How did EA perform in fiscal 2024 overall?

EA grew net revenue 2% to $7.562 billion and net bookings 1% to $7.430 billion for FY24. GAAP net income rose to $1.273 billion from $802 million, and diluted EPS increased to $4.68 from $2.88. Operating cash flow reached a record $2.315 billion, up 49%.

Why did fourth-quarter revenue decline?

Q4 net revenue fell 5% to $1.779 billion, with net bookings down to $1.666 billion from $1.946 billion. Live services and other revenue declined 4% to $1.446 billion, and full game revenue dropped to $333 million from $372 million. The filing does not give a detailed root-cause explanation beyond these figures, so investors should review the earnings call for management's commentary.

What is the new share buyback program and how does it compare to the prior one?

The Audit Committee authorized a $5.0 billion repurchase program running May 9, 2024 to May 9, 2027, replacing the August 2022 authorization, which terminates May 8, 2024. Repurchases can be made in the open market or through privately negotiated transactions, and the company is not obligated to buy any specific amount. EA repurchased $1.300 billion of stock in FY24, so the new authorization gives room for a similar pace over the three-year window.

What is the outlook for fiscal 2025?

Management expects FY25 net revenue of $7.100 to $7.500 billion, net bookings of $7.300 to $7.700 billion, net income of $904 million to $1.085 billion, and diluted EPS of $3.34 to $4.00 on 271 million diluted shares. Operating cash flow is projected at $2.050 to $2.250 billion. Management also expects Q1 FY25 net revenue of $1.575 to $1.675 billion, with a deferred revenue change of about negative $425 million.

Are these results final, and what should investors watch next?

No. The release describes preliminary, unaudited estimates that could differ from the Form 10-K for FY24, which EA has not yet filed and does not intend to update before filing. Investors should watch the Form 10-K, the May 7, 2024 earnings call, and the Investor Day planned for fall 2024, where management said it will discuss long-term strategy and financial framework.

EA 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 7, 2024. Cited figures are marked; the original filing is the authoritative source.

Electronic Arts reported preliminary results for its fourth fiscal quarter and full fiscal year 2024 (ended March 31, 2024).

For FY24, net revenue was $7.562 billion^a, up 2% year-over-year, and net bookings were $7.430 billion, up 1% (3% in constant currency). GAAP net income rose sharply to $1.273 billion from $802 million, and diluted EPS reached $4.68 versus $2.88. Operating cash flow hit a fiscal-year record of $2.315 billion, up 49%, driven by strong cash collection on receivables and lower restructuring activity.

Management highlighted EA SPORTS FC and Madden NFL as key growth drivers, with Madden NFL net bookings up 6% and the global football franchise growing net bookings by high-teens percent. Fourth-quarter results were softer on the top line. Q4 net revenue fell 5% year-over-year to $1.779 billion, and net bookings declined to $1.666 billion^b from $1.946 billion.

Q4 GAAP net income was $182 million^c (diluted EPS $0.67), a sharp improvement from a net loss in the prior-year quarter, though the figure benefited from lower operating expenses and a strong interest income contribution. Management's FY25 outlook calls for net revenue of $7.100 to $7.500 billion, net bookings of $7.300 to $7.700 billion, and diluted EPS of $3.34 to $4.00, with College Football launching in FY25 as a key catalyst for the company's stated FY26-and-beyond growth acceleration. Capital allocation was a major focus.

The Audit Committee authorized a new $5.0 billion^d share repurchase program running from May 9, 2024 through May 9, 2027, replacing the August 2022 authorization. EA also declared a quarterly dividend of $0.19 per share, payable June 19, 2024 to holders of record on May 29, 2024.

During FY24, the company returned $1.505 billion to shareholders through buybacks ($1.300 billion) and dividends ($205 million). Investors should note that the results are preliminary and may differ from the Form 10-K, and that the Q4 revenue decline and the FY25 guidance range imply a modest top-line outlook in the near term.

02—Key points

Key Highlights

FY24 net revenue of $7.562 billion (up 2% YoY) and net bookings of $7.430 billion (up 1% YoY, up 3% in constant currency).
Record fiscal-year operating cash flow of $2.315 billion, up 49% YoY; free cash flow (TTM) of $2.116 billion, up 58%.
FY24 GAAP net income of $1.273 billion (diluted EPS $4.68) versus $802 million (EPS $2.88) in FY23.
Q4 FY24 net revenue declined 5% YoY to $1.779 billion, and Q4 net bookings fell to $1.666 billion from $1.946 billion.
New $5.0 billion share repurchase program authorized, running May 9, 2024 through May 9, 2027, replacing the August 2022 program.
Quarterly dividend of $0.19 per share declared, payable June 19, 2024 to holders of record as of May 29, 2024.
FY25 guidance: net revenue of $7.100-$7.500 billion, net bookings of $7.300-$7.700 billion, and diluted EPS of $3.34-$4.00, with College Football launching in FY25.

03—Questions

Frequently Asked Questions

How did EA perform in fiscal 2024 overall?
EA grew net revenue 2% to $7.562 billion and net bookings 1% to $7.430 billion for FY24. GAAP net income rose to $1.273 billion from $802 million, and diluted EPS increased to $4.68 from $2.88. Operating cash flow reached a record $2.315 billion, up 49%.
Why did fourth-quarter revenue decline?
Q4 net revenue fell 5% to $1.779 billion, with net bookings down to $1.666 billion from $1.946 billion. Live services and other revenue declined 4% to $1.446 billion, and full game revenue dropped to $333 million from $372 million. The filing does not give a detailed root-cause explanation beyond these figures, so investors should review the earnings call for management's commentary.
What is the new share buyback program and how does it compare to the prior one?
The Audit Committee authorized a $5.0 billion repurchase program running May 9, 2024 to May 9, 2027, replacing the August 2022 authorization, which terminates May 8, 2024. Repurchases can be made in the open market or through privately negotiated transactions, and the company is not obligated to buy any specific amount. EA repurchased $1.300 billion of stock in FY24, so the new authorization gives room for a similar pace over the three-year window.
What is the outlook for fiscal 2025?
Management expects FY25 net revenue of $7.100 to $7.500 billion, net bookings of $7.300 to $7.700 billion, net income of $904 million to $1.085 billion, and diluted EPS of $3.34 to $4.00 on 271 million diluted shares. Operating cash flow is projected at $2.050 to $2.250 billion. Management also expects Q1 FY25 net revenue of $1.575 to $1.675 billion, with a deferred revenue change of about negative $425 million.
Are these results final, and what should investors watch next?
No. The release describes preliminary, unaudited estimates that could differ from the Form 10-K for FY24, which EA has not yet filed and does not intend to update before filing. Investors should watch the Form 10-K, the May 7, 2024 earnings call, and the Investor Day planned for fall 2024, where management said it will discuss long-term strategy and financial framework.

04—Continue

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