results (three months ended June 30, 2010) showed a swing back to profitability, with net income of $96 million, or $0.29 per diluted share, compared with a net loss of $234 million, or $0.72 per share, a year earlier. Net revenue rose 27% to $815 million from $644 million. However, the headline improvement is heavily flattered by accounting: EA defers revenue on online-enabled packaged goods and digital content, and the deferred balance fell by $276 million this quarter, adding that amount to reported revenue. Excluding deferral effects, net revenue before revenue deferral fell 34% to $539 million from $816 million, reflecting a weaker catalog and title slate versus the prior year's launch-heavy quarter. Operating income was $98 million versus an operating loss of $245 million, driven by lower cost of goods sold, research and development, and marketing expenses following the fiscal 2010 restructuring. Cash flow and liquidity were also better but remain a watch item. Operating cash use narrowed to $148 million from $328 million, aided by a sharp drop in receivables as first-quarter titles were released earlier and sales volumes were lower. Cash, cash equivalents, short-term investments and marketable equity securities totaled $1.73 billion, down from $2.00 billion at March 31, 2010. Management expects receivables to rebuild in the September quarter ahead of the holiday season, so the cash position will be seasonal. Subsequent to quarter end, EA sold its roughly 19.9% stake in Ubisoft for about $121 million, which will provide a further cash inflow. For investors, the key questions are whether EA can sustain profitability without deferral-driven flatters and whether its portfolio of franchises (Battlefield, FIFA, Dragon Age) can offset declines in The Sims, Fight Night and Tiger Woods titles. Management continues to highlight risks tied to the late-cycle console market, growth in used games, customer concentration (GameStop and Wal-Mart together accounted for 25% of revenue), and dependence on hardware platform holders such as Sony, Microsoft and Nintendo.

    Aug 9, 2010
  50. 2010-Q2-A

    Electronic Arts Quarterly Report (Amendment) for Q2 Ended Sep 30, 2009

    This filing is Amendment No. 1 (Form 10-Q/A) to Electronic Arts' quarterly report for the period ended September 30, 2009, which was originally filed on November 10, 2009. It is an exhibit-only amendment made in response to SEC staff comments on the company's confidential treatment request for portions of Exhibits 10.1 through 10.6. It contains no financial statements, MD&A, or revised disclosures, and the company states that no revisions were made to its financial statements. The amendment re-files Exhibits 10.1 (Sony PlayStation 3 Licensed Publisher Agreement, North America), 10.3 (Sony PlayStation 3 Licensed Publisher Agreement, Europe), and 10.6 (Xbox 360 Publisher License Agreement with Microsoft). It also includes new Section 302 certifications from the CEO and CFO, as required by Rule 12b-15. Exhibits 2.1, 10.2, 10.4, and 10.5 are referenced but were not re-filed, and the amendment does not update other exhibits. For investors, the filing is primarily of administrative and legal significance. It signals that certain terms of EA's major console platform licensing agreements remain partially redacted from public disclosure. The underlying financial results for the quarter must be obtained from the original 10-Q filed November 10, 2009.

    Apr 30, 2010