01—Abstract
Summary
Summary of the 8-K filed January 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Electronic Arts (NASDAQ: EA) issued a preliminary pre-announcement on January 22, 2025, reporting estimated results for its fiscal third quarter ended December 31, 2024 and materially lowering its fiscal 2025 net bookings outlook.
The company now expects Q3 net bookings of approximately $2.215 billiona, GAAP net revenue of approximately $1.883 billion, and GAAP diluted EPS of approximately $1.11. For full fiscal 2025 (ending March 31, 2025), net bookings are now projected at $7.000 to $7.150 billion, and live services net bookings are now expected to decline in the mid-single digits, versus the prior expectation of mid-single-digit growth. The revision is driven primarily by Global Football, which had posted two consecutive years of double-digit net bookings growth but slowed as early third-quarter momentum did not hold through the quarter.
EA now expects Global Football to finish down mid-single digits at the midpoint of the new outlook. Dragon Age also underperformed, engaging roughly 1.5 million players in the quarter, about 50%b below company expectations, and management acknowledged EA SPORTS FC 25 fell short of net bookings expectations.
Management stated it remains confident in its long-term strategy and expects a return to growth in FY26, citing a gameplay refresh and Team of the Year update to FC 25 as early positive signals. Investors should note that these figures are preliminary estimates that may differ from the Form 10-Q to be filed after full results are released on February 4, 2025, and that the company has not reaffirmed its prior guidance.
02—Key points
Key Highlights
- FY25 net bookings outlook cut to $7.000B–$7.150B, with live services net bookings now expected to decline mid-single digits versus prior mid-single-digit growth guidance.
- Q3 FY25 preliminary net bookings of approximately $2.215B and GAAP net revenue of approximately $1.883B.
- Q3 FY25 preliminary GAAP diluted EPS of approximately $1.11.
- Global Football (FC franchise) is the main driver of the reduction, shifting from two years of double-digit net bookings growth to an expected mid-single-digit decline for FY25.
- Dragon Age engaged about 1.5 million players in Q3, roughly 50% below company expectations.
- Management expects a return to growth in FY26, pointing to a gameplay refresh and Team of the Year update for EA SPORTS FC 25 as early positive signs.
- Results are preliminary estimates; the final figures will be reported on February 4, 2025 and may differ from amounts in the subsequent Form 10-Q.
03—Questions
Frequently Asked Questions
Why did EA lower its fiscal 2025 outlook?
EA attributed the revision mainly to Global Football, where early third-quarter momentum did not sustain through the quarter, causing the company to expect that franchise to finish down mid-single digits. Dragon Age also underperformed, with player engagement about 50% below expectations.
What are the new FY25 net bookings expectations?
EA now expects fiscal 2025 net bookings of $7.000 billion to $7.150 billion, and live services net bookings are now projected to decline in the mid-single digits, compared with its initial expectation of mid-single-digit growth.
What were EA's preliminary Q3 FY25 results?
EA estimated Q3 net bookings of about $2.215 billion, GAAP net revenue of about $1.883 billion, and GAAP diluted EPS of about $1.11. These figures are preliminary and may change in the final 10-Q.
Does management expect the business to recover?
Management said it remains confident in its long-term strategy and expects a return to growth in FY26 as it launches more of its franchises. It cited early positive player feedback and results following the FC 25 gameplay refresh and Team of the Year update.
When will EA release full third-quarter results?
EA plans to report final Q3 FY25 results on February 4, 2025, after market close, with a conference call at 2:00 pm PT (5:00 pm ET).
04—Continue