Summary
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.
Financial Highlights
48 data points| Revenue | $1.45B |
| Cost of Revenue | $154.00M |
| Gross Profit | $1.29B |
| Operating Expenses | $552.00M |
| Operating Income | $743.00M |
| Interest Expense | -$11.00M |
| Net Income | $644.00M |
| EPS (Basic) | $2.08 |
| EPS (Diluted) | $2.06 |
| Shares Outstanding (Basic) | 309.00M |
| Shares Outstanding (Diluted) | 313.00M |
Key Highlights
- 1Total net revenue increased by 14% year-over-year to $1.45 billion.
- 2Digital net revenue saw a substantial 28% increase year-over-year to $879 million.
- 3Net income rose significantly to $644 million, with diluted EPS of $2.06.
- 4Gross margin improved to 89.4%, up 3.5 percentage points year-over-year.
- 5The company generated $176 million in cash from operating activities, a significant improvement from the prior year's -$118 million.
- 6EA announced a new share repurchase program authorizing up to $1.2 billion of common stock, demonstrating commitment to returning capital to shareholders.
- 7Total cash, cash equivalents, and short-term investments stood strong at $4.47 billion.