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10-QPeriod: Q3 FY2025

ELECTRONIC ARTS INC. Quarterly Report for Q3 Ended Dec 31, 2024

Filed February 5, 2025For Securities:EA

Summary

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.

Financial Highlights

50 data points
Beta

Revenue

$1.88B

0.8% Gross Margin

Net Income

$293.00M

0.2% Net Margin

EPS (Diluted)

$1.11

Total Assets

$13.45B

Cash & Equivalents

$2.78B

Free Cash Flow

$1.18B

Financial Statements
Beta
Revenue$1.88B
Cost of Revenue$456.00M
Gross Profit$1.43B
Operating Expenses$1.05B
Operating Income$377.00M
Interest Expense$14.00M
Net Income$293.00M
EPS (Basic)$1.12
EPS (Diluted)$1.11
Shares Outstanding (Basic)262.00M
Shares Outstanding (Diluted)265.00M

Key Highlights

  • 1Net revenue for the third quarter declined 3% year-over-year to $1.88 billion.
  • 2Live services and other net revenue decreased 3% year-over-year to $1.28 billion.
  • 3Gross margin improved to 75.8%, up from 72.8% in the prior year's quarter.
  • 4Operating income increased 3% year-over-year to $377 million.
  • 5Net income for the quarter was $293 million, with diluted EPS of $1.11.
  • 6The company repurchased approximately $1.13 billion of its common stock during the first nine months of the fiscal year.
  • 7Net cash provided by operating activities for the nine-month period decreased by 7% compared to the prior year.

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