01—Abstract
Summary
Summary of the 10-Q filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona. 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 millionb, 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 billionc for the nine-month period, and paid $151 million in cash dividends.
02—Key points
Key Highlights
- Net revenue for the third quarter declined 3% year-over-year to $1.88 billion.
- Live services and other net revenue decreased 3% year-over-year to $1.28 billion.
- Gross margin improved to 75.8%, up from 72.8% in the prior year's quarter.
- Operating income increased 3% year-over-year to $377 million.
- Net income for the quarter was $293 million, with diluted EPS of $1.11.
- The company repurchased approximately $1.13 billion of its common stock during the first nine months of the fiscal year.
- Net cash provided by operating activities for the nine-month period decreased by 7% compared to the prior year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Electronic Arts kept $0.16.
- Revenue$1.88B100.0%
- Cost of revenue−$456.0M24.2%
- Gross profit$1.43B75.8%
- Operating costs−$1.05B55.8%
- Operating income$377.0M20.0%
- Interest, other & tax−$84.0M4.5%
- Net income$293.0M15.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed February 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.88B$1.95B | −3.2% |
| Cost of Revenue | $456.00M$529.00M | −13.8% |
| Gross Profit | $1.43B$1.42B | +0.8% |
| Operating Expenses | $1.05B$1.05B | −0.1% |
| Operating Income | $377.00M$365.00M | +3.3% |
| Interest Expense | $14.00M$15.00M | −6.7% |
| Net Income | $293.00M$290.00M | +1.0% |
| EPS (Basic) | $1.12$1.08 | +3.7% |
| EPS (Diluted) | $1.11$1.07 | +3.7% |
| Shares Outstanding (Basic) | 262.00M269.00M | −2.6% |
| Shares Outstanding (Diluted) | 265.00M271.00M | −2.2% |
05—Questions
Frequently Asked Questions
What was Electronic Arts' total net revenue for the third quarter of fiscal year 2025?
Electronic Arts reported total net revenue of $1.883 billion for the three months ended December 31, 2024, a decrease of 3% compared to the same period in the prior year.
How did the company's live services segment perform in the latest quarter?
Live services and other net revenue for the quarter ended December 31, 2024, was $1.284 billion, a decrease of 3% year-over-year. This segment remains a material contributor to the company's overall revenue.
What is the company's cash position as of December 31, 2024?
As of December 31, 2024, Electronic Arts held $2.776 billion in cash and cash equivalents and $379 million in short-term investments, totaling $3.155 billion.
What is the outlook for Electronic Arts' future revenue, considering the recent performance?
While net revenue saw a slight decline in the current quarter and year-to-date, the company continues to focus on its live services and digital delivery, which are expected to drive future growth. However, competitive pressures and consumer buying patterns are factors that could impact future revenue linearity. The company is also actively returning capital to shareholders through share repurchases.
06—Continue