10-QPeriod: Q1 FY2024

ELECTRONIC ARTS INC. Quarterly Report for Q1 Ended Jun 30, 2023

Filed August 8, 2023For Securities:EA

Summary

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.

Financial Highlights

48 data points
Beta

Revenue

$1.92B

80.9% Gross Margin

Net Income

$402.00M

20.9% Net Margin

EPS (Diluted)

$1.47

Total Assets

$13.08B

Cash & Equivalents

$2.26B

Free Cash Flow

$359.00M

Financial Statements
Beta
Revenue$1.92B
Cost of Revenue$368.00M
Gross Profit$1.56B
Operating Expenses$1.01B
Operating Income$542.00M
Interest Expense$15.00M
Net Income$402.00M
EPS (Basic)$1.48
EPS (Diluted)$1.47
Shares Outstanding (Basic)272.00M
Shares Outstanding (Diluted)274.00M

Key Highlights

  • 1Net revenue increased 9% year-over-year to $1.924 billion.
  • 2Live services and other net revenue grew 4% to $1.481 billion, showing continued strength in ongoing game content and subscriptions.
  • 3Full game net revenue saw a significant increase of 30% to $443 million, driven by new releases like "Star Wars Jedi: Survivor" and strong performance from "FIFA 23".
  • 4Operating income grew by a strong 23% year-over-year to $542 million.
  • 5Net income reached $402 million, with diluted earnings per share of $1.47.
  • 6Net cash provided by operating activities surged to $359 million, a 560% increase compared to the prior year's quarter.
  • 7The company repurchased $325 million worth of its common stock and paid $52 million in cash dividends.

Frequently Asked Questions

Electronic Arts reported net revenue of $1.924 billion for the first quarter of fiscal year 2024, an increase of 9% compared to the same period in the prior year. This growth was driven by both its Live Services and other segment, which increased by 4% to $1.481 billion, and a substantial 30% increase in Full game net revenue to $443 million, largely due to new game releases and ongoing game performance.

Profitability improved significantly. Operating income increased by 23% year-over-year to $542 million. Net income was $402 million, resulting in diluted earnings per share of $1.47. This improved profitability reflects strong revenue growth and managed operating expenses.

Electronic Arts generated a robust $359 million in net cash provided by operating activities during the first quarter, a significant increase of 560% compared to the prior year's quarter. The company also maintained a healthy liquidity position with $2.602 billion in cash and cash equivalents and short-term investments as of June 30, 2023.

The company actively returned capital to shareholders. During the quarter, EA repurchased $325 million of its common stock and paid $52 million in cash dividends. This demonstrates a commitment to enhancing shareholder value.